LexThe Goa Tax on Entry of Goods Act, 2000
Goa · state statute
Open in Lexace · Ask the AI about this act- 1 - GOVERNMENT OF GOA Department of Law and Judiciary Legal Affairs Division Notification 7-25-2000/LA The Goa Tax on Entry of Goods Act, 2000 (Goa Act 14 of 2000), which has been passed by the Legislative Assembly of Goa on 26-7-2000 and assented to by the Governor of Goa on 11-8-2000, is hereby published for general information of the public. S. G. Marathe, Under Secretary (Drafting). Panaji, 11th August, 2000. The Goa Tax on Entry of Goods Act, 2000 Goa Act 14 of 2000 [11-8-2000] AN ACT to provide for the levy of tax to regulate the use of facilities, infrastructure, etc., provided in the State of Goa on entry of goods into its local areas for consumption, use or sale therein. Be it enacted by the Legislative Assembly of Goa in the Fifty-first Year of the Republic of India as follows:— CHAPTER I Preliminary 1. 1[Short title, extent and commencement] — (1) This Act may be called the Goa Tax on Entry of Goods Act, 2000. (2) It shall extend to the whole of the State of Goa. (3) It shall come into force on such date as the Government may, by notification in the Official Gazette, appoint. 2[4] Deleted 2. Definitions.— (A) In this Act, unless the context otherwise requires,— (a) “agricultural produce or horticultural produce” shall not include tea, coffee, rubber, cashew, cardamom, pepper and cotton; and such produce as has been subjected to any physical, chemical or other process for being made fit for consumption, save mere cleaning grading, sorting or drying; (b) “assessee” means a person who is liable to pay tax; (c) “assessing authority” means any officer empowered to make an assessment under the 3[the Goa Value Added Tax Act, 2005 (Goa Act 9 of 2005) ]; (d) “Assistant Commissioner” means a person appointed by that designation by the Government under 4[the Goa Value Added Tax Act, 2005 (Goa Act 9 of 2005) ]; - 2 - (e) “Business” includes 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 profit accrues from such trade, commerce, manufacture, adventure or concern and any transaction i n connection with or incidental or ancillary to such trade, commerce, manufacture, adventure or concern; (f) “Commissioner” means the person appointed to be the Commissioner of Sales Tax in the State and includes an Additional Commissioner; (g) “dealer” means any person who in the course of business, whether on his own account or on account of a principal or any other person, brings or causes to be brought into a local area any goods or takes delivery or is entitled to take delivery of goods on its entry into a local area and includes an occasional dealer, a casual trader, a non-resident dealer; Explanation I.— An industrial, commercial or trading undertaking of the Government of Goa, the Central Government or any other State Government, a local authority, company, a Hindu undivided family, a firm, a society, a club or an association which carries on such business shall be deemed to be a dealer for the purposes of this Act. Explanation II. — A society (including a co -operative society), club or firm or an association which, whether or not in the course of business, buys, sells, supplies or distributes goods from or to its members for cash or for deferred payment or for commission, remuneration or other valuable consideration, shall be deemed to be a dealer for the purpose of this Act. Explanation III. — The Central Government or a State Government other than the Government of Goa which, whether or not, in the course of business, buys, sells, supplies or distributes goods, directly or otherwise, for cash or deferred payment or for commission, remuneration or other valuable consideration shall be deemed to be a dealer for the purpose of this Act. Explanation IV.— When a consignee does not take delivery of goods upon its entry into a local area, and such goods are sold u nder the provisions of any law, the buyer who takes delivery of such goods upon the goods being sold shall be deemed to be the dealer thereof. Explanation V.— A person undertaking the execution of works contract involving the use or consumption of goods en tering into a local area shall be deemed to be the dealer thereof. Explanation VI.— Any person who brings or causes to be brought any goods into a local area, but resides outside the State of Goa (hereinafter referred to as “a non-resident dealer”) including his agent or manager shall be deemed to be the dealer thereof. Exception:— An agriculturist who brings exclusively agricultural produce grown on land cultivated by him personally shall not be deemed to be a dealer within the meaning of this clause. (h) 5[“Additional Commissioner” means the person appointed by that designation by the Government under the Goa Value Added Tax Act, 2005 (Goa Act 9 of 2005).] (i) “facility/infrastructure” includes roads/bridges/any river transport facilities like jetty, etc., industrial estates, any other facilities having its impact on movement of goods or processing; (j) “goods” means all kinds of movable property (other than newspapers, actionable claims, stocks, and shares and securities) and includes livestock; (k) “goods vehicle” means any kind of vehicle used for carriage of goods, either solely or - 3 - in addition to passengers (other than aeroplanes and rail coaches) and includes push cart, animal drawn cart, tractor-trailer and the like; (1) "Government" means the Government of