THE CENTRAL SALES TAX ACT, 1956
CONTENTS
PRELIMINARY
1. Short
title, extent and commencement
2. Definitions
FORMULATION
OF PRINCIPLES FOR DETERMINING WHEN A SALE OR PURCHASE OF GOODS TAKES PLACE IN
THE COURSE OF INTER-STATE TRADE OR COMMERCE OR OUTSIDE A STATE OR IN THE COURSE
OF IMPORT OR EXPORT
4. When is a sale or purchase of
goods said to take place outside a State
5. When is a
sale or purchase of goods said to take place in the course of import or export
INTER-STATE
SALES TAX
6. Liability
to tax on inter-State sales
6A. Burden of
proof, etc., in case of transfer of goods claimed otherwise than by way of sale
8. Rates of
tax on sales in the course of inter-State trade or commerce
9. Levy and
collection of tax and penalties
9A. Collection
of tax to be only by registered dealers
10. Penalties
10A. Imposition
of penalty in lieu of prosecution
12. Indemnity
GOODS OF SPECIAL
IMPORTANCE IN INTER-STATE
TRADE OR
COMMERCE
14. Certain
goods to be of special importance in inter-State trade or commerce
15. Restrictions
and conditions in regard to tax on sale or purchase of declared goods within a
State
LIABILITY IN
SPECIAL CASES
16. Definitions
18. Liability
of directors of private company in liquidation
The
Central Sales Tax Act, 19561
(ACT NO. 74 OF 1956)
[21st December, 1956]
An Act to formulate principles
for determining when a sale or purchase of goods takes place in the course of
inter-State trade or commerce or outside a State or in the course of imports
into or export from India, to provide for the levy, collection and distribution
of taxes on sales of goods in the course of inter-State trade or commerce and
to declare certain goods to be of special importance in inter-State trade or
commerce and specify the restrictions and conditions to which State laws
imposing taxes on the sale or purchase of such goods of special importance
shall be subject.
1. The Act has
been extended to Goa, Daman and Diu (with modifications) by Reg. 12 of 1962, s.
3 and Sch., to Kohima and Mokokchung districts of Nagaland (as in force on 5-8-1971)
by Act 61 of 1972, s. 14 (1) (w.e.f. 30-11-1972). The amendments made to the Act by Act 61 of 1972, came into force
in the said districts (w.e.f 1-4-1973) [vide s. 14 (2), ibid.].
Be it enacted by Parliament
in the Seventh Year of the Republic of India as follows: -
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement-
(1) This Act may be called
the Central Sales Tax Act, 1956.
(2) It extends to the whole
of India 1* * *
(3) It shall come into
force on such date 2 as the Central Government may, by
notification in the Official Gazette, appoint, and different dates may be
appointed for different provisions of this Act.
1. The words
“except the State of Jammu and Kashmir” omitted by Act 5 of 1958, s. 2.
2. 5th January,
1957, all sections except s. 15, vide Notification No. S.R.O. 78, dated 4th
January, 1957, Gazette of India, Extraordinary, 1957, Pt. II, Sec. 3, p. 57;
and s. 15 with effect from Ist October, 1958, vide Notification No. G.S.R. 897,
dated 23rd September. 1958, Gazette of India, Extraordinary, 1958, Pt. II, Sec.
3 (i), p. 476.
2. Definitions-In this Act, unless the
context otherwise requires, -
(a) “Appropriate State”
means-
(i) In relation to a dealer
who has one or more places of business situated in the same State, that State;
(ii) In relation to a dealer who has 1* *
* places of business situated in different States, every such State
with respect to the place or places of business situated within its territory,
2* * * * *
3[aa] “Business” includes-
(i) Any trade, commerce or
manufacture, or any adventure or concern in the nature of trade, commerce or
manufacture, whether or not such trade, commerce manufacture, adventure or
concern is carried on with a motive to make gain or profit and whether or not
any gain or profit accrues from such trade, commerce, manufacture, adventure or
concern; and
(ii) Any
transaction in connection with or incidental or ancillary to, such trade, commerce,
manufacture, adventure or concern;
(ab) “Crossing the customs frontiers of India”
means crossing the limits of the area of a customs station in which imported
goods or export goods are ordinarily kept before clearance by customs
authorities.
Explanation-For the purposes of this clause, “customs station” and “customs
authorities” shall have the same meanings as in the Customs Act, 1962 (52 of
1962);]
4[(b) “Dealer”
means any person who carries on (whether regularly or otherwise) the business
of buying, selling, supplying or distributing goods, directly or indirectly,
for cash or for deferred payment, or for commission remuneration or other
valuable consideration, and includes-
(i) A local authority, a body corporate, a
company, any co-operative society or other society, club, firm, Hindu undivided
family or other association of persons which carries on such business;
(ii) A factor, broker, commission agent, del
credere agent, or any other merchant agent, by whatever name called, and
whether of the same description as hereinbefore mentioned or not, who carries
on the business of buying, selling, supplying or distributing, goods belonging
to any principal whether disclosed or not; and
(iii) An auctioneer who carries on the business
of selling, or auctioning goods belonging to any principal, whether disclosed
or not and whether the offer of the intending purchaser is accepted by him or
by the principal or a nominee of the principal.
Explanation 1-Every person who acts as an agent, in any State, of
a dealer residing outside that State and buys, sells, supplies, or distributes,
goods in the State or acts on behalf of such dealer as-
(i) A mercanthe agent as defined in the
Sale of Goods Act, 1930 (3 of 1930) or
(ii) An agent for handling of goods or
documents of title relating to goods, of
(iii) An agent for the collection or the
payment of the sale price of goods or as a guarantor for such collection or
payment,
And every local branch or
office in a State of a firm registered outside that State or a company or other
body corporate, the principal office or headquarters whereof is outside that
State, shall be deemed to be a dealer for the purposes of this Act.
Explanation 2-A Government which, whether or not in the course of business, buys,
sells, supplies or distributes, goods, directly or otherwise, for cash or for
deferred payment or for commission, remuneration or other valuable
consideration, shall except in relation to any sale, supply or distribution of
surplus, unserviceable or old stores or materials or waste products or obsolete
or discarded machinery or parts or accessories thereof, be deemed to be a
dealer for the purposes of this Act;]
(c) “Declared goods,” means goods declared under
section 14 to be of special importance in interstate or commerce',
(d) “Goods” includes all materials, articles,
commodities and all other kinds of movable property, but does not include 5[newspapers]
actionable claims, stocks, shares and securities
6[(dd) “Place
of business” includes-
(i) In any case where a dealer carries oil
business through an agent by (whatever name called), the place of business of
such agent;
(ii) A warehouse, godown or other place where
a dealer stores his goods; and
(iii) A place where a dealer keeps his books of
account;]
(e) “Prescribed” means prescribed by rules
made under this Act;
(f) “Registered dealer” means a dealer who
is registered under section 7;
(g) “Sale”, with its grammatical variations
and cognate expressions, means any transfer of property in goods by one person
to another for cash or for deferred payment or for any other valuable
consideration, and includes a transfer of goods on the hire-purchase or other
system of payment by instalments, but does not include a mortgage or
hypothecation of or a charge or pledge on goods:
(h) “Sale price” means the amount payable to
a dealer as consideration for the sale of any goods, less any sum allowed as
cash discount according to the practice normally prevailing in the trade, 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;
(i) “Sales tax law” means any law for the
time being in force in any State or part thereof which provides for the levy of
taxes on the sale or purchase of goods generally or on any specified goods
expressly mentioned in that behalf, and “general sales tax law” means the law
for the time being in force in any State or part thereof which provides for the
levy of tax on the sale or purchase of goods generally;
(j) “Turnover” used in relation to any
dealer liable to tax under this Act means the aggregate of the sale prices
received and receivable by him in respect of sales of any goods in the course
of inter-State trade or commerce made during any prescribed period 7[and
determined in accordance with the provisions of this Act and the rules made
thereunder];
(k) “Year”, in relation to
a dealer, means the year applicable in relation to him under the general sales
tax law of the appropriate State, and where there is no such year applicable,
the financial year.
