The Delhi Sales Tax on Right to Use Goods Act, 2002

  
A No. E, 14(15)/LA-2001-02/1327.— The following 
Act of Legislative Assembly of the National Capital 
‘Territory of Delhi received the assent of uke Lieutenant 
‘Governor, Dethi on 23-7-2002 and is hereby published for 
generat infacmation :— 
‘The Delhi Sales Tax ot Right to Use Goods Aci, 2002 
(Dellti Act No, 13 oF 2902). 
(As passed by the. Legistative-Assembly of the, 
National Capital Territory of Delhi on the 15th April, 2002). 
an: 
Act Fc 
TOLEVY AND COLLECT TAX ON THE TRANSFER, 
OF THE RIGHT TO USE ANY. GOODS FOR ANY 
PURPOSE (WHETHER OR NOT FOR A SPECIFIED 
PERIOD) FOR CASH, DEFERRED: PAYMENT OF 
OTHER VALUABLE CONSIDERATION IN THE 
NATIONAL CAPITAL TERRITORY OF DELHI 
BEITENACTED BY THE LEGISLATIVE ASSEMBLY 
OF THE NATIONAL CAPITAL TERIUTORY OF DELHI 
IN THE FIFTY-THIRD YEAR OF THE REPUBLIC OF 
INDIA AS FOLLOW! 
    
   
CHAPTER L 
PRELIMINARY 
@)1t extends to the whole of the National Capital 
Territory of Delhi. 
G)lt shall come into force on such date as the 
Government may, by notiieation in the Official Gazette, 
appoint, : 
2 Dofinitions.—<J) In this Act, unless the context 
gtherwise requires ;— i 
G) “appointed day" mncais the date on which this 
Act comes into forée; 
{>) “Commissioner” means the Coninussioncr of 
Sales Tax appointed under sub-section (1) of 
seclion 9 of the Dellii Safes Tax Act, 1975 (43 of, 
1975), a 
(©) “denler” means any person who whether for 
commission, emuneratin of otherwise transfers 
the right to tse any goods for any- purpose 
(whether or not for a specified period) for cash, 
deferred paymentor other valuable consideration, 
and includes the Government or the Central- 
Government which so transfers the right 1o use 
such goods, any sociéty, club or association ‘of 
‘persons which so transfers the right to vse: such 
goods to its members, a manager, factor, broker, 
corumission agent, deleredece agent orany other 
      
   
  
whether of the same description as hereinbefore 
mentioned or not, who so transfers the righl te 
  
2 DELHI GAZETTE : EXTRAORDINARY 
1, Short title, extent and commencemies 5 
Act may be calted te 
mercantile agent, by whatever name called, and, 
      tase any goods belonging toany principatw 
ot or not 
  
     @ 
    
   ‘peti Sales Tax Act” means the Delhi Sale 
Act, 197543 of 1975); 
“goods" includes alt materials, artic 
commodities and aff other kinds of m 
property, but’ does not include newspap 
Detionable claims, stocks, shares, securities 
money; i 
    
   
    
    
o 
  
   
    
   
   
           () “Government” means the Lieutenant Gover 
of the Natiorial Capital Territory of Delhi cafe 
tain Article 239AA of the Constitution: 
(©) “Lieutenant Governor” means the Lieutes 
Governor of the National Cagital Territory off 
‘appointed by the President under Article 2394 
of the Constitution; F 
() “person” includes any company or an associa 
of persons or body of jduats, whe! 
incorporated or not, and also a Hinds undiv 
family, 2 firm, a local authority, 2 corporale 
‘oc an authority owned orset up by, of sul 
administrative control of, the Government of) 
or the Government ofany Stat or Union Tei 
and a cooperative society; whether register 
nol; 
@ “prescribed means prescribed by thie mules oa 
under this Act, q 
@) “possession”. includes legal or phy: 
possession, whether as owner or transfer 
sigenton bolialf ofa transferar or principal, a5 
case may be. whether disclosed or nat, 
“rogistered dealer” means a dealer regis: 
under section 7 of this Act; 
“pute means a mule made under this Act; 
  
       
     
                    
         
  
    
    
      
  
    
  
   
  
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(n) “sale? with jus grammatical variation and opm 
espressions means any’ (ransfer of the rigic§ 
use any goods for any prupose (whether oF 
fora specified period) for cash, deferred pay ” orany other valuable consideration, and thew “sell” shall be construed accordingly, 
   
    
    
          
   
   (0) “sate price” means.the amount of valust 
consideration received or receivable for 
transfer of the right to use any pods fe 
purpase (whether or not for a specified peris 
{p) “tax”? means the (ax payable under this Act, 
@ “transferee™ means the person (o whom 
tight to use goods is (ransferred; 4 
(@) “transferor tneans the pérson who’ trans 
* right 10 use goods; 
{s) “turnover of safes” means the aggregate of $ 
amounts of fale price received or recxivable dt 
   
    
      
      
    
         
       
     
   

  
    
year aya dealer.in respect of the transfer of the Ee, tight to use ang goods: 
cy oy ‘car means the financial year. 
(2) Alb words and expressions used, bul not defined 
4 ris ‘Act bul defined: an the Delhi Sales Tax Act shall liave 
same meanings as assigned to them in that Act. 
_ CHAPTER TT 
INCIDENCE AND LEVY-OF TAX 
lence of tax.— Subject to the provisions 
ined in this Act nnd the'rutes made thereunder, 2 tax be loviableon the wmover of sales in respect of: 
   
