The Nagaland(Sale of Petroleum & Petroleum Products, including Motors Spirit & Lubricant Taxation) Act,1967

NAGALAND ACT 9 OF 1967 
[THE NAGALAND (SALES OF PETROLEUM AND PETROLEUM  
PRODUCTS INCLUDING LUBRICANTS) TAXATION ACT, 1967.] 
[Published in the Nagaland Gazette-Extraordinary, Dated 
7th October, 1967.] 
 
 Preamble.- WHEREAS it is expedient to repeal the Assam (Sales of Petroleum and 
Petroleum Products including Motor Spirit and Lubricants) Taxation Act, 1956 (Assam Act 
IX of 1956) and to re-enact one to impose tax on sales of Petroleum and Petroleum Products, 
including Motor Spirit, Lubricants, Diesel Oil and Crude Oil for the purpose of making an 
addition to the public revenue; 
 AND WHEREAS the previous sanction of President of India has been obtained under 
the proviso to Articles 304 (b) of the Constitution of India; 
It is hereby enacted in the Eighteenth Year of the Republic of India as follows:- 
Short title, extent and commencement.- (1) This Act may be called the Nagaland 
(Sales of Petroleum and Petroleum Products, including Motor Spirit and Lubricants) Taxation 
Act, 1967. 
(2) It extends to the whole of Nagaland. 
(3) It shall come into force on such date as the State Government may, by notification 
in the Official Gazette, appoint. 
Definitions.- 2. In this Act unless there is anything repugnant in the subject or 
context: - 
(1) “Commissioner” means the Commissioner appointed under section 5; 
(2) “Crude Oil” means crude petroleum in its natural state; 
(3) “ Dealer” means any person who carries on the business of selling or supplying 
motor spirit or lubricant or both in the State of Nagaland whether for commission, 
remuneration or otherwise and includes a manufacturer or importer or any society, 
club or association which sells or supplies motor spirit or lubricant or both to its 
members; 
Explanation. – The Manager or agent of a dealer who resides outside Nagaland and 
sells taxable goods brought by him into Nagaland from any place outside Nagaland shall in 
respect of such business be a dealer for the purpose of the Act; 
(4) “Government” means the State Government of Nagaland; 
(5) “Lubricant” means any form of oil, grease or other lubricating substance used for 
lubricating the internal machinery of automotives or stationary internal combustion engines; 
(6) “Motor Spirit” means any substance which by itself or in admixture with other 
substances is ordinarily used directly or indirectly to provide reasonably efficient fuel for 
automotive or stationary internal combustion engines, and includes petrol, diesel oil and other 
internal combustion oils but does not include furnace oil, coal or charcoal; 
(7) “Person” means any individual, or association or body of individuals, and includes 
a Department of any Government, a Hindu undivided or joint family, a firm and a company, 
whether incorporated or not; 
(8) “Prescribed” means prescribed by rules made under this Act; 
(9) “Sale” with all its grammatical variations and cognate expression payment or other 
valuable consideration; 
Provided that any shortage in excess of one per centum of the qualities of motor spirit 
received into stock by a dealer for sale shall, unless the contrary is proved, be deemed to be a 
sale for purposes of this Act; 
(10) “Taxable goods” means such goods as are specified in sub-section (1) of section 
3 of the Act; and  
            (11) “Year” means the financial year. 
 Liability to tax. -3. (1) There shall be levied and collected from every dealer a tax on 
sales of the following goods at the rates specified below:- 
(i)  Motor Spirit (except diesel oil and internal combustion oils other pthan 
petrol)………….     Eight paise per litre, 
(ii) Lubricant………………..                              Nine paise per litre, 
(iii) Diesel oil and other internal combustion oils other than petrol………. Seven 
paise per litre, 
(iv) Crude oil…………. Advalorem three percent. 
(2) Nothing in sub-section (1) shall be deemed to render any dealer liable to tax on the 
sale of taxable goods where such sale takes place:- 
(i) outside the State of  Nagaland; 
(ii) in the course of the import into or out of the territory of India; or  
(iii) in the course of inter-State trade or commerce as laid down in section 3 of the 
Central Sales Tax Act 1956; 
(3)Any shortage in excess of one per cent of the quantities of each consignment of 
motor spirit received into stock by a dealer for sale shall unless the contrary is proved, be 
presumed to be due to sale for the purpose of sub-section (1), and the tax shall be levied and 
collected from the dealer accordingly. 
