The JAMMU AND KASHMIR MOTOR SPIRIT AND DIESEL OIL(TAXATION OF SALES) ACT, 2005 (1948 A.D.)

MOTOR SPIRIT AND DIESEL
OIL(TAXATION OF SALES)
ACT, 2005
(Act No. V of  Svt. 2005)
THE JAMMU AND KASHMIR MOTOR SPIRIT AND DIESEL
OIL(TAXATION OF SALES) ACT, 2005 (1948 A.D.)
Act NO. V of  2005
CONTENTS
Preamble.
Section.
PRELIMINARY
1. Short title and commencement.
2. Definitions.
T axation
3. Levy of Tax.
4. Recovery of taxes as arrears of land revenue.
5. Power to determine certain questions.
Licensing of Retail Dealers
6. No person to trade without a licence.
7. Grant of licence.
8. Suspension or cancellation and restoration of a licence.
Penalties and Powers to Prevent Evasion
9. Imposition of penalty.
9-A. Interest on delay in payment of tax etc.
10. Punishment for unauthorised sale.
10-A. Power to set up check posts and road barriers.
11. Issue of warrants.
12. Searches how made.
13. Procedure for arrest without warrant.
336 MOTOR SPIRIT AND DIESEL OIL (TAXA TION OF SALES) ACT
Section.
14. Duty of certain persons to report offences, etc.
15. Power of investigation.
16. Offences to be bailable.
17. Punishment for vexatious search or arrest.
18. Punishment for vexatious delay.
19. Power to compound offences.
Miscellaneous
20. Powers.
21. Protection of persons action in good faith and limitation of suits and pros-
ecution.
22. Appeals.
22-A. Appeals to the Tribunal
22-B. Revision.
22-C. Application of Limitation Act.
22-D. Powers of the Tribunal.
22-E. Statement of case to the High Court.
23. Review.
23-A. Refunds.
23-B. Powers of Commissioner.
24. Power to make rules.
25. Delegation of powers by Government.
–––––––
MOTOR SPIRIT AND DIESEL OIL (TAXA TION OF SALES) ACT 337
THE JAMMU AND KASHMIR 1[MOTOR SPIRITAND DIESEL OIL](TAXATION OF SALES) ACT, 2005(1948 A.D.)
(Act No. V of  Samvat 2005)
[Promulgated by His Highness the Maharaja Bahadur under section 5 of
the Jammu and Kashmir Constitution Act, 1996 and published in Government
Gazette dated 6th Katik, 2005.]
An Act to provide for the levy of  2[tax and cess] on the retail sale of
1[Motor Spirit and Diesel Oil.]
Preamble.—Whereas, it is expedient to provide for the levy of 2[tax and
cess] on the retail sale of 1[motor spirit and diesel oil] ; Now, therefore, in
exercise of the powers reserved under section 5 of the Jammu and Kashmir
Constitution Act, 1996, His Highness is pleased to enact as fallows :––
PRELIMINARY
1. Short title and commencement.—(1) This Act may be called the Jammu
and Kashmir 1[Motor Spirit and Diesel Oil] (Taxation of Sales) Act, 2005.
3[(2) It shall come into force on such date as the Government may by
notification appoint].
2. Definitions.––In this Act unless there be anything repugnant in the
context,—
4[(a) “Chief Petrol Taxation Officer” means an officer appointed by the
Government under this Act ;
(a-1) “Commissioner” means a person appointed by the Government to
discharge the functions of Commissioner under this Act ;
(a-2) “Dealer” means any person including a Department of Government
who on commission or otherwise, sells any motor spirit or diesel oil to a con-
sumer or to any other person or keeps stock of motor spirit or diesel oil for sale
to a consumer or to any other person.]
