Chapter VII PROCEEDINGS

1. (1) If any question arises, otherwise than in proceedings before a Court, Tribunal or Settlement Commission, or before the Commissioner has commenced assessment or reassessment of a dealer under section 44 or 46, whether, for the purposes of this Act,—
   • (a) any person is a dealer, or
   • (b) any particular thing done by the applicant to any goods amounts to, or results in, the manufacture of goods within the meaning of that term, or
   • (c) any transaction is a sale or purchase, or where it is a sale or purchase the sale price or the purchase price, as the case may be, thereof, or
   • (d) any particular dealer is required to be registered, or
   • (e) any tax is payable in respect of any particular sale or purchase, or if tax is payable the rate thereof, the Commissioner shall make an order determining such question. Explanation.—For the purpose of this sub-section, the Commissioner shall be deemed to have commenced assessment or reassessment of a dealer under section 44 or 46, when the dealer is served with any notice by the Commissioner under section 44 or 46, as the case may be.
2. (2) The Commissioner may direct that the determination shall not affect the liability of any person under this Act, as respects any sale or purchase effected prior to the determination.
3. (3) If any such question arises from any order already passed under this Act or any earlier law, no such question shall be entertained for determination under this section; but such question may be raised in appeal against, or by way of revision of, such order.

1. (1) In discharging their functions under this Act, the Tribunal, the Settlement Commission and the Commissioner shall have all the powers of a Civil Court for the purpose of—
   • (a) proof of facts by affidavit;
   • (b) summoning and enforcing the attendance of any person, and examining him on oath or affirmation;
   • (c) compelling the production of documents; and
   • (d) issuing commissions for the examination of witnesses.
2. (2) In the case of any affidavit to be made for the purposes of this Act, any officer appointed by the Tribunal, the Settlement Commission, or the Commissioner, may administer the oath to the deponent.
3. (3) Without prejudice to the provisions of any other law for the time being in force, where a person, to whom a summons is issued by the Tribunal, the Settlement Commission or the Commissioner, either to attend to give evidence or to produce books of accounts, registers or other documents at a certain place and time, omits without reasonable cause to attend to give evidence or to produce the documents at such place and time, the Tribunal, the Settlement Commission, or the Commissioner, as the case may be, may impose on him such penalty by way of fine not exceeding five hundred rupees, as it or he thinks fit; and the penalty so levied may be recovered in the manner provided in this Act for recovery of arrears of tax: Provided that, before imposing any such penalty the person concerned shall be given a reasonable opportunity of being heard.
4. (4) If any documents are produced by a person on whom a summons was issued by the Tribunal, Settlement Commission or Commissioner, and the Tribunal, Settlement Commission or Commissioner has reason to believe that any dealer has evaded or is attempting to evade the payment of any tax due from him and the documents produced are necessary for establishing the case against such dealer, the Tribunal, Settlement Commission or Commissioner, as the case may be, may, for reasons to be recorded in writing, impound the documents and shall grant a receipt for the same and shall retain the same for so long as may be necessary in connection with the proceedings or for a prosecution under this Act.

Save as is provided by section 84, no assessment made and no order passed under this Act or the rules made thereunder by the Commissioner or an officer or person subordinate to him shall be called in question in any Court; and save as is provided by sections 77 and 79 no appeal or application for revision shall lie against any such assessment or order.

1. (1) Any person aggrieved by any original order (not being an order mentioned in section 78 or passed under section 89) passed against him under this Act or under the rules made thereunder, may appeal to—
   • (a) the Assistant Commissioner, if the order is made by a Sales Tax Officer or any other Officer subordinate to him;
   • (b) the Deputy Commissioner, if the order is made by an Assistant Commissioner;
   • (c) the Tribunal, if the order is made by the Deputy Commissioner, Additional Commissioner or Commissioner.
2. (2) In the case of an order passed in appeal by an Assistant Commissioner or a Deputy Commissioner, a second appeal shall lie to the Tribunal.
3. (3) Every order passed in appeal under this section, shall, subject to the provisions of sections 79, 84 and 85, be final.
4. (4) Subject to the provisions of section 83, no appeal shall be entertained unless it is filed within sixty days from the date of communication of the order appealed against.
5. (5) No first appeal or second appeal against an order of assessment with or without penalty, or against an order imposing penalty shall ordinarily be entertained by an appellate authority, unless such appeal is accompanied by satisfactory proof of the payment of tax with or without penalty due as per the order in respect of which the appeal has been preferred: Provided that, an appellate authority may if it thinks fit, for reasons to be recorded in writing, entertain

**78. Non-appealable orders**

No appeal and no application for revision shall lie against —

1. (1) any notice issued under this Act or the rules made thereunder;
2. (2) an order pertaining to the seizure or retention of account books, registers and other documents;
3. (3) an order sanctioning prosecution under this Act;
4. (4) an order passed under sub-section (8) of section 31 and section 96;
5. (5) any orders, instructions or directions issued under sub-section (10) of section 31;
6. (6) any directions given under the third proviso to sub-section (9) of section 44;
7. (7) any order passed under section 49;
8. (8) any directions issued under section 52;
9. (9) orders under sub-clause (ii) of clause (b) of sub-section (2) and sub-section (5) of section 53;
10. (10) any order passed under sub-section (2) of section 64;
11. (11) an order directing a class of dealers to maintain books of accounts under sub-section (2) of section 70;
12. (12) an order passed under clause (b) of sub-section (1) of section 79;
13. (13) any interlocutory order not being an order passed under the proviso to sub-section (5) of section 77 passed in the course of any proceedings under this Act;
14. (14) an order passed by the Settlement Commission under section 80.