Exemption.-4. Notwithstanding anything contained in this Act, the Government may 
without conditions or upon conditions exempt any dealer from liability to pay any tax under 
this Act or may refund any tax or any portion thereof, collected under this Act; 
Provided that nothing shall be construed to oblige or impose a duty on the 
Government at any time to exercise the powers under this section conferred upon it. 
Taxing Authorities.-5. (1) The State Government may, for carrying out the purposes 
of this Act, appoint a Commissioner of Taxes, and such other persons to assist him as it think 
fit. 
(2) Persons appointed under sub-section (1) shall exercise such powers as may be 
conferred, and perform such duties as may required, by or under this Act. 
(3) All persons appointed under sub-section (1) shall be deemed to be public servants 
within the meaning of section 21 of the Indian Penal Code.(XLV of 1860). 
Compulsory Registration.-6. (1) No dealer shall, while being liable to pay tax under 
the provisions of this Act, carry on business as a dealer unless he has been registered and 
possesses a certificate of registration. 
(2) Every dealer required by sub-section (1) to be registered shall apply for 
registration to the Commissioner in the prescribed manner, and obtained a certificate of 
registration. 
(3) On receipt of an application under sub-section (2), the Commissioner shall, if he is 
satisfied after such enquiry as may be deemed necessary that application is in order, register 
the applicant. 
Registration by Commissioner.-7. (1) The Commissioner may in addition to take 
any other action under the provisions of this Act, require any dealer who, in  his opinion, is 
liable to registration but has not made an application in this behalf, to apply for registration 
and register him; 
Provided that no action under this sub-section shall be taken unless the Commissioner 
has given notice to the dealer of his intention so to do and has allowed him a reasonable 
opportunity of being heard. 
(2) Registration made under sub-section (1) shall take effect as if these had been made 
on the dealer’s application under sub-section (2) of section 6. 
Certificates of Registration. -8. (1) A dealer registered under section 6 or section 7 
shall be granted a certificate of registration in such form as may be prescribed, which shall 
specify the class or classes of goods in which at the time of the grant of the said certificate the 
dealer carries on business, and such other particulars as may be prescribed. 
(2) The Commissioner may, on petition or otherwise cancel or amend time to time 
any certificate of registration. 
[“Provided that no action under this sub-section shall be taken unless the 
Commissioner has given notice to the dealer of this intension so to do and has allowed him a 
reasonable opportunity of being heard.”]1 
(3). The Commissioner shall cancel certificate of registration when- 
(a) the business in respect of which the certificate was issued has been discontinued or 
transferred; or  
(b) the liability to pay tax in respect of such business has ceased under this Act. 
 
Suspension or cancellation of registration certificate.-9.(1) The Commissioner may 
suspend, for such period as he considered fit, or cancel any certificate of registration where- 
(a) any tax payable under section 3 is not duly paid by the holder of such certificate; 
or 
(b) there is any breach of any of the condition subject to which a registration 
certificate is granted or renewed; or  
(c) the holder of the registration certificate has been convicted under the provision of 
the Act; 
Provided that no order prejudicial to a dealer shall be passed under this sub-section 
without giving him a reasonable opportunity of being heard; 
 
1. Inserted Vide Nagaland Act 6 of 1969, See Nagaland Gazette of 10th April 1969. 
 
Provided further that such cancellation shall not absolve the holder of the registration 
certificate from his liability to pay tax and other dues under the Act nor bar other action as 
may be taken against him under the Act. 
(2) The holder of a registration certificate shall not be entitled to any compensation 
for any loss or damage directly or indirectly suffered by him for its suspension or cancellation 
under sub-section (1). 
Returns.-10. (1) Every registered dealer shall furnish such returns of his turn-over by such 
dates and to such authority as may be prescribed. 
(2) In the case of any other dealer whose business, in the opinion of the 
Commissioner, is such as to render him liable to pay tax under this Act for any year or part 
thereof, the Commissioner may serve within eight years of the completion of that a notice in 
the prescribed form upon him requiring him to furnish a return of his turn-over, and such 
dealer shall thereupon furnish the return within the period and to the authority mentioned in 
the notice. 
(3) If any dealer discovers any omission or other error in any return furnished by him 
either under sub-section (1) or sub-section (2) he may furnish as revise return at any time 
before assessment is made on the original return. 
