Chapter IV REGISTRATION, AUTHORIZATION, RECOGNITION AND PERMIT

1. (1) No dealer shall, while being liable to pay tax under section 3 or under sub-section (6) of section 30, carry on business as a dealer, unless he possesses a valid certificate of registration as provided by this Act : Provided that, the provisions of this sub-section shall not be deemed to have been contravened, during the period from the date of application for registration in this section provided, within the prescribed time or, as the case may be, within the period specified in sub-section (6) of section 30 till the date of the grant of registration certificate.
2. (2) Every dealer, required by sub-section (1) to possess a certificate of registration, shall apply in the prescribed manner, to the prescribed authority.
3. (3) On receipt of application, the prescribed authority may conduct such enquiry as it deems fit and may also call for such evidence and information as may be necessary and if the said authority is satisfied after considering the evidence and information that an application for registration is in order, it shall register the applicant and issue to him a certificate of registration in the prescribed form and such registration certificate shall be exhibited in the manner prescribed in this behalf.
4. (4) When the prescribed authority is satisfied that the particulars contained in the application are not correct and complete, or that the information called for is not furnished, he shall reject the application for registration for reasons to be recorded in writing : Provided that, no application shall be rejected under this sub-section unless the applicant is given a reasonable opportunity of being heard.
5. (5) The prescribed authority may, on its own motion, for reasons to be recorded in writing, or after considering any information furnished under any provisions of this Act or otherwise received by it, amend, from time to time, any certificate of registration: Provided that, no such amendment which will adversely affect any person shall be made unless such person is given a reasonable opportunity of being heard.
6. (6) If any person upon an application made by him has been registered as a dealer under this section, and thereafter it is found that he ought not to have been so registered under the provisions of this section, he shall be liable to pay tax on his sales or purchases made from the date on which his registration certificate took effect until it is cancelled notwithstanding whether he is a dealer or not or is a dealer not liable to pay tax under section 3 or sub-section (6) of section 30.
7. (7) Where—
   • (a) any business, in respect of which a certificate of registration has been issued under this section, has been discontinued, or has been transferred or otherwise disposed of, or
   • (b) neither the turnover of sales nor the turnover of purchases of a Registered dealer has during any year exceeded the relevant limit specified in sub-section (4) of section 3, and the dealer applies in the prescribed manner for cancellation of his registration the prescribed authority shall cancel the registration with effect from such date as it may fix in accordance with the rules : Provided that, where the Commissioner is satisfied that any business in respect of which a certificate has been issued under this section has been discontinued or transferred or disposed of and the dealer has failed to apply as aforesaid for cancellation of registration, the Commissioner may, after giving the dealer a reasonable opportunity of being heard, cancel the registration with effect from such date (which shall not be earlier than five years from the date of order of cancellation) as he may fix to be the date from which the business has been discontinued or transferred or disposed of, as the case may be; and thereupon such dealer shall surrender the certificate of registration to the Commissioner within 7 days from the date of receipt of the order by him. The order of such cancellation shall be published in the prescribed manner: Provided further that, for the purposes of this Act, such dealer shall not be deemed to be a Registered dealer under this Act with effect from the date of cancellation so fixed : Provided also that, the cancellation of a certificate of registration on an application of the dealer or otherwise, shall not affect the liability of the dealer to pay the tax (including any interest, amount forfeited and penalty) due for any period prior to the date of cancellation and the interest due on such tax upto the date of payment thereof, whether such tax (including any interest, amount forfeited and penalty) is assessed before the date of cancellation but remains unpaid, or is assessed thereafter. (8)
   • (a) The Commissioner shall, after such date as may be notified by the State Government by an order published in the Official Gazette, prepare a list of all the Registered dealers within such period as may be specified in such order. Such list shall contain such particulars and shall be maintained in such manner as may be prescribed.
   • (b) Any Registered dealer may make an application in the prescribed form, accompanied by the prescribed fees, for a certified copy of any extract from such list to the Commissioner who shall furnish such copy to the Registered dealer by post or hand delivery.

Where, during the previous or current year, the turnover of a registered dealer of goods—

1. (a) which are exported by him from the State outside the territory of India,
2. (b) which are sold by him in the course of inter-State trade or commerce, and
3. (c) which are despatched by him from the State to any place in India outside the State, exceeds Rs. 60,000 he may apply for an Authorisation to the Commissioner. Subject to the provisions of section 38 the Commissioner shall, if the Registered dealer satisfies such further requirements (including the furnishing of adequate security) as may be prescribed, issue to him an Authorization in such form and subject to such conditions, as may be prescribed. Explanation.—Where a Registered dealer has, during the year commencing on the first day of April 1978, been a dealer registered under an earlier law, and the turnover of sales made during that year of goods which are sold in the course of inter-State trade or commerce from the State or which are exported by him from the State to a place outside the territory of India or which are despatched by him from the State to any place in India outside the State had exceeded Rs. 60,000, he may also apply under this section for an Authorization to the Commissioner, and the Commissioner shall issue to him an Authorization in the manner aforesaid.

Where during the previous or current year, the value of taxable goods manufactured by a Registered dealer for sale by him exceeds Rs. 5,000 he may apply for Recognition to the Commissioner. Subject to the provisions of section 38, the Commissioner shall, in respect of any goods specified in Part II of Schedule C required by the dealer for use within the State in the manufacture of taxable goods for sale by him or in the packing of goods so manufactured, if the dealer satisfies such further requirements (including the furnishing of adequate security) as may be prescribed, issue to him a Recognition in such form and on such conditions, as may be prescribed;

Explanation.—Where a Registered dealer has during the year commencing on the first day of April 1978 been a dealer registered under an earlier law, and the value of all taxable goods manufactured by him during that year exceeded Rs. 5,000, he may also apply under this section for Recognition to the Commissioner, and the Commissioner shall issue to him a Recognition in the manner aforesaid.

