LexThe Gujarat Motor Spirit Cess Act, 2001
Gujarat · state statute
Open in Lexace · Ask the AI about this actTHE GUJARAT MOTOR SPIRIT CESS ACT, 2001.
GUJARAT ACT NO. 13 OF 2001.
CONTENTS
Clauses. Page
No.
PRELIMINARY
1. Short title, extent and commencement. 1
2. Definitions. 2
CHAPTER II
LEVY OF CESS AND UTILISATION OF PROCEEDS OF CESS
3. Levy and collection of cess. 2
4. Local Authorities Fund. 3
5. Payment of cess. 3
6. Interest on delayed payment of cess. 3
7. Refund in certain circumstances. 3
f
CHAPTER III
REGISTRATION
*
8. Registration. 3
9. Suspension or cancellation of registration. 4
'
CHAPTER IV
-
CESS AUTHORITIES
10. Cess Authorities. 4
CHAPTER V
LIABILITY TO KEEP ACCOUNTS, SUBMIT STATEMENT AND
POWERS OF INSPECTION AND SEARCH
11. Traders to keep accounts and submit statement. 4
12. Production and inspection of accounts and documents
and search of premises. 4
13. Seizure of any document in certain circumstances. 5
ASSESSMENTS, APPEALS AND REVISION
14. Assessment. 5
15. Bar of certain proceedings. 5
16. Appeal.
17. Revision. 6
18. Extension of period of limitation in certain cases. 6
19. Statement of case to High Court. 6
20. Rectification of mistakes. 7
CHAPTER VII
OFFENCES, PENALTIES AND PROCEDURE
21. Penalty for carrying on business without registration. 7
22. Penalty for failure to keep accounts or submit statements. 7
23. Penalty for failure to comply with requirements of
section 12 or for obstructing officer in discharging his duties. 8
24. Offences by companies. 8
25. Cognisance of offences. 8
26. Power of entry and search. 9
27. Power of investigation. 9
CHAPTER VII!
MISCELLANEOUS
28. Delegation of powers. 9
29. Powers to transfer proceedings.
30. Officers to be public servants. 9
31. Protection of action taken in good faith. 9 !
32. Recovery as arrear of land revenue. 9
33. Certain sales not liable to cess. 9
34. Power to make rules. 10
35. Repeal and savings. 11
_________
THE GUJARAT MOTOR SPIRIT CESS ACT, 2001.
GUJARAT ACT NO. 13 OF 2001.
AN ACT
to provide for levy of cess on turnover of sales of motor spirit in the State of
Gujarat for the purpose of creat ing fund in order to compensate local
authorities consequent on the abolition of octroi and for the matters
connected therewith and incidental thereto.
It is hereby enacted in the Fifty-second Year of the Republic of India as
follows '.—
CHAPTER I
PRELIMINARY
1. (1) This Act may be called the Gujarat Motor Spirit Cess Act, 2001. Short title,
extent and
(2) It extends to the whole of the State of Gujarat. commence-
ment.
(3) It shall be deemed to have come into force on the T1 May, 2001.
Definitions. 2. (1) In this Act, unless the context otherwise requires, —
(a) "cess" means the cess on the turnover of sales of motor spirit
levied under section 3;
(b) "Collector" means the Collector appointed under section 10 and
includes a Special Collector or an Additional Collector appointed
under that section;
(c) "local authorities " means -
(i) a municipality constituted under the Gujarat Municipalities Guj. 34 of
Act, 1963; 1964.
(ii)a village panchayat constituted under the Gujarat Guj.18 of
Panchayats Act, 1993; 1993.
(d) "prescribed" means prescribed by rules;
(e) "rules" means rules made under this Act;
Levy and
collection
of
cess.
(f) "tax" means tax, additional tax and turnover tax levied under the
Bombay Sales of Motor Spirit Taxation Act, 1958;
(g) "Tribunal" means the Gujarat Sales Tax Tribunal constituted under
section 28 of the Gujarat Sales Tax Act, 1969, and discharging Guj. 1 of
functions of the Tribunal assigned to it by or under this Act; 1970.