Goa; (m) “local area” means the area within the limits of a Council constituted under the Goa Municipalities Act, 1968 (Act 7 of 1969), or a Panchayat or Zilla Panchayat established under the Goa Panchayat Raj Act, 1993 (Act 14 of 1994), a cantonment board, any specified area notified by the Government and any other local authority by whatever nomenclature called, constituted or continued under any law for the time being in force; (n) “occasional dealer”means any person who, in the course of occasional transactions of business nature, whether on his own account or on account of a principal or any other person, brings or causes to be brought into a local area any goods or takes delivery or is entitled to take delivery of goods on its entry into a local area; (o) “place of business” means any place where a dealer is doing business and includes:- 1. any warehouse, godown, or other place where the dealer stores or processes his goods; 2. any place where the dealer produces or manufactures goods; 3. any place where the dealer keeps his books of accounts; 4. any place where the dealer carries on business through an agent (by whatever name called), the place of business of such agent; (p) “registered dealer" means a dealer registered under this Act; (q) “Schedule" means a Schedule appended to this Act; (r) “tax" means tax leviable under this Act; 6[(ra) ‘transporter’ means any person, who carries on the business of transporting goods on account of any other person into, or outside, or within the State of Goa and includes carrier, transporting agent, courier and parcel service operators and bus service operators. Explanation.— For the purposes of this clause, the expression “transporting agent" shall also include a clearing, forwarding, shipping and handling agent,]; (s) “Tribunal" means the Tribunal constituted under the Goa Administrative Tribunal Act, 1965 (Act 6 of 1965); (t) “value of goods " shall mean the purchase value of such goods, that is to say, the purchase price at which a dealer has purchased the goods 7[ ] or if such goods have not been purchased by him, the prevailing market price of such goods in the local area; (u) “works contract" means any agreement for carrying out for cash, deferred payment or other valuable consideration, the construction, fitting out, improvement or repair of any building, road, bridge or any other immovable property, or manufacture, processing, fabrication, erection, installation, fitting out, improvement, modification, repair, conversion or, commissioning of any movable property; (v) “Year" means the year commencing on the first day of April. (B) Words and expressions used in this Act, but not defined, shall have the meaning as assigned to them in 8[the Goa Value Added Tax Act, 2005 (Goa Act 9 of 2005) ] - 4 - CHAPTER II Levy of tax 3. Levy of tax. — 9[(1) There shall be levied and collected a tax on entry of any goods specified in SCHEDULE I hereto, into a local area upon use of any facilities/infrastructure or any other amenities belonging to or provided by the State for consumption, use or sale therein, at such rates shown against each of the entry in the said SCHEDULE.]; (1) The tax levied under sub -section (1) shall be paid by every registered dealer or a dealer liable to get himself registered under this Act who brings or causes to be brought into a local area the goods, using any facilities/infrastructure or any other amenities belonging to or provided by the State whether on his own account or on account of his principal or any other person or who takes delivery or is entitled to take delivery of such goods on its entry into a local area. Explanation.— Where the goods are taken delivery of on its entry into a local area or brought into a local area by a person other than a dealer, the dealer who takes delivery of the goods from such person shall be deemed to have brought or caused to have brought the goods into the local area. 10[(3) Notwithstanding anything contained in sub -section (1) or sub -section (2), no tax shall be levied on and collected from a dealer who brings or causes to be brought into a local area any goods,— 1. in respect of which tax has been paid or has become payable in any other local area under sub-section (1), or 2. in respect of which tax has been paid or has become payable under 11[the Goa Value Added Tax Act, 2005 (Goa Act 9 of 2005) ], and under the Central Sales Tax Act, 1956 (Central Act 74 of 1956). Explanation.— For the purposes of this section, tax paid or become payable should be on goods in the same form in which they are brought or caused to be brought into the local area and in c ase of tax under the Central Sales Tax Act, 1956, that which is paid or become payable in the State of Goa.]