Chapter IV Chapter IV

Return, assessment, payment, recovery and collection of taxes

1. (1) Notwithstanding anything contained in section 18, every registered dealer and every dealer who is liable to get himself registered under this Act shall, every year, submit a return to the assessing authority within such period, in such manner, and containing such particulars as may be prescribed.
2. (2) Before any dealer submits any return under sub-section (1), he shall, in the prescribed manner, pay in advance the full amount of tax payable by him on the basis of such return as reduced by any tax already paid under section 18 and shall furnish along with the return satisfactory proof of the payment of such tax. After the final assessment is made, the amount of tax so paid shall be deemed to have been paid towards the tax finallyassessed.
3. (3) If the assessing authority is satisfied that any return submitted under sub-section (1) is correct and complete, he shall assess the dealer on the basis thereof.
4. (4) If no return is submitted by the dealer under sub-section (1) before the period prescribed or if the return submitted by him appears to the assessing authority to be incorrect or incomplete, he shall assess the dealer to the best of his judgement recording the reasons for such assessment: Provided that before taking action under this sub-section the dealer shall be given reasonable opportunity of proving the correctness and completeness of the return submitted by him.
5. (5) While making any assessment under sub-section (4), the assessing authority may also direct the dealer to pay, in addition to the tax assessed, a penalty not exceeding one and a half times the amount of tax due that was not disclosed by the dealer in his return orin the case of failure to submit a return one and a half times the tax assessed, as the case may be.
6. (6) No assessment under this section for any year shall be made after a period of three years from the date on which return under section 14 for that year is submitted by a dealer: Provided further that nothing contained in this sub-section limiting the time within which the assessment may be made shall apply to an assessment made on the assessee or any person in consequence of, or to give effect to any finding, direction or order made under sections 28, 29 or 30 or any judgment or order made by any Court.
7. (7) In computing the period of limitation for assessment under this section,—
   • (a) the time during which the proceedings for assessment in question have been deferred on account of any stay order granted by any Court or any other authority shall be excluded;
   • (b) the time during which the assessment has been deferred in any case or classes of cases by the Commissioner for reasons to be recorded in writing shall be excluded.
8. (8) Where an assessment under this section is not concluded within the time specified under sub-section (6), the turnover or the value of taxable goods, as the case may be, declared` by a dealer in his annual return shall be deemed to have been assessed for that year on the basis of the said return and the provisions of the Act relating to assessment of such escaped turnover or purchase value of taxable goods, as the case may be, payment and recovery, appeal and revision shall, mutatis mutandis, apply to such deemed assessment.

1. (1) The assessing authority, may, for good and sufficient reasons, demand from any dealer liable to pay tax under this Act, security for the proper payment of tax payable by him and on such demand such dealer shall furnish the same within seven days from the date of receipt of an order demanding security from the aforesaid authority.
2. (2) The amount of security payable under sub-section (1), for any year shall not exceed an amount equivalent to one-half of the tax anticipated to be payable by the dealer for that year: Provided that the assessing authority shall have power to demand at any time additional security if such authority has reason to believe that the security fixed was too low.
3. (3) The security paid under sub-section (2) in any year shall be maintained in full until it is dispensed with by the assessing authority on being satisfied that the reason for its demand no longer exists or until the registration certificate is cancelled, whichever is earlier.

1. (1) Where an assessee, within one month from the service of a notice of demand, makes an application and satisfies the assessing authority that he was prevented by sufficient cause from appearing as required under section 14, or that he did not receive the notice issued under that section or that he had not a reasonable opportunity of being heard, the assessing authority shall cancel the assessment and proceed to make a fresh assessment in accordance with the provisions of section 14: Provided that no application under this sub-section shall be entertained by the assessing authority if tax admitted in the return is not paid.
2. (2) Nothing contained in sub-section (1) shall apply to an assessment which has been made the subject-matter of an appeal under section 28.
3. (3) No appeal shall lie under section 28 against an order passed under this section.
4. (4) Every order passed under this section shall, subject to the provisions of sections 29, 31, 33 and 34, be final.