(4) No return submitted under this section shall be levied unless it is accompanied by 
a treasury receipt showing payment of the tax due as provided in sub-section (2) of section 
23. 
Assesment.-11. (1) If the Commissioner is satisfied that a return furnished under 
section 10 in respect of any period is correct and complete, he shall, by an order in writing, 
assess the dealer and determine the tax payable by him on the basis of such return. 
(2) If the Commissioner is not satisfied that a return furnished under section 10 is 
correct and complete, he shall serve on the dealer a notice requiring him, on the date, and at 
the hour and place specified therein, either to attend in person or to produce or cause to be 
produced any evidence on which he may rely in support of his return. 
(3) On the day specified in the notice under sub-section (2) or as soon afterwards as 
may be, the Commissioner, after hearing such evidence as the Commissioner may require, 
shall, by an order in writing, assess the dealer and determine the tax payable by him on such 
assessment. 
(4) If a dealer fails to make a return as required by section 10 or having made the 
return, fails to comply with all the terms of the notice issued under sub-section (2) of this 
section, the Commissioner shall, by an order in writing, assess to the best of his judgment the 
dealer, and determine the tax payable by him on the basis of such assessment; 
Provided that before making assessment the Commissioner may allow the dealer such 
further time as he thinks fit to make the return or comply with the terms of the choice issued 
under sub-section (2) of this section.  
Cancellation of assessment.-12. Where a dealer, in the case of an assessment 
completed under sub-section (4) of section 11, satisfies the Commissioner, within one month 
from the date of issue of a notice of demand as hereafter provided, that he was prevented by 
sufficient cause from making the return required by section 10 or that he did not receive the 
notice issued under sub-section (2) of section 11 or that he had not a reasonable opportunity 
to comply, or was prevented by sufficient cause from complying with the terms of the notice, 
the Commissioner shall cancel the assessment and make a fresh assessment in accordance 
with  the provisions of section 11. 
Assessment and penalty in case of evasion by unregistered  persons.-13.  If upon 
information which has come into his possession, the Commissioner is satisfied that any 
person while being liable to pay tax under this Act in respect of any period, has nevertheless 
willfully failed to apply for registration and to pay the tax, he shall, after giving the person a 
reasonable opportunity of being heard, assess, to the best of his judgment, the amount of tax, 
if any, due from him in respect of such period and all subsequent period and the 
Commissioner may also direct that in addition to the amount so assessed a sum not exceeding 
that amount shall be recovered from the defaulter ]by way of penalty. 
Assessment and penalty in case of evasion by registered persons-14. If upon 
information which has come into his possession, the Commissioner is satisfied that any 
person registered under this Act has not paid the amount of  tax due from him or a part 
thereof for any period, he shall proceed against such person in the manner laid down in 
section 13. 
Rectiofication.-15. (1) The authority which made an assessment or passed an order 
on appeal or revision in respect thereof, may at any time within eight years from the date of 
such assessment or order and of its own motion rectify any mistake apparent from the records 
of the case, and shall within the like period, rectify any such mistake as has been brought to 
its notice by a dealer. 
Provided that no such rectification shall be made having the effect of enhancing the 
assessment unless the authority concerned had given notice of its intention so to do and has 
allowed the dealer a reasonable opportunity of being heard.  
(2) Where any such rectification has the effect of reducing the assessment, a refund 
shall be due to the dealer. 
(3) Where any such rectification has the effect of enhancing the assessment, a notice 
of demand shall be issue for the sum payable. 
Recoveries.-16. (1) Any sum due under this Act shall be recoverable as an arrear of 
public demand under the Bengal Public Demands Recovery Act, 1913. 
Penalties.-17. (1) If the Commissioner, in the course of any proceeding under this Act 
is satisfied that any dealer- 
(a) has without reasonable cause, failed to furnish the return which he was required to 
furnish under section 10 or 13, or has, without reasonable cause, failed to furnish 
it within the time allowed and in the manner required; or  
(b)  has without reasonable cause. Failed to comply with a notice under sub-section 
(2) of section 11; or 
(c) has concealed the particulars of his sales or deliberately furnished inaccurate 
particulars of  such sales; or 
(d) has evaded in any way the liability to pay tax, 
he may direct that such dealer shall pay by way of penalty, in addition to the tax 
payable by him, the sum not exceeding one and a half times that amount. 
