Chapter XV MISCELLANEOUS

Any person, who is required to appear before any authority appointed under section 10 or before the Tribunal or before an officer of the Bureau of Investigation constituted under section 86 in connection with any proceeding under this Act, may appear before such authority through--

1. (a) a person authorised in the prescribed manner by him in this behalf, being his relative or person in his regular and whole time employment,
2. (b) a sales tax practitioner who possesses the prescribed qualifications; or
3. (c) a legal practitioner, or
4. (d) subject to such conditions as may be prescribed, a chartered accountant, or company secretary, or cost accountant. Explanation.--For the purposes of this section,--
5. (a) "chartered accountant" means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act;
6. (b) "company secretary" means a company secretary as defined in clause (c) of sub-section (1) of section 2 of the Company Secretaries Act, 1980 (56 of 1980) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act;
7. (c) "cost accountant" means a cost accountant as defined in clause (b) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959) and who has obtained a certificate of practice under sub-section (1) of section 6 of that Act;
8. (d) "legal practitioner" means an advocate, vakil or an attorney of any High Court, and includes a pleader in practice.

Whenever, in respect of any proceeding under this Act, any person or authority appointed under section 10 ceases to exercise jurisdiction and is succeeded by another person who has and exercises jurisdiction, the person so succeeding may continue the proceeding from the stage at which the proceeding was left by his predecessor: Provided that the dealer concerned may demand that before the proceeding is so continued, the previous proceeding or any part thereof be reopened or that before any order is passed against him, he be heard.

Save as provided in section 79, no assessment made and no order passed under this Act or rules made thereunder by any authority appointed under section 10 or by the Bureau of Investigation or by the Tribunal shall be called in question in any court, and save as is provided in section 72 or section 73 or section 74 or section 76, no appeal or application for revision or review shall lie against any such assessment or order.

1. (1) All particulars contained in any statement made, return furnished or accounts or documents produced in accordance with this Act, or in any record of evidence given in the course of any proceedings under this Act (other than proceeding before a criminal court), or in any record of any assessment proceeding, or any proceeding relating to the recovery of a demand, prepared for the purposes of this Act, shall, save as provided in sub-section (3), be treated as confidential; and notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872), no court shall save as aforesaid, be entitled to require any servant of the Government to produce before it any such statement, return, account, document or record or any part thereof, or to give evidence before it in respect thereof.
2. (2) If, save as provided in sub-section (3), any servant of the Government discloses any of the particulars referred to in sub-section (1), he shall, on conviction, be punished with imprisonment, which may extend to six months or with fine or with both.
3. (3) Nothing in this section shall apply to the disclosure of any of the particulars, referred to in subsection (1), made--
   • (a) for the purposes of a prosecution under the Indian Penal Code, 1860 (45 of 1860) in respect of any statement, return, accounts, registers, documents or evidence, or any part thereof; or
   • (b) for the purposes of a prosecution under this Act; or
   • (c) for regulating any inquiry under the Public Servant (Inquiries) Act, 1850 (37 of 1850), into the conduct or behaviour of any authority or Inspector appointed under section 10 or an officer of the Bureau of Investigation constituted under section 86 or into the behaviour of any other officer appointed to conduct such inquiry; or
   • (d) in connection with the trial of a suit in a civil court to which the State of Bihar is a party and which relates to any matter arising out of any proceeding under this Act; or
   • (e) for the purposes of enabling an officer of the Central Government or of any State Government to levy or recover any tax or duty imposed by it; or
   • (f) to any officer of the State Government where it is necessary to make such disclosure for the purposes of this Act; or
   • (g) to any officer of the Central Government or of the State Government for the purpose of enabling such officer to perform his executive functions relating to the affairs of the Union or the State.