    
     
      
   
  
(@) the transfer of the right to use any goods agrecd 
to before the appointed day but the right to-use 
the goods is exercised on or after the appointed 
day? ee 
(@) the transfor of the right to use any goods agreed, 
{0 prior 10 the appointed day;'and wherein the 
tight to use has been continued after the 
+ appointed day. to the exieni of the safe price 
received or receivable in respect of such use on 
or aler the appointed day;.and 
  
(6) thetranser of te righ 1 vse Any goods agreed toon or after the appointed day. : 
  
4. Levy of tax. — There shall be levied a taxon ihe over of sales under this Act at the rate of four paise in ae : = 
Provided that np such (ax shall be'levied if 
the uraover of salesiof d dealer is Tess than four lakh rupees during Ute year * 
Provitted furtlicr that no taxshall be levied 
under this Act on.tlic turnover of sales made in 
the course of export of the goods out of the 
tefritory of Indin or in the cdurse of import of he 
goods into the territory of India or in the course 
of interstai¢ trade or Commerce or outside the 
State/Unian territory : 
  
   Pravidied also that : where in respect ofany, 
goods or class of goods the Covernmiem is of the ‘opinon that it is expedient in the public interest 50 10 do, it may. by notification in the official gizolte. direct thal the tnx in respect oF such goods or class of goods shall. subject to such conditions as nay be specificd;.be.lovied it such modified rato not exccedinig the rate applicable under this 
section, as maybe specified in the notification = 
Provided also Ghat where fn respect of any’ 
yoods'or class of goods the Government ieof the 
‘opinon thal it is expedient in tlic publi¢ Interest 
so to do. it nay, by- notification. in the official 
gavotte, direct that nb tax shill be payable undor 
this Act in respect-of ‘such goods or class ‘of 
* yoods, subject'to such restrictions and conditions 
      
CP Dilee-3 
13 
4s may be specified in the notifiction. 
5. Liability of dealer—-(1) Every dealer whose 
tumover of sales made durin, 
(a) the year ending on the 31st day of March, 2002 
©) the yearcomencing on the Ist day of April, 2002 
shas exceeded or exceeds the limit of four lakh 
upecs shall, until such liability ceases under sub~ 
section (3), be liable to pay tax under this Aci on 
the turnover of sales ntade by him on or afer the 
appointed day: 
Provided that a dealer tc ‘hom clause (0) 
above, applies and whose tumiaver of sales, vexceeds the limit of four Jakh rupees after the 
appainted day shall riot be liable to pay tax in 
stespect of sales which take place upto the time 
when histumover of sales as computed from the 
1s\day of April, 2004 first exceeds such mit. 
  
Q)Every dealer whose tumover of sales during any 
year commencing on che 1st day of April, being a year 
subsequent 16 the years mentioned in sub-section (1) first 
excetds the fimiLoffour lakh rupees shall, und such liability 
tases under sub-section (3}, be liable to pay (ax under 
this Act with effect fram the said dat : 
Provided that adediler shall nacbe linble to pay any’ tax in respect of such of te turnover of salesas takes place during te period commencing, ‘on the Ist day of April of the said year upto the time when lis tu mover of sales as computed from the Ist day of Apri of the said year first exceeds > thofimicot four lakh rapecs. 
    
G) Every dealer who becomes liable to pay tax under 
this Act and every dealer wlio has been registered under 
section 7 shall continue to be so linble ungil the expiry of 
three consecutive years during cach of which his lurnover 
has failed (9 excecd the limit of four lakh rupees and such 
further periad as may be prescribed os tntil lis registration 
ccriificate is duly caricelled, as the case may be, and upon 
ry of such period or upon such cancellation of his 
certificatcof registration, as the casc may be his liability 10 
pay las om other than the lax already levied or leviable shall 
cease until his turnover of sates again exceeds the limit of 
fourlakh mpees: _ i 
Provided that wherethe dealer bocomes linble 
(o pay tox again in the same year in which he 
“cased to be Jinbleas aforesaid, then in respect of 
los which lake place during the peried 
commencing on the date of cessation of Hiability 
(otaxand ending on the day on which histumover 
of sales first exceeds such limit, no tax shall be 
payable, 
6 Tacpayable by dealer —Subject to the provisions 
of this Act and the rules made thereunder, these shalt be 
paid by every dealer wito is liable to pay lax under this Act, 
the tax Ieviable in accordance with section 4 on the tmmover 
    
      
      
 

      
va in respect of the uansfer of the right lo-use any effected by him ™ 
: CHAPTER IL 
“REGISTRATION, RETURNS, PAYMENT OF TAX 
AND ACCOUNTS 
  
7. Ceatificate of registration —No dealee who has bacome tiable to pay tas under this Actshall sell any goods unless, he possesses a valid cenlificate of registtation as 
provided under this Act. 
Q) Every dealer required to be registered under sub- section (1) shall apply to the Commissioner forthe grant of registration within such time, in such manner and in such 
form, as ay be prescribed, 
    
G)IE the Commissioner, after such inquiry as he 
accans fit, is satisfied that dhe application forregistration is 
in order, he sliall register the appleiant and grant him a 
cenificate of registration within such time, in such manner 
and form. as nay‘ be prescribed : 
Provided! that ifthe Commissioner is of the opinion that the application is not in orderor the particulars furaished theréin have not been giver, correctly. he may, for reasons to be recorded. in 
writing, by.an order passed within the prescribed period, reject tie application, 
    
@)The Conunissioner may, afer considering the 
information furnished or otherwise called for or received 
ander any of the provisions of this Act, amend from time to 
(ime the certificate of registration in the manner and within 
such time as niay be prescribed. 
  