1. The words
“one or more” omitted by Act 31 of 1958, s. 2 (w.e.f. 1-10-1958).
2. Explanation
omitted by s. 2, ibid. (w.e.f. 1-10-1958).
3. Ins. by Act
103 of 1976, s. 2.
4. Subs. by Act 103 of 1976, s. 2. for cl.
(b).
5. lns. by Act 31 of 1958, s. 2 (w.e.f.
1-10-1958).
6. Ins. by Act 31 of 1958, s. 2 (w.e.f.
1-10-1958).
7. Subs. by Act
28 of 1969. s. 2, for “and determined in the prescribed manner”
(retrospectively).
CHAPTER
II
FORMULATION OF PRINCIPLES FOR DETERMINING WHEN A SALE OR PURCHASE OF GOODS TAKES PLACE IN THE COURSE OF INTER-STATE TRADE OR COMMERCE OR OUTSIDE A STATE OR IN THE COURSE OF IMPORT OR EXPORT
3. When
is a sale or purchase of goods said to take place in the course of inter-State
trade or commerce-A sale or purchase of goods
shall be deemed to take place in the course of inter-State trade or commerce if
the sale or purchase-
(a) Occasions the movement of goods from one
State to another; or
(b) Is effected by a transfer of documents
of title to the goods during their movement from one State to another.
Explanation 1-Where goods are delivered to a carrier or other bailee for
transmission, the movement of the goods shall, for the purposes of clause (b),
be deemed to commence at the time of such delivery and terminate at the time when
delivery is taken from such carrier or bailee.
Explanation 2-Where the movement of goods commences and terminates in the same State
it shall not be deemed to be a movement of goods from one State to another by
reason merely of the fact that in the course of such movement the goods pass
through the territory of any other State.
4. When
is a sale or purchase of goods said to take place outside a State-
(l)
Subject to the provisions
contained in section 3, when a sale or purchase of goods is determined in
accordance with sub-section (2) to take place inside a State, such sale or
purchase shall be deemed to have taken place outside all other States.
(2) A sale or purchase of goods shall be
deemed to take place inside a State, if the goods are within the State-
(a) In the case of specific of ascertained
goods, at the time the contract of sale is made; and
(b) In the case of unascertained or future
goods, at the time of their appropriation to the contract of sale by the seller
or by the buyer, whether assent of the other party is prior or subsequent to
such appropriation.
Explanation-Where there is a single contract of sale or purchase of goods situated
at more places than one, the provisions of this subsection shall apply as if there
were separate contracts in respect of the goods at each of such places.
5. When
is a sale or purchase of goods said to take place in the course of import or
export-
(1)
A sale or purchase of goods shall
be deemed to take place ill the course of the export of the goods out of the
territory of India only if the sale or purchase either occasions such export or
is effected by a transfer of documents of title to the goods after the goods
have crossed the customs frontiers of India.
(2) A sale or purchase of goods shall be
deemed to take place in the course of the import of the goods into the
territory of India only if the sale or purchase either occasions such import or
is effected by a transfer of documents of title to the goods before the goods
have crossed the customs frontiers of India.
1[(3) Notwithstanding anything contained in subsection (1), the last
sale or purchase of any goods preceding the sale or purchase occasioning the
export of those goods out of the territory of India shall also be deemed to be
in the course of such export, if such last sale or purchase took place after,
and was for the purpose of complying with, the agreement or order for or in
relation to such export.]
1.
Ins. by Act 103 of 1976, s. 3
(w.e.f 1-4-1976).
CHAPTER III
INTER-STATE SALES TAX
6. Liability to tax on inter-State sales-
1[(1)] Subject to the other provisions contained in
this Act, every dealer shall, with effect from such date 2 as the Central Government may, by notification
in the Official Gazette, appoint, not being earlier than thirty day from the
date of such notification, be liable to pay tax under this Act on all sales 3[of
goods other than electrical energy] effected by him in the course of
inter-State trade or commerce during any year on and from the date so notified:
4[Provided that a dealer shall not be liable to pay tax under this Act
on any sale of goods which, in accordance with the provisions of sub-section
(3) of section 5 is a sale in the course of export of those goods out of the
territory of India.]
5[(1A) A dealer shall be liable to pay tax under this Act oil a sale of
any goods effected by him in the course of inter-State trade or commerce
notwithstanding that no tax would have been leviable (whether on the seller or
the purchaser) under the sales tax law of the appropriate State if that sale
had taken place inside that State.]
6[(2) Notwithstanding anything contained in sub-section (l) or
sub-section (1A), where a sale of any goods in the course of inter-State trade
or commerce has either occasioned the movement of such goods from one State to
another or has been effected by a transfer of documents of title to such goods
during their movement from one State to another, any subsequent sale during
such movement effected by a transfer of documents of title to such goods, -
(a) To the Government, or
(b) To a registered dealer other than the
Government, if the goods are of the description referred to in subsection (3)
of section 8, shall be exempt from tax under this Act:
Provided that no such
subsequent sale shall be exempt from tax under this sub-section unless the
dealer effecting the sale furnishes to the prescribed authority in the
prescribed manner and within the prescribed time or within such further time as
that authority may, for sufficient cause, permit, -
(a) A certificate duly filled and signed by
the registered dealer from whom the goods were purchased containing the
prescribed particulars in a prescribed form obtained from the prescribed
authority; and
(b) If the subsequent sale is made-
(i) To a registered dealer, a declaration
referred to in clause (a) of sub-section (4) of section 8, or
(ii) To the Government, not being a
registered dealer, a certificate referred to in clause (b) of subsection (4) of
section 8:
Provided further that it
shall not be necessary to furnish the declaration or the certificate referred
to in clause (b) of the preceding proviso in respect of a subsequent sale of
goods if, -
(a) The sale or purchase of such goods is,
under the sales tax law of the appropriate State exempt from tax generally or
is subject to tax generally at a rate which is lower than 7[four percent] (whether called a
tax or fee or by any other name); and
(b) The dealer effecting such subsequent
sale proves to the satisfaction of the authority referred to in the preceding
proviso that such sale is of the nature referred to in clause (a) or clause (b)
of this sub-section.]
1. S.
6 re-numbered as sub-section (1) of that section by Act 31 of 1958, s. 3 (w.e.f
1-10-1958).
2. Ist
July, 1957, vide Notification No. S.R.O. 940-A, dated 26th March, 1957, Gazette
of India, Extraordinary, 1957, Pt. 11, Sec. 3, p. 1233/1.
3. Ins.
by Act 61 of 1972, s. 2 (w.e.f. 1-4-1973).
4. Ins.
by Act 103 of 1976, s. 4 (w.e.f. 1-4-1976).
5. Ins.
by Act 28 of 1969, s. 3 (retrospectively).