1. (1) If the Commissioner is satisfied that an arrangement has been entered into between two or more persons or dealers to defeat the application or purposes of this Act or any provision of this Act, then, the Commissioner may, by order, declare the arrangement to be null and void as regards the application and purposes of this Act and he may, by the said order, provide for increase or decrease in the amount of tax payable by any person or dealer who is affected by the arrangement, whether or not such dealer or person is a party to the arrangement, in such manner as the Commissioner considers appropriate so as to counter act any tax advantage obtained by that dealer from or under the arrangement.
2. (2) For the purposes of this section--
   • (i) "arrangement" includes any contract, agreement, plan or understanding whether enforceable in law or not, and all steps and transactions by which the arrangement is sought to be carried into effect;
   • (ii) "tax advantage" includes,--
   • (a) any reduction in the liability of any dealer to pay tax,
   • (b) any increase in the entitlement of any dealer to claim input tax credit or refund,
   • (c) any reduction in the sale price or purchase price receivable or payable by any dealer.
3. (3) Before passing any order under this section, the Commissioner shall afford a reasonable opportunity of being heard to any such person or dealer whose tax advantage is sought to be counter acted.

Notwithstanding anything contained in this Act, the State Government, by notification to be published in the Official Gazette, may, subject to such rules as may be prescribed, declare any dues created under this Act or the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, as unrecoverable.