(5) [any person upon an application made by himin 
this behalf has been registered as a dealec under this 
section, and theraker iL is found that he ought not te have 
been so registered under the provisions of this section, he 
shall be liable to pay taxon his tumover of siles made from 
the date on which his registcation certificate took'effcet 
until itis cancelled notwithstanding that he may not be 
liable to puy tis uneerscetion 5, 
(6) Where a registered dealer discontinués sales, or. 
Ihe turnover ofsales ofa registered dealer during any year 
does noi exceed the limit of four lakh mpecs and the dealer 
    
  
  
applies for cancellation of his registration certificate inthe ~ 
prescribed miner, the Commissioner shall cancel (he 
registration cestificate witlte(leci froin stich date2s he may 
Fixin accordance with the niles 
(DP Where the Commissioner is satisfied that any. 
segistcred dealer has discontinued sale and has failed 10 
apply undes sub-section (6) for.the-eancellation of his 
regisirnuon cestihieae, the Commissioner may, after giving 
Ue desler a reasonable opportunity of being heard, cancel 
the registration with effect from Such date as he may fixt0 
ve wie dale from which the registered ‘dealer has 
discontinued sale : 
Provided that the cancellation of certificate of 
registration ont an application of the dealer or otlierwise 
DELHI GAZETTE “EXTRAORDINARY, : 
  
    
      
   
   
    
      
                          
     
    
   
                
   
    
   
   
         
                  
     
shall not affectthe liability pfhideatecto py tact 
any interest OF penalty) duc from him for any pet 
the cancellation. 
(8) The provisions of scctian 18 of the Delhe: 
‘Tax Act and the rules framed thereunder shall 2 
muulatis mitandis for prescribing of sccurity 0: 
be. the additional secueity for regi 
denler who may be required so lo do by the Comm 
by notice served in the prescribed manner, shall 
such returns of his nymnoves of Sales by such dates 2 
accrued on delayed pa formas may be prescribed. 
(2) Every repistere calor and every deal fe 
Government Treasury or ii Relate Sank ot Toes such other manneras may be prescribed, the fll amo 
(ax dué from him under this Act according to such ré 
and shall where such payment is made ino a Govers 
the returns a receipt from such Treasury or bank show 
the payment of such amouzt, ; 
(Q) The imerest, in addition to the 1ax due, st 
deemed to be in default in making Ue payment ot assessed or re-dssessed under this Act from tho-d siich default. Interest ai the sane rate shall alsa be p forthe period during'which the realisation of any 4 of tax remains stayed by the order ofany court ar at and such order is subsequently vacated : 
deemed to be tax due under this Act. 
9. Assessment—{l) Where al! the returns doe 
the year have. been furnished and tax due accordin; 
such returns paid within ihe prescribed period. 
Commissioner shail make 2 summary assessinent with 
year {cont theend of the finantial yesr 10 whiclr the rete 
pertain and in making such a summary assessment % 
Comntissioner shall have the authority to mai avithmetical adjustments ag well ns interest that might 
duc for belated payment of the tax. 
(2) Notwithstanding anything contained in & 
section (1), whiéther or-nat.a reium bas been furnished 
the tax due. according to such return paid within the pet 
prescrived, the Commissioner, ifhe isnot satisfied with:

BBS: (4) Ifa dealer fails to comply with the ténns of any 
Bi" (5) {C upon information which has come imo tis 
  
JUGAWET          
filed or eonsidersil necessary or expedient to ensure ‘he dealer has not understated his turnover of sees, serve the detlera novice requiring him, ona date lose 
aied therein 1¢ aticnd his.office and ta produc: or 
Baise {0 bc produced there auy evidence on which she ger may rely in sppport of the returs.and to salisty the 
lissioner in segare thereto: 
& Provided ¢hat nonolige underthis sub-section shall 
E served on the dealer after the expity of two years from 
nd of the financial year ta which the cetums pertain, 
(3) On the date specified in che notice, ov a5 soon as 
‘be thereafer, ce Commissioner shall, afler considering 
wohe evidence which nay be produced, assess the amount 
‘due from the dealer. 
Bice issued under sub-section (2), thc Commissioncr 
Bill assess {othe best of his judgment she amount of 
@uc fronp hin. 
Session, the Commissioner is satisfied thal any eater 
hasbeen liable to pay tas wilder this Act in respect of 
Fperiod, has failad to get himself registered under section -Commaissionce shaS proceed in suck manner ns may’ 
scribed to mssess (0 the best of his judement thie 
of tase due from the dealcr in Sespect af such: period ali subsequent periods and inmaking such assessment 
‘give the dealer a reasonable opportunity of being _ 
‘and the Comniissioner may, if he issatisfied thatthe 
ft wwas made without reasonable cause, direct thatthe 
shall pay by way of penalty. inaddition to the amount fide tas so assessed, u stam not evceeding twice that 
por, 
E (6) Noaséessment und21 thc provision of sub-section 
all be made after the expity of six: years from theend 
ie vear in respect of which or part of which ths tax is 
ssed. 7 
. 10, Reassessment —(1) where aferadcaler lasbecn essed under section (9) fer any year or part thereof, the 
gnmissionct has reason to believe thar the whole or any 
bi of turnover of a deater in respcat of any period ‘has 
Lerped assessment to tax or has been under nstessed or 
been assessed at a loner rate than therate at which it 
iscessable, the Commissioner may— 
fg. (a) within sis years Seon thie date of final order of 
assessment, in a case whese,the dealer has 
concealed, omitted or failed to disclose fully tlic 
portigutars of suck tarnpyer; and 
within foer yoars from. the date of finn order of 
aascSsment, in any o1hiercilse; 
Servea notice on thedeaterand afer giving 
(te dealer an opportunity of being-heard and 
making such inquiry 4s he.considers necessary, 
     
  
peticeed to determine tothe bestof his judgment, 
tho amount oftaxduc froin the ester in respect of 
such turnover, ard thépravision of this Act shall, 
s0 fae ns may be. apply accordingly: 
LE: EXTRAORDINARY 
   
