Language

Bare Act

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

Tax2005132 of 158 sections available5 chapters

58. (1) The Commissioner may, serveon any person in the prescribed manner, anotice

Statutory text

informing him that an audit of the affairs of his business shall be conducted and in a case

where an assessment had already been concluded under this Regulation, reassessment may be made or assessment already made may be confirmed. Exp1analion.- A notice may be served notwithstanding the fact that the person may already have been assessed under sections 3 1 or section 32 or section 33. (2)Anotice sewed under sub-section (1) may require the person on whom it is served, to appear on a date and place specified therein, which may be at his business premises or at a place specified in the notice, to either attend and produce or cause to be produced the books of account and all evidence on which the dealer reliesinsupport of his returns (including tax

invoices, if any), or to produce such evidence as is specified in the notice.

(3) The person on whom a notice is sewed under sub-section (I) shall provide all co- operation and reasonable assistance to the Commissioner as may be required to conduct the proceedings under this section at his business premises.
(4) The Commissioner shall, after considering the return, the evidence furnished along

with the returns, if any, the evidence acquired in the course of the audit, if any, or any

information otherwise available to him, either-

(a) confirm the assessment; or
(b) serve a notice of the assessment or

re-assessn~ent of the amount of tax,

interest and penally, if any, pursuant to sections 32 and 33.

(5) Any assessment pursuant to an audit of the affairs of the business of the person referred to in sub-section (I) shall be without prejudice to prosecution for any offence under this Regulation. Inspec(~on of S9. (1)All records, books of account, registers and other documents, maintained by a records

dealer, transporter or operator of a warehouse shall, at all reasonable times, be open to

inspection by the Commissioner. (2)TheCommissioner may, forthe proper administrationofthis Regulation and subject to such conditions as may be prescribed, require-

(a) any dealer; or

(6) any other person, including a banking company, post ofice, a person who transporfs goods or holds goodsin custody for delivery to, or, on behalf of, any dealer, who maintains or has in his possession any books of account, registers or documents relatingto the business ofa dealer,and, inthe caseof aperson which is an organisation, any officer thereof-

(0 to produce before him such records, books of account, registers and

60. (1) All goods kept at any business premises by a dealer, transporter or operator

Statutory text

of a warehouse shall, at all reasonable times, be open to inspection by the Commissioner.

(2) Where the Commissioner, upon information in his possession or otherwise bas

reasonable grounds to believe that any person or dealer is attempting to evade

tax or is

concealing his tax liability in any manner and it is necessary so to do, for the purposes of

administration of this Regulation, the Commissioner may -

(a) enter and search any business premises or any other place or building;

(6) break open the lock of any door, box, locker, safe, almirah or other receptacle for exercisingthe powers confened by clause (a) wherethe keys thereof are not readily available;

. .

(c) seize and remove any records, books of account, registers, other documents or goods; (4 place marks of identification on any records, books of account, registers and other documents ormake or cause to be madeextracts or copiesthercofwithout charge;
(e) make a note or any inventory of any such money or goods found as a result of such search or place marks of identification on such goods; and V) seal the premises including the ofice, shop, godown, box, locker, safe, almirali or other receptacle.

(3) Where it is not feasible to remove any records, books ofaccount, registers, other documents or goods, the Commissioner may serve on

the owner and any person who is in

imniediate possession or control thereof, an order directing that he shall not remove or psrt

with or otherwise deal with them except with the previous~ermission of the omm missioner.

(4 Where any premises have been sealed under clause V) of sub-section (2), or an order made under sub-section

almirah or other receptacle, permit the desealing or release thereof, as the case may be, on

such terms and conditions including furnishing of security for such sum in such form and

manner as may be directed.

(5) The Commissioner may requisition the services ofany police officer or any public servant, or of both, to assist him for all or any

ofthe purposes specified in sub-section (2).

(6) Save as otherwise provided in this section, every search or seizure made under this section shall, as far as possible, be carried out in accordance with the provisions ofthe Code of Criminal Procedure, 1973 relating to searches or seizures made under that Code.
(7) The powers under this section may also be exercised in respect of a dealer or a third party for the purposes of undertaking an audit or to assist in recovery ofdues under this Regulation.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

61. Regulation.

Statutory text

(1) The Commissioner may, at any check-post or barrier or at any other place, to enable proper administration of this Regulation, require the driver or person in charge of a goods vehicle to stop the vehicle to examine the contents therein and inspect all records relating to the goods carried, which are in the possession of such driver or person in charge. Power lo entea premises and seize records and goods. Power to stop, search and detain goods vehicles. SERIES - I No. : 05 DATED isTH AUGUST, 2005. (2)Theowner or person inchargeofa goods vehidleshall carry with him such records, as may be prescribed, in respect of the goods carried in the goods vehicle and produce the same to the Commissioner on:!emand.
(3) The driver or personin charge of the goods vehicle shall, if required, infon the Commissioner of-
- (a) his name andaddress; (b).the name and address of the owner of the vehicle; (+the name and address of the consignor of the goods; (4 the name and address of the consignee of the goods; and
- (e) the name and address of the transporter.
(4) If, on an examination of the contents of a goods vehicle or the inspection of documents relating to the goods carried, the Commissioner. has reason to believe that the owner or person incharge of such goods vehicle is not carryingthe documents as required by sub-section
(2) or is not carrying proper and genuine documents or is aftempting to evade payment of tai due under this Regulation, he may, for reasons to be recorded in .writing, do any one or more of the following, namely:-
- (a) refuse to allow the goods or the goods vehicle to enter Daman and Diu;
- (b) seize the goods and any documents relating to the goods; &d
- (c) seize the goods vehicle and any documents relating to the gdods vehicle.
(5) Where the owner or the person in charge of the goodsvehicle-
- (a) requests for time to adduce evidence of payment oftax or the goods being exempted under this Regulation, in respect of the goods to be detained or impounded; and
- (b) furnishes security for the prescribed amount to the satisfaction of the

Commissioner in such form and in such

manner as may be prescribed, the goods vehicle, the goods and the documents so seized may be released.

(6) The Commissioner may permit the owner or person in charge of goods vehicle to remove any goods or goods vehicle seized under sub-section
(4) subjectto an undertaking-
- (a) that thegoods and goods vehicle shall be kept in the office, godown or other

place within Daman and Diu, belonging to theowner of the goods vehicle and in the

custody of such owner; and

(b) that the goods shall not be delivered to the consignor, consignee or any other

person without the approval in writing of the Commissioner,

and for this purpose the person in charge of the goods vehicle shall furnish an authorisation fiom the owner ofthe goods vehicle authorising him to give such undertaking on his behalf.

(7) Save as otheniise provided in this section, every search or seizure made under this section shall, as far as possible, be canied out in accordance with the provisions of the Code of Criminal Procedure, 1973 relating to searches or seizures made under that Code. 2 of 1974.
(8) Nothing contained in this section shall apply to the rolling stock as defined in the Railway Act, 1989. 24 of 1989. custody and 62. (I) Where the Commissioner seizes any books of account or other documents, he Of shall give the dealer or the person present on his behalf, as the case may be, a receipt for the records. same and obtain acknowledgement of the receipt so given to him: -- SERIES - I No. : 05 I DATED 18~~ AUGUST, 2005.

Provided that if the dealer or person from whose custody the books of account or

other documents are seized refuses to give an acknowledgement, the Commissioner may leave the receipt at the premises and record this fact.

(2) The Commissioner shall keep in his custody the books of account, registers, other documents seized under section 60 for a period not exceeding one year, and thereafter shall retum the same to the dealer or person from whose custody or power they were seized: Provided that the Commissioner may, before returning the books of account, registers and other documents, require the dealer or the person, as the case may be, to give a written

undertaking that the books of account, registers and other documents shall be presented

whenever required by the Commissioner for any proceedings under this Regulation: Provided further that the Commissionershall, when requested, allow the person whose books of account, registers and documents have been seized, reasonable access to the books of account, registersand documents for the purpose of inspection and shall give the person the opportunity to make copies

thereof at the person's own expense:

Provided also that the period of custody of the books of account, registers and other documents seized under section

60 may be extended beyond one year if any proceedings

under this Regulation are pending

or for reasons to be recorded by the Commissioner in

writing. 63. (I) Where tho Commissioner seizes any goods or goodsvehicle, he shall give the dealer, person in charge of the goods vehicle or a person present on his behalf, as the case may be, a receipt for the same and obtain acknowledgement of the receipt so given to him:

Provided that if the person, from whose custody the goods or goods vehicle have

been seized, refuses to give an acknowledgement, the Commissioner may leave the receipt in his presence and record this fact.

(2) The Commissioner-
- (a) shall keep any goods or goods vehicle seized under section 6 1 in his custody;
(6) may retain them for such time as he considers reasonable; and
- (c) subject to sub-section (3), shall return tho goods or goods vehicle to the dealer or other person from whose custody or power they were seized.
(3) Where the Commissioner -
- (a) has seized any goods; or
- (b) has seized a goods vehicle; or
- (c) holds any goods as security for the performance of an obligation under this Regulation, the Commissioner may, not sooner than one month after the service of notice on-
  - (I) the person from whom the goods were seized; (119 the person from whom the goods vehicle was seized,
- (ilr) the person for whom the security was given; and
  - (iv) any person againktwhom the security is to be enforced, as the case may be, of hi intention to sell the goods, direct the auction of such goods or goods vehicle to recover any arrears of tax, interest or penalty due under this Regulation. (4)An auction of goods oragoods vehicle shall be carried out in the manner prescribed for the sale of property held by the Commissioner. custody, retum and disposal of goods, goods vehicle and security. I SERIES - I No. : 05 I DATED 18"' AUGUST, 2005. Detention of gwds pending dirclosure. Obligation to * provide reasonable asistarice

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

62. (I) Where the Commissioner seizes any books of account or other documents, he

Statutory text

Of shall give the dealer or the person present on his behalf, as the case may be, a receipt for the records. same and obtain acknowledgement of the receipt so given to him: -- SERIES - I No. : 05 I DATED 18~~ AUGUST, 2005.

Provided that if the dealer or person from whose custody the books of account or

other documents are seized refuses to give an acknowledgement, the Commissioner may leave the receipt at the premises and record this fact.

(2) The Commissioner shall keep in his custody the books of account, registers, other documents seized under section 60 for a period not exceeding one year, and thereafter shall retum the same to the dealer or person from whose custody or power they were seized: Provided that the Commissioner may, before returning the books of account, registers and other documents, require the dealer or the person, as the case may be, to give a written

undertaking that the books of account, registers and other documents shall be presented

thereof at the person's own expense:

Provided also that the period of custody of the books of account, registers and other documents seized under section

60 may be extended beyond one year if any proceedings

under this Regulation are pending

or for reasons to be recorded by the Commissioner in

writing.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

63. (I) Where tho Commissioner seizes any goods or goodsvehicle, he shall give the

Statutory text

dealer, person in charge of the goods vehicle or a person present on his behalf, as the case may be, a receipt for the same and obtain acknowledgement of the receipt so given to him:

Provided that if the person, from whose custody the goods or goods vehicle have

been seized, refuses to give an acknowledgement, the Commissioner may leave the receipt in his presence and record this fact.