. (4) No tax shall be levied under this Act on any goods specified in SCHEDULE II hereto on its entry into a local area for consumption, use or sale therein. (5) No tax shall be levied on a defence unit or establishment which causes entry of any goods liable to tax under this Act, into a local area for use by it in the manufacture, repair or research and development of defence and defence related goods onl y if it is brought in directly by the establishment itself. (6) 12[Every manufacturer who brings or causes to be brought any goods into a local area for consumption or use therein, the aggregate value of which is less than one lakh rupees in a year and any oth er dealer who brings or causes to be brought any goods into a local area for consumption, use or sale therein, the aggregate value of which is less than two lakh rupees in a year, shall not be liable to pay tax for that year: Provided that every non -residential dealer including his agent or manager, or every occasional dealer shall be liable to pay the tax each year at the rates specified irrespective of the aggregate value of the goods brought or caused to be brought into the local area during the year.] (7) The tax shall be assessed, levied and collected in such manner and in such instalments, if any, as may be prescribed. (8) Subject to such rules as may be made the assessing authority may assess a dealer - 5 - for any year, as if, the aggregate value of the goods bro ught or caused to be brought into a local area in such year had been received as in the previous year. (9) The tax shall be in addition to the tax levied and collected as octroi by a Municipal Council, Zilla Panchayat or Village Panchayat or any other local authority, as the case may be, within its local areas. 13[3A. Refund of tax in respect of tax paid goods. — Subject to such restrictions and conditions as may be prescribed, tax paid under this Act on value of goods which have become liable for sales tax un der 14[the Goa Value Added Tax Act, 2005 (Goa Act 9 of 2005) ]or under the Central Sales Tax Act, 1956 (Central Act 74 of 1956) shall be refunded to the dealer. Notwithstanding anything contained hereinabove, the Commissioner may adjust the amount due to be refunded under this section towards recovery of any amount due from the dealer on the date of adjustment and then refund the balance, if any. 3B. Set-off in respect of tax paid goods in certain circumstances. — Subject to such restrictions and conditions as may be prescribed, a set off of proportionate amount of tax paid under this Act on inputs used in the manufacture of goods actually exported out of the country shall be allowed in proportion of goods used in such manufacture]. 15[3C. Levy of tax on certain types of goods.— (1) Notwithstanding anything contained in section 3 and/or section 10, there shall be levied and collected a tax on entry of any goods, other than those specified in SCHEDULE II to the Act, into a local area for delivery by any transporter to the consignee or any other person within the local area for use or sale therein on the purchase value of such goods at the rates specified in SCHEDULE I hereto. (2) The transporter shall be liable to pay the tax levied under this section on the goo ds transported and delivered by him to the consignee or any other person, where destination of such goods is within the local area. (3) On failure of the transporter to pay the tax levied under this section, the transporter and the consignee shall be jointly and severally liable for payment of such tax and penalty levied, if any: Provided that the Government shall have first charge over such goods till payment of tax and/or penalty is made: Provided that no tax shall be levied under this section on goods broug ht in the local area, by the transporter for delivery to a dealer registered under the Goa Value Added Tax Act, 2005 (Goa Act 9 of 2005) and is liable to pay value added tax for use in manufacture or processing of goods for sale. 3D. Amendment to the Sched ule.— (i) The Government may, by notification in the Official Gazette,— (a) reduce any rate of tax, (b) enhance any rate of tax, and may, by like notification, add to, or omit from or otherwise amend any entry of, any SCHEDULE hereto and thereupon the SCHEDULE shall be deemed to have been amended accordingly. (ii) Any notification issued under clause (i) shall take effect prospectively, either from the date of publication thereof in the Official Gazette or from a later date as may be mentioned therein; - 6 - (iii) The provisions contained in section 50 regarding rules made by the Government shall apply mutatis mutandis to any notification issued under clause (i), as they apply to rules made by the Government.] 4. Collection of tax by registered dealer.— (1) A person who is not a registered dealer shall not collect any amount by way of tax or purporting to be by way of tax under this Act, nor shall a registered dealer collect any amount by way of tax or purporting to be by way of tax at a rate or rates exceeding the rate or rates specified in a notification issued under section 3. (2) No dealer shall collect any amount by way of tax or purporting to be by way of tax in respect of the entry of any goods on which no tax is payable by him under the provisions of this Act. 5. Collection of tax by Central Government or the Government.— Notwithstanding anything contained in this Act, the Central Government or the Government shall be entitled to collect, by way of tax, any amount which a registered dealer would be entitled to collect by way of tax under this Act. 6. Penalty for collection in contravention of section 4. — If any person contravenes any of the provisions of section 4, the assessing authority may, after giving such person 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 of such amount: Provided that no prosecution for an offence under section 41 shall be instituted in respect of the same contravention for which a penalty has been imposed under this section. 7. Payment and disbursement of amounts wrongly collected by dealers as tax.