1. (1) The State Government may, subject to the condition of previous publication, by notification, make rules to carry out the purposes of this Act.
2. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:--
   • (a) the manner in which the advance tax may be collected under sub-section (7) of section 3;
   • (b) constitution of the Tribunal under sub-section (1) of section 9;
   • (c) the terms and conditions of service of the Chairperson or any other Government servant appointed as a member of the Tribunal under sub-section (7) of section 9;
   • (d) the areas and functions of inspectors under sub-section (3) of section 10;
   • (e) the form and manner in which the true and complete declaration referred to in clause (a) of subsection (2) of section 13 shall be filed;
   • (f) the conditions and restrictions subject to which the registered dealers may be permitted to pay an amount under sub-section (1) of section 15;
   • (g) the conditions and restrictions subject to which an input tax credit shall be claimed under sub-section (1) section 16;
   • (h) the manner and the period within which the input tax credit in respect of capital goods shall be allowed under clauses (a), (b), (c), (d) and (e) of sub-section (1) of section 16;
     • (i) the manner in which the input tax credit on the sale or supply of goods shall be claimed by the registered dealer selling the goods or using them in the execution of sub-contract under sub-section (2) of section 16;
   • (j) the other goods on which input tax credit shall not be claimed or allowed under clause (a) of sub-section (3) of section 16;
   • (k) the particulars of sale in the original copy of the tax invoice and the form and manner of the duplicate copy of the original tax invoice under sub-section (5) of section 16;
   • (l) the manner in which input tax credit on goods and the manner and extent in which the input tax on account of capital assets shall be allowed under sub-section (1) of section 17;
   • (m) the restrictions and conditions subject to which and the time and manner in which the organisations specified in the Schedule V to this Act may apply for refund of tax paid on goods purchased under sub-section (2) of section 17;
   • (n) the manner of application for and the grant of certificate of registration under sub-section (2) of section 19;
   • (o) the manner in which the certificate of registration shall be surrendered and the manner in which the certificate of registration shall be cancelled under sub-section (2) of section 20;
   • (p) the security and the manner in which such security shall be furnished under section 21;
   • (q) the manner in which the declaration shall be furnished and the particulars of the person under sub-section (1) of section 22;
   • (r) the form and manner in which the returns or statements or notice, as the case may be, under subsections (1), (2), (3), (4) and (7) of section 24 shall be furnished;
   • (s) the manner in which the opportunity of being heard is to be provided under sub-section (8) of section 24;
   • (t) the manner of depositing tax and the form and manner of enclosing the proof of payment of such tax under sub-section (9) of section 24;
   • (u) the time and manner of scrutiny of return under sub-section (1) of section 25;
     • (v) the form of notice to the concerned dealer under sub-section (2) of section 25;
   • (w) the form and manner of serving a notice and the time within which the dealer is required to pay the tax and interest under clause (b) of sub-section (3) of section 25;
     • (x) the manner of conducting an audit of the business of a dealer under sub-section (3) of section 26;
   • (y) making of provisional or final assessment of turnover of sale or purchase of goods under subsection (1) of section 30;
   • (z) the form and manner of notice and the manner of assessment or re-assessment under subsection (1) of section 31;
   • (za) the manner in which the opportunity of being heard is to be provided under sub-section (1) of section 32;
   • (zb) the manner in which the amount of tax may be provisionally quantified under sub-section (2) of section 32;
   • (zc) the manner in which the re-assessment may be made under section 33;
   • (zd) the other evidence to prove and the form and manner of declaration required to be furnished under sub-section (2) of section 35;
   • (ze) such other manner of payment of tax and the manner of payment of tax, interest due or the penalty by instalments under sub-section (2) of section 39;
   • (zf) the manner of payment of penalty under sub-section (5) of section 39;
   • (zg) the conditions and restrictions subject to which the deduction of tax may be made under subsection (1) of section 40;
   • (zh) the manner of payment of amount into the Government Treasury under sub-section (3) of section 40;
   • (zi) the conditions subject to which no deduction of tax shall be made under sub-section (1) of section 41;
   • (zj) the manner in which tax referred to in sub-section (1) of section 41 shall be deducted under sub-section (4) of section 41;
   • (zk) the form and manner of certificate by the person making deduction under sub-section (5) of section 41;
   • (zl) the form and manner of granting tax clearance certificate under section 42;
   • (zm) the manner in which the opportunity of being heard is to be provided under sub-section (3) of section 43;
   • (zn) the form of notice by the prescribed authority under sub-section (2) of section 44;
   • (zo) the manner of publication of notice and the details therefor under sub-section (4) of section 44;
   • (zp) the form of application in which the person may claim the refund under sub-section (5) of section 44;
   • (zq) the manner of keeping a true and complete accounts under sub-section (1) of section 52;
   • (zr) the dealers or persons and the manner of drawing up the manufacturing, trading and profit and loss account and a balance-sheet and other accounts under sub-section (2) of section 52;
   • (zs) the form of challan to be issued by every dealer or a person under sub-section (3) of section 52;
   • (zt) the accounts and the manner in which the trading and profit and loss account shall be drawn up under sub-section (4) of section 52;
   • (zu) the value of goods exceeding which the retail invoice is required to be issued by the dealer under sub-section (4) of section 53;
   • (zv) the period for which invoices under sub-section (7) of section 53 may be required to be preserved;
   • (zw) the conditions and restrictions subject to which a copy of the original tax invoice may be provided by the selling dealer under sub-section (8) of section 53;
   • (zx) the particulars of the credit note and the debit note under sub-section (9) of section 53;
   • (zy) the other period for which the tax invoices and retail invoices are required to be preserved under sub-section (10) of section 53;
   • (zz) the form of audit report and the particulars thereof under sub-section (2) of section 54;
   • (zza) the manner of authorisation to inspect all places of business under sub-section (2) of section 56;
   • (zzb) the manner of seizure of accounts, registers or documents under sub-section (3) of section 56;
   • (zzc) the manner of seizure of goods under clause (a) of sub-section (4) of section 56;
   • (zzd) the manner in which the opportunity of being heard is to be provided under clause (b) of subsection (4) of section 56;
   • (zze) the manner of auction of goods and the manner in which the sale proceeds shall be refunded under clause (e) of sub-section (4) of section 56;
   • (zzf) the manner of release of security under clause (f) of sub-section (4) of section 56;
   • (zzg) the manner and form of notice by the prescribed authority under sub-section (2) of section 57;
   • (zzh) the form of notice by the prescribed authority under sub-sections (2) and (3) of section 58;
   • (zzi) the time and manner of furnishing information under sub-section (1) of section 59;
   • (zzj) the accounts, registers and documents required to be maintained under sub-section (2) of section 59;
   • (zzk) the manner of erecting check posts and barriers under sub-section (1) of section 60;
   • (zzl) the form and manner of furnishing declaration and the conditions subject to which such declaration shall be furnished under sub-section (2) of section 60;
   • (zzm) the manner of intercepting, detaining and searching any goods carrier under sub-section (3) of section 60;
   • (zzn) the form of declaration required by a person transporting goods under sub-section (1) of section 61;
   • (zzo) the manner of obtaining transit permission under sub-section (1) of section 62;
   • (zzp) the manner of refund to a person who paid in excess of the amount due under subsection (1) of section 68;
   • (zzq) the manner of claiming or receiving the refund under sub-section (2) of section 68;
   • (zzr) the form of application for grant of provisional refund under sub-section (1) of section 69;
   • (zzs) the security to be furnished by the dealer under sub-section (2) of section 69;
   • (zzt) the form and manner of filing an appeal under section 72;
   • (zzu) the conditions subject to which the offences punishable under this Act may be investigated under sub-section (1) of section 83;
   • (zzv) the manner of authorisation and the conditions subject to which an accountant, company secretary or sales tax practitioner may appear before taxing authorities under section 87;
   • (zzw) declaration by the State Government relating to any dues as unrecoverable under section 92;
   • (zzx) the manner of imposition of penalty for breach of any rules made under this section;
   • (zzy) the manner and time in which, the particulars of, and the authority to whom, goods held in stock is to be declared under section 95;
   • (zzz) the manner of claiming input tax credit under sub-sections (1) and (2) of section 96;
   • (zzza) the manner and extent of deferment of tax liability under sub-section (3) of section 96;
   • (zzzb) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, or may be, made by rules.
3. (3) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of the State Legislature while it is in session for a total period of fourteen days, which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
4. (4) Any rule made under this section may provide that the contravention thereof shall be punishable with fine which may extend to five thousand rupees and where the contravention is continuing one, with a further fine which may extend to one hundred rupees per day for every day during which such contravention continues.