(2) The Commissioner-
- (a) shall keep any goods or goods vehicle seized under section 6 1 in his custody;
(6) may retain them for such time as he considers reasonable; and
- (c) subject to sub-section (3), shall return tho goods or goods vehicle to the dealer or other person from whose custody or power they were seized.
(3) Where the Commissioner -
- (a) has seized any goods; or
- (b) has seized a goods vehicle; or
- (c) holds any goods as security for the performance of an obligation under this Regulation, the Commissioner may, not sooner than one month after the service of notice on-
  - (I) the person from whom the goods were seized; (119 the person from whom the goods vehicle was seized,
- (ilr) the person for whom the security was given; and
  - (iv) any person againktwhom the security is to be enforced, as the case may be, of hi intention to sell the goods, direct the auction of such goods or goods vehicle to recover any arrears of tax, interest or penalty due under this Regulation. (4)An auction of goods oragoods vehicle shall be carried out in the manner prescribed for the sale of property held by the Commissioner. custody, retum and disposal of goods, goods vehicle and security. I SERIES - I No. : 05 I DATED 18"' AUGUST, 2005. Detention of gwds pending dirclosure. Obligation to * provide reasonable asistarice Value Added Tax Authorities.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

64. Value Added Tax Authorities.

Statutory text

(1) If any person on being required by the Commissioner, fails to give any information in respect ofany goods in his possession or fails to permit the inspection thereof,

the Commissioner may seize any goods in his custody or possession in respect of which the

default is committed.

(2) The seizure shall remain in force until it is revoked or the person concerned knishes

the information required or makes proper arrangements for the inspection of the goods,

whichever occurs first.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

65. Every person shall provide all co-operation and reasonable assistance to the

Statutory text

Commissioner as may be required to discharge his hnctions under the Regulation. CHAPTER XI 66. (1) For carrying out the purposes of this Regulation, the Government shall appoint a person to be the Commissioner of ~alue~dded Tax.

(2) The Government may, to assist Commissioner in the administration of this Regulation, appoint as many Joint Commissioners ofvalue Added Tax, Deputy Commissimers of ValueAddedTax,Assistant Cnmmissioners ofValueAdded Tax, Value Added Tax OBcers and such other persons with such designations as the Governmentthis necessary (hereinafter in this Chapter referred to as the "Value Added Tax Authority'?.
(3) The Commissioner may, with the previous sanction of the Government, engage other persons to assist him in discharge of his duties.
(4) The Commissioner and the Value Added Tax Authorities shall exercise such powers as may be conferred upon them, and perform such duties as may be required, by or under this Regulation.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

66. (1) For carrying out the purposes of this Regulation, the Government shall appoint

Statutory text

a person to be the Commissioner of ~alue~dded Tax.

(2) The Government may, to assist Commissioner in the administration of this Regulation, appoint as many Joint Commissioners ofvalue Added Tax, Deputy Commissimers of ValueAddedTax,Assistant Cnmmissioners ofValueAdded Tax, Value Added Tax OBcers and such other persons with such designations as the Governmentthis necessary (hereinafter in this Chapter referred to as the "Value Added Tax Authority'?.
(3) The Commissioner may, with the previous sanction of the Government, engage other persons to assist him in discharge of his duties.
(4) The Commissioner and the Value Added Tax Authorities shall exercise such powers as may be conferred upon them, and perform such duties as may be required, by or under this Regulation. Powers and

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

67. Powers and

Statutory text

(1)TheCommissioner shall havercsponsibility for the due and proper administration rC~~O~ib~l~t~Cs of this Regulation and have jurisdiction over the whole of Daman and Diu. nf ". Commissioner.

(2) Subject to sub-section (3), the Commissioner may, 6om time to time, issue such orders, instructions and directions to any Value Added Tax Authorities or persons referred to in sub-section (3) of section 66 as he thinks fit for the due and proper administration of this Regulation and all suclh persons engaged in theadministration ofthisRegulation shall observe and follow such orders, instructions and directions of the Commissioner.
(3) No order, instruction or direction shall be issued by the Commissioner to any person or authority under this Regulation exercising the power under this Regulation tc+
- (a) dispose of an appeal filed or to be filed under section 74 in a particular manner; or
- (b) determine a particular question under section 84 in a particular manner. Q
(4) Nothing in sub-section (3) shall prevent the Commissioner from issuing general

orders, instructions and directions being

claiificatory in nature on any issue or matter under this Regulatioh. B

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

68. Delegation of

Statutory text

(1) Subject to such restrictions and conditions as may be prescribed, the cbnmksio"er's Commissioner may delegate any of his power sunderthis Regulation to any Value Added Tax powers. Authorities.
(2) Where the Commissioner delegates his powers under Chapter X, the person, to whom such power has been delegated, shall carry and produce on demand evidence in the prescribed form of the delegation ofthese powers when exercising the powers.
(3) Where the Commissioner has delegated a power to any Value Added Tax Authority, the Commissioner may supervise, review and rectify any decision made or action taken by that Authority.
(4) The exercise of power ofsupervision, review or rectification referred to in sub- section
(3) shall not be construed as power to make an assessment or re-assessment after the expiry of the time referred to in section 34.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

69. Whenever in respect of any proceeding under this Regulation a person being the

Statutory text

Commissioner or any Value Added Tax Authority is succeeded by another perso*

(a) the person so succeeding shall exercise all such powers under this Regulation which were exercised by the preceding person; and
(b) the person so succeeding may continue the proceeding kom the stage at which the proceeding was left by his predecessbr. 70. (1)The Commissioner may notify and publish any forms which may be necessary for the reporting of information to the Value Added Tax authorities.

(2) Where the Commissioner has notified a form for a pnrticular purpose, all persons shall be required to report the information using the form.
(3) In particular and without prejudice to the generality of the foregoing power, a notification issued by the Commissioner may stipulate all or any of the matters which in the opinionof the Commissioner are necessary or convenient for the proper administration of this Regulation. 71. ~h~~ommissioner,all ValueAdded Tax authorities and allmembersoftheAppellate

Tribunal shall be deemed. to be public servants within the meaning of section 21 of the

45of 1860.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

70. (1)The Commissioner may notify and publish any forms which may be necessary

Statutory text

for the reporting of information to the Value Added Tax authorities.

(2) Where the Commissioner has notified a form for a pnrticular purpose, all persons shall be required to report the information using the form.
(3) In particular and without prejudice to the generality of the foregoing power, a notification issued by the Commissioner may stipulate all or any of the matters which in the opinionof the Commissioner are necessary or convenient for the proper administration of this Regulation.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

71. ~h~~ommissioner,all ValueAdded Tax authorities and allmembersoftheAppellate

Statutory text

Tribunal shall be deemed. to be public servants within the meaning of section 21 of the

45of 1860. Indian Penal Code, 1860.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

72. Indian Penal Code, 1860.

Statutory text

No suit, prosecution or other legal proceedings shall lie against the Government, the Administrator, the Commissioner, any Value Added Tax Authorities, or member of the AppellateTribunal for anything which is done or intended to be done under this Regulation or rules inade thereunder. 73. (I) The Government shall, as soon as may be after the commencement of this Regulation, constitute anAppellateTribunal consistingofoneor moremembers, alj it thinks fit, to exercise the powers and discharge the functions conferred on the Appellate Tribunal by or under this Regulation: Provided that where the Appellate Tribunal consists of one member, that member

shall be a person who has held a civil judicial post for at least ten years or who has been a

member of the Indian Legal Service not below Grade 111 for at least three years or who has been in practice as an advocate for at leastten and where the Appellate Tribunal consists ofmore than one member, onesuch member shall be apersoa qualifiedasaforesaid: Provided further that the Government may, until the Appella&Tribunal is constituted under this Regulation, notify any other Appellate 'Iki'bunal constituted or established, iinder any State law for the time being in force, with the &Gent of the concerned State Government and such other Appellate Tribunal shall hear and dispose of the appeal in accordance with the provisions of this Regulation till such time the.Appellate Tribunal is constituted under this Regulation.

(2) Where, the number of members of the Appellate Tribunal is more than one, the i :-:.., ~overnment shall appoint one of those membetd:@,be-the Chairperson of the Appellate Tribunal.
(3) Subject to the provisions ofsub-section (I), the qualifications and other conditions of service of the member or members constitutinp; the Ao~ellate Tribunal and the oeriod for which such member or members shall hold om&, shalibe svch as may be prescrjbed.
(4) The members of the Appellate Tribunal shall be appointed by the Government on the recommendation of a selection committee consisting of such person as may be prescribed. Char1ge of sn incumbent of an ofnee. Power of Commissioner to notify certain forms. Pcnons to be public Servants. Immunity tiom civil suit. Appellate Tribunal. SERIES - I No. : 05 DATED laTH AUGUST, 2005.
(5) Any vacancy in the membership of the~~~ellate~ribunal shall be filled up by the Government as soon as practicable.
(6) Where the number ofmembers of theAppellateTribunal is more than oneand ifthe

members differ in opinion on any point, such point shall be decided according to the opinion

of the majority, ifthere is a majority, but if the members are equally divided, the decision of the Chairperson of the Appellate Tribunal thereon shall be final.

(7) Subject to the previous sanction of the~ovemment, the Appellate Tribunal shall, for the purpose of regulating its procedure and disposal of its business, make regulations in consistent with the provisions of this Regulation and the rules made thereunder. (8)The regulationsmade under sub-section(6) shall be published intheOfficialGazette. (9)TheAppellate Tribunal shall, for the purpose of discharging its functions, have all

before the AppellateTribunal shall bedeemed to be ajudicial proceeding within the meaning of sections 193 and 228, and for the purposes ofsection 196 ofthe Indian Penal Code, 1860 45 of 1860. and the AppellateTribunal shall be deemed to be a Civil Court for all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973. 2 of 1974.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

74. CHAPTER XI1 APPBALS, DISPU~ AND QUESTIONS App~ls.

Statutory text

(1) Any person who is aggrieved by. an assessment under this Regulation or any other order or decision made under this Regulation (includingan assessment of penalty under section 33 or penalty imposed under this regulations) may,-
- (a) file an appeal to the Joint Commissioner or Deputy Commissioner or Assistant Commissioner, having jurisdiction, when such decision has been made or order has been passed or assessment has been made by any ValueAddedTax Oficer or Assistant Value Added Tax Officer;
- (b) file an appeal to the Commissioner, when such decision has been made or order has been passed or assessment has been made by the Assistant Commissioner or Deputy Cominissioner or Joint Commissioner: Provided that no appeal against an assessment shall be entertained unless the amount of tax, interest or penalty assessed that is not in dispute has been paid:

Provided further that only one appeal shall be made by the person against any

assessment, decision or order:

person is aggrieved.