6. Subs. by Act 61 of
1972, s. 2, for sub-section (2) (w.e.f. 1-4-1973).
7. Subs. by Act 25 of
1975, s. 38, for “three percent.” (w.e.f. 1-7-1975).
1[6A. Burden of proof, etc., in case of transfer
of goods claimed otherwise than by way of sale-
(1)
Where any dealer claims that he is
not liable to pay tax under this Act, in respect of any goods, on the ground
that the movement of such goods from one State to another was occasioned by
reason of transfer of such goods by him to any other place of his business or
to his agent or principal, as the case may be, and not by reason of sale, the
burden of proving that the movement of those goods was so occasioned shall be
on that dealer and for this purpose he may furnish to the assessing authority,
within the prescribed time or within such further time as that authority may,
for sufficient cause, permit, a declaration, duly filled and signed by the
principal officer of the other place of business, or his agent or principal, as
the case may be, containing the prescribed particulars in the prescribed form
obtained from the prescribed authority, along with the evidence of despatch of
such goods.
(2) If the assessing authority is satisfied
after making such inquiry as he may deem necessary that the particulars
contained in the declaration furnished by a dealer under sub-section (1) are
true he may, at the time of, or at any time before, the assessment of the tax
payable by the dealer under this Act, make an order to that effect and
thereupon the movement of goods to which the declaration related shall be
deemed for the purpose of this Act to have been occasioned otherwise than as a
result of sale.
Explanation-In this section, “assessing authority”, in relation to a dealer, means
the authority for the time being competent to assess the tax payable by the
dealer under this Act.]
1. Ins. by Act 61 of
1972, s. 3 (w..e.f. 1-4-1973).
(l)
Every dealer liable to pay tax
under this Act shall, within such time as may be prescribed for the purpose,
make ail application for registration under this Act to such authority in the appropriate
State as the Central Government may, by general or special order, specify and
every such application shall contain such particulars as may be prescribed.
1[(2) Any dealer liable to pay tax under the sales tax law of the
appropriate State, or where there is no such law in force in the appropriate
State or any part thereof, any dealer having a place of business in that State
or part, as the case may be, may. notwithstanding that he is not liable to pay
tax under this Act, apply for registration under this Act to the authority
referred to in sub-section (1), and every such application shall contain such
particulars as may be prescribed.
Explanation-For the purposes of this sub-section, a dealer shall be deemed to be liable
to pay tax under the sales tax law of the appropriate State notwithstanding
that under such law a sale or purchase made by him is exempt from tax or a
refund or rebate of tax is admissible in respect thereof.]
2[(2A) Where it appears
necessary to the authority to whom an application is made under subsection (1)
or subsection (2) so to do for the proper realisation of the tax payable under
this Act or for the proper custody and use of the forms referred to in clause
(a) of the first proviso to subsection (2) of section 6 or sub-section (1) of
section 6A or clause (a) of sub-section (4) of section 8, he may, by an order
in writing and for reasons to be recorded therein, impose as a condition for
the issue of a certificate of registration a requirement that the dealer shall
furnish in the prescribed manner and within such time as may be specified in
the order such security as may be so specified, for all or any of the aforesaid
purposes.]
(3) If the authority to whom an application
under sub-section (1) or sub-section (2) is made is satisfied that the
application is in conformity with the provisions of this Act and the rules made
thereunder 2[and
the condition, if any, imposed under sub-section (2A), has been complied with]
he shall register the applicant and grant to him a certificate of registration
in the prescribed form which shall specify the class or classes of goods for
the purposes of sub-section (1) of section 8.
3(3A) Where it appears necessary to the authority granting a
certificate of registration under this section so to do for the proper
realisation of tax payable under this Act or for the proper custody and use of
the forms referred to in sub-section (3A), he may, at any time while such
certificate is in force, by an order in writing and for reasons to be recorded
therein, require the dealer, to whom the certificate has been granted, to
furnish within such time as may be specified in the order and in the prescribed
manner such security or, if the dealer has already furnished any security in
pursuance of an order under this sub-section or subsection (2A), such
additional security, as may be specified in the order, for all or any of the
aforesaid purposes.
4[(3B) No dealer shall be required to furnish any
security under sub-section (2A) or any security or additional security under
sub-section (3A) unless he has been given an opportunity of being heard.
(3BB)
The amount of security which a dealer
may be required to furnish under sub-section (2A) or sub-section (3A) or the
aggregate of the amount of such security and the amount of additional security
which he may be required to furnish under sub-section (3A), by the authority
referred to therein shall not exceed-
(a) In the case of a dealer other than a
dealer who has made an application, or who has been registered in pursuance of
an application, under sub-section (2), a sum equal to the tax payable under
this Act, in accordance with the estimate of such authority, on the turnover of
such dealer for the year in which such security or, as the case may be,
additional security is required to be furnished; and
(b) In the case of a dealer who has made an
application, or who has been registered in pursuance of an application, under
sub-section (2), a sum equal to the tax leviable under this Act, in accordance
with the estimate of such authority on the sales to such dealer in the course
of inter-state trade or commerce in the year in which such security or, as the
case may be additional security is required to be furnished, had such dealer
been not registered under this Act,]
(3C)
Where the security furnished by a
dealer under sub-section (2A) or sub-section (3A) is in the form of a surety
bond and the surety becomes insolvent or dies, the dealer shall within thirty
days of the occurrence of any of the aforesaid events, inform the authority
granting the certificate of registration and shall within ninety days of such
occurrence furnish a fresh surety bond or furnish in the prescribed manner
other security for the amount of the bond.
(3D)
The authority granting the
certificate of registration may by order and for good and sufficient cause
forfeit the whole or any part of the security furnished by a dealer, -
(a) For realising any amount of tax or
penalty payable by the dealer;
(b) If the dealer is found to have misused
any of the forms referred to in subsection (2A) to have failed to keep them in
proper custody:
Provided that no order shall
be passed under this sub-section without giving the dealer an opportunity of
being heard.
(3E)
Where by reason of an order under
subsection (3D), the security furnished by any dealer is rendered insufficient,
he shall make up the deficiency in such manner and within such time as may be
prescribed.
(3F)
The authority issuing the forms
referred to in sub-section (2A) may refuse to issue such forms to a dealer who
has failed -to comply with an order under that sub-section or sub-section (3A),
or with the provisions of sub-section (3C) or sub-section (3E), until the
dealer his complied with such order or such provisions, as the case may be.
(3G)
The authority granting a certificate
of registration may, oil application by the dealer to whom it has been granted,
order the refund of any amount or part thereof deposited by the dealer by way
of security under this section, if it is not required for the purposes of this
Act.
(3H)
Any person aggrieved by an order
passed under subsection (2A), sub-section (3A), sub-section (3D) or sub-section
(3G) may, within thirty days of the service of the order on him, but after
furnishing the security, prefer, in such form and manner as may be prescribed,
an appeal against such order to such authority (hereinafter this section
referred to as the “appellate authority”) as may be prescribed:
Provided that the appellate
authority may, for sufficient cause, permit such person to present the appeal-
(a) After the expiry of the said period of
thirty days; or
(b) Without furnishing the whole or any part
of such security.
(3I) The procedure to be followed in hearing
any appeal under sub-section (3H), and the fees payable in respect of such
appeals shall be such as may be prescribed.
(3J)
The order passed by the appellate
authority in any appeal under sub-section (3H) shall be final.]