A Registered dealer, who bona fide buys or sells for an agreed commission any goods on behalf of a principal mentioned in his account in respect of each transaction and whose turnover

The Commissioner may, after giving reasonable opportunity of being heard, refuse to grant Authorization, Recognition or, as the case may be, Permit to a dealer under any of the following circumstances, that is to say,—

1. (a) if any Authorization, Recognition or, as the case may be, a Permit previously granted under this Act to such dealer has been cancelled in the circumstances other than those referred to in sub-section (1) of section 39;
2. (b) during any period of suspension of the dealer’s Authorization, Recognition or, as the case may be, Permit;
3. (c) if the dealer—
   • (i) has failed to pay any tax (including any interest and penalty) due from him by or under any provision of this Act, or any earlier law; or
   • (ii) has failed, without sufficient cause, to furnish any returns required to be furnished by or under the provisions of this Act (other than the provisions of section 73), or any earlier law; or
   • (iii) is an undischarged insolvent, or
   • (iv) has been convicted of an offence under this Act or any earlier law;
4. (d) if a dealer is a firm, and any partner thereof is a person—
   • (i) whose Authorization, Recognition or Permit, as the case may be, has been cancelled in the circumstances referred to in clause (a), or
   • (ii) to whom an Authorization, Recognition or Permit, as the case may be, was previously refused in the circumstances referred to in clause (c);
5. (e) if the Commissioner has reason to believe that the grant of such Authorization, Recognition or Permit, as the case may be, to a dealer under this Act is likely to be prejudicial to the interest of the revenue.

Cancellation or suspension of Authorization etc.

1. (1) If—
   • (a) the registration of an Authorised dealer, Recognised dealer or Commission agent holding a Permit, is cancelled; or
   • (b) in any year,—
     • (i) the turnover of sales of an Authorised dealer or, as the case may be, the turnover of purchases of a Commission agent holding a permit fails to exceed the amount requisite for the grant of Authorization or Permit, or
     • (ii) the value of taxable goods manufactured by a recognised dealer for sale by him fails to exceed the amount requisite for the grant of a Recognition or;
   • (c) the Authorised dealer, Recognised dealer or Commission agent holding a Permit, does not wish to continue to have an Authorization, Recognition or Permit, then in the circumstances stated—
     • (i) in clause (a), the dealer shall forthwith,
     • (ii) in clause (b), the dealer shall within fifteen days from the end of such year,
     • (iii) in clause (c), the dealer may at any time, surrender his Authorization, Recognition or Permit to the Commissioner for cancellation, and the Commissioner shall cancel the Authorization, Recognition or, as the case may be, the Permit, and accordingly in the circumstances stated in clause (a) the Authorization, Recognition or Permit shall stand cancelled from the date of cancellation of the registration, and in any other case it shall cease to have effect from the date on which it is surrendered for cancellation.
2. (2) If any Authorised dealer, Recognised dealer or Commission agent holding a Permit—
   • (a) fails to pay any tax (including any interest, amount forfeited and penalty) due from him under any provisions of this Act, or of any earlier law,
   • (b) contravenes or has contravened any provisions of this Act or any condition of his Authorization, Recognition or Permit, or
   • (c) becomes an insolvent, or
   • (d) has been convicted of an offence under this Act or any earlier law, or
   • (e) if the Commissioner has reason to believe that the continuance of the Authorization, Recognition or Permit, as the case may be, granted to a dealer under this Act is likely to be prejudicial to the interest of the revenue, the Commissioner may, after giving the Authorised dealer, Recognised dealer or, as the case may be, the Commission agent, a reasonable opportunity of being heard, suspend the Authorization, Recognition or, as the case may be, the Permit, for such period as he thinks fit, or cancel it. Thereupon, in either case, such dealer shall, within 7 days of receipt by him of the order of suspension or cancellation surrender the Authorisation, Recognition or Permit, as the case may be, to the Commissioner.

Non-transferability of Registration, Authorization etc. Save as otherwise provided in section 42, a certificate of Registration, Authorization, Recognition or Permit granted to a dealer and a certificate granted under section 59 to any person shall be personal to the dealer or person to whom it is granted, and shall not be transferable.

1. (1) If any dealer or person liable to pay tax under this Act—
   • (a) transfers or otherwise disposes of his business or any part thereof, or effects or knows of any other change in the ownership of the business, or
   • (b) discontinues his business, or changes place thereof or opens a new place of business including a godown or a warehouse or any place where he stores his goods, or
   • (c) changes the name or nature of his business, or the classes of goods in which he has dealings, or
   • (d) being a manufacturer, effects any change in the classes of goods manufactured by him, or
   • (e) enters into a partnership or other association in regard to his business, or
   • (f) applies for insolvency or liquidation or has an application made against him for insolvency or liquidation, as the case may be, he shall within the prescribed time, inform the prescribed authority accordingly.
2. (2) Where any dealer liable to pay tax under this Act—
   • (a) dies, his executor, administrator or legal representative, or
   • (b) where he is a firm, a Hindu undivided family or an association of persons and there is a change in the constitution of such firm, Hindu

Certificate of registration, etc. to continue in certain circumstances. Where a Registered dealer—

1. (a) effects change in the name of his business, or
2. (b) is a firm, and there is change in the constitution of the firm without dissolution thereof, or
3. (c) is a trustee of a trust, and there is change in the trustees thereof, or
4. (d) is a guardia of a nward, and there is a change in the guardian or termination of guardianship, then, merely by reason of any of the circumstances aforesaid, it shall not be necessary for the dealer, or the firm with the changed constitution, or the new trustees, or the new guardian or the ward whose guardianship has so terminated to apply for a fresh certificate of registration and on information being furnished in the manner required by section 41, the certificate of registration shall be amended; and any Authorization, Recognition or Permit granted to the Registered dealer prior to any such change as is mentioned aforesaid shall, subject to the provisions of section 39, also continue to be valid, as also any declaration given under section 10, 12 or 13.

