Imposition of tax.

(1) A tax at the rate specified in the Schedule shall be imposed and levied on all motor vehicles used or kept for use in Sikkim. Explanation--For the purposes of this Act,- (i) a person who keeps a motor vehicle of which the certificate of registration is current shall be deemed to keep such vehicle for use; and (ii) "use" included letting on hire otherwise than on a hire purchase. (2) The tax imposed under sub-section (1) shall be payable for the year in advance by the person by whom a motor vehicle is used or kept for use: Provided that Taxation Officer may allow payment of the tax for one or more quarterly periods at the rate, for each such quarterly periods, of one quarter of the tax payable for the year : Provided further that in the case of a motor vehicle registered outside Sikkim whether temporarily under section 25 of the Motor Vehicles Act, 1939 or otherwise, which is used or kept for use in Sikkim temporarily, the tax shall be payable for every week or part thereof, for which the motor vehicle is so used or kept for use in Sikkim, at the rate of one-fifty second part of the tax payable for the year, per week. (3) If the Taxation Officer is satisfied that the certificate of registration and the token delivered under section 10 on payment of the tax for the year in respect of a motor vehicle has been surrendered or that a motor vehicle has not been used or kept for use for any complete calender month in the year, he shall, on application made under section 6 refund or remit in respect of the said vehicle one-twelfth of the tax payable for the year for every complete calender month for which the said vehicle has not been used or kept for use : Provided that where a motor vehicle, other than a motor vehicle for the transport of goods or plying for hire for the carriage of passengers, has not been used for any period in Sikkim by reason of its being removed and kept outside Sikkim during such period, the Taxation Officer shall not refund or remit in respect of the said vehicle any portion of the tax for the quarterly period during which the said vehicle is so removed. (4) If any person fails to deliver a declaration or additional declaration in accordance with the provisions of section 7, the Taxation Officer may after making such inquiry as he thinks fit and after giving an opportunity to such person to be heard, require him to pay any tax or additional tax which the Taxation Officer may find such person liable to pay under the provisions of this Act and may also impose on him a penalty which may extend to half the amount of the tax to which he is found liable.