The Gujarat Purchase Tax on Sugarcane Act, 1989

Short title, extent and commencement.—

1. (1) This Act may be called the Gujarat Purchase Tax on Sugarcane Act, 1989.
2. (2) It extends to the whole of the State of Gujarat.
3. (3) It shall be deemed to have come into force on the 1st day of October, 1989.

Definitions.— In this Act, unless the context otherwise requires,—

1. (a) "appellate tribunal" means the Gujarat Sales Tax Tribunal constituted under the Gujarat Sales Tax Act, 1969;
2. (b) "factory" means any premises (including the precincts thereof) wherein or in any part of which any manufacturing process connected with the production of sugar is being carried on or is ordinarily carried on;
3. (c) "owner" in relation to a factory means a person who, or the authority which, owns or has the ultimate control over the affairs of the factory, and where the said affairs are entrusted to a manager, managing director, managing agent, or any other person, such manager, managing director or managing agent shall be deemed to be the owner of the factory;
4. (d) "prescribed" means prescribed by rules;
5. (e) "purchase tax" means the tax levied and payable under section 3;
6. (f) "sugar" means any form of sugar containing more than ninety per cent of sucrose;
7. (g) "sugarcane" means sugarcane intended for use in a factory for the purpose of manufacture of sugar;
8. (h) "tax" means the purchase tax;
   • (i) "year" means the financial year.

Incidence of purchase tax

1. (1) Subject to the provisions of this Act, there shall be levied and collected a tax on the purchase of sugarcane required for use, consumption or sale in a factory.
2. (2) The tax shall be levied at the rate as specified in the Schedule to this Act on the purchase price of the sugarcane.
3. (3) The tax shall be paid by the owner of the factory and shall be collected in such manner as may be prescribed.

Purchase tax on sugarcane

1. (1) Every owner of a factory shall be liable to pay the tax on the purchase of sugarcane at such rate as may be specified by the State Government by notification in the Official Gazette, not exceeding the rate specified in the Schedule.
2. (2) The tax levied under sub-section
3. (1) shall be in addition to any tax levied or leviable under any other law for the time being in force. (3) Provided that the State Government may, by notification, exempt any class of factories from the payment of the whole or any part of the tax payable under this Act, subject to such conditions as may be specified in the notification.

Registration of owners.—

1. (1) Every owner of a factory shall, within such period as may be prescribed, get his factory registered with such authority as may be prescribed.
2. (2) If any person fails to get his factory registered under sub-section (1), the prescribed authority may, after giving the owner a reasonable opportunity of being heard, impose upon him a penalty not exceeding five hundred rupees.

Returns.—

1. (1) Every owner of a factory shall furnish such returns in such form, for such period, by such dates and to such authority as may be prescribed.
2. (2) If any owner of a factory fails to furnish any return required by sub-section (1), the prescribed authority may, after giving the owner a reasonable opportunity of being heard, impose upon him a penalty not exceeding five hundred rupees for each failure.

Assessment of tax.—

1. (1) If the Commissioner is satisfied that the return furnished by an owner of a factory in respect of any period is correct and complete, he shall assess the tax on the basis of such return.
2. (2) If the Commissioner is not satisfied that the return furnished by an owner of a factory is correct and complete, he shall serve on such owner a notice in the prescribed form, requiring him on a date and at a place to be specified therein, to attend and to produce such books, accounts and other documents as the Commissioner may require in support of the said return.
3. (3) On the date specified in the notice, or as soon as may be thereafter, the Commissioner shall, after considering such evidence as may be produced by such owner and such other evidence as the Commissioner may require, assess the amount of tax due from such owner.
4. (4) If an owner of a factory fails to comply with the terms of any notice issued under sub-section (2), the Commissioner shall assess, to the best of his judgment, the amount of the tax due from him.

Re-assessment.— If the Commissioner has reason to believe that the whole or any part of the tax payable by any owner of a factory has escaped assessment for any year, or has been under-assessed, he may, at any time within five years from the expiry of that year, after giving such owner a reasonable opportunity of being heard, proceed to assess or re-assess the amount of tax due from him.

Assessment of tax in case of escape from assessment.

1. (1) If the assessing authority has reason to believe that the whole or any part of the sugarcane purchased by a factory has escaped assessment to tax or has been under-assessed or assessed at a lower rate, then the assessing authority may, at any time within five years from the end of the year in which the tax was due to be paid, serve on the owner of the factory a notice containing all or any of the requirements which may be included in a notice under sub-section
2. (2) of section 7 and may proceed to assess or re-assess the amount of the tax due from such owner and the provisions of this Act shall, so far as may be, apply as if the assessment or re-assessment were made in pursuance of the said section 7: Provided that the tax shall be charged at the rate at which it would have been charged if such sugarcane had not escaped assessment or full assessment.
3. (2) Nothing in sub-section
4. (1) shall be deemed to limit the time within which an assessment or re-assessment may be made to give effect to any finding or direction contained in an order passed by a Tribunal or a Court.