(2) Aperson, who is aggrieved by the failure ofthe Commissioner to make a decision

or pass an order or make any assessment

untler this Regulation, within six months aRer a request in writing was Sewed by the person, may file an appeal against such failure.

(3) An appeal shall be filed in writing in the prescribed form and shall state fully and in detail the grounds upon which the'appeal is filed.
(4) (a) Every appeal under sub-section (1) shall be filed within two months of the date of service of the assessment, or order or decision, as the case may be; or
- (b) Every appeal under sub-section (2) shall be filed after the expiry of Ax months but before eight months aRer the written request was sewed by the person: Provided that where the Commissioner is satisfied that the person was prevented for sufficient cause from filing the appeal within the time specified, he may allow an appeal to be' filed within a Gpher period of two months. SERIES - I No. : 05 DATED 18~' AUGUST, 2005.
(5) The Commissioner may conduct its proceedings under this section by an

as may be relevant:

Provided that where the person aggrieved requwts a hearing in person, such person

shell be pen an opportunity of being heard in person.

(6) Where a person has requested a hearing under sub-section (5) and the person fails to attetid the hearing at the time and place stipulated, the Commissioner may proceed and dispose of the appeal in the absence of the person.
(7) Within three months after the receipt ofthe appeal filed under sub-section (I), the Commissioner shall, either-
- (a) allow the relief prayed in the appeal in whole or in part and take appropriate action to give effect to the reliefallowed (icludingthe remission ofany penalty assessed

either in whole or in part); or

(b) refuse the relief prayed in the appeal in whole or part,

and in either case, serve on the appellant, a notice in writing

ofthe decision and the reasons for it, including a statement ofthe evidence on which it is based: Provided that the Commissioner may, after communicatingthe reasons to theappellant, extend the said period ofthree months to six months for the purposes of allowing or refusing the relief prayed in appeal: Provided further that the person may, in writing, request the Commissioner to extend

adjournment at the request of appellant shall be excluded for the purposes of computing period of three months or six months as the case may be.

(8) Where the Commissioner does not dispose of the appeal within the time specified under sub-section (7), the person may submit a written request requiriig him to dispose of the appeal within fifteen days.
(9) If the appeal has not been disposed of within the said period of fifteen days after submission of written request referred to in sub-section (8), then, at the end of that period, the Commissioner shall be deemed to have allowed the relief prayed in the appeal. 75. (1) The Commissioner or any person considering the appeal under section 74, for Power of

the purposes of this Regulation, have the same powers as are vested in a court under the

commissioner 5 of 1908.

Code of Civil Procedure, 1908 when trying a suit, in respect of the following matters,

namely:- take evidence

(a) enforcing the attendance of any person and examining him on oath or on oath, etc affmation;
(b) compelling the production of accounts and documents; and
(c) issuing c~mmissio~ls for the examination of witnesses, and any proceeding under this Regulation before the Commissioner or person considering the appeal under section 74 shall be deemed to be a judicial pr&ing within the meaning 45 of 186% of sections 193 and 228 and forthe purposes of sectidn 196 ofthelndianPenal Code, 1860.

(2) Subjectto any lulesmade in this behalf, the Commissioner or any person considering the appeal under section 74 may impound and retain in his custody, any books of accountor

other documents produced before him in any proceedings under this Regulation until such

proceedings are concluded:

." SERIES - I No. : 05 DATED isTH AUGUST, 2005, ProvidcdthattheCommissi~orthepasoa~gtheappealuada~n74 shall not lmpouod any books of account or otber doaaacng without recording in writing hi reasoh for so doing. AWalaW 76. (1) Any authority objecting any decision or owk made under dm 74 or any Appelb person aggrieved by a decision or order made by the Commissioner under section 74, may ""*L'. appeal to the Appellate lkibunal against such decision or order.

(2) Subjd to the provisions contained in section 77, no appeal shall be entertained unless it is made within two months &om the date of service of the decision or order appealed against (3)Bveryappealmadeunder thii section shall be in the prescribed form, verified in the prescribed manner and shall be accompanied by such fee as may be presaibed.
(4) No appeal against an aswment shall be entertained by the Appellate Tribunal unless the appeal is accompanied by satisfactory proof of the payment of the amount in dispute and any other amount awssed as due %m the person: Provided that the Appellate Tribunal may, if it thinks fit, for reasons to be recorded in writing, entertainan sppeal agahtwchorder without payment ofwhole or part ofthe amount in dispute, on the appellant fumiiing in the prescribed manner secwity for such amount as it may di: Provided fUrther that no appeal shall be entertained by theAppellateTribunaI unless it is satisfied that such amount as the appellant admits to be due 6om him has beea paid.
(5) In prodings beforetheAppellateWfibuna1 the person &ved maybe pmitted to adduce evidenw not pmted to the Commissioner for good and sufficient reasons.
- (a) in the caw of an appeal filed agaht an sssessmeaf confirm, reduce, or annual the ynt (including any pedty aod interest imposed);
- (b) in the caw of any other de~islon or order of the Commissioner, affirm or reject the decision; or
- (c) pas such otha order for the detamion of the issue or disposing of the apgealasittbmfit: Provided tM the Appellate Tribunal shaIl give reason$ in writing for its decision which shall include its Wings on material q&om of fsdand$w evMsace or other material on which those findings were based.
(7) The Appellate Ribunal shall not sat aside an ss~essment and remit the matter to the Commissioner or any other authoriwunder this Regulation for a Mer a.kwment, unless it has Arst-
- (a) communicated the aggrieved person of the proposed order;
- (b) offered the person an opportunity to adduce such fivdrer evidenw befon it maysssiattheAppellateIh~toreachaMdeterminationoftheissueaoddisposing the appeal.
(8) When theAppellateTribuna1 sets aside an ~~~w~ment and mitsthe matter to the Commissionw or any othw authority under this Regulation for a Wr assessment, the Appellate 'Mbhl may at the same&ne order the Commissioner to refid to the person whole or pact of the munt in dispute
(9) Whem a pason has failed to attend the heariag at the time and pleoe stipulated, the Appellate Tdbtmal may adjourn the procesdings, reject the appeal or proceed to make an ordcr determlnlagthe h or disposing ofthe appeal in the absence of the pema . . SERIES - I No. : 05 I DATED IsTH AUGUST, 2005.
(10) Save as provided in section 81 and sub-section (II), an order passed by the Appellate Tribunal on an appeal shall be final. (1I)TheAppellateTribunal may rectify ahy mistakeor error apparentfiom the record of its proceedings. 77. (1) The Appellate TribGal may admit an appeal under section 76 after the period of limitation laid down in that section, ifthe appellant satisfies the Appellate Tribunal that he had sufficient cause for not preferring the appeal within such period;
(2) In computing the period laid down under sections 76 and 81, the provisions of

36 of 1963. sections 4 and 12 of the Limitation Act, 1963, shall, so far as may be, apply.

(3) In computing the period of limitation prescribed by or under any provision ofthis Regulation, or the rules made thereunder, other than sections 76 or 81, any ~eriod during - which any proceeding is stayed by an order or injunction of any court shalibk excluded.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

75. (1) The Commissioner or any person considering the appeal under section 74, for

Statutory text

Power of

the purposes of this Regulation, have the same powers as are vested in a court under the

commissioner 5 of 1908.

Code of Civil Procedure, 1908 when trying a suit, in respect of the following matters,

namely:- take evidence

(a) enforcing the attendance of any person and examining him on oath or on oath, etc affmation;
(b) compelling the production of accounts and documents; and
(c) issuing c~mmissio~ls for the examination of witnesses, and any proceeding under this Regulation before the Commissioner or person considering the appeal under section 74 shall be deemed to be a judicial pr&ing within the meaning 45 of 186% of sections 193 and 228 and forthe purposes of sectidn 196 ofthelndianPenal Code, 1860.

(2) Subjectto any lulesmade in this behalf, the Commissioner or any person considering the appeal under section 74 may impound and retain in his custody, any books of accountor

other documents produced before him in any proceedings under this Regulation until such

proceedings are concluded: ." SERIES - I No. : 05 DATED isTH AUGUST, 2005, ProvidcdthattheCommissi~orthepasoa~gtheappealuada~n74 shall not lmpouod any books of account or otber doaaacng without recording in writing hi reasoh for so doing. AWalaW

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

76. (1) Any authority objecting any decision or owk made under dm 74 or any

Statutory text

Appelb person aggrieved by a decision or order made by the Commissioner under section 74, may ""*L'. appeal to the Appellate lkibunal against such decision or order.

(2) Subjd to the provisions contained in section 77, no appeal shall be entertained unless it is made within two months &om the date of service of the decision or order appealed against (3)Bveryappealmadeunder thii section shall be in the prescribed form, verified in the prescribed manner and shall be accompanied by such fee as may be presaibed.
(4) No appeal against an aswment shall be entertained by the Appellate Tribunal unless the appeal is accompanied by satisfactory proof of the payment of the amount in dispute and any other amount awssed as due %m the person: Provided that the Appellate Tribunal may, if it thinks fit, for reasons to be recorded in writing, entertainan sppeal agahtwchorder without payment ofwhole or part ofthe amount in dispute, on the appellant fumiiing in the prescribed manner secwity for such amount as it may di: Provided fUrther that no appeal shall be entertained by theAppellateTribunaI unless it is satisfied that such amount as the appellant admits to be due 6om him has beea paid.
(5) In prodings beforetheAppellateWfibuna1 the person &ved maybe pmitted to adduce evidenw not pmted to the Commissioner for good and sufficient reasons.
- (a) in the caw of an appeal filed agaht an sssessmeaf confirm, reduce, or annual the ynt (including any pedty aod interest imposed);
- (b) in the caw of any other de~islon or order of the Commissioner, affirm or reject the decision; or
- (c) pas such otha order for the detamion of the issue or disposing of the apgealasittbmfit: Provided tM the Appellate Tribunal shaIl give reason$ in writing for its decision which shall include its Wings on material q&om of fsdand$w evMsace or other material on which those findings were based.
(7) The Appellate Ribunal shall not sat aside an ss~essment and remit the matter to the Commissioner or any other authoriwunder this Regulation for a Mer a.kwment, unless it has Arst-
- (a) communicated the aggrieved person of the proposed order;
- (b) offered the person an opportunity to adduce such fivdrer evidenw befon it maysssiattheAppellateIh~toreachaMdeterminationoftheissueaoddisposing the appeal.
(8) When theAppellateTribuna1 sets aside an ~~~w~ment and mitsthe matter to the Commissionw or any othw authority under this Regulation for a Wr assessment, the Appellate 'Mbhl may at the same&ne order the Commissioner to refid to the person whole or pact of the munt in dispute
(9) Whem a pason has failed to attend the heariag at the time and pleoe stipulated, the Appellate Tdbtmal may adjourn the procesdings, reject the appeal or proceed to make an ordcr determlnlagthe h or disposing ofthe appeal in the absence of the pema . . SERIES - I No. : 05 I DATED IsTH AUGUST, 2005.
(10) Save as provided in section 81 and sub-section (II), an order passed by the Appellate Tribunal on an appeal shall be final. (1I)TheAppellateTribunal may rectify ahy mistakeor error apparentfiom the record of its proceedings.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

77. (1) The Appellate TribGal may admit an appeal under section 76 after the period

Statutory text

of limitation laid down in that section, ifthe appellant satisfies the Appellate Tribunal that he had sufficient cause for not preferring the appeal within such period;

(2) In computing the period laid down under sections 76 and 81, the provisions of

36 of 1963. sections 4 and 12 of the Limitation Act, 1963, shall, so far as may be, apply.