1. Substituted by act XXIV of 1962 for “Motor Spirit”.
2. Substituted for “a tax” by Act XIII of 2003, s. 2.
3. Enforced from Ist Jeth, 2006 under C. O. No. 362-C of 1949 (G . G .  6th Jeth, 2006.)
4. Clauses (a), (a-1) and (a-2) inserted by Act XVII of 1978, s. 2.
338 MOTOR SPIRIT AND DIESEL OIL (TAXA TION OF SALES) ACT
1[(a-3) “diesel oil” means any inflammable hydrocarbon (including any
mixture of hydrocarbons or any liquid containing hydrocarbons) with a flash-
point above 130oF but not exceeding 170oF which is ordinarily used for provid-
ing reasonable efficient motive-power for any form of motor vehicle or for
internal combustion engines ;
(aa) “magistrate” means any magistrate exercising powers not less than
those of a magistrate of the second class ;]
2[(b) “motor spirit or diesel oil”] means any inflammable hydrocarbon
(including any mixture of hydrocarbons or any liquid containing hydrocarbon)
which is ordinarily used for providing reasonably efficient motive powers and
it shall also include Aviation Turbine Fuel (ATF) and Natural Gas ;]
3[ x  x  x  x]
(c) “penalty” means a penalty imposed under section 9 of this  Act ;
(d) “Petrol Taxation Officer” means such officer not below the rank of
a gazetted officer, as may be appointed by the Government to discharge the
duties of a Petrol Taxation Officer under this Act with reference to any
particular areas ;
(e) “prescribed” means prescribed by rules under this Act ;
4[x  x  x  x]
5[(h) “sale” means a transfer of motor spirit or diesel oil for cash or
deferred payment or any other valuable consideration and includes its
consumption by the dealer for his own use] ;
6[(hh) “Tribunal” means the Appellate Tribunal constituted under
7{section 12-A of the Jammu and Kashmir General Sales Tax Act, 1962}] ;
1. Existing clause (a) as substituted by Act XXIV of 1962 re-numbered as clause (a-3) by Act
XVII of 1978, s. 2.
2. Clause (b) substituted by Act XV of 2018, s. 2. (For earlier amendment see Act XXIV of 1962
and Act V of Samvat 2006).
3. Explanation omitted by Act XXIV of 1962.
4. Clauses (f) and (g) omitted by Act XVII of 1978.
5. Clause (h) substituted ibid.
6. Clause (hh) inserted by Act VII of 2001, s. 31.
7. Genral Sales Tax Act stands repealed by Goods and Services Tax Act, 2017 and now the
appropriate section would be section 109 of Act No. V of 2017.
MOTOR SPIRIT AND DIESEL OIL (TAXA TION OF SALES) ACT 339
(i) “vehicle” includes any carriage or conveyance used on land or in
water or air.
1[3. Levy of tax.—Subject to the Provisions of this Act, every dealer shall
pay to the Government a tax on the sale of motor spirit and diesel oil at such
rate or rates not exceeding 2[forty percent], advalorem as may be specified by
the Government by notification in the *[Government Gazette] :
Provided that tax shall be chargeable on the first sale after import of
motor spirit and diesel oil into the **[State] :]
3[Provided further that in respect of the sale of motor spirit and diesel oil
lying  in stock with the retail dealers on the date of enforcement of the Jammu
and Kashmir Motor Spirit and Diesel Oil (Taxation of Sales) (Amendment) Act,
1978 (Act XVII of 1978), the tax shall be chargeable from such retail dealers on
the sale of such stocks of motor spirit and diesel oil] :
4[Provided further that the first sale in respect of the dealers registered
under the name and style of M/s Indian Oil Corporation Ltd., M/s Bharat
Petroleum Corporation Ltd., M/s Hindustan Petroleum Corporation Ltd. and
M/s Indo Burma Petroleum Co. Ltd., who sell Motor Spirit and Diesel Oil shall
be the sale by these dealers to a dealer other than the aforesaid dealers inter se
for the first time within the **[State].]
5[3-A. Levy of cess.––(1) Every dealer liable to pay tax under section 3
shall also be liable to pay a cess on the volume of 6[Motor Spirit and Diesel Oil
other than Aviation Turbine Fuel (ATF) and Natural Gas] sold within the 7[Union
territory of Jammu and Kashmir] at a rate not exceeding Rs. 5 per litre, and
subject to such conditions, as the Government may by notification in the
8[Official Gazette] specify from time to time.