    
       
  
     
   
(2) No order of assessment, reassessment or Tecdimputation shal be madeunder subsection (1Ylter— 
(a) theexpiry oF six years of, asthe case maybe, four years from the dalé of final-order of astessncot a5 specified in sub-section (4); oF 
@) theexpity of one year from the da 
notice under sub-sectic O), whi 
of service of 
heveris later, 
  
          
11. Accounts—Every desler liable ta pay asunder this Actsliat keep at his place ofbusiness, 2 rue account ‘af parchsisc aud sales in the manner and foun #8 anny be prescribed. . 
+ CyAPTERIV 
‘TAX DUDUCTION AT SOURCE, TAX CLEARANCE, CERTIFICATE AND INFORMATION TO BE < FURNISHED : 
12, Deduction of fax at source, —(H)Nonwidismeding 
onything contained ih any aller provisions of this Act, 
every person, other (lian an individual and Binduundivided Jaunily, responsible fot making any paychert for dischaiwe of any’ liability forthe fransterot the right (ose ay goods shell, at the Gin of credit to he account or at (he dime of 
rmtent of sich amotint in cast,” oF by cheque, oF by 
daisimcnt or in any oflter manner whatsoever, whichevey 
is canticr, deduey an rewount equal to two per cent from 
such suens, 
Provided dat na deduction shall be ade whetetie 
consideration {97 rigli lo use goods does not exceed four Takh rupees ina year. 
(2) Any tax deducted under sub-section (1) shall 
‘prid to the account of the Gaverumentin sack mannerand 
‘within such Lime as way be prescribed. z 
(8) The person making the deduction of tax wader sub-section (1} and paying il ta the account of 1he 
Government shall issue a certifccate of tax deduction tose 
donler within a poriod of fificen days of such deduction in 
sach manner aed in such form as may be prescribed. 
(4) Ady (ax deducted under sub-section (1) andpaid 
to the account of the Government stall, on production of the cectificate of deduction under sub-section (3) by the 
ransfcree be deemed to be the ta paid by The dealer for 
the relevant period and shall be given credit in his 
assessinest agcordingiy. 
5) any person fails 10 make deduction ar after 
making’a deduction fails to depasit fo the account of the 
Government the atuqunl so deducted. the Commistioner 
may. aller giving to Sock pessan an opportanily of being 
beard. by order int writing. direct that such person shal) 
pay; by way of penaky. a sum not exceeding twice che 
‘amount deductible or deducted under this section besides the tax deriuciibte bin nd so deduced and, if deducted, 
not so deposited into.the Government Treasury, 
{6) Without grejudice tore provisions of sub-section 
(5), iEany. person fails to ntake deduction or after making 
   
  
    
 

  
   
      
    
    
    
sion. fails to deposit the amount So deducted, 
Jiable {0 pay Simple interest at the rate of two 
7 per month on thc amount deductible under this 
‘on bul not so deducted and, if deducted, not so 
Fesited fiom the dale on which such amount was 
Faeductible 19 che date on which such amount is actually 
deposited i 
(7) Where an amount has nol been deposited after 
deduction, such amount togedher with intefest and penalty 
shal] bencharge upon all the asscis of the person conse med 
and recoverable ag arrears of land revenue, * 
13. Tax clearance certificate — (1) Notwithstanding 
paything contained in any other law for the ime being in 
force, no person where the consideration for right to use 
oodsesceeds our lakh rupees ina year, shall enterintoa 
(eanzaction with any other person for transfer of right 10 
use goods afer the appointed day and if.entered cartier. 
shall not contimic sich transaction and shall not make 
parmicni to the dealer in sespect of transfer of right to use 
goods. nviess the Commissioner certifies in Lhe prescribed 
manner thal such dealer— : 2 
(a) lhns no liability to pay’ tas, interest, penaly or any 
Amount due or has not defaulted in furnishing. 
‘any rolurit or returns together with the receipied 
chatlan or chailans shawing payment of afl tax. 
pavable under this Act: - 
  