1. (1) Every Registered dealer shall furnish such returns, in such forms, for such periods, by such dates, and to such authority, through such agency, if any, as may be prescribed : Provided that, the Commissioner may, subject to such terms and conditions as may be prescribed, exempt any such dealer from furnishing such returns or permit any such dealer—
   • (a) to furnish them for such different period, or
   • (b) to furnish a consolidated return relating to all or any of the places of business of the dealer in the State for the said period, or for such different period, to such authority, through such agency, if any, as he may direct.
2. (2) If the Commissioner has reason to believe—
   • (a) that the turnover of sales or the turnover of purchases of any dealer is likely to exceed the relevant limits specified in sub-section (4) of section 3 for liability to pay tax, or
   • (b) that either the turnover of sales or the turnover of purchases of any dealer has during any year exceeded—
     • (i) Rs. 15,000 in the case of a dealer who is an importer or manufacturer, or
     • (ii) Rs. 50,000 in the case of any other dealer, he may, by notice served in the prescribed manner, require such dealer to furnish returns as if he were a Registered dealer; but no tax will be payable by such dealer, unless his turnover exceeds the relevant limits specified in sub-section (4) of section 3, nor otherwise than in accordance with the other provisions of this Act.
3. (3) If any dealer having furnished returns under sub-section (1) or (2), discovers any omission or incorrect statement therein

1. (1) The amount of tax due from a dealer liable to pay tax shall be assessed separately for each year during which he is so liable: Provided that, the Commissioner may, for reasons to be recorded in writing, assess the tax due from any dealer during a part of a year: Provided further that, when a Registered dealer fails to furnish any return relating to any period of any year, by the prescribed date, the Commissioner may, if he thinks fit, assess the tax due-from such dealer separately for different parts of such year.
2. (2) If the Commissioner is satisfied that the returns furnished by a Registered dealer 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.
3. (3) If the Commissioner is not satisfied that the returns furnished by a Registered dealer by the prescribed date in respect of any period are correct and complete, and he thinks it necessary to require the presence of the dealer or the production of further evidence, he shall serve on such dealer in the prescribed manner a notice requiring him on a date and at a place specified therein, either to attend and produce or cause to be produced all evidence on which such dealer relies in support of his returns, or to produce such evidence as may be called for by the Commissioner. On the date specified in the notice, or as soon as maybe thereafter, the Commissioner shall, after considering all the evidence which may be produced, assess the amount of tax due from the dealer.
4. (4) If a Registered dealer fails to comply with the terms of any notice issued under sub-section (3), the Commissioner shall assess, to the best of his judgement, the amount of tax due from him.
5. (5) If a Registered dealer does not furnish returns in respect of any period by the prescribed date, the Commissioner shall, at any time within five years from the end of the year in which such period occurs, 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 him for such year.
6. (6) If the Commissioner has reason to believe that a dealer is liable to pay tax in respect of any period, but has failed to apply for registration or failed to apply for registration within the prescribed time or failed to obtain registration as required by section 34, the Commissioner shall, at any time within eight years from the end of the year in which such period occurs, proceed to assess, to the best of his judgement, the amount of tax (if any) due from the dealer in respect of that period, and any period or periods subsequent thereto. No order under this sub-section shall be passed without giving the dealer a reasonable opportunity of being heard.
7. (7) Where the Commissioner is not satisfied about the correctness or the completeness of the accounts of a dealer, or where no method of accounting has been regularly

Applicability of all the provisions of this Act or earlier law to person liable to pay tax under section 30.

45. Where in respect of any tax (including any interest, amount forfeited and penalty) due from a dealer under this Act or under any earlier law, any other person is liable for the payment thereof under section 30, all the relevant provisions of this Act or, as the case may be, of the earlier law, shall in respect of such liability apply to, such person also, as if he were the dealer himself.

1. (1) If, after a dealer has been assessed under section 44, for any year or part thereof, the Commissioner has reason to believe that any turnover of sales or turnover of purchases of any goods has in respect of that year or part thereof escaped assessment, or has been under-assessed or assessed at a lower rate, or that any deduction has been wrongly made or any draw-back, set-off, refund or reimbursement has been wrongly granted, then the Commissioner may,—
   • (a) where he has reason to believe that the dealer has concealed such sales or purchases or any material particulars relating thereto or has knowingly furnished incorrect returns or has made a false claim for deduction, draw-back, set-off, refund or reimbursement, at any time within eight years, and
   • (b) in any other case at any time within five years, of the end of that year, may proceed to assess or reassess, to the best of his judgment, the amount of tax due from such dealer: Provided that, no order shall be passed under this section without giving the dealer a reasonable opportunity of being heard : Provided further that, the amount of tax shall be assessed at the rates at which it would have been assessed had there been no under assessment or escapement, but after making deductions, (if any), permitted from time to time by or under this Act : Provided also that, where in respect of such sales or purchases the rate of tax at which such transactions have been assessed or the deductions of such transactions from the total turnover for computing the taxable turnover or the draw-back, set-off, refund or reimbursement, in respect of such transactions, as the case may be, was in dispute before the appellate or revising authority and an order has already been passed in respect thereof in appeal or revision under this Act, then the Commissioner shall make a report to the appropriate appellate or revising authority under this Act, which shall thereupon after giving the dealer concerned a reasonable opportunity of being heard, pass such order as it deems fit.
2. (2) Nothing in sub-section (1) shall apply to any proceedings (including any notice issued) under section 79 or 85.
3. (3) Nothing in section 79 or 85 shall affect a proceeding under this section.