(h) "turnover of sales" means sales price including the amount of tax as
defined in clause (/) of this section;
(i) "year" means a financial year.
( 2 ) Words and expressions used and not defined in this Act but defined
In the Bombay Sales of Motor Spirit Taxation Act, 1958 shall have the meanings Bom. LXVI
respectively assigned to them in that Act. of 1958.
CHAPTER II
LEVY OF CESS AND UTILISATION OF PROCEEDS OF CESS
3. (1) For the purpose of providing fund for local authorities in the State of
Gujarat, there shall be levied and collected a cess on the turnover of sales of
motor spirit by a manufacturer or importer or trader, but after deducting there from
such turnover on which cess has been paid on earlier turnover of sales of motor
spirit:
Provided that such cess shall not be levied at more than one stage.
(2) The cess under sub-section (1) shall be levied in such manner and at
such rate or rates not exceeding four per cent, of the turnover of sales of such
motor spirit, as may be prescribed and different rates may be prescribed for
different kinds of motor spirit.
(3) The cess levied under sub-section (1) shall be payable by the trader.
Bom. LXVI of
1958.
4. (1) The proceeds of the cess and interest (other than fines) recovered Local
under this Act shall first be credited to the Consolidated Fund of the State and Authorities
after deduction of the expenses of collection and recovery there from shall, under
appropriation duly made by law in this behalf, be entered in, and transferred to a
separate fund called the "Local Authorities Fund".
(2) Any amount transferred to the Local Authorities Fund under
sub-section <J) shall be charged on the Consolidated Fund of the State.
(3) The amount transferred to the Local Authorities Fund shall be
expended in such manner and subject to such conditions as may be prescribed
for the purpose mentioned in section 3.
5. (1) The cess levied under section 3 shall be payable by trader in such Payment of
manner as may be prescribed. cess
(2) The trader liable to pay cess under section 3 shall furnish at such
intervals and to such authority, returns in such form and in such manner as may
be prescribed.
6. Where a trader does not pay the amount of cess within the time prescribed
for its payment, there shall be paid by such trader, for the period commencing on
the date of expiry of the aforesaid period and ending on the date of payment of
the amount of cess, simple interest at the rate of twenty-four per cent, per annum
on the amount of cess not so paid or any less amount thereof remaining unpaid
during such period.
7. Where cess under section 3 is levied and collected on the turnover of
sales of motor spirit to a trader and such motor spirit is then sold by such trader
in the course of inter-State trade or commerce or exported out of the territory of
India within six months of such sales, the trader shall, upon an application made in
this behalf and subject to such conditions as may be prescribed, be entitled to refund
of cess in respect of the sale to him of the motor spirit.
.
8. (1)Every trader holding a license under the Bombay Sales of Motor
Bom. Spirit Taxation Act, 1958 shall be required to apply for and obtain a registration certificate:
Provided that the Collector may, subject to such conditions as may be
prescribed, grant exemption from the provisions of registration to a trader who,
by virtue of deduction from turnover of sales, does not become liable to pay cess
under this Act.
(2) The application for registration shall be made in such form, within
such period and to such authority, as may be prescribed.
(3) On receipt of an application for registration under sub-section (2)t
the authority on its satisfaction, may issue a certificate of registration in such
form as may be prescribed.
Interest on
delayed
payment of
cess.
Refund
in certain
circum-
stances.
CHAPTER III
REGISTRATION
Registration. Bom.LXVI
of l958
Suspension or
cancellation
of registra-
tion.
9. The Collector may, subject to such conditions as may be prescribed,
suspend or cancel the registration if,—
(a) any cess payable under section 5 is not duly paid by the trader;
(b) there is any breach of conditions subject to which the registration is
granted; or
(c) the trader contravenes any of the provisions of this Act or the rules
made thereunder.
Cess Authori-
ties.
10.
appoint
CHAPTER IV
CESS AUTHORITIES
(1) For carrying out the purposes of this Act, the State Government may
Production
and inspec-
tion of
accounts and
documents
and search of
premises.
