The Meghalaya (Mobile Phone Connection ) Cess, Act, 2002 (Act No.5 of 2002)

The 8th May, 2002 
No. LL(B) 5/2002/24- The Meghalaya (Mobile Phone Connection ) Cess, Act, 2002 (Act 
No.5 of 2002)  is hereby published for general information. 
MEGHALAYA ACT NO. 5 OF 2002 
            (As passed by the Meghalaya Legislative Assembly) 
Received the assent of the Governor on 7th May, 2002 
 (Published in the Gazette of Meghalaya, Extra-ordinary issue, dated 8th May, 2002) 
THE MEGHALAYA (MOBILE PHONE CONNECTION) CESS ACT, 2002. 
An 
Act 
To provide for levy of Cess on Mobile Phone Connection 
Be it enacted by the Legislature of the State of Meghalaya in the Fifty-third Year of 
the Republic of India as follows:- 
Short title, extend and 1 (1)  This A ct m ay b e c alled t he Meghalaya ( Mobile P hone 
commencement   Connection) Cess Act, 2002 
  (2)  It extends to the whole of the State of Meghalaya.  
  (3)  It s hall be  deemed t o have c ome into f orce o n a nd f rom 
  18 th January, 2002 
   
Definition  2 In this Act, unless the context otherwise requires:- 
(a) “Act” m eans t he Meghalaya (Mobile P hone C onnection) 
Cess Act,2002; 
(b) “Authorised O fficer” m eans t he o fficer co mpetent t o 
collect the Cess an d ex ercise t he p ower an d f unctions a s 
referred to in section 5 of this Act; 
(c) “Business” includes the activity of providing mobile phone 
connection and any other service in connection, incidental 
or ancillary to activity for monetary consideration; 
(d) “Cess” m eans o ne t ime p ayment o f t ax f or m obile p hone 
connection provided to customer; 
(e) “Magistrate” means Magistrate of the First class as defined 
under the Code of Criminal Procedure, 1973 
(f) “Operator” include f irm/company i ssuing m obile pho ne 
connection including a  f irm or  c ompany of  s ociety or  
association who owns the operation and also a person who 
for t he t ime be ing i s i n c harge of  t he management o f t he 
operation and registered under Section 6 of this Act; 
 
  (g)  “place o f b usiness” i nclude an  o ffice, o r an y other p lace 
  which a c ompany us es f or t he pur pose of  hi s business o r 
  where he keeps his books of accounts; 
  (h)  “prescribed” means rules made under this Act; 
  (i) “State Government” means the Government of the State of 
  Meghalaya.  
   
Levy and collection 3 Subject to the provisions of this Act there shall be levied and 
of Cess  collected a one time Cess at the rate of rupees five hundred per 
  mobile phone connection including existing connection at the 
  commencement of this Act.  
   
Liability of operator 4 (1)  The cess leviable u nder t his A ct sh all b e p aid to 
to pay the tax  Government by a operator. 
  (2)  If a person other than the operator is for the time being in -
  charge of the operation then such person shall jointly and 
  severally be liable to pay the Cess. 
   
Exercise of powers 5 The authorities competent to recover and enforce payment of 
and authorities   Cess hear appeals and exercise powers and functions incidental 
  thereto u nder t he Meg halaya S ales t ax ( Assam Act X VII o f 
  1947 as adapted by Meghalaya) and rules framed there under 
  shall, w ithin th e lo cal lim its o f their ju risdiction b e th e 
  authorities competent t o e xercise t he c orresponding pow ers 
  and functions under this Act and the rules so prescribed.  
   
Registration  6 (1)  No operator who is liable to pay Cess under section 3 shall 
run t he b usiness u nless h e p ossess a v alid certificate o f 
registration as provided under this Act; 
Provided that such operator who, at the commencement of 
this Act, is running the business may continue to do so but 
shall apply to the Authorised Officer for registration within 
thirty days there from. 
(2) Every o perator w ho is required t o possess a c ertificate o f 
registration s hall a pply in  th e p rescribed f orm to  th e 
Authorised Officer w ithin th irty d ays f rom th e d ate o n 
which he first become liable to pay the Cess. 
(3) If the Authorised Officer after such enquiry as he deems fit 
is satisfied that an application for registration is in order he 
shall re gister th e a pplicant a nd is sue h im a  c ertificate o f 
registration in the prescribed form. 
(4) The A uthorised O fficer m ay, a fter c onsidering the 
information furnished or received under any provisions of 
this A ct, a mend, f rom tim e to  tim e th e c ertificate o f 
registration. 
 