(3) In computing the period of limitation prescribed by or under any provision ofthis Regulation, or the rules made thereunder, other than sections 76 or 81, any ~eriod during - which any proceeding is stayed by an order or injunction of any court shalibk excluded.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

78. The burden of proving any matter in issue in proceedings under section 74, or

Statutory text

before the Appellate Tribunal which relates to the liability to pay tax or any other amount under this Regulation shall lie on the person alleged to be liable to pay the amount: Provided that nothiig contained in.this section shall apply to any proceedings for criminal offence or criminal prosecution. 79.

(1) No appeal shall lie to any authority or the Appellate Tribunal under this Regulation against-
- (a) a decision of the Commissioner to make an assessment oftax or penalty;
- (b) a notice requiring a person to furnish a return;
- (c) a notice issued under section 58 or section 59;
- (d) a decision of the Commissioner to notify any matter under this Regulation;
- (e) a notice asking a dearer to show cause why he should not be prosecuted for an offence under this Regulation; @ a decision relating to the seizure or retention of books of account, registers and other documents;
- (g) a decisioii sanctioning a prosecution under this Regulation;
- (h) a decision of the Commissioner on the administration of the Value Added Tax authorities;

(0 an assessment made by the Commissioner to give effect to an order of the

AppellateTribunal or a court,

(2) Save as provided in clause (I) of sub-section (&nothing in sub-section (I) shall prevent the person from filing an appeal under section 74 objecting to the amount or the obligation to pay any amount asd by the Commissioner. 80. (1) No assessment, notice, summons or other proceedings made or issued or taken or purported to have been made or issued or taken in oursuance of any of the orovisions of

this ~egulation'or under the earlier law shall be invalid or shall be deemed ip be invalid

merely by reason of any mistake, defect or omission in such assessment, notice, summons or other proceedings, ifsuch awsment, notice, summons or other proceedings are in substance

and effect in conformity

with or according to the intent and purposes of this Regulation or any earlier law.

(2) The service of any notice. order or communication shall not be called in auestion if the did notice, order or &nununkition, as the case may be, has already been seted upon

,Statement of case to High Court. Appearance before any authority in proceedings. SERIES - I No. : 05 DATED 18~ AUGUST, 2005.

(3) No assessment made under this Regulation shall be invalid merely on the ground that the action could also have been taken by any other authority under any other provisions of this Regulation. 81. (1) Within two months from the date of an order passed by the AppellateTribunal

under sub-section (6) of section 76, a person aggrieved or the Commissioner may, by

application in writing, and accompanied by such fee as may beprescribed, require the Appellate Tribunal to refer to the High Court any question of law arisingout of suchorder, and, subject to the other provisions contained in this section, the Appellate Tribunal shall, within four months of the receipt of such application draw up a statement of the case and refer it to the High Court:

Provided that the Appellate Tribunal may, if it is satisfied that the person, or the

Commissioner was prevented by sufficient cause 'om presenting the application within the period hereinbefore specified, allow it to be presented within a further period not exceeding one month. (2) Ifthe AppellateTribpnal refuses to state the case which it has been required to do, on the ground that no question of law arises, the person or theCommissioner, as thecase may be, may, withinonemonthofthecommunication ofsuch refusal eitherwithdraw his application (and if he does so, any fee paid shall be refunded), or apply to the High Court against such refusal.

(3) Ifupon receipt of an application under sub-section (2), theHigh Court is not satistied

as to the correctness of the refusal of the Appellate Tribunal, it may require the Appellate

Tribunal

tostate thecaseand refer if and on receipt ofsuch requisition, the AppellateTribunal

shall state the case and refer it accordingly.

(4) IftheHigh Court is not satisfied that thestatement in acaserefened to it is sufficient to enable it to determine the question so raised thereby, the court may refer the case back to the AppellateTrib~mal for theburpose ofmaking suchadditions thereto or alterations therein as it may direct iathat behalf.
(5) TheHigh Court, upon the hearing of any such case, shall decide the question of

law raised thereby, and shall deliver its judgment thereon containing the grounds in which

such decision is founded, and shall send to the Appellate Tribunal a copy of such judgment under the seal ofthe court and thesignature ofthe Registrar, and the AppellateTribunal shall dispose of the Ease accordingly.

(6) Where a reference is made to the High Court under this section, the cost, which shall not include the fee referred to

in sub-section (I), shall be in the discretion ofthe court.

(7) The payment of the amount of tax, interest or penalty, if any, due in accordance with theorder of the Appellate Tribupal in respect of which an application has been made under sub-section (I) shall not be stayed pending the disposal of such application or any

reference made in consequence thereof but if such amount is reduced as a result of such

reference, the excess tax paid shall be refunded in accordance with the provisions of section 38.

82. (1) Any person, who is entitled or required to attend before any authority in

connection with any proceedings under this Regulation, may attend-

(a) by a person authorised by him in writing in this behalf, being a relative or a person regularly employed by him; or
(b) by a legal practitioner or chartered accountant or a cost accountant or companies secretary who isnot disqualified by or under sub-section (2) ofthis section; or
(c) by a Value Added Tax practitioner who possesses the prescribed qualifications and is entered in the list, which the Commissioner shall maintain in that behalf, and who is not disqualified by or under sub-section (2). -- SERIES - I No. : 05 DATED lgTH AUGUST, 2005, Explanation.- For the purposespf this section,-
(a) "chartered accountant" means a chartered accountant as defined in clause 38 of 1949.

(6) of sub-section (I) of section 2 of the Chartered Accountants Aet, 1949 and who has obtained a certificate of practice under sub-section
(1) of section 6 of that Act;
- (b) "company secretary" means a company secretary as defined in clause (c) of 56 of 1980. sub-section(1) ofsection2 oftheCompany Secretaries Act, 1980 andwho has obtained a certificateif practice under sub-section (I) of section 6 of that Act;
- (c) "cost accountant" means a cost accountant as defined in clause (b) of sub- 23 of 1959. section (I) of section 2 of the Cost and Works Accountants Act, 1959 and who has obtained a certificate of practice under sub-section
  - (I) of section 6 of that Act;

(2) The Commissioner may, for reasons to be recorded in writing, disqualify for a period from appearing before any suchauthority under this Regulation, any legal practitioner, chartered accountant, cost accountant or company secretary or Value Added Tax practitioner-
- (a) who has been dismissed from Government service; or
- (b) who, being a legal practitioner or chartered accountant, cost accountant or company secretary is found guilty of misconduct in connection with any proceedings under this Regulation by an authority empowered to take disciplinary action against the members of the profession to which he belongs; or
- (c) who, beingavalue AddedTaxpractitioner, isfoundguiltyofsuch misconduct by the Commissioner.
(3) No order of disqualifmtion shall be made in respect of any particular person unless he has been given a reasonable opportunity of being heard.
(4) Any person who is disqualified under this section may, within one month of the date of disqualification, appeal to the Government to have the disqualification cancelled.
(5) The decision of the Commissioner shaU not take effect until one month of the making thereof orwhen an appeal is preferred, until the appeal is decided. (6)The Commissioner may, at any time,suo mQIu or on an application made to him in this behalf, revoke any decision made against any person under sub-section
(2) and thereupon such person shall cease to be disqualified.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

79. criminal prosecution.

Statutory text

(1) No appeal shall lie to any authority or the Appellate Tribunal under this Regulation against-
- (a) a decision of the Commissioner to make an assessment oftax or penalty;
- (b) a notice requiring a person to furnish a return;
- (c) a notice issued under section 58 or section 59;
- (d) a decision of the Commissioner to notify any matter under this Regulation;
- (e) a notice asking a dearer to show cause why he should not be prosecuted for an offence under this Regulation; @ a decision relating to the seizure or retention of books of account, registers and other documents;
- (g) a decisioii sanctioning a prosecution under this Regulation;
- (h) a decision of the Commissioner on the administration of the Value Added Tax authorities;

(0 an assessment made by the Commissioner to give effect to an order of the

AppellateTribunal or a court,

(2) Save as provided in clause (I) of sub-section (&nothing in sub-section (I) shall prevent the person from filing an appeal under section 74 objecting to the amount or the obligation to pay any amount asd by the Commissioner.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

80. (1) No assessment, notice, summons or other proceedings made or issued or taken

Statutory text

or purported to have been made or issued or taken in oursuance of any of the orovisions of

this ~egulation'or under the earlier law shall be invalid or shall be deemed ip be invalid

merely by reason of any mistake, defect or omission in such assessment, notice, summons or other proceedings, ifsuch awsment, notice, summons or other proceedings are in substance

and effect in conformity

with or according to the intent and purposes of this Regulation or any earlier law.

(2) The service of any notice. order or communication shall not be called in auestion if the did notice, order or &nununkition, as the case may be, has already been seted upon

commenced, continued or finalia pursuant to such notice, order or communication. Extension of period of limitation in Ccrhin caw. Burden of proof. Bar on appeal againsl certain orders. Assessment or pmc&dingJ. elc., wt lo bo invalid on milain gmunds. ,Statement of case to High Court. Appearance before any authority in proceedings. -45- SERIES - I No. : 05 DATED 18~ AUGUST, 2005. 1

(3) No assessment made under this Regulation shall be invalid merely on the ground that the action could also have been taken by any other authority under any other provisions of this Regulation.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

81. (1) Within two months from the date of an order passed by the AppellateTribunal

Statutory text

under sub-section (6) of section 76, a person aggrieved or the Commissioner may, by

Provided that the Appellate Tribunal may, if it is satisfied that the person, or the

(3) Ifupon receipt of an application under sub-section (2), theHigh Court is not satistied

as to the correctness of the refusal of the Appellate Tribunal, it may require the Appellate

Tribunal

tostate thecaseand refer if and on receipt ofsuch requisition, the AppellateTribunal

shall state the case and refer it accordingly.