— (1) Where any amount is collected by way of tax or purporting to be by way of tax from any person by any dealer in contravention of section 4, whether knowingly or not, such dealer shall pay the entire amount so collected to the assessing authority within thirty days after the close of the month in which such amount was collected, notwithstanding that the dealer is not liable to pay such amount as tax or that only a part of it is due from him as tax under this Act. (2) If default is made in payment of the amount in accordance with sub-section (1),— 1. the whole of the amount outstanding on the date of default shall become immediately due and shall be a charge on the properties of the dealer; 2. the dealer liable to pay the amount shall pay interest at the rate of one and one half percent of such amount for each month of default; and 3. the whole of the amount remaining unpaid along with the interest calculated under clause (ii) of this sub-section shall be recoverable in the manner specified in section 19. (3) Notwithstanding anything contained in this Act or in any other law for the time being in force, any amount paid or payable by any dealer under sub -section (1) shall, to the extent it i s not due as tax, be forfeited to the Government and be recovered from him and such payment or recovery shall discharge him of the liability to refund the amount to the person from whom it was collected. (4) Where any amount is paid or recovered from any deale r under sub -section (1) or sub-section (3), as the case may be, a refund of such amount or any part thereof can be claimed from the Government by the person from whom it was realized by way of tax provided an application in writing in the prescribed form i s made to the Commissioner, within two years from the date of the order of forfeiture. On receipt of any such application, the Commissioner shall hold such inquiry as he deems fit and if the Commissioner is satisfied that the claim is valid and admissible and that amount as claimed as refund is actually paid or recovered, he shall refund the amount or any part thereof, which is - 7 - found due to the persons concerned: Provided that a fund shall be established by the Government within three months from the commencement of this Act from the amounts forfeited or recovered except for the amounts refunded as aforesaid to the persons concerned, and after deducting the expenses of collection and recovery as determined. The fund shall be administered in the prescribed manner and the amount in the fund shall be utilized for meeting the expenses of any welfare activity by Governmental or non-Governmental organization functioning in the State or credited to Chief Minister‘s Relief Fund. 8. Registration of dealers.— (1) Every dealer,— (a) who buys or receives goods liable to tax under this Act and who is doing business in a local area and is registered or is liable for registration under 16[section 18] of 17[the Goa Value Added Tax Act, 2005 (Goa Act 9 of 2005) ],or (b) who brings or causes to be brought such goods into a local area or takes delivery or is entitled to take delivery of such goods, the aggregate value of which is not less than two lakhs rupees in a year, shall get himself registered under this Act in such manner, on payment of such fee and within such period as may be prescribed. The registration shall be renewed from year to year on payment of the prescribed fee until it is cancelled: 18[Provided that every dealer who is a manufacturer who brings or causes to be brought such goods into a local area for consumption or use therein, shall get himself registered under this Act, if the aggregate value of such goods brought into a local area is not less than one lakh rupees in a year.] (2) Notwithstanding anything contained in sub-section (1),— (i) every dealer undertaking execution of works contract involving the use or consumption of goods entering into a local area; (ii) every occasional dealer; (iii) every manager or agent of a non-resident dealer; other than a dealer dealing exclusively in the goods specified in the Schedule II, shall get himself registered irrespective of the value of such goods. (3) No dealer who is already registered under 19[the Goa Value Added Tax Act, 2005 (Goa Act 9 of 2005) ], shall be required to pay registration or renewal fee under this Act. (4) Nothing contained in this section shall apply to any State Government or the Central Government. 20[8A. Provision for registration, returns, payment of tax, assessment, levy of penalty, etc., for transporters of goods. — (1) Every transporter who transports the goods for delivery into the local area and liable to pay tax under this Act shall get himself registered under this Act in the manner as may be prescribed. (2) The provisio ns as regards to returns, payment of tax, assessment, re -assessment, levy of penalty, appeals, review, revision, recovery, etc., specified in the Act for a dealer shall mutatis mutandis be applicable to the transporter.]. 21[8B]. Savings.— Anything done or any action taken or any levies made under section 3 or under section 8 of this Act before the enactment of the Goa Tax on Entry of Goods (Second Amendment) Act, 2003 shall be deemed to have been done, taken or levied as if the Goa Tax on Entry of Goods (S econd Amendment) Act, 2003 was in force at the time - 8 - when such thing or action or levies were done or taken or made, as the case may be.] CHAPTER III 9. Definitions.