5[(4) A certificate of registration granted under this section may-
(a) Either on the application of the dealer
to whom it has been granted or, where no such application has been made, after
due notice to the dealer, be amended by the authority granting it if he is
satisfied that by reason of the registered dealer having changed the name,
place or nature of his business or the class or classes of goods in which he
carries on business or for any other reason the certificate of registration
granted to him requires to be amended; or
(b) Be cancelled by the authority granting
it where he is satisfied, after due notice to the dealer to whom it has been
granted, that he has ceased to carry on business 6[or has ceased to exist or has
failed without sufficient cause, to comply with an order under sub-section (3A)
or with the provisions of sub-section (3C) or sub-section (3E) or has failed to
pay any tax or penalty payable under this Act], or in the case of a dealer
registered under sub-section (2) has ceased to be liable to pay tax under the
sales tax law of the appropriate State or for any other sufficient reason.]
(5) A registered dealer may apply in the
prescribed manner not later than six months before the end of a year to the
authority which granted his certificate of registration for the cancellation of
such registration, and the authority shall, unless the dealer is liable to pay
tax under this Act, cancel the registration accordingly, and where he does so,
the cancellation shall take effect from the end of the year.
1. Subs. by Act 31 of
1958, s. 4, for sub-section (2) (w.e.f. 1-10-1958).
2. Ins. by Act 61 of
1972, s. 4 (w.e.f. 1-4-1973).
3. In, by Act 61 of
1972, s. 4 (w.e.f. 1-4-1973).
4. Subs, by Act 103 of
1976, s. 5, for sub-section (3B).
5. Subs. by Act 31 of
1958, s. 4, for sub-section (4) (w.e.f. 1-10-1958).
6. Subs. by Act 61 of
1972, s. 4, for “or has ceased to exist” (w.e.f 1-4-1973).
8. Rates of tax
on sales in the course of inter-State trade or commerce-
1[(1) Every
dealer, who in the course of inter-State trade or commerce-
(a) Sells to the Government any goods; or
(b) Sells to a registered dealer other than
the Government goods of the description referred to in sub-section (3).
Shall be liable to pay tax
under this Act, which shall be 2[four percent.] of his turnover.
(2) The
tax payable by any dealer on his turnover in so far as the turnover or any part
thereof relates to the sale of goods in the course of inter-State trade or
commerce not falling within sub-section (1)-
(a) In
the case of declared goods, shall be calculated 3[at twice the rate] applicable to
the sale or purchase of such goods inside the appropriate State; and
(b) In the case of goods other than declared
goods, shall be calculated at the rate of 4[ten percent.] or at the rate applicable to the
sale or purchase of such goods inside the appropriate State, whichever is
higher.
And for the purpose of
making any such calculation any such dealer shall be deemed to be a dealer
liable to pay tax under the sales tax law of the appropriate State,
notwithstanding that he, in fact may not be so liable under that law.
5[(2A) Notwithstanding
anything contained in sub-section (1A) of section 6 or sub-section (1) 6[or
clause (b) of sub-section (2)] of this section, the tax payable under this Act
by a dealer on his turnover in so far as the turnover or any part thereof
relates to the sale of any goods, the sale or, as the case may be, the purchase
of which is, under the sales tax law of the appropriate State, exempt from tax
generally or subject to tax generally at a rate which is lower than 7[four
percent.] (Whether called a tax or fee or by any other name), shall be nil, or
as the case may be, shall be calculated at the lower rate.
Explanation-For the purposes of this sub-section a sale or purchase of any goods
shall not be deemed to be exempt from tax generally under the sales tax law of
the appropriate State if under that law the sale or purchase of such goods is
exempt only in specified circumstances or under specified conditions or the tax
is levied on the sale or purchase of such goods at specified stages or
otherwise than with reference to the turnover of the goods.]
(3) The goods referred to in clause (b) of
sub-section (I)-
8* * * *
(b) 9* * * are goods of the class or
classes specified in he certificate of registration of the registered dealer
purchasing the goods as being intended for re-sale by him or subject to
any rules made by the Central Government in this behalf, for use by him in the
manufacture or processing of goods for sale or in mining or in the Generation
of distribution of electricity or any other form of power;
(c) Are containers or other materials
specified in the certificate of registration of the registered dealer
purchasing the goods, being containers or materials intended for being used for
the packing of goods for sale;
(d) Are containers or other materials used
for the packing of any goods or classes of goods specified in the certificate
of registration referred to in 10* * *
clause (b) or for the packing of any containers or other materials specified in
the certificate of registration referred to in clause (c).
(4) The provisions of sub-section (1) shall not apply to any sale in the course of inter-State trade of commerce unless the dealer selling the goods furnishes to the prescribed authority in the prescribed manner-
(a) A declaration duly filled and signed by
the registered dealer to whom the goods are sold containing the prescribed
particulars in a prescribed form obtained from the prescribed authority; or
(b) If the goods are sold to the Government,
not being a registered dealer, a certificate in the prescribed form duly filled
and signed by a duly authorised officer of the Government:]
11[Provided that the declaration referred to in
clause (a) is furnished within the prescribed time or within such further time
as that authority may, for sufficient cause, permit.]
12(5) Notwithstanding any thing contained in this section, the State
Government may, if it is satisfied that it is necessary so to do in the public
interest, by notification in the Official Gazette and subject to such
conditions as may be specified therein direct.
(a) That no tax under this Act shall be payable
by any dealer having his place of business in the State in respect of the sales
by him. in the course of interstate trade or commerce, from any such place of
business of any such goods or classes of goods as may be specified in the
notification, or that the tax of) such sales shall be calculated at such lower
rates than those specified in subsection (1) or subsection (2) as may be
mentioned in the notification;
(b) That in respect of all sales of goods or
sales of such classes of goods as may be specified in the notification, which
are made, in the course of inter-State trade or commerce, by any dealer having
his place of business in the State or by any class of such dealers as may be
specified in the notification to any person or to such class of persons as may
be specified in the notification, no tax under this Act shall be payable or the
tax on such sales shall be calculated at such lower rates than those specified
in subsection (1) or sub-section (2) as may be mentioned in the notification.]
1. Subs. by Act 31 of 1958, s. 5, for
sub-section (1) to (4) (w.e.f. 1-10-1958).
2. Subs. by Act 25 of 1975, s. 38, for
“three percent.” (w.e.f 1-7-1975).
3. Subs. by s. 38, ibid., for “at the
rate” (w.e.f. 1-7-1975).
4. Subs. by Act 8 of 1963, s. 2, for “seven
percent.” (w.e.f. 1-4-1963).
5. Subs. by Act 61 of 1972, s. 5, for
sub-section (2A) (w.e.f 14-1973).
6. Subs. by Act 25 of 1975, s. 38, for “or
sub-section (2)” (w.e.f 1-7-1975).
7. Subs. by s. 38, ibid. for “Three
percent.” (w.e.f 1-7-1975).
8. Cl. (a) omitted by Act 8 of 1963, s. 2
(w.e.f 1-4-1963).
9. Certain words omitted by Act 8 of 1963,
s. 2 (w.e.f 14-1963).
10. The words, brackets and letter “clause
(ci) or” omitted by Act 8 of 1963, s. 2, (w.e.f. 1-4-1963).
11. Ins. by Act 61 of 1972, s. 5 (w.e.f.
1-4-1973.
12.
Subs. by Act 61 of 1972, s. 5, for
sub-section (5) (w.e.f 1-4-1973).
