The Tashi Namgyal Academy Board Act, 1983

9% SIKKIM — & : y ® Eo © GOVERNMENT gil GAZETTE EXTRACRDINARY PUBLISHED BY AUTHORITY ! No. 56 Gangtok, Wednesday, April 6, 1983. . pak GOVERNMENT OF SIKKIM - LAW DEPARTMENT GANGTOK NOTIFICATION No. 8/LD/1983. Dated the 6th April, 1983. The following Act of the Sikkim Legislative Assembly having received the assent of ‘the Governor on 4th day of April, 1983,'is hereby published for general information:— THE TASHI NAMGYAL ACADEMY BOARD ACT, 1983 (ACT NO, 8 OF 1983) A ACT i [4.4.1983] to provide for the establishment of a Board for managing the affairs of the school Jnown as the Tashi Namgyal Academy, Gangtok, and its properties and for matters co- nnected therewith. BE it enacted by the Legislative Assembly of the State of Sikkim in the Thirty= fourth Year of the Republic of India as follows: —

Definitions. po (1) This Act may be called the Tashi Namgyal Academy Board Act, 1983, Short title and commencement. (2) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint. (3) “appointed day” means the date of commencement of this Act; (b) “appointing authority” means the Chairman; (6) “auditor” means auditor appointed under section 7 (3); (d) “Board” means the Tashi Namgyal Academy Board established under section 3; (¢) *“Chairman’’ means the Chairman of the Tashi Namgyal Academy Board; : i 7 i . hg i . [0] Executive Committee’ means the Executive Committee constituted under section 13; (© “Government” means the State Government of Sikkim; (h) “Fund” means the Tashi Namgyal Academy Board Fund referred to in section 9; () “prescribed” means prescribed by regulations made by the Board under section 20; () “President” means President of the Executive Committee; (k) “‘school”” means Tashi Namgyal Academy; [0] “‘Secretary’’ means Secretary of the Board or the Exccutive Committee, as the case may be,

1. (2) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.

1. (3) “appointed day” means the date of commencement of this Act;
   • (b) “appointing authority” means the Chairman;
2. (6) “auditor” means auditor appointed under section 7 (3);
   • (d) “Board” means the Tashi Namgyal Academy Board established under section 3;

(¢) *“Chairman’’ means the Chairman of the Tashi Namgyal Academy Board;

: i 7 i . hg i . [0] Executive Committee’ means the Executive Committee constituted under section 13; (© “Government” means the State Government of Sikkim;

1. (h) “Fund” means the Tashi Namgyal Academy Board Fund referred to in section 9; () “prescribed” means prescribed by regulations made by the Board under section 20; () “President” means President of the Executive Committee;
2. (k) “‘school”” means Tashi Namgyal Academy; [0] “‘Secretary’’ means Secretary of the Board or the Exccutive Committee, as the case may be,

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.

1. (1) Every dealer liable to pay tax under this Act shall Registration of apply, within 30 days of his becoming so liable, to the dealers. prescribed authority for registration under this Act.
2. (2) No dealer liable to pay tax under this Act, shall sell or purchase goods unless he is in possession of a valid registration certificate granted to him by or on behalf of the prescribed authority or has applied for such regis- tration within the time specified in sub-section (1) and ‘ his application has not been finally disposed of by the said authority.
3. (3) The prescribed authority may, on receipt of application in the prescribed form from a dealer for registration, and on being satisfied that the application is in order, grant registration from such date as may be specified, to such dealer: Provided that the said authority granting the certifi s cate may demand such security from the dealer as may be prescribed before the registration is granted to him: % Provided further that no application for registration . made by a dealer shall be refused, or partly granted un- less he has been given a reasonable opportunity of being heard before the order is passed. 4) If the prescribed authority is satisfied that a dealer liable to pay tax under this Act has failed to apply for and get himself registered, it may, by a notice in writing, k dircet the dealer to apply for and get himself registered within 15 days of the service of the notice, failing which the dealer shall be liable to pay a penalty of rupees tw- enty-five for each day's delay after the expiry of the said period of 15 days: Provided that the said authority may, on an application E by the dealer and for reasons to be recorded in writing, reduce or waive the penalty, if it is satisfied that the de- a lay has been caused by reasons beyond the control of the a dealer. he (5) The registration certificate shall be in the preseribed " form and contain such particulars as may be prescribed. The prescribed authority may on its own motion for re— sons to be recorded in writing or on an application by the dealer, cancel, vary, modify, or amend any registra— tion ccitificate granted under sub-section 5: Provided that a registration certificate shall cease to be in force when the dealer has ceased to be liable to pay tax under this Act or his business has been closed : ” Provided further that when the registration certifi- cate is cancelled, varied, modified or amended otherwise than on application by dealer or when the application ma- de by the dealer for the purpose is proposed to be reje- cted in whole or in part, a reasonable opportunity of being heard or to show cause against the proposed acti- on shall be gwen to the dealer.
4. (7) The registration certificate granted to a dealer shall not be transferable and if the business to which it re~ s lates is transferred to another dealer, then that other de- aler shall apply and get himself registered under sub- il section (1) and (2) unless he is already registered.

1. (1) Every registered dealer shall furnish such returns Returns and : for such periods in such form, to such authority and wi- payment of tax. thin such time as may be prescribed: Provided that if a dealer, having furnished a return 3 discovers any omission, error or wrong statement therein, he may furnish a revised return in such manner as may be directed by the aforesaid authority at any time before the said authority passes the order determining the amo- unt of tax payable by the dealer for the period for which p the return has been furnished : Provided further that the said authority may, for - reasons to be recorded and after giving the dealer a rea- . sonable opportunity of being heard, refuse to take the revised return into consideration if it is satisfied that the oO original or the revised return was deliberately false and “ it was furnished with intent to defraud the State Govern- ment of its revenue. Explanation.—A dealer who is granted registration from any particular date shall also be liable after the grant of such registration, to furnish return also for the period prior to such date during which he was liable to pay tax under this Act, in such manner and within such time as may be prescribed.
2. (2) The dealer shall, before furnishing any return or revi- g sed return referred to in sub-section (1) pay to the Go- vernment in such manner and within such time as may = be prescribed the amount of tax due under this Act accor- ding to the return or the revised return, as the case may be, and furnish along with the return or the revised return, such proof of the payment of tax due as may be prescri- bed, and any such return or revised return if not accom- panied by any such proof of payment shall be deemed invalid and treated as if it has not been furnished.
3. (3) If a registered dealer fails, without reasonable cause " to furnish any valid return within the time prescribed or 5 within such further time as may be allowed on application, by the prescribed authority, a penalty at the rate not a exceeding rupees five for each day of delay shall be im- posed without prejudice to any action which is or may be taken under any of the other provisions of this Act. N

the amount of tax paid by the dealer within the time Rebate, s prescribed under sub-section (2) of section 11 :

| Provided that where the amount of tax finally asse- ssed on the dealer is less than the tax paid by the dea- ler, the rebate shall be allowed only on the amount so assessed. 13. (1) If the prescribed authority is satisfied that the retu- rn of turnover furnished by a dealer is correct and com- Procedure in plete, it may, without requiring the presence of the dealer assessment and . or production of any further evidence by him, determine re-assessment. a the amount of tax due from him. hd (2) (a) If the prescribed authority is not satisfied as . aforesaid but requires the presence of the dealer or the production of evidence by him, it may serve on such dealer a notice in the prescribed form requiring him or his representative to attend and produce or cause to be produced on a date to be specified, any evidence that such dealer may rely on in support of his return.

