The Punjab General Sales Tax Act, 1948

1. (1) This Act may be called the 1[* * *] Punjab General Sales Tax Act, 1948.
2. (2) It extends to the whole of the 2[State] of 3[Punjab].
3. (3) It shall come into force on the 1st 4[April], 1949.

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

1. (a) “assessing authority” means any person authorised by the 5[State] Government to make any assessment under this Act;
2. (b) “Commissioner” means the Excise and Taxation Commissioner appointed under sub-section

1. (1) of section 3:
   • (c) 6[* * * * *]
   • (d) 7[“Dealer” means any person including a Department of Government who in the normal course of trade sells 8[or purchases] any goods that are actually delivered for the purpose of consumption in the State of Punjab, irrespective of the fact that the main place of business of such person is outside the said State and where the main place of business of any such person is not in the said State, ‘dealer’ includes the local manager or agent of such person in Punjab in respect of such business.] Explanations.—(1) A co-operative society or a club or any association which sells or supplies goods to its members 9[or purchases] 10[goods specified in Schedule C 11[* * *], is dealer within the meaning of this clause.
2. (2) A factor, a broker, a commission agent; a dealer’s agent, an auctioneer or any other mercantile agent by whatever name called, and whether of the same description as here inbefore mentioned or not, who carries on the business of 1[selling, supplying or purchasing goods and who has in the customary course of business, authority to sell goods belonging to principals or to purchase goods on their behalf] is a dealer.
3. (3) For the purpose of this clause, “Government” will include the Central Government or the Government of any other State. 2[(dd)] ‘declared goods’ means goods declared under section 14 of the Central Sales Tax Act, 1956, to be of special importance in inter-State trade or commerce;]
   • (e) 3[“goods” means all kinds of movable property other than news-papers, actionable claims, stocks, shares or securities;]
   • (f) “Prescribed” means prescribed by rules made under this Act. 4[(ff)] “purchase” with all its grammatical or cognate expressions, means the acquisition of goods specified in Schedule C for cash or deferred payment or other valuable ocsideration otherwise than under a mortgage, hypothecation, charge or pledge:]
   • (g) “registered” means registered under this Act;
   • (h) “sale” means any transfer of property in goods 5[other than goods specified in Schedule C] for each cash or deferred payment or other valuable consideration, 6[****] but does not include a mortgage, hypothecation, charge or pledge; Explanation.—(1) A transfer of goods on hire-purchase or other instalment system of payment shall, notwithstanding that the seller retains a title to any goods as security for payment of the price be deemed to be a sale. 7[ * * * * * * * ]

In the event of the State Government constituting more Tribunals than one, the State Government shall by notification define the local limits of jurisdiction of each Tribunal and where an appeal, application or revision pending before a Tribunal relates to the local limits of an area which, as a result of the issue of such a notification, has fallen within the jurisdiction of another Tribunal, such appeal, application or revision shall stand transferred to and be heard and decided by the other Tribunal.

3-C. Dissolution of Tribunal Notwithstanding anything contained in sub-section

1. (5) of section 3-A, where there are more Tribunals than one, the State Government may, at any time by reason of insufficiency of work pending before the Tribunals, dissolve any Tribunal and no presiding officer of the Tribunal affected by such dissolution shall have any claim against the State Government.