(4) IftheHigh Court is not satisfied that thestatement in acaserefened to it is sufficient to enable it to determine the question so raised thereby, the court may refer the case back to the AppellateTrib~mal for theburpose ofmaking suchadditions thereto or alterations therein as it may direct iathat behalf.
(5) TheHigh Court, upon the hearing of any such case, shall decide the question of

law raised thereby, and shall deliver its judgment thereon containing the grounds in which

(6) Where a reference is made to the High Court under this section, the cost, which shall not include the fee referred to

in sub-section (I), shall be in the discretion ofthe court.

(7) The payment of the amount of tax, interest or penalty, if any, due in accordance with theorder of the Appellate Tribupal in respect of which an application has been made under sub-section (I) shall not be stayed pending the disposal of such application or any

reference made in consequence thereof but if such amount is reduced as a result of such

reference, the excess tax paid shall be refunded in accordance with the provisions of section

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

82. (1) Any person, who is entitled or required to attend before any authority in

Statutory text

(1) Any person, who is entitled or required to attend before any authority in connection with any proceedings under this Regulation, may attend- (a) by a person authorised by him in writing in this behalf, being a relative or a person regularly employed by him; or (b) by a legal practitioner or chartered accountant or a cost accountant or companies secretary who isnot disqualified by or under sub-section (2) ofthis section; or (c) by a Value Added Tax practitioner who possesses the prescribed qualifications and is entered in the list, which the Commissioner shall maintain in that behalf, and who is not disqualified by or under sub-section (2). -- SERIES - I No. : 05 DATED lgTH AUGUST, 2005, Explanation.- For the purposespf this section,- (a) "chartered accountant" means a chartered accountant as defined in clause 38 of 1949. (6) of sub-section (I) of section 2 of the Chartered Accountants Aet, 1949 and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act; (b) "company secretary" means a company secretary as defined in clause (c) of 56 of 1980. sub-section(1) ofsection2 oftheCompany Secretaries Act, 1980 andwho has obtained a certificateif practice under sub-section (I) of section 6 of that Act; (c) "cost accountant" means a cost accountant as defined in clause (b) of sub- 23 of 1959. section (I) of section 2 of the Cost and Works Accountants Act, 1959 and who has obtained a certificate of practice under sub-section (I) of section 6 of that Act; (4 "legal practitioner" means an advocate, valril or an attorney of any High Court, and includes a pleader in practice. (2) The Commissioner may, for reasons to be recorded in writing, disqualify for a period from appearing before any suchauthority under this Regulation, any legal practitioner, chartered accountant, cost accountant or company secretary or Value Added Tax practitioner- (a) who has been dismissed from Government service; or (b) who, being a legal practitioner or chartered accountant, cost accountant or company secretary is found guilty of misconduct in connection with any proceedings under this Regulation by an authority empowered to take disciplinary action against the members of the profession to which he belongs; or (c) who, beingavalue AddedTaxpractitioner, isfoundguiltyofsuch misconduct by the Commissioner. (3) No order of disqualifmtion shall be made in respect of any particular person unless he has been given a reasonable opportunity of being heard. (4) Any person who is disqualified under this section may, within one month of the date of disqualification, appeal to the Government to have the disqualification cancelled. (5) The decision of the Commissioner shaU not take effect until one month of the making thereof orwhen an appeal is preferred, until the appeal is decided. (6)The Commissioner may, at any time,suo mQIu or on an application made to him in this behalf, revoke any decision made against any person under sub-section (2) and thereupon such person shall cease to be disqualified.

connection with any proceedings under this Regulation, may attend-

(a) by a person authorised by him in writing in this behalf, being a relative or a person regularly employed by him; or
(b) by a legal practitioner or chartered accountant or a cost accountant or companies secretary who isnot disqualified by or under sub-section (2) ofthis section; or
(c) by a Value Added Tax practitioner who possesses the prescribed qualifications and is entered in the list, which the Commissioner shall maintain in that behalf, and who is not disqualified by or under sub-section (2). -- SERIES - I No. : 05 DATED lgTH AUGUST, 2005, Explanation.- For the purposespf this section,-
(a) "chartered accountant" means a chartered accountant as defined in clause 38 of 1949.

(6) of sub-section (I) of section 2 of the Chartered Accountants Aet, 1949 and who has obtained a certificate of practice under sub-section
(1) of section 6 of that Act;
- (b) "company secretary" means a company secretary as defined in clause (c) of 56 of 1980. sub-section(1) ofsection2 oftheCompany Secretaries Act, 1980 andwho has obtained a certificateif practice under sub-section (I) of section 6 of that Act;
- (c) "cost accountant" means a cost accountant as defined in clause (b) of sub- 23 of 1959. section (I) of section 2 of the Cost and Works Accountants Act, 1959 and who has obtained a certificate of practice under sub-section
  - (I) of section 6 of that Act;

(2) The Commissioner may, for reasons to be recorded in writing, disqualify for a period from appearing before any suchauthority under this Regulation, any legal practitioner, chartered accountant, cost accountant or company secretary or Value Added Tax practitioner-
- (a) who has been dismissed from Government service; or
- (b) who, being a legal practitioner or chartered accountant, cost accountant or company secretary is found guilty of misconduct in connection with any proceedings under this Regulation by an authority empowered to take disciplinary action against the members of the profession to which he belongs; or
- (c) who, beingavalue AddedTaxpractitioner, isfoundguiltyofsuch misconduct by the Commissioner.
(3) No order of disqualifmtion shall be made in respect of any particular person unless he has been given a reasonable opportunity of being heard.
(4) Any person who is disqualified under this section may, within one month of the date of disqualification, appeal to the Government to have the disqualification cancelled.
(5) The decision of the Commissioner shaU not take effect until one month of the making thereof orwhen an appeal is preferred, until the appeal is decided. (6)The Commissioner may, at any time,suo mQIu or on an application made to him in this behalf, revoke any decision made against any person under sub-section
(2) and thereupon such person shall cease to be disqualified.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

83. No suit shall be brought in any civil court to set aside or modify any assessment

Statutory text

Bar of suits in made or any order passed under this Regulation or the rules made thereunder. civil courts. 84. (1) If any determinable question arises, otherwise than in proceedings before a Determination court, a person may apply in the prescribed manner to the Commissioner for the determination Of S~i(iC questions. of that question.

(2) Subject to sub-section (3), an application for the determination of a determinable

question may be made in respect of a proposed transaction, a transaction that is being

undertaken, or a transaction has been concluded.

(3) An application for the determination of a determinable question may not be made after-
- (a) the Commissioner has commenced the audit of the person pursuant to section 58; or
- (b) the Commissioner has made an assessment for the tax period in which the transaction that is the subject of the determinable question occurred. SERIES - I No. : 05 DATED lgTH AUGUST, 2005. 1 &P~uMI~o?I.--Fo~ the purposes ofthissubsection, the Commissionershall be deemed to have commenced the audit under section 58 when the Commissioner serves anotiee tothis effect.
(4) For the purposes of this section, the following shall be determinable questions, namely :-
- (a) whether any perm& society, club or association or any fm or any branch or . department of any fum is or would be a dealer; j _.
- (b) whether any dealer is or would be required to be registered under this Regulation;
- (c) the amount of the taxable quanhun of a dealer for a period,
- (d) whether a transaction is or would be a sale, or requires an adjustment to be made undw section 8 arising out of a sale;
- (e) whetheratransaction is or would be in the nature ofworks contract, or transfer of right to use any goods; V) whether a sale is not liable to tax undw section 7; Cg) whether a sale is exempt 6om tax under section 6;
- (h) the sale prim of a transaction;
  - (i) the proportion of the turnover or turnover of purchases of a dealer which arises in a tax period, and the time at which an adjustment to tax or tax credit arises; 6) whether any tmnsaction is or would be the import of goods;
- (k) the value of any goods imported into Damnn and Diu; (0 the rate oftax that is payable on a sale or import ofgoods and the classification of the goods under the Schedules;
- (nz) whether a transaction is the purchase of goods, or requires an adjustment to be made under section 10 arising out of a purchase;
- (n) the amount of any tax credit to which the dealer is entitled in respect of a purchase or import of goods;
(0) the amount of any tax credit in respect of any used goods purchased by a dealer;
- (p) the location of any sale or purchase;
- (q) the application of a composition scheme in the circumstances of the dealer; or
- (r) the tax period of a dealer.
(5) The Commissioner shall make the determination within such period as may be prescribed.
(6) Where-
- (a) the Commissioner Fails to make p determination under this section within the time prescribed under sub-section (5);
- (b) the person thereafter implements the transaction which is the subject of the application and in the manner described in the applicatjon; and
- (c) the person has, in the application forthe determination of the determinable question, indicated the answer to the determinable question which the person believes to be correct (in this section called the "prop0sed determination"), - * SERIES - I No. : 05 DATED HTH AUGUST, 2005, the Commissioner shall be deemed for the purposes of this Regulation to have made and issued to the person on the day atter the expiry of the prescribed period, a determination of the determinable question in $e terms of the proposed determination.
(7) The Commissioner may-
- (a) direct that the determination shall not affect the liability of any person under this Regulation with respect to any transaction effected prior to the determination;
- (b) limit the period for which the determination will apply;
- (c) limit the transactions to which the. determination will apply; and (4 impose such other limitations or resbictions on the determination as seem appropriate.
(8) If any such question arises from any order already passed under this Regulation or 4 of 1964. under the Daman and Diu Sales Tax Act, 1964 as then in force in Daman and Diu, no such question shall be entertained for determination under this section but such question may be

raised in an appeal against such order.

(9) Where-
- (a) the Commissioner has issued to a person a determination in respect of a particular transaction; and
- (b) the person implements the transaction based on the determination issued to

him under this section and in the manner described

in the application, no assessment may be made by the Commissioner against that person which is inconsistent with the determination and no penalty may be imposed on the person ifthe determination is later held incorrect.

(10) The Commissioner may, by notice served on the person, withdraw or confirm or

amend a determination issued under

this section but such withdrawal or confirmation or amendment shall not affect the entitlement of any person to rely on the determination with respect to any transaction or action which he has commenced or which he has completed prior to the withdrawal or qualification.