(a) a person to be the Collector of Motor Spirit Cess for the whole of the
State of Gujarat;
(b) a person to be the Special Collector of Motor Spirit Cess;
(c) a person to be the Additional Collector of Motor Spirit Cess; and
(d) such other persons to assist the Collector as the State Government
may think fit.
(2) A person appointed under clause (b), (c) or (d) of sub-section (J) shall, within
the limits of such area as the State Government may specify, exercise such powers and
perform such duties as may be conferred or Imposed on him by or under this Act.
CHAPTER V
LIABILITY TO KEEP ACCOUNTS, SUBMIT STATEMENT AND
POWERS OF INSPECTION AND SEARCH
11. Every trader shall keep and maintain accounts in such form as may be
prescribed, of motor spirit manufactured, imported, sold or purchased by him,
and shall submit to the officer authorised in this behalf by the Collector, the
statement in such form, in such manner and for such period, as may be prescribed:
Provided that where a trader has more than one place of business, the
Collector may subject to such terms and conditions as may be prescribed, permit
such trader to submit a consolidated statement rela ting to all or any of his places
of business to such officer as the Collector may direct.
12. (i) The Collector may, for the purposes of this Act, at all reasonable
times—
(i) require any trader to produce before him accounts, registers or
other documents or to furnish any other information; or
(ii) inspect the accounts, registers and other documents and the stocks
of any motor spirit manufactured, stored or kept in any shop, warehouse or
place of business of any such trader; or
Trade
Traders to
keep
accounts
and submit
statement
(iii) enter and search any building, vessel, vehicle or place in which
he has reason to believe that any motor spirit is stored or kept for the purpose
of sale or manufacture or where the accounts, registers and other documents
are kept.
(2) All searches made under this section shall be made in accordance
2 of 1974. with the provisions of the Code of Criminal Procedure, 1973.
13. If the Collector has reason to believe that any trader is attempting to
commit an offence punishable under this Act, he may for reasons to be recorded
in writing, seize such accounts, registers or other documents of such trader as
may be necessary and shall grant a receipt for the same and retain the same only
for so long as may be necessary for examination thereof or for prosecution.
CHAPTER VI
ASSESSMENTS, APPEALS AND REVISION
14. (1) The amount of cess due from a trader shall be assessed by the Collector. Assessment.
(2) If the Collector is satisfied that the returns furnished by a trader are
correct and complete, he shall assess the amount of cess due from the trader on
the basis of such returns.
(3) If the Collector is not satisfied that the returns furnished in respect of
any period are correct and complete, and he thinks it necessary to require the
presence of trader or the production of further evidence, he shall serve on such
trader, in the prescribed manner, a notice requiring him on a date and a place
specified therein, either to attend and produce or cause to be produced all
evidences on which such trader relies in support of his returns, or to produce
such evidence as is specified in the notice. On the date specified in the notice, or
as soon as may be thereafter, the Collector shall, after considering all the evidences
which may be produced, assess the amount of cess due from the trader.
(4) If a trader fails to comply with the teems of any notice issued under
sub-section (3), the Collector shall assess, 10 the best of his judgement, the amount
of cess due from him.
15. Save as provided by section 19, no assessment made and no order passed Bar of certain
under this Act or the rules made thereunder by the Collector or any person proceedings.
appointed under section 10 to assist him, shall be called in question in any civil
court, and save as provided by sections 16 and 17. no appeal or application for
revision shall lie against any such assessment or the order.
16. (I) Any trader aggrieved by any order of the Collector, may file an appeal Appeal.
before such authority, within such time and in such manner, as may be prescribed.
(2) No appeal against an order of the assessment shall be entertained
by the said authority unless it is accompanied by satisfactory proof of the
payment of the cess with interest, if any, in respect of which the appeal has
been preferred:
Seizure of any
documents in
certain
circumstances
Provided that the said authority may, if it thinks fit, for reasons to be
recorded in writing, entertain an appeal against such order,-
(a) without payment of the cess or interest, if any, but on furnishing in
the prescribed manner, security for such amount of cess and interest, as it
may direct, or
Revision.
Extension of
period of
Limitation in
certain
cases.
Statement of
case to High
Court.
(b) on proof of payment of such smaller sum, with or without security in like
manner for such amount of ce ss and interest which remains unpaid as it may
direct.