1. (1) Subject to the provisions of section 5 and 6, every dealer ¹[except one dealing exclusively in goods declared tax-free under section 6] whose gross turnover during the year immediately preceding the commencement of this Act exceeded the taxable quantum shall be liable to pay tax under this Act on all sales affected after the coming into force of this Act ²[and purchases made after the commencement of the East Punjab General Sales Tax (Amendment) Act, 1958]: Provided that the tax shall not be payable on sales involved in the execution of a contract which is shown to the satisfaction of the assessing authority to have been entered into before the commencement of this Act. ³[(2) Every dealer to whom sub-section
2. (1) does not apply or who do s not deal exclusively in goods declared to be tax-free under section 6 shall be liable to pay tax under this Act on the expiry of 30 days after the date on which his gross turnover ⁴[during any year] first exceeds the taxable quantum: Provided that in the case of a dealer who imports any goods for sale or use in manufacturing or processing,or who manufactures or processes any goods for s le the liability to pay tax shall commence with effect from the date on which his gross turnover(during any year) first exceeds the taxable quantum. ⁵[(2-A) Notwithstanding anything contained in sub-sections
3. (1) and (2), no tax on the sale of any goods shall be levied if a tax on their purchase is payable under this Act.]
4. (3) Every dealer who has become liable to pay tax under this Act shall continue to be so liable until the expiry of three consecutive years during each of which his gross turnover has failed to exceed the taxable quantum and such further period after the date of such expiry as may be prescribed, and on the expiry of this later period his liability to pay tax shall cease.
5. (4) ⁶[Every dealer whose liability to pay tax has ceased under the provisions of sub-section
6. (3) shall again be liable to pay tax under this Act ⁷[with effect from the date on which his gross turnover first exceeds the taxable quantum].
7. (5) In this Act the expression "taxable quantum" means-
   • (a) ¹[in relation to any dealer who imports for sale or use in manufacturing or processing any goods in Punjab, Nil] : ²[ Provided that the provisions of this clause shall not apply to a dealer who had placed orders for import of goods before the 8th August 1952, but received such goods on or after that date and his gross import for sale or use in manufacturing or processing any goods in Punjab did not exceed Rs. 5,000 during the year and he did not make any other import of goods after the said date.] ³[ * * * * * ]
   • (b) in relation to any dealer, who himself manufactures or produces any goods for sale, 10,000 rupees; ⁴[(bb) in relation to any dealer who runs a Tandoor, Loh, Dhaba hotel ⁵[restaurant, halwai shop, bakery], or other similar establishment wherein Indian food preparations including tea are served, 25000 rupees] ³[(c)] in relation to any particular classes of dealers not falling within ⁶[clauses (a),
   • (b) and (bb)], ⁷[ * * * ], such sum as may be prescribed : or ³[(d)] in relation to any other dealer, ⁸[40,000]rupees: provided that the registration of dealers already registered under this clause shall not be cancelled until their turnover in each of three consecutive years does not entitle them to concellation under clause
   • (b) of sub-section
8. (6) of section 7. 4-A. Liability of dealer registered under Parliament Act No. 74 of 1956 to pay tax ⁹[4-A. A dealer registered under the Central Sales Tax Act, 1956 (Parliament Act No. 74 of 1956) who is not liable to pay tax under section 4 shall nevertheless be liable to pay tax under this Act on any sale ¹⁰[or purchase] made by him inside the State of Punjab.] 1[ Provided that nothing herein shall apply to a dealer who deals exclusively in goods declared tax-free under section 6.

1. (1) Subject to the provisions of this Act, there shall be levied on the 2[taxable turnover of a dealer] a tax at such rates3[not exceeding] 4[six naye Paise] in a rupee as the 5[State] Government may by notification direct: 6[ Provided that a tax at 7[such rate, not exceeding 8[ten naye Paise] in a rupee, as may be so notified may be levied on the sale of luxury goods as specified in Schedule ‘A’ append ed to this Act from such date as the Government may by notification direct. The State Government after giving by notification not less than 9[twenty days] notice of its inten- tion to do so may by like notification add to or delete from this Schedule, and thereupon this Schedule shall be deem- ed to have been amended accordingly:] 10[ Provided further that the rate of tax shall not exceed two naye paise in a rupee in respect of any declared goods 11[ * * * * ] : 12[ Provided further that with effect from the date of commencement of the Punjab General Sales Tax (Amend- ment and Validation) Ordinance, 1967, the rate of tax shall not exceed three paise in a rupee in respect of any declared goods:] 13[Provided further] that Government may by notification in the Official Gazette declare that in respect of any goods or class of goods the dealer may pay such lump sum by way of composition of the tax payable under this Act, as the Go- vernment may notify from time to time. 1[(1A) The State Government may by notification direct that 2[in respect of such goods other than declared goods], and with effect from such date as may be specified in the notification, the tax under sub-section
2. (1) shall be levied at the first stage of sale thereof : and on the issue of such noti- fication the tax on such goods shall be levied accordingly: Provided that no sale of such goods at a subsequent stage shall be exempt from tax under this Act unless the dealer effecting the sale at such subsequent stage furnishes to the assessing authority in the prescribed form and manner a certificate duly filled in and signed by the registered dealer, from whom the goods were purchased. Explanation.—For the purposes of this sub-section the first stage of sale in respect of any goods in relation to any class of dealers shall be such as may be specified by the State Government in the notification.]
3. (2) In this Act the expression “taxable turnover” means that part of a dealer’s gross turnover during any period which remains after deducting therefrom—
   • (a) his turnover during that period on—
     • (i) the sale of goods declared tax-free under section 6 ; 3[(ii) 4[sales to a registered dealer of goods other than sales of goods liable to tax at the first stage under sub-section (1A)]; declared by him in a prescribed form as being intended for resale in the State of Punjab or sale in the course of inter-State trade or commerce 5[or sale in the course of export of goods out of the territory of India], 6[or of goods specified in his certificate of registration for use by him in the manufacture in Punjab of any goods, other than goods declared tax- free under section 6, for sale in Punjab], and on sales to a registered dealer of containers or other materials for the packing of such goods : Provided that in case of such sales, a declaration duly filled up and signed by the registered dealer to whom the goods are sold and containing prescri- bed particulars on a ¹[prescribed form obtained from the prescribed authority] is furnished by the dealer who sells the goods : ²[ Provided further that when such goods are used by the dealer to whom these are sold for purposes other than those for which these were sold to him, he shall be liable to pay tax on the purchase thereof at such rate, not exceeding the rate of tax leviable on the sale of such goods, as the State Government may by notification direct in respect of a class of dealers specified in such notification, notwithstanding that such pur- chase is not covered by clause
   • (ff) of section 2.]] ³[(iii) * * * * ]
     • (iv) sales to any undertaking supplying electrical energy to the public under a licence or sanction granted or deemed to have been granted under the Indian Electricity Act, 1910, of goods for use by it in the generation or distribution of such energy ; ⁴[(v) sales or purchases of goods falling under section 29 :] ⁵[(vi) the purchase of goods which are sold not later than six months after the close of the year, to a registered dealer, or in the course of inter-state trade or commerce, or in the course of export out of the territory of India :