(11) The determination by the Commissioner under this section shallbe bindingonly-
- (a) on the applicant who.had sought it;
(6) in respect of the msaction in relation to which determination had been sought; and
- (c) on the Commissioner and other Value Added Tax Authorities in respect of the applicant and the said transaction.
(12) The determination referred to in this section shall be binding as aforesaid unless there is a change in law or facts on the basis of which the determination has been made.
(13) Where the Commissioner finds, that a determination made by him has been obtained by the applicant by fraud or misrepresentation offact, it may, by order declaresuch declaration to be void ab initio and thereupon all the provisions of this Regulation shall apply (aAer excluding the period begiming with the date of such determination and ending

with the date of order under this sub-section) to the applicant as if such determination had

never been made. 85. (1) The Commissioner may, by notification, publish his ruling on the answer to Ruliogon any question involvingthe interpretation of any issue under this Regulation or applicationof gmml this Regulation to a class of persons or class of transactions. queslions.

(2) A ruling issued by the Commissioner under this section may be issued subject to such restrictions and conditions as the Commissioner may deem fit. -, SERIES - I No. : 05 DATED 18"' AUGUST, 2005.
(3) The ruljng shall conkinto forceon the date mentioned in the ruling or, if no date is

stated in the ruling, on the date of publication in the

Official Gazette.

(4) where-
- (a) the Commissioner has published a ruling in respect of a class of persons or transactions;
- (b) a person implements a transaction or undertakes any action based on the ruling;
- (c) the ruling has, at the time of implementing the transaction or undertaking the action, not been withdrawn by the Commissioner; and

(4 according to the terms of the ruling, the ruling purports to apply to the

traniaction or action undertaken by the person, no assessment which is inconsistent with the ruling, shall be made by the Commissioner or any other authority against that person and no penalty may be imposed on the person if the -- ruling is later held incorrect.

Explanation.- A person may rely on the ruling of the Commissioner or on the

determination made under section 84.

(5) The Commissioner may, by notification, withdraw or confirm or amend a ruling already issued under his section but such withdrawal or confirmation or amendment shall not affect the entitlement ofany person to rely on the p ling with respect to any transactionor

action commenced or completed by him prior

to such~withdrawal or confirmation or amendment. CHAPTER XI11 PENALTIES AND OFFENCES Penalties. 86, (1) For the purposes ofthis section "tax deficiency" means the difference between the

(2) The penalty imposed under this section may be remitted by an order made by an appellate authority in any proceeding under this Regulation where a person is able to prove existence of a reasonable cause for the act or omission giving rise to penalty.
(3) Where a person, who is required to be registered under this Regulation, has-failed to apply for grant of certificate of registration within one month from the day on which his

liability to register arose, the person shall be liable to pay, by way of penalty, an amount

equal to one thousand rupees for each day during which such failure continues or one lakh rupees, whichever is less. * s

(4) If, a registered dealer fails to comply with the provisions of sub-section (I) of section

21, such dealer shall be liable to pay, by way ofpenalty, a sum ofone hundred rupees

for each day during which such failure continues or five thousand rupees, whichever is less. (5)If a registered dealer-

(a) fails to comply with the provisions of sub-section (2) of section 22; or
(b) fails to surrender his certificate of registration as provided in sub-section (7) of section 22, such dealer shall be liable to pay, by way of penalty, a sum equal to one hundred rupees for eachday during which such failure continues or five thousand rupees, whichever is less.

(6) If any person falsely represents that he is registered as a dealer under this Regulation, he shall be liable to a penalty equal to the amount of tax wrongly collected as such or one lakh rupees, whichever is higher. -" SERTES - I No. : 05 I DATED 18~ AUGUST, 2005,
(7) Where a person has applied for grant of certificate of registration under sub- section
(5) of section 18 as a dealer under this Regulation and he -
- (a) fails to undertake business which would entitle hi to be a dealer, within the

period specified in his application; or

(6) fails to comply with any of Qe restrictions or conditions subject to which certificate of registration was granted, such dealer shall be liable to pay a penalty of ten thousand mpees.
(8) If a person required to furnish a retum under the provisions of Chapter V-
- (a) fails to furnish any rehun by the prescribed date; or
- (b) fails to fUrnish alongwith the return any documenf that is requM to be ' hished alongwith the return; or
- (c) being required to revise a return already furnished, fails to furnish the revised return by the prescribed date,. such person shall be liable to pay, by way of penalty, a sum of one hundred rupees for each day during which such failure continues or ten thousand rupees, whichever is less.
(9) Ahy person, who knowingly-
- (a) hishes areturn unde;this~egulation which is false, migleadingor deceptive in a material particular; or
- (b) omits from a return firnished under this Regulation any material particular without which the retum is false, misleading or deceptive; or
- (c) claims tax credit in excess of the tax credit to which he is entitled under section 9 or under other provisions ofthis Regufation, shall be liable to pay, by way of penalty, a sum of ten thousand mpees or the amount of the tax deficiency, whichever is the higher.
(10) Any dealer, who knowingly-
- (a) has claimed tax credit under section 14 to which he is not entitled; or
- (b) has claimed an excess tax credit than to which he is entitled under section 14, shall be liable to pay, by way of penalty, an amount equal to the amount of tax credit so claimed or ten thousand rupees, whichever is higher.
(11) Where a tax d6ficienc;:arises in relation to a dealer or any other person, such person shall be liable to pay, by way of penalty, a sum of one per cent. ofexcess tax deficiency per week for every week or fiRy rupees per week for very week during which the tax deficiency continues, whichever is higher.
(12) Where a person is reuuired under this Regulation to-
- (a) prepare records or mounts in accordance with the provisions ofChapter X; or
- (b) prepare such records or qcwunts in the presoribtd manner; or
- (c) retain records or accounts in accordan- with provisions of sub-section (6) of section 48, and such person-
  - (I) fails to prepare the required records and accounts; or
- (If) fails to prepare records anh accounts in tha pdbed manner; 61 SERIES - I No. : 05
- (iir) fails to retain the.records and accounts as required by sub-section (6) of section 48, the person shall be liable to pay, by way of penalty, a sum of fifty thousand rupees or twenty

per cent. of the tax deficiency, if any, whichever is higher.

(13) Any person, who fails to comply with the provisions of sub-section (2) or sub- section
(3) of section 59, shall be liable to pay, by way of penalty, a sum of fiRy thousand rupees.
(14) Where a person, who is required to prepare records and accounts under this

, Regulation, knowingly prepares records and accounts in a false, misleading or deceptive

manner, such person shall be liable to pay, by way of penalty, a sum ofone lakh rupees or the amount of the tax deficiency, ifany, whichever is higher.

(IS) Where a person-
(a) issues a tax invoice or retail invoice with incomplete or incorrect particulars; or
(b) having issued a tax invoice or retailinvoice, has failed to account it correctly in his books of account, such person shall be liable to pay, by way of penalty, an amount of five thousand rupees or twenty per cent, of the tax deficiency, if any, whichever is higher.

(16) Where a person, who is not authorised under this Regulation to issue atax invoice, issues a tax invoice, the person shall be liable to pay, 6y way of penalty, an amount of one lakh rupees or the tax deficiency, if any, whichever is higher.
(17) If any dealer fails to furnish a true copy ofreport of audit referred to in section 49 within the prescribed time, Ule person shall be liable to pay, by way of penalty, a sum of ten thousand rupees. \
(18) Where goods are being carried by a transporter without ihe docuinents or without proper documents or with such documents baing false or without all documents referred to in sub:section (2) ofsection 61, the transporter shall be liable to a penaltyequal to the amount of tax payable on such goods.
(19) Any person, who-
- (a) makes a statement to the Commissioner or any authorityunderthis Regulation which is false, misleading or deceptive in a material particular; or
- (b) omits from a statement made to the Commissioner or any authority under this Regulation any material particular without which the statement is false, misleading or deceptive, . such person shall be liable to pay, by way of penalty, a sum of fifty thousand rupees, or the amount of the tax deficiency, whichever is higher. @ Reduction or 87. (1) Whereas aresultofany proceedingstheamount oftax has been wholly reduced, increase of and a penalty has been levied with reference to such tax, the penalty so levied shall be reduced pnally in cedain cases. to nil and if the penalty has already been paid, it shall be refunded within two months of the reduction of such

tax.(2) If a person is liable to pay a penalty under sub-section (11) of

section

86, and the person voluntarily discloses in writing to the Commissioner the tax

deficiency,-

(a) the amount ofthe penalty leviable under this Regulation shall be reduced by

eighty per cent. of such penalty if such disclosure is made before the Commissioner

issues the notice under section 58 for conducting of the audit ofthe business affairs of such person;

SERIES - I No. : 05 DATED 18~'' AUGUST, 2005.

(b) the amount ofthe penalty leviable under this Regulation shall be reduced by fifty per cent. of such penalty if such disclosure is made after the Commissioner has issued thenotice under section 58 for conducting ofthe audit of the business affairs of such person. '1

(3) Ifthe taxdeficiency has arisen in pursuance ofdetermination by the Commissioner under section 84 or ruling given under section 85 and in pursuance of such determination or ruling, a person has become liable to pay a penalty under sub-section (11) of section 86, the amount ofthe penally payable under this Regulation shall be reduced to nil and ifthe penalty

has already been paid, it shall be refunded within

two months ofthe reduction of such tax.

(4) Where penalty under this Regulation has been imposed upon a person and such penalty has not been reduced by any authority orAppellateTribunal or court and has become final, and such person is subsequently assessed to a further penalty in respect of the same or a substantially similar failure or default occurring on another occasion (in this section called th8 "subsequent offence"), the penalty leviable under this Regulation shall be increased by-
- (a) in the case of the first subsequent offence, fifty per cent. of the penalty

leviable under this Regulation; and

(6) in the case of the second and any further subsequent offence, one hundred per cent. of the penalty leviable under this Regulation. 88. (1) The penalties shall be leviable under this Regulation notwithstanding that no imposition of assessment of tax under this Regulation has been made. pennitis noMhimding
(2) Any penalty imposed u~der this Regulation shall be without prejudice to any ofassessment. prosecution for any offence under this Chapter or any other law for the time being in force. 89. (1) Whoever- Offences and . , criminal
- (a) not being aregistered dealer, falsely represents that he is or was a registered pesatties. dealer at the time when he sells or buys goods; or
- (b) knowingly keeps false account or does not keep the account of the value of the goods bought or sold by him in contravention of section 48; br
- (c) issues to any person

a false invoice, bill, cash-memorandum, voucher or

other document which he knows or has reason to believe to be false, shall, on conviction, be punished with rigorous imprisonment for a term which may extend to six months and with fine.