— In this Chapter, unless the context otherwise requires,— (a) “accessories" means air-conditioners, music system and any other articles fitted to a motor vehicle and which are not included in the original invoices; (b) “entry of motor vehicle into a local area from outside the State" with all its grammatical variations and cognate expressions, means entry of motor vehicle, into a local area from any place outside the State for use or sale therein; (c) “importer" means a person who brings a motor vehicle into a local area from any place outside the State for use or sale therein and who owns the vehicle at the time of its entry into a local area; (d) 22[“motor vehicle" means any mechanically propelled vehicle adapted for use upon roads, whether the power of propellation is transmitted thereto from an external or internal source, and includes a chassis where a body has not been attached, a trailer and two/three wheelers but does not include earth moving machinery such as dumpers, excavators, rollers, cranes, ambu-lift, tractors and vehicle running upon fixed rails or a vehicle of special type adapted for use only in a factory or in any other enclosed premises.] (e) “person" includes any company or association or body of individuals, whether incorporated or not, and also a Hindu undivided family, a firm, a society, a club, an individual, the Central Government or the Government of any other State, Union Territory, or a local Authority; (f) “purchase Value" means the value of motor vehicle as ascertained from the invoice and includes the value of accessories fitted to the vehicle, insurance, excise duty, countervailing duties, sales tax, transport fee, freight charges and all other charges incidentally levied on the purchase of a motor vehicle: Provided that, where purchase value of a motor vehicle is not ascertainable on account of non-availability or non-production of invoice or when the invoice produced is proved to be false or if the motor vehicle is acquired or obtained otherwise than by way of purchase, then the purchase value shall be at the value or price of being sold in open market; (g) “State" means the State of Goa. 10. Levy of tax. — (1) Notwithstanding anything contained in section 3, there shall be levied and collected a tax on the entry of any motor vehicle into a local area for use or sale therein by an importer which is liable for registration, or assignment of a new registration mark in the State under the Motor Vehicles Act, 1988 (Central Act 59 of 1988), (2) The tax shall be levied on the purchase value of the motor vehicles at such rate as may be fixed by the Government by notification but not exceeding the rates specified in respect of motor vehicles under 23[the Goa Value Added Tax Act, 2005 (Goa Act 9 of 2005) ]: Provided that, no tax shall be levied and collected in respect of a motor vehicle which is registered in any U nion territory or any other State under the Motor Vehicles Act, 1988 (Central Act 59 of 1988), fifteen months prior to the date on which a new registration mark is assigned in the State under the said Act. (3) The tax levied under this section shall be paid by the importer in such manner and within such time as may be prescribed. 11. Levy and collection of tax and penalties.— The provisions of this Act, in so far - 9 - as they relate to tax authorities, registration, filing of returns, assessments, re- assessments, levy of penalties, collection and recovery of tax and penalties, appeals, revisions, offences and prosecutions shall apply mutatis mutandis to the levy of tax on entry of motor vehicles into a local area for use or sale therein under this Chapter: Provided that in the case of an importer, other than a dealer liable for registration under this Act, causing entry of motor vehicle into a local area for use or sale therein, he shall pay tax to such authority as the Commissioner may notify, within fifteen days from t he date of entry of such vehicle into a local area or before an application is made for registration of the said vehicle or assignment of a new registration mark to such vehicle under the Motor Vehicles Act, 1988 (Central Act 59 of 1988), whichever is earlier. 12. Exemption of tax in certain circumstances. — Where any person is causing entry of motor vehicle into a local area within a period of fifteen months from the date of registration of such vehicle in any Union Territory or any other State under the Motor Vehicles Act, 1988 (Central Act 59 of 1988) and that such entry is occasioned as a result of shifting the place of his residence from such Union Territory or State into this State, the Commissioner may exempt such person from payment of entry tax on entry of such vehicle subject to production of proof in this regard by him. 13. Restriction to registration, etc. — Notwithstanding anything contained in any other law for the time being in force, where the liability to pay tax in respect of a motor vehicle arises un der this Act and such motor vehicle is required to be registered or a new registration mark is required to be assigned to it in the State under the Motor Vehicles Act, 1988 (Central Act 59 of 1988), no registering authority shall either register any such motor vehicle or assign any new registration mark to such motor vehicle unless payment of such tax has been made by the person concerned in respect of such vehicle. CHAPTER IV Return, assessment, payment, recovery and collection of taxes 14. Returns and assessment.