1. (1) Any dealer ⁴[except one dealing exclusively in goods declared tax-free under section 6] whose gross turnover during a year exceeds ⁵[15,000] rupees may notwithstanding that he may not be liable to pay tax under section 4, apply in the prescribed manner to the prescribed authority for registration under this Act.
2. (2) The provisions of sub-sections
3. (3) and
4. (4) and clause
   • (a) of sub-section
5. (6) of section 7 shall apply in respect of applications for registration under this section.
6. (3) Every dealer who has been registered upon application made under this section shall, for so long as his registration remains in force, be liable to pay tax under this Act whether his gross turnover exceeds the taxable quantum or not.
7. (4) The registration of a dealer upon application made under this section shall be in force for a period of not less than three complete years and shall remain in force thereafter unless cancelled under the provisions of this Act.
8. (5) Subject to the provisions of sub-section (4), a dealer registered upon application made under this section may apply in the prescribed manner not less than six months before the end of a year to the authority which granted him his certificate of registration for the cancellation of such registration to take effect at the end of the year in which the application for such cancellation is made ; and the said authority shall, unless the dealer is liable to pay tax under section 4, cancel the registration accordingly.

¹[9. The Commissioner or any officer authorised by him in writing in this behalf, if it appears to him to be necessary so to do for the proper realisation of the tax levied under this Act, may impose for reasons to be recorded in writing as a condition of the issue of a registration certificate to a dealer or of the continuance, in effect, of such a certificate issued to any dealer, a requirement that the dealer shall give security up to an amount and in the manner approved by the Commissioner for the payment of the tax for which he may or become liable under this Act.]

1. (1) Tax payable under this Act shall be paid in the manner hereinafter provided at such intervals as may be prescribed. ²[(2) The Commissioner may, in such circumstances and such conditions as may be prescribed, accept from any dealer, in lieu of the amount of the general tax payable during any period, a lump-sum by way of composition determined in the prescribed manner.] ²[(3) Such dealers as may be required so to do by the assessing authority by notice served in the prescribed manner and every registered dealer shall furnish such returns by such dates and to such authority as may be prescribed : Provided that, if any dealer establishes to the satisfaction of the assessing authority that his average taxable turnover does not exceed ten per centum of his average gross turnover, the returns to be furnished by such dealer under this sub-section shall be annual returns. ¹[(4) Before any registered dealer furnishes the return required by sub-section ²[(3)], he shall, in the prescribed manner, pay into a Government Treasury or the Reserve Bank of India the full amount of tax due from him under this Act according to such returns and shall furnish along with the returns receipt from such Treasury or Bank showing the payment of such amount. ¹[(5) If any dealer discovers any omission or other error in any returns furnished by him, he may at any time before the date prescribed for the furnishing of the next return by him furnish a revised return, and if the revised return shows a greater amount of tax to be

1[12. The assessing authority shall in the prescribed manner, refund to a registered dealer applying in this behalf any amount of tax paid by such dealer under this Act—

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

3[(1) Every registered dealer or other dealer on whom a notice has been served to furnish returns under 4[sub-section (3)] of section 10, shall keep a true account of the value of goods bought and sold by him, and if the Assessing Authority considers that such account is not sufficiently clear and intelligible to enable him to make a proper check of the returns referred to in that sub-section he may require such dealer by notice in writing to keep such accounts including records of sales 5[as he may subject to anything that may be prescribed in that behalf in writing direct.]] 1

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

2[14.

