Levy of Tax

(1) For the purpose of development of trade, commerce and industry in the State, there shall be levied a tax on the entry of goods specified in the Schedule into a local area from any place outside that local area for consumption, use or sale therein, at such rate not exceeding twenty percent of the value of goods as may be specified by the State Government by notification, and different rates may be specified for different classes of goods: Provided that the State Government may amend the Schedule by notification and on the issue of such notification, the Schedule shall be deemed to have been amended accordingly subject to the provisions of sub-section (10). (2) The tax levied under sub-section (1) shall continue to be levied until such time as is required to improve the infrastructure such as electricity, road, market conditions etc. in the State with a view to prepare conditions for better trade for trade, commerce and industry. (3) The tax levied under sub-section (1) shall be payable by the dealer who brings or causes to be brought into the local area such goods, whether on his own account or on account of his principal, or takes delivery or is entitled to take delivery of such goods on its entry into the local area: Provided that the State Government may, by notification, subject to such conditions as may be specified in the notification, permit any power project industrial unit engaged in generation, transmission and distribution of electricity, having total capital investment of Rs. 1,000 Crore or more, to assume the liability of payment of tax of other dealers on the entry of such goods from any place outside the local area into the local area, which are used and consumed by the said unit. Explanation: Where goods are delivered on its entry into a local area or is brought into a local area by a person other than the dealer, the dealer who takes delivery of the goods from such person shall be deemed to be the person who has brought or caused to be brought the goods into the local area. (3A) Notwithstanding anything to the contrary contained in sub-section (1) and sub-section (3), no tax shall be levied on or collected from such dealer or subsequent dealer who brings or causes to be brought such goods into any local area, in respect of which tax has been paid in any other local area under any of the aforementioned sub-sections and such dealer files such declaration-form before the concerned Assessing Authority as may be prescribed: Provided that the amount of tax deposited under this section shall be deemed to have been deposited for and on behalf of such dealer or any subsequent dealer to whom the said prescribed declaration-form has been issued. (4) The State Government may, by notification, subject to the conditions notified in the notification, grant exemption in the amount of tax to the extent necessary to ensure that the effective tax rates on the entry of goods into a local area for consumption or use in a power project industrial unit do not exceed the progressive tax rates applicable on the date of commencement of the State's Energy Policy. (5) A dealer who brings or causes to be brought goods into a local area shall not be liable to tax if the total value of such goods during a financial year is less than Rs. 5 Lakh or such higher amount as may be specified by the State Government by notification, either in case of all dealers of any goods or in case of any specific class of such dealers: Provided that the provisions of this sub-section shall not apply in respect of the value of goods brought into a local area from outside Uttarakhand. (6) Notwithstanding anything to the contrary contained in sub-section (1) or sub-section (3), no tax shall be levied on or collected from such dealer who brings or causes to be brought any goods into a local area, which is: (i) consigned to any place outside the State without being used in the local area; or (ii) sold or resold during the course of inter-state trade or commerce or in the course of export out of the territory of India. Explanation: For the purpose of determining whether any goods have been sold by the dealer during the course of inter-state trade or commerce or in the course of export out of the territory of India, Section 3, Section 5 and Section 6-A of the Central Sales Tax Act, 1956 shall apply: Provided that if at the time of entry of any goods into a local area, the quantity and value of goods sold within such local area without being used, consumed or sold is not determinable for the purpose of taking it outside such local area, then the dealer shall pay the amount of tax on the value of the total quantity of goods and subsequent to the sale of goods in the course of inter-state trade or commerce or in the course of export or consignment of goods outside the State, the dealer may claim for the refund or adjustment of such amount paid as tax, in the month in which the transfer of goods takes place outside the State or sale is made in the course of inter-state trade or commerce or in the course of export. (7) [Deleted] (8) Where tax is payable in respect of the entry of goods into a local area and it has been paid by the agent, the principal shall not be liable for payment of tax and likewise where tax is payable in respect of the entry of any goods into a local area and it has been paid by the principal, the agent shall not be liable for payment of tax. (9) Where in respect of any (1) purchased scheduled goods (a) the value of such goods cannot be determined or the value of such goods declared by the dealer or the person in charge of goods, as the case may be, is not verifiable due to non-availability or non-production of any document; or (b) any document produced in support of purchase value or transport charges and other charges is not reliable; or (2) in respect of scheduled goods, obtained or procured otherwise than by way of purchase, the value of such goods declared by the person in charge of goods or the dealer, as the case may be, does not appear to be reasonable and reliable, then after giving an opportunity of hearing to the person in charge of goods or the dealer, as the case may be, the value of the goods shall be deemed to be the wholesale price reasonably determined by the Assessing Authority in the open market in the local area in which such goods is being brought and for this purpose, in reference to clause (1), the Assessing Authority shall have the presumption that the goods have been obtained or procured otherwise than by way of purchase. (10) Every notification issued under this section shall, as soon as may be after it is issued, be laid before the State Legislative Assembly, while it is in session, for a total period of at least fourteen days which may be comprised in one session or in two or more successive sessions, and if some later date is not appointed, it shall take effect from the date of its publication in the Gazette, subject to such modifications or annulments as the State Legislature may agree to make during the said period, but any such modification or annulment shall not adversely affect the validity of anything done previously under the related notification, except that the imposition, assessment, levy or collection of tax or penalty shall be under the said modification or annulment. Subject to the prior permission of the State Government, the Commissioner, by issuing a notification, shall prepare a simple procedure for collecting tax on the entry of specified goods into the local areas of Uttarakhand State through online purchase or e-commerce and under this, shall also prescribe the procedure for collection of entry tax from any transporter/courier/delivery agent/agent/carrier and any other person (importer) whether from outside the State or outside the country into the State, whether for business or for personal purpose, who intends to receive such goods either for himself or on behalf of another, and such transporter/courier/delivery agent/agent/carrier and any other person (importer) shall be liable for payment of entry tax on the total value of such goods at such rate and in such manner as may be prescribed.