  
(b) tas vot defyntied in making payment of tax 
otherwise payzible by or due from hin. under this 
Acts 
(@) lias made satistaclory provision of securing tie 
paynient of tnx by {teaishing bank guarantee in 
favour of the Commissioner or othensvise. as the 
case may be: : 
{@) has made no undertaking for getting himsel€ 
registered as dealer observing end complying with 
the provisions ofthis Act. ifthe dealer has started 
the business of transfer of right.to.us¢ goods for 
the first Gime in Dells, . ee 
(2) Shere on application made by a dealer in Ute 
prescribed form. ifthe Commissioner. aller making such 
inquiry as he deems fitand proper. is satisfied nnd issues a 
centifiente in the greseribed form to she effect (hal sitch 
dealer is nol liable to pay tax under section} or Hathehas, 
pid tnx payable by. or duc from binw uiadec that scetion. oF 
bas undertaken to register himself and to comply with the 
provisions of this Act and the rule framed thereunder. a 
sale agreentent may be-entered and payment ma; 
nolwitlistanding anything contained in such-scetion (1), 
be matic to such dealer for transfer of right to use goods ” 
referred to in section 1 on production by him of such’ 
certificate of the Commissioner. 
14. Information to he furnished for transfer of eight 
touse pnody by the teansferee—Any persanentering into, 
contract Tor transfer of right to use goods shall furnish, 
ithin fiftcen days from tke signing of the contrast. such 7 
  
    
and fallureto do so shall catail a penalty not exceed 
Thundcod rupees per day af default after affording 
person 2 reasonable opportunity of being heard. 
CHAPTERV 
POWER OF ENTRY, INSPECTION, S) 
SEIZURE, SEALING AND.ANTL-EVASION : 
PROVISIONS 
15, Power of entry, Inspectici, search and 
accounts and goods. (1) The Commissioner may, 
tosuch conditions 2s may be prescribed, require amy & 
os.any other person -— * 
(a) to produce before him such books af: 
Registers or documents, 
  
   
  
    
  
   
    
       
    
             
       
             
      
   
    
       
    
  
    
     
    
                                
   
©) 
stock of goods, or puschases, sales or det 
ics of goods by the dealer, or any ather 
mation relating to his business, as mzel 
deemed necessary, for the purposes of: 
Aci. # 
(2) Where the Commissioner, upon informat 
his possession or athenvise, has reasonable groun 
believethal:— . 
@) 3 
    
was issucd to produce or caust to be pr 
any books of accounts or other di 
be produced such books of accounts, or: 
documents, as'required by such notice, 
(©) any person to whom a Aotice a5 aforesaid becnoc might be issued, will not, or would 
+ ‘produce Gr cause to be. produced any Daa 
‘oaccounts or other documents whick Wil 
der this Act, o¥ 
books of agcounts.-regisiers or dacume: 
any dealer may be destrayed, dr mutilac 
tered, falsified or secreted or any purct 
sales by thint dealer have been oF may be: 
pressed oF any goods have not been oF 
AoLbe accounted for in the books af accouy 
rogisters or other documents maintained 
the dealer, with a view to eyade or atte 
evade payment of tay duc under this Act, 
‘Commissioner shall have power— 
© 
@ — ( inspoet or survey the place business i denle¢ or any other person or any olherp whore: it is believed by hint that busines 
being donc or accounts are being kept by 3 
dealer or person: j 
Gi) Loinspect the goods in the possession of 
. dealer or in the'passession of any other 
~  somon behalf of such dealer, wherever 3 
oods ‘are kp! 
y

DELERGAZETTE : EXTRAORDINARY 
              
toenterand searchany building or place where 
he has reason (0 suspect that such books of 
accounls or other documents or ‘goods are 
kept by a sealer ox by ony piber perzon on 
behalf of such dealer, _ 
to break open the focks of-aay door of any 
premises oF 10 break open any almirah, safe, 
box, receptacle in which any.godds, accounts, 
registers or docunicats of the dealer are sus- 
pected to be kept, iF access 19 such premises, 
alimirah, safe, box orreceptacie is deni 
(¥) seal the premises inctuding the office, shop, 
godown, bos, locker, safe, almirah or other. re- 
ceplacie if the awner orthe person in occupa- 
tion orin charge of such office, shop, godown, 
box. focker. sale, almirah, or other receptacle 
leaves the’ place or is not avaitable or fails or 
refuses (0 open it when called upon, t0.d0 so, 
or eanse or aitempis 10 cause obstruction to. - 
Ihe Commissioner in the discharge of his 
duties under this section; 
      
(64) to record the stntemertt of the dealer‘or his 
Manager. agent or servant of to take extfact 
Srom my record and to put identification marks 
on accouats, registers or documents and on 
any door, almirah, safe, box or recepiaclé, 
Explanation —Therg shallbe a presumption 
respect of goods, accounts, fegisters ordoc 
menis, which are found at any,place of bu 
ness of a dealer during any: inspection or 
search that they selate Lo his business unless 
Ikecontrary is proved by him, 
    
   
  
(3) The power under clauses (iii) and (iv) of sub- 
fection (2) shall be exercised by an officer Not below the 
Easkcof an Assistant Sales Tax Officer,’ 
(4) Where any a coouints. cegislers, or documents are 
Fproduced before the ‘Commissioner-in any proceedings 
frendlor this Aét, the Commissioner may, for seasons to be 
Seecorded in writing. Impound and retain thein in his cus- 
Stady fora period not cxceeding sis months, andsball give 
R ihe, dealer of any other. person who has produced such 
Ebecounts, registers or docunieuts a'receip! of the same, 
(5) Where at the time of inspection, the Commis- 
euch accounts. | registers or documents of the deater, as 
3s may be considered necessa ‘anid shall give the dealer, or 
ant other perso from whose ‘custody such accounts. 
F) repisiers or doctiments are seized, a reccipt for the same, 
and may rorain the same in custody for exarnination, en- 
BF quity. prosecution or other legal action for a period net 
ing six months. 
{6) Theaccounts. registers erdocuménts impounded 
under sub-section (4) or stized unter sub-section (5} nay 
  
   
    
  
   