1. (1) The Commissioner or any person appointed to assist him under sub-section
2. (1) of section 3 not below the rank of an Assistant Excise and Taxation Officer, may, for the purposes of this Act, require any dealer referred to in section 10 to produce before him any book, document or account relating to his business and may inspect, examine and copy the same and make such enquiries from such dealer relating to his business, as may be necessary : Provided that books, documents and accounts of a period more than five years prior to the year in which assessment is made shall not be so required.
3. (2) Every registered dealer shall—
   • (a) maintain day to day accounts of his business;
   • (b) maintain a list of his account books, display it along with his registration certificate and furnish a copy of such list to the Assessing Authority ;
   • (c) produce, if so required, account books of his business before the Assessing Authority for authentication in the prescribed manner ;
   • (d) retain his account books at the place of his business, unless removed therefrom by an official for inspection, by any official agency, or by auditors, or for any other reasons which may be considered to be satisfactory by the Assessing Authority.
4. (3) If any officer referred to in sub-section
5. (1) has reasonable grounds for believing that any dealer is trying to evade liability for tax or other dues under this Act, and that anything necessary for the purpose of an investigation into his liability may be found in any book, account, register or document, he may seize such book, account, register or document as may be necessary. The officer seizing the book, account, register or document shall forthwith grant a receipt for the same and shall,—
   • (a) in the case of book, account, register or document which was being used at the time of seizing within a period of ten days from the date of seizure; and
   • (b) in any other case, within a period of sixty days from the date of seizure ; return it to the dealer or the person from whose custody it was seized after examination or after having such copies or extracts taken therefrom as may be considered necessary, provided the dealer or the aforesaid person gives a receipt in writing for the book, account, register or document returned to him. The officer may, before returning the book, account, register or document, affix his signatures and his official seal at one or more places thereon, and in such case the dealer or the aforesaid person will be required to mention in the receipt given by him the number of places where the signature and seal of such officers have been affixed on each book, account, register or document.
6. (4) For the purposes of sub-section
7. (2) or sub-section (3), an officer referred to in sub-section
8. (1) may enter and search any office, shop, godown, vessel, vehicle, or any other place of business or any building or place except residential houses where such officer has reasons to believe that the dealer keeps or is, for the time being keeping any book, account, register, document or goods relating to his business.
9. (5) The power conferred by sub-section
10. (4) shail include the power to open and search any box or receptacle in which any books, accounts, registers or other [relevant] documents of the dealer may be contained.
11. (6) Any officer empowered to act under sub-section
12. (3) or sub-section
13. (4) shail have power to seize any goods which are found in any office, shop, godown, vessel, vehicle or any other place of business or any building or place of the dealer, but not accounted for by the dealer in his books, accounts, registers, records and other documents. ] 14-A. Assessee permitted to attend through authorised agent, etc 1[14-A.
14. (1) Any assessee or dealer, who is entitled or required to attend before any authority in connection with any proceedings under this Act, may attend by a person authorized by him in writing in this behalf being a relative or a person regularly employed by the assessee, or a lawyer or accountant or income-tax practitioner and not being disqualified by or under sub-section (3). 2
15. (2) In this section an “income-tax practitioner” means any person, who before the 10th day of May, 1953, attended before any assessing or other sales tax authorities in connection with any proceedings under this Act or under the Punjab General Sales Tax Act, 1941, on behalf of any assessee otherwise than in the capacity of an employee or relative of that assessee, or who has passed any accountancy examination recognized in this behalf, by the Central Board of Revenue, or holds a Degree in Commerce, Law, Economics or Banking including auditing conferred by any Indian University, incorporated by any law for the time being in force, Rangoon University, English and Welsh Universities. ]
16. (3) No person, who has been dismissed from Government service, shall be qualified to represent any dealer under sub-section (1).
17. (4) If any practitioner or other person who represents an assessee, is found guilty of misconduct in any proceedings before any authority under this Act by the Commissioner, the Commissioner may direct that he shall be disqualified to represent a dealer under sub-section
18. (1) : Provided that no such direction shall be made in respect of any person unless he is given a reasonable opportunity of being heard. 1[(5) Any person against whom any direction is made under this section may appeal to the Tribunal against such direction under and in accordance with the provisions of section 20.] 14-B. Establishment of check-posts or barriers and inspection of goods in transit 2[14-B.
19. (1) If, with a view to preventing or checking evasion of tax under this Act in any place or places in the State, the State Government considers it necessary so to do, it may by notification direct the establishment of a check-post or the erection of a barrier, or both, at such place or places as may be notified.
20. (2) The owner or person in charge of a goods vehicle or vessel shall carry with him a goods vehicle record, a trip sheet or a log book, as the case may be, and a bill of sale or a delivery note containing such particulars as may be prescribed in respect of the goods carried in the goods vehicle or vessel, as the case may be, and produce the same before an officer incharge of a check-post or barrier or any other officer of the department not below the rank of an Assistant Excise and Taxation Officer checking the vehicle or vessel at any other place.
21. (3) The owner or person, in charge of a goods vehicle or vessel entering the State limits or leaving the State limits shall also give in triplicate a declaration containing such particulars as may be prescribed of the goods carried in such vehicle or vessel, as the case may be, before the officer incharge of the check-post or barrier and shall produce the copy of the said declaration duly verified and returned to him by the officer incharge of the check-post or barrier before any other officer as mentioned in sub-section
22. (2) : Provided that where a goods vehicle or vessel bound for any place outside the State passes through the State, the owner or person incharge of such vehicle or vessel shall also obtain a transit slip (rahdari) in the prescribed form from the officer incharge of the check-post or barrier of his entry into the State and deliver it to the officer incharge of the check-post or barrier at the point of his exit from the State failing which it shall be presumed that the goods have been sold within the State.
23. (4) At every check post or barrier or at any other place when so required by any other officer referred to in sub-section
24. (2) in this behalf, the driver or any other person incharge of the goods vehicle or vessel shall stop the vehicle, as the case may be, and keep it stationary as long as may be reasonably necessary, and allow the officer-in-charge of the check post or barrier or the officer as aforesaid to examine the contents in the vehicle or vessel, by breaking open the package or packages, if necessary, and inspect all records relating to the goods carried which are in the possession of such driver or other person incharge, who shall also furnish such other information as may be required.
25. (5) At every station of transport of goods, bus stand or any other station or place of loading or unloading of goods, other than a rail head or a post-office, when so required by the Commissioner 3 the driver or the owner of the goods carrier or the employee of a transport company shall produce for examination transport receipts and all other documents and account books concerning the goods carried, transported, loaded, unloaded or consigned or received for transport.
26. (6) Any officer not below the rank of an Assistant Excise and Taxation Officer while acting under this section shall have the power to seize any goods not covered by the documents mentioned in sub-section
27. (2) and sub-section (3).
28. (7) No dealer or any person, including a carrier of goods, acting on behalf of a dealer, shall take delivery of, or transport from, any vessel, station, airport or any other place, whether of similar nature or otherwise, notified in this behalf by the State Government, any consignment of goods the sale or purchase of which is taxable under this Act except in accordance with such conditions as may be prescribed with