 
  (5)  Where a r egistered o perator d iscontinue, transfers o r 
  otherwise disposes of the business applies in the prescribed 
  form t o t he asse ssing o fficer f or can cellation o f t he 
  registration, t he l atter shall, after such en quiry as m ay 
  necessary, cancel the certificate of registration with effect 
  from such date as he may fix in accordance with the rules. 
  (6)  Where t he A uthorised O fficer i s sat isfied t hat an y 
  registered operator h as di scontinued, t ransferred or  
  otherwise disposed of the business and has failed to apply 
  under sub-section (5) for cancellation of the registration the 
  Authorised O fficer m ay, a fter g iving th e o perator a  
  reasonable oppor tunity of  be ing he ard, cancel t he 
  certificate of registration with effect from such date as he 
  may fix a nd t he s aid a ctivity shall b e di scontinued 
  transferred or otherwise disposed of from that date: 
        Provided that the cancellation of a certificate of registration 
  shall n ot affect the liability o f th e operator to  pay th e C ess, 
  including a ny pe nalty, due f or a ny pe riod up to t he da te of 
  cancellation w hether s uch C ess i ncluding a ny pe nalty is 
  recovered before or after the date of cancellation. 
   
Registration 7 Save as o therwise p rovided i n sect ion 9 , cer tificate o f 
Certificate not  registration shall b e p ersonal to  th e o perator to w hom it i s 
transferrable.   granted and shall not be transferable.  
   
Information to be 8 (1)  If an operator liable to pay Cess under the Act- 
furnished regarding  (a) Sells or otherwise disposes of his business or any parts 
changes in business  thereof or makes any other changes in the ownership of 
etc.   the business or, 
  (b)  Discontinues his business or changes the name, nature 
  or place thereof or opens a new place of business, or  
  (c) Enters into a partnership of association in regard to his 
  business, he shall within the prescribed time inform the 
  Authorised Officer of the change.  
  (2)  Where an operator dies, the executor, administration other 
  legal r epresentative o r where an y s uch o perator i s a  f irm 
  and there is a change in the constitution of the firm or the 
  firm i s di ssolved e very pe rson w ho w as a  pa rtner thereof 
  shall, in l ike m anner i nform t he A uthorised Officer, of  
  such death or, as the case may be, change or dissolution of 
  the firm. 
   
Certificate of 9 Where a registered operator- 
registration to (a) Effect any change in the name of his business; or  
continue in certain (b) Is a  f irm, a nd t here i s a c hange in t he c onstitution of  t he 
circumstances firm without dissolving it; or 
(c) Is a  t rustee of a t rust, and t here is change in t he t rustees 
thereof; 
  It shall not be necessary for the operator or the firm with the 
  changed co nstitution o r t he n ew t rustees to ap ply f or a f resh 
  certificate of registration and of information being furnished in 
  the manner required by section 8, the certificate of registration 
  shall be amended accordingly 
   
Furnish of returns  10 (1)  Every r egistered op erator s hall f urnish r eturns s howing 
  total m obile phone  c onnection f or such pe riods on s uch 
  dates and to such authority as may be prescribed  
  (2)  If operator discovers any omission or incorrect statement to 
  the returns f urnished u nder s ub-section (1 ) s hall furnish 
  revised r eturns be fore the e xpiry of t hree m onths ne xt 
  following t he la st p rescribed f or f urnishing the o riginal 
  returns. 
   
Prohibition against 11 (1)  No, operator- 
collection of tax in  (a) Who i s not  r equired to pa y t he C ess, s hall collect i t 
certain cases and  from any person; and  
imposition or penalty   (b)  Who is required to pay the Cess, shall collect from any 
  person a ny amount on that account i n e xcess of t hat 
  due under this Act. 
  (2)  Whoever c ontravenes t he P rovision of  s ub-section; (1 ) 
  shall be  pu nishable w ith f ine of  r upees t wo t housand or  
  twice the amount coll ected or, the case may be, collected in 
  excess of the Cess due whichever is higher and the amount 
  so collected shall be forfeited to the State Government and 
  the person from whom the operator had recovered it may 
  claim f or it f und f rom th e G overnment w ithin one  ye ar 
  from the date he became aware of its forfeiture. 
   
Bill or cash 12 A r egistered o perator sh all i ssue t o a cu stomer a b ill o r cas h 
memorandum to be  memorandum s erially nu mbered s igned by hi m or  hi s 
issued to a customer.  employee, manager or agent showing therein such particulars 
  as m ay b e p rescribed and s hall r etain t he c ounterfoil or  
  duplicate copy of such bill or cash memorandum and preserve 
  it for a period of not less than eight years. 
   
Account  13 (1)  Every operator liable to pay Cess under this Act and every 
operator who is required so to do by the Authorised Officer 
shall ke ep as a ccount of t he c onnection by h im i n s uch 
form as may be prescribed.  
(2) The Commissioner of  T axes by not ice i n w riting or  by 
notification in the Official Gazette, direct any operator or 
any cl ass o f o perator t o maintain accounts an d r ecords 
showing s uch pa rticulars r egarding their bus iness i n s uch 
manner as may be specified by him.  
 
