Chapter IV Chapter IV

Establishment of the Tashi Namgyal Academy Board 3 Establishment and 3. (1) On and from the appointed day there shall be established a Board to be 1 incorporation of called the Tashi Namgyal Academy Board. Board.

1. (2) The Board shall be a body corporate by the name aforesaid, having per- petual succession and a common seal, with power to acquire, hold and . dispose of property, both movable and immovable, and to contract, and shall by the same name sue and be sued.
2. (3) The Head office of the Board shall be at Gangtok in the State of Sikkim. Constitution of the 4. (1) The Board shall consist of the following members, namely :— Board.
   • (a) Minister for Education, Sikkim State, Chairman;
   • (b) Chief Secretary to the Government, Vice-Chairman; (¢) Secretary, Education Department of the Government, Member;
   • (d) Secretary, Finance Department of the Government, Member;
   • (e) Secretary, Law Department of the Government, Member; (fy Secretary, Establishment Department of the Government, Member; (9 Chief Engincer, SPWD (Buildings), Government of Sikkim, Member; (") The Principal, Government College, Gangtok, Member;
     • (i) - Representative of parents, Member;
   • (j) Representative of parents, Member;
   • (k) The Principal of the school.
3. (2) The Principal of the school shall function as the Secretary to the Board.
4. (3) The members specified in clauses (i) and (j) of sub-section (1) shall be elected in accordance with such procedure as may be prescribed and shall hold office for a term of five years. Removal and resig- 5. (1) The Board may, at any time, remove any member if it is proved that such nation of members. member is guilty of misusing his office for private profit or he is incapable of discharging his duties as a member due to mental or physical infirmity, 4
5. (2) The Board may remove from office any member other than an ex-officio . member who is absent without leave of the Board from more than three E . consecutive meetings thereof without cause sufficient, in the opinion of the Board, to exonerate his absence: « Provided that no member shall be removed form office under sub- sections (1) or (2) unless a reasonable opportunity has been given to 48 him to show cause against such removal.
6. (3) Any member (other than one who holds office in ex-officio capacity) may resign from office by giving notice in writing to the Chairman, and such resignation being accepted by the Chairman, he shall bod~omed : to have vacated his office with effect from the date of his resignation or such other later date as may be specified. 3 6. (1) The Board shall meet once a year in a meeting called Annual Meeting, Proceedings of the and such Annual Meeting for any year shall be held before the expiry of Board. three months from the end of the immediately preceding academic session of the school. The procedure for holding such meeting shall be such as may be prescribed.

() Atan Annual Meeting the Board shall consider the Annual Report pre-

sented to it by the Executive Committee including the audited accounts and auditor’s report relating to the immediately preceding year and pass the same without notification or pass the same with observations for cone sideration of the Executive Committee.

1. (3) In the Annual Meeting the Board shall appoint or reappoint an auditor as required under Section 7 (3).
2. (4) Inaddition to an Annual Meeting the Board may meet as often as is nece- ssary (such a meeting being called ‘Special Meeting) provided that R following conditions are satisfied :— i @ The proposal to hold any special meeting should originate from the Executive Committee except where a Special Meeting is summoned under Section 7 (4).
   • (i) Theagenda for the meeting should be circulated among all members of the Board at least seven days before the date of the proposed meeting.
   • (iii) There should be proper notice of the meeting to all members of the Board in accordance with procedure prescribed in respect of Annual Meeting,
   • (iv) Other procedural regulations regarding a Special Meeting shall be the same as in the case of an Annual Meeting.

Powers and Functions of the Board. 7 (1). The Board shall be the legal owner of the school and all its properties Board as owner and and the employer of all employees of the school including its Principal, employer.