Payment of tax.

1. (1) The amount of tax due under the provisions of this Act shall be paid by the owner of the factory in such manner and within such time as may be prescribed: Provided that the owner of the factory shall pay the amount of tax in respect of the sugarcane purchased by him during any month in the prescribed manner and within the prescribed time of the succeeding month.
2. (2) If the tax is not paid by the owner of the factory within the time prescribed for its payment, the owner shall pay, by way of penalty, in addition to the amount of tax, a sum equal to two per cent of the amount of tax for every month or part thereof by which the payment of the tax is delayed.

Consequence of failure to pay tax.

1. (1) If any owner of a factory fails to pay the tax under section 3 within the time prescribed for the purpose, he shall be liable to pay, in addition to the tax, a penalty at the rate of two per cent of the amount of tax for each month or part thereof for the period for which the tax remains unpaid.
2. (2) The amount of tax and the penalty shall be recoverable as an arrear of land revenue.

Refunds. If the State Government is satisfied that the amount of tax paid by an owner of a factory exceeds the amount of tax payable by him under this Act, the State Government shall refund the amount of tax paid in excess to such owner:

Accounts and documents to be maintained Accounts and documents to be maintained.

1. (1) Every owner of a factory shall maintain—
   • (a) a true and correct account of the sugarcane purchased by him and the price paid therefor;
   • (b) such other accounts, records or documents, as may be prescribed.
2. (2) If the State Government considers that the accounts, records or documents maintained by any owner of a factory are not in a form which will enable the assessing authority to assess the tax due from such owner, the State Government may, by order, require such owner to maintain such accounts, records or documents in such form as may be specified in the order.

Power to call for information. The assessing authority may, for the purposes of this Act, require any owner of a factory—

1. (a) to produce before it such accounts, records or other documents,
2. (b) to furnish such information relating to the stocks of sugarcane or purchases, sales or deliveries of sugarcane or any other information, as may be necessary for the purposes of this Act.

Power of entry, inspection, search and seizure. —

1. (1) Any officer authorised by the State Government in this behalf may, for the purposes of this Act,—
   • (a) enter and search at any reasonable time any factory or any place where he has reason to believe that the owner of the factory keeps or for the time being keeps any accounts, registers or documents of his business;
   • (b) inspect such accounts, registers or documents;
   • (c) seize any books of accounts, registers or documents which in his opinion will be useful for, or relevant to, any proceedings under this Act.
2. (2) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974) relating to searches and seizures shall, so far as may be, apply to searches and seizures made under sub-section (1).

Offences and penalties. —

1. (1) Whoever—
   • (a) knowingly furnishes a false return or fails to furnish a return as required by or under this Act, or
   • (b) fraudulently evades or attempts to evade the payment of any tax due under this Act, or
   • (c) fails to keep any accounts or records of output or purchase of sugarcane as required by or under this Act, or
   • (d) prevents or obstructs any officer from exercising his power of entry, inspection, search or seizure under section 15, shall, on conviction, be punished with imprisonment for a term which may extend to six months or with fine which may extend to two thousand rupees or with both.
2. (2) No court shall take cognizance of any offence under this Act except with the previous sanction of the State Government or such officer as the State Government may authorise in this behalf.

Offences by companies

1. (1) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
2. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation.—For the purposes of this section—
   • (a) "company" means a body corporate, and includes a firm or other association of individuals; and
   • (b) "director" in relation to a firm means a partner in the firm.

Cognizance of offences No court shall take cognizance of any offence punishable under this Act, except with the previous sanction of the Commissioner, and no court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any such offence.

Compounding of offences.

1. (1) Subject to such conditions as may be prescribed, the Commissioner may, either before or after the institution of proceedings for an offence under this Act

Tribunal

1. (1) The State Government shall constitute a Tribunal consisting of such number of members as the State Government may think fit, to exercise the powers and perform the functions conferred on the Tribunal by or under this Act: Provided that the Tribunal shall consist of at least one member who is or has been a District Judge or possesses such other qualification as may be prescribed.
2. (2) The Tribunal shall, subject to the previous concurrence of the State Government, make regulations for the exercise of its powers and the discharge of its functions.
3. (3) In the exercise of its functions, the Tribunal shall have the same powers as are vested in a Court under the Code of Civil Procedure, 1908 (V of 1908) when trying a suit in respect of the following matters, namely:—
   • (a) discovery and inspection;
   • (b) enforcing the attendance of any person and examining him on oath;
   • (c) compelling the production of books of account and other documents; and
   • (d) issuing commissions.
4. (4) Any proceeding before the Tribunal shall be deemed to be a judicial proceeding within the meaning of Sections 193 and 228 and for the purposes of Section 196 of the Indian Penal Code (XLV of 1860) and the Tribunal shall be deemed to be a Civil Court for the purposes of Section 195 of the Code of Criminal Procedure, 1973 (2 of 1974).