1. (b) On the date specified in the notice issued under clause (a) or on such other date as may be fixed
   • • by the prescribed authority under intimation to the dealer, and after hearing or examining or taking into consideration such evidence as the dealer may produce and such other evidence as the said auth- ority may require on specified points, it shall by an order in writing, assess and determine the tax payable by the dealer : Provided that no evidence, not produced by or on behalf of the dealer, shall be taken into consideration ¥ without giving a reasonable opportunity to the dealer : to rebut such evidence. eo (3) If a registered dealer fails to— . (a) furnish any valid return of turnover as required in sub-section (1) of section 11; or
   • • (b) comply with the notice issued under sub-section

1. (2) of this section; or
   • (c) satisfy the assessing authority about the correct- ness of the returns furnished ; or 4 |
   • (d) appear or produce or cause to be produced evi- dence on the date specified under sub-section (2); the prescribed authority shall, after giving a reasonable opportunity to the dealer of being heard, determine the taxable turnover of the dealer to the best of its judg- ment and assess the tax on the basis of such determina tion and may, in addition, impose penalty of an amount not exceeding one half of the amount of tax so assessed: ec © Provided that no penalty under this sub-section shall w be imposed unless the prescribed authority is satisfied that the Ll failure of the dealer was wilful, deliberate or unjustified and unless a reasonable opportunity of being heard is given to the dealer: Provided further that in cases covered by clause (a) of this sub-section, no proceedings for assessment shall be initiated after the expiry of four years from the expiry of the relevant period due for assessment or in cases in which the assessment is made as a result of an order in appeal, " revision or review, after the expiry of two years from the date of such order. "
2. (4) If upon information received, the prescribed authority + is satisfied that a dealer liable to pay tax under this Act in respect of any period wilfully failed to apply for re- gistration under sub-section (1) of section 10 or having applied, wilfully failed to furnish any particulars or infor- mation required for the purpose of registration or having been registered fails to furnish returns within the period a prescribed under sub-section (1) of section 11, the said a authority shall, after giving the dealer a reasonable oppor- “ tunity of being heard, assess, according to its best judg- ment, the amount of tax due from the dealer for such 3 period or any subsequent periods and in addition, may impose a penalty of an amount not exceeding one half of the amount of tax so assessed : Provided that no proceedings under this sub-section shall be initiated after four years from the expiry of such period. Explanation.—For the purpose of sub-section (3) or sub-section (4), as the case may be, the proceedings shall be deemed to have been initiated when a notice therefor is served or deemed to have been served on the dealer.
3. (5) If upon information which has come into possession, the prescribed authority has reason to believe than any turnover of a registered dealer in respect of any period has for any reason escaped assessment or was under-asse- a ssed or assessed at a rate or rates lower than the rate 2 or rates correctly applicable, or any deduction from $urn- o over had been wrongly made, it shall, within six years of © the expiry of such period, serve on the dealer a notice in the prescribed Form and proceed to assess or reassess the amount of tax due from the dealer in respect of such turnover in the manner specified by or under this section : Provided that the amount of tax shall be assessed or re-assessed after allowing such deduction and applying the same rate of tax as was admissible during the said period : Provided further that the said authority may, after giving k) reasonable opportunity to the dealer of being heard, im- pose a penalty not exceeding the amount of extra tax found leviable in the proceedings under this sub-section, if it is satisfied that the escape from assessment or under- assessment had been caused by the deliberate and wilful failure on the part of the dealer—
   • (a) to disclose, at the time of original assessment the particulars of such turnover; or
   • (b) to furnish correct particulars. 14. (1) The tax admitted by the dealer to be due in any return Procedure of payment
     • • or revised return furnished by him under section 11 shall of tax or penalty, i} be paid in the mann:r prescribed by or under sub-section . (2) of that section.
4. (2) The amount of the tax and penalty assessed as due from the dealer under sub-section (3) of section 11 or o under section 13 after deducting any amount paid by him along with the return under sub-section (2) of section 11 shall be paid by him in such manner and within such time as may be specified in the notice of demand in the prescribed Form issued by the prescribed authority; the date so specified being not less than 30 days from the date of service of the said notice: Provided that the said authority may, in its discretion and for reasons to be recorded, on application by the dealer extend the date for such payment or allow the payment to be made in such instalments as may be determined by it.
5. (3) If a dealer has failed, without reasonable cause, to pi make payment of any amount of tax together with the ® penalty, if any, by the date specified in the notice issued o under sub-section (2) or by the date extended under the o proviso thereto, interest at ten per cent per annnm shall accrue and be charged on such amount from such date and such interest shall be treated as if it were tax due under this Act and shall be paid by the dealer in the prescribed manner : Provided that interest shall not accrue or be charged on any amount the recovery of which is stayed under sub-section (5) during the period the stay operates.
6. (4) Any amount of tax, penalty or interest due from a i dealer, which remains unpaid may be recovered on appli- r cation by the prescribed authority to the Judicial Magi- strate of the first class who shall realise it as if it we- re a fine imposed by him: Provided that where, during the proceedings under this sub-section, the amount of tax, penalty or interest due from the dealer is reduced as a result of appeal or oth- erwise, the prescribed authority shall inform the dealer and 5 the authority before whom the proceedings are pending, and the amount so reduced and the reduced amount shall be % deemed to be substituted for the amount originally intimated = to the authority. &
7. (5) Where an appeal against or an application for revi- sion of the assessment of tax or levy of penalty or in- terest is entertained, the appellate or the revisional autho- % tity as the case may be, may on application stay recovery of the tax, penalty or interest in whole or in part, subject to such conditions as it may impose till such date as it may direct © Provided that tHe stay of recovery so granted shall stand vacated on the date the appeal or the application for revision is finally decided or on such other date as the appellate or the revisional authority may direct.
8. (6) No such proceedings for the recovery of tax under this section shall be commenced after the expiry of twe- Ive years from the date on which the assessment was © made : id Provided that where the assessment was under appeal o or under any other proceedings under this Act, the afore= e said period of limitation shall commence from the date the appeal or other proceedings were terminated. 15. (1) No person other than a registered dealer shall collect Person authorised or recover from any person any amount towards tax or to collect tax purporting to be tax under this Act on the sale of goods. from purchasers.
9. (2) No registered dealers shall collect from any person any such amount except in a case in which, and to the extent to which, such dealer is liable to pay tax under this Act : Provided that where a registered dealer is in doubt about his liability, he may collect and keep in deposit the tax so collected towards his anticipated liability of tax; but shall refund the deposit to the person from wh- om it was collected or to his successors or assignees, if any, to the extent upto which it is finally determined in the proceedings under this Act, that the dealer is held not so liable.
10. (3) Nothing contained in sub-section (1) or sub-section (2) ¥ shall relieve a registered dealer from his liability for the a tax under this Act. ps i“ 16. (1) Subject to such rules as may be made the amount of tax. Procedure when M penalty or interest paid in excess of the amount finally wx is paid in determined as payable by the dealer under this Act, shall excess. be refunded to him, on his application within 60 days of § the date on which the applicaton is filed by him: Provided that such application shall not be enter- tained unless it is filed before the prescribed authority within twelve months from the date on which the order of assessment was passed : . Provided further that where the assessment was un- der appeal, revision or any other proceedings under this Act, the said period of limitation shall commence from the date on which the order in appeal, revision or other proceedings is passed : Provided also that any dealer may, by application, request or the prescribed authority may, on its own mo- tion, set off the refund due against any other dues of the dealer under this Act or under any other Act. = @
11. (2) Where a tax has been levied under this Act in res- pect of sales or purchases inside the State of any declared a good sand such goods are subsequently sold in the course of > inter-State trade or commerce, the tax so levied shall be re-imbursed to the person making such sale in the course of inter-State trade or commerce, in such manner and subject to such conditions as may be prescribed : Provided that no such reimbursement shall be made unless an application in writing is made before the pres- cribed authority under this Act within twelve months of the date on which the inter-State sale is made, which pe- riod may be extended for sufficient cause by the said au- " thority by such time as may be considered necessary by it for reasons to be recorded in writing. . 9 [ “(3) where any goods are delivered under any agree- ment of hire-purchase or of any system of payment by instalments and tax under this Act has been levied on the dealer who made the delivery of the said goods and such goods are returned to the said dealer at any time duri- ng which the agreement of hire-purchase subsists, the proportionate amount of tax levied on the unpaid instal- ments of sale price shall be refunded to the said dealer: - Provided that no such refund shall be admissible un- a less a claim therefor is filed before the prescribed autho- rity in such manner and within such time as may be 5 prescribed. | 17. (1) Every dealer liable to pay tax under this Act, who Declaration by is an Undivided Hindu Family, a firm, company, corpo- the dealer. ’ ration, society, club or association shall furnish to the 4. 1986. prescribed authority in the prescribed manner and within the prescribed time, a declaration stating the name and prescribed particulars of the person who shall be deemed to be in charge of the business for the purpose of this Act.
12. (2) Any statement made, return furnished, accounts, registers and documents produced or evidence given by such person or any other person authorised by him or by the dealer in this ) behalf, in the course of any proceedings under this Act, shall & be binding on and enforceable against the dealer. ° CHAPTER VI