— (1) Notwithstanding anything contained in section 18, every registered dealer and every dealer who is liable to get himself registered under this Act shall, every year, submit a return to the assessing authority within such period, in such manner, and containing such particulars as may be prescribed. (2) Before any dealer submits any return under sub-section (1), he shall, in the prescribed manner, pay in advance the full amount of tax payable by him on the basis of such return as reduced by any tax already paid under section 18 and shall furnish along with the return satisfactory proof of the payment of such tax. After the final assessment is made, the amount of tax so paid shall be deemed to have been paid towards the tax finally assessed. (3) If the assessing authority is satisfied that any return submitted under sub -section (1) is correct and complete, he shall assess the dealer on the basis thereof. (4) If no return is submitted by the dealer under sub -section (1) before the period prescribed or if the re turn submitted by him appears to the assessing authority to be incorrect or incomplete, he shall assess the dealer to the best of his judgement recording the reasons for such assessment: Provided that before taking action under this sub -section the dealer shall be given reasonable opportunity of proving the correctness and completeness of the return submitted by him. (5) While making any assessment under sub -section (4), the assessing authority may also direct the dealer to pay, in addition to the tax assessed, a penalty not exceeding one and - 10 - a half times the amount of tax due that was not disclosed by the dealer in his return or in the case of failure to submit a return one and a half times the tax assessed, as the case may be. (6) No assessment under this section for any year shall be made after a period of three years from the date on which return under section 14 for that year is submitted by a dealer: Provided further that nothing contained in this sub-section limiting the time within which the assessment may be made shall apply to an assessment made on the assessee or any person in consequence of, or to give effect to any finding, direction or order made under sections 28, 29 or 30 or any judgment or order made by any Court. (7) In computing the period of limitation for assessment under this section,— (a) the time during which the proceedings for assessment in question have been deferred on account of any stay order granted by any Court or any other authority shall be excluded; (b) the time during which the assessment has be en deferred in any case or classes of cases by the Commissioner for reasons to be recorded in writing shall be excluded. (8) Where an assessment under this section is not concluded within the time specified under sub -section (6), the turnover or the value of taxable goods, as the case may be, declared` by a dealer in his annual return shall be deemed to have been assessed for that year on the basis of the said return and the provisions of the Act relating to assessment of such escaped turnover or purchase value of taxable goods, as the case may be, payment and recovery, appeal and revision shall, mutatis mutandis, apply to such deemed assessment. 15. Security deposit. — (1) The assessing authority, may, for good and sufficient reasons, demand from any dealer liable to pay tax under this Act, security for the proper payment of tax payable by him and on such demand such dealer shall furnish the same within seven days from the date of receipt of an order demanding security from the aforesaid authority. (2) The amount of security payable under sub -section (1), for any year shall not exceed an amount equivalent to one -half of the tax anticipated to be payable by the dealer for that year: Provided that the assessing authority shall have power to demand at any time additional security if such authority has reason to believe that the security fixed was too low. (3) The security paid under sub-section (2) in any year shall be maintained in full until it is dispensed with by the assessing authority on being satisfied that the reason for its demand no longer exists or until the registration certificate is cancelled, whichever is earlier. 16. Cancellation of assessments in certain cases.— (1) Where an assessee, within one month from the service of a notice of demand, makes an application and satisfies the assessing authority that he was prevented by sufficient cause from appearing as required under section 14, or that he did not receive the notice issued under that section or that he had not a reasonable opportunity of being heard, the assess ing authority shall cancel the assessment and proceed to make a fresh assessment in accordance with the provisions of section 14: Provided that no application under this sub-section shall be entertained by the assessing authority if tax admitted in the return is not paid. (2) Nothing contained in sub -section (1) shall apply to an assessment which has been made the subject-matter of an appeal under section 28. (3) No appeal shall lie under section 28 against an order passed under this section. (4) Every order passed under this section shall, subject to the provisions of sections 29, - 11 - 31, 33 and 34, be final. 