The Himachal Pradesh General Sales Tax Act, 1968

-1 1. Short title, extent and commencement.

1. (1) This Act may be called the Himachal Pradesh General Sales Tax Act, 1968.
2. (2) It extends to the whole of Himachal Pradesh.
3. (3) It shall come into force at once.

Definitions. In this Act, unless there is anything repugnant in the subject or context,-

1. (a) "Assessing Authority" means any person authorised by the State Government to make any assessment under this Act;
2. (aa) "business" includes, -
   • (i) any trade, commerce or manufacture, or any adventure or concern in the nature of trade, commerce, or manufacture, whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make gain or profit and whether or not any gain or profit accrues from such trade, commerce, manufacture, adventure or concern; and
   • (ii) any transaction in connection with, or incidental or ancillary to, such trade, commerce, manufacture, adventure or concern;]
3. (b) "Commissioner" means the Excise and Taxation Commissioner appointed under sub-section (1) of section 3;
4. (c) "dealer" means any person who carries on (whether regularly or otherwise) the business of buying, selling, supplying or distributing goods, directly or indirectly, for cash, or for deferred payment, or for commission, remuneration or other valuable consideration and includes:
   • (i) a local authority, a body corporate, a company, a co-operative society or other society, club, firm, Hindu Undivided Family or other association of persons which carries on such business:
   • (ii) a factor, broker, commission agent, a dealer's agent or any other mercantile agent, by whatever name called, and whether of the same description as hereinbefore mentioned or not, who carries on the business of buying, selling, supplying or distributing goods belonging to any principal, whether disclosed or not;
   • (iii) an auctioneer who carries on the business of selling or auctioning goods belonging to any principal, whether disclosed or not, and whether the offer of the indenting purchaser is accepted by him or by the principal or a nominee of the principal[; and]
   • (iv) every person engaged in the business of,-
5. (a) transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration;
6. (b) transfer of property in goods(which as goods or in some other form) involved in the execution of a works contract;
7. (c) delivery of goods on hire-purchase or any system of payment by instalments;
8. (d) transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;
9. (e) supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration; and
10. (f) supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service, is for cash, deferred payment or other valuable consideration.] Explanations.-(1) Every person who acts as an agent in Himachal Pradesh of a dealer residing outside this State and buys, sells, supplies or distributes goods in the State or acts on behalf of such dealer as-
    • (i) a mercantile agent as defined in the Sale of Goods Act, 1930(3 of 1930); or
    • (ii) an agent for handling of goods or documents of title relating to goods; or
    • (iii) an agent for the collection of the payment of the sale price of goods or as a guarantor for such collection or payment; and every local branch or office in Himachal Pradesh of a firm registered outside this State or a company or other body corporate, the principal office or headquarters whereof is outside this State, shall be deemed to be a dealer for the purpose of this Act.

1. (2) [Every department or its subordinate offices, of a Government] which whether or not in the course of business, buys, sells, supplies or distributes goods, directly or otherwise, for cash or for deferred payment or for commission, remuneration or other valuable consideration, shall, except in relation to any sale, supply or distribution of surplus, unserviceable or old stores or materials or waste products or obsolete or discarded machinery or parts or accessories thereof, be deemed to be a dealer for the purpose of this Act.
2. (3) For the purpose of this clause "Government" shall include the Central Government or the Government of any other State or Union Territory;]
   • (d) "declared goods" shall have the meaning assigned to that expression in clause(c) of section 2 of the Central Sales Tax Act, 1956(Act No. 74 of 1956),
   • (dd) Deputy Excise and Taxation Commissioner, appointed under sub-section
3. (1) of section 3 of this Act, to assist the Commissioner and shall also include the Joint Excise and Taxation Commissioner;
   • (ddd) "Financial Commissioner" means the Financial Commissioner appointed or empowered to exercise the powers of the Financial Commissioner under this Act;]
   • (e) ''goods" means every kind of movable property other than newspapers, actionable claims, stocks, shares or securities, and, includes growing crops, grass, trees and things attached to or fastened to anything permanently attached to the earth but which under the contract of sale, are agreed to be severed, and includes any class of goods;]
   • (f) "notification" means notification published under proper authority in the Rajpatra, Himachal Pradesh ;
   • (g) "prescribed" means prescribed by rules made under this Act;
   • (h) "purchase" with all its grammatical or cognate expressions, means the acquisition of goods for cash or deferred payment or other valuable consideration otherwise than under a mortgage, hypothecation, charge or pledge and includes-
     • (i) the transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration;
     • (ii) the transfer of property in goods(whether as goods or in some other form) involved in the execution of works contract;
     • (iii) the delivery of goods on hire-purchase or any system of payment by instalments;
     • (iv) the transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;
     • (v) the supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration;
     • (vi) the supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption, or any drink (whether or not intoxicating), where such supply or service, is for cash, deferred payment or other valuable consideration, and such transfer, delivery or supply of any goods shall be deemed to be a sale of those goods by the persons making the transfer, delivery or supply and a purchase of those goods by the person to whom such transfer, delivery or supply is made;
     • (i) "registered" means registered under this Act;
   • (j) "sale" means any transfer of property of goods for cash or for deferred payment or for any other valuable consideration other than a mortgage, hypothecation, charge or pledge, and includes-
     • (i) the transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration;
     • (ii) the transfer of property in goods(whether as goods or in some other form) involved in the execution of a works contract;
     • (iii) the delivery of goods on hire-purchase or any system of payment by instalments;
     • (iv) the transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;
     • (v) the supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration;
     • (vi) the supply: by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service, is for cash, deferred payment or other valuable consideration; and such transfer, delivery or supply of any goods shall be deemed to be a sale of those goods by the person making the transfer, delivery or supply and a purchase of those goods by the person to whom such transfer, delivery or supply is made;]
   • (k) "Schedule" means a Schedule to this Act;
   • (l) "State Government" or "Government" means the Government of Himachal Pradesh;
   • (ll) "timber" includes trees when they have fallen, or have been felled or agreed to be felled and all wood whether cut up or fashioned or hollowed out for any purpose or not;]
   • (m) "turnover" includes, the aggregate of the amounts of sales and purchases and parts of sales and purchases actually made by any dealer during the given period less any sum allowed as cash discount according to ordinary trade practice. but including any sum charged for anything done by the dealer in respect of the goods at the time of, or before, delivery thereof, Explanations.-(1) The proceeds of any sale made outside the Himachal Pradesh by a dealer, who carries on business both inside and outside Himachal Pradesh, shall not be included in the turnover..
4. (2) The turnover of any dealer in respect of transactions of forward contracts, in which goods are actually not delivered, shall not be included in the turnover.
5. (3) The proceeds of sale of any goods on the purchase of which tax is leviable under this Act, or the purchase value of any goods on the sale of which tax is leviable under this Act; shall not be included in the turnover of a dealer;
6. (4) in respect of transactions covered under sub-clause (iii) of clause (h) and sub-clause (iii) of clause (j) of this section the amount to be included in the turnover shall be the total sum payable by the hirer under a hire-purchase agreement in order to complete the purchase agreement in order to complete the purchase of, or the acquisitions of property in the goods to which the agreement relates and includes any sum as by the hirer under the hire purchase agreement by way of deposit or other initial payment, or credited or to be credited to him under such agreement on account of any such deposit or payment whether that sum is to be or has been paid to owner or to any person or is to be or has been discharged by payment of money or by transfer or delivery of goods or by any other means, but does not include any sum payable as a penalty or as compensation or damages for breach of the agreement.
7. (5) The amount to be included in the turnover in respect of transfer of property in goods (whether as goods or in some other form) involved in the execution of work contract shall be its sale price;]
   • (n) "year" means the financial year;
   • (o) "import" means the bringing of goods into Himachal Pradesh from any place outside its limits [;]
   • (p) "small scale industries" means all industrial units with [a capital investment as may be prescribed] irrespective of the number of persons employed; Explanation.- In this clause "capital investment" means Investment in plant and machinery only