1[8A. Determination of turnover-
(1) In determining the turnover of a dealer
for the purpose of this Act, the following deductions shall be made from the
aggregate of the sale prices, namely: -
(a) The amount arrived at by applying the
following formula-
Rate of tax x aggregate of
sale prices
100 + rate of tax
Provided that no deduction on
the basis of the above formula shall be made if the amount by way of tax
collected by a registered dealer, in accordance with the provisions of this
Act, has been otherwise deducted from the aggregate of sale prices.
Explanation-Where the turnover of a dealer is taxable at different rates, the
aforesaid formula shall be applied separately in respect of each part of the
turnover liable to a different rate of tax;
(b) The sale price of all goods returned to
the dealer by the purchasers of such goods, -
(i) Within a period of three months from
the date of delivery of the goods, in the case of goods returned before the
14th day of May, 1966;
(ii) Within a period of six months from the
date of delivery of the goods, in the case of goods returned oil or after the
14th day of May, 1966:
Provided that satisfactory
evidence of such return of goods and of refund of adjustment in accounts of the
sale price thereof is produced before the authority competent to assess or, as
the case may be, re-assess the tax payable by the dealer under this Act; and
(c) Such other deductions as the Central Government may, having regard to the prevalent market conditions, facility of trade and interests of consumers, prescribe.
(2) Save as otherwise provided in subsection
(1), in determining the turnover of a dealer for the purposes of this Act, no
deduction shall be made from the aggregate of the sale prices.]
1. Ins. by Act 28 of 1969, s. 5
(retrospectively).
1[2.[9. Levy and collection of tax and
penalties-
(1) The tax payable by any dealer under this
Act on sales of goods effected by him in the course of interstate trade or
commerce, whether such sales fall within clause (a) or clause (b) of section 3,
shall be levied by the Government of India and the tax so levied shall be
collected by that Government in accordance with the provision of subsection (2)
in the State from which the movement of the goods commenced:
3[Provided that, in the case of a sale of goods during their movement
from one State to another, being a sale subsequent to the first sale in respect
of the same goods and being also a sale which does not fall within subsection
(2) of section 6, the tax shall be levied and collected-
(a) Where such subsequent sale has been
effected by a registered dealer, in the State from which the registered dealer
obtained or, as the case may be, could have obtained, the form prescribed for
the purposes of clause (a) of subsection (4) of section 8 in connection with
the purchase of such goods, and
(b) Where such subsequent sale has been
effected by all unregistered dealer in the State from which such subsequent
sale has been effected.]
(2) Subject to the other provisions of this
Act and the rules made thereunder, the authorities for the time being empowered
to assess, re-assess, collect and enforce payment of any tax under general
sales tax law of the appropriate State shall, on behalf of the Government of
India, assess re-assess, collect and enforce payment of tax, including any
penalty, payable by a dealer under this Act as if the tax or penalty payable by
such a dealer under this Act is a tax or penalty payable under the general
sales tax law of the State; and for this purpose they may exercise all or any
of the powers they have under the general sales tax law of the State; and the
provisions of such law, including provisions relating to returns, provisional
assessment, advance payment of tax, registration of the transferee of any
business, imposition of the tax liability of a person carrying on business oil
the transferee of, or successor to, such business, transfer of liability of any
firm or Hindu undivided family to pay tax in the event of the dissolution of
such firm or partition of such family, recovery of tax from third parties,
appeals, reviews, revisions, references.
4[refunds,
rebates, penalties] 5[Charging or payment of interest,] compounding of
offences and treatment of documents furnished by a dealer as confidential,
shall apply accordingly;
Provided that if in any
State or part thereof there is no general sales tax law in force, the Central
Government may, by rules made ill this behalf make necessary provision for all
or any of the matter specified in this subsection.
6[(2A) All the provisions relating to offences and
penalties (including provisions relating to penalties in lieu of prosecution
for all offence or in addition to the penalties or punishment for all offence
but excluding the provisions relating to matters provided for in section 10 and
10A) of the general sales tax law of each State shall, with necessary
modifications, apply in relation to the assessment, reassessment, collection
and the enforcement of payment of any tax required to be collected under this
Act in such State or in relation to any process connected with such assessment,
reassessment, collection or enforcement of payment as if the tax under this Act
were a tax under such sales tax law.]
(3) The proceeds in any financial year of any tax, including any penalty levied and collected under this Act in any State (other than a Union Territory) on behalf of the Government of India shall be assigned to that State and shall be retained by it; and the proceeds attributable to Union Territories shall form part of the Consolidated Fund of India.]
1. Subs. by Act 31 of 1969, s. 6, for the original
s. 9 (w.e.f. 1-10-1958).
2. Subs. by Act 28 of 1969, s. 6 for s. 9
(retrospectively).
3. Subs. by Act 103 of 1976, . 6, fear the
proviso.
4. Subs. by Act 61 of 1972, s. 6, for
“refunds, penalties” (w.e.f. 1-4-1973).
5. Ins. by Act 103 of 1976, s. 6
(retrospectively).
6. Ins. by ibid., s. 7.
9A. Collection
of tax to be only by registered dealers-No person who is
not a registered dealer shall collect in respect of any sale by him of goods in
the course of interstate trade or commerce any amount by way of tax
under this Act, and no registered dealer shall make any such collection except
in accordance with this Act and the rules made thereunder.
1[9B. Rounding off of tax, etc. -The
amount of tax, penalty, fine or any other sum payable, and the amount of refund
due, under the provisions of this Act shall be rounded off to the nearest rupee
and, for
this purpose, where such amount contains a part of a rupee consisting of paise,
then. if such part is fifty paise or more, it shall be increased to one rupee
and if such part is less than fifty paise, it shall be ignored:
Provided that nothing in
this section shall apply for the purpose of collection by a dealer of any
amount by way of tax under this Act in respect of any sale by him of goods in
the course of inter-State trade or commerce.]
1. Ins. by Act 61 of 1972, s. 7 (w.e.f.
1-4-19731).
10. Penalties-If any person-
1[(a) Furnishes
a certificate or declaration under sub-section (2) of section 6 or subsection
(1) of section 6A or subsection (4) of section 8, which he knows, or has reason
to believe, to be false; or
(aa) Fails to get himself registered as required by section 7 or fails to comply with an order under sub-section (3A) or with the requirements of sub-section (3C) or sub-section (3E), of that section;]
(b) Being a registered dealer, falsely
represents when purchasing any class of goods that goods of such class are
covered by his certificate of registration; or
(c) Not being a registered dealer, falsely
represents when purchasing goods in the course of inter-State trade or commerce
that he is a registered dealer; or
(d) After purchasing any goods for any of
the purposes specified in 2[clause (b) or
clause (c) or clause (d)] of sub-section (3) of section 8 fails, without
reasonable excuse, to make use of the goods for any such purpose;
(e) Has in his possession any form
prescribed for the purpose of subsection (4) of section 8, which has not been
obtained by him or by his principal or by his agent in accordance with the
provisions of this Act or any rules made thereunder;
3[(j) Collects
any amount by way of tax in contravention of the provisions contained in
section 9A,]
He shall be punishable with
simple imprisonment, which may extend to six months, or with fine or with both;
and when the offence is a continuing offence, with a daily fine, which may
extend to fifty rupees for every day during which the offence continues.
1. Subs. by Act 61 of 1972, s. 8, for cl.
(a) (w.e.f. 1-4-1973).