(2) The provisions of this Act in regard to assessment, payment and
recovery of tax and all other matters in cluding liability to pay interest con-
nected therewith shall apply mutatis mutandis to the assessment, payment,
recovery of such cess as if it were a tax leviable under section 3 of this Act.]
1. Section 3 substituted by Act XVII of 1978, s. 3.
2. Substituted for “twelve percent” by Act VII of 2001, s. 32, w. e. f. 27th January, 2000.
* Now Official Gazette.
* * Now Union territory of Jammu and Kashmir.
3. Proviso added by Act XVII of 1978, s. 3.
4. Proviso added by Act VI of 1989, s. 2.
5. Section 3-A inserted by Act XIII of 2003, s. 3.
6. Substituted for “Motor Spirit and Diesel Oil” by Act XV of 2018, s. 3.
7. Substituted by S.O. 1229(E) dated 31.03.2020 for “State”.
8. Substituted ibid for “Government Gazette”.
340 MOTOR SPIRIT AND DIESEL OIL (TAXA TION OF SALES) ACT
1[3-B. Omitted].
4. Recovery of taxes as arrears of land revenue.––When the payment of
any tax or penalty under this Act falls due the amount may be recovered as if it
were an arrears of land revenue.
5. Power to determine certain questions. ––(1) Any question as to whether
a tax or penalty is recoverable under this Act, the person from whom it is due
and the amount so recoverable shall be determined by the Petrol Taxation
Officer for the area where the sale takes place.
(2) No such order shall be made final until an opportunity has been given
to any person concerned to appear in person or by duly authorised agent
before the Petrol Taxation Officer ; but once the order has been made final a
certificate given under the hand of the Petrol Taxation Officer, shall, subject to
the provisions of this Act with regard to appeal, review and revision, be final
and conclusive proof both as to the amount of the tax or penalty which is due
and as to the person from whom it is due.
LICENSING OF RETAIL DEALERS
6. No person to trade without a licence.—After the expiry of a period of
two months from the commencement of this Act, no person shall carry on
business as 2[    ] dealer unless he is in possession of a valid licence.
7. Grant of licence.—Except as provided  hereunder, a licence shall be
granted to any person applying therefor to the Petrol Taxation Officer on
payment of a fee of not more than 3[one hundred] rupees, if any, as may be
prescribed.
(2) Every such licence shall be valid without renewal only up to end of
4[March] following the date on which it is granted, but may be renewed
annually 5[on payment of rupees fifty.]
(3) The grant or renewal of licence may be refused if any previous licence
of the applicant has been cancelled or if the tax payable by him or the amount
of penalty imposed, if any, is found due from him on the date of expiry of the
licence or if the Petrol Taxation Officer is satisfied that the application has
been made only for the purpose of enabling any person to carry on business
as a 2[    ] dealer without a licence.
1. Section 3-B originally inserted by Act IV of 2004, omitted by Act VI of 2009, s. 15
2. Deleted by Act XVII of 1978, s. 4.
3. Substituted by Act XII of 1960 for “five”
4. Substituted ibid for “Chet”.
5. Inserted ibid.
MOTOR SPIRIT AND DIESEL OIL (TAXA TION OF SALES) ACT 341
(4) No licence under this Act shall be granted to any person who
does not hold  a licence of the storage of dangerous petroleum under the
Petroleum Act, 1[1934] and if any such licence granted under that Act is
cancelled, suspended or is not renewed, any licence granted under this
Act to the holder thereof shall be deemed to be cancelled, suspended or
not renewed, as the case may be.
(5) If an application for the renewal of a licence under this Act is made
without such time before its expiry as may be prescribed by Government, the
holder of the licence shall be deemed to be in possession of a valid licence
until the licence is renewed or until he is informed that the renewal of the
licence has been refused :
2[Provided that the holder of  a licence has paid into the Government
Treasury in full the amount of tax collected by him on the sales effected before
the expiry of the date of licence.]
8. Suspension or cancellation and restoration of a licence. ––(1) The
Petrol Taxation Officer may, after giving the licensee an opportunity to be
heard, suspend or cancel a licence for a breach of any of the conditions which
may be prescribed as the conditions subject to which a licence is granted.
(2) A licensee shall not be entitled to any compensation for the suspension
or cancellation of his licence under the foregoing sub-section.