Taxing authorities -

1. (1) For carrying out the purposes of this Act, the State Government may appoint a person to be Excise and Taxation Commissioner, and such other persons to assist him as it thinks fit.
2. (2) Persons appointed under sub-section (1) shall exercise such powers as may be conferred, and perform such duties as may be required, by or under this Act.
3. (3) All persons appointed under sub-section (1) shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).

Incidence of taxation.-

1. (1) Subject to the provisions of section 6, section 7 and sub-section (2) of section 12, every dealer (except one dealing exclusively in goods declared tax free under section 7) whose gross turnover during the year immediately preceding the commencement of this Act exceeded the taxable quantum shall be liable to pay tax under this Act on all sales effected and purchases made after the coming into force of this Act.
2. (2) Every dealer to whom sub-section (1) does not apply or who does not deal exclusively in goods declared to be tax free under section 7 shall be liable to pay tax under this Act on the expiry of 30 days after the date on which his gross turnover during any year first exceeds the taxable quantum: Provided that in the case of a dealer who imports any goods for sale or use in manufacturing or processing, or who manufactures or processes any goods for sale, the liability to pay tax shall commence with effect from the date on which his gross turnover during any year first exceeds the taxable quantum.
3. (3) Notwithstanding anything contained in sub-sections (1) and (2) no tax on the sale of any goods shall be levied if a tax on their purchase is payable under this Act.
4. (4) Every dealer who has become liable to pay tax under this Act shall continue to be so liable until the expiry of three consecutive years during each of which his gross turnover has failed to exceed the taxable quantum and such further period after the date of such expiry as may be prescribed, and on the expiry of his later period his liability to pay tax shall cease.
5. (5) Every dealer, whose liability to pay tax has ceased under the provisions of sub-section (4), shall again be liable to pay tax under this Act with effect from the date on which his gross turnover first exceeds the taxable quantum.
6. (6) In this Act, the expression "taxable quantum" means.-
   • (a) in relation to any dealer who imports for sale or use in manufacturing or processing any goods in Himachal Pradesh, nil;
   • (b) in relation to any dealer, who himself manufactures or produces any goods for sale, 40,000 rupees;
   • (c) in relation to any dealer who runs a hotel, restaurant, bakery or other similar establishment wherein food preparations including tea, are served, 1,00,000 rupees;
   • (d) in relation to any particular classes of dealers not falling within clause (a),
   • (b) and/or (c), such sum as may be prescribed; or
   • (e) in relation to any other dealer, 3,00,000 rupees: Provided that the registration of dealers already registered under this clause shall not be cancelled until their turnover in each of three consecutive years does not entitle them to cancellation under clause (b) of sub-section (6) of section 8.

Liability of a dealer registered under Parliament Act No 74 of 1956 to pay tax .- A dealer registered under the Central Sales Tax Act, 1956 who is not liable to pay tax under section 4 shall nevertheless be liable to pay tax under this Act on any sale or purchase made by him inside the State of Himachal Pradesh: Provided that nothing herein shall apply to a dealer who deals exclusively in goods declared tax free under section 7.

A. Levy of purchase tax on certain goods .- Where a dealer who is liable to pay tax under this Act purchases any goods other than those specified in Schedule "B" from any source, and-

1. (i) uses them within the State in the manufacture of goods specified in Schedule "B", or
2. (ii) uses them within the State in the manufacture of goods, other than those specified in Schedule "B", and sends the goods so manufactured outside the state in any manner otherwise than by way of sale in the course of inter-State trade or commerce or in the course of export out of this territory of India, or
3. (iii) uses such goods for a purpose other than that of resale within the State or sale in the course of inter-State trade or commerce or in the course of export out of the territory of India, or
4. (iv) sends them outside the State in any manner otherwise than by way of sale in the course of inter-State trade or commerce or in the course of export out of the territory of India, and no tax is payable on the purchase of such goods under any other provisions of this Act, there shall be levied a tax on the purchase of such goods equal to the rate as notified, under sub-section (1) of section 6, by the State Government.

Rate of tax .-

1. (I) subject to the provisions of this Act, there shall be levied on taxable turnover of a dealer a tax at such rates not exceeding 1[ten] paise in a rupee as the Government may, by notification, direct: Provided that a tax at such rate not exceeding 2[15] paise in a rupee, as may be so notified, may be levied on the sale of 3[goods as specified in Schedule 'A' 4[except on 5[items 25, 34 and 36] thereof on which a tax at the rate of 6[not exceeding 30 paise in a rupee shall be levied]. The Government, after giving by notification not less than thirty days notice of its intention so to do, may, by like notification, add to or delete from this Schedule, and thereupon this Schedule shall be deemed to have been amended accordingly: Provided further that the rate of tax in respect of all declared goods, shall, unless a lower rate is fixed by the Government, by notification, be the maximum rate specified in clause (a) of section 15 of the Central Sales Tax Act, 1956 '[XXXX]: Provided further that in the case of goods specified in Schedule 'C', the tax shall be leviable and payable on the purchase thereof.