1. (1) Where the assessment under section 44, reassessment under section 46, revision under sub-section (1) of section 79 or rectification under section 85 involves a decision on a point which is concluded against the State by a judgment of the Tribunal or the High Court and the State has initiated appropriate proceedings against such judgement before a higher forum, the Commissioner may, after giving the dealer a reasonable opportunity of being heard and for reasons to be recorded in writing, keep the decision on such point in abeyance and proceed to complete the assessment, reassessment, revision or rectification under those respective sections in all other respects.
2. (2) The assessment, reassessment, revision or rectification in respect of the point kept in abeyance under sub-section (1) shall be completed under section 44, section 46, sub-section (1) of section 79 or section 85, as the case may be, within one year from the date of the judgment of the higher forum or within the time specified in those sections, whichever is later.

Where a dealer assessed or re-assessed under sub-section (4),

1. (5) or (6) of section 44 or under section 46 makes an application in the prescribed form to the Commissioner, within 30 days from the date of service of the order of assessment or re-assessment, for cancellation of such order, on the ground—
   • (i) that he did not receive notice of the date of hearing from the Commissioner for assessment or re-assessment under the aforesaid sections, or
   • (ii) that he did not get reasonable opportunity to comply with the requirements of such notice or that he was prevented by sufficient cause from so complying, then the Commissioner shall, if satisfied about the existence of such grounds, cancel such order and proceed to make a fresh assessment or re-assessment in accordance with the provisions of this Act : Provided that, no application shall be entertained under this section unless,—
   • (i) the dealer furnishes return or returns for the period of assessment or re-assessment (if not already furnished), and
   • (ii) the dealer declares that no appeal under section 77 has been preferred against such order on the aforesaid grounds and also undertakes not to prefer an appeal against such order on such grounds : Provided further that, if the Commissioner rejects such application by reason of the fact that he is not satisfied about the existence of the aforesaid grounds and the dealer prefers appeal or revision application against such rejection, then notwithstanding anything contained in the first proviso, the grounds of such appeal or revision may include all or any of the grounds which could have been included in an appeal or revision application against such order of assessment or re-assessment.

(1)

1. (a) Where any Registered dealer or any person has furnished returns, whether within the prescribed time or not, but has not paid the tax due as per the said returns either fully or partially, then he shall be liable to pay interest on the amount of tax due as per the returns at the rate of two per cent, per month from the date by which he was required to furnish the returns by or under the provisions of this Act, upto the date of payment ;
2. (b) where any Registered dealer or any person has furnished a revised return, whether within the prescribed time or not, which revised return shows that a larger amount of tax than already paid is payable and has not paid the tax due (either fully or partially), per the revised return, then such dealer or person shall be liable to pay interest also on the difference between the amount of tax due as per the revised return and that shown as payable in the original return, at the rate of two per cent per month from the expiry of three months next following the last date prescribed for furnishing the original return upto the date of payment;
3. (c) where any Registered dealer is required to pay tax without furnishing returns for any period by or under the provisions of this Act and such tax is not paid by the due date, then such dealer shall be liable to pay interest on such amount of tax at such rates and for such periods as provided in clause (a) of this sub-section, as if such dealer was required to furnish returns by such due date ;
4. (d) where any Registered dealer or any person required to furnish returns pays tax for any period without furnishing the returns, the tax so paid shall be divided proportionately amongst the periods for which he was required by or under the provisions of this Act to pay but has failed to pay the same and the amount so determined shall be deemed to be the amount of tax payable for such period and the dealer shall be liable to pay interest at two per cent. per month on the aforesaid amount from the date from which the tax was due for such period or under the provisions of this Act to the date of payment : Provided that, where any such dealer shows to the satisfaction of the Commissioner that the whole or any part of the amount of tax paid is attributable to any particular period, then he shall be liable to pay interest on such amount at two per cent per month from the date from which the tax for the said period was due and payable by or under the provisions of this Act to the date of payment ;
5. (e) where the liability to pay tax is quantified in respect of a dealer or any person,—
   • (i) who has failed to furnish returns for the whole of the period for which the tax is quantified;
   • (ii) who has failed to furnish returns for any part of the period for which the tax is quantified ; then, in respect of category (ii), the difference between the tax quantified and the tax shown as payable in the returns and in respect of category (i), the difference between the tax quantified and the tax paid, shall be divided proportionately amongst the periods for which he was required to furnish the returns by or under the provisions of this Act but has failed to furnish such returns, and the amount so determined shall be deemed to be the amount of tax payable for each period and the dealer shall be liable to pay interest at the rate of two per cent. per month on the aforesaid amount from the date by which he was required to furnish such returns upto the date of quantification : Provided that, where the Commissioner is satisfied that the whole or any part of the balance of tax found due or liability to pay tax quantified is attributable to any particular period, then the dealer shall be liable to pay interest on such amount at the rate of two per cent. per month from the date by which he was required to furnish the return for the said period by or under the provisions of this Act to the date of quantification ; Explanation.—The expression “liability to pay tax is quantified” in this clause means determination of the tax liability under section 44, 46, 47, 49 or 85 of this Act;
6. (f) the rate of interest payable under clauses (a),
7. (b) and (e) shall be at the reduced rate of one per cent. where the registered dealer or any person has admitted tax liability and where he is allowed to pay the admitted tax liability in instalments under the provisions of sub-section (5) of section 53 : Provided that, the reduced rate of one per cent. shall, in the case of grant of instalments, apply with effect from the date of receipt of application made by the dealer in this behalf : Provided further that, if such dealer or the person fails to make payment of any of the instalments or fails to abide by any of the conditions, if any, subject to which permission to pay the tax in instalments was granted, the rate of interest shall be two per cent. per month;
8. (g) the interest payable under clauses (a),
9. (b) and (c) of this sub-section shall not be charged for a period exceeding 36 months from the end of the year in respect of which the dealer or the person has failed to pay the tax.