(2) Whoever knowingly-
- (a) furnishes a false return; or
- (b) produces before the Commissioner, false bill, cash--memorandum, voucher, declaration, certificate, tax invoice or other document for claiming deduction on tax credit; or
- (c) produces false acwunts, registers or documents or knowingly furnishes false information, he shall- (? in case yhere the amount of tax, which wuld have been evaded if the false

return, bill, cash-memorandum, voucher, declaration, certificate,

tax invoice or other document for claiming deduction on tax credit, accounts, registers or documents or false information, as thecase may be, had been accepted as trueexceeds, fifiytl~ousand rupees, on conviction, be punished with rigorous imprisonment for a term which may extend to six months ; and

(ir) in any other case, with rigorous imprisonment for a term which may extend to four months and with fine. SERIES - I No. : 05 DATED lgnl AUGUST, 2005.

(3) Whoever, wilfully attempts, in any manner whatsoever, to evade payment oftax, penalty or interest or all of them under this Regulation, shall, on conviction, be punished-
- (a) in any case where the amount of such tax, penalty or interest involved exceeds fifty thousand rupees during the period of a year, with rigorous imprisonment for a term which may extend to six months and with fine; and
- (b) in any other case, with rigorous imprisonment for aterm whichmay extend to three months and with fine.
(4) Whoever-
- (a) carries on business as adealer without being registered in wilful1 contravention of sub-section (1) of section 18; or
- (b) fails without sufficient cause to furnish any information required under section 2f; or
- (c) fails to surrender his certificate of registration as provided in subsection (7) + of section 22; or
- (d) fails without sufficient cause to furnish any returns as required under section 26 or section 27 by the date or in the manner prescribed; or
- (e) without reasonable cause, contravenes any of the provisions ofsection 40; or V) fails without suff~cient cause, when directed so to do under section 48 to keep any accounts or record, in aceordance with the directions; or
- (g) without sufficient cause fails to issue invoice as required under section 50; or
- (h) fails without sufficient cause, to comply with any requirements under section 59, or obsfructs any officer making inspection or search or seizure under sections 60 and 61; or
(1) being owner in charge of a goods vehicle fails, neglects or refuses to comply with any of the requirements contained in section 61; or 6) obstructs or prevents any officer performing any function under Chapter X; or
- (k) kterferes with or obstructs the Commissioner or any oBcer exercising any other power conferred under this Regulation, he shall, on conviction, be punished with imprisonment for a term which may extend to six rnonths and with tine.
(5) Whoever aids or abets any person in the commission of any act specified in sub- sections
- (I) to (3) shall, on.conviction, be punished with rigorous imprisonment which may extend to six months, and with fine.
(6) Whoever commits any of the acts specified in sub-sections (I) to (5) and the offence is a continuing one under any ofthe provisionsofthese sub-sections,shall, on conviction, be

punished with fie of not less than one hundred rupees per day during the period of the

continuance of the offence, in addition to the punishments provided under this section.

(7) Notwithstanding anythiig contained in subsections (1) to (9, no person shall be vroceeded under these subsections if the total amount involved is less than two.hundred rupees during the period of a year,
(8) Where a dealer is accusal of an offence specified in subsection (I), or sub-section
(2) or sub-section (3)ofthis section or in clause (a), or clause (b), or clause (c), or clause(d), or clause (e), or clause V), or clause (g), or clause (h) and clause 0) ofsubsection (4), orsub- section (6) of this section, the pemn deemed to be the manager of the business of such (SERIES - I NO. : 05 I I DATED IsTH AUGUST, 2005, dealer under section 95 shall alsp be deemed to be guilty bf such offence, unles he proves that the offence was committed without his knowled~or that keexercised all due diligence - to prevent the commission tjlereof. - 90. (I) Where an offence under this Regulaliw or the rules has been committed by a Offaces by

company, every person who, at the time the offence was committed, was in charge of, and

Hindu was responsible to the company for the conduct of the biacscl ofthecompany, m weJ1 as undivldcd the company shall be deemed to be guilty of the offenre and shall be Liable to be proceeded family, &. against and punished accordingly: I Provided that nothiecontained in #issubsection Jhall render any suchoerson liable to anypunishment providG in this Regulation ifhe proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.

(2) Notwithtanding anythiig contained in sub-section (I), where an offence under this Regulation has been committed by a company and it is proved that theoffence has been committed with the consent or connivance of, or is attn'butable to any neglect on the part of any director, manager, secretary or other ofFM of the company, such director, manager, secretary or other officer shall also be deemed to beguiflyofht offence and shall be liable to be proceeded against and punished ammiin&. Explanation.- For the purposes of this don- (a)"compaay" meansa body corporate, and includes a fm or other association of individuals; and
- (b) "director" in relation to a firm mrns a inthefirm.
(3) Where an offence underlhis Regulationhas beencommitted by a Hindu undivided fiunily.lhe Ksrta thereof shall be deemed to be ail& of the offence and shall be liable to be -. prockkaed against and punished acci?rd'igly: Provided that nothing contained in this subsmion shall render theKarta liable to any punishmekt if he proves that the offence wils commitkd without his knowledge or that he had exercised all due diligence to prevent the commissm of such offence: . Provided fiuiher that where an offence under tkls Regulation has been committed by a Hindu undivided family and it is proved that the offa hm been committed with the consent or comivance of or is attributable to any neglect on the part of any adult member of the Hiidu undivided family, such member shall also be deemed to be guilty ofthat offence and shall be liable to be proceeded against and punished accordiigly. 91. (I) No court shall take cognizance of any offence under this Regulation or rules . Cogninaccof madethereunderexceot with theorevious sanction ofthe Commissioner, and no cdurt inferior Offcaw. -- to that of a ~etropolitan ~agishate shall by any such offen*.
(2) Notwithstanding anylhing containadin the Code of Criminal Procedure, 197'3, all offences punishable under this Regulation or the ~Ies made thaeunder shall be cognizable and bailable. 92. (1) Subject to such conditions as may be prescribed, the Commissioner may IrivatlpUoo authorise either generally or in respect of a particular case or class of cases any officm or OfO-. person subordinate to' him to investigate all or any of the offences punishable undtt this Regulation,
(2) Every officer or person so authorised shall, in the conduct of such investigation, exercise the powen conferred by the Code of Criminal naldure, 1973 upon an officer in charge of a police station for the invesligation of a cognizable offence. Cbapta m of Code of Crimid Pmoedurq 1973, no1 to ~PPV to Kctdin omm. Dealer to dcclsle tho name of manager of buridsJ. Service of notice whcn Mi is disrupted w flnn is diJsolvd. SERTES - I NO. : 05

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

84. (1) If any determinable question arises, otherwise than in proceedings before a

Statutory text

Determination court, a person may apply in the prescribed manner to the Commissioner for the determination Of S~i(iC questions. of that question.

(2) Subject to sub-section (3), an application for the determination of a determinable

question may be made in respect of a proposed transaction, a transaction that is being

undertaken, or a transaction has been concluded.

(3) An application for the determination of a determinable question may not be made after-
- (a) the Commissioner has commenced the audit of the person pursuant to section 58; or
- (b) the Commissioner has made an assessment for the tax period in which the transaction that is the subject of the determinable question occurred. SERIES - I No. : 05 DATED lgTH AUGUST, 2005. 1 &P~uMI~o?I.--Fo~ the purposes ofthissubsection, the Commissionershall be deemed to have commenced the audit under section 58 when the Commissioner serves anotiee tothis effect.
(4) For the purposes of this section, the following shall be determinable questions, namely :-
- (a) whether any perm& society, club or association or any fm or any branch or . department of any fum is or would be a dealer; j _.
- (b) whether any dealer is or would be required to be registered under this Regulation;
- (c) the amount of the taxable quanhun of a dealer for a period,
- (d) whether a transaction is or would be a sale, or requires an adjustment to be made undw section 8 arising out of a sale;
- (e) whetheratransaction is or would be in the nature ofworks contract, or transfer of right to use any goods; V) whether a sale is not liable to tax undw section 7; Cg) whether a sale is exempt 6om tax under section 6;
- (h) the sale prim of a transaction;
  - (i) the proportion of the turnover or turnover of purchases of a dealer which arises in a tax period, and the time at which an adjustment to tax or tax credit arises; 6) whether any tmnsaction is or would be the import of goods;
- (k) the value of any goods imported into Damnn and Diu; (0 the rate oftax that is payable on a sale or import ofgoods and the classification of the goods under the Schedules;
- (nz) whether a transaction is the purchase of goods, or requires an adjustment to be made under section 10 arising out of a purchase;
- (n) the amount of any tax credit to which the dealer is entitled in respect of a purchase or import of goods;
(0) the amount of any tax credit in respect of any used goods purchased by a dealer;
- (p) the location of any sale or purchase;
- (q) the application of a composition scheme in the circumstances of the dealer; or
- (r) the tax period of a dealer.
(5) The Commissioner shall make the determination within such period as may be prescribed.
(6) Where-
- (a) the Commissioner Fails to make p determination under this section within the time prescribed under sub-section (5);
- (b) the person thereafter implements the transaction which is the subject of the application and in the manner described in the applicatjon; and
- (c) the person has, in the application forthe determination of the determinable question, indicated the answer to the determinable question which the person believes to be correct (in this section called the "prop0sed determination"), - * -48- SERIES - I No. : 05 DATED HTH AUGUST, 2005, the Commissioner shall be deemed for the purposes of this Regulation to have made and issued to the person on the day atter the expiry of the prescribed period, a determination of the determinable question in $e terms of the proposed determination.
(7) The Commissioner may-
- (a) direct that the determination shall not affect the liability of any person under this Regulation with respect to any transaction effected prior to the determination;
- (b) limit the period for which the determination will apply;
- (c) limit the transactions to which the. determination will apply; and (4 impose such other limitations or resbictions on the determination as seem appropriate.
(8) If any such question arises from any order already passed under this Regulation or 4 of 1964. under the Daman and Diu Sales Tax Act, 1964 as then in force in Daman and Diu, no such question shall be entertained for determination under this section but such question may be

raised in an appeal against such order.

(9) Where-
- (a) the Commissioner has issued to a person a determination in respect of a particular transaction; and
- (b) the person implements the transaction based on the determination issued to

him under this section and in the manner described

(10) The Commissioner may, by notice served on the person, withdraw or confirm or

amend a determination issued under

(11) The determination by the Commissioner under this section shallbe bindingonly-
- (a) on the applicant who.had sought it;
(6) in respect of the msaction in relation to which determination had been sought; and
- (c) on the Commissioner and other Value Added Tax Authorities in respect of the applicant and the said transaction.
(12) The determination referred to in this section shall be binding as aforesaid unless there is a change in law or facts on the basis of which the determination has been made.
(13) Where the Commissioner finds, that a determination made by him has been obtained by the applicant by fraud or misrepresentation offact, it may, by order declaresuch declaration to be void ab initio and thereupon all the provisions of this Regulation shall apply (aAer excluding the period begiming with the date of such determination and ending

with the date of order under this sub-section) to the applicant as if such determination had

never been made.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

85. (1) The Commissioner may, by notification, publish his ruling on the answer to

Statutory text

Ruliogon any question involvingthe interpretation of any issue under this Regulation or applicationof gmml this Regulation to a class of persons or class of transactions. queslions.