(3) Subject to such rules of procedure as may be prescribed, the said
authority may pass such order on appeal as it may think just and proper.
(4) Every order passed in appeal under this section shall, subject to the
provisions of sections 17, 19 and 20 be final.
17. (1) Subject to such rules as may be prescribed, and for the reasons to be
recorded in writing, the Collector may, upon application or of his own motion,
revise any order passed under this Act or the rules made there under by a person
appointed under section 10 to assist him and subject thereto the Tribunal may.
upon application, revise any order passed by the Collector:
Provided that no application under this sub -section shall be entertained
if it is not made within a period of four months from the dale of the order :
Provided further that before rejecting any application for the revision of
any such order, the Collector or as the case may be, the Tribunal, shall record
reasons in writing for such rejection.
(2) Before any order is passed under this section which is likely to affect any
person adversely, such person shall be given a reasonable opportunity of being heard.
(3) Where an appeal lies under section 16 and no appeal has been filed,
no proceedings in revision under this section shall be entertained upon the
application of such person.
18. The prescribed authority may admit an appeal under section 16 and the
Collector and the Tribunal may admit an application under section 17 after the
expiry of period of limitation laid down in the said sections, if the appellant or,
as the case may be, the applicant, satisfies the prescribed authority, the Collector
or, as the case may be, the Tribunal, that he had sufficient causes for not preferring
the appeal, or making the application, within such period.
19. (1) Within ninety days from the date of passing of any order under
sub-section (3) of section 16 or sub-section (J) of section 17 affecting any liability
of any trader to pay cess, such trader or the Collector, may by application in
writing require the Tribunal to refer to the High Court any question of law arising
out of such order, and where the Tribunal agrees, it shall draw up a statement of
the case and refer it to the High Court.
(2) If, for reasons to be recorded in writing, the Tribunal refuses to make
such reference, the applicant may within thirty days of such refusal apply to the
High Court against such refusal. ' •
(3) If upon the receipt of an application under sub-section (2), the High
Court is not satisfied that such refusal was justified, it may require the Tribunal
to state a case and refer it to the High Court; and on receipt of such requisition,
the Tribunal shall state and refer the case to the High Court accordingly.
(4) If the High Court is not satisfied that the statements in a case referred
under this section are sufficient to enable it to determine the question raised
thereby, it may refer the case back to the Tribunal to make such additions thereto
or alternations therein as the High Court may direct in that behalf.
(5) The High Court upon hearing of any such case shall decide the question
of Saw raised thereby, and shall deliver its judgement thereon and shall send to
the Tribunal a copy of such judgement and the Tribunal shall dispose of the case
accordingly.
(6) The payment of the amount, if any, of the cess due in accordance with
the order of the Tribunal in respect of which an application has been made under
sub-section (I) shall not be stayed pending the disposal of such application or
any reference made in consequence thereof, but if such amount is reduced as a
result of such reference, the excess cess paid shall be refunded.
20. (]} The Collector may at any time within two years from the dale of any
order passed by him, either on his own motion or on an application made by any
person affected by such order rectify any mistake of fact apparent from the record:
Provided that no such rectification shall be made if it has the effect of
enhancing the cess or reducing the amount of refund, unless the Collector has
given notice in writing to such trader of his intention to do so and has allowed
such trader a reasonable opportunity of being heard.
(2) The provisions of sub-section (1) shall apply to the rectification of
mistake by the Tribunal or the prescribed authority under section 16 as they
apply to the rectification of a mistake by the Collector.
(3) Where any such rectification has the effect of reducing the amount of
cess, the Collector shall in the prescribed manner refund any due, to such trader.
(4) Where any such rectification has the effect of enhancing the amount
of cess or reducing the amount of refund, the Collector shall recover the amount
due from such trader in the manner provided in section 32.
CHAPTER VII
OFFENCES, PENALTIES AND PROCEDURE
21. Whoever contravenes the provisions of section 8 shall, on conviction,
be punished with fine which may extend to twenty thousand rupees and in the
case of a continuing contravention, with an additional fine which may extend to
one thousand rupees for each day during which such contravention continues
after conviction for the first such contravention.