1. (2) The Government may, by notification: direct that in respect of such goods, other than the goods specified in 2[Schedule "C"], and with effect from such date as may be specified in the notification the tax under sub-section (1) shall be levied at the first stage of the sale thereof and on the issue of such notification, the tax on such goods shall be levied accordingly: Provided that no sale of such goods at a subsequent stage shall be exempt from tax under this Act unless the dealer effecting the sale at such subsequent stage furnishes to the assessing authority in the prescribed form and manner a certificate duly filled in and signed by the registered dealer from whom the goods were purchased to the effect that the tax on such goods has been paid at the first stage. Explanation.- For the purposes of this sub-section, the first stage of sale in respect of any goods and m relation to any class of dealers shall be such as may be specified by the Government in the notification.
2. (3) In this Act, the expression "taxable turnover" means that part of dealer's gross turnover during any period which remains after deducting therefrom-
   • (a) his turnover during that period on-
     • (i) the sale of goods declared tax free under section 7;
     • (ii) sale to a registered dealer of goods, liable to tax at the last stage of sale in Himachal Pradesh, other than
   • (a) the sale of goods specified in schedule "C' or (b) the sale of goods liable to tax at the first stage of sale under sub-section (2), and the same is declared by him in a prescribed form as being intended for resale in the State of Himachal Pradesh or in the course of inter-State trade or commerce or sale in the course of export of goods out of the territory of India: Provided that, in the case of such sales, a declaration duly filled and signed by the registered dealer to whom the goods are sold, containing the prescribed particulars and inscribed on the bill or cash memorandum referred to in sub-section (2) of section 19 is furnished to the assessing authority by the dealer who sells the goods: Provided further that no dealer shall be entitled to make any deduction from his turnover in respect of a sale made by him to a registered dealer with whom composition under sub-section (2) of section 12 has been made and is in force;]
     • (iii) sales to any undertaking supplying electrical energy to the public under a licence or sanction granted or deemed to have been granted under the Indian Electricity Act, 1910 (Act No 9 of 1910), of goods for use by it in the generation or distribution of such energy: Provided that in the case of such sales, a declaration in such form and in such manner as may be prescribed, duly filled and signed by the authorised officer of such undertaking to whom the goods are sold is furnished to the Assessing Authority by the dealer who sells the goods;]
     • (iv) sales or purchases of goods falling under section 4 1 ;
     • (v) the purchase of goods,-
   • (a) which are specified in Schedule 'C' and are sold during the year to a registered dealer, or in the course of inter-State trade or commerce or in the course of export out of the territory of India; or
   • (b) which are referred to under section 14 of the Central Sales Tax Act, 1956, and are sold during the year in the course of inter-State trade or commerce or in the course of export out of the territory of India: Provided that in the case of a sale referred to in sub-paragraph (a) to a registered dealer, a declaration in the prescribed format duly filled and signed by the registered dealer, to whom the goods are sold is furnished by the dealer claiming deduction: Provided further that the purchase of goods referred to in sub-paragraph (b) remaining unsold within the period specified in that paragraph shall be deemed to be the purchase of the dealer claiming deduction during the year following; and
     • (vi) such other sales or purchases as may be prescribed; [XXXX] Explanation.- For the purposes of sub-clause (ii) 'the last stage of sale in Himachal Pradesh in respect of any goods means a stage of sale other than the first stage of sale' specified by the Government in the notification issued under sub-section (2) of section 6; and]
   • (b) the amount of sales tax included in the gross turnover.

A. Declaration and certificates to be filed alongwith returns .- Every dealer claiming,-

1. (i) any deduction from his gross turnover, or
2. (ii) any part of his taxable turnover to be a sale to Government, or
3. (iii) any part of the taxable turnover to be liable to tax at concessional rate of tax or to an exemption under section 42-B of this Act, shall furnish, alongwith return to be furnished under sub-section (3) of section 12, to the assessing authority, the declaration or the certificate as required under this Act

Tax free goods .-

1. (1) No tax shall be payable on the sale of goods specified in the first column of Schedule 'B', subject to the conditions and exceptions, if any, set out in the corresponding entry in the second column thereof and no dealer shall charge sales tax on the sale of goods which are declared tax free from time to time under this section.
2. (2) The Government, after giving by notification not less than thirty days notice of its intention so to do, may, by like notification, add to or delete from Schedule 'B' and thereupon Schedule 'B' shall be deemed to be amended accordingly.

Registration of dealers .-

1. (1) No dealer shall, while being liable to pay tax under this Act, carry on business as a dealer unless he has been registered and possesses a registration certificate [:I Provided that nothing herein shall apply to a dealer who deals exclusively in such goods on which tax has been proved to have been levied at the first stage of the sale thereof under sub-section (2) of section 6 and that such a dealer is not the first selling dealer in respect of those goods in the State of Himachal Pradesh: Provided further that the dealer referred to in the preceding proviso maintains proper accounts in respect of his business and possesses and furnishes to the Assessing Authority, the certificate referred to in sub-section (2) of section 6, in the prescribed manner, to the effect that the tax on the sales of such goods has been paid at the first stage of sale thereof.]
2. (2) Every dealer required by sub-section
3. (1) to be registered shall make application in this behalf in the prescribed manner to the prescribed authority.
4. (3) If the said authority is satisfied that an application for registration is in order, he shall, in accordance with such rules and on payment of such fees as may be prescribed, register the applicant and grant him a certificate of registration in the prescribed form which may specify the class or classes of goods for the purposes of sub-clause (ii) of clause (a) of sub-section (3) of section 6.
5. (4) The Commissioner or the prescribed authority may, from time to time, by order, amend, suspend or cancel any certificate of registration on-
   • (a) information furnished under section 25; or
   • (b) information received that the dealer has violated any provision of this Act or rules made thereunder; or
   • (c) any other sufficient clause including misuse of the certificate or cessation of liability to payment of tax under this Act: Provided that no order affecting any person adversely shall be made under this sub-section without affording him a reasonable opportunity of being heard.
6. (5) When any dealer has paid the amount of penalty imposed under section 35 in respect of any contravention of sub-section (1) of this section, the Commissioner or the prescribed authority shall register such dealer and grant him a certificate of registration and such registration shall take effect as if it had been made under sub-section (3) of this section on the dealer's application.
   • (a) any business in respect of which certificate has been granted upon application made under sub-section (1) has been discontinued or transferred. or
   • (b) the gross turnover of any such business has during each three consecutive years failed to exceed the taxable quantum, or
   • (c) the certificate of registration granted under the Central Sales Tax Act, 1956, to a dealer liable to pay tax by virtue of the provisions of section 5 but who is not otherwise liable to pay tax under section 4 has been cancelled, the Commissioner or the prescribed authority shall cancel the registration and the cancellation shall come into force after the expiry of such period as may be prescribed.

Voluntary registration.-(1) Any dealer except one dealing exclusively in goods declared tax free under section 7 whose gross turnover during a year exceeds 15,000 rupees may, notwithstanding that he may not be liable to pay tax under section 4, apply in the prescribed manner to the prescribed authority for registration under this Act.

1. (2) The provisions of sub-section (3) and (4) and clause (a) of sub-section (6) of section 8 shall apply in respect of applications for registration under this section.
2. (3) Every dealer who has been registered upon application made under this section shall, for so long as his registration remains in force, be liable to pay tax under this Act whether his gross turnover exceeds the taxable quantum or not.
3. (4) The registration, of a dealer upon application made under this section shall be in force for a period of not less than three complete years and shall remain in force thereafter unless cancelled under the provisions of this Act.
4. (5) Subject to the provisions of sub-section (4), a dealer registered upon application made under this section may apply in the prescribed manner not less than six months before the end of a year to the authority which granted him his certificate of registration for the cancellation of such registration to take effect at the end of the year in which the application for such cancellation is made; and the said authority shall, unless the dealer is liable to pay tax under section 4, cancel the registration accordingly.