Appeals.

1. (1) Any person or dealer objecting to any order passed under this Act may, within sixty days from the date on the service of such order, appeal to the Assistant Commissioner of Agricultural Income-tax (hereinafter referred to as the "Assistant Commissioner"): Provided that no appeal shall be entertained by the Assistant Commissioner unless he is satisfied that such amount of tax as the appellant may admit to be due from him has been paid.
2. (2) Every appeal shall be in the prescribed form and shall be verified in the prescribed manner.
3. (3) The Assistant Commissioner shall fix a day and place for the hearing of the appeal and shall from time to time adjourn the hearing thereof and may make or cause to be made such further inquiry as he thinks fit.
4. (4) In disposing of an appeal under sub-section (1), the Assistant Commissioner may—
   • (a) confirm, reduce, enhance or annul the assessment;
   • (b) set aside the assessment and direct the assessing authority to make a fresh assessment after such further inquiry as may be directed;
   • (c) pass such other orders as he may think fit.
5. (5) Any person or dealer aggrieved by an order passed by the Assistant Commissioner under sub-section
6. (4) may, within sixty days from the date of the service of such order, appeal to the Tribunal.
7. (6) The Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such order thereon as it thinks fit and such order shall, subject to the provisions of section 22, be final.

Revision.

1. (1) The Commissioner may, on his own motion or on an application made in this behalf, call for and examine the record of any proceeding under this Act and if he considers that any order passed therein by any officer other than the Tribunal is erroneous in so far as it is prejudicial to the interests of the State revenue, he may, after giving the person or dealer an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment.
2. (2) No order shall be made under sub-section
3. (1) after the expiry of three years from the date of the order sought to be revised.
4. (3) The time taken in obtaining a certified copy of the order or the time during which the order was stayed by a court of law or any other authority shall be excluded in computing the period of limitation specified in sub-section (2).

Rectification of mistakes

1. (1) The assessing authority or the appellate authority may at any time within two years from the date of any order passed by it, on its own motion, rectify any mistake apparent from the record and shall within the aforesaid period rectify any such mistake which has been brought to its notice by the owner: Provided that no such rectification shall be made which has the effect of enhancing the tax or reducing the amount of refund, unless the assessing authority or the appellate authority, as the case may be, has given notice to the owner of its intention to do so and has allowed the owner a reasonable opportunity of being heard.
2. (2) Where any such rectification has the effect of enhancing the tax or reducing the amount of refund, the assessing authority shall recover the tax due from the owner in the manner provided in section 12.
3. (3) Where any such rectification has the effect of reducing the tax or increasing the amount of refund, the assessing authority shall refund any amount due to the owner.

Delegation of powers The State Government may, by notification in the Official Gazette, delegate to any officer or authority subordinate to it, all or any of the powers conferred upon the State Government or the Commissioner by or under this Act, except the power to make rules under section 27.

Protection of persons acting in good faith and limitation of suit or prosecution.

1. (1) No suit, prosecution or other legal proceedings shall lie against the State Government or any officer or servant of the State Government for anything which is in good faith done or intended to be done in pursuance of this Act or any rules made thereunder.
2. (2) No suit shall be instituted against the State Government and no prosecution or suit shall be instituted against any officer or servant of the State Government in respect of anything done or intended to be done under this Act, unless the suit or prosecution has been instituted within six months from the date of the act complained of.

Power to make rules.

1. (1) The State Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.
2. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—
   • (a) the form of returns to be furnished and the manner of furnishing the same;
   • (b) the manner in which the tax shall be paid;
   • (c) any other matter which is to be or may be prescribed under this Act.
3. (3) The power to make rules conferred by this section shall be subject to the condition of previous publication.
4. (4) All rules made under this section shall be laid for not less than thirty days before the State Legislature as soon as may be after they are made and shall be subject to such modifications as the State Legislature may make during the session in which they are so laid or the session immediately following.
5. (5) Any modification so made by the State Legislature shall be published in the Official Gazette and shall thereupon take effect.

Power to remove difficulties

1. (1) If any difficulty arises in giving effect to the provisions of this Act, the State Government may, by notification in the Official Gazette, make such provisions not inconsistent with the purposes of this Act, as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the commencement of this Act.
2. (2) Every order made under sub-section
3. (1) shall be laid, as soon as may be, after it is made, before the State Legislature.