17. Payment of tax for entry of goods escaping assessment. — (1) If the assessing authority has reasons to believe that the whole or any part of the turnover of a dealer or the value of taxable goods brought or caused to be brought into a local area by a dealer, whether on his own account or an account of his principal or any other person or who has taken delivery or is entitled to take delivery of such goods on its entry into local area in respect of any period, has escaped assessment to tax or has been under assessed or has been assessed at a rate lower than the rate at which it is assessable under this Act or any deduction or exemption have been wrongly allowed in respect thereof, the assessing authority may, notwithstanding the fact that the whole or part of such escaped turnover or value of taxable goods, as the case may be, was already before the said authority at the time of original assessment or re -assessment, but subject to the provisions of sub -section (3), at any time within a period of eight years from the expiry of the year to which the tax relates, proceed to assess or re -assess to the best of its judgment the tax payable by a dealer in respect of such turnover or purchase value of such goods, as the case may be, after issuing a notice to the dealer and after making such enquiry as it may consider necessary. (2) In making an assessment under sub -section (1), the assessing authority may, if it is satisfied that the escape from assessment is due to wilful non-disclosure of the entry of such goods by the dealer, direct him to pay, in addition to the tax assessed under sub-section (1), a penalty not exceeding one and a half times the tax so assessed: Provided that no penalty under this sub -section shall be directed to be paid unless the dealer affected has had a reasonable opportunity of showing cause against such imposition. (3) In computing the period of limitation for assessment under this section, the time during which an assessment has been deferred on account of any stay order granted by any Court or other authority or by reason of the fact that an appeal or other proceeding is pending, shall be excluded: Provided that nothing contained in this section limiting th e time within which any action may be taken or any order, assessment or reassessment may be made, shall apply to an assessment or reassessment made on the assessee or any person in consequence of or to give effect to, any finding direction or order made under sections 28, 29, 30, 31 or 33 or any judgment or order made by the Supreme Court, the High Court, or any other Court. 18. Payment of tax in advance. — (1) Subject to such rules as may be made, every registered dealer and every dealer liable to get himself registered under this Act shall send every month to the assessing authority a statement containing such particulars as may be prescribed and shall pay in advance the full amount of tax payable by him on the basis of the goods brought by him during the preceding month into the local area within thirty days after the close of the preceding month to which such tax relates and the amount so payable shall for the purpose of sub -section (4) of section 19 be deemed to be an amount due under this Act from such dealer. (2) If default is committed in the payment of tax in accordance with sub -section (1) beyond ten days after the expiry of the period specified in the said sub -section, the dealer shall pay by way of penalty, a sum equal to two per cent of the tax payabl e for every such month or part thereof during which such default is continued. (3) If, at the end of the year it is found that the amount of tax paid in advance by any dealer for any month or for the whole year in the aggregate was less than the tax payable for that month or the tax for the whole year as finally assessed, as the case may be, by more than fifteen per cent, the assessing authority may direct such dealer to pay, in addition to the tax, by way of penalty, a sum not exceeding one and a half times th e amount of tax so paid falls short of the tax payable for the month or for the whole year, as the case may be: - 12 - Provided that no penalty under this sub-section shall be imposed unless the dealer affected has had a reasonable opportunity of showing cause against such imposition. (4) If no such statement is submitted by a dealer under sub -section (1) before the date prescribed or if the statement submitted by him appears to the assessing authority to be incorrect or incomplete, the assessing authority may asses s the dealer provisionally for that month to the best of his judgment, recording the reasons for such assessment, and proceed to demand and collect the tax on the basis of such assessment: Provided that before taking action under this sub-section, the dealer shall be given a reasonable opportunity of being heard. 19. Payment and recovery of tax. — (1) The tax under this Act shall be paid in such manner and in such instalments, if any, and subject to such conditions and payment of such interest and within such time, as may be prescribed. (2) If default is made in making payment in accordance with sub-section (1),— (i) the whole of the amount outstanding on the date of default shall become immediately due and shall be a charge on the property of the person or persons liable to pay tax under this Act; (ii) the person or persons liable to pay the tax under this Act shall pay a penalty equal to,– (a) one and half percent of the amount of tax remaining unpaid for each month or for part thereof, for the first three months after the exp iry of the time prescribed under sub-section (1); and (b) two and half per cent of such amount for each month or for part thereof, subsequent to the first three months as