1. (1) Subject to the provisions of section 78 and to any rules which may be made in this behalf,—
   • (a) the Commissioner may on his own motion call for and examine the record of any order passed in any order passed in appeal under this Act or the rules made thereunder by any officer or person subordinate to him and pass such order thereon as he thinks just and proper after making such enquiry as he deems fit: Provided that, no notice shall be served by the Commissioner under this clause after the expiry of three years from the date of the communication of the order sought to be revised, and no order in revision

**80. (1)

1. (a) After the Settlement Commission is constituted under section 33, if any dealer desires to get his liability to pay the tax settled by the Settlement Commission, he may, before initiation or during the pendency of assessment or reassessment proceedings under section 44 or 46 for any period, make an application in such form and in such manner containing such particulars, as may be prescribed, to the Settlement Commission for having his liability in respect of such period settled.** **(b) Every application made under this section shall be accompanied by such fees, as may be prescribed.** **(c) On receipt of the application, the Settlement Commission shall call for a report from the Commissioner and on the basis of the materials contained in such report and having regard to the nature and circumstances of the case or the complexity of the investigation involved therein, the Settlement Commission may, by order, allow the application to be proceeded with or reject the application :** ** Provided that, an application shall not be rejected, unless an opportunity has been given to the applicant of being heard :** ** Provided further that, an application shall not be proceeded with under this sub-section if the Commissioner objects to the application being proceeded with on the ground that concealment of turnover or any other particulars for evading tax has been established or is likely to be established by any Sales Tax Authority in relation to the case of the applicant.** **(d) A copy of every order passed as aforesaid by the Settlement Commission shall be sent to the applicant and to the Commissioner.** **(2) An application made under sub-section (1) shall not be allowed to be withdrawn without the previous permission of the Settlement Commission.** **(3) Where an application is allowed to be proceeded with under sub-section (1), the Settlement Commission may call for the relevant records from the Commissioner and after examination of such records, if the Settlement Commission is of the opinion that any further inquiry or investigation in the matter is necessary, it may direct the Commissioner to make or cause to be made such further inquiry or investigation and furnish a report on the matters covered by the application and any other matter relating to the case.** **(4) After examination of the records and the report of the Commissioner, received under sub-section (1), and the report, if any, of the Commissioner received under sub-section (3), and after giving an opportunity to the applicant and to the Commissioner to be heard, either in person or through a representative duly authorised in this behalf, and after examining such further evidence as may be placed before it or obtained by it, the Settlement Commission may, in accordance with the provisions of this Act and in the manner provided for in the regulations, pass such order as it thinks fit on the matters covered by the application, but any other matter relating to the case not covered by the application, but referred to in the report of the Commissioner.** **(5) Any amount settled by the Settlement Commission in accordance with this section shall be deemed to be the amount of tax and penalty and interest assessed or reassessed, levied or imposed and all the provisions contained in this Act regarding recovery of tax, penalty and interest shall apply accordingly.** **(6) If it is subsequently found by the Settlement Commission that the order passed by it is based on fraud or mis-representation of facts by or on behalf of the applicant, the Settlement Commission may pass an order declaring the order passed under sub-section (4) as void :** ** Provided that, no such order under this section shall be passed without affording to the applicant a reasonable opportunity of being heard.** **(7) Where any order of settlement is passed by the Settlement Commission in respect of any assessment or reassessment or penalty or interest proceedings, the assessing authority shall not pursue the proceedings unless the settlement order is declared to be void.** **(8) Where the Settlement Commission has passed an order of settlement in respect of any proceedings, no proceedings for an offence under this Act shall be instituted against the applicant or no penalty shall be imposed in respect of the same facts.** **(9) Nothing contained in the application made by any dealer to the Settlement Commission or in any statements made before the Commission shall be binding on the applicant, if the application is rejected by the Commission. Nothing contained in such application or also be used by the assessing authority in the assessment or re-assessment proceedings continued by such authority after the rejection of the application or after the declaration of the settlement order as void.** **(10) Subject to the provisions of this section and section 85, every order of the Settlement Commission passed under this section shall be conclusive as to the matter stated therein.**

1. (1) No assessment (including re-assessment, rectification and revision), notice, summons or other proceedings made or issued or taken or purported to have been made or issued or taken in pursuance of any of the provisions of this Act or under the certain earlier law shall be invalid or shall be deemed to be invalid merely by reason of any mistake, defect or omission in such assessment, notice, summons or other proceedings, if such assessment, notice, summons or other proceedings are in substance and effect in conformity with or according to the intent and purposes of this Act or any earlier law.
2. (2) The service of any notice, order or communication shall not be called in question if the said notice, order or communication, as the case may be, has already been acted upon by the dealer or person to whom it is issued or which service has not been called in question at or in the earliest proceedings commenced, continued or finalised pursuant to such notice, order or communication.
3. (3) No order of assessment, re-assessment, revision or rectification passed under the provisions of this Act shall be invalid merely on the ground that the action could also have been taken by any other authority under any other provisions of this Act.