2. Subs. by s. 8, ibid., for “clause (b)”
(w.e.f. 1-4-1973).
3. Ins. by Act 31 of 1958, s. 7 (w.e.f.
1-10-1958).
1[10A. Imposition
of penalty in lieu of prosecution-
2[(1) If any person
purchasing goods is guilty of an offence under clause (b) or clause (c) or
clause (d) of section 10, the authority who granted to him or, as the case may
be, is competent to grant to him a certificate of registration under this Act
may, after giving him a reasonable opportunity of being heard, by order in
writing, impose upon him by way of penalty a sum not exceeding one and a half
times 3[the
tax which would have been levied under sub-section (2) of section 8 in respect
of the sale to him of the goods, if the sale had been a sale falling within
that sub-section]:
Provided that no prosecution
for an offence under section 10 shall be instituted in respect of the same
facts on which a penalty has been imposed under this section.
4[(2) The penalty imposed upon any dealer under
sub-section (1) shall be collected by the Government of India in the manner
provided in sub-section (2) of section 9 -
(a) In the case of all offence falling under
clause (b) or clause (d) of section 10, in the State in which the person
purchasing the goods obtained the form prescribed for the purposes of clause
(a) of sub-section (4) of section 8 in connection with the purchase of such
goods;
(b) In the case of an offence falling under
clause (c) of section 10, in the State
in which the person purchasing the goods should have registered himself
if the offence had not been committed.]
1. Ins. by s. 9, ibid., (w.e.f.
1-10-1958).
2. S. 10A re-numbered as subsection (1) of
that section by Act 28 of' 1969, s. 7 (w.e.f. 1-10-1958).
3.
Subs. by Act 61 of 1972, s. 9, for
certain words (w.e.f. 1-4-1973).
4. Ins. by Act 28 of 1969, s. 7 (w.e.f.
1-10-1958).
(1) No court shall take cognizance of any
offence punishable under this Act or the rules made thereunder except with the
previous sanction of the Government within the local Limits of whose
jurisdiction the offence has been committed or of such officer of that
Government as it may, by general or special order, specify in this behalf; and
no court inferior to that of a presidency magistrate or a magistrate of the
first class shall try any such offence.
(2) All offences punishable under this Act
shall be cognizable and bailable.
12. Indemnity-No
suit,
prosecution or other legal proceeding shall lie against any officer of
Government for anything which is in good faith done or intended to be done
under this Act or the rules made thereunder.
13. Power to
make rules-
(1) The Central Government may, by notification
in the Official Gazette, make rules providing for-
(a) The manner in which application for
registration may be made under this Act, the particulars to be contained
therein, the procedure for the grant of such registration, the circumstances in
which registration may be refused and the form in which the certificate of
registration may be given;
(b) The
period of turnover, the manner in which the turnover in rotation to the sale of
any goods under this Act shall be determined, and the deductions which may be
made 1[under
clause (c) of subsection (1) of section 8A] in the process of such
determination;
(c) The cases and circumstances in which,
and the conditions subject to which, any registration granted under this Act
may be cancelled:
2[(d) The
form in which and the particulars to be contained in any declaration or
certificate to be given under this Act 3[the State of origin of such form or certificate
and the time within which any such certificate or declaration shall be produced
or furnished;
(e) The enumeration of goods or class of
goods used in the manufacture or processing of goods for sale or in mining or
in the generation or distribution of electricity or any other form of power;
(f) The
matters in respect of which provision may be made under the provision to 4[sub-section
(2)] of section 9;
(g) The fees payable in respect of
applications under this Act.]
5[(2) Every
rule made by the Central Government under subsection (1) shall be laid, as soon
as may be after it is made, before each House of Parliament while it is in
session, for a total period of thirty days which may be comprised in one
session or in two or more successive sessions, and if, before the expiry of the
session immediately following the session or the successive sessions aforesaid,
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.]
(3) The State Government may make rules,
not inconsistent with the provisions of this Act and the rules made under
sub-section (1), to carry out the purposes of this Act.
(4) In particular and without prejudice to
the powers conferred by sub-section (3), the State Government may make rules
for all or any of the following purposes, namely: -
(a) The publication. of lists of registered
dealers, of the amendments made in such lists from time to time, and the
particulars to he contained in such lists;
6[(aa) The
manner in which security may be furnished under sub-section (2A) or subsection
(3A) or subsection (3C) of section 7 and the manner in which and the time
within which any deficiency may be made up under sub-section (3E) of that
section;]
(b) The form and manner in which accounts
relating to sales in the course of inter-State trade or commerce shall be kept
by registered dealers;
(c) The furnishing of any information
relating to the stocks of goods of purchases, sales and deliveries of books by,
any dealer or any other information relating to his business as may be
necessary for the purposes of this Act;
(d) The inspection of any books, accounts
or documents required to be kept under this Act, the entry into any premises at
all reasonable times for the purposes of searching for any such books, accounts
or documents kept or suspected to be kept in such premises and the seizure of
such books, accounts or documents,
7[(e) The
authority from whom, the conditions subject to which and fees subject to
payment of which any form of certificate prescribed under clause (a) of the
first proviso to sub-section (2) of section 6 or of declaration prescribed
under sub-section (1) of section 6A or sub-section (4) of section 8 may be
obtained, the manner in which such forms shall be kept in custody and records
relating thereto maintained and the manner in which any such form may be used
and any such certificate or declaration may be furnished;
(ee) The form and manner in which, and the
authority to whom, an appeal may be preferred under subsection (3H) of section
7, the procedure to be followed in hearing such appeals and the fees payable in
respect of such appeals;]
(f) In the case of all Undivided Hindu
Family, association, club, society, firm or company or in the case of a person
who carries on business as a guardian or trustee or otherwise on behalf of
another person, the furnishing of a declaration stating the name of the person
who shall be deemed to be the manager in relation to the business of the dealer
in the State and the form in which such declaration may be given;
(g) The. time within which, the manner in
which and 8[the
authorities to whom] any change in the ownership of any business or in 9[the
name, place or nature] of any business carried on by any dealer shall be
furnished.
(5) In making any rule under this section 10[the
Central Government or as the case may be, the State Government] may direct that
a breach thereof shall be punishable with fine which may extend to five hundred
rupees and when the offence is a continuing offence, with a daily fine which
may extend to fifty rupees for every day during which the offence continues.
1. Ins. by Act 61 of 1972, s. 10 (w.e.f.
1-4-1973).
2.
Subs. by Act 31 of 1958, s. 9, for
cl. (d) (w.e.f.1-10-1958).
3.
Ins. by Act 61 of 1972, s. 10
(w.e.f. 1-4-1973).
4. Subs. by Act 29 of 1969, s. 8, for “sub-section
(3)” (retrospectively).
5. Subs. by Act 61 of 1972, s. 10, for
sub-section (2) (w.e.f. 1-4-1973).
6. Ins. by s. 10, ibid. (w.e.f. 1-4-1973).
7. Subs. by s. 10, ibid. for cl. (e)
(w.e.f. 1-4-1973).
8. Subs. by Act 31 of 1958, s. 9, for “the
authorities to which” (w.e.f. 1-10-1958).
9. Subs. by s. 9, ibid., for “the nature”
(w.e.f. 1-10-1958).
10. Subs. by Act 61 of 1972, s. 10, for “the
State Government” (w.e.f. 1-4-1973).