1. (2) Where any amount of tax or amount forfeited is demanded from a dealer or a person as a result of an order passed in any proceedings under this Act (including the assessment, re-assessment, appeal, revision, rectification or otherwise) and such tax or amount forfeited is not paid by such dealer or person within the time as required by or under the provisions of this Act to pay, then he shall be liable to pay interest at the rate of two per cent. per month on the amount of tax or amount forfeited from the date of such order till the date of payment of such amount.
2. (3) The Commissioner may, subject to such conditions as may be prescribed, remit the whole or any part of the interest payable in respect of any period.

1. (1) Where any dealer or Commission agent purchases any taxable goods under a declaration given by him under section 12 or 13 and fails to comply with the conditions, recitals or undertakings of such declaration, then the Commissioner may, after giving such dealer or Commission agent a reasonable opportunity of being heard, by order in writing impose on him, in addition to any tax payable, a sum by way of penalty not exceeding twice the amount of tax : Provided that, no penalty under this sub-section shall be levied, if the dealer or the Commission agent has included the purchase price of such goods in the turn-over of purchases as required by sub-section (1) or (2) of section 20 and has paid the tax thereon.
2. (2) If any dealer has without reasonable cause,—
   • (a) failed to apply for registration as required by section 34; or
   • (b) failed to comply with any notice or communication in respect of the proceedings under section 44, 46, 71 or clause (a) of sub-section (1) of section 79, or
   • (c) failed to disclose any transaction of sale or purchase in the turnover of sales or purchases declared in the return or claimed inaccurate deduction or draw-back, set-off, refund or reimbursement in the return furnished or failed to disclose fully and truly all material facts necessary for the purpose of proper and correct quantification of the tax liability, then the Commissioner may, after giving the dealer a reasonable opportunity of being heard, by order in writing, impose upon the dealer by way of penalty (in addition to any tax found due) a sum not exceeding—
     • (i) in the case covered by clause (a), one and one-half times the amount of tax assessed;
     • (ii) in the case covered by clause (b), rupees two thousand, and
     • (iii) in the case covered by clause (c), one and one-half times the amount of tax sought to be evaded or one and one-half times of such draw-back, set-off, refund or reimbursement referred to in that clause.
3. (3) If any dealer contravenes the provisions of section 69, the Commissioner may, after giving such dealer an opportunity of being heard, direct him to pay by way of penalty a sum not exceeding ten per cent of the sale price in respect of which such contravention has occurred.
4. (4) If a dealer liable to pay tax under this Act, contravenes the provisions of sub-section (1) or (3) of section 70 or fails to comply with the directions issued under sub-section (2) of section 70, then the Commissioner may, after giving such dealer an opportunity of being heard, direct him to pay, in addition to any tax payable, a penalty of an amount not exceeding two thousand rupees. (5)
   • (a) If any dealer or person issues a false bill, cash memorandum, voucher, declaration, certificate or other document by reason of which any transaction of sale or purchase effected by any other dealer is not liable to be taxed or is liable to be taxed at a reduced rate, or
   • (b) if any dealer or person knowingly produces a false bill, cash memorandum, voucher, declaration, certificate or other document by reason of which any transaction of sale or purchase effected by him is not liable to be taxed or is liable to be taxed at a reduced rate, then the Commissioner may, after giving such dealer or person a reasonable opportunity of being heard, by order in writing impose on him, in addition to tax (if any) payable, by way of penalty a sum not exceeding double the amount of tax which, in the opinion of the Commissioner, would have been leviable on the sale or purchase referred to in clause (b) had such documents referred to in clauses (a) and (b) not been issued or produced, as the case may be. (6)
   • (a) If any dealer or other person collects any amount by way of tax or in lieu of tax in contravention of the provisions contained in section 24 or 68, the amount so collected shall, in addition to any tax for which he may be liable, be forfeited to the State Government by the Commissioner after giving such dealer or person a reasonable opportunity of being heard. When any order of forfeiture is made, the Commissioner shall publish or cause to be published a notice thereof for the information of the persons

1. (1) Where in any proceedings under section 44, 46 or 50 before any authority, the difference between the amount of tax and penalty proposed to be assessed or re-assessed or imposed and the amount of tax and penalty already paid or admitted as payable, exceeds the limits as may be prescribed, then such authority shall, in the first instance, serve a draft of the proposed order of assessment or re-assessment or penalty (hereafter in this section referred to as " the draft order ") on the dealer.
2. (2) On receipt of the draft order, the dealer may forward his objections, if any, to such authority, within 7 days of the receipt by him of the draft order or within such further period not exceeding 15 days as such authority may allow, on an application made to him in that behalf.
3. (3) If no objections are received within the period or the extended period aforesaid, or the dealer intimates to such authority the acceptance of the draft order, with or without any minor modifications, then, after taking into consideration the minor modifications, if any, it shall be lawful for such authority to complete the assessment or re-assessment on the basis of the draft order, within a period of three months from the date on which the period for sending objections expires.
4. (4) If the dealer raises any objections within the period aforesaid, such authority shall, as soon as possible, refer the proceedings with such objections to such higher authority, not below the rank of an Assistant Commissioner of Sales Tax, as may be prescribed.
5. (5) On such reference, such proceedings, notwithstanding anything contained in section 96, shall stand transferred to such higher authority. It shall be then lawful for such higher authority after giving the dealer a reasonable opportunity of being heard, to assess or re-assess the amount of tax or impose penalty, within a period of two years from the date of the transfer of such proceedings to him.
6. (6) The provisions of this section shall not apply in cases, where the proceedings under section 44, 46 or 50 are held before any authority of and above the rank of Assistant Commissioner of Sales Tax.