Provisional registration.-(1) Any person intending to establish a business in the State of Himachal Pradesh for the purpose of manufacturing goods of a value exceeding ten thousand rupees a year for sale may, notwithstanding that he is not liable to registration under section 8, apply to the assessing authority in the prescribed form for provisional registration under this Act.

1. (2) If the assessing authority, after making such inquiry as it may consider necessary, is satisfied as to the bona fide intention of the person making the application, it may grant a provisional certificate of registration in the prescribed form and under such conditions as may be prescribed.
2. (3) Every person who has been granted a provisional certificate of registration under this section shall, for so long as such certificate is in force, be liable to pay tax under this Act: Provided that the assessing authority may, on application made in this behalf accompanied by a fee, not exceeding fifty rupees: as may be prescribed, for reasons to be recorded in writing, extend the period specified in the certificate of registration.
3. (4) A provisional certificate of registration granted under this section shall be in force for such period as may be specified therein or until a certificate under section 8 is granted and the provisions of sub-section (4) of section 8 shall, so far as may be, apply to any such provisional certificate of registration.
4. (5) If a person who has been granted a provisional certificate of registration under this section fails to establish the business within the period specified in the provisional certificate of registration or fails to comply with any of the conditions specified therein, he shall be liable, by order of the assessing authority, to pay a penalty equivalent to one half of the amount of tax which would have been payable by him in respect of all the purchases of goods made by him within the period specified in the certificate as if he had not been registered under this section.

Security from certain class of dealers.-(1) The Commissioner or any other person appointed to assist him under sub-section (1) of section 3, if it appears to him to be necessary so to do for the proper realisation of the tax levied under this Act, may, for reasons to be recorded in writing, impose as a condition of the issue of a certificate of registration to a dealer, or of the continuance in effect of such certificate issued to any dealer, a requirement that the dealer shall give security in the manner prescribed for such amount as may be specified in the order.

1. (2) No dealer shall be required to furnish security under sub-section (1), unless he has been given an opportunity of being heard and the security that may be required to be furnished by any dealer under the aforesaid sub-section shall be to the satisfaction of the authority prescribed in sub-section (1).
2. (3) Where the security furnished by a dealer under sub-section (1) is in the form of a surety bond and the surety becomes insolvent or is otherwise incapacitated or dies or withdraws, the dealer shall, within fifteen days of the occurrence of any of the aforesaid events, inform the authority granting the certificate of registration and shall within thirty days of such occurrence furnish a fresh surety bond.
3. (4) The authority granting the certificate of registration may, by an order in writing, for good and sufficient cause, forfeit the whole or any part of the security furnished by a dealer for realising any amount of tax or penalty payable by a dealer: Provided that no order shall be passed under this sub-section without giving the dealer and the surety a reasonable opportunity of being heard.
4. (5) where by reason of an order under sub-section (4), the security furnished by any dealer is rendered insufficient, he shall make up the deficiency in such manner and within such time as may be prescribed.
5. (6) The authority granting a certificate of registration may, on application by the dealer, order the refund of security furnished by him or any part thereof, if the same is not required for the purposes of this Act.

1. (1) Tax payable under the Act shall be paid in, the manner hereinafter provided at such intervals as may be prescribed.
2. (2) The Commissioner may, in the public interest and subject to such conditions as he may deem fit, accept from any class of dealers, in lieu of the amount of the tax payable under this Act for any period, by way of composition, a lump sum to be determined and to be paid at such intervals and in such manner as may be prescribed, and thereupon, during the period such composition remains in force, the provisions of this Act and the rules made thereunder relating to the filing of returns and the maintenance of accounts by such dealers shall not apply to them.
3. (3) Such dealers as may be required so to do by the assessing authority by notice served in the prescribed manner and every registered dealer shall furnish such returns by such dates and to such authority as may be prescribed.
4. (4) Before a registered dealer furnishes the return required by sub-section (3), he shall, in the prescribed manner, pay into a Government Treasury or the Reserve Bank of India, or at the office of the Assistant Excise and Taxation Commissioner or Excise and Taxation Officer-in-charge of the District, the full amount of tax due from him under the Act according to such returns and shall furnish along with the returns a receipt from such treasury, bank or office of the Assistant Excise and Taxation Commissioner or Excise and Taxation Officer-in-charge of the District showing the payment of such amount. Provided that no payment of such amount shall be accepted at the office of the Assistant Excise and Taxation Commissioner or Excise and Taxation Officer-in-Charge of the District save through a crossed cheque or bank draft payable at a local branch of a Scheduled Bank in favour of the assessing authority: Provided further that where the payment is made through a crossed cheque, such crossed cheque must be delivered in the office of the assessing authority concerned not less than ten clear days before the expiry of the due date prescribed under sub-section (3) for filing the return, and the dealer shall be deemed to have made the payment on the date on which such crossed cheque, after its presentation in the bank, is actually credited into the Government account and necessary receipt is issued by the bank in favour of the dealer. Provided further that where the payment is made through a crossed cheque and the cheque is dishonoured, the dealer shall be deemed to have not made the payment and shall be liable to any action which may be taken for not making payment under the Act or the rules framed thereunder. Explanation.- For the purposes of this sub-section " Scheduled Bank" means a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934).
5. (5) If any dealer discovers any omission or other error in any return furnished by him, he may, at any time, before the date prescribed for the furnishing of the next return by him, furnish a revised return, and if the revised return shows a greater amount of tax to be due than was shown in the original return, it shall be accompanied by a receipt showing payment in the manner prescribed in sub-section (4) of extra amount.
6. (6) If a dealer fails without sufficient cause to comply with the requirements of the provisions of sub-section (3) or sub-section (4), the Commissioner or any person appointed to assist him under sub-section (1) of section 3 may, after giving such dealer a reasonable opportunity of being heard, direct him to pay, by way of penalty, a sum which shall not be less than ten per centum, but which shall not exceed one and half times of the amount of tax in which he is assessed or is liable to be assessed under section 14 in addition to the amount of tax to which he is assessed or is liable to be assessed, and where no tax is payable, a sum not exceeding one hundred rupees.
7. (7) If a dealer has maintained false or incorrect accounts with a view to suppressing his sales, purchases or stocks of goods, or has cancelled any particulars of his sales or purchases or has furnished to, or produced before, any authority under this Act or the rules made thereunder any account, return or information which is false or incorrect in any material particular, the Commissioner or any person appointed to assist him under sub-section (1) of section 3 may, after affording such dealer a reasonable opportunity of being heard, direct him to pay by way of penalty in addition to the tax to which he is assessed or is liable to be assessed, an amount which shall not be less than twenty-five per centum but which shall not exceed one and a half times of the amount of tax to which he is assessed or is liable to be assessed.