CHAPTER
IV
GOODS
OF SPECIAL IMPORTANCE IN INTER-STATE
TRADE
OR COMMERCE
14. Certain
goods to be of special importance in inter-State trade or commerce-It
is hereby declared
that the following goods are of special importance ill interstate trade or
commerce: -
1[(i) Cereals,
that is to say,
(i) Paddy (Oryza sativa L.);
(ii) Rice (Oryza sativa L.);
(iii) Wheat (Triticum vulgar, T. compactum, T.
sphaerococcum, T. durum, T. awstivaum L. T. dicoccum);
(iv)
Jowar or milo (Sorghum vulgare
Pers);
(v) Bakra (Pennisetum typhoideum L.);
(vi) Maize (Zea mays D.);
(vii) Ragi (eleusine corcana Gaertn.);
(viii) Kodon (paspalum scrobiulatum L.);
(ix) Kutki (Panicum miliare L.);
(x) Barley (Hordeum vulgare L.);
2[3 (ia)] Coal, including coke in all its forms, but
excluding charcoal:
Provided that during the
period commencing on the 23rd day of February, 1967 and ending with the date of
commencement of section 11 of the Central Sales Tax (Amendment) Act, 1972 (61
of 1972), this clause shall have effect subject to the modification that the
words “but excluding charcoal” shall be omitted;]
(ii) Cotton, that is to say all kinds of
cotton (indigenous or imported) in its unmanufactured state, whether ginned or
unginned, baled, pressed or otherwise, but not including cotton waste;
4[(iia) Cotton
fabrics covered under heading Nos. 52.05, 52.06, 52.07, 52.08, 52.09, 52.10,
52.11, 52.12, 58.01, 58.02, 58.03, 58.04, 58.05, 5[58.06,] 59.01, 59.03, 59.05,
59.06, and 60.01 of the Schedule to the Central Excise Tariff Act, 1985 (5 of
1986);
(iib) Cotton
yarn, but not including cotton yarn waste;]
6[(iic) Crude
oil that is to say, crude petroleum oils and crude oils obtained from
bituminous minerals (such as shale, calcareous rock, said), whatever their
composition, whether obtained from normal or condensation oil-deposits or by
the destructive distillation of bituminous minerals mid whether or not
subjected to all or any of the following processes. -
(1) Decantation;
(2) De-salting;
(3) Dehydration;
(4) Stabilisation in order to normalise the
vapour pressure;
(5) Elimination of very light fractions with
a view to returning them to the oil-deposits in order to improve the drainage
and maintain the pressure;
(6) The addition of only those hydrocarbons
previously recovered by physical methods during the course of the
above-mentioned processes;
(7) Any other minor process (including
addition of pour point depressants or flow improvers) which does not change the
essential character of the substance;]
(iii) Hides and skins, whether in a raw or
dressed state;
7[(iv) Iron
and steel, that is to say,(i) pig iron mid cast iron including 8[ingot
moulds, bottom plates], iron scrap, cost iron scrap, runner scrap and iron
skull scrap;
(iii) Steel semis (ingots, slabs, blooms and billets
of all qualities, shapes and sizes);
(iv) Steel bars, tin bars, sheet bars, hoe-bar
and sleeper bars;]
(iv) Steel bars (rounds, rods, squares, flat,
octagons and hexagons, plain and ribbed or twisted, in coil form as well as
straight lengths);
(v) Steel structurals (angles, joists,
channels, tees, sheet piling sections, Z-sections or any other rolled
sections);
(vi) Sheets, hoops, strips and skelp, both
black and galvanised, hot and cold rolled plain and corrugated, in all
qualifies. in straight lengths and in coil form, as rolled and in rivetted
condition;
9[(via) Pulses, that is to say,
-
(i) Gram or gulab gram (Cicerarietinum L.);
(ii) Tur or at arhar (Cajanus cajan);
(iii) Moong or green gram (Phaseolus aureus);
(iv) Masur or lentil (Lens esculemta Moench,
Lens culinarie Medic.);
(v) Urad or black gram (Phaseolus mungo);
(vi) Moth (Phaseolus aconitifolius Jacq);
(vii) Lakh or khesari (Lathyrus sativus L.)]
(vii) Plates both plain and chequered in all
qualities;
(viii) Discs, rings, forgings and steel castings;
(ix) Tool, alloy and special steels of any of
the above categories;
(x) Steel melting scrap in all forms
including steel skull, turnings and borings;
(xi) Steel tubes, both welded and seamless, of
all diameters and lengths, including tube fittings;
(xii) Tin-plates, both hot dipped and
electrolytic and tin free plates;
(xiii) Fish plate bars, hearing plate bars,
crossing steeper bars, fish plates, hearing plates, crossing sleepers and
pressed steel sleepers-heavy and light crane rails;
(xiv) Wheels, tyres, axles and wheels sets;
(xv) Wire rods and wires-rolled, drawn,
gaivanised, aluminised, tinned or coated such as by copper;
(xvi) Defectives, rejects, cuttings, or end
pieces of any of the above categories;]
10[(v) Jute,
that is to say, the fibre extracted from plants belonging to the species
Corchorrus capsularies and Corchorus olitorius and the fibre known as mesta or
bimli extracted from plants ot the species Hibiscus cannabinus and Hibiscus
sabdariffa-Varaltissima and the fibre known as Sunn or Sunn-hemp extracted from
plants of the species Crotalaria juncea whether baled or otherwise;]
11[(vi) Oilseeds, that is to say,-
(i) Groundnut or Peanut (Arachis hypogaea);
(ii) Sesamum or Tit (Sesamum orientale);
(iii) Cotton seed (Gossypium Spp),
(iv) Soyabean (Glycine seja);
(v) Rapeseed and Mustard-
(1) Torta. (Brassica campestris var toria);
(2) Rai (Brassica juticea);
(3) Jamba-Taramira (Eruca Satiya);
(4) Sarson, yellow and brown (Brassica campestris
var sarson);
(5) Banarsi Rai or True Mustard (Brassica
nigra);
(vi) Linseed (Linum usitatissimum);
(vii) Castor (Ricinus communis);
(viii) Coconut (i.e., Copra excluding tender
coconuts) (cocosnucifera);
(ix) Sunflower (Helianthus annus);
(x) Nigar seed (Guizotia abyssinica);
(xi) Neem, vepa (Azadirachta indica);
(xii) Mahua, illupai. Ippe (Madhuca indica M. Latifolia, Bassia, Latifolia and Madhuca
longifolia syn. M. Longifolia);
(xiii) Karanja, Pongam, Honga (Ponganmia pinnata
syn. P. Glabra);
(xii,) Kusum (Schleichera oleosa, syn. S. Trijuga);
(xv) Punna, Undi (Calophyllum inophyllum);
(xvi) Kokum (Carcinia indica);
(xvii) Sal (Shorea rebusta);
(xviii) Tung (Aleurites fordii and A. montana);
(xix) Red palm (Elaeis guinensis);
(xx) Safflower
(Carthanus tinctorius);]
12[(vii) Man-made
fabrics covered under heading Nos. 54.08, 54.09, 54.10, 54.11, 54.12, 55.07,
55.08, 55.09, 55.10, 55.11, 55.12, 58.01, 58.02, 58.03, 58.04, 58.05, 13[58.06,]
59.01, 59.02, 59.03, 59.05, 59.06, and 60.01 of the Schedule to the Central
Excise Tariff Act, 1985 (5 of 1986);
(viii) Sugar covered under sub-heading Nos.