1. (2) The Chairman shall be the appointing authority of all employees of the Property transactions. school including its Principal. The Board's prior sanction shall be ob- tained (in an Annual Meeting or a Special Meeting) by the Executive Committee before any immovable properties are acquired by outright purchase or disposed of by way of sale or otherwise, and such acquisitions and disposals shall be made in the name of the Board.
2. (3) The Board shall, in its Annual Meeting, appoint an auditor (which term Appointment of : includes a firm of auditors) who is qualified to audit Company Accounts, auditor. to audit the accounts of the school for the year in which the Annual Meeting is held: Provided that the same auditor shall not be appointed for more than three consecutive years.
3. (4) The Board may remove any member of the Executive Committee in a Removal of member Special Meeting summoned at the instance of the Chairman for proved A ZSxenitije misuse of power and grave infringement of the provisions of this Actand ~“OM7Hliee. the regulations made thereunder, and make such transitory provisions as it deems fit to remedy the vacancy thus caused.
4. (5) Anyalterations in the structure of the school of the type described below Certain alterations of shall be within the exclusive competence of the Board, and it may con- school it o Ld sider them in an Annual Meeting or a Special Meeting :— toon of Botte
   • (i) Change in the medium of instruction in the school,
   • (ii) Abolition or addition of class. (Provided that this does not apply to abolition or addition of a division or section of an existing class). . 4 i (iii) Change over of the affiliation of the school to a1y Board, Council or other body for Examinations to any other Board, Council or other body for Examinations.

Finance, Properties and Accounts

Transfer of school 8. (1) Onand from the appointed day, the land, buildings, furniture and equip-

property and other ments or any other assets, in which the school is on that day housed or, properties. as the case may be, which are on that day owned by the school or owned by the Government, but given over for the use or benefit of the school, shall stand transferred to, and vest in, the Board.

1. (2) The Government may, at any time, transfer to the Board, any land, build- ings or any other property, movable or immovable, either absolutely or on lease, for use and management by the Board to run the school and comply with the provisions of this Act. Id The TNA Board 9. (1) The Board shall have a fund to be called the Tashi Namgyal Academy Fund. Board Fund.
2. (2) The Board may accept grants, subventions, donations and gifts and loans from the Government or a local authority or any individual or body, whether incorporated or not, for all or any of the purposes of this Act.
3. (3) The Government may, from time to time, make grants to the Board including grant of part or whole of the amount required to meet the ex- penditure on establishment of the Board.
4. (4) All moneys received by or on behalf of the Board, all proceeds of sale of land or any other property; all rents, betterment charges and all interest, profits and other moneys accruing to the Board shall be deposited in the fund of the Board: Provided that the provisions of this sub-section shall not apply bk 2 to the TNA Capital Fund referred to in section 10, The TNA Captial 10. (1) The Government shall, on the date of commencement of this Act, or Fund. as soon thereafter as possible, transfer absolutely a sum of rupees five lacs which shall form the nucleus of the corpus of a fund to be created and known as the TNA Capital Fund, the income from which is to be exclusively used for purpose of acquisition of new capital assets (moveable or immovable) and the maintenance of the land and buildings of the school, The Government may, through periodical grants enhance the corpus of the said Fund to such limit as it may deem fit.
5. (2) The Government may, in respect of the Fund referred to in sub-section (1), lay down such rules regarding the custody and management of the said Fund as it deems fit, and such restrictions and stipulations as it deems fit to ensure that the corpus of the Fund is preserved and the income therefrom is utilised only for the purposes stated in the said sub-section. Application of the i. All property, fund and all other assets vested in the Board shall be held and Jind. applied by it subject to the provisions and for the purposes of this Act. Dower of Executive 12, (1) Subject to the provisions of sub-section (2) of section 7, all transactions Committee to nego- in money and property covered in this Chapter shall be entered into and ate cegarding carried out by the Excoutive Committee on behalf of the Board, and yransaciions: it shall have power to enter into and carry out such transactions with out prior reference to the Board: Provided that —
   • (a) all such transactions are within the competence of the Board; and
   • (b) all such transactions are reported to the Board in the immediately following Annual Meeting, | 4 [Explanation 1.—A "barter that is, sale by exchange of" goods shall be deemed to be a sale only when the exchange is based or worked out in terms of the value of the goods, exchanged.] 5 [ Explanation 2.—A sale of goods shall be deemed to have taken place in the State if it fulfils the requirements of sub-section (2) of section 4 of the Central Sales Tax Act, s 1956; ] 74 of 1956.
     • • (n) “sale price” means the amount payable to a dealer © as consideration for the sale of goods, less any sum ao allowed as cash discount but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before the delivery thereof other than the cost of freight or delivery or the cost of installation in cases where such cost is separately charged; Explanation 1.— The term cash discount shall refer only to the discount allowed by the seller to the buyer for the pro- mpt or prior or early payment of sale price according to the practice prevailing in the trade; Explanation 2.—The tax levied under this Act on the transaction of sale shall not form part of the sale price for the purpose of this Act, only if it is actually leviable under this Act on the seller and is recovered by the seller from the . buyer by showing it separately as such in the cash memos, in- voices or other sale memoranda; 6 [ “Explanation 3.— In respect of goods delivered on hire purchase or any system of payment by instalments, the E sale price on the date of such delivery shall, for the purposes of this Act, be determined in such manner as may be prescri- » bed.” ] 7 [ “Explanation 4.—The sale price shall include the excise E duty, fee or any other levies on the goods, under any Central or State law for the time being in force, made at the time of :