1. (1) Notwithstanding anything to the contrary contained in section 13, every person making any payment or discharge of any liability on account of valuable consideration payable for the transfer of property in goods, whether as goods or in some other form, involved in the execution of works contract shall deduct an amount not exceeding four per centum as may be prescribed, purporting to be a part or full of the tax payable on such sales, from the bills or invoices raised by the works contractor as payable by the persons: Provided that no such payment or discharge of any bill raised by the works contractor shall be made without deduction: Provided further that if the State Government is satisfied that it is necessary to do so in the interest of the State revenue, it may notify the names/posts of such persons who shall be competent persons to make such deduction.
2. (2) The deduction referred to in sub-section (1) shall be made in the manner which may be prescribed.
3. (3) The payment of such deduction into the Government treasury shall be the responsibility of the person making such deduction.
4. (4) The person making such deduction shall issue deduction certificate in the prescribed manner to the person or dealer from whose bill or invoice such deduction has been made.
5. (5) If any person contravenes any or all the provisions of sub-sections (1),
6. (3) and (4) the prescribed authority shall, after giving an opportunity of being heard, by an order, in writing, direct that such person shall pay by way of penalty, a sum not exceeding twice the amount of tax deductible under sub-section (1).
7. (6) The provisions of sections 16 and 16-A for recovery of any amount of tax due from a dealer shall mutatis mutandis apply for recovery of any amount of tax, deducted and/or any penalty imposed but not deposited under this section.

1. (1) No person shall collect any sum by way of tax in respect of sale or purchase of any goods on which no tax is payable under this Act.
2. (2) No person, who is not a registered dealer and liable to pay tax in respect of any sale or purchase, shall collect on the sale or purchase of any goods any sum by way of tax from any other person and no registered dealer shall collect any amount by way of tax in excess of the amount of tax payable by him under this Act.
3. (3) If any person, not being a dealer liable to pay tax under this Act, collects any sum by way of tax, or being a registered dealer collects any amount by way of tax in excess of the tax payable by him or otherwise collects tax in contravention of the provisions of sub-sections (1) and (2) he shall be liable to pay, in addition to any tax for which he may be liable, a penalty of an amount not exceeding five hundred rupees or double the amount so collected, whichever is greater.
4. (4) If the Commissioner, or any person appointed to assist him under sub-section (1) of section 3, in the course of any proceedings under this Act or otherwise, has reason to believe that any person has become liable to pay penalty under sub-section (3), he shall serve on such person a notice in the prescribed form requiring him to show cause why a penalty as provided in sub-section (3) should not be imposed on him.
5. (5) The Commissioner or any person appointed to assist him under sub-section (1) of section 3 shall thereupon hold an enquiry and shall make such order as he thinks fit.

Assessment of tax .-

1. (1) If the Assessing Authority is satisfied without requiring the presence of dealer or the production by him of any evidence that the returns furnished in respect of any period are correct and complete, he shall assess the amount of tax due from the dealer on the basis of such returns. (1-A) If the taxable turnover of a dealer registers an increase of fifteen percent or upwards over the turnover of the preceding year as determined under this section and fulfills such other conditions as the State Government may deem fit to prescribe in this behalf, the assessing authority may dispense with the presence of such dealer and the production of an evidence by him under sub-section (1).
2. (2) If the assessing authority is not satisfied without requiring the presence of dealer who furnished the returns or production of evidence that the returns furnished in respect of any period are correct and complete. he shall serve on such dealer a notice in the prescribed manner requiring him, on a date and at a place specified therein, either to attend in person or to produce or to cause to be produced any evidence on which such dealer may rely in support of such returns.
3. (3) On the day specified in the notice or as soon afterwards as may be. the assessing authority shall, after hearing such evidence as the dealer may produce, and such other evidence as the assessing authority may require on specified points, assess the amount of tax due from the dealer.
4. (4) If a dealer, having furnished returns in respect of a period. fails to comply with the terms of a notice issued under sub-section (2), the assessing authority shall, within five years after the expiry of such period, proceed to assess to the best of his judgement the amount of the tax due from the dealer.
5. (5) If a dealer does not furnish returns in respect of any period by the prescribed date, the assessing authority shall, within five years after the expiry of such period, after giving a dealer a reasonable opportunity of being heard, proceed to assess, to the best of his judgement, the amount of tax, if any, due from the dealer.
6. (6) If upon information which has come into his possession, the assessing authority is satisfied that any dealer has been liable to pay tax under this Act in respect of any period but has failed to apply for registration, the assessing authority shall, within five years after the expiry of such period, after giving the dealer a reasonable opportunity of being heard, proceed to assess, to the best of his judgement, the amount of tax, if any, due from the dealer in respect of such period and also all subsequent periods and in cases where such dealer has wilfully failed to apply for registration, the assessing authority may direct that the dealer shall pay by way of penalty in addition to the amount so assessed, a sum which shall not be less than fifteen per centum but which shall not exceed one and a half times that amount.
7. (7) The amount of any tax, penalty or interest payable under this Act shall be paid by the dealer in the manner prescribed by such date as may be specified in the notice issued by the assessing authority for the purpose and the date so specified shall not be less than fifteen days and not more than thirty days from the date of service of such notice: Provided that the assessing authority may, with the prior approval of the Excise and Taxation Officer-in-charge of the district extend the date of such payment, but not more than 90 days. or allow payment by monthly instalments not exceeding three against an adequate security or a bank.
8. (8) If the tax assessed under this Act or any interest thereof is not paid by any dealer within the time specified therefor in the notice of demand, or in the order permitting payment in instalments, the Commissioner or any person appointed to assist him under sub-section (1) of section 3 may, after giving such dealer an opportunity of being heard, impose a penalty not exceeding in amount the sum due from him.
9. (9) Any assessment made under this section shall be without prejudice to any penalty imposed under this Act.

Reassessment of tax .-

1. (1) If in consequence of definite information which has come into his possession, the assessing authority is satisfied that the whole or any part of the turnover of a dealer has, for any reason, escaped assessment to tax, the assessing authority may, subject to the provisions of sub-section (2), at any time within five years from the expiry of the year to which the tax relates, proceed to assess or reassess the amount of the tax due from the dealer.

B. Tax to be first charge on property .- Notwithstanding anything to the contrary contained in any law for the time being in force, any amount of tax and penalty including interest, if any, payable by a dealer or any other person under this Act shall be a first charge on the property of the dealer or such other person.