Power of Commissioner to issue directions in certain cases. 52. Notwithstanding anything contained in sub-section (10) of section 31, the Commissioner may, on his own motion or on a reference being made to him, call for and examine the record of any pending proceeding and if he considers that, having regard to the nature of the case or the amount of tax, interest, amount forfeited or penalty, as the case may be, involved or for any other reason, it is necessary or expedient so to do, the Commissioner may issue such directions as he thinks fit for the guidance of the said officer as to the lines on which an investigation connected with assessment, re-assessment or any other proceeding under the Act be made.

1. (1) Tax and interest shall be paid in the manner herein provided and at such intervals and by such dates as may be prescribed. (2)
   • (a) A Registered dealer furnishing returns as required by sub-section (1) of section 43 shall pay into such Government Treasury and in such manner as may be prescribed, the whole of the amount of tax due from him according to such return alongwith the amount of any interest payable by him under section 49. (b)
     • (i) Where any Registered dealer has not furnished a return as required by sub-section (1) of section 43, then the tax shown as payable by him in the return last furnished by him or in the return for the corresponding period of the previous year, whichever is more, shall provisionally be deemed to be the tax payable by the dealer for the period or periods for which the return has not been furnished;
     • (ii) Where, however, no returns for any earlier period referred to in sub-clause (i) have been furnished by the dealer, then the amount of tax payable by the dealer for such period shall be provisionally determined by the Commissioner to the best of his judgement; and such provisional liability shall remain in force till such provisional tax is paid or the return for such period is furnished or the dealer is assessed for the said period, whichever is earlier.
2. (3) A Registered dealer furnishing a revised return in accordance with sub-section (3) of section 43, which shows that a larger amount of tax than that already paid is payable, shall, before submitting such return, pay into Government Treasury the additional amount of tax due as per such return alongwith the amount of interest due under section 49. (4)
   • (a) The amount of tax—
     • (i) assessed or re-assessed for any period under section 44 or 46 less any sum already paid by the dealer in respect of such period,
     • (ii) due as per order passed under section 77 read with section 57(1)(a), or
     • (iii) due as per order passed under section 79 read with clause (a) of sub-section (1) of section 57,
   • (b) the amount of interest due under section 49, the amount of penalty levied or the amount forfeited under section 50,
   • (c) the amount of penalty (if any) imposed under sub-section (3) of section 75,
   • (d) the amount payable as per the order passed under section 80 by the Settlement Commission, and
   • (e) the amount due as per order passed under section 85 read with clause (a) of sub-section (1) of section 57, shall be paid by the dealer or the person liable therefor into a Government Treasury within 30 days from the date of service of the notice issued by the Commissioner for this purpose.
3. (5) The Commissioner may, on an application from any dealer or person, allow him to pay the amount of tax and interest, if any, due as per return and remaining unpaid or the amount for which a notice under sub-section (4) has been issued, by instalments, on such terms and conditions, as may be specified by him. The grant of such instalments shall be without prejudice to the liability of such dealer or person to pay interest under section 49. (6)
   • (i) The amount of tax where returns have been furnished without full payment thereof;
   • (ii) The amount of tax deemed to be payable under clause (b) of sub-section (2);
   • (iii) The amount of tax, interest and penalty and any other sum remaining unpaid after 30 days from the date of service of the notice for payment as provided in sub-section (4), and
   • (iv) any instalment not duly paid, shall be recoverable as an arrear of land revenue: Provided that, where recovery proceedings have been already started to recover as an arrear of land revenue any amount mentioned in clause (i) of this sub-section, then such proceedings shall, notwithstanding anything contained in sub-section (4), continue till such amount is fully paid. Explanation.—For the purposes of this section, "tax" includes lump sum by way of composition determined under the provisions of section 58.

1. (1) For the purposes of effecting recovery of the amount of tax, interest, penalty, and amount forfeited, due and recoverable from any dealer or other person by or under the provisions of this Act or under any earlier law, as arrears of land revenue,—
   • (i) the Commissioner of Sales Tax shall have and exercise all the powers and perform all the duties of the Commissioner under the Maharashtra Land Revenue Code, 1966;
   • (ii) the Additional Commissioners of Sales Tax shall have and exercise all the powers and perform all the duties of the Additional Commissioner under the said Code;
   • (iii) the Deputy Commissioners of Sales Tax shall have and exercise all the powers and perform all the duties of the Collector under the said Code;
   • (iv) the Assistant Commissioners of Sales Tax shall have and exercise all the powers (except the powers of arrest and confinement of a defaulter in a civil jail) and perform all the duties of the Assistant or Deputy Collector under the said Code;
   • (v) the Sales Tax Officers shall have and exercise all the powers (except the powers of confirmation of sale and arrest and confinement of a defaulter in a civil jail) and perform all the duties of the Tahsildar under the said Code.
2. (2) Every notice issued or order passed in exercise of the powers conferred by sub-section (1) shall, for the purposes of sections 76, 77, 78, 79, 84 and 85 be deemed to be a notice issued or an order passed under this Act.

