Exemption of certain sales and purchases:

(1) Subject o such conditions as it may impose, the Government may, if it is necessary so to do in the public interest, by notification in the Official Gazette, exempt any sales or purchases made to or by class of dealers or persons specified in the said notification from payment of the whole or any part of any tax payable under the provisions of this Act and any notification issued under this section may be issued so as to be retrospective to any date not earlier than the 1St April, 2005 and such exemption shall take effect from the date of publication of the notification in the Official Gazette or such other earlier or later date as may be mentioned therein; (2) Where any dealer or person has purchased any goods under a declaration or certificate or certificate given by him under any notification issued under this Section and; (a) Any of the condition subject to which such exemption was granted, or (b) Any of the recitals or the conditions of the declaration, or certificate are not complied with for any reason whatsoever, then, without prejudice to the other provisions of this Act, such dealer or person shall be liable to pay tax on the sale price of the goods at the rate set out against each of such goods in the schedules notwithstanding that such dealer or person was not liable to pay tax under any provisions of this act and accordingly the dealer or the person who has become liable to pay tax under this sub-section shall file a return in the prescribed form to the prescribed authority within prescribed time and shall include the sale 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 and recovered as if the person or dealer is a dealer liable to be proceeded against under the provisions of this Act. (3)

If the Commissioner has reason to believe that any person or dealer is liable to pay tax under sub-section (2), the Commissioner shall, after giving a reasonable opportunity of being heard, assess the amount of tax so due.

53. Composition of tax: (1) The Government may be a notification publish in the Official Gazette provide for a scheme of composition subject to such conditions and restrictions as may be provided therein, of tax payable by those dealers who are engaged in the business of selling at retail any goods or merchandise. (2) For the purpose of this Section a dealer will be considered to be engaged in the business of selling at retail if 9/1 0 " of his turnover of sales consists of sales made to persons who are not dealers and if any question arises as to whether any particular dealer is a retailer, then the officer in charge of the case shall refer the question to the Commissioner who shall after hearing the dealer if necessary, decide the question (3) Nothing in this Section shall apply to a dealer who is a manufacturer or who is an important or who has purchased any goods from a registed dealer whose sales of the said goods are not liable to tax under the provisions of this Act. CHAPTER-VI ACCOUNTS AND RECORDS 54, Maintenance of accounts and records:

1. (1) Every registered dealer or a dealer to whom a notice has been served to furnished return under sub-section (2) of Section 28 shall maintain a true and up-date account of the value of goods purchased or manufactured and sold by him or goods held by him in stock, and, in addition to the books of account that that a dealer maintains and keeps for the purpose referred to in this sub-section, he shall maintain and keep such registers and accounts in such form in the manner prescribed. (2) Every registered dealer or dealer to in sub-section (1) shall keep at his place of business all accounts, registers and documents maintained in the course of business. (3) Where a dealer as referred to in sub-section (1) has established branch offices of the business in the State other than the principal place of business, the relevant accounts, registers and documents in respect of each such branch shall, without prejudice to the provisions of sub-section (5), be kept by him at such branch. (4) If the Commissioner is of the opinion that the accounts maintained by any dealer or class of dealers do not sufficiently enable him to verify the returns referred to in sub-section (1) of Section 28 or the assessment can not be made on the basis thereof, he may by an order, requires such dealer or class of dealers, to keep such accounts, in such form and in such manner as he may, subject to rules made under this Act, direct. (5) If the Commissioner is satisfied that any dealer is not in a position to maintain accounts in accordance with the provisions of sub-section (1), he may, for reason to be recorded in writing, exempt such dealer from the operations of the provisions of the said sub-section.