1. (1) The Bihar Finance Act, 1981 (Bihar Act 5 of 1981) (hereinafter referred to as "the repealed Act") is hereby repealed from the date of commencement of this Act.
2. (2) The repeal shall not affect,--
   • (a) any legal proceeding or remedy whether initiated or availed of before or after this repeal, in respect of any such right, title, obligation or liability;
   • (b) affect any right, privilege, obligation, or liability acquired, accrued or incurred under the repealed Act except the right or privilege accrued under the repealed Act or the rules framed or notifications issued thereunder, to industries, granted under any industrial policy or industrial policy resolution of the State Government; or
   • (c) the levy, assessment or recovery of any tax or the imposition or recovery of any penalty, in respect of such period, under the provision of the repealed Act; and all proceedings under the repealed Act in respect of matters aforesaid shall be initiated and disposed of or continued and disposed of, as the case may be, as if this Act has not been passed; and for this purpose all taxing authorities or Inspectors appointed under section 10, and the Tribunal constituted under section 9 of, shall exercise all powers and perform all duties conferred by or under the repealed Act upon the corresponding authorities appointed under section 9 or section 8 thereof: Provided that any appeal or any revision arising out of any order under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981) shall be filed before, or heard or disposed of by, the appropriate authorities mentioned in sections 72, 73 and 74 in the manner as provided therein.
3. (3) All rules, orders and appointments made, notifications published, certificates granted, powers conferred and other things done under the said Act and in force on the commencement of this Act, shall, so far as they are not inconsistent with or until they are not modified, superseded or cancelled under this Act, be deemed to have been respectively made, published, granted, conferred or done under this Act.
4. (4) Save as otherwise provided in sub-sections (2) and (3), the mention of particular matters in those sub-sections shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897 (10 of 1897) with regard to the effect of repeal.

Every dealer who was registered under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, or who makes an application for registration as a dealer on the 1st day of April, 2005 shall declare such details regarding the stock of goods held by him on the 31st March, 2005 in such manner and with such particulars and within such time and to such authority, as may be prescribed.

