Chapter XI Chapter XI

1. (1) With a view to identifying dealers who are liable to pay tax under this Act, but have remained unregistered, the Commissioner shall, from time to time, cause a survey of unregistered dealers to be taken.
2. (2) For the purposes of the survey, the Commissioner may, by general or special notice, require any dealer or class of dealers to furnish the names, addresses and such other particulars as he may find necessary relating to the persons and dealers who have purchased any goods from or sold any goods to such dealer or class of dealers during any given period.
3. (3) For the purposes of survey, the Commissioner may, call for details and particulars regarding the services provided by public utilities and financial institutions including banking companies which he is of the opinion will be relevant and useful for the purposes of the survey. He may, from time to time, cause the results of the survey to be published

in any manner that he thinks fit, so however as not to disclose or indicate the identify of any particular unregistered dealer identified during the survey.

1. (4) The Commissioner may, for the purposes of the survey, enter any place where a person is engaged in business but is unregistered or has not applied for grant of a certificate of registration, whether such place be the principal place of business or not of

such business and require any proprietor, employee or any other person who may at that time and place be attending in any manner to or helping in the business,—

1. (i) to afford him the necessary facility to inspect such books of accounts or other documents as he may require and which may be available at such place;
2. (ii) to afford him the necessary facility to check or verify the cash, stock or other valuable article or thing which may be found therein; and
3. (iii) to furnish such information as he may require as to any matter which may be useful for, or relevant to, any proceedings under this Act. Explanation:— For the purposes of this sub-section, a place where a person is engaged in business will also include any other place in which the person engaged in business or the said employee or other person attending or helping in business states that any of the books of accounts or other documents or any part of the cash, stock or other valuable article or thing relating to the business are or is kept.

1. (5) The Commissioner shall enter the place where the person is carrying on business only during the hours at which such place is open for business and in case of the said any other place only after sunrise and before sunset. The Commissioner may make or cause to be made extracts or copies from books of accounts and other documents inspected by him, make an inventory of any cash, stock or other valuable article or thing checked or verified by him, and record the statement of any person which may be useful for, or relevant to, any proceeding under this Act.
2. (6) The Commissioner, in exercise of the powers under this section, shall, on no account, remove or cause to be removed from the place where he has entered, any books of accounts other documents or any cash, stock or other valuable article or thing. 107[(7) The Government may, by notification formulate a scheme for monetary reward or incentives to employees or public towards their input or action which helps the Government to earn revenue on account of unearthed concealed revenue or for collection of amount towards penalty.]

1. (1) The Government shall endeavour to introduce and establish an automated data processing system for implementing the purposes of the Act and for incidental and allied matters.
2. (2) In order to make effective the said system, the Government may, from time to time, make regulations for regulating the interactions between the dealers, authorities appointed or constituted under the Act and the Government treasury, Central Government or other State Governments and Union territories.

1. (1) If the Commissioner considers that for the purposes of better administration of this Act it is necessary so to do, he may, by notification in the Official Gazette, direct that statistics be collected relating to any matter dealt with, by or in connection to this Act.
2. (2) Upon such direction being made, the Commissioner or any person or persons authorized by him in this behalf may, by notification in the Official Gazette; and if found necessary by notice in any newspapers or in such other manner as in the opinion of the Commissioner or the said person, is best calculated to bring the notice to the attention of dealers and other person or persons, call upon all dealers or any class of dealers or persons to furnish such information or returns as may be stated therein relating to any matter in respect of which statistics are to be collected. The form in which, the persons to whom, or the authorities to which, such information or returns should be furnished, the particulars which they should contain, and the intervals in which such information or returns should be furnished, shall be such as may be prescribed.
3. (3) Without prejudice to the generality of the foregoing provisions, the Government may by rules provide that every registered dealer or, as the case may be, any class of registered dealers shall furnish, in addition to any other returns provided for elsewhere, an

annual return in such form, by such date and to such authority as may be prescribed and different provisions may be made for different classes of registered dealers.

1. (1) All particulars contained in any statement made, return furnished or accounts or documents produced in accordance

with this Act, or in any record of evidence given in the course of any proceedings under this Act (other than proceeding before a Criminal Court), or in any record of any assessment proceeding, or in any proceeding relating to the recovery of a demand, shall, save as provided in sub-section (3), be treated as confidential; and notwithstanding anything contained in the Indian Evidence Act, 1872 (Central Act 1 of 1872), no court shall save as aforesaid, be entitled to require any servant of the Government to produce before it any such statement, return, account, document or record or any part thereof, or to give evidence before it in respect thereof.

1. (2) If, save as provided in sub-section (3), any servant of the Government discloses any

of the particulars referred to in sub-section (1), he shall, on conviction, be punished with imprisonment, which may extend to six months or with fine or with both: Provided that no prosecution shall be instituted under this section except with the previous sanction of the Government.