⁹ Inserted by the Sikkim Sales Tax (Amendment) Act No. 4 of 1986 w.e.f. 1.

rn of turnover furnished by a dealer is correct and com- Procedure in plete, it may, without requiring the presence of the dealer assessment and . or production of any further evidence by him, determine re-assessment. a the amount of tax due from him. hd (2) (a) If the prescribed authority is not satisfied as . aforesaid but requires the presence of the dealer or the production of evidence by him, it may serve on such dealer a notice in the prescribed form requiring him or his representative to attend and produce or cause to be produced on a date to be specified, any evidence that such dealer may rely on in support of his return.

1. (b) On the date specified in the notice issued under clause (a) or on such other date as may be fixed
   • • by the prescribed authority under intimation to the dealer, and after hearing or examining or taking into consideration such evidence as the dealer may produce and such other evidence as the said auth- ority may require on specified points, it shall by an order in writing, assess and determine the tax payable by the dealer : Provided that no evidence, not produced by or on behalf of the dealer, shall be taken into consideration ¥ without giving a reasonable opportunity to the dealer : to rebut such evidence. eo (3) If a registered dealer fails to— . (a) furnish any valid return of turnover as required in sub-section (1) of section 11; or
   • • (b) comply with the notice issued under sub-section

1. (2) of this section; or
   • (c) satisfy the assessing authority about the correct- ness of the returns furnished ; or 4 |
   • (d) appear or produce or cause to be produced evi- dence on the date specified under sub-section (2); the prescribed authority shall, after giving a reasonable opportunity to the dealer of being heard, determine the taxable turnover of the dealer to the best of its judg- ment and assess the tax on the basis of such determina tion and may, in addition, impose penalty of an amount not exceeding one half of the amount of tax so assessed: ec © Provided that no penalty under this sub-section shall w be imposed unless the prescribed authority is satisfied that the Ll failure of the dealer was wilful, deliberate or unjustified and unless a reasonable opportunity of being heard is given to the dealer: Provided further that in cases covered by clause (a) of this sub-section, no proceedings for assessment shall be initiated after the expiry of four years from the expiry of the relevant period due for assessment or in cases in which the assessment is made as a result of an order in appeal, " revision or review, after the expiry of two years from the date of such order. "
2. (4) If upon information received, the prescribed authority + is satisfied that a dealer liable to pay tax under this Act in respect of any period wilfully failed to apply for re- gistration under sub-section (1) of section 10 or having applied, wilfully failed to furnish any particulars or infor- mation required for the purpose of registration or having been registered fails to furnish returns within the period a prescribed under sub-section (1) of section 11, the said a authority shall, after giving the dealer a reasonable oppor- “ tunity of being heard, assess, according to its best judg- ment, the amount of tax due from the dealer for such 3 period or any subsequent periods and in addition, may impose a penalty of an amount not exceeding one half of the amount of tax so assessed : Provided that no proceedings under this sub-section shall be initiated after four years from the expiry of such period. Explanation.—For the purpose of sub-section (3) or sub-section (4), as the case may be, the proceedings shall be deemed to have been initiated when a notice therefor is served or deemed to have been served on the dealer.
3. (5) If upon information which has come into possession, the prescribed authority has reason to believe than any turnover of a registered dealer in respect of any period has for any reason escaped assessment or was under-asse- a ssed or assessed at a rate or rates lower than the rate 2 or rates correctly applicable, or any deduction from $urn- o over had been wrongly made, it shall, within six years of © the expiry of such period, serve on the dealer a notice in the prescribed Form and proceed to assess or reassess the amount of tax due from the dealer in respect of such turnover in the manner specified by or under this section : Provided that the amount of tax shall be assessed or re-assessed after allowing such deduction and applying the same rate of tax as was admissible during the said period : Provided further that the said authority may, after giving k) reasonable opportunity to the dealer of being heard, im- pose a penalty not exceeding the amount of extra tax found leviable in the proceedings under this sub-section, if it is satisfied that the escape from assessment or under- assessment had been caused by the deliberate and wilful failure on the part of the dealer—
   • (a) to disclose, at the time of original assessment the particulars of such turnover; or
   • (b) to furnish correct particulars.