The amount of tax, interest, penalty, composition money, or any other sum payable and the amount of draw-back, set-off, refund or reimbursement due under the provisions of this Act, shall be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise, then, if such part is fifty paise or more, it shall be increased to one rupee, and if such part is less than fifty paise, it shall be ignored:

Special mode of recovery

1. (1) Notwithstanding anything contained in any law or contract to the contrary, the Commissioner may, at any time or from time to time, by notice in writing, a copy of which shall be forwarded to the dealer at his last address known to the Commissioner, require—
   • (a) any person from whom any amount of money is due, or may become due to a dealer from whom any amount is due under the provisions of this Act, or
   • (b) any person who holds or may subsequently hold money for or on account of such dealer, to pay to the Commissioner, either forthwith upon the money becoming due to, or being held on behalf of, the dealer at or within the time specified in the notice (but not before the money becomes due or is held as aforesaid), so much of the money as is sufficient to pay the amount due by the dealer under this Act, or the whole of the money when it is equal to or less than that amount. Explanation.—For the purposes of this section, the amount of money due to a dealer from, or money held for or on account of a dealer by, any person, shall be calculated after deducting therefrom such claims (

1. (1) Where any notice of demand in respect of any tax or interest, amount forfeited or penalty (hereinafter in this section referred to as "Government dues") is served upon a dealer or the person liable therefor under sub-section (4) of section 53 and any appeal, revision application or other proceeding is filed or taken in respect of such Government dues, then—
   • (a) where such Government dues are

The Commissioner may, in such circumstances, and subject to such conditions, as may be prescribed, permit any dealer to pay in lieu of the amount of tax payable by him under the provisions of this Act in respect of any period, a lump sum, determined in the prescribed manner, by way of composition.

1. (1) Subject to such conditions as it may impose, the State Government may, if it is necessary so to do in the public interest, by notification in the *Official Gazette*, exempt any specified sale or purchase or class of sales or purchases from payment of the whole or any part of any tax payable under the provisions of this Act, and such exemption shall take effect from the date of the publication of the notification in the *Official Gazette*, or such other prospective or retrospective date as may be mentioned therein.
2. (2) Where under any notification issued under sub-section (1), any specified sales or class of sales are exempted from payment of the whole or any part of any tax subject to the production of a declaration required by the notification such declaration shall not be issued by any dealer or other person, unless he possesses a certificate issued by the Commissioner in this behalf. Every such dealer or person shall apply in the prescribed manner to the Commissioner, who may after making such inquiry as he deems fit issue a certificate in this behalf. The Commissioner may, after giving the dealer or person a reasonable opportunity of being heard, refuse to grant the certificate. The Commissioner may amend, modify, suspend or cancel the certificate already issued after giving the dealer or person a reasonable opportunity of being heard. Every dealer or person, holding a certificate issued by the Commissioner under this sub-section shall, for the purposes of section 44, 45, 46, 47, 48, 49, 50, 53, 56, 68, 69 or 70 be deemed to be a Registered dealer.
3. (3) Where any dealer or person holding a certificate issued by the Commissioner under sub-section (2) has purchased any goods under a declaration given by him under any of the notifications issued under this section and—
   • (a) the conditions subject to which such exemption was granted, or
   • (b) the recitals or the conditions of the declaration, are not complied with for any reason whatsoever, then such dealer or person shall be liable to pay purchase tax on the purchase price of the goods so purchased, and the purchase tax shall be levied at the rates set out against each of such goods in column 4 of Schedules B and C, notwithstanding that such dealer or person was not liable to pay tax under section 3, and accordingly the dealer or person who has become liable to pay purchase tax under this sub-section shall file a return in the prescribed form to the prescribed authority within the prescribed time and shall include the purchase price of such turnover in his return, and pay the tax in the prescribed manner. The tax due from any such dealer or person shall be assessed or reassessed under section 44 or 46, as the case may be : Provided that, the amount of tax (if any) paid by the dealer or such person to a Registered dealer on such purchases, on which he has become liable to pay purchase tax under this sub-section, shall be set off against the purchase tax so leviable.
4. (4) Notwithstanding anything contained in this section, the State Government may, by notification in the *Official Gazette*, dispense with the requirement of a certificate, in the case of any person or class of persons, subject to such conditions (if any) as may be specified in the notification.

Draw-back, set-off, refund etc.

60. The State Government may by rules provide, that—

1. (a) in such circumstances and subject to such conditions as may be specified in the rules, a draw-back, set-off, refund or reimbursement of the whole or any part of the tax—
   • (i) paid, levied or leviable at the rates specified in the Schedules under any earlier law in respect of any earlier sales or purchases of goods which are held in stock by a dealer on the appointed day, be granted to such dealer, or
   • (ii) paid, levied or leviable at the rates specified in the Schedules in respect of any earlier sales or purchases of goods under this Act or any earlier law, be granted to the purchasing dealer;
2. (b) for the purpose of the levy of tax under any of the provisions of this Act, the sale price or purchase price shall, in the case of any class of sales or purchases, be reduced to such extent, and in such manner, as may be prescribed.

1. (1) The Commissioner shall refund to a person the amount of tax, interest, amount forfeited and penalty (if any) paid by such person in excess of the amount due from him. The refund may be either by refund payment order in the prescribed form, or at the option of the person by deduction of such excess from the amount of tax and penalty due in respect of any other period : Provided that, the Commissioner shall first apply such excess towards the recovery of any amount due under this Act or any earlier law and shall then refund the balance (if any). Explanation.—The expression “amount due” shall include—
   • (i) any amount due as per return furnished under section 43, which has not been fully paid ;
   • (ii) any amount payable by a dealer under the provisions of clause (b) of sub-section (2) of section 53.
2. (2) Where any refund is due to any dealer according to the return furnished by him for any period, such refund may provisionally be adjusted by him against the tax due and payable as per the returns furnished under section 43 for any subsequent period of the same year.