  (3)  A register operator shall keep all books of accounts, registers 
  and documents relating to his business at the place  of business 
  specified in  th e certificate o f r egistration w ith h is p revious 
  approval, at such other place, as Authorised Officer may allow. 
   
Declaration in 14 Where the operator is a firm, company, society, association or trust 
respect of an  the pe rson who i s i n c harge of  a nd hi s r esponsible t o the f irm, 
operation which is  company, s ociety, a ssociation o r t rust as t he case m ay b e sh all 
a firm, company  furnish a  de claration s tating t he n ames o f t he pe rsons w ho a re 
etc.   members of the Board of Directors or Governing Body thereof and 
  such other particulars as may be prescribed.  
   
Offences and 15 (1)  Any r egistered ope rator w ho und er S ection 10 know ingly 
imposition of furnishes false returns shall on conviction be punished- 
penalty  (a) Where the Cess attempted to the evaded by submission of  
the false returns exceeds rupees two thousand, with simple 
imprisonment f or a  t erm which s hall no t be  l ess t han six 
months a nd w ith f ine w hich m ay e xtend t o rupees t wo 
thousand; and  
(b) In a ny o ther c ase, w ith rig orous i mprisonment f or a  te rm 
which shall not  be l ess t han t hree months but  w hich may 
extend t o o ne ye ar and w ith f ine which m ay e xtend to 
rupees one thousand. 
(2) Any operator who knowingly keeps false copies of bill or cash 
memorandum a s r equired i n S ection 12 or  o ther books  a s 
requires un der S ection 13 s hall on c onviction be fore a  
magistrate be punished with rigorous imprisonment for a terms 
which s hall not  be  l ess t han t hree months b ut w hich may 
extend to one year and with fine which may extend to rupees 
one thousand. 
(3) Any ope rator w ho a ttempts i n a ny manner t o e vade pa yment 
the Cess shall on conviction be punished- 
(a) Where the amount involved exceeds rupees fifty thousand, 
with rigorous imprisonment for a term which shall not be 
less than six months but which may extend to three years 
and w ith f ine w hich m ay e xtend t o r upees t wo t housand; 
and 
(b) In a ny o ther c ase, w ith rig orous i mprisonment f or a  te rm 
which s hall not be less t han t hree months but  w hich may 
extend t o o ne ye ar and w ith f ine which m ay e xtend to 
rupees one thousand. 
(4) Whoever c ontravenes t he pr ovisions of  S ection 6 or  f ails to 
comply with those of Section 8 or  Section 10 t o issue a bill or 
cash memorandum to any customer as required under Section 
12, or whoever obstructs an officer from discharging his duties 
under t his A ct, s hall, on c onviction be  puni shed w ith 
imprisonment f or a  t erm which may e xtends to one  ye ar or  
with or with both.  
  (5)  Whoever aids or abets any person in the commission of 
  an of fence under t his Act or  rules f ramed t here unde r 
  shall, on conviction, be  pun ished w ith rigorous 
  imprisonment which shall not be less than three months 
  but which may extend to one year and with fin e which 
  may extend to rupees one thousand.  
   
Cognizance of 16 No C ourt s hall t ake c ognizance of  a ny of fence unde r t his 
Offences   Act, or  und er t he r ules m ade t here unde r e xcept w ith the 
  previous s anction of  t he C ommissioner, a nd no C ourt 
  inferior to that of a Magistrate of the first class shall try and 
  such offence under this Act. 
   
Power to make Rules 17 (1)  The S tate G overnment may, by notification i n t he 
  Offence Gazette, make rules to carry out the purposes of 
  this Act. 
  (2)  In pa rticular a nd without pr ejudice to t he generality of 
  the foregoing provision, such rules may provide for all 
  or any of the following matters, namely- 
  (a) The manner of payment or refund of Cess; 
  (b)  The f orm i n w hich a ccounts a nd r egisters s hall be  
  maintained by an operator; 
  (c) The manner in which registration under Section 6 is 
  to be  made a nd t he forms o f t he l icence t o b e 
  granted; 
  (d)  The form of returns to be submitted; 
  (e) The manner of and period for payment of the Cess; 
  and  
  (f) Any other matter which is required to be prescribed 
  for the purpose of this Act; 
   
Power to remove 18 Rules except rules made for the first time, shall be subject 
difficulties   to the condition of previous publication for a period of not 
  less than three weeks. 
   
Repeal  19 If a ny di fficulty a rise in gi ving e ffect t o a ny p rovision of  
this A ct t he S tate G overnment may, b y g eneral o r sp ecial 
order, do a nything not inconsistent with such provision for 
the purpose of removing the difficulty. 
  
          The Meg halaya ( Mobile P hone C onnection) C ess 
Ordinance, 2002 ( Ordinance N o. 3 of  2002)  i s he reby 
repealed. 
 
 
 

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