(2) No order under sub-section (1) shall be made unless the dealer has been heard or 
has been given reasonable opportunity of being heard. 
(3) No penalty under this section shall be imposed by an officer appointed to assist the 
Commissioner without the previous sanction of the Commissioner. 
Assessment not to bar prosecution or penalties. -18.  Any assessment made under 
this Act shall be without prejudice to any prosecution or penalty instituted or imposed under 
the provisions of this Act. 
Appeal.-19 (1) Any dealer objecting to an order of assessment or penalty passed 
under this Act may, within thirty days from the date of the service of such order, appeal to the 
prescribed authority, against such assessment or penalty; 
Provided that no appeal shall be entertained by the said authority unless he is satisfied 
that the amount of tax assessed or the penalty levied, if not otherwise directed by him, has 
been paid; 
Provided further that the authority before whom the appeal is filed admits it after the 
expiration of thirty days, if such authority is satisfied that for reasons beyond the control of 
the applicant or for any other sufficient cause it could not be filed within time. 
(2) Every appeal under sub-section (1) shall be presented in the prescribed form and 
shall be verified in the prescribed manner. 
(3) The Appellate Authority shall fix a day and place for hearing of the appeal, and 
may from time to time adjourn the hearing and make or cause to be made, such further 
enquiry as may be deemed necessary. 
(4) In disposing of an appeal under sub-section (1), the Appellate authority may:- 
(a) confirm, reduce, enhance or annul the assessment; or 
(b) set aside the assessment and direct a fresh assessment after such enquiry as may be 
ordered; or 
(c) confirm, reduce or annul the order of penalty. 
(5) Every order passed in appeal under this section shall, subject to the provision of 
revision under section 20, be final. 
Revision by Commissioner. -20. (1) The Commissioner may call for and examine 
the record of any proceeding under this Act, and if he consider that any order passed therein 
by any person appointed under section 5 assist him, is erroneous in so far as it is prejudicial 
to the interest of the revenue, he may, after giving the dealer an opportunity of being heard 
and after making or causing to be made such enquiry as he deems necessary, pass such orders 
thereon as the circumstances of the case justify, including an  order enhancing or modifying 
the assessment, or canceling the assessment and directing a fresh assessment. 
(2) In the case of any order other than to which sub-section (1) applies, passed by any 
person appointed under section 5 to assist him, the Commissioner may, either of his own 
motion or on a petition by a dealer for revision, call for a record of any proceeding under this 
Act in which such order has been passed and may make such enquiry or cause such enquiry 
to be made, and subject to the provisions of this Act, may pass such orders thereon, not being 
an order prejudicial to the dealer, as he thinks fit. 
(3) In the case of a petition for revision under sub-section (2) by a dealer, the petition 
must be made within ninety days, from the date on which the order in question was 
communicated to him or the date on which he otherwise came to know of it, whichever is 
earlier; 
Provided that the Commissioner before the petition is filed may admit it after the 
expiration of the period of ‘ninety days if he is satisfied that, for reasons beyond the control 
of the petitioner or for any other sufficient cause, it could not be filed within time. 
(4) The Commissioner shall not revise any order under this section in the 
following cases- 
(a) where an appeal against the order lies under section 19 or 21 but has not been 
made and the time within which such appeal may be made has not expired, or in 
the case of an appeal to the State Government the dealer has not waived his right 
of appeal; or 
(b) where the order is pending on appeal under section 19; or  
(c) where the order has been made the subject of an appeal to the State Government. 
Explanation:- An order by the Commissioner declining to interfere shall, for the 
purpose  of this section, be deemed not to be an ]order prejudicial to the dealer. 
Appeal to the State Government.-21. (1) Any dealer aggrieved by an order passed 
in appeal under section 19 or passed in revision under sub-section (1) of section 20 may 
appeal to the State Government within sixty days of the date on which such order is 
communicated to him. 
(2) The State Government may admit an appeal after the expiration of the sixty days 
referred to in sub-section (1) if it is satisfied that for reasons beyond the control of the 
appellant or for any other sufficient cause it could not be filed within time. 
(3) An appeal to the State Government shall be in the prescribed form and shall be 
verified in the prescribed manner, and shall be accompanied by a fee of twenty five rupees. 