Notwithstanding anything contained in this Act or in any other law for the time being in force, where any sum collected by a person by way of tax or in lieu of tax in contravention of section 24 or 68, is forfeited to the State Government under section 50 and is recovered from him, such payment or recovery shall discharge him of the liability to refund the sum to the person from whom it was collected. A refund of such sum or any part thereof can be claimed from Government by the person from whom it was realised by way of tax or in lieu of tax, provided that an application for such claim is made by him in writing in the prescribed form to the Commissioner, within three years from the date of the order of forfeiture. On receipt of any such application, the Commissioner shall hold such inquiry as he deems fit and if

Where any Declared goods are sold by a dealer in the course of inter-State trade or commerce and tax has been paid by him under the Central Sales Tax Act, 1956, in respect of the sale of such goods in the course of inter-State trade or commerce, and such dealer shows to the satisfaction of the

1. (1) Where an amount required to be refunded by the Commissioner to any person by virtue of an order issued under this Act is not so refunded to him within ninety days of the date of the receipt of the order by the Commissioner, the State Government shall, on application pay such person simple interest at twenty-four per cent. per annum on the said amount from the date immediately following the expiry of the period of ninety days to the date of the issue of refund payment order. Explanation.—If the delay in granting the refund within the period of ninety days aforesaid is attributable to the dealer, whether wholly or in part the period of the delay attributable to him shall be

Power to withhold refund in certain cases.

65.

1. (1) Where an order giving rise to a refund is the subject-matter of an appeal or further proceeding or where any other proceeding under this Act is pending, and the authority competent to grant such refund is of the opinion that the grant of refund is likely to adversely affect the revenue, such authority may, with the previous approval of the Commissioner, withhold the refund till such time as the Commissioner may determine.
2. (2) Where a refund is withheld under sub-section (1), the State Government shall pay interest in accordance with the provisions of the last preceding section on the

The Commissioner may, in suitable cases, remit the whole or any part of the tax payable in respect of any period, by any dealer, if the total amount to be remitted does not exceed two thousand rupees.

Power not to recover tax not levied or short levied, as a result of general practice Notwithstanding anything contained in this Act, or in any judgment, decree or order of any Court or Tribunal, if the State Government is satisfied—

1. (a) that a practice was, or is, generally prevalent regarding levy of tax on any class of sales or purchases at a lower rate than the rate at which the tax

1. (1) No person shall collect any sum by way of tax or in lieu of tax on a transaction which is not a transaction of sale.
2. (2) No person shall collect any sum by way of tax or in lieu of tax in respect of sales of goods on which by virtue of section 5 or by virtue of notification issued under section 59, no tax is payable.
3. (3) No person, who is not a Registered dealer, shall collect in respect of any sale of goods any amount by way of tax or in lieu of tax from any other person.
4. (4) No Registered dealer shall collect any amount by way of tax or in lieu of tax in respect of any transaction of sale on which he is not liable to pay tax under the provisions of this Act.
5. (5) No Registered dealer shall collect any amount by way of tax or in lieu of tax on any transaction of sale in excess of the amount of tax payable by him on such transaction under the provisions of this Act. Explanation.—For the purpose of sub-section (5) where the total tax collected on the turnover of sales by a Registered dealer in any period of assessment exceeds the tax assessed excluding additional tax, if any, on such turnover of sales (without adjustment of set-off granted under section 60, if any) and where such excess collection or any part thereof cannot be easily identified either by the dealer or by the Commissioner with any particular transaction of sale, then such excess collection or part thereof shall be deemed to be the excess collection.
6. (6) Notwithstanding anything contained in sub-sections (4) and (5), a dealer who has been, permitted by the Commissioner to pay a lump sum payment under section 58 shall not collect any sum (by way of tax or in lieu of tax) on the sales of goods if made during the period to which such lump-sum payment applies.
7. (7) Provisions contained in sub-sections (3) and (4) shall not apply where a person is required to collect such amount of tax separately in order to comply with the conditions and restrictions imposed on him under the provisions of any law for the time being in force.

If any dealer liable to pay tax under the Act,—

1. (a) sells goods to a Registered dealer, or
2. (b) effects sales in the course of inter-State trade or commerce, or in the course of export, or (c)
   • (i) being a manufacturer or importer, sells any goods of sale price exceeding ten rupees in any one transaction to any other person, or
   • (ii) being a reseller with a turnover exceeding one lakh rupees in the previous year sells in the current year any goods of sale price exceeding ten rupees in any one transaction to any other person, he shall issue to the purchaser a bill or cash memorandum serially numbered, signed and dated by him or his servant, manager or agent, and showing therein his name and address and such other particulars as may be prescribed. He shall keep a duplicate copy of such bill or cash memorandum duly signed and dated and preserve it for a period of not less than six years from the end of the year, unless any proceedings in respect of that year are pending in which case they shall be preserved even beyond the period of six years till the final decision in those proceedings : Provided that, if in respect of any goods or class of goods or any dealers or class of dealers, the Commissioner is of the opinion that it is not practicable to issue any bills or cash memoranda for sale of goods of sale price exceeding ten rupees in any one transaction to any other person, he may, by notification in the Official Gazette,—
   • (i) specify such amount of sale price exceeding ten rupees for the issue of such bills or cash memoranda;
   • (ii) exempt such goods or class of goods, or dealer or class of dealers, from the operation of clause (c) of this section as may be specified in the notification.