  
   
be retined even beyond a pesiod of six manuhs from the 
date of impounding or seizure, as the case may be, by the 
commissioner for such further period as may be specifica 
from timetotime 
{7} The Commissioner may seize any goods liable to 
tax, whichare found in the possession of a dealeror inthe 
possession of any other person on behalf of such dealer ot 
with any transferce and which are not accounted forin his 
accounts, repisters ordocumnents maintained in the course 
‘of his Business,-and a list of goods so seized shall be 
prepared by the Commissioner and a copy thereof shall be 
given to the dealer or any other person from whose cus- 
tody such goods are seized, 
@) Where it is not feasible to seize the accounts, 
regislers or documents undler sub-section (5) or the goods 
under sub-section (7), the Commissioner may serve on the owner or the person who is in immediate possession or 
contro! thereof, arvarder that he shall not remove, part with 
or otherwise eal with them except with the previous per- 
mission of the Commissioner: 
(9) The Commissioner may, after having held such 
further cnquiry 2s he may consider fit, and after having 
given the dealer an opportnnity of being heard, impose on ‘yint, for the possession of gaods not accounted for, whether 
seized or not under’ sub-section (7), by way of penalty a 
sumnot exceedlitig thaes and a half times of the tax leviable 
‘on such goodsand the conunissioner may' release the goods, 
if seized, on payment of the penalty imposed or ost fier 
nishing such security for the payment thereof as he may 
consider necessary. 
(10) The Contevissioner may eequire any person :— 
(2) whotransports or holds in custody any goods 
ofa dealer, to give any information in his pos- 
uae session in respect of such goods or to allow 
inspection dlicreof, as the case may be; and 
(&) who maintains or has his possession any ac- 
counts, registers or documents relating to Me 
business of a dealer, 10 produce such accounts, 
registers or documents for inspection. 
(1D Jrany person commits default under ciause (b) 
of sub-section (10), the commissioner may, without proju- 
dice to any otheraction which may be taken agaiast such 
personsunderany othr provision ofthis Act, dice after 
giving an opportunity of being hieard fo such person thot 
such persor shall pay by way of penalty a sum novescecd 
ing filty thousand rupees. 
= (12) Ifthecommissioner is satisfied that any person 
on being required by-him so 10 do, has failed to furnish the 
Jnfarmation in respect of the goods in his custody for de~ 
Livery (o or on behalCofany dealerar to permit inspection 
thereof ander clause (a) of sub section (10), he Commis- 
sioner may. by order in writing and after giving opportu- 
nity of being lard to such persons, impose by way of 
pewalty, i suey’ not exceeding three and a half times the 
amount of ins faviable under this Act on goods in respect 
of which the defonlt was committed. 
    
  
   
  
     
                           
       
       
          
              
            
          
      
    
      
    
            
      
     
      
    
     
          
    
  
     
            
  
     
  
    
   
     
     

  
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(12) If any person. who transports or holds in cus- 
fody for delivery to, oron bebalfof, any dealer any goods, on being required by the commissioner of under clause (a) of sub-section (10) so to do, fails to give the information 
likely to be in his possession in respect of such goods or Tails 19 permit inspection Wiereof, as the case niay' be, the 
Commissioner may pass an orderafdciention or seizureof goods in his cusiody or possession in respec! of which 
the default iscommilted. ‘i : 
(14) The order of detention or seizure passed under sub-section (13) shall remain in force’so longas the person concemed docs not furnish information required under 
clause (a) of sub-section (10) or make properarrangement for inspection of the goods under the said sub-seélion, 
(15) [any person, who transports or holds in cus- lody fordelivery to, or an behalfof. any dealer any goods, 
on baing required by tlie Commissioner, under clause (a) oF 
sub-scction (10) so to do, fails to give any information 
ccly Lo be in his possession in respect of such goods or failsto permit inspection thercof-as the case may'be, with- 
oul prejudice to any other action which may be tnken 
against such person, «presumption may be raised (hal tie 
goods in respect of which he hus failed to furnish informa: 
1 OF permil Inspection, were meant for sale by hin and 
heis a dealer liate to pay tax under this Act and the provi- sions of this Act still apply accordingly. 
(16) Where any preises including the office, shop. 
goxlown, box, locker, sife, almirah or other receptacte have 
heen scaled ander Sub-scction (2). the Commissioner, on 
an application made by the owner or te person in occupa 
iF it charge of such shop, godown. box, locker. safe, 
  
   
    
   
    
tow 
almigih or other receptacle, may order descaling thercof on 
    
such terms and conditions including furnishing of secu- 
rity for such suin in such form and miannors ns thay be 
prescribed, 
a7) Winco tes of detention of scizurcof goods 
is made under this section and no claim és lodged by any 
person witl respect to such goods within period of Ihroe 
months fram the datc of such order. the Cominiissioner may, 
by order in swriting. dircet the auction 6f'such goods ; 
»Provided that if the goods, in respiect’of which an 
order of detention or scizure is made, arc of'a perishable 
nature or subject to speedy and natural decay of when the 
expenses of keeping them in custody are likely to exceed 
Their value, the same may be ordered 10 be auctioned by , 
the Conwnissioner as soon as it is practicable-afer in or- 
der of detention or seizare of such goods is made and the. 
amunt so reslised by de auction of goods shall be rem 
ted in the Goverment Treasury immediately. 
    