• or revised return furnished by him under section 11 shall of tax or penalty, i} be paid in the mann:r prescribed by or under sub-section . (2) of that section. (2) The amount of the tax and penalty assessed as due from the dealer under sub-section (3) of section 11 or o under section 13 after deducting any amount paid by him along with the return under sub-section (2) of section 11 shall be paid by him in such manner and within such time as may be specified in the notice of demand in the prescribed Form issued by the prescribed authority; the date so specified being not less than 30 days from the date of service of the said notice: Provided that the said authority may, in its discretion and for reasons to be recorded, on application by the dealer extend the date for such payment or allow the payment to be made in such instalments as may be determined by it. (3) If a dealer has failed, without reasonable cause, to pi make payment of any amount of tax together with the ® penalty, if any, by the date specified in the notice issued o under sub-section (2) or by the date extended under the o proviso thereto, interest at ten per cent per annnm shall accrue and be charged on such amount from such date and such interest shall be treated as if it were tax due under this Act and shall be paid by the dealer in the prescribed manner : Provided that interest shall not accrue or be charged on any amount the recovery of which is stayed under sub-section (5) during the period the stay operates. (4) Any amount of tax, penalty or interest due from a i dealer, which remains unpaid may be recovered on appli- r cation by the prescribed authority to the Judicial Magi- strate of the first class who shall realise it as if it we- re a fine imposed by him: Provided that where, during the proceedings under this sub-section, the amount of tax, penalty or interest due from the dealer is reduced as a result of appeal or oth- erwise, the prescribed authority shall inform the dealer and 5 the authority before whom the proceedings are pending, and the amount so reduced and the reduced amount shall be % deemed to be substituted for the amount originally intimated = to the authority. & (5) Where an appeal against or an application for revi- sion of the assessment of tax or levy of penalty or in- terest is entertained, the appellate or the revisional autho- % tity as the case may be, may on application stay recovery of the tax, penalty or interest in whole or in part, subject to such conditions as it may impose till such date as it may direct © Provided that tHe stay of recovery so granted shall stand vacated on the date the appeal or the application for revision is finally decided or on such other date as the appellate or the revisional authority may direct. (6) No such proceedings for the recovery of tax under this section shall be commenced after the expiry of twe- Ive years from the date on which the assessment was © made : id Provided that where the assessment was under appeal o or under any other proceedings under this Act, the afore= e said period of limitation shall commence from the date the appeal or other proceedings were terminated.

or recover from any person any amount towards tax or to collect tax purporting to be tax under this Act on the sale of goods. from purchasers.

1. (2) No registered dealers shall collect from any person any such amount except in a case in which, and to the extent to which, such dealer is liable to pay tax under this Act : Provided that where a registered dealer is in doubt about his liability, he may collect and keep in deposit the tax so collected towards his anticipated liability of tax; but shall refund the deposit to the person from wh- om it was collected or to his successors or assignees, if any, to the extent upto which it is finally determined in the proceedings under this Act, that the dealer is held not so liable.
2. (3) Nothing contained in sub-section (1) or sub-section (2) ¥ shall relieve a registered dealer from his liability for the a tax under this Act. ps i“ 16. (1) Subject to such rules as may be made the amount of tax. Procedure when M penalty or interest paid in excess of the amount finally wx is paid in determined as payable by the dealer under this Act, shall excess. be refunded to him, on his application within 60 days of § the date on which the applicaton is filed by him: Provided that such application shall not be enter- tained unless it is filed before the prescribed authority within twelve months from the date on which the order of assessment was passed : . Provided further that where the assessment was un- der appeal, revision or any other proceedings under this Act, the said period of limitation shall commence from the date on which the order in appeal, revision or other proceedings is passed : Provided also that any dealer may, by application, request or the prescribed authority may, on its own mo- tion, set off the refund due against any other dues of the dealer under this Act or under any other Act. = @
3. (2) Where a tax has been levied under this Act in res- pect of sales or purchases inside the State of any declared a good sand such goods are subsequently sold in the course of > inter-State trade or commerce, the tax so levied shall be re-imbursed to the person making such sale in the course of inter-State trade or commerce, in such manner and subject to such conditions as may be prescribed : Provided that no such reimbursement shall be made unless an application in writing is made before the pres- cribed authority under this Act within twelve months of the date on which the inter-State sale is made, which pe- riod may be extended for sufficient cause by the said au- " thority by such time as may be considered necessary by it for reasons to be recorded in writing. . 9 [ “(3) where any goods are delivered under any agree- ment of hire-purchase or of any system of payment by instalments and tax under this Act has been levied on the dealer who made the delivery of the said goods and such goods are returned to the said dealer at any time duri- ng which the agreement of hire-purchase subsists, the proportionate amount of tax levied on the unpaid instal- ments of sale price shall be refunded to the said dealer: - Provided that no such refund shall be admissible un- a less a claim therefor is filed before the prescribed autho- rity in such manner and within such time as may be 5 prescribed. |

1. (1) Every dealer liable to pay tax under this Act, who Declaration by is an Undivided Hindu Family, a firm, company, corpo- the dealer. ’ ration, society, club or association shall furnish to the

is an Undivided Hindu Family, a firm, company, corpo- the dealer. ’ ration, society, club or association shall furnish to the