1. (1) Where any goods, other than those specified under sub-section (2) of section 13 of this Act, held in stock by a registered dealer on the date of commencement of this Act, are goods which have already suffered tax on the first point of their sale within the meaning of the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, are sold by him or are consumed in manufacture of other goods on or after the date of commencement of this Act, he shall claim and be allowed, in such manner as may be prescribed, an input tax credit under sections 16 and 17 of this Act.
2. (2) Where any goods, other than those specified under sub-section (2) of section 13 of this Act, held in stock by a registered dealer on the date of commencement of this Act, are goods which have already suffered tax on the first point of their sale within the meaning of the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, are used or consumed by him for the manufacture of goods for sale within the State of Bihar or in the course of inter-State trade and commerce under section 3 of the Central Sales Tax Act, 1956 (74 of 1956) or in the course of export within the meaning of section 5 of the Central Sales Tax Act, 1956 on or after the date of commencement of this Act, he shall claim and be allowed, in such manner as may be prescribed, an input tax credit under sections 16 and 17 of this Act.
3. (3) Where--
   • (a) any dealer has been granted the facility of deferment of tax payable under section 23A of the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, and who has, on the commencement of this Act, not availed of the full entitlement, he shall be allowed to continue to defer the tax payable under this Act, in the manner and to the extent prescribed;
   • (b) any dealer has been granted the facility of exemption from payment of tax under clause (b) of sub-section (3) of section 7 of the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, and who has, on the commencement of this Act, not availed of the full entitlement, he shall be allowed to opt for deferment of his tax liability under this Act, in the manner and to the extent prescribed.
4. (4) Where--
   • (a) the tax has been collected under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981) as it stood before its repeal by section 94, but the same has not been deposited before the date of commencement of this Act, the tax so collected by any person under the said Act shall be deposited in accordance with the provisions of the aforesaid Act and the rules made thereunder, as if this Act has not come into force and the said Act had not been repealed;
   • (b) a return or statement is required to be filed under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981) as it stood before its repeal by section 94, but the same had not been filed before the commencement of this Act, such return or statement, as the case may be, shall be filed in accordance with the provisions of the aforesaid Act and by the person liable to file such return or statement;
   • (c) a return has been filed, under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981) as it stood before its repeal by section 94, by any dealer for any year and no assessment in respect of that year has been made before the commencement of this Act, the proceedings for the assessment of that dealer for that year shall be made or be continued as if this Act had not come into force and the said Act had not been repealed and such assessment shall be made by the prescribed authority under this Act;
   • (d) a person has been aggrieved by any decision made or order passed under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981) as it stood before its repeal by section 94, and he has not filed any appeal or an application for review or revision, such person may file an appeal or make an application for revision or review, as the case may be, in accordance with the provision of the said Act and the rules made thereunder to the prescribed authority for disposing of such appeal or application;
   • (e) any liability of any dealer to pay tax, under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, had been affected, and such person was entitled to make a reference before the High Court under section 48 of the said Act, before the date of commencement of this Act, such person may, draw up, within two months of the date of commencement of this Act, a reference (if not already made such reference) and refer it to the High Court in accordance with the provisions of said section 48, as if the aforesaid Act had not been repealed.
5. (5) No interest or penalty shall be leviable or imposable or no prosecution shall be initiated for any offence committed under this Act during the period beginning on the 18th April, 2005 and ending on the day preceding the day on which this Act comes into force.

Any reference in any provision of the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, to an officer, authority or tribunal shall, for the purpose of carrying into effect the provisions contained in section 83, be construed as a reference to the corresponding officer, authority or tribunal appointed or constituted by or under this Act; and if any question arises as to who such corresponding officer, authority or tribunal is, the decision of the Commissioner thereon shall be final.

1. (1) If any difficulty arises in giving effect to the provisions of this Act, the State Government may, by 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 removing the difficulty: Provided that no order shall be made under this section after the expiry of a period of two years from the commencement of this Act.
2. (2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of State Legislature.

Every notification issued under this Act shall be laid, as soon as may be, after it is published in the Official Gazette, before each House of State Legislature while it is in session for a total period of fourteen days which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the notification or both Houses agree that the notification should be annulled, the notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification.

Anything done or any action taken under the Bihar Value Added Tax Ordinance, 2005 (Bihar Ord. 1 of 2005) (including any order passed, notification issued and rules made) shall be deemed to be valid and be deemed to have been done or taken under the corresponding provisions of this Act