1. (1) If the assessing authority has reasons to believe that the whole or any part of the turnover of a dealer or the value of taxable goods brought or caused to be brought into a local area by a dealer, whether on his own account or an account of his principal or any other person or who has taken delivery or is entitled to take delivery of such goods on its entry into local area in respect of any period, has escaped assessment to tax or has been under assessed or has been assessed at a rate lower than the rate at which it is assessable under this Act or any deduction or exemption have been wrongly allowed in respect thereof, the assessing authority may, notwithstanding the fact that the whole or part of such escaped turnover or value of taxable goods, as the case may be, was already before the said authority at the time of original assessment or re-assessment, but subject to the provisions of sub-section (3), at any time within a period of eight years from the expiry of the year to which the tax relates, proceed to assess or re-assess to the best of its judgment the tax payable by a dealer in respect of such turnover or purchase value of such goods, as the case may be, after issuing a notice to the dealer and after making such enquiry as it may consider necessary.
2. (2) In making an assessment under sub-section (1), the assessing authority may, if it is satisfied that the escape from assessment is due to wilful non-disclosure of the entry of such goods by the dealer, direct him to pay, in addition to the tax assessed undersub-section (1), a penalty not exceeding one and a half times the tax so assessed: Provided that no penalty under this sub-section shall be directed to be paid unless the dealer affected has had a reasonable opportunity of showing cause against such imposition.
3. (3) In computing the period of limitation for assessment under this section, the time during which an assessment has been deferred on account of any stay order granted by any Court or other authority or by reason of the fact that an appeal or other proceeding is pending, shall be excluded: Provided that nothing contained in this section limiting the time within which any action may be taken or any order, assessment or reassessment may be made, shall apply to an assessment or reassessment made on the assessee or any person in consequence of or to give effect to, any finding direction or order made under sections 28, 29, 30, 31 or33 or any judgment or order made by the Supreme Court, the High Court, or any other Court.

1. (1) Subject to such rules as may be made, every registered dealer and every dealer liable to get himself registered under this Act shall send every month to the assessing authority a statement containing such particulars as may be prescribed and shall pay in advance the full amount of tax payable by him on the basis of the goods brought by him during the preceding month into the local area within thirty days after the close of the preceding month to which such tax relates and the amount so payable shall for the purpose of sub-section (4) of section 19 be deemed to be an amount due under this Act from such dealer.
2. (2) If default is committed in the payment of tax in accordance with sub-section (1) beyond ten days after the expiry of the period specified in the said sub-section, the dealer shall pay by way of penalty, a sum equal to two per cent of the tax payable for every such month or part thereof during which such default is continued.
3. (3) If, at the end of the year it is found that the amount of tax paid in advance by any dealer for any month or for the whole year in the aggregate was less than the tax payable for that month or the tax for the whole year as finally assessed, as the case may be, by more than fifteen per cent, the assessing authority may direct such dealer to pay, in addition to the tax, by way of penalty, a sum not exceeding one and a half times the amount of tax so paid falls short of the tax payable for the month or for the whole year, asthe case may be: Provided that no penalty under this sub-section shall be imposed unless the dealer affected has had a reasonable opportunity of showing cause against such imposition.
4. (4) If no such statement is submitted by a dealer under sub-section (1) before the date prescribed or if the statement submitted by him appears to the assessing authority to be incorrect or incomplete, the assessing authority may assess the dealer provisionally for that month to the best of his judgment, recording the reasons for such assessment, and proceed to demand and collect the tax on the basis of such assessment: Provided that before taking action under this sub-section, the dealer shall be given a reasonable opportunity of being heard.