(4) The State Government may, after giving the dealer an opportunity of being heard, 
pass such orders thereon as it thinks fit, and shall communicate any such orders to the dealer 
and to the Commissioner. 
Reference.- 22. (1) Within sixty days from the date of service of any order under 
section 21, the dealer may, by person in writing, require the State Government to refer to the 
High Court any question in of law arising out of such order of the State Government or the 
State Government may make such reference out of its own motion. Where the petition is 
made by a dealer, it shall be accompanied by a fee of one hundred rupees. 
(2) Within sixty days of the receipt of the petition under sub-section (1), the State 
Government shall, subject to the provision in sub-section (3), draw up, after such hearing and 
enquiry as may be considered necessary, a statement of the case and refer it with its opinion 
thereon to the High Court. 
(3) The State Government may reject the application under sub-section (1) and refuse 
to state the case on the ground that it is time barred or otherwise incompetent, or that no 
question of law arises and the applicant may, within thirty days of such refusal withdrawal 
the application and if he does so, the fee paid shall be refunded. 
(4) Where the application under sub-section (1) is rejected on the ground that no 
question of law arises and where no action is taken by the applicant under sub-section (3), he 
may, within ninety days from the date of such rejection, apply to the High Court against the 
order rejecting the application, and if, upon receipt of such an application, the High Court is 
not satisfied with the correctness of the decision, it may required the State Government to 
state the case and refer it and, on receipt of any such requisition, the State Government shall 
state and refer the case accordingly. 
(6) Where the High Court is not satisfied that the statement in a case refer under this 
section is sufficient to enable it to determine the questions of law raised thereby, it may refer 
the case back to the State Government to make such additions thereto or such alterations 
therein as may be directed and the State Government shall thereupon comply with the 
directions and re-submit the case accordingly. 
(7) The High Court upon the hearing of any such case shall decide the question of law 
raised thereby, and shall deliver its judgment thereon containing the grounds on which such 
decision is founded, and shall send to the State Government a copy of such judgment under 
the seal of the Court and signature of the Registrar, and the State Government  shall, on 
receipt of the copy or the judgment, order disposal of the case accordingly. 
(8) Where a reference is made on the application of a dealer, the costs shall be in the 
discretion of the High Court. 
(9) Notwithstanding that a reference has been made under this section to the High 
Court, payment of tax shall not be stayed pending disposal of such reference; but where the 
amount of tax is reduced as the result of the reference, the excess shall be refunded in 
accordance with the provisions of this Act. 
(10) Section 5 of the Indian Limitation Act, 1908 shall apply to an application to the 
High Court by a dealer under this section. 
Payment of Tax.- 23. (1) Tax payable under this Act shall be paid in the manner 
hereinafter provided. 
(2) Before any registered dealer furnishes the returns required by sub-section (1) of 
section 10, he shall in the prescribed manner pay into a Government Treasury the full amount 
of tax due from him under this Act on the basis of such returns and shall furnish along with 
the returns a receipt from such treasury in token of payment of such tax. 
(3) Where a revised return is submitted by a registered dealer under sub-section (3) of 
section 10, and the revised return shows a greater amount of tax to be due than was payable 
on the basis of the original return, the dealer shall pay the excess amount of tax in the manner 
provided in sub-section (2) and shall furnish along with the revised return a receipt in token 
of payment of such excess tax. 
(4) The amount of tax due under the provision of this Act- 
(a) in excess of payments already made under sub-section (2) and (3); or  
(b) where no payment has been made, shall be paid by the dealer by such date as may 
be specified in the notice of demand and where no such date is specified, it shall 
paid within thirty days from the date of service of the notice; 
Provided that the Commissioner may, in respect of any particular dealer and for 
reasons to be recorded in writing, extend the date of payment of the dues or allow such dealer 
to pay the same by installments and in that case the dealer shall not be deemed to be in 
default till the date as extended or the last date of payment by installment is over. 
(5) Where a dealer is in default, the Commissioner may, in his discretion, direct that 
in addition to the amount due, a sum not exceeding that amount shall be recovered from the 
defaulter by way of penalty. 
Refunds.- 24. The Commissioner shall, in the prescribed manner, refund to a dealer 
any sum paid by such dealer in excess of the sum due from him under this Act, either by cash 
payment or at the discretion of the Commissioner by set off against the sum due from him in 
respect of any other period. 