⁴ Renumbered by the Sikkim Sales Tax (Amendment) Act No. 4 of 1986 w. e. f. 1/4/86

⁵ Renumbered by the Sikkim Sales Tax (Amendment) Act No. 4 of 1986 w. e. f. 6/4/86

⁷ Inserted by the Sikkim Sales Tax (Amendment) Act No. 4 of 1986 w. e. f. 1/4/86

or before the delivery of the goods to the buyer whether such duty, fee or other levy is paid by the purchaser of the goods to the seller along with the consideration for the sale or direc- tly to the Government.”]

1. (0) “Sikkim” means the territory comprised in the State of Sikkim;
   • (p) “State Government” means the Government of Sikkim; E
   • (q) “Tax” means tax payable under this Act; hd
   • (r) “turnover” used in relation to any period means the ag- a gregate of sale price or part of sale price receivable or if * a dealer so elects, actually received by the dealer during such period after deducting the amounts if any, refunded by the dealer in respect of any goods returned by the purchaser within such period as may be prescribed: Provided that an election as aforesaid once made shall not be altered except with the permission of the Commis sioner and on such terms and conditions as he may think fit to impose; Explanation.—The turnover of sales shall include amounts realised by a dealer by sale of surplus, unserviceable and discarded goods, fixed or other assets of the business, bye-products and subsidiary products of manufature or processing but shall not include sales in a canteen owned and run by the dealer for the benefit of his workman or labourers;
   • (s) “year” means the financial year commencing on the first day of April and ending on the 31st day of March next . following. [3 = p CHAPTER II

or before the delivery of the goods to the buyer whether such duty, fee or other levy is paid by the purchaser of the goods to the seller along with the consideration for the sale or direc- tly to the Government.”]

1. (0) “Sikkim” means the territory comprised in the State of Sikkim;
   • (p) “State Government” means the Government of Sikkim; E
   • (q) “Tax” means tax payable under this Act; hd
   • (r) “turnover” used in relation to any period means the ag- a gregate of sale price or part of sale price receivable or if * a dealer so elects, actually received by the dealer during such period after deducting the amounts if any, refunded by the dealer in respect of any goods returned by the purchaser within such period as may be prescribed: Provided that an election as aforesaid once made shall not be altered except with the permission of the Commis sioner and on such terms and conditions as he may think fit to impose; Explanation.—The turnover of sales shall include amounts realised by a dealer by sale of surplus, unserviceable and discarded goods, fixed or other assets of the business, bye-products and subsidiary products of manufature or processing but shall not include sales in a canteen owned and run by the dealer for the benefit of his workman or labourers;
   • (s) “year” means the financial year commencing on the first day of April and ending on the 31st day of March next . following. [3 = p CHAPTER II Taxation authorities )