  
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(18) Where an order imposing penalty is passed 
under, sub-section 9} or under sub-section (12) and the 
persoi liable fails to pay the penalty within the prescribed period, the goods detained or scizved may besold by public auction and the sale proceeds deposited in Government 
Treasury 
(19) Anction of goods fo be made under sub-section (17) oF sub-section (18) stall be carried inthe manner pre- 
   
   
    
‘DELHI GAZETTE: EXTRAORDINARY 
. Seribed for disposal of goodsiandes ‘sub-section (6) 
    
    
                                                          
   
    
   
    
   
                              
    
tion 64 of the Delhi Sales Tax Aci. 
(20) Any person entitled to the sale pt 
goods auétioned under the provisions of this soctk on application made to the Commissioner and u icint proof, be.paid the sale proceeds-of the g 
tioned, after deducting the expenses of the sate, oth dental charges, the aniount of tax and the penalty under this Act. 
~-. (21) No action shall lie for damages or for claim by any person against the Commissioner or ama officer authorised in this beltalf for anything done 
faithin akan duties under this sect 
furas maybe, carried’on in accordance with the provi ofthe Code of Csimirial Procedure, 1973 (2 of 1974) r= 
fo searches or sures made under thal Code, 
16. Power to exempt. The Government stall 
afiythi 1g 10 tiecontmy conned in any Jaw for! 
“being in force; every owner or any.othier person hia 
control ofa cold slore, warchouse; godown ar any 
place, wlio stores goods for hire or reward shall maint 
cause {9 be maintained a corréct and complete acca 
indicatirig the full particulars of Uie person whose s 
are stored and the quantity, value, date of receipt a1 
livery of such goods, 
* 2) Such accounts shall, on demand, be prods 
before the Commissioner or any officer aulvorized by 
in this bhaif who may take or cause'to be'taken 
eStmpcts there froin oF require such eytracis to be furniS 
‘as he may consider necessary. 
(3) IPany owner or any other person having co. 
“ of a cold storé. warchouse, godown or any olhier 5x4 
plice, who Stores, goods'for hire or reward, contraves 
“any of the provisions of sub-scelion (1) or sub-section 
in a thanher tikely to lead (0 evasion of any tax pas under thig Act, the Commissioner nay, without preju: 
“ toany olheraction which may be taken against such ow 
or the persoii having’contro} of a cold store, ware! 
‘godown or any olligr such place under any other prow 
sion of this Act, direct, after g i 
. ing heard, (iat such owner or the person having cont 
acold store, warchouse, godown or any ollier such pis 
shall pay by way of penalty a sum not esceeding three: 
a half limes tie tax, teviable on the goods in resr 
~ which default is committed under sub-section (1) or 
section (2)- 
    
   
  
   
5 CHAPTER VI . 
‘OFFENCES AND PENALTIES 
1X, Offences, (1) Where any person- 
(a) iable to be registéred under this Act fai 
«rogister himself. 
  
    
   

   
DELHI GAZETTE: EXTRAORDINARY 
     
  
   
   
    
    
  
   
    
    
   
              
    
         
    
   
   
  
   
  
   
  
(b) Table to filethe retum, fails to fle zetura or pay 
Uhe tay due according to such retorn within the 
time stipulated together with interest accrued 
(hercon. if any, knowingly prepares o¢ pro- 
- duces false accounts, fegisters or docuntents, 
or fumisites fntse eélarnsin relation to his onsi- 
ness, ov makes a false disclosure or averment 
inany statement reqnired ta be recorded or in 
= anty-decloration required to be filed under this 
Act or the rules framed thereunder; 
   
      
(6) _intentfonally avoids or evades or congeals tax or deliberately conceals his tumover or tax li- ability in any manner: 
{d) deliberately disregards a notice of demand or fails to pay the amount in terms of any-notice 
of demand and a period of six months has lapsed since the receipt of the notice of de- mand by him: 
  
(©) prevents orobsinictsin any manner the Com- 
missioner or any officer authorized-by him in 
this behalf under this Act,. to ect 
and search the place of business or a 
iplace where the goods or the'accounts, regis= 
tors and decumtents are believed to be kept, or 
prevents or obstructs, the Commissiorier or 
such officer to seize the «goods or lie accounts, 
vegisters and documents: 
   
ry (See TS 
  
Bi 
() — faits to make deduetion of tax al source’or.al- 
ter deducting fails 16 deposit amount so de- 
ducted as required under section 42 of this 
Act: 
    ty) enters into a transaction with any other’per- son without oblaining from hima tax clearance 
certificate tinder section 13 of this Act: 
(i) fails to maintain accounts in te manner as 
equised under scetion 11 of this Act 
fi) “/aids or abets any person in the commission of 
any such offence as aforesiid;     Heshall be punishable with simple imprisonment for Herm which may extend to six months or with Gne which 
‘extend to wenty thousand rupees, or with both, 
ee # Explanation. - An offence under clause (d) of this 
cction shiati be deemed to be a continuing offence 
full paymient is mode. 
@) Where an offerice under Nes section is commit- 
A ate forbacondhot oF fe hustness'tthetine when 
nmitled or who was answerable for a 
lapse in any manner by his'action or omission, shall 
inst and punished under this 
(3) Without projudice to the provisions contained in 
ection (2), where an offence under this section is     
. alloffences defined in Sub-sectic 
cameitet! by:a firm or a company’and itis found that the 
offence bas been committed with the consent ar comnir- 
ance of. ori attributable toany acgect on the part of, any 
partner of the firm or Chairman. Managing Director or Di- 
rector of the company: such partner. Chairman. Managing 
Director of Director shall be personally Liable 10 be pro- 
ceeded against and punished under this section. 
  