(3) A licence cancelled or suspended under this section may be restored
by the Petrol Taxation Officer on payment of such fee as may be prescribed.
PENALTIES AND POWERS TO PREVENT EVASION
3[9. Penalty.––If any person,—
(a) contravenes any of the provisions of the Act and the rules made
thereunder, or
(b) fails to pay the tax due within the time allowed, or
(c) fails to furnish the returns within the time allowed, or
(d) furnishes in-accurate particulars in the return, or
1. Substituted by Act XVII of 1978, s. 5.
2. Proviso added by Act XII of 1960.
3. Section 9 substituted by Act XVII of 1978, s. 6.
342 MOTOR SPIRIT AND DIESEL OIL (TAXA TION OF SALES) ACT
(e) prevents or obstructs inspection, search or seizure by an officer
authorised under this Act,
the Petrol Taxation Officer shall in addition to the amount of tax payable by him
impose by way of penalty—
(i) in respect of clause (a), a sum not exceeding the amount of tax
payable but not less than 50% of such tax ;
(ii) in respect of clause (b), a sum not exceeding the amount of tax
payable but not less than 20% of such tax ;
(iii) in respect of clause (c), a sum not exceeding 25% of the amount of
tax payable but not less than 10% of the such amount ;
(iv) in respect of clause (d), a sum not exceeding double the amount of
tax sought to be evaded but not less than 50% thereof ; and
(v) in respect of clause (e), a sum not exceeding Rs. 500 but not less
than Rs. 100 :
Provided that no such penalty shall be imposed unless the person liable
to penalty is given an opportunity of being heard :
Provided further that if in respect of a default specified in clause (b) or clause
(c) the person in default proves to the satisfaction of Petrol Taxation Officer that
he was prevented by a sufficient cause from paying the tax or furnishing the return
in time, the Petrol Taxation Officer may not impose the penalty :
Provided also that no person shall be prosecuted under section 10
in respect to an offence for which a penalty has been imposed under
this section.
Explanation.—For the purpose of this section the tax sought to be evaded
means the excess of the tax assessed over the tax payable on
the basis of return filed.]
1[9-A. Interest on delay in payment of tax etc.—If any amount of tax,
penalty or any other sum payable under this Act, except the amount payable
under this section, is not paid within the time prescribed or specified in the
notice of demand, as the case may be, the person who is in default shall in
1. Section 9-A inserted by Act XIV of 1974 and subsequently substituted by Act XIX of 1981.
MOTOR SPIRIT AND DIESEL OIL (TAXA TION OF SALES) ACT 343
addition to such tax, penalty or any other sum pay interest at 2% per month for
each month of default.
Explanation.—(1) Interest shall be charged for full month and not for a part
thereof.
(2)  If tax or any amount payable under the Act is paid by the
cheques or draft, the date of encashment of the cheque or
the draft shall be treated to be the date of deposit of tax or
such other sum.]
10. Punishment for unauthorised sale. —1[(1) Whoever contravenes the
provisions of section 6 shall be punishable with fine which may extend to one
thousand rupees or to a sum double the amount of the tax due in respect of the
sale of any 2[motor spirit or diesel oil] conducted by or on behalf of such
person, whichever is greater.
(2) No court shall take congnizance of an offence under this section
except on a complaint in writing by the Chief Petrol Taxation Officer having
urisdiction over the area.]
3[10-A. Power to set up check posts and road barriers. ––(1) For
purposes of preventing evasion in the payment of tax under this Act or the
rules made thereunder, the Government may by notification in the *[Govern-
ment Gazette] setup check-posts and road barriers at such places and in such
manner as it may specify in the notification.
(2) Every person transporting Motor Spirit or Diesel Oil whether by means
of a vehicle or otherwise shall—
(a) stop at the check-post or the road barriers, as the case may be, set
up under sub-section (1) ;
(b) produce, if so demanded by an officer authorised by the Government
in this behalf, a bill of lading in triplicate in such form as may be
prescribed ;
(c) allow such officer to inspect the motor spirit or diesel oil, as the
case may be.
