Chapter VII PAYMENT OF TAX AND RECOVERY

The text for "Section 31: Deduction of tax at source" is not included in this document snippet.

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Payment of tax, etc.—

1. (1) The tax due, where the returns are furnished without full payment of tax, or where the returns are not furnished or are delayed, or where the return is accepted as self-assessment, shall be paid in the Government Treasury in the manner prescribed, at the time of furnishing the return or at the time of furnishing the delayed return or, as the case may be, within the time prescribed.
2. (2) When a dealer or person furnishes a revised return in accordance with the provisions of sub-section
3. (3) of section 20, and the amount of tax due according to the revised return exceeds the amount of tax due according to the original return, the dealer or person shall furnish with the revised return, a receipt of the Government Treasury showing that the full amount of the tax due as per the revised return has been paid.
4. (3) Any tax, penalty or interest or other sum payable under this Act shall be paid in such manner as may be prescribed.

Payment of tax or interest in certain cases.—

1. (1) Notwithstanding anything contained in this Act, for the purpose of payment of any tax, interest, penalty or any other sum payable under this Act, the State Government may, by notification in the Official Gazette, require that such payment shall be made in such electronic manner as may be prescribed.
2. (2) Where a notification is issued under sub-section (1), any payment made in any other manner than that prescribed shall be deemed to be not paid.

Special mode of recovery.—

1. (1) 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 known address), require—
   • (a) any person from whom any amount of money is due, or may become due, to a dealer on whom a notice of demand has been served under 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 or at or within the time specified in the notice (not being 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 in respect of the amount of tax, penalty and interest under this Act, or the whole of the money when it is equal to or less than that amount.
2. (2) The Commissioner may, at any time or from time to time, amend or revoke any such notice or extend the time for making any payment in pursuance of the notice.
3. (3) Any person making any payment in compliance with a notice under this section shall be deemed to have made the payment under the authority of the dealer and the receipt of the payment by the Commissioner shall constitute a good and sufficient discharge of the liability of such person, to the extent of the amount referred to in the receipt.
4. (4) Any person discharging any liability to the dealer after receipt of the notice referred to in this section shall be personally liable to the Commissioner to the extent of the liability discharged, or to the extent of the liability of the dealer for the amount due under this Act, whichever is less.
5. (5) Where a person to whom a notice under this section is sent, objects to it by a statement on oath that the sum demanded or any part thereof is not due to the dealer or that he does not hold any money for or on account of the dealer, then, nothing contained in this section shall be deemed to require such person to pay any such sum or part thereof, as the case may be, to the Commissioner.
6. (6) Any amount of money which a person is required to pay to the Commissioner, or for which he is personally liable to the Commissioner under this section shall, if it remains unpaid, be recoverable as an arrear of land revenue.
7. (7) When a dealer to whom a notice under this section is sent proves to the satisfaction of the Commissioner that the sum demanded or any part thereof is not in excess of the amount due by the dealer, nothing contained in this section shall be deemed to operate as a bar to the recovery of any sum due from the dealer by any other mode.

Special powers of Sales Tax authorities for recovery of tax as arrears of land revenue.—

1. (1) For the purpose of effecting the recovery of the amount of tax, penalty, interest or any other sum due and recoverable from any dealer or person by or under the provisions of this Act, the Sales Tax authorities shall have all the powers of a Collector under the provisions of the Maharashtra Land Revenue Code, 1966 (Mah. XLI of 1966).
2. (2) The State Government may, by notification in the Official Gazette, empower any officer of the Sales Tax Department under the designation of "Recovery Officer" to exercise such powers of the Collector under the Maharashtra Land Revenue Code, 1966 (Mah. XLI of 1966) as may be specified in the notification.
3. (3) The powers exercisable by the Sales Tax authorities or the Recovery Officer shall be limited to the recovery of the tax, penalty, interest or any other sum due and recoverable from the dealer or person under this Act.

Provisional attachment to protect revenue in certain cases.—

1. (1) Where, during the pendency of any proceedings of assessment or reassessment of any turnover of sales or any claim for refund, the Commissioner is of the opinion that for the purpose of protecting the interest of the revenue, it is necessary so to do, he may, by order in writing, attach provisionally any property belonging to the dealer or any other person on whose behalf the dealer is liable to pay tax, in the manner prescribed.
2. (2) Every such provisional attachment shall cease to have effect after the expiry of a period of one year 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 in the aggregate.