1. (1) The tax under this Act shall be paid in such manner and in such instalments, if any, and subject to such conditions and payment of such interest and within such time, as may be prescribed.
2. (2) If default is made in making payment in accordance with sub-section (1),—
   • (i) the whole of the amount outstanding on the date of default shall become immediately due and shall be a charge on the property of the person or personsliable to pay tax under this Act;
   • (ii) the person or persons liable to pay the tax under this Act shall pay a penalty equal to,–
   • (a) one and half percent of the amount of tax remaining unpaid for each month or for part thereof, for the first three months after the expiry of thetime prescribed under sub-section (1); and
   • (b) two and half per cent of such amount for each month or for part thereof, subsequent to the first three months as aforesaid.
3. (3) Notwithstanding anything contained in sub-section (2), where the amount of penalty does not exceed rupees two lakh, the Commissioner and in any other case, the Government may, subject to such conditions as may be prescribed, remit the whole or any part of the penalty payable in respect of any period by any person or class of persons.
4. (4) Any tax assessed, or any other amount due under this Act from a dealer may, without prejudice to any other mode of collection be recovered,—
   • (a) as if it were an arrear of land revenue; or
   • (b) by attachment and sale or by sale without attachment of any property of such dealer or any other person by the prescribed officer in accordance with such rules as may be prescribed: Provided that where a dealer who has appealed or applied for revision of any, order made under this Act and has complied with an order made by the appellate or the revising authority in regard to the payment of tax or other amount, no proceedings for recovery under this sub-section shall be made or continued until the disposal of such appeal or application for revision.

1. (1) Where an order giving rise to refund is the subject-matter of an appeal or further proceeding or where any other proceeding under this Act is pending, and the authority competent to grant such refund is of the opinion that the grant of refund is likely to adversely affect the revenue, such authority may, with the previous approval of the Commissioner, withhold the refund till such time as the Commissioner may determine.
2. (2) Where a refund is withheld under sub-section (1), the Government shall payinterest at the rate of twelve per cent per annum on the amount of refund ultimately determined to be due to the person as a result of the appeal or further proceedings, for the period from the date immediately following the expiry of ninety days from the date of the order referred to in sub-section (1) to the date of refund.

1. (1) The assessing authority may, at any time or from time to time, by notice in writing (a copy of which shall be forwarded to the dealer from whom any tax assessed is due, at his last address known to the assessing authority) require any person from whom money is due to the dealer or any person who holds or may subsequently hold money for or on account of the dealer to pay to the assessing authority, either forthwith upon the money becoming due or being held.at or within the time specified in the notice (not being before the money becomes due oris held, so much of the money as is sufficient to pay the amount due by the dealer in respect of arrears of tax or penalty or the whole of the money when it is equal to or less than that amount.
2. (2) The assessing authority may, at any time or from time to time, amend or revoke any such notice or extend the time for making any payment in pursuance of the notice.
3. (3) Any person making any payment in compliance with a notice under this section shall be deemed to have made the payment under the authority of the dealer and the receipt of the assessing authority shall constitute a good and sufficient discharge of the liability of such person to the extent of the amount referred to in the receipt.
4. (4) Any person discharging any liability to the dealer after receipt of the notice referred to in this section shall be personally liable to the assessing authority to the extent of the liability discharged or to the extent of the dealer for the amount due under this Act, whichever is less.
5. (5) Where any person to whom a notice under this section is sent objects to it on the ground that the sum demanded or any part thereof is not due by him to the dealer or that he does not hold any money for or on account of the dealer, then, nothing contained inthis section shall be deemed to require such person to pay the sum demanded or any part thereof, to the assessing authority. Explanation.— For the purposes of this section, the amount due to dealer or money held for or on account of dealer shall be computed after taking into account such claims,if any, as may have fallen due for payment by such dealer to such person and as may be lawfully subsisting.

1. (1) Where any firm is liable to pay any tax or other amount under this Act, the firm and each of the partners of the firm shall be jointly and severally liable for such payment.
2. (2) Where a partner of a firm liable to pay any tax, or other amount under this Act retires, he shall, notwithstanding any contract to the contrary, be liable to pay the tax, or other amount remaining unpaid at the time of his retirement and any tax or other amount due upto the date of retirement, though unassessed.

Where a dealer dies, his executor, administrator or other legal representative shall be deemed to be the dealer for thepurposes of this Act and the provisions of this Act shall apply to him in respect of the business of the said deceased dealer:

Provided that, in respect of any tax, penalty or fee assessed or payable by any such dealer or any tax, penalty or fee which would have been payable by him under this Act if he had not died, the executor, administrator or other legal representative shall be liable only to the extent of the assets of the deceased in his hands.