1. (1) Every registered dealer shall keep a true and comp- Liability to main- lete account in respect of all goods produced, raised, ma- tain and nufactured, processed, purchased, sold or delivered by him: produce accounts and supply of Provided that the Commissioner may, by notification, information. lay down the forms or registers or the manoer in which the said dealers shall maintain the accounts as aforsaid as well as cash memoranda, bills, invoices etc, and ) the dealer shall maintain the accounts and documents accordingly.
2. (2) The prescribed authority may direct the dealer to pro- duce accounts or any information in such manner as may be required for the purpose of assessment of tax under this Act if the said authority is not satisfied that the accounts maintained and produced by the dealer are suffi ciently clear and intelligible for determining the correct amount of the tax payable by the dealer.
3. (3) Subject to such rules as may be made by the State 4 Government under this Act, the prescribed authority may,
   • • either before or after the assessment of tax under this pi Act, require any dealer, including a dealer not registered 7 under this Act, to produce before him all or any of the accounts, registers and documents maintained by the dea- ler and also to furnish any information relating to finan- i cial transactions of the dealer relating to his business, including information regarding stocks of goods held, im- ported, produced, manufactured, processed, bought, sold or delivered, the sale price realised, the profit derived therefrom, and the dealer shall comply with such requirements.
4. (4) Subject as aforesaid, all accounts and documents con- nected with the business of the dealer, stocks of all goods purchased or kept by him for sale, the cash, or bank pass books, statements or deposit receipts kept in any place of business shall at all reasonable times, be open to inspection and search by the prescribed authority or by any person appointed to assist him under sub-section (1) of section 3 or by such other person as may be authori- sed by him for the purpose in writing and the dealer 2 shall render all possible assistance to such authority or ® person in the search er inspection, as the case may be. - Explanation 1.—It shall be open to the said autho- : rity or person to take or cause to be taken such copies of, or extracts from, the aforesaid accounts, registers and documents as may be considered by it or him necessary and to require the dealer or any of his employees present at the time to authen- ticate or witness such copies or extracts, as the case may be. Explanation 2.—The authority or person may, subject to such rules as may be made, break open any door, window, almirah, safe or other containers in the place of business in which he has reason to believe that the dealer has kept or is . keeping any accounts, registers or documents or stocks of goods or cash relating to the business which the dealer has refused J to open or produce for inspection. E
5. (5) If the prescribed authority has reason to suspect that 74 of 1956. any dealer is attempting to evade the payment of any tax due under this Act or under the Central Sales Tax Act, 1956, such authority or person may, for reasons to be recorded in writing, seize or cause to be seized such accounts, registers or documents including bank pass books i or statements, as may be considered necessary, and shall o grant a receipt for the same. Such seized accounts, re- EE) gisters or documents may be retained by the said autho- rity for so long as may be necessary for examination or a for conducting any prosecution under section 23 and shall thereafter be returned to the dealer who shall acknowledge in writing the receipt of the same: : Provided that the seized accounts, registers and do- cuments shall not be retained by any authority other than the prescribed authority for over 90 days save with the approval, in writing, obtained from the prescribed authority. | 19. (1) Notwithstanding anything contained to the contrary in Liability on the any agreement, contract or understanding, when the owner- transfer of busi ship of a business of a dealer liable to pay tax under this ness. Act, is transferred in whole or in part, the transferor or the transferee shall be jointly or severally liable for informing the particulars of the transfer to the prescribed authority in such manner as may be prescribed and for the payment of any tax, penalty or interest, if any, paya- & ble in respect of such business and remaining unpaid at 2 the time of such transfer. N
6. (2) Where a dealer from whom any amount is due tow- : § ards tax, penalty or interest dies, the executor, receiver, manager, administrator or successors-in-interest to his estate or any other legal representative including a Court of Wards shall be liable to inform the prescribed authority in such manner as may be prescribed and to pay out of the property of the deceased the amount so payable and shall also be liable and responsible to attend and parti- cipate or be represented in all proceedings under this Act pending at the time of the death of the dealer: i Provided that nothing in this sub-section shall require re-issue of notices or intimation already issued to the dealer and the proceedings pending on the date of death of the dealer shall be continued as if the said dealer is substituted by the person or persons mentioned in this sub-section.
7. (3) Where the dealer is a minor or is incapacitated and his business is carried on by any other person on his behalf, whether he be a guardian, trustee or agent, such person shall inform the prescribed authority and the tax & shall be assessed upon and be recoverable from such per» o son as if he were the dealer. i (4) Where the dealer is an Undivided Hindu Family, firm or other association of persons, and such family, firm or association is partitioned, dissolved or business thereof is, . due to any reason, disrupted, as the case may be, the tax, penalty and interest for the period or periods upto the date of such partition, dissolution or disruption may be assessed, imposed and levied as if the partition, dissolution or disruption has not taken place and every person who was at the time of such partition, dissolution or disruption a member of such family, firm or association shall be liable severally and jointly for furnishing such particulars as may be prescri- bed and for the payment of such tax, penalty or interest, whether the assessment, imposition or levy was made be- fore or after such partition, dissolution or disruption.

1. (1) Notwithstanding anything contained to the contrary in Liability on the any agreement, contract or understanding, when the owner- transfer of busi ship of a business of a dealer liable to pay tax under this ness. Act, is transferred in whole or in part, the transferor or the transferee shall be jointly or severally liable for informing the particulars of the transfer to the prescribed authority in such manner as may be prescribed and for the payment of any tax, penalty or interest, if any, paya- & ble in respect of such business and remaining unpaid at 2 the time of such transfer. N (2) Where a dealer from whom any amount is due tow- : § ards tax, penalty or interest dies, the executor, receiver, manager, administrator or successors-in-interest to his estate or any other legal representative including a Court of Wards shall be liable to inform the prescribed authority in such manner as may be prescribed and to pay out of the property of the deceased the amount so payable and shall also be liable and responsible to attend and parti- cipate or be represented in all proceedings under this Act pending at the time of the death of the dealer: i Provided that nothing in this sub-section shall require re-issue of notices or intimation already issued to the dealer and the proceedings pending on the date of death of the dealer shall be continued as if the said dealer is substituted by the person or persons mentioned in this sub-section. (3) Where the dealer is a minor or is incapacitated and his business is carried on by any other person on his behalf, whether he be a guardian, trustee or agent, such person shall inform the prescribed authority and the tax & shall be assessed upon and be recoverable from such per» o son as if he were the dealer. i (4) Where the dealer is an Undivided Hindu Family, firm or other association of persons, and such family, firm or association is partitioned, dissolved or business thereof is, . due to any reason, disrupted, as the case may be, the tax, penalty and interest for the period or periods upto the date of such partition, dissolution or disruption may be assessed, imposed and levied as if the partition, dissolution or disruption has not taken place and every person who was at the time of such partition, dissolution or disruption a member of such family, firm or association shall be liable severally and jointly for furnishing such particulars as may be prescri- bed and for the payment of such tax, penalty or interest, whether the assessment, imposition or levy was made be- fore or after such partition, dissolution or disruption.