1[17-A. Should his certificate of registration be cancelled under any provision of this Act, a dealer, save when he has transferred his business to some one else, and notwithstanding clause

1. (ff) of section 2 but subject to the provisions of section 6, shall be liable to pay tax on goods purchased by him in the State of Punjab after registration, and remaining unsold at the time of cancellation of certificate at a rate leviable for the sale of such goods.

2[18.

1. (1) Where a dealer is an undivided Hindu family, firm, or other association of persons, and such family, firm or association is partitioned, dissolved or disrupted, as the case may be,-
   • (a) the tax payable under this Act by such family, firm, or association of persons for the period up to the date of such partition, dissolution or disruption may be assessed as if no such partition, dissolution or disruption had taken place and all the provisions of this Act shall apply accordingly : and
   • (b) every person who was at the time of such partition, dissolution or disruption a member or partner of an undivided Hindu family, firm or association of persons shall, notwithstanding such partition, dissolution or disruption, be liable severally and jointly for the payment of the tax including interest and penalty, if any, payable under this Act by such family, firm or association of persons, whether assessment is made prior to or after such partition, dissolution or disruption.
2. (2) Where the registration certificate of a dealer is cancelled under this Act in any case, other than that of a partition of undivided Hindu family or dissolution or disruption of a firm or association of persons, the tax payable under this Act by such dealer for the period up to the date of cancellation of the registration certificate may be assessed on such dealer as if no such cancellation had taken place and all the provisions of this Act shal apply accordingly.]

1[19.

Appeals 2[(20.

1. (1) An appeal from every original order passed under this Act or the rules made thereunder shall lie,-
   • (a) if the order is made by an Assessing Authority, to the Deputy Excise and Taxation Commissioner ;
   • (b) if the order is made by the Deputy Excise and Taxation Commissioner, to the Commissioner ;
   • (c) if the order is made by the Commissioner or any officer exercising the powers of the Commissioner, to a Tribunal.
2. (2) An order passed in appeal by a Deputy Excise and Taxation Commissioner or the Commissioner or any officer on whom the powers of the Commissioner are conferred shall be further appealable to a Tribunal.
3. (3) Every order of a Tribunal and subject only to such order, the order of the Commissioner or any officer exercising the powers of the Commissioner, or the order of the Deputy Excise and Taxation Commissioner or of the assessing authority if it was not challenged in appeal or revision shall be final.
4. (4) No appeal shall be entertained unless it is filed within sixty days from the date of communication of the order appealed against, or such longer period as the appellate authority may allow, for reasons to be recorded in writing.
5. (5) No appeal shall be entertained by an appellate authority unless such appeal is accompanied by satisfactory proof of the payment of the tax or of the penalty, if any, imposed or of both as the case may be : Provided that if such authority is satisfied that the dealer is unable to pay the tax assessed or the penalty, if any, imposed or both, he may, for reasons to be recorded in writing, entertain an appeal without the tax or penalty or both having been paid or after part payment of such tax or penalty or both.
6. (6) Subject to such rules of procedure as may be prescribed, an appellate authority may pass such order on appeal as it deems to be just and proper.]