1. Section 10 renumbered as sub-section (1) and sub-section (2) inserted by Act XVII of 1978, s. 8.
2. Substituted by Act XXIV of 1962.
3. Section 10-A inserted by Act XXVIII of 1968.
* Now Official Gazette.
344 MOTOR SPIRIT AND DIESEL OIL (TAXA TION OF SALES) ACT
(3) Any person contravening the provisions of sub-section (2) shall be
punishable with fine which may extend to one thousand rupees.]
11. Issue of warrants. —(1) A Magistrate may issue a warrant—
(a) for the arrest of any person whom he has reason to believe to have
committed an offence punishable under this Act, or
(b) for the search, whether by day or by night, of any building, vessel,
vehicle or place in which he has reason to believe that any 1[motor
spirit or diesel oil] is sold or is kept for sale.
(2) All warrants issued under this section shall be executed in accordance
with the provisions of the 2[Code of Criminal Procedure, 1973 (2 of 1974)], by a
Police Officer or if the officer issuing the warrant deems fit, by any other person.
12. Searches how made.—All searches made under the provisions of this
Act shall be made in accordance with the provisions of the 2[Code of Criminal
Procedure, 1973 (2 of 1974)].
13. Procedure for arrest without warrant.— The provisions of section
61 of the 2[Code of Criminal Procedure, 1973 (2 of 1974)], shall apply to all
arrests without warrant made under the provisions of this Act.
14. Duty of certain persons to report offences,etc.— Every person
employed by Government, by any local body or by the Court of Wards, every
village headman, village accountant and village watchman shall give immediate
information to the 3[Deputy Commissioner] of the commission of any offence
or of the intention of preparation to commit any offence punishable under this
Act which may come to his knowledge.
15. Power of investigation.—4[(1) An officer not below the rank of Petrol
Taxation Officer shall have power to investigate all offences punishable under
this Act within the area for which he is appointed.]
(2) Every such officer shall, in the conduct of such investigation exercise
the powers conferred by the 2[Code of Criminal Procedure, 1973 (2 of 1974)],
upon an officer-in-charge of a Police Station for the investigation of a cogni-
zable offence.
1. Substituted by Act XXIV of 1962.
2. Substituted by S.O. 1229(E) dated 31.03.2020 for “Code of Criminal Procedure, 1989”.
3. Substituted by Act III of Samvat 2008 for “Wazir Wazarat”.
4. Substituted by Act XVII of 1978, s. 9.
MOTOR SPIRIT AND DIESEL OIL (TAXA TION OF SALES) ACT 345
(3) Every such officer may enter at any reasonable time the premises of any
1[    ] dealer and with or without notice examine and take copies or extracts from
any account books or registers for the purpose of testing the accuracy of any
prescribed returns or of informing himself as to any particulars regarding which
information is required for the purposes of this Act or of any rules thereunder.
(4) Every such officer may detain and arrest any person whom he has
reason to believe to be guilty of any offence punishable under this Act.
16. Offences to be bailable.— All offences punishable under this Act
shall be bailable.
17. Punishment for vexatious search or arrest.— Any officer or person
exercising powers under this Act who,—
(a) without reasonable ground of suspicion, enters or searches, or
causes to be entered or searched any building, vessel, vehicle or
place ; or
(b) vexatiously and unnecessarily detains, searches or arrests any
person ;
shall on conviction be punishable with fine which may extend to five
hundred rupees.
18. Punishment for vexatious delay.— Any officer or person exercising
powers under this Act who vexatiously and unnecessarily delays forwarding
to a Magistrate any person arrested under this Act and not released by him on
bail shall, on conviction, be punishable with fine which may extend to two
hundred rupees.
19. Power to compound offences. —(1) The 2[Commissioner] may
accept from any person who has committed an offence punishable under
this Act, by way of composition of such offence, a sum of money not
exceeding one thousand rupees or a sum double the amount of the tax
payable under section 3 in respect of any sale conducted by such person,
whichever is greater.
(2) On the payment of such sum of money the accused person, if in
custody, shall be discharged, and no further proceedings shall be taken  against
such person in respect of such offence.