any agreement, contract or understanding, when the owner- transfer of busi ship of a business of a dealer liable to pay tax under this ness. Act, is transferred in whole or in part, the transferor or the transferee shall be jointly or severally liable for informing the particulars of the transfer to the prescribed authority in such manner as may be prescribed and for the payment of any tax, penalty or interest, if any, paya- & ble in respect of such business and remaining unpaid at 2 the time of such transfer. N

1. (2) Where a dealer from whom any amount is due tow- : § ards tax, penalty or interest dies, the executor, receiver, manager, administrator or successors-in-interest to his estate or any other legal representative including a Court of Wards shall be liable to inform the prescribed authority in such manner as may be prescribed and to pay out of the property of the deceased the amount so payable and shall also be liable and responsible to attend and parti- cipate or be represented in all proceedings under this Act pending at the time of the death of the dealer: i Provided that nothing in this sub-section shall require re-issue of notices or intimation already issued to the dealer and the proceedings pending on the date of death of the dealer shall be continued as if the said dealer is substituted by the person or persons mentioned in this sub-section.
2. (3) Where the dealer is a minor or is incapacitated and his business is carried on by any other person on his behalf, whether he be a guardian, trustee or agent, such person shall inform the prescribed authority and the tax & shall be assessed upon and be recoverable from such per» o son as if he were the dealer. i (4) Where the dealer is an Undivided Hindu Family, firm or other association of persons, and such family, firm or association is partitioned, dissolved or business thereof is, . due to any reason, disrupted, as the case may be, the tax, penalty and interest for the period or periods upto the date of such partition, dissolution or disruption may be assessed, imposed and levied as if the partition, dissolution or disruption has not taken place and every person who was at the time of such partition, dissolution or disruption a member of such family, firm or association shall be liable severally and jointly for furnishing such particulars as may be prescri- bed and for the payment of such tax, penalty or interest, whether the assessment, imposition or levy was made be- fore or after such partition, dissolution or disruption.

under this Act shall be called into question in any court proceedings. h save as provided in this Act.

1. (2) No suit, prosecution or other legal proceedings shall lie against any public servant or any person appointed under section 3 for anything done in good faith under this Act or the rules or notifications made thereunder save with the previous sanction of the State Government.

may, in the prescribed manner, appeal to such authority and review, * as may be prescribed against any order passed under sub- section (3) of section 11, section 13 and section 16 of the Act,

1. (2) No such appeal shall be entertained unless—
   • (a) it is accompanied by proof of payment, in such manner as may be prescribed, of the amount of tax admitted by the dealer to be due from him and ten per cent of the difference between such amount of tax including penalty and interest assessed ; or -
   • (b) it is filed within forty - five days of the date of El passing of the orders as aforesaid or 30 days from = the date on which the demand, if any, for tax or penalty is served or deemed to have been served on the dea- d ler, whichever is later : Provided that the aforesaid authority may admit an . appeal after the expiry of the said period, if on appli- cation by the dealer, it is satisfied that the dealer was prevented by sufficient cause from preferring the appeal within the aforesaid time.
2. (3) Subject to such rules as may be made, any order passed in appeal under sub-sections (1) and (2) may be revised by such authority as may be prescribed on an application by the dealer or by or on behalf of the St- ate Government as the case may be : Provided that no application for revision shall be entertained unless it is made before the said authority © within 60 days of the date of passing of the order un- w der sub-section (1) or sub-section (2), as the case may be, but the said authority may, if it is satisfied, on ap- i plication that there was sufficient cause for the delay, ad- mit the said application for revision after condoning the delay : Provided further that the Commissioner may eall for and examine the record of any proceedings under this Act in which any order other than an order passed in appeal under sub-sections (I) and (2) has been passed by any person appointed to assist the Commissioner for the purpose of satisfying himself as to the legality or prop- . riety of such order and may, after such examination and after making or causing to be made such enquiry as he may deem necessary, pass any order which he thinks fit and proper : Provided that no action under the second proviso shall be initiated while any appeal under sub-section (1) is pending or when the time prescribed in sub-section (2) for filing the appeal has not expired and except before the expiry of four years from the date of order which is h the subject of scrutiny by the Commissioner. : (4) The aforesaid appellate or revising authority may—
   • (a) confirm, reduce, annul, enhance or otherwise mo- i dify the assessment of tax, penalty or interest;
   • (b) set aside any order and direct the authority wh- ® ich made the order, to pass -a fresh order after fur- ther enquiry on specified points; or ) (c) pass such other orders as it may deem fit and proper. |
3. (5) No order prejudicial to any dealer shall be passed un- der this section without a reasonable opportunity of be- ing heard being given to him.
4. (6) Subject to such rules as may be made, any authority under this Act or its successors in office may, on applica- tion or otherwise, review any order passed by it to cor- rect any error or mistake apparent from records : = § Provided that neither an application under this sub- section nor the period during which it is pending shall o be considered as cause for the delay, if any, in filing any B appeal or application for revision : Provided further that no such review shall be made if it has the effect of enhancing the tax or penalty or both, or of reducing a refund, unless the dealer or the person who is liable to pay the tax or the penalty or both, or as the case may be, eligible to get refund, is given a reasonable opportunity of being heard. 0

SUITS, APPEAL, REVISION AND REVIEW. h 20. (1) No assessment made, proceedings taken or order passed Bar to certain = under this Act shall be called into question in any court proceedings. h save as provided in this Act.

