The Punjab Motor Spirit (Taxation of Sales) Act, 1939

1939: Pb. Act I.] MOTOR SPIRIT (TAXATION 35 OF SALES) THE PUNJAB MOTOR SPIRIT (TAXATION OF SALES) ACT, 1939. CONTENTS. PREAMBLE. I SECTIONS. )

(1) This Act may be called the Punjab Motor Spirit (Taxation of Sales) Act, 1939. (2) It shall come into force on such date as the Governor may by notification appoint.

In this Act unless there be anything repugnant in the context— (a) "Government" means the Central Government; (b) "magistrate" means any magistrate exercising powers not less than those of a magistrate of the second class; (c) "penalty" means a penalty imposed under section 9 of this Act; (d) [Omitted] (e) "Petrol Taxation Officer" means the Petrol Taxation officer under this Act with reference to any particular areas; (f) "prescribed" means prescribed by rules made under this Act; (g) "retail dealer" means any person who, on commission or otherwise, sells any motor spirit to a consumer or to any other person for any purpose other than resale, or keeps any motor spirit for sale to consumers or to any other person for purposes other than resale; (h) "retail sale" means a sale by a retail dealer of any motor spirit to a consumer or to any other person for any purpose other than resale; (i) "sale" and "sell" include exchange, barter and also the consumption of motor spirit by the retail dealer himself; (j) "vehicle" includes any carriage or conveyance used on land or in water or air; (k) "Excise and Taxation Commissioner" means the person for the time being appointed by Government to perform all or any of the functions and exercise all or any of the powers of the Excise and Taxation Commissioner; and (l) "Deputy Excise and Taxation Commissioner" means the person for the time being appointed by Government to perform all or any of the functions and exercise all or any of the powers of the Deputy Excise and Taxation Commissioner in any specified local area.

(1) There shall be levied and paid to the Central Government on all retail sales of motor spirit a tax at the rate of seven naye paise for each litre of motor spirit. (2) The Government may by notification exempt the retail sale of motor spirit from the levy of tax under this Act either wholly or partially and subject to such conditions as it may think fit to impose.

When the payment of any tax or penalty under this Act falls due the amount may be recovered as if it were an arrear of land revenue.

When the payment of any tax or penalty under this Act falls due the amount may be recovered as if it were an arrear of land revenue. If any question arises whether any sum is recoverable under this Act it shall be determined by the Petrol Taxation Officer for the area where the sale take place. No such order shall be made final until an opportunity has been given to any person concerned to appear in person or by duly authorised agent before the Petrol Taxation Officer; but once the order has been made final a certificate given under the hand of the Petrol Taxation Officer, shall, subject to the provisions of this Act with regard to appeal, review and revision, be final and conclusive proof both as to the amount of the tax or penalty which is due and as to the person from whom it is due.

After the expiry of a period of two months from the commencement of this Act no person shall carry on business as a retail dealer unless he is in possession of a valid license.

(1) Except as provided hereunder, a license shall be granted to any person applying in the prescribed form to the Petrol Taxation Officer and shall be renewed annually. (3) The grant or renewal of a license may be refused if any previous license of the applicant or of any person with whom the applicant has been working as a partner has been cancelled or if the applicant or any person with whom he has been working as a partner has been convicted of any offence relating to the motor spirit or if the Petrol Taxation Officer is satisfied that the application has been made only for the purpose of enabling any person to carry on business as a retail dealer without a license. (4) No license under this Act except in the case of a licence for the retail sale of powerine or diesel oil shall be granted to any person who does not hold a license for the storage of dangerous petroleum under the Petroleum Act, 1934, and if any such license granted under that Act is cancelled, suspened or is not remewed, any license granted under this Act to the holder thereof shall be deemed to be cancelled, suspended or not renewed, as the case may be. (5) If an application for the renewal of a license under this Act is made within such time before its expiry as may be prescribed by Government, the holder of the license shall be deemed to be in possession of a valid license until the license is renewed or until he is informed that the renewal of the license has been refused.

(1) The Petrol Taxation Officer may after giving the licensee an opportunity to be heard, suspend or cancel a license for a breach of any of the conditions which may be prescribed as the conditions subject to which a license is granted. (2) A licensee shall not be entitled to any compensation for the suspension or cancellation of his license under the foregoing sub-section. (3) A license cancelled or suspended under this section may be restored by the Petrol Taxation Officer on payment of such fee as may be prescribed.