1. Deleted by Act XVII of 1978.
2. Substituted by Act XVII of 1978, s. 10.
346 MOTOR SPIRIT AND DIESEL OIL (TAXA TION OF SALES) ACT
* Now Union territory of Jammu and Kashmir.
1. Section 22 substituted by Act VII of 2001, s. 33.
MISCELLANEOUS
20. Powers.— The powers of Government to appoint any person or to
invest any person with any authority prescribed by the Act may be exercised
by the Minister-in-Charge, subject to the orders of Government.
21. Protection of persons acting in good faith and limitation of suits and
prosecution. —(1) Any civil or criminal proceedings instituted against any person
in respect of any act done or purporting to be done in the exercise of any powers
or the execution of duty under this Act shall be dismissed unless the court is
satisfied that the act complained of was not done in good faith.
(2) No suit shall be instituted against the *[State] and no prosecution or
suit shall be instituted against any person in respect of anything done or
intended to be done, under this Act, unless the suit or prosecution has been
instituted within six months from the date of the act complained of.
1[22. Appeals. —(1) A dealer or any other assessee objecting to an order
passed by the Petrol Taxation Officer may within 30 days from the date on
which he is served with a notice of demand appeal to such Appellate Authority
as the Government may authorise in this behalf :
Provided that such Authority may admit an appeal after the said period
of 30 days if it is satisfied that the appellant had sufficient cause for not
preferring the appeal within the said period :
Provided further that no appeal shall be entertained by such Authority
unless it is satisfied that––
(a) where the return or returns for the month or year has/have been
filed, the amount of tax due under this Act on the turnover of sales
admitted by the appellant in the return or returns filed by him or at
any stage in any proceedings under this Act, whichever is higher,
has been paid ; or
(b) where some of the returns for the period under appeal have not
been filed or no return has been filed for the period under appeal,
the amount of tax due under this Act, admitted by the appellant in
the returns, if any filed by him or at any stage in any proceedings
under this Act, or 50% of the amount of tax assessed, whichever is
higher, has been paid ; or
MOTOR SPIRIT AND DIESEL OIL (TAXA TION OF SALES) ACT 347
(c) in case the appeal is against the imposition of penalty, 50% of the
penalty levied has been paid :
Provided that the Appellate Authority may for reasons to be recorded in
writing stay the recovery of the disputed amount of tax and penalty. However,
the stay will not cover the amount of tax or penalty payable under clauses (a),
(b) and (c).
Exception.––Nothing in this section shall apply to the cases where the
Commissioner makes an order extending the date of payment
under clause (c) of section 23-B.]
1[22-A. Appeals to the Tribunal.––(1) Notwithstanding anything con-
tained in any other law for the time being in force, any person aggrieved by an
order passed under section 22 may within three months from the date of such
order prefer an appeal to the Tribunal.
(2) The Tribunal may, after calling for and examining the relevant records
and giving the parties reasonable opportunity of being heard,––
(a) confirm, cancel such order or pass any other order which it may
deem fit, or
(b) set aside such order with the directions to pass fresh order after
such enquiry as it may direct.
(3) During the pendency of appeal the Tribunal may for reasons to be
recorded in writing stay the recovery of the disputed amount of tax and penalty.
22-B. Revision.––(1) The Commissioner may, of his own motion call for
the records of any proceedings which are pending before the Petrol Taxation
Officer or have been disposed of by the Appellate Authority for the purpose of
satisfying himself as to the correctness, legality or propriety of such proceed-
ings or any order made therein and may pass such order in relation thereto as
he may think fit.
(2) No order shall be made under this section which adversely affects the
rights of a dealer without giving him a reasonable opportunity of being heard.
(3) All cases or proceedings on applications, made by the assessees or
dealers under section 22 and pending on the date of commencement of the Jammu
1. Sections 22-A, 22-B, 22-C. 22-D and 22-E inserted by Act VII of 2001, s. 34.
348 MOTOR SPIRIT AND DIESEL OIL (TAXA TION OF SALES) ACT
and Kashmir Taxation Laws (Amendment) Act, 2001 before the Commissioner shall
stand transferred to the Tribunal for disposal as if these applications were made
before the Tribunal.