1701.20, 1701.31, 1701.39, and 1702.11 of the Schedule to the Central Excise
Tariff Act, 1985 (5 of 1986),
(ix) Unmanufactured tobacco and tobacco refuse
covered under sub-heading No. 2401.00, cigars and cheroots of tobacco covered
under heading No. 24.02, cigarettes and cigarillos of tobacco covered under
sub-heading Nos. 2403.11, and 2403.21, and other manufactured tobacco covered
under subheading Nos. 2404.11, 2404.12, 2404.13, 2404.19, 2404.21, 2404.29,
2404.31, 2404.39, 2404.41, 14[2404.50 and 2404.60] of the Schedule to the
Central Excise Tariff Act, 1985 (5 of 1986);
(x) Woven fabrics of wool covered under
heading Nos. 51.06, 51.07, 58.01. 58.02, 58.03 and 58.05 of the Schedule to the
Central Excise Tariff Act, 1985 (5 of 1985),]
15* * * * *
1. Ins. by Act 103 of 1976, s. 7.
2. Subs.
by Act 61 of 1972, s. II, or cl. (i) (retrospectively).
3. Cl. (i) renumbered as cl. (ia) by Act
103 of 1976, s. 7.
4. Subs. by Act 31 of 1958, s. 10,, for
item (ii), (w.e.f. 1-10-1958), item (iia) was ins. by Act 16 of 1957, s. 3, and
again subs. by Act 26 of 1988, s. 95 (w.e.f. 13-5-1988).
5. Ins. by Act 13 of 1989, s. 50 (a).
6. Ins. by Act 103 of 1976, s. 7.
7. Subs. by Act 61 of 1972, s. 11, for cl.
(ii,) (w.e.f. 1-4-1973).
8. Subs. by Act 39 of 1978, s. 3 and Sch.
11, for “ingot moulds bottom plates”.
9. Ins. by Act 103 of 1976, s. 7.
10. Subs. by Act 61 of 1972, s. II, for cl.
(i,) (w.e.f 1-4-1973).
11. Subs. by s. II, ibid., for cl. (vi)
(w.e.f. 1-4-1973).
12. Ins. by Act 31 of 1958, s. 10 (w.e.f.
1-10-1958) and subs. by Act 26 of 1988, S. 85 (w.e.f. 13-5-1988).
13. Ins. by Act 13 of 1989, s. 50 (a).
14. Subs. by Act 13 of 1989, s. 50 (b).
15. Item (xi) omitted by Act 19 of 1968, s.
43.
1[15. Restrictions and conditions in
regard to tax on sale or purchase of declared goods within a State-Every sales tax law of a
State shall, in so far as it imposes or authorises the imposition of a tax on
the sale or purchase of declared goods, be subject to the following
restrictions and conditions, namely:-
(a) The tax payable under that law in
respect of any sale or purchase of such goods inside the State shall not exceed
2[four
percent.] of the sale or purchase price thereof, and such tax shall not be
levied at more than one stage;
(b) Where a tax has been levied under that
law in respect of the sale or purchase inside the State of any declared goods
and such goods are sold in the course of inter-State trade or commerce, 3[and
tax has been paid under this Act in respect of the sale of such goods in the
course of inter-State trade or commerce, the tax levied under such law] 4[shall
be reimbursed 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 provided
in any law in force in that State;]
5[(C) Where a tax has been levied under that law in respect of the
sale or purchase inside the State of any paddy referred to in sub-clause (i) of
clause (i) of section 14, the tax leviable on rice procured out of such paddy
shall be reduced by the amount of tax levied on such paddy;
6(ca) Where a tax on sale or
purchase of paddy referred to in
sub-clause (i) of clause (i) of section 14 is leviable under the law and the
rice procured out of such paddy is
exported out of India, than , for the purposes of sub-section (3) of section 5,
the paddy and rice shall be treated as a single commodity;]
(d) Each of the pulses
referred lo in clause of section 14. whether whole or separated, and whether
with or without husk shall be treated as a single commodity for the purposes of
levy of tax under that law.]
1. Subs. by Act 31 of 1958, s. 11. for the
former s. 5 (w.e.f. 1-10-1958).
2 . Subs.
by Act 25 or 1975, s. 38. for
“three Percents” (w.e.f 1-7-1975).
3. Subs. by Act
61 of 1972, s. 12, for “the tax so levied” (w.e.f. 1-10-1958).
4. Subs by s. 12. ibid. for “shall be refunded to such
Persons (w.e.f 1-4-1973).
5. Ins.
by Act 103 of' 1976, s. 8.
6. lns. by Act 33 of 1996. sec. 97 29-9-1996).
1[CHAPTER V
LIABILITY IN
SPECIAL CASES
1. Ins. by Act of 1972, s, 13 1-4-1973).
16. Definitions-In this Chapter,-
(a) “Appropriate
authority”, in relation to a company, means the authority competent to assess
tax on the company;
(b) “Company” and “private
company” have the meanings respectively assigned to them by clauses (i) and (iii)
of sub- section (1) of section 3 of the Companies Act, 1956 (I of 1956).
(1) Every person-
(a) Who is the liquidator
of any company which is being wound up, whether under the orders of a court or
otherwise; or
(b) Who has been appointed
the receiver of any assets of a company, (hereinafter referred to as the
liquidator) shall, within thirty days after he has become such liquidator, give
notice of his appointment as such to the appropriate authority.
(2) The appropriate authority shall, after making such inquiry or calling for such information as it may deem fit, notify to the liquidator within three months from the date on which he receives notice of the appointment of the liquidator the amount which, in the opinion of the appropriate authority would be sufficient to provide for any tax which is then, or is likely thereafter to become, payable by the company.
(3) The liquidator shall not part with any of the assets of the company or the properties in his hands until he has been notified by the appropriate authority under subsection (2) and on being so notified, shall set aside an amount equal to the amount notified and, until he so sets aside such amount, shall not pail with any of the assets of the company or the properties in his hands:
Provided that nothing
contained in this sub-section shall debar the liquidator from parting with such
assets or properties in compliance with any order of a court or for the purpose
of the payment of the tax payable by the company under this Act or for making
any payment to secured creditors whose debts are entitled under law to priority
of payment over debts due to Government on the date of liquidation or for
meeting such costs and expenses of the winding up of the company as are in the
opinion of the appropriate authority reasonable.
(4) If the liquidator fails to give the notice in accordance with sub-section (1) or fails to set aside the amount as required by, or parts with any of the assets of the company or the properties in his hands in contravention of the provisions of sub-section (3), he shall be personally liable for the payment of the tax which the company would be liable to pay:
Provided that if the amount
of any tax payable by the company is notified under sub-section (2), the
personal liability of the liquidator under this sub-section shall be to the
extent of such amount.
(5) Where there are more liquidators than one, the obligations and liabilities attached to the liquidator under this section shall attach to all the liquidators jointly and severally.
(6) The provisions of this section shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force.
18. Liability
of directors of private company in liquidation-Notwithstanding
anything contained in the Companies Act, 1956 (I of 1956), when any private
company is would up after the commencement the course of or after its
liquidation, cannot be recovered. then, every person who was a director of the
private company at any time during the period for which the tax is due shall be
jointly and severally liable for the payment of such tax unless he proves that
the non-recovery cannot be attributed to any gross neglect, misfeasance or breach
of duty on his part in relation to the affairs of the company.]
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