aforesaid. (3) Notwithstanding anything contained in sub-section (2), where the amount of penalty does not exceed rupees two lakh, the Commissioner and in any other case, the Government may, subject to such conditions as may be prescribed, remit the whole or any part of the penalty payable in respect of any period by any person or class of persons. (4) Any tax assessed, or any other amount due under this Act from a dealer may, without prejudice to any other mode of collection be recovered,— (a) as if it were an arrear of land revenue; or (b) by attachment and sale or by sale without attachment of any property of such dealer or any other person by the prescribed officer in accordance with such rules as may be prescribed: Provided that where a dealer who has appealed or applied for revision of any, order made under this Act and has complied with an order made by the appellate or the revising authority in regard to the payment of tax or other amount, no proceedings for recovery under this sub -section shall be made or continued until the disposal of such appeal or application for revision. 20. Power to withhold refund in certain cases. — (1) Where an order giving rise to refund is the subject-matter of an appeal or further proceeding or where any other proceeding under this Act is pending, and the authority competent to grant such refund is of the opinion that the grant of refund is likely to adversely affect the revenue, such authority may, with the previous approval of the Commissioner, withhold the refund till such time as the Commissioner may determine. - 13 - (2) Where a refund is withheld under sub-section (1), the Government shall pay interest at the rate of twelve per cent per annum on the amount of refund ultimately determined to be due to the person as a result of the appeal or further proceedings, for the period from the date immediately following the expiry of ninety days from the date of the order referred to in sub-section (1) to the date of refund. 21. Recovery of tax from certain other persons.— (1) The assessing authority may, at any time or from time to time, by notice in writing (a copy of which shall be forwarded to the dealer from whom any tax assessed is due, at his last address known to the assessing authority) require any person from whom money is due to the dealer or any person who holds or may subsequently hold money for or on account of the dealer to pay to the assessing authority, either forthwith upon the money becoming due or being held. at or within the time specified in the notice (not being before the money becomes due or is held, so much of the money as is sufficient to pay the amount due by the dealer in respect of arrears of tax or penalty or the whole of the money when it is equal to or less than that amount. (2) The assessing authority may, at any time or from time to time, amend or revoke any such notice or extend the time for making any payment in pursuance of the notice. (3) Any person making any payment in compliance with a notice under this section shall be deemed to have made the payment under the authority of the dealer and the receipt of the assessing authority shall constitute a good a nd sufficient discharge of the liability of such person to the extent of the amount referred to in the receipt. (4) Any person discharging any liability to the dealer after receipt of the notice referred to in this section shall be personally liable to the ass essing authority to the extent of the liability discharged or to the extent of the dealer for the amount due under this Act, whichever is less. (5) Where any person to whom a notice under this section is sent objects to it on the ground that the sum demanded or any part thereof is not due by him to the dealer or that he does not hold any money for or on account of the dealer, then, nothing contained in this section shall be deemed to require such person to pay the sum demanded or any part thereof, to the assessing authority. Explanation.— For the purposes of this section, the amount due to dealer or money held for or on account of dealer shall be computed after taking into account such claims, if any, as may have fallen due for payment by such dealer to such person and as may be lawfully subsisting. 22. Liability of firms. — (1) Where any firm is liable to pay any tax or other amount under this Act, the firm and each of the partners of the firm shall be jointly and severally liable for such payment. (2) Where a partner of a firm liable to pay any tax, or other amount under this Act retires, he shall, notwithstanding any contract to the contrary, be liable to pay the tax, or other amount remaining unpaid at the time of his retirement and any tax or other amount due upto the date of retirement, though unassessed. 23. Assessment of legal representative.— Where a dealer dies, his executor, administrator or other legal representative shall be deemed to be the dealer for the purposes of this Act and the provisions of this Act shall apply to him in respect of the business of the said deceased dealer: Provided that, in respect of any tax, penalty or fee assessed or payable by any such dealer or any tax, penalty or fee which would have been payable by him under this Act if he had not died, the executor, administrator or other legal representative shall be liable only to the - 14 - extent of the assets of the deceased in his hands. 24. Tax payable on transfer of business, etc.
Excerpt shown. Open the full act in Lexace.