Period of limitation for completion of assessment or re-assessment not to apply to certain cases.-

1. (1) Notwithstanding the provisions relating to the period of limitation contained in section 14 or section 15 or in any other provision of this Act, assessment or re-assessment may be made at any time in consequence of, or to give effect to, any order made by any court or other authority under this Act.
2. (2) Where the assessment proceedings relating to any dealer remained stayed under the orders of any court or other authority for any period, such period shall be excluded in computing the period of limitation for assessment or re-assessment specified in section 14 or section 15 or in any other provision of this Act.

A. Payment of interest.-

1. (1) If any dealer fails to pay the amount of tax due from him under this Act except to the extent mentioned in sub-section (2), he shall, in addition to the amount of tax, be liable to pay simple interest on the amount of tax due and payable by him at the rate of one per centum per month, from the date immediately following the last date on which the dealer should have either filed the return or paid the tax under this Act, for a period of one month and thereafter at the rate of one and a half per centum per month till the default continues.
2. (2) If the amount of tax or penalty due from a dealer is not paid by him within the period specified in the notice of demand or, if no period is specified within thirty days from the service of such notice, the dealer shall, in addition to the amount of tax or penalty, be liable to pay simple interest on such amount at the rate of one per centum per month from the date immediately following the date on which the period specified in the notice or the period of thirty days, as the case may be, expires, for a period of one month and thereafter at the rate of one and a half per centum per month till the default continues: Provided that where the recovery of any tax or penalty is stayed by an order of any court, the amount of tax or penalty shall, after the order of stay is vacated, be recoverable alongwith interest at the aforesaid rate on the amount ultimately found to be due and such interest shall be payable from the date the tax or penalty first became due.
3. (3) The amount of interest payable under this section shall-
   • (i) be calculated by considering if part of a month is more than fifteen days as one month and any amount if more than fifty rupees but less than one hundred rupees as one hundred rupees;
   • (ii) for the purposes of collection and recovery, be deemed to be tax under this Act;
   • (iii) be in addition to the penalty, if any, imposed under this Act.

Refund .-(1) The assessing authority either suo-moto or on application shall in the prescribed manner refund to a registered dealer any amount of tax, interest or penalty paid by such dealer under this Act,-

1. (a) if the amount of tax, penalty or interest so paid is in excess of the amount due from him under this Act; or
2. (b) if the amount of tax so paid is in respect of the sale or purchase of any declared goods and such goods are sold in the course of inter-State trade or commerce; either by refund voucher or, at the option of the dealer, by adjustment of the amount so paid with the amount due from him, in respect of any other period: Provided that the refund under clause (b) shall be subject to such conditions, as may be prescribed: Provided further that no refund under this section shall be allowed unless the claim for refund is made within a period of three years from the date on which such claim accrues. Explanation.- For the purposes of this sub-section, the expression "in the course of inter-State trade or commerce", shall have the meaning assigned to it by section 3 of the Central Sales Tax Act, 1956 (Act No. 47 of 1956)

1. (2) Notwithstanding anything contained in sub-section (1), the assessing authority shall first adjust the amount to be refunded towards the recovery of any amount due from the dealer on the date of such adjustment, and shall thereafter refund the balance, if any.
2. (3) Where any amount required to be refunded by the assessing authority to any person by virtue of an order issued under this Act is not refunded to him within ninety days of the date of the order, the dealer shall be entitled to get simple interest on such amount at the rate of one per centum per month from the date immediately following the date of expiry of the said period for a period of one month and thereafter at the rate of one and a half per centum per month till the refund is made: Provided that for the purpose of calculation of the interest, if, part of a month exceeds fifteen days shall be considered as one month and any amount less than one hundred rupees but exceeds fifty rupees shall be considered as one hundred rupees.
3. (4) If the delay in allowing refund within the aforesaid period of ninety days is for reasons beyond the control of the assessing authority or attributable to the dealer, whether wholly or in part, the period of such delay shall be excluded from the period for which interest is payable.
4. (5) If any question arises whether any period is to be excluded for the purposes of calculation of interest under sub-section (4) the same shall be referred to the Commissioner or such other officer as the State Government may, by notification, appoint whose decision shall be final.
5. (6) Where an order allowing refund is the subject matter of any appeal or further proceeding, or where any other proceedings under this Act are pending, and the assessing authority is of the opinion that the refund is likely to adversely affect the recovery, the assessing authority may withhold the refund and refer the case to the Commissioner whose orders shall be final.
6. (7) The period during which the refund remains withheld under sub-section (6) shall be excluded for the purpose of calculation of interest under this section.

Accounts .-(1) Every registered dealer or other dealer on whom a notice has been served to furnish returns under sub-section (3) of section 12 shall keep a true account of the value of goods brought and sold by him, and if the assessing authority considers that such account is not sufficiently clear and intelligible to enable him to make a proper check of the returns referred to in that sub-section, he may require such dealer by notice in writing to keep such accounts including records of sales as he may, subject to anything that may be prescribed in that behalf in writing, direct.

1. (2) Every registered dealer shall,-
   • (a) in respect of goods, exceeding [twenty-five rupees] in value in any one transaction sold by him or on his behalf, issue to the person to whom they are sold, a cash memorandum or bill serially numbered bearing the name and address of dealer, the date of sale and the signature of such dealer or his servant, manager or agent and showing the particulars of goods so sold and price thereof and further showing the sales tax [and the purchase tax] involved: Provided that where any registered dealer sells goods to any other registered dealer and claims deduction under sub-clause(ii) of clause (a) of sub-section (3) of section 6, he shall, in respect of such sale, prepare a cash memorandum or bill in qua-duplicate and issue a copy thereof to the other registered dealer; and
   • (b) preserve a carbon copy of such cash memorandum or bill for a period of not less than five years from the date of issue thereof: Provided that the Government may, by notification, exempt any class of registered dealers from the provisions of this sub-section.
2. (3) Where any dealer contravenes the provisions of sub-section (1) or sub-section (2), the Commissioner or any person appointed to assist him under sub-section (1) of section 3 may, after affording such dealer a reasonable opportunity of being heard, impose upon him a penalty which may extend to five hundred rupees.

Production and inspection of books, documents and accounts.—(1) The Commissioner or any person appointed to assist him under sub-section (1) of section 3 may, for the purposes of this Act, require any dealer to produce before him the accounts, registers, documents or other evidence relating to his business.

1. (2) All such accounts, registers, documents and other evidence shall at all reasonable times be open to inspection by the Commissioner or any person appointed to assist him under sub-section (1) of section 3, and the Commissioner or such person may take or cause to be taken such copies or extracts of the said accounts, registers, documents or other evidence as may be necessary for the purposes of this Act.
2. (3) If the Commissioner or any person appointed to assist him under sub-section (1) of section 3 has reason to believe that a dealer is trying to evade the payment of tax or other dues under this Act, he may, for reasons to be recorded in writing, seize such accounts, registers, documents or other evidence as may be necessary and shall grant a receipt for the same and shall retain the same for so long as may be necessary for examination thereof or for a prosecution or for the purpose of any proceeding under this Act.