(2) A ruling issued by the Commissioner under this section may be issued subject to such restrictions and conditions as the Commissioner may deem fit. -, SERIES - I No. : 05 DATED 18"' AUGUST, 2005.
(3) The ruljng shall conkinto forceon the date mentioned in the ruling or, if no date is

stated in the ruling, on the date of publication in the

Official Gazette.

(4) where-
- (a) the Commissioner has published a ruling in respect of a class of persons or transactions;
- (b) a person implements a transaction or undertakes any action based on the ruling;
- (c) the ruling has, at the time of implementing the transaction or undertaking the action, not been withdrawn by the Commissioner; and

(4 according to the terms of the ruling, the ruling purports to apply to the

Explanation.- A person may rely on the ruling of the Commissioner or on the

determination made under section

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

87. (1) Whereas aresultofany proceedingstheamount oftax has been wholly reduced,

Statutory text

increase of and a penalty has been levied with reference to such tax, the penalty so levied shall be reduced pnally in cedain cases. to nil and if the penalty has already been paid, it shall be refunded within two months of the reduction of such

tax.(2) If a person is liable to pay a penalty under sub-section (11) of

section

86, and the person voluntarily discloses in writing to the Commissioner the tax

deficiency,-

(a) the amount ofthe penalty leviable under this Regulation shall be reduced by

eighty per cent. of such penalty if such disclosure is made before the Commissioner

issues the notice under section 58 for conducting of the audit ofthe business affairs of such person; SERIES - I No. : 05 DATED 18~'' AUGUST, 2005.

(b) the amount ofthe penalty leviable under this Regulation shall be reduced by fifty per cent. of such penalty if such disclosure is made after the Commissioner has issued thenotice under section 58 for conducting ofthe audit of the business affairs of such person. '1

(3) Ifthe taxdeficiency has arisen in pursuance ofdetermination by the Commissioner under section 84 or ruling given under section 85 and in pursuance of such determination or ruling, a person has become liable to pay a penalty under sub-section (11) of section 86, the amount ofthe penally payable under this Regulation shall be reduced to nil and ifthe penalty

has already been paid, it shall be refunded within

two months ofthe reduction of such tax.

(4) Where penalty under this Regulation has been imposed upon a person and such penalty has not been reduced by any authority orAppellateTribunal or court and has become final, and such person is subsequently assessed to a further penalty in respect of the same or a substantially similar failure or default occurring on another occasion (in this section called th8 "subsequent offence"), the penalty leviable under this Regulation shall be increased by-
- (a) in the case of the first subsequent offence, fifty per cent. of the penalty

leviable under this Regulation; and

(6) in the case of the second and any further subsequent offence, one hundred per cent. of the penalty leviable under this Regulation.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

88. (1) The penalties shall be leviable under this Regulation notwithstanding that no

Statutory text

imposition of assessment of tax under this Regulation has been made. pennitis noMhimding

(2) Any penalty imposed u~der this Regulation shall be without prejudice to any ofassessment. prosecution for any offence under this Chapter or any other law for the time being in force.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

89. (1) Whoever- Offences and

Statutory text

. , criminal

(a) not being aregistered dealer, falsely represents that he is or was a registered pesatties. dealer at the time when he sells or buys goods; or
(b) knowingly keeps false account or does not keep the account of the value of the goods bought or sold by him in contravention of section 48; br
(c) issues to any person

a false invoice, bill, cash-memorandum, voucher or

other document which he knows or has reason to believe to be false, shall, on conviction, be punished with rigorous imprisonment for a term which may extend to six months and with fine.

(2) Whoever knowingly-
- (a) furnishes a false return; or
- (b) produces before the Commissioner, false bill, cash--memorandum, voucher, declaration, certificate, tax invoice or other document for claiming deduction on tax credit; or
- (c) produces false acwunts, registers or documents or knowingly furnishes false information, he shall- (? in case yhere the amount of tax, which wuld have been evaded if the false

return, bill, cash-memorandum, voucher, declaration, certificate,

(ir) in any other case, with rigorous imprisonment for a term which may extend to four months and with fine. SERIES - I No. : 05 DATED lgnl AUGUST, 2005.

(3) Whoever, wilfully attempts, in any manner whatsoever, to evade payment oftax, penalty or interest or all of them under this Regulation, shall, on conviction, be punished-
- (a) in any case where the amount of such tax, penalty or interest involved exceeds fifty thousand rupees during the period of a year, with rigorous imprisonment for a term which may extend to six months and with fine; and
- (b) in any other case, with rigorous imprisonment for aterm whichmay extend to three months and with fine.
(4) Whoever-
- (a) carries on business as adealer without being registered in wilful1 contravention of sub-section (1) of section 18; or
- (b) fails without sufficient cause to furnish any information required under section 2f; or
- (c) fails to surrender his certificate of registration as provided in subsection (7) + of section 22; or
- (d) fails without sufficient cause to furnish any returns as required under section 26 or section 27 by the date or in the manner prescribed; or
- (e) without reasonable cause, contravenes any of the provisions ofsection 40; or V) fails without suff~cient cause, when directed so to do under section 48 to keep any accounts or record, in aceordance with the directions; or
- (g) without sufficient cause fails to issue invoice as required under section 50; or
- (h) fails without sufficient cause, to comply with any requirements under section 59, or obsfructs any officer making inspection or search or seizure under sections 60 and 61; or
(1) being owner in charge of a goods vehicle fails, neglects or refuses to comply with any of the requirements contained in section 61; or 6) obstructs or prevents any officer performing any function under Chapter X; or
- (k) kterferes with or obstructs the Commissioner or any oBcer exercising any other power conferred under this Regulation, he shall, on conviction, be punished with imprisonment for a term which may extend to six rnonths and with tine.
(5) Whoever aids or abets any person in the commission of any act specified in sub- sections
- (I) to (3) shall, on.conviction, be punished with rigorous imprisonment which may extend to six months, and with fine.
(6) Whoever commits any of the acts specified in sub-sections (I) to (5) and the offence is a continuing one under any ofthe provisionsofthese sub-sections,shall, on conviction, be

punished with fie of not less than one hundred rupees per day during the period of the

continuance of the offence, in addition to the punishments provided under this section.

(7) Notwithstanding anythiig contained in subsections (1) to (9, no person shall be vroceeded under these subsections if the total amount involved is less than two.hundred rupees during the period of a year,
(8) Where a dealer is accusal of an offence specified in subsection (I), or sub-section
(2) or sub-section (3)ofthis section or in clause (a), or clause (b), or clause (c), or clause(d), or clause (e), or clause V), or clause (g), or clause (h) and clause 0) ofsubsection (4), orsub- section (6) of this section, the pemn deemed to be the manager of the business of such (SERIES - I NO. : 05 I I DATED IsTH AUGUST, 2005, dealer under section 95 shall alsp be deemed to be guilty bf such offence, unles he proves that the offence was committed without his knowled~or that keexercised all due diligence - to prevent the commission tjlereof. -

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

90. (I) Where an offence under this Regulaliw or the rules has been committed by a

Statutory text

Offaces by

company, every person who, at the time the offence was committed, was in charge of, and

(2) Notwithtanding anythiig contained in sub-section (I), where an offence under this Regulation has been committed by a company and it is proved that theoffence has been committed with the consent or connivance of, or is attn'butable to any neglect on the part of any director, manager, secretary or other ofFM of the company, such director, manager, secretary or other officer shall also be deemed to beguiflyofht offence and shall be liable to be proceeded against and punished ammiin&. Explanation.- For the purposes of this don- (a)"compaay" meansa body corporate, and includes a fm or other association of individuals; and
- (b) "director" in relation to a firm mrns a inthefirm.
(3) Where an offence underlhis Regulationhas beencommitted by a Hindu undivided fiunily.lhe Ksrta thereof shall be deemed to be ail& of the offence and shall be liable to be -. prockkaed against and punished acci?rd'igly: Provided that nothing contained in this subsmion shall render theKarta liable to any punishmekt if he proves that the offence wils commitkd without his knowledge or that he had exercised all due diligence to prevent the commissm of such offence: . Provided fiuiher that where an offence under tkls Regulation has been committed by a Hindu undivided family and it is proved that the offa hm been committed with the consent or comivance of or is attributable to any neglect on the part of any adult member of the Hiidu undivided family, such member shall also be deemed to be guilty ofthat offence and shall be liable to be proceeded against and punished accordiigly.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

91. (I) No court shall take cognizance of any offence under this Regulation or rules . Cogninaccof

Statutory text

madethereunderexceot with theorevious sanction ofthe Commissioner, and no cdurt inferior Offcaw. -- to that of a ~etropolitan ~agishate shall by any such offen*.

(2) Notwithstanding anylhing containadin the Code of Criminal Procedure, 197'3, all offences punishable under this Regulation or the ~Ies made thaeunder shall be cognizable and bailable.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

92. (1) Subject to such conditions as may be prescribed, the Commissioner may

Statutory text

IrivatlpUoo authorise either generally or in respect of a particular case or class of cases any officm or OfO-. person subordinate to' him to investigate all or any of the offences punishable undtt this Regulation,

(2) Every officer or person so authorised shall, in the conduct of such investigation, exercise the powen conferred by the Code of Criminal naldure, 1973 upon an officer in charge of a police station for the invesligation of a cognizable offence. Cbapta m of Code of Crimid Pmoedurq 1973, no1 to ~PPV to Kctdin omm. Dealer to dcclsle tho name of manager of buridsJ. Service of notice whcn Mi is disrupted w flnn is diJsolvd. SERTES - I NO. : 05 DATED 1sTH AUGUST, 2005. .

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

93. DATED 1sTH AUGUST, 2005. .

Statutory text

(1) The Commissions may, before the institution of proceedings for any offence punishable under suhion (4) ofsection 89 or under any rules made under this Regulation, accept from any person charged withwch offence by way of composition of offence, a sum not exccedtng fifty thousand rupees or a sum not exding three times the amount of tax which would thereby have been avoided, whichever is higher.
(2) On payment of such sum as may be determined by the Commissioner under sub- section (I), no further proceedings shall be commenced against such person in respect of the same offence.

Chapter X AUDIT, INVESTIOATION AND ENFORCmENT

94. Nothing in Chapter XXXVI of the Code of Criminal Procedure, 1973 shall apply

Statutory text

2 of 1974. to-

(a) any offence under this Regulation; or
(b) any other offence which under the provisions of that Code may be tried along with such offence, and

every offence referred to in clause

(a) or clause (b) may be taken cognizance of by the court having jurisdiction under this Regulation as ifthe provisions of that Chapter were not enacted.

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