22-C. Application of Limitation Act.–– The provisions of section 5 and
section 12 of 1[the Limitation Act, 1963 (36 of 1963)], shall apply to appeals,
revisions filed under this Act before Appellate Authority, Reviewing Author-
ity or the Tribunal.
22-D. Powers of the Tribunal.––In discharging its functions under this
Act, the Tribunal shall have the same powers as are exercisable by it under the
Jammu and Kashmir General Sales Tax Act, 1962.
22-E. Statement of case to the High Court.–– The provisions of section
12-D of the Jammu and Kashmir General Sales Tax Act, 1962 shall mutatis
mutandis apply for referring any question of law under this Act to the High
Court.]
23. Review.— Any order made under this Act, other than an order made
by a Criminal Court, may be reviewed by the officer making it or his successor,
but not to the disadvantage of the person against whom it is made, unless he
has done anything to mislead the officer passing the order.
2[23-A. Refunds.— The Petrol Taxation Officer shall, in the prescribed
manner, refund to dealer any amount of tax, penalty or any other amount paid
in excess of the amount due from him under this Act :
Provided that no refund shall be made unless the claim for refund is made
within twenty-four months from the date of the order giving rise to the refund.
23-B. Powers of Commissioner.— The Commissioner shall superintend
the administration and the collection of tax leviable under this Act and shall
also have the following powers:—
(a) issuing instructions not inconsistent with the provisions of this
Act or the rules made thereunder as he may consider necessary
from time to time ;
(b) transfer a case from a Petrol Taxation Officer to any other officer not
below the rank of Petrol Taxation Officer at any stage of proceedings ;
1. Substituted by S.O. 1229(E) dated 31.03.2020 for “the Limitation Act, Samvat 1995”.
2. Section 23-A inserted by Act XVII of 1978, s. 12.
MOTOR SPIRIT AND DIESEL OIL (TAXA TION OF SALES) ACT 349
(c) extend the time limit for payment of tax under this Act on an appli-
cation by a dealer subject to such conditions as he may consider
necessary without prejudice to the provisions contained in section
9-A of  this Act.]
24. Power to make rules.— (1) The Government may make rules to carry
out all or any of the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing
power, the Government may make rules for the purpose of —
(a) the recovery of the tax leviable under section 3 including the fixing
of the time when the tax is to be paid ;
(b) the fixing of  licence fees ;
(c) imposing on 1[     ] dealers the duty of furnishing returns and of
keeping records and registers of stocks and daily sales prescribing
forms for such returns, and register of stocks and daily sales and
the particulars to be contained therein, respectively, and the
manner in which the same are to be verified and all such other
conditions thereof  as may be necessary and prescribing a period
within which such returns must be submitted ;
(d) prescribing the localities in which 2[motor spirit or diesel oil] may
be sold, the assessment of tax and the issue of notices requiring
payment and for the recovery of unpaid tax ;
(e) providing for or restricting the assignment or transfer of licences
and the manner in which licences granted to firms are to operate
during the period of or on the dissolution of, a partnership ;
(f) prescribing the arrangements to be made when a licensee dies or
becomes subject to a legal disability, the period during which, and
the persons by whom, the business of such a licensee may be
carried on without a licence ;
(g) requiring the production of licences on demand ; and
(h) prescribing the period (which shall not be less than one month
from the date of the order appealed against) within which an appeal
1. Deleted by Act XVII of 1978, s. 13.
2. Substituted by Act XXIV of 1962 for “motor Spirit”.
350 MOTOR SPIRIT AND DIESEL OIL (TAXA TION OF SALES) ACT
under section 22 of this Act may be presented ; and prescribing the
manner in which such appeal shall be presented.
(3) In making any rule the Government may provide that a breach thereof
shall be punishable with fine which may extend to one hundred rupees, and
where the breach is a continuing one, with further fine which may extend to
twenty rupees for every day after the first day during which the breach has
continued.
(4) The power to make rules conferred by this section shall, except on the
first occasion of the exercise thereof, be subject to the condition that rules
shall be made after previous publication.
25. Delegation of powers by Government.— The Government may, by
a general or special order, empower any person to perform any functions
exercisable by Government under this Act, subject to such conditions as
may be prescribed by Government in that behalf.
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