1. (2) No suit, prosecution or other legal proceedings shall lie against any public servant or any person appointed under section 3 for anything done in good faith under this Act or the rules or notifications made thereunder save with the previous sanction of the State Government. 21. (1) Subject to such rules as may be made, any dealer Appeal, revision may, in the prescribed manner, appeal to such authority and review, * as may be prescribed against any order passed under sub- section (3) of section 11, section 13 and section 16 of the Act,
2. (2) No such appeal shall be entertained unless—
   • (a) it is accompanied by proof of payment, in such manner as may be prescribed, of the amount of tax admitted by the dealer to be due from him and ten per cent of the difference between such amount of tax including penalty and interest assessed ; or -
   • (b) it is filed within forty - five days of the date of El passing of the orders as aforesaid or 30 days from = the date on which the demand, if any, for tax or penalty is served or deemed to have been served on the dea- d ler, whichever is later : Provided that the aforesaid authority may admit an . appeal after the expiry of the said period, if on appli- cation by the dealer, it is satisfied that the dealer was prevented by sufficient cause from preferring the appeal within the aforesaid time.
3. (3) Subject to such rules as may be made, any order passed in appeal under sub-sections (1) and (2) may be revised by such authority as may be prescribed on an application by the dealer or by or on behalf of the St- ate Government as the case may be : Provided that no application for revision shall be entertained unless it is made before the said authority © within 60 days of the date of passing of the order un- w der sub-section (1) or sub-section (2), as the case may be, but the said authority may, if it is satisfied, on ap- i plication that there was sufficient cause for the delay, ad- mit the said application for revision after condoning the delay : Provided further that the Commissioner may eall for and examine the record of any proceedings under this Act in which any order other than an order passed in appeal under sub-sections (I) and (2) has been passed by any person appointed to assist the Commissioner for the purpose of satisfying himself as to the legality or prop- . riety of such order and may, after such examination and after making or causing to be made such enquiry as he may deem necessary, pass any order which he thinks fit and proper : Provided that no action under the second proviso shall be initiated while any appeal under sub-section (1) is pending or when the time prescribed in sub-section (2) for filing the appeal has not expired and except before the expiry of four years from the date of order which is h the subject of scrutiny by the Commissioner. : (4) The aforesaid appellate or revising authority may—
   • (a) confirm, reduce, annul, enhance or otherwise mo- i dify the assessment of tax, penalty or interest;
   • (b) set aside any order and direct the authority wh- ® ich made the order, to pass -a fresh order after fur- ther enquiry on specified points; or ) (c) pass such other orders as it may deem fit and proper. |
4. (5) No order prejudicial to any dealer shall be passed un- der this section without a reasonable opportunity of be- ing heard being given to him.
5. (6) Subject to such rules as may be made, any authority under this Act or its successors in office may, on applica- tion or otherwise, review any order passed by it to cor- rect any error or mistake apparent from records : = § Provided that neither an application under this sub- section nor the period during which it is pending shall o be considered as cause for the delay, if any, in filing any B appeal or application for revision : Provided further that no such review shall be made if it has the effect of enhancing the tax or penalty or both, or of reducing a refund, unless the dealer or the person who is liable to pay the tax or the penalty or both, or as the case may be, eligible to get refund, is given a reasonable opportunity of being heard. 0

on made under this Act shall be such as may be prescri- bed :

Provided that the amount of fees so prescribed shall not be less than a rupee and shall not exceed five hundred rupees :

Provided further that no fee shall be payable for : any appeal or application filed by or on behalf of the @ State Government. =

be taken or any order passed or may be passed under - any of the provisions of this Aet, whoever-—

1. (a) being a dealer, sells or purchases goods in contra. vention of sub-section (2) of section 10 or fails or neglects to comply with the provisions of sub-section

1. (1) thereof ; or
   • (b) fails without sufficient cause; to submit any return required under section 11 or wilfully submits a false return; or p= (c) not being a registered dealer falsely represents that he is such a dealer; or 9 (d) fails or neglects to maintain or produce accounts under section 18 or produces false and incorrect ac— counts ; or
   • (e) prevents or obstructs any authority under this Act in the performance of its duties and functions under this Act; or
   • (f) fails to pay the tax due in accordance with sec— tion 14; or
   • (g) contravenes the provisions of section 15; or
   • (h) fails to furnish the information or particulars
     • • mentioned in section 19; or
     • (i) contravenes section 26; or
   • (j) abets any person in the commission of any of the offences specified in clauses (a) to (i); shall be punishable with imprisonment of either description which may extend to one year or with fine which may 5 extend to ten thousand rupees or with both and if the © offence is a continuing one, with a daily fine not exceeding = one hundred rupees during the period the offence continues. . (2) No court shall take cognizance of any offence under this Act or the rules made thereunder except with the previous sanction of the prescribed authority. ) (3) All offences punishable under this Act shall be cog- nizable and bailable.
2. (4) Notwithstanding anything contained in sub-section (1), the prescribed authority may compound any offence under this Act or the rules made thereunder before or after the i institution of proceedings under that sub-section by accep- ting from the person charged with the offence a sum not exceeding twenty thousand rupees as may be determined by the said authority, in addition to the tax, penalty or interest that may be leviable under the Act, and on pay- ment of the sum so determined together with the amount of tax, penalty or interest due, the proceedings before any court or prescribed authority under this section shall abate. .

Prosecution and penalties. o 23. (1) Without prejudice to any action taken or that may Offences. be taken or any order passed or may be passed under - any of the provisions of this Aet, whoever-—

1. (a) being a dealer, sells or purchases goods in contra. vention of sub-section (2) of section 10 or fails or neglects to comply with the provisions of sub-section

1. (1) thereof ; or
   • (b) fails without sufficient cause; to submit any return required under section 11 or wilfully submits a false return; or p= (c) not being a registered dealer falsely represents that he is such a dealer; or 9 (d) fails or neglects to maintain or produce accounts under section 18 or produces false and incorrect ac— counts ; or
   • (e) prevents or obstructs any authority under this Act in the performance of its duties and functions under this Act; or
   • (f) fails to pay the tax due in accordance with sec— tion 14; or
   • (g) contravenes the provisions of section 15; or
   • (h) fails to furnish the information or particulars
     • • mentioned in section 19; or
     • (i) contravenes section 26; or
   • (j) abets any person in the commission of any of the offences specified in clauses (a) to (i); shall be punishable with imprisonment of either description which may extend to one year or with fine which may 5 extend to ten thousand rupees or with both and if the © offence is a continuing one, with a daily fine not exceeding = one hundred rupees during the period the offence continues. . (2) No court shall take cognizance of any offence under this Act or the rules made thereunder except with the previous sanction of the prescribed authority. ) (3) All offences punishable under this Act shall be cog- nizable and bailable.
2. (4) Notwithstanding anything contained in sub-section (1), the prescribed authority may compound any offence under this Act or the rules made thereunder before or after the i institution of proceedings under that sub-section by accep- ting from the person charged with the offence a sum not exceeding twenty thousand rupees as may be determined by the said authority, in addition to the tax, penalty or interest that may be leviable under the Act, and on pay- ment of the sum so determined together with the amount of tax, penalty or interest due, the proceedings before any court or prescribed authority under this section shall abate. .

produce any accounts, documents or other records before through autho- a any authority under this Act may appear, or produce as rised agent. a the case may be, in person or be represented by any ot- her person in such manner as may be prescribed.

made, returns filed, books or documents produced by a mation given by dealer under this Act or any assessment made or order dealer. passed by any of the authorities under this Act shall be treated as confidential and no person other than the said dealer shall be compelled to give evidence derived from any of the aforesaid records, save with the general or sp- ecial previous sanction of the State Government which may = give or withhold such sanction as it may deem fit: Provided that nothing in this section shall prevent the disclosure of all or any such particulars or informa- tion to any Government servant for the purpose of—