A. Power of survey.—(1) The Commissioner or any person appointed to assist him under sub-section (1) of section 3 may, for the purpose of this Act, enter any place where a dealer is liable to pay tax under this Act and carries on his business, or any other place where the dealer keeps his books of accounts, registers, and other documents or any other place where the dealer is expected to keep any goods, and may—

1. (a) verify or check the books of accounts, registers or other documents of the business;
2. (b) verify the quantitative stock of the goods found at such place;
3. (c) inspect the goods and other materials;
4. (d) record the statement of any person which may be useful for or relevant to any proceeding under this Act.

1. (2) Any officer exercising the powers under sub-section (1) shall, on demand, produce the authorisation in writing and shall not remove or cause to be removed any books of accounts, registers, or other documents from the place where they are kept, except for the purpose of taking copies or extracts thereof and providing a receipt for the same.

Assessee permitted to attend through authorised agent etc.—(1) Any assessee who is entitled or required to attend before any authority in connection with any proceedings under this Act, other than the proceedings of a criminal nature, may attend either in person or by an authorised agent.

1. (2) For the purpose of sub-section (1), an "authorised agent" means—
   • (a) a relative of the assessee;
   • (b) a person in the regular employment of the assessee;
   • (c) a legal practitioner;
   • (d) a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949); or
   • (e) a person registered as a sales tax practitioner in the prescribed manner.

Establishment of check-posts or barriers and inspection of goods in transit.

A Registration and submission of returns by carrier of goods,

agent of the transport company and booking agency.

Power to call for information from banking companies etc

Delegation of powers [Section text not available in the official gazette publication.]

Information to be furnished regarding change of business [Section text not available in the official gazette publication.]

Transfer of business [Section text not available in the official gazette publication.]

Liability to tax on stock in certain cases [Section text not available in the official gazette publication.]

Liability to tax of a partitioned Hindu family, dissolved firm etc [Section text not available in the official gazette publication.]

Liabilities of legal heirs to pay tax [Section text not available in the official gazette publication.]

Bar of certain proceedings [Section text not available in the official gazette publication.]

Appeal [Section text not available in the official gazette publication.]

Revision [Section text not available in the official gazette publication.]

A. Disposal of pending appeal and application etc.- Notwithstanding anything contained in sections 7, 8 and 9 of this Act, any appeal or application, under sections, 30, 31, 33 and 35 of the principal Act, pending immediately before the commencement of the Himachal Pradesh General Sales Tax (Amendment) Act, 1987, shall be disposed of in accordance with the provisions of the principal Act as if the provisions of sections 7, 8 and 9 of this Act had not been enacted.

Rectification of mistakes.-

1. (1) The Commissioner or the officer on whom powers of the Commissioner for the purposes of sub-section (1) of section 31 have been conferred by the State Government may, at any time within one year from the date of any order passed by him on an application made to him or of his own motion, rectify any mistake apparent from the record, and shall within a like period rectify any such mistake which has been brought to his notice by any person affected by such order: Provided that the Commissioner may entertain any application under this sub-section after expiry of the said period of one year, if he is satisfied that the applicant was prevented by sufficient cause from making the application in time: Provided further that no such rectification shall be made if it has the effect of enhancing the tax or reducing the amount of refund, unless the Commissioner has given notice in writing to such person of his intention to do so and has allowed such person a reasonable opportunity of being heard.
2. (2) Where any such rectification has the effect of enhancing or reducing the amount of tax or penalty, the Commissioner shall, in the prescribed manner, order the recovery of the amount due from, or as the case may be order the refund of the amount due to, such person.

Statement of case to High Court.-

1. (1) Within 60 days from the passing of an order under section 30 or 31 by the Financial Commissioner, affecting any liability of any dealer to pay tax under this Act, such dealer or the Commissioner may, by application in writing accompanied by a fee of one hundred rupees in case the application is made by dealer, require the Financial Commissioner to refer to the High Court any question of law arising out of such order.
2. (2) If, for reasons to be recorded in writing, the Financial Commissioner refuses to make such reference the applicant may, within 30 days of such refusal, either,-
   • (a) withdraw his application (and if he does so, the fee paid shall be refunded) ; or
   • (b) apply to the High Court against such refusal.
3. (3) If upon the receipt of an application under clause (b) of sub-section (2), the High Court is not satisfied of the correctness of the Financial Commissioner's decision, it may require the Financial Commissioner to state the case and refer it, and on the receipt of such requisition, the Financial Commissioner shall state and refer the case accordingly.
4. (4) If the High Court is not satisfied that the statements in case referred under this section are sufficient to enable it to determine the question raised thereby, it may refer the case back to the Financial Commissioner to make such additions thereto or alterations therein as the court may direct in that behalf.
5. (5) The High 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 on which such decision is founded and shall send to the Financial Commissioner a copy of such judgement under the seal of the Court and the signature of the Registrar, and the Financial Commissioner shall dispose of the case accordingly.
6. (6) Where a reference is made to the High Court under this section, the cost (including the disposal of the fee) shall be in the discretion of the Court.
7. (7) The payment of the amount, if any, of the tax due in accordance with the order of the Financial Commissioner, in respect of which an application has been made under sub-section (1), shall not be stayed pending the disposal of such application or any reference made in consequence thereof but if such amount is reduced as the result of such reference, the excess tax paid shall be refunded in accordance with the provisions of section 18.

Power of Commissioner and his assistants to take evidence on oath etc.- The Commissioner or any person appointed to assist him under sub-section (1) of section 3 shall, for the purposes of this Act, have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (5 of 1908) when trying a suit, in respect of the following matters, namely :-

1. (a) enforcing the attendance of any person and examining him on oath or affirmation;
2. (b) compelling the production of documents and impounding or detaining them;
3. (c) issuing commissions for the examination of witnesses;
4. (d) requiring or accepting proof of facts by affidavits;
5. (e) such other powers as may be prescribed; and any proceeding under this Act before the Commissioner or any person appointed to assist him under sub-section (1) of section 3 shall be deemed to be a "judicial proceeding" within the meaning of sections 193 and 228 and for the purposes of section 199 of the Indian Penal Code (45 of 1860).

A. Imposition of penalty in lieu of prosecution .- If any person specified in sub-section (1) of section 35 is guilty of an offence under that sub-section, any officer-in-charge of a check-post or barrier or any other officer not below the rank of an Excise and Taxation Officer appointed under sub-section (1) of section 3, or such other officer as the State Government may, by notification, appoint, within his jurisdiction, may, after affording to the person concerned a reasonable opportunity of being heard, by order, in writing, impose upon him by way of penalty,-

1. (a) in case of sale to him of the goods, if the sale had been a sale within this Act, a sum not exceeding one and a half times of the tax which would have been levied under this Act; or
2. (b) in case of non-taxable goods, a sum as may be calculated at the rate of ten paise in a rupee as if such goods were liable to tax; or
3. (c) in cases which do not fall either under clause (a) or clause (b), a sum not exceeding three thousand rupees for each offence: Provided that the penalty for offences under sub-section (7) of section 12 shall be imposed under the same sub-section: Provided further that no prosecution for an offence under sub-section (1) of section 35 shall be instituted in respect of the same facts on which a penalty has been imposed under this section or sub-section (7) of section 12.