If any tax due under this Act is not paid within the time fixed by notice issued in the prescribed manner, the Petrol Taxation Officer may impose a penalty not exceeding the amount of the tax due, in addition to the tax payable: Provided that no such penalty shall be imposed unless the person on whom it is proposed to impose the penalty is given an opportunity of being heard by the Petrol Taxation Officer or his authorised agent.

Whoever contravenes the provisions of Section 6 shall be punishable with fine which may extend to one thousand rupees or to a sum double the amount of the tax on the sale of any motor spirit conducted by such person or on his behalf, whichever is greater.

(1) A Magistrate may issue a warrant— (a) for the arrest of any person whom he has reason to believe to have committed an offence punishable under this Act, or (b) for the search, whether by day or by night, of any building, vessel, vehicle or place in which he has reason to believe any motor spirit is sold or kept for sale in contravention of this Act.

Searches made under the provisions of this Act shall be made in accordance with the provisions of the Code of Criminal Procedure, 1898.

The provisions of section 61 of the Code of Criminal Procedure, 1898, shall apply to all arrests without warrant made under the provisions of this Act.

Every person employed by the Government, by any local body or by the Court of Wards, every village headman, village accountant or village watchman shall give immediate information to the Excise and Taxation Officer of any offence or of the intention to commit any offence punishable under this Act which may come to his knowledge.

(1) Every officer of the Excise and Taxation Department not below such rank as may be prescribed shall within the area for which he is appointed, have power to investigate all offences punishable under this Act. (2) Every such officer shall, in the conduct of such investigation exercise the powers conferred by the Code of Criminal Procedure, 1898, upon an officer in charge of a police station for the investigation of a cognizable offence. (3) Every such officer may enter at any reasonable time the premises of any retail dealer and with or without notice examine and take copies or extracts from any account books or registers for the purpose of testing the accuracy of any prescribed returns or of informing himself as to any particulars regarding which information is required for the purposes of this Act or of any rules thereunder. (4) Every such officer may detain and arrest any person whom he has reason to believe to be guilty of any offence punishable under this Act.

All offences punishable under this Act shall be bailable.

Any officer or person exercising powers under this Act who— (a) without reasonable ground of suspicion, enters or searches, or causes to be entered or searched, any building, vessel, vehicle or place; or (b) vexatiously and unnecessarily detains, searches or arrests any person, shall on conviction be punishable with fine which may extend to five hundred rupees.

The powers of Government to appoint any person or to invest any person with any authority prescribed by the Act may be exercised by the Excise and Taxation Commissioner, subject to the orders of Government.

(1) Any civil or criminal proceedings instituted against any person in respect of any act done or purporting to be done in the exercise of any duty under this Act shall be dismissed if the act was done, in good faith, or intended to be done, under this Act, unless the suit or prosecution has been instituted within six months from the date of the act complained of.

(1) Any person aggrieved by any order under this Act or rules made thereunder, may appeal— (a) to the Commissioner or such other officer as may be empowered in this behalf under this Act. (2) Every order passed in appeal under this section shall, subject to the powers of revision conferred by sub-section (3), be final. (3) The Excise and Taxation Commissioner may at any time, call for and examine the record of any order of or the proceedings recorded by, any officer or person for the purpose of satisfying himself as to the legality or propriety of such order passed by, or as to the regularity of such proceedings of such officer or person and may pass such order in reference thereto as he thinks fit.

Any order made under this Act, other than an order made by a criminal court, may be reviewed by the officer making it or his successor, but not to the disadvantage of the person against whom it is made, unless he has done anything to mislead the officer passing the order.

(1) Government may make rules to carry out all or any of the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power, Government may make rules for the purpose of— (a) the recovery of the tax leviable under section 3 including the fixing of the time when the tax is to be paid, (b) the fixing of license fees, (c) imposing on retail dealers the duty of furnishing returns and of keeping records and registers of stocks and daily sales prescribing forms for such returns, and register of stocks and daily sales and the particulars to be contained therein, respectively, and the manner in which the same are to be verified and the period within which such returns must be submitted, (d) the localities in which motor spirit may be sold, the assessment of tax and the issue of notices requiring payment and for the recovery of unpaid tax, (e) prescribing or providing for or restricting the assignment or transfer of licenses and the manner in which licenses granted to firms are to operate during the period of or on the dissolution of a partnership, (f) prescribing the arrangements to be made when a licensee dies or becomes subject to a legal disability, the period during which, and the persons by whom, the business of such a licensee may be carried on without a license, (g) requiring the production of licenses on demand, and (h) prescribing the period (which shall not be less than one month from the date of the order). (4) All rules made under this Act shall be subject to the condition of previous publication.