22. If any trader liable under section 11 to keep accounts or to submit
statements, fails without sufficient cause to keep or submit the same in the manner
and at the period prescribed or keeps false accounts or submits false statements,
he shall, on conviction, be punished with fine which may extend to twenty
Rectification
of mistakes.
Penalty for
carrying on
business
without
registration .
Penalty for
failure to
keep accounts
or submit
statements.
8
Penalty for
failure to
comply with
requiremen ts
of section 12
or for
obstructing
officer in
discharging
his duties .
thousand rupees and in the case of a continuing failure, with an additional fine
which may extend to one thousand rupees for each day during which such failure
continues, after conviction for the first such failure.
23. Whoever-
(a) fails to comply with any requirement made to him under sub-
section
(J) of section 12, or
(b) produces false accounts, registers or documents, or knowingly
furnishes false information, or
.
(c) obstructs any officer making an inspection, search or seizure under
the provisions of this Act, or
(d) aids or abets any person in the commission of any act specified in
clause (a), (b) or (c) of this section,
shall, on conviction, be punished with fine which may extend to twenty thousand
rupees and in the case of a continuing contravention, with an additional fine
which may extend to one thousand rupees for each day during which such
contravention continues after conviction for the first such contravention.
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24. (1} Where an offence under this Act has been committed by a company, every
person who at the time the offence was committed, was in charge of, and was
responsible to the company for the conduct of the business of the company, as well as
company shall be deemed to be guilty of the offence and shall be liable to
be proceeded against and punished accordingly :
Provided that nothing contained in this sub-section shall render
any such person liable to any punishment provided in this Act if he proves that the
offence was committed without his knowledge or that he had exercised all due
diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub -section (I), where an
offence under this Act has been committed by a company and It is proved that the
offence has been committed with the consent or connivance of, or is attributable
to any neglect on the part of, any director, manager, secretary or other officer of
the company, such director, manager, secretary or other officer shall also be deemed
to be guilty of that offence and shall be liable to be proceeded against and punished
accordingly.
Explanation. For the purpose of this section —
.
(a) "company" means a body corporate and includes a firm or other
association of individuals; and
(h) "director" in relation to a firm means a partner in the firm.
25. No court shall take cognisance of any offence punishable under this Act
except with the previous sanction of the Collector.
26. (1) Any officer specially empowered by the State Government in this behalf may
enter and search, at any time any building, vessel, vehicle or place in which he has
reason to believe that motor spirit is kept for the purpose of sale contrary to the
provisions of this Act or any rules made there under.
(2) All searches under this section shall be made in accordance with the
provisions of the Code of Criminal Procedure, 1973.
27.(1) Every officer not below such rank as may be prescribed shall, within
the area for which he is appointed, have power to investigate all offences
punishable under this Act.
(2) Every such officer shall, in the conduct of such investigation, exercise ofthe powers
conferred by the Code of Criminal Procedure, 1973 upon an officer in-charge of
police station for the investigation of a cognisable offence.
.
Offences by
companies.
Power
of
entry
and
search.
Powers
of
investiga
tion
Cognisance
of offence
2 of 1974.
E
R
V
I
I
I
M
I
S
C
E
L
L
A
N
E
O
U
S
28. Subject28. Subject to the general or special orders of the State
Government, the Collector may delegate any of the powers conferred upon him by
or under this Act to any person appointed to assist him under section 10.
29. The Collector may, after due notice to the trader, by order in writing,
transfer any proceedings or class of proceedings under any provisions of this
Act or the rules made thereunder, from himself to any other officer and he may
likewise transfer any such proceedings (including proceeding already transferred
under this section) from one such officer 10 another officer or to himself.
30. The Collector, all officers and other employees appointed under this Act
shall be deemed to be public servants within the meaning of section 21 of the
XLV of 1860. Indian Penal Code.
31. No suit, prosecution or other legal proceedings shall lie against any officer
or employee appointed under this Act for anything, which is in good faith done
or intended to be done in pursuance of the provisions of this Act or the rules
made thereunder.