B. Cognizance of offences .-

1. (1) No court shall take cognizance of any offence punishable under this Act or the rules made thereunder except with previous sanction of the Government or of such officer as may be authorized by a notification published in Official Gazette and no court inferior to that of a Magfstrate of the first class shall try any such offence.
2. (2) All offences punishable under sub-section (1) of section 35 of this Act shall be cognizable and bailable.

Indemnity.- No suit, prosecution.or other legal proceedings shall lie against any officer or servant of the Himachal Prpdesh Gavemenat for anything which is in good faith done or intended to be done mder this Act or the rules made thereunder.

A. Special provisions relating to deferred payment of tax by industrial units.-

1. (1) Notwithstanding anything contained in any other provisions of this Act, if the Government is of the opinion that with a view to provide incentives to the entrepreneurs setting up a new industrial units in the State for manufacturing goods for sale, it is necessary or expedient in the public interest so to do, it may, under a scheme notified in this behalf, under this Act, and subject to such restrictions and conditions as may be specified in such scheme, provide for deferred payment of tax payable under section 12 by such entrepreneur who is registered as a dealer under this Act.
2. (2) Subject to the provisions of sub-section (1), the entrepreneur referred therein, if eligible for grant of facility of deferred payment of tax under the scheme notified under sub-section (1), may make deferred payment of tax payable on the sale of goods manufactured by him. Explanation.- For the purpose of this sub-section the expression "new industrial units" shall also include "new tourism units" with effect from the 1st day of August, 1993.

B. Concessional rate of tax on certain raw material [processing and packing material] .- Notwithstanding anything contained in this Act, but subject to such restrictions and conditions as may be specified, the State Government may, if it is expedient in the public interest so to do, by notification exempt wholly or fix a concessional rate of tax, on the sale to an entrepreneur, of goods, specified in his [certificate of registration,-

1. (a) for use by him as raw material in the manufacture in Himachal Pradesh of any goods for sale therein or in the course of inter-State trade or commerce; and
2. (b) for use by him in the processing or packing of goods so manufactured for sale:] Provided that the tax on such sales shall be levied at full rates fixed under section 6 unless the dealer making the sale to such entrepreneur furnishes to the assessing authority in the prescribed form and manner a certificate duly filled in and signed by the eligible entrepreneur: Provided further that the State Government may, by notification, allow the transfer of [manufactured goods] in the course of inter-State trade or commerce, to such extent of the aggregate sales shown by the dealer in his returns for a financial year as may be specified in such notification, Provided also that the State Government may, for the purposes of the preceding proviso, issue notification retrospectively-
3. (a) allowing transfer of goods upto twenty-five percent with effect from the 17th day of August, 1992; and
4. (b) allowing transfer of [manufactured goods] upto one hundred percent with effect from 8th day of October, 1992]

C. Set off of tax in respect of tax paid good in certain circumstances.-

1. (1) Subject to such restrictions and conditions as may be prescribed, a set off, as provided in sub-section (2), shall be granted in such manner as may be prescribed, to a registered dealer in respect of tax paid goods in the circumstances mentioned in sub-section (2).
2. (2) When the registered dealer purchases any goods, which have suffered tax either under sub-section (2) of section 6 at full rates or under section 42 or section 42-B at the concessional rates, for use of such goods as raw-material in the manufacture in Himachal Pradesh of any goods for sale, he shall be entitled to a set off of tax equal to the difference between the aggregate liability on the sale of final product minus to the amount of tax already paid by the selling dealer.

D. Penalty for utilization of goods for other purposes.- Where any goods purchased by a registered dealer either under sub-section (1) of section 42 or [XXXXXXX] section 42-B, at concessional rates, for use by him in the manufacture of any goods in Himachal Pradesh, other than goods declared tax free under section 7,-

1. (a) for sale in the State of Himachal Pradesh;
2. (b) for sale in the course of inter-state trade or commerce; are utilised by him for any purpose other than those specified in clause (a) or (b), such dealer shall be liable to pay as penalty, such amount not less than the difference between the amount of tax on the sale of such goods at the full rate applicable thereto under section 6 and the amount of tax payable under sub-section (1) of section 42, or [XXXXXXXXXX] section 42-B, but not exceeding one and a half times the amount of tax payable at such full rate, as any officer appointed under sub-section (1) of section 3 may, by order, impose: Provided that no order imposing such penalty shall be passed under this section unless such dealer has been given a reasonable opportunity of being heard.

Powers to amend Schedule 'C' [XXXXXXXXXXXXX] .- The Government, after giving by notification not less than 30 days notice of its intention so to do, may, by notification, add to or delete from, or otherwise amend Schedule 'C' [XXXXXXXX] and thereupon Schedule [XXXXXXX] shall be deemed to be amended accordingly.

Repeal .-

1. (1) The East Punjab General Sales Tax Act, 1948 (46 of 1948) as extended to the Union territory of Himachal Pradesh by Notification of the Government of India in the Ministry of Home Affairs No. G.S.R. 767(8/3/57-judl-11), dated the 30th August, 1958 and the Punjab General Sales Tax Act, 1948 (46 of 1948) as in force in the territories transferred to that Union territory under section 5 of the Punjab Re-organisation Act, 1966 (31 of 1966), are hereby repealed.
2. (2) The repeal of any of the enactments under sub-section (1) shall not affect:
   • (a) the previous operation of any such enactment, or
   • (b) any penalty, forfeiture or punishment incurred in respect of any offence committed against any such enactment, or
   • (c) any investigation, legal proceeding or remedy in respect of any such penalty, forfeiture or punishment; and any such investigation, legal proceeding or remedy may be instituted continued or enforced and any such penalty, forfeiture or punishment may be imposed as if this Act had not been passed.
3. (3) Subject to the provisions of sub-section (2), anything done or any action taken. including rules, notifications and orders made, instructions or directions issued or rights acquired and liabilities incurred under any of the enactments repealed under sub-section (1), shall-
   • (a) be deemed to have been respectively done, taken, made, issued, acquired and incurred under the corresponding provisions of this Act; and
   • (b) continue in force unless and until directed otherwise or superseded by anything done or any action taken under this enactment by the State Government or other competent authority.

18 16. Tax and penalty recoverable as arrears of land revenue.- The amount of any tax and penalty imposed or interest payable under this Act, which remains unpaid aft

16. Tax and penalty recoverable as arrears of land revenue.- The amount of any tax and penalty imposed or interest payable under this Act, which remains unpaid aft