Remission. – 25. The State Government, for reasons to be recorded in writing, may 
remit the whole or part of the amount of the tax or penalty payable in respect of any period by 
any registered dealer who has suffered heavy loss due to any natural calamity. 
Offices and penalties etc.- 26 WHOEVER. 
(1) carries on business as a dealer and acts in contravention of any of the provisions of 
this Act; or  
(2) fails, without reasonable cause, to submit in due time any return as required by or 
under the provisions of this Act, or submits a false return; or 
(3) fails when required by or under the provisions of this Act, to keep accounts or 
records of sales; or 
(4) fails, when required by or under the provisions of this Act, to produce any 
accounts, evidence or documents or to furnish any information; or  
(5) fails or neglects to comply with any requirement made of him under the provisions 
of this Act; or 
(6) knowingly produce incorrect accounts, registers or documents or knowingly 
furnishes incorrect information; or 
(7) fraudulent or willfully evades the payment of any tax due under this Act, or 
conceals his liability to such tax; or 
(8) fails to pay within the time allowed and tax assessed or any penalty levied on him; 
or 
(9) prevents or obstructs inspection or entry by any officer acting under the provisions 
of this Act; or  
(10) demands or charges from any purchaser sales tax as such at a rate higher than 
that payable under the provisions of the Act; shall, on conviction before a Magistrate and in 
addition to any tax or penalty or both that may be due from him be punishable with 
imprisonment which may extend to six months or with fine not exceeding one thousand 
rupees or with both, and when the offence is a continuing one, with a daily fine not exceeding 
fifty rupees during the period of the continuance of the offence. 
False statement in declaration.- 27. Whoever makes a statement in a verification or 
declaration in connection with any proceedings under this Act which is false and which he 
either knows or believes to be false or does not believe to be true, shall, on conviction before 
a Magistrate, be punishable with simple imprisonment which may extend to six months or 
with fine which may extend to one thousand rupees, or with both. 
Maintenance of accounts.- 28. Every registered dealer or other dealer on whom a 
notice has been served to furnish returns under the provisions of this Act, shall keep a true 
accounts of taxable goods produced, made or processed by him or brought by him into 
Nagaland, from any place outside Nagaland for the purpose of sale in Nagaland, and of sales, 
and if the accounts maintained in the ordinary course do not, in the opinion of the 
Commissioner, enable him to apply a proper check on the returns furnished under the 
provisions of the Act, he may require the dealer to keep such accounts in such form as he 
may, subject to anything that may be prescribed in that connection, direct. 
Power to order production of accounts etc: - 29. Subject to such conditions and 
restrictions as may be prescribed, the Commissioner may, for the purposes of this Act, 
require any dealer to produce before him any accounts, registers, vouchers or other 
documents relating to the production, making, processing, import, sale or purchase of taxable 
goods or matters connected therewith. 
Issue of Warrants.- 30. (1) The Commissioner may issue a warrant-   
(a) for the arrest of any person whom he has reason to believe or have committed an 
offence punishable under this Act; or 
(b) for the search, whether by day or by night, of any building, vehicles or place in 
which he has reason to believe that any taxable goods is sold or kept for sale or 
consumption. 
(2) All warrants issued under this section shall be executed in accordance with the 
provisions of the Code of Criminal Procedure, 1898 (V of 1898), by a Police Officer, or if the 
Commissioner deems fit, by any other person. 
Power for entry, inspection, search, seizure, detention and arrest without 
warrant.- 31. The Commissioner may- 
(a) inspect at all reasonable times all accounts and vouchers relating to stock, 
purchases, sales and deliveries of taxable goods kept by manufacturers, importers 
and dealers and the stock of taxable goods with them; 
(b) enter and search, at any time, by day or by night, any building, vehicle or place in 
which he has reason to believe that any taxable, goods liable to confiscation under 
this Act is kept or concealed; 
(c) seize any taxable goods or any other article which he has reason to believe is 
liable to confiscation under this Act; and 
(d) detain and arrest any person whom he has reason to believe to be guilty of any 
offence punishable under this Act. 
Searches how made.- 32. All searches made under section 28 shall be made in 
accordance with the provisions of the Code of Criminal Procedure 1898 (V of 1898). 
Procedure for arrest without warrant.- 33. The provisions of Section 61 of the 
Code of Criminal Procedure 1898, shall apply to all arrests without warrant made