1. (3) Nothing contained in this section shall apply to the disclosure of,—
   • (a) any such particulars in respect of any such statement, return, accounts, documents, evidence, affidavit or deposition, for the purpose of any prosecution under the Indian Penal Code, 1960 (Central Act 45 of 1860) or the Prevention of Corruption Act, 1988 (Central Act 49 of 1988), or this Act, or any other law for the time being in force; or
   • (b) any such particulars to the Government or to any person acting in the execution of this Act or to any person for the purposes of this Act; or
   • (c) any such particulars when such disclosure is occasioned by the lawful employment under this Act of any process for the service of any notice or the recovery of any demand; or
   • (d) any such particulars to a Civil Court in any suit, to which the Government is a party, which relates to any matter arising out of any proceeding under this Act; or
   • (e) any such particulars to any officer appointed to audit receipts or refunds of the tax imposed by this Act; or
   • (f) any such particulars where such particulars are relevant to any inquiry into the conduct of an official of the 108[Commercial Tax Department] or to any person or persons appointed as Commissioner under the Public Servants (Inquiries) Act, 1850 (Central Act 37 of 1850), or to any officer otherwise appointed to hold such inquiry or to a Public Service Commission established under the Constitution, when exercising its functions in relation to any matter arising out of such inquiry; or
   • (g) such facts to an officer of the Central Government or any State Government or Union territory as may be necessary for the purpose of enabling that Government to levy or realise any tax or duty imposed by it; or
   • (h) any such particulars, when such disclosure is occasioned by the lawful exercise

by a public servant of his powers under the Indian Stamp Act, 1899 (Central Act 2 of

1899), to impound an insufficiently stamped document; or

1. (i) any such particulars where such particulars are relevant to any inquiry into a charge of misconduct in connection with sales tax proceedings against a legal practitioner, sales tax practitioner or Chartered Accountant, Cost Accountant, to the authority, if any, empowered to take disciplinary action against members practising the

profession of a legal practitioner, sales tax practitioner or Chartered Accountant, Cost

Accountant, as the case may be; or

1. (j) any such particulars to the Director, Bureau of Economics and Statistics or any officer serving under him or to any person or persons authorized under sub-section (2) of section 78 as may be necessary for enabling the Director or such person or persons to carry on their official duties.
2. (k) any such particulars to an officer of the Central Government or any State

Disclosure of Information required under Section 79 and failure to furnish Information or Return under that Section.— (1) No information of any individual return or part thereof, with respect to any matter given for the purposes of section 79 shall without the previous consent in writing of the owner for the time being or his authorized agent be published in such manner as to enable any particulars to be identified as referring to a particular dealer and no such information shall be used for the purpose of any proceedings under the provisions of this Act.

1. (2) Except for the purposes of prosecution under this Act or any other Act, no person who is not engaged in the collection of statistics under this Act or of compilation or

computerization thereof for the purposes of administration of this Act, shall be permitted to see or have access to any information of any individual return referred to in this section.

1. (3) If any person required to furnish any information or return under section 78,—
   • (a) wilfully refuses or without lawful excuse neglects to furnish such information or return as may be by that section be required; or
   • (b) wilfully furnishes or causes to be furnished any information or return which he knows to be incorrect or false, he shall on conviction be punished with fine which may extend to one thousand rupees and in case of a continuing offence to a further fine which may extend to one hundred rupees for each day after the first day during which the offence continues.
2. (4) If any person engaged in connection with the collection of statistics under section 78 or compilations or computerization thereof wilfully discloses any information or the contents of any return given or made under that section, otherwise than in execution of his duties under that section or for the purposes of the prosecution of an offence under this Act or under any other Act, he shall on conviction be punished with imprisonment for a term which may extend to six months or with fine which may extend to one thousand rupees, or with both.
3. (5) Nothing in this section will apply to publication of any information relating to a class of dealers or class of transactions, if in the opinion of the Commissioner, it is desirable in the public interest, to publish such information.

Persons in Public Interest.— (1) Notwithstanding anything contained in section 79 and 80, if the Government is of the opinion that it is necessary or expedient in the public interest to publish or disclose the names of any dealers or other persons and any other particulars relating to any proceedings under this Act in respect of such dealers and persons, it may publish or disclose or cause to be published or disclosed such names and particulars in such manner as it thinks fit.

1. (2) No publication or disclosure under this section shall be made in relation to any tax

levied or penalty imposed or interest levied or any conviction for any offence connected with any proceeding under this Act, until the time for presenting an appeal to the appropriate appellate authority has expired without an appeal having been presented or the appeal, if presented has been disposed of. Explanation:— In the case of a firm, company or other association of persons, the names of the partners of the firm, the directors, managing agents, secretaries, treasurers or managers of the company or the members of the association, as the case may be, may also be published or disclosed, if, in the opinion of the Government, the circumstances of the case justify it.