1. (1) The Commissioner may of his own motion call for the record of any proceedings which are pending before, or have been disposed of by, any authority subordinate to him, for the purpose of satisfying himself as to the legality or propriety of such proceedings or order made therein and may pass such order in relation thereto as he may think fit.
2. (2) The State Government may by notification confer on any officer powers of the Commissioner under sub-section
3. (1) to be exercised subject to such conditions and in respect of such areas as may be specified in the notification.
4. (3) A Tribunal, on application made to it against an order of the Commissioner under sub-section
5. (1) within ninety days from the date of communication of the order, may call for and examine the record of any such case and pass such orders thereon as it thinks just and proper.
6. (4) No order shall be passed under this section which adversely affects any person unless such person has been given a reasonable opportunity of being heard.] 21-A. Rectification of mistakes The Commissioner or the officer on whom powers of the Commissioner under sub-section
7. (1) of section 21 have been conferred by the State Government may, at any time within two years from the date of any order passed by him, of his own motion rectify any mistake apparent from the record, and shall within a like period rectify any such mistake which has been brought to his notice by any person affected by such order: Provided that no such rectification shall be made if it has the effect of enhancing the tax or reducing the amount of refund, unless the Commissioner or the officer on whom powers of the Commissioner under sub-section
8. (1) of section 21 have been conferred by the State Government 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.
9. (2) The provisions of sub-section
10. (1) shall apply to the

1[(1) Within 60 days from the passing of an order under 2[section 20 or 21] by the 3[Tribunal], affecting any liability of any dealer to pay tax under this Act, such dealer or the Commissioner may, by application in writing accompanied by a fee of one hundred rupees in case the application is made by a dealer, require the 3[Tribunal] to refer to the High Court any question of law arising out of such order.]

1. (2) If for reasons to be recorded in writing, the 3[Tribunal] refuses to make such reference, the applicant may, within 30 days of such refusal either—
   • (a) withdraw his application (and if he does so, the fee paid shall be refunded) ; or
   • (b) apply to the High Court against such refusal.
2. (3) If upon the receipt of an application under clause
   • (b) of sub-section (2), the High Court is not satisfied with the correctness of the 3[Tribunal's] decision, it may require the 3[Tribunal] to state the case and refer it, and on the receipt of such requisition, the 3[Tribunal] shall state and refer the case accordingly.
3. (4) If the High Court is not satisfied that the statements in a case referred under this 1[section] are sufficient to enable it to determine the question raised thereby, it may refer the case back to the 2[Tribunal] to make such additions thereto or alterations therein as the court may direct in that behalf.
4. (5) The High Court upon the hearing of any such case shall decide the question of law raised thereby, and shall deliver its judgment thereon containing the grounds on which such decision is founded and shall send to the 2[Tribunal] a copy of such judgment under the seal of the court and the signature of the Registrar, and the 2[Tribunal] shall dispose of the case accordingly.
5. (6) Where a reference is made to the High Court under this section, the cost (including the disposal of the fee) shall be in the discretion of the court.
6. (7) The payment of the amount, if any, of the tax due in accordance with the order of the 2[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 the result of such reference, the excess tax paid shall be refunded in accordance with the provisions of section 12. 22-A. Power of [Tribunal or the Commissioner] and his Assistants to take evidence on oath etc 3[22-A. The 2[Tribunal or the Commissioner] or any person appointed to assist him under sub-section
7. (1) of section 3 shall, for the purposes of this Act, have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (V of 1908), when trying a suit, in respect of the following matters, namely :—
   • (a) enforcing the attendance of any person and examining him on oath or affirmation ;
   • (b) compelling the production of documents and impounding or detaining them ;
   • (c) issuing commissions for the examination of witnesses ;
   • (d) requiring or accepting proof of facts by affidavits ;
   • (e) such other powers as may be prescribed ; and any proceeding under this Act before the 1[Tribunal or the Commissioner] or any person appointed to assist him under sub-section
8. (1) of section 3 shall be deemed to be a "Judicial proceeding" within the meaning of sections 193 and 228 and for the purposes of section 199 of Indian Penal Code].

2[23.