1. (1) When the ownership of the business of a dealer liable to pay any tax or penalty, or any other amount under the provisions of this Act, is transferred, the transferor and the transferee shall jointly and severally be liable to pay any tax or penalty or any other amount payable but remaining unpaid at the time of transfer, and for the purpose of recovery from the transferee, such transferee shall be deemed to be the dealer liable to pay the tax or penalty or other amount under this Act.
2. (2) When a firm liable to pay the tax or penalty is dissolved, the assessment of the tax and imposition of penalty shall be made as if no dissolution of the firm had taken place, and every person who was at the time of dissolution a partner of the firm and the legal representative of any such person who is deceased, shall be jointly and severally liable to pay the tax or penalty assessed or imposed.
3. (3) When an undivided Hindu family, liable to pay the tax or penalty, is partitioned, the assessment of the tax and the imposition of penalty shall be made as if no partition of the family had taken place, and every person who was a member of the family before the partition shall be jointly and severally liable to pay the tax or penalty assessed or imposed.
4. (4) Where a dealer dies, his executor, administrator or other legal representative shall be deemed to be the dealer for the purpose of this Act and the provisions of this Act shall apply to him in respect of the business of the said deceased dealer, provided that, in respect of any tax or penalty assessed as payable by any such dealer or any tax or penalty which would have been payable by him under this Act if he had not died, the executor, administrator or other legal representative shall be liable only to the extent of the assets of the deceased in his hands.

1. (1) The Government may, if in its opinion it is necessary in public interest so to do, by notification and subject to such restrictions and conditions and for such period as may be specified in the notification, exempt or reduce, either prospectively or retrospectively, the tax payable under this Act,—
   • (i) by any specified class of persons or class of dealers or in respect of any goods or class of goods; or
   • (ii) on entry of all or any goods or class of goods into any specified local area.
2. (2) The Government may, by notification cancel or vary any notification issued under sub-section (1).
3. (3) Where any restriction or condition specified under sub-section (1) is contravened or is not observed by a dealer or a declaration furnished under the said sub-section is found to be wrong, then such dealer shall be liable to pay by way of penalty an amount equal to twice the difference between the tax payable at the rates specified by or under this Act and the tax paid at the rates specified under the notification on the value of such goods in respect of which such contravention or non-observance has taken place or a wrong declaration is furnished: Provided that before taking action under this sub-section, the dealer shall be given a reasonable opportunity of being heard.

• • 15 - performing functions under 24 [the Goa Value Added Tax Act, 2005 (Goa Act 9 of 2005) ]in any area or in respect of any dealer or classes of dealer, shall exercise power, discharge duties and perform functions under this Act in respect of such area and such dealer or classes of dealers.

1. (2) The Commissioner may, by order in writing, at any time transfer any case pending before one officer to another officer and the officer to whom the case is so transferred may proceed either de novo or from the stage at which it was transferred.
2. (3) Where a case pending before an officer is transferred to another officer under sub- section (2), the officer to whom the case is transferred shall, notwithstanding anything contained in this Act, have the same powers and perform the same duties as those respectively conferred and imposed on the officer from whom the case is so transferred.
3. (4) The Government and the Commissioner may, from time to time, issue such orders, instructions and directions to all officers and persons employed in the execution of this Act as they may deem fit for the administration of this Act and all such officers and persons shall observe and follow such orders, instructions and directions of the Government and the Commissioner: Provided that no such orders, instructions or directions shall be issued so as to interfere with the discretion of any appellate authority in the exercise of its appellate functions.
4. (5) Without prejudice to the generality of the foregoing power, the Commissioner may on his own motion or on an application by a dealer liable to pay tax under this Act, if he considers it necessary or expedient so to do, for the purpose of maintaining uniformity in the work of assessments and collection of revenue or for the removal of any doubt clarify

(1) The officers exercising powers, discharging duties and the rate of tax payable under this Act in respect of goods liable to tax under the Act or the doubt, as the case may be, and all officers and persons employed in the execution of this Act shall observe and follow such clarification: Provided that no such application shall be entertained unless it is accompanied by proof of payment of such fee paid in such manner as may be prescribed. Explanation.— In this section, the word ‘case’ in relation to any dealer specified in any direction or order issued thereunder means all proceedings under this Act in respect of any year which may be pending on the date of such order or direction or which may have been completed on or before such date and includes also all proceedings under this Act which may be commenced after the date of such order or direction in respect of any year.