1. (1) investigation of any crime and prosecution of any pe- rson under this Act or under any of the laws of Central or State Government; or
2. (2) audit of receipts and refunds of tax including penalty and interest and fees levied by or under this Act; or B
3. (3) enforcing recovery of all amounts due under this Act: Provided further that the State Government may by notification and subject to such conditions as it may im- i pose, delegate its power under this section to any autho- P rity subordinate to it. 26. (1) The State Government may, by notification, set up and Checkposts. erect in such manner as it may deem fit, checkposts and barriers at any place in the State, at which all persons, | vehicles or other means of transporting ‘goods intended for sale may be detained, intercepted or searched to prevent evasion of tax under this Act.
4. (2) Every person transporting such goods across the said checkposts or barriers may be required to file such documents or other proof as may be prescribed along with a correct
   • • and complete declaration in the prescribed form before ° being allowed to proceed. [&] 27. If any difficulty arises in giving effect to the provisions Removal of El of this Act, the State Government may, by general or difficulties. special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for the removal of the difficulty:

erect in such manner as it may deem fit, checkposts and barriers at any place in the State, at which all persons,

| vehicles or other means of transporting ‘goods intended for sale may be detained, intercepted or searched to prevent evasion of tax under this Act.

1. (2) Every person transporting such goods across the said checkposts or barriers may be required to file such documents or other proof as may be prescribed along with a correct
   • • and complete declaration in the prescribed form before ° being allowed to proceed. [&] 27. If any difficulty arises in giving effect to the provisions Removal of El of this Act, the State Government may, by general or difficulties. special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for the removal of the difficulty: Provided that no such order shall be made after the expiration of two years from the commencement of this Act.

1. (1) The State Government may make rules for carrying Power to ; out the purposes of this Act. make rules, 3 (2) The rules so made may be given effect from such date or with such retrospective effect as the State Government may specify therein.
2. (3) In making any rules, the State Government may direct that a breach thereof shall be punishable with a fine not exceeding rupees one thousand and when the offence isa " continuing one with a daily fine not exceeding rupees fifty during the continuance of the offence. Lu Le (4) Tn particular and without prejudice to the generality « of the foregoing power, such rules may provide for—
   • (a) the particulars to be contained in a declaration referred to in the proviso to sub-clause (v) of clause (a) of sub- section (3) of section 5, the forms of such declarations, the manner in which, the conditions and restrictions subject i to which and the authority from which such forms shall be obtainable and the manner in which such declarations are to be furnished; |
   • (b) the authority to which the application for registration under section 10 shall be made;
   • (c) the procedure for, and other matters incidental to, the registration of dealers and the granting of certificates of registration and the forms of such certificates under section 10;
   • (d) the intervals at which, and the manner in which the tax under this Act shall be payable under section 11; MN El
   • (e) the returns to be furnished under section 11; and dates by which, and the authority to which, such returns shall o be furnished; @
   • (f) the date by which returns for any period are to be furnished and the procedure to be followed for assessment under section 13;
3. (2) the manner in which refunds under section 16 shall be made;
   • (h) the accounts and forms of refunds and reimbursement under section 16;
     • (i) the conditions for the maintenance and production of accounts or documents or for furnishing information and . the authority to which such accounts, documents or infor- mation may be furnished under section 13;
   • (j) the manner in which, and the authority to which appeals or revisions against any order passed under this Act may be preferred under section 21;
   • (k) the procedure for, the disposal of appeals and applica- tions for revision and reviews under section 21;
4. (1) the amount of fees payable under section 22 for any & appeal or application filed under this Act; B
   • (m) the conditions under which, and the authority by which the offences may be compounded under section 23;
   • (n) the manner in which, and the time within which * applications shall be made, information furnished and notices served under this Act;
5. (0) any other matter “which may be, or is required to be prescribed.

= relating to Sales Tax in force in the State, shall stand Validation. repealed,

1. (2) All collections of tax, penalty and interest, and all 5 proceedings or assessments made, actions taken, things done or orders passed, by any authority under any law refe- fe) rred to in sub-section (1) are hereby, validated and shall 6 for all purposes be deemed to have always been made, done, taken or passed in accordance with law.
2. (3) All proceedings pending on the commencement of this Act with regard to assessment, collection of tax, penalty or interest, or matters in appeal, revision or review shall continue and be disposed of as if this Act had not been passed. ’ SCHEDULE 1 ( See section 8) 1 2 1. All cereals and pulses including broken particles and husk Except when sold in and bran thereof sealed container. 2. Wheat flour including atta and suji Rai a 3. Bread [RTS 4 4. Meat which has not been cured or frozen fR— « 5. Fresh fish sevrensne 6. Vegetables, green or dried commonly known as sabji, Except when sold in tarkari or sak sealed container. 7. Cooked food, other than cake, pastries, biscuits and sweetmeats — 8. Gur and molasses [EIN 9. Salt [RR 1 2 10. Milk pn 11. Livestock, including poultry es 12. Agriculture implements Except tractors and » power ‘tillers and spe are parts accessories and component parts * thereof. © 13. Cotton Yarn Perens & 14. Inferior grade of kerosene oil, that is to say, the kerosene & referred to in item 7 of the first Schedule to the Central Excise and Salt Act, 1944 and having all the follo- wing characteristics also.
   • (i) it is not lighter in colour than solution with the following composition :— Quarter normal aqueous solution of :—
   • (a) Ferric Chloride (FeCL 3 6H , 0),
   • (b) Cobitous Chloride (C o CLy 6Hz O), w
   • (c) Copper Sulphate (C 4 SOs 5H 2 O), mixed in the ratio of . 6:3:1: and
     • (ii) it has flashing point below 65; 60 of centigrade thermometer. 15. Tobacco for hookah, that is to say, tobacco paste ready for use in hookah. 16. Texts & exercise books for educational purpose and such other sacred books as may be prescribed. 17. Water, but not aerated or mineral waters when sold in bottles or sealed containers. “ 18. Electrical energy. El 19. Raw Jute. io 20. Plain paper, commonly known as Darbar Paper, Government Paper ‘cartridge paper’ ‘sold by Government Treasuries through the agency of licensed stamp 9 vendors. 21. Eggs. 22. Sag and tapioca globules. $ 23. Charkha. 24. Cotton, B 25. Handloom Woven—
   • (a) Gamchas.
   • (b) Khaddar or Khadi. Except those made from silk yarn. i (c) Garments made of kbaddar or khadi referred in sub-item (b). o (d) Handicraft goods locally produced only. 26. Mustard Oil, rape oil and mixtures of mustard and rape oil. od 27. Newspapers. © 28. Mustard seed and rape seed . rd 29. Flowers and plants,