1. (1) Whosoever contravenes, or fails to comply with, any of the provisions of this Act or the rules made thereunder or any order or direction made or given thereunder, shall, if no other penalty is provided under this Act for such contravention or failure, be liable to imposition of a penalty, not exceeding two thousand rupees, and where such contravention or failure is a continuing one, to a daily penalty not exceeding fifty rupees during the period of the continuance of the contravention or failure.
2. (2) An officer of the rank of a Deputy Excise and Taxation Commissioner appointed under sub-section
3. (1) of section 3 may, after affording to the dealer a reasonable opportunity of being heard, impose the penalty mentioned in sub-section (1)] 3[(3) * * * * *
4. (4) * * * * *
5. (5) * * * * *] 24. [Omitted]

No suit, prosecution or other legal proceedings shall lie against any officer or servant of the 5[State]

Returns, etc., to be confidential

1. (1) All particulars contained in any statement made, return furnished [or accounts or documents produced in accordance with this Act, or in any record of evidence given in the course of any proceedings under this Act other than proceedings before a Criminal Court, shall, save as provided in sub-section (3), be treated as confidential, and notwithstanding anything contained in the Indian Evidence Act, 1872, no court shall, save as aforesaid be entitled to require any officer of the 1[State] Government to produce before it any such statement, return, account, document or record or any part thereof, or to give evidence before it in respect thereof.
2. (2) If, save as provided in sub-section (3), any officer of the 1[State] Government discloses any of the particulars referred to in sub-section (1), he shall be punishable with imprisonment which may extend to six months, and shall also be liable to fine.
3. (3) Nothing in this section shall apply to the disclosure of any of the particulars referred to in sub-section
4. (1) for the purposes of a prosecution under the Indian Penal Code in respect of any such statement, return, accounts, documents or evidence, or for the purposes of a prosecution under this Act, 2[or for departmental use of the officials of the Income-tax Department of the Government of India] 3[or for Government Departments of other sister States of the Union of India].

1. (1) The 1[State] Government may, subject to the condition of previous publication, make rules for carrying out the purposes of this Act.
2. (2) In particular and without prejudice to the generality of the foregoing power, such rules may prescribe— 4[(a) the salaries, allowances and other conditions of service of the Presiding Officer of a Tribunal ;
   • (aa) the conditions and limitations subject to which a Tribunal shall award costs under sub-section
3. (11) of section 3-A] ;
   • (b) the further period after the date of expiry of three consecutive years referred to in sub-section
4. (3) of section 4 ;
   • (c) the taxable quantum for particular classes of dealers under clause 1[(c)] of sub-section
5. (5) of section 4 ; 2[(cc) the particulars to be contained in a declaration under sub-clause
   • (ii) of clause
   • (a) of sub-section
6. (2) of section 5 ; the form of such declaration, and the manner in which such declaration is to be furnished ;]
   • (d) the other sales, turnover in respect of which may be deducted from a dealer's gross turnover in computing his taxable turnover as defined in section 5 ;
   • (e) the authority to which applications for regis- tration under section 7 or section 8 shall be made;
   • (f) the procedure for the payment of fees in respect of, and other matters incidental to, the regis- tration of dealers and granting of certificates of registration, and the form of such certificate under section 7 or section 8 3[and the manner in which security shall be furnished under section 9.] 4[(g) the intervals at which the conditions subject to which a lump sum by way of composition may be accepted by the Commissioner from any dealer, the manner in which such lump sum is to be determined and the manner in which the tax under this Act shall be payable under section 10 ;]
   • (h) the returns to be furnished under sub-section 1[(3)] of section, 10, and dates by which, and the authority to which such returns shall be furnished ;
     • (i) the date by which returns for any period are to be furnished and the procedure to be followed for assessment under section 11 ;
   • (j) the manner in which refunds under section 12 shall be made ; 2[(k) the conditions, if any, for issue of direction under section 13 ;] 3[(l) the manner of authentication of account books under clause
   • (c) of sub-section
7. (2) of section 14 ;
   • (ll) the particulars of bills of sales or delivery notes referred to in sub-section
8. (2) of section 14B, the particulars of declaration to be given under sub- section
9. (3) of that section, the form of transit- slip (rahdari) referred to in the proviso to that sub-section and the conditions on which delivery of consignment of goods shall be taken under sub-section
10. (7) of that section ;]
    • (m) the restrictions and conditions subject to which the Commissioner may delegate his powers under section 15 ;
    • (n) the authority to which information shall be fur- nished under section 16 ;
    • (o) the manner in which appeals 4[***] may be preferred under section 20 ;
    • (p) the procedure for and other matters (including fees) incidental to, the disposal of appeals and applications for revisions under sections 20 and 21 ; 5[(pp) the authority by which and the manner in which cases may be transferred from one Asses- sing Authority to another and from one appel- late authority to another ;] 6[(q) and other matter which is to be or may be prescribed ;]
    • (r) the manner in which and the time within which, applications shall be made, information furni- shed, and notices served, under this Act ; 1[ the procedure for the cancellation and return of certificate of registration.] 2[(3) * * * *] 27-A. Transitional provisions 3[27-A. Turnover for the year 1949-50 shall be dealt with as under :—
11. (1) Separate returns shall be submitted by each dealer, one for the period from the 1st April, 1949 to the 30th April, 1949, and the others from the 1st May, 1949 to the 31st March, 1950, as may be prescribed.
12. (2) Each of these two periods shall be deemed to be a year for the purposes of assessment under this Act. (3)
    • (i) Notwithstanding the repeal of the Punjab General Sales Tax Act, 1941, for dealing with the turnovers for the period from the 1st April, 1949 to the 30th April, 1949, the first part of sub-section
13. (1) of section 3 of the repealed Act shall be deemed to be in force subject to the following :— There shall be charged on the turnover every year a tax at the following rates, that is to say—
    • (a) if the turnover exceeds one thousand but does not exceed two thousand rupees Three annas for every one hundred rupees or fraction thereof.
    • (b) If the turnover exceeds two thousand rupees Four annas for every one hundred rupees or fraction thereof.
      • (ii) The returns for the period from the 1st May, 1949 to the 31st March, 1950, shall be dealt with in accordance with!the provisions of this Act.] 27-B. 1]27-B. Notwithstanding anything contained in sub-section
14. (3) of section 4 and in sub-section
15. (4) of section 8,—
    • (a) the registration of a dealer mentioned in clause 2[(e)] of sub-section
16. (5) of section 4, effected before the 30th September, 1949, under section 7 on the ground that his gross turnover during the year 1948-49 exceeded 20,000 rupees shall be cancelled with effect from the 1st April, 1950, if his gross turnover during the year 1948-49 did not exceed 30,000 rupees and he applies for the cancellation of his registration certificate on or before the 31st December, 1949 ; and
    • (b) the registration of all dealers effected under section 8 before the 30th September,1949, shall stand cancelled with effect from the 1st April, 1950, and all such dealers shall surrender their registration certificates to the appropriate asses- sing authority on or before the 31st December, 1949.]