32. All sums payable as cess or interests (other than fines) under this Act
shall, if not paid within the prescribed period or, as the case may be, before such
date as the Collector may direct, be recoverable as an arrear of land revenue.
33. Nothing in this Act or the rules made thereunder, shall be deemed to
impose or authorise the imposition of a cess on any turnover of sales of motor
spirit where such sales takes place -
(a) outside the State of Gujarat,
(b) in the course of the import of such motor spirit into the territory of
India or the export of the goods out of such territory, or
(c) in the course of inter-State trade or commerce
Explanation. - For the purpose of this section, whether a sale takes place -
(i) outside the Suite of Gujarat, or
(ii) in the course of import of the goods into the territory of India or the export of
(he goods out of such territory, or
(Hi) in the course of inter-State trade or commerce
shall be determined in accordance with the principle specified in
sections 3,4 and 5 of the Central Sales Tax Act, 1956.
34. (1) The State Government may, by notification in the Official Gazette,
make rules for carrying out the purposes of this ACL
(2) In particular arid without prejudice to the generality of the foregoing
power, such rules may provide for all or any of the following matters,
namely : -
LXXIV of
1956.
Power to
make
rules.
(a) the stage at which, the rate at which and the manner in which, the
cess shall be levied and collected under section 3;
(b) the manner in which and conditions subject to which the Local
Authorities Fund shall be expended under section 4;
(c) the manner in which the cess shall be payable by trader under
sub-section (7) of section 5;
(d) the intervals at which, the authority to which, the form in which and the
manner in which the return shall be furnished under sub-section (2) of section 5;
(e) the conditions subject to which a trader shall be entitled to refund of
cess under section 7;
(/) the conditions subject to which the exemption from the provisions of
registration may be granted by the Collector under sub-section (!) of section 8;
(g) the form in which, period within which and the authority to which the
application for registration shall he made under sub-section (2) of section 8;
(h) the form in which certificate of registration shall be issued under
sub-section (3) of section 8;
(i) the conditions subject to which the Collector may suspend or cancel
registration under section 9;
(j) the form in which accounts shall be maintained by the trader under
section II;
"
(k) the form in which, the manner in which and the period for which
statements shall be submitted under section 11;
(I) terms and conditions subject to which the trader may be permitted to
submit a consolidated statement under the proviso to section 11;
(m) the manner in which a notice shall be served by the Collector on a
trader under sub-section (5) of section 14;
(n) the manner in which, the time within which and the authority to which
an appeal may be preferred under sub-section (1) of section 16;
(o) the manner in which the security shall be furnished under the proviso
to sub-section (2) of section 16;
•
(p) the rules of procedure subject to which the authority may pass an
order on appeal under sub-section (3) of section 16;
(q) the rules subject to which the Collector or the Tribunal may revise an
order under sub-section (7) of section 17;
(r) the manner in which the Collector may refund the amount of cess
under sub-section (3) of section 20;
(s) the rank of officer who shall have power to investigate offences under
sub-section (7) of section 27.
(3) Any rule made under this section may provide that any person
contravening any such rule shall be liable, on conviction, to be punished with a.
fine which may extend to one thousand rupees and in the case of a continuing
contravention with an additional fine which may extend to fifty rupees for each
day during which such contravention continues after conviction for the first such
contravention.
(4) The power to make rules conferred by this section shall be subject to
the condition of the rules being made after previous publication :
Provided that if the State Government is satisfied that circumstances exist
which render it necessary to take immediate action, it may dispense with the
previous publication of any rule to be made under this section.
(5) All rules made under this Act shall be laid for not less than thirty days
before the State Legislature as soon as they are made and shall be subject to
rescission by the State Legislature or to such modification as the State Legislature
may make during the session in which they are so laid or the session immediately
following.
(6) Any rescission or modification so made by the Slate Legislature shall
be published in the Official Gazette and shall thereupon take effect.
Guj. Ord. 7 of 35. (1) The Gujarat Motor Spirit Cess Ordinance, 2001 is hereby repealed. Repeal and
2001. savings.
(2) Notwithstanding such repeal, anything done or any action taken under
the said Ordinance shall be deemed to have been done or taken under this Act.
-
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