(4) Any prboeeding under this Actinciuding the pro- ceeding of assessment, reassessment, rectification Gr re: 
covery other than the praceeding for imposition of pen- 
ally. shall be carried on without prejudice to auy praseen- 
tion under this section. 
(5) Ca dealer fails without reasonable caus¢ fo com- 
ply with any of the provisions of this Act or the rules framed-thercunder, shall, if a0 other penalty is provided under this Act for such contravention ar failure, be liable 10 imposition of penalty, not less than five thousand ru- pees and not ¢xeceding fifteen per cent of the value of goods and where such contravention or failure is continu- ing one, ta a further penaley nol excceding five hundred 
rupees for each:day of default during the period of te contintiance of hhecontravention or failure: 
Provided (hat no uch penalty shall be imposed with- onl affording the desler an opportunity of being head 
      
(6) Notwithstanding anything to the contrary con tained in the Code of Criminal Procedure, 1973 (2 of 1974. (1) shall becognizable 
  
and lailable. 
(7) No court shall take cognizance of any offence 
punishable under this Act or the rules framed thereundes, 
except with ihe previous’ sanction of the Commissiones, and no count inferior to that of a Metropolitan Magistrate 
shail try any such offence 
  
19, Investigation of offences —(1) Subject to such 
conditions 4s may be prescribed, the Commissioner may 
authorise either generally or in respect ofa particular case 
or class of cases, any officer not below the rank of an Assistant Sales Tax Olficet to investigate all or any of the 
‘offences punishable under this Act. 
  
   
(2) Every officer so authorised shall, in the conduct 
ofsuch investigation, exercise all powers conferred by the 
Code of Crintinal Procedure, 1973 (2 of 1974) upon an of- 
ficersin-charge of police station for the investigation of a 
cognizable offence, S 
  
  
CHAPTER VIL 
CERTAIN PROVISIONS OF THE DELII SALES: 
‘ ‘TAX ACT APPLICABLE 
20, Aulliarities under the Delhi Sales Tax Act em- 
* powered to’ aesoss, reassess, ete, tax under this Acl.—~ 
Subject to the other provisions of this Act and the rules 
framed thercunder. the authorities for the Lime being em- 
powered to assess, re-assess_ collect and enforce payment 
ofany tax, interest and penalty under the Detht Sates Tax 
Act, shall assess, re-assess, collect and enTorce payment 
  
  
 

lo 
DELHI GAZETTE : EXTRAO! 
Arias. including any iskercst or penalty payable by a dealer 
under this Act asi tetas or intotest o: penalty payable! suet a dealer ander this Act iS a lax, interést ox penalty payable under the Delhi Sales Tax Act and for this purpose thoy may extrciscall or any ofthe powersthey have undes the Deh Sales Tax Act and Ihe rules framed thereunder and the provisionsof theDethi SulesTax Act and the rules: (arsed thereunder relating torchums, assessment, notice. reetification, colleetion, rogistmlion. liability of any Bsmt or Uindu undivided- family to pay tax in the event of the: dissolutiost of such firm or partition of such family, special mode of recovery of tis. appeals, revision, references, 1e- funds, fines, penalties. charging of payment of interest. aud the creatment of documents furnished by a dealet as confidential. reassessment of escaped tumnover of sates, recavery of tas. maintenance of accounis, inspection, search and seizure, iabilityin representative character, cf ercnces af cases to the High Court 6f Delhi, compounding af offenses and other miscellaneous matter shalt mutatis tuxianelis apply accordingly. 
Explunation.—All the provisions ofthe Dethi Sates Tax 
Act reguiding proceedings under the said Aet, in sofaras 
the sane aze nol inconsistent with the provisions of this 
Act shal? apply aataiis mutaadis to the proceedings wi- 
der tis Act, 
     
CHAPTER VI 
MISCELLANEOUS AND RULES 
21. Officersind servantsappointed under this Act 
£0 be public servants —All officers and servants appointed 
under this Act shall be deemed to be public servants within 
te meaning of section 21 of the Indian Penal Code, 1860 
(Sof 1860). ae 
22. Bar of suits in Cisii courts.—No suit shall be 
brought in aay civil court to sel aside or modify any as- 
sesstient made ar any order passed under this Act or tlle 
niles (ramex thereunder ard no prosecution, suit orother 
proceeding slialt lic against the Government or any officer of the Goverment for anyitiing in good faith done or in- 
tended! to be done under this Act or the rules framed there- 
under, 
23, Detegation af Contmissioner's poner—Subject 
to such restrictions and conditions as may be prescribed 
the Commissianzr nisy, by orderin writing, delogate any of 
this powers, Sanctions aud dutics under this Act except 
hat nnder Sub-seelion Qy‘af section 18 to auiy officer not 
below the rank ofan Assistant Sales Tax Officer, 
24, Powerto make nilex—{1)The Government may. 
by notification in the Oflicial Gazette and subject to te 
condition of previous publication, make cules for carrying 
ut the purposes of this Act, 
Provided that if the Government is satisfied that cir- 
cumstances exist which render it necessary to take irmedi- 
ate aclion. it may dispense with previous publication of 
any rules 1a be made under this section. 
    
      
      
   
   
(2) In particular and without prejudice to the ge ity of the foregoing power. such niles may provide fo 
    (o) all matters expressly tequited or allow this Act 10 be prescribed, 
(&) procedure for registration of deaters: 
    
    
    
  
(©) compelling the

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