Continuation and validation of certain recovery proceedings.—

1. (1) Where any notice of demand in respect of any tax, penalty, interest or any other sum payable under this Act, is served upon any dealer or person by any Sales Tax authority and any appeal or other proceeding is filed or initiated in respect of such sum, then,—
   • (a) where such sum is enhanced in such appeal or proceeding, the Commissioner shall serve upon the dealer or person another notice of demand in respect of the amount by which such sum is enhanced, and any proceeding in relation to the amount of such sum as originally demanded shall be continued and validly so, as if it were a proceeding in relation to the amount originally demanded;
   • (b) where such sum is reduced in such appeal or proceeding,—
     • (i) it shall not be necessary for the Commissioner to serve upon the dealer or person a fresh notice of demand;
     • (ii) the Commissioner shall give intimation of the fact of such reduction to the dealer or person;
     • (iii) any proceeding initiated for the recovery of such sum shall be continued in relation to the amount so reduced, from the stage at which it stood immediately before such reduction.
2. (2) No proceeding for the recovery of any sum shall be invalid merely by reason of the fact that the original notice of demand was served upon a dealer or person and that notice was not effectively issued or served or was found to be defective, provided that the dealer or person had knowledge of such demand and had failed to pay the same.

Liability under this Act to be the first charge.— Notwithstanding anything contained in any contract to the contrary, but subject to any provision regarding charge on property in the Central Excise Act, 1944 (I of 1944), the Customs Act, 1962 (52 of 1962), the Central Sales Tax Act, 1956 (74 of 1956), any amount of tax, penalty, interest, composition money, sum forfeited, or any other sum, payable by a dealer or any other person under this Act shall be the first charge on the property of the dealer, or as the case may be, person.

Transfer to defraud revenue void.—

1. (1) Where, during the pendency of any proceeding under this Act or after the completion thereof, any dealer 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 with the intention to defraud the revenue, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the dealer under this Act.
2. (2) Nothing in this section shall impair the rights of an assignee in good faith and for valuable consideration.

Rounding off tax, etc.— The amount of tax, interest, penalty, fine or any other sum payable, and the amount of refund 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 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.

Adjustment of any payment.—

1. (1) Any payment made by a dealer or person towards tax, interest, penalty, fine or other sum payable under this Act shall first be adjusted towards the interest and penalty in accordance with the provisions of this Act and the balance, if any, shall be adjusted towards the tax.
2. (2) Notwithstanding anything contained in sub-section (1), the Commissioner may, in the prescribed manner, adjust any payment made by a dealer or person towards any previous liability of such dealer or person.

Exemption and refund.—

1. (1) The State Government may, by notification in the Official Gazette, grant exemptions from the payment of the whole or any part of the tax in respect of any class of sales or purchases of goods as may be specified in the notification.
2. (2) The State Government may, by notification in the Official Gazette, grant refunds to any class of dealers or to any class of transactions, of the whole or any part of the tax paid by them under this Act, subject to such conditions, if any, as may be specified in the notification.

Composition of tax.—

1. (1) 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 this Act in respect of any period, a lump sum by way of composition.
2. (2) The permission for composition shall be granted in such form and for such period as may be prescribed and the dealer shall be required to pay the lump sum amount at such intervals and in such manner as may be prescribed.
3. (3) The amount of composition money paid by a dealer under this section shall be deemed to be the tax paid for the purposes of this Act.

Applicability of all the provisions of this Act or any earlier law to person liable to pay tax under this Act.— Every person who is liable to pay tax under this Act shall, for the purposes of assessment, reassessment, levy, collection, refund, appeal, rectification, review, and for any other purpose under this Act, be subject to all the provisions of this Act or any earlier law, as the case may be, as if he were a dealer, and all powers and functions conferred or imposed on any authority or person under this Act or any earlier law shall apply to such person as they apply to a dealer.

44. Special provision regarding liability to pay tax in certain cases. 51

Transfer to defraud revenue void.— (1) Where, during the pendency of any proceeding under this Act or after the completion thereof, any dealer 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 with the intention to defraud the revenue, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the dealer under this Act. (2) Nothing in this section shall impair the rights of an assignee in good faith and for valuable consideration.

Rounding off tax, etc.— The amount of tax, interest, penalty, fine or any other sum payable, and the amount of refund 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 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.

Adjustment of any payment.— (1) Any payment made by a dealer or person towards tax, interest, penalty, fine or other sum payable under this Act shall first be adjusted towards the interest and penalty in accordance with the provisions of this Act and the balance, if any, shall be adjusted towards the tax. (2) Notwithstanding anything contained in sub-section (1), the Commissioner may, in the prescribed manner, adjust any payment made by a dealer or person towards any previous liability of such dealer or person.