The Punjab General Sales Tax Act, 1941 (IV of 1941), is hereby repealed :

3[29.

1. (1) Notwithstanding anything contained in this Act,—
   • (a) a tax on the sale or purchase of goods shall not be imposed under this Act—
     • (i) where such sale or purchase takes place outside the State of Punjab ; or
     • (ii) where such sale or purchase takes place in course of import of the goods into, or export of the goods out of, the territory of India ;
   • (b) a tax on the sale or purchase of any goods shall not, after the 31st day of March, 1951, be impos- ed where such sale or purchase takes place in the course of inter-State trade or commerce except in so far as Parliament may by law other- wise provide. 4[(2) * * * *]

1[30.

1. (1) The State Government, if satisfied that it is necessary or expedient so to do in the interest of cottage industries, may by notification exempt any class of co- operative societies or persons from the payment of tax under this Act on the purchase or sale of any goods subject to such conditions as may be specified in such notification.
2. (2) Where a notification under sub-section
3. (1) has been issued by the State Government—
   • (a) a registered dealer shall not be entitled to charge tax on the sales made to such societies or per- sons ; and
   • (b) such sales shall not be included in the taxable turnover of such registered dealer notwithstan- ding anything to the contrary contained in sub- section
4. (2) of section 5.
5. (3) Every notification made under sub-section
6. (1) shall, as soon as may be after it is made, be laid before 2[ * * *] the State Legislature.]

3[31. The State Government, after giving by notifica- tion not less than 4[twenty days] notice of its intention so to do, may by notification add to, or delete from, Schedule C any goods, and thereupon Schedule C shall be deemed to be amended accordingly.]

[See section 2 (ff) ] (1) Cotton, that is to say, all kinds of cotton (indigenous or imported) in its unmanufactured state, whether ginned or unginned, baled, pressed or otherwise, but not including cotton waste. 4[(2) * * * * *]. (3) Oil seeds 5[including gro nd-nuts], that to say, seeds yield- ing non-volatile oils used for human consumption, or in industry, or in the manufacture of varnishes, soaps and the like, or in lubri- cation, and volatile oils used chiefly in medicines, perfumes, cosmetics and the like. 6[(4) * * * * *] 4[(5) * * * * *] 4[(6) * * * * *] 4[(7) * * * * *] 7[(8) Rice.] 7[(9) Paddy.] 8[(10) Bhabhar (Bugger).] 8[(11) Kahi.] 9[(12) Chillies.]