**Court-fee on appeal and application for revision and certain other applications.**

82. Notwithstanding anything contained in the Bombay Court-fees Act, 1959, the appeal preferred under section 77, an application for revision made under section 79 and an application made under sections 74, 80 and 85 shall bear a Court-fee stamp of such value (not exceeding one hundred rupees) as may be prescribed, and any other application not otherwise provided in this Act when presented to a prescribed authority for a prescribed purpose shall bear a Court-fee stamp of two rupees.

Application of sections 4 and 12 of Limitation Act, and extension of period of limitation in certain cases.

83.

1. (1) In computing the period laid down under sections 77, 79, 84 and 85, the provisions of sections 4 and 12 of the Limitation Act, 1963, shall, so far as may be, apply.
2. (2) An appellate authority may admit any appeal under section 77 and the Tribunal may admit an application under section 84 after the period of limitation laid down in the said sections, if the appellant or the applicant satisfies the appellate authority or the Tribunal, as the case may be, that he had sufficient cause for not preferring the appeal or making the application, within such period. *Explanation.*—When an appeal is preferred under section 77 or an application is made under section 79 or 84 after the period of limitation laid down in those sections, the fact that the appellant or the applicant, as the case may be, came to know any judgment, decision or order of any Court, Tribunal or other authority after the expiry of the period of limitation aforesaid

1. (1) Within ninety days from the date of communication of any order passed by the Tribunal under the provisions of this Act, the person in whose proceedings such order is passed or the Commissioner may, by application in writing (accompanied where the application is made by that person by a fee as may be prescribed but not exceeding rupees two hundred and fifty) require the Tribunal to refer to the High Court any question of law arising out of such order. The Tribunal shall, as soon as may be after the receipt of such application, draw a statement of case and refer it to High Court, provided that, if the Tribunal refuses to state the case which it has been required to do on the ground that no question of law arises, then that person, or the Commissioner, may, within ninety days of such refusal, either withdraw his application (and if he does so any fee paid shall be refunded), or apply to the High Court against such refusal.
2. (2) If upon receipt of an application under sub-section (1), the High Court is not satisfied as to the correctness of the decision of the Tribunal, it may require the Tribunal to state the case and refer it; and accordingly, on receipt of any such requisition the Tribunal shall state the case and refer it to the High Court.
3. (3) If the High Court is not satisfied that the Statement in the case referred under this section is sufficient to enable it to determine the question raised thereby, it may refer the case back to the Tribunal to make such additions thereto or alterations therein, as the High Court may direct in that behalf.
4. (4) 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 Tribunal a copy of such judgment under the seal of the Court and the signature of the Registrar, and the Tribunal shall dispose of the case accordingly.
5. (5) Where a reference is made to the High Court under this section, the costs shall be in the discretion of the Court.
6. (6) The payment of the amount of tax, if any, due in accordance with the order of the Tribunal 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 a result of such reference, the excess tax paid shall be refunded in accordance with the provisions of section 61.
7. (7) The refund of any amount due to any person in accordance with the order of the Tribunal in respect of which an application has been made under sub-section (1) shall be granted by the Commissioner provided that if 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 direct such person to furnish a suitable bank guarantee or security to the satisfaction of such authority before granting such refund : Provided that, where such refund cannot be granted to such person by reason of his inability to furnish a suitable bank guarantee or security to the satisfaction of the authority competent to grant such refund and if that matter is finally decided in favour of the person concerned, then the State Government shall, on application of such person, pay simple interest at the rate of twelve per cent per annum on the amount from the expiry of ninety days from the date of receipt of the order passed by the Tribunal to the date of issue of refund payment order.

1. (1) The Commissioner may at any time within two years from the date of any order passed by him, of his own motion, initiate proceedings to 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 who was a party to such order and is affected by it: Provided that, no such rectification shall be made if it has the effect of adversely affecting any person 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) The

Certain transfers to be void.

1. (1) Where, during the pendency of any proceeding under this Act or after the completion thereof, any assessee creates a charge on, or parts with the possession (by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever) of, any of his assets in favour of any other person, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the assessee as a result of the completion of the said proceeding or otherwise: Provided that, such

Provisional attachment to protect revenue in certain cases.

1. (1) Where, during the pendency of any assessment or reassessment proceedings under section 44 or section 46 or the corresponding provisions of the earlier law, the authority, before which such proceedings are pending, is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, that authority may, with the previous approval of the Commissioner by order in writing, attach provisionally any property belonging to the dealer or person in respect of whom the proceedings are pending.
2. (2) Every such provisional attachment shall cease to have effect after the expiry of a period of six months from the date of the order made under sub-section (1): Provided that, the Commissioner may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as he thinks fit, so, however, that the total period of extension shall not in any case exceed two years.