1. (1) For carrying out the purposes of this Act, the State Taxing Authorities. Government may appoint a person to be Commissioner of A Commercial Taxes and such other persons with such desig- nation to assist him as may be necessary and as may be i specified in this behalf by the State Government by noti- fication.
2. (2) The Commissioner and other persons appointed under sub-section (1) shall exercise such powers as may be pres- cribed and perform such duties as are imposed upon them by this Act or rules made thereunder within such areas in the State as may be specified in this behalf by the State Government by notification.
3. (3) All persons appointed under sub-section (1) shall be 45 of 1860 i deemed to be public servants within the meaning of section
   • • 21 of the Indian Penal Code. i a CHAPTER ITI a Incidence of Taxes 4. There shall be paid by every dealer who sells 8/ goods manufac- Incidence of tured, imported, produced or purchased by him in the State, taxation. a tax on sales made on and from the date of commencement of this Act. 5. (1) The tax payable by a dealer under this Act shall be levied Rate of tax. on taxable turnover at the following rates,—
   • (a) in respect of goods specified in Schedule II, at the i rate of ten paise in the rupee;
   • (b) in respect of declared goods, at such ratc not excee ding four paise in the rupee as the State Government may, from time to time, by notification, specify;
   • (c) in respect of any other goods at such rate not exce- eding five paise in the rupee as the State Government may, from time to time, by notification, specify ;
4. (2) Notwithstanding anything contained in sub-section (1), o the State Government may, in public interest, by notifica- tion and subject to such conditions as may be specified 2 therein, direct that no tax or a lower rate of tax shall be payable in respect of any specified transactions or goods or class of dealers and such notification may be given such retrospective or prospective effect as may be specified therein.
5. (3) For the purposes of this Act, the expression ‘taxable ” turnover’ means that part of dealer's gross turnover during the prescribed period in any year which remains after de- ducting therefrom— 12/5/1983.
   • (a) his turnover during that period on—
     • (i) the sales, at the subsequent stages of sales, of such goods as are specified, by a notification, issued under section 6 to be subject to tax atthe first point in the series of sales in Sikkim in respect of which tax due under this Act is shown to have been paid to the sa- tisfaction of the prescribed authority;
     • (ii) the sales of goods exempted under section 8; w
     • (iii) the transactions not liable to tax under section 9; &
     • (iv) the sales of goods which are proved to the satis— i faction of the Commissioner to have already been sub- jected to tax under this . Act;
     • (v) the sales to a registered dealer —
   • (a) of goods of the class or classes specified in the certi- ficate of registration of such dealer, as being intended for use by him as raw materials in the manufacture in the State of any goods, other than goods declared as tax-free under section 8,— a
6. (1) for sale inside the State ; or
7. (2) for sale in the course of inter-State trade or comme- ree, being sale occasioning or effected by transfer of docu- : ments of title to such goods during the movement of such goods from the State; or
8. (3) for sale in the course of export outside India being a sale occasioning the movement of such goods from the State, or a sale effected by transfer of documents of title 5 to such goods during the movement of such goods from the State, to a place outside India and after the goods % crossed the customs frontiers of India; or
   • (b) of the goods other than those notified under section i 6 as taxable at the first point in the series of sales, of the class or classes specified in the certificate of registration of such a dealer as being intended for resale by him im the State or for sale in the course of inter-State trade or commerce or in the course of export outside India in the manner specified A in item (2) or item (3) of item (a) of this sub-clause as the case may be; and
   • (c) of containers ‘or other materials for the packing of goods of the class or classes specified in the certificate of - registration of such dealer, other than declared goods inten- ded for sale or re-sale: Provided that no deduction in respect of sale referred to in sub-clause (v) shall be allowed unless a true declara- tion duly filled and signed by the registered dealer to whom e the goods are sold and containing the prescribed particulars & in the prescribed form is furnished in the prescribed manner and within the prescribed time, by the dealer who sells © the goods: Provided further that where any goods are purchased by a registered dealer for any of the purposes mentioned in sub-clause (v) but are utilised by him for a different © purpose, the price of the goods so purchased shall be allowed to be deducted from the gross turnover of the selling dealer but shall be included in the taxable turnover of the purchasing dealer;
     • (vi) such other transactions as are exempted from payment
       • • of tax by a notification issued under sub-section (2). 6. Notwithstanding anything contained in this Act, the Gov- Powers of Government ernment may, by notification in the Official Gazette, specify the to prescribe point at point of sale at which any goods or class of goods may be which goods may be taxed. taxed, 7. The burden of proving that the dealer is not liable to pay Burden of proof. tax under this Act in respect of any sale effected by him, shall lie on him. = 8. (1) No tax shall be payable under this Act on the sale Tax-free goods. % of goods specified in Schedule T subject to the condi- o tions and exceptions, if any, set out therein. d (2) The State Government, after giving by notification such previous notice as it considers reasonable of its intention so to do, may add to or omit from, or otherwise amend Schedule I and thereupon the said Schedule shall be deemed to be amended accordingly: Provided that the said notification may be given such retrospective ‘or prospective effect as may be specified therein, |

⁸ Inserted by the Sikkim Sales Tax (Amendment) Act No. 4 of 1986 with effect from

be deemed to impose or authorise the imposition of tax purchases not liable on any sale or purchase of any goods when such sale or to ax. purchase takes place—

1. (i) in the course of inter-State trade or commerce; or
2. (ii) outside the State; or

1. (iif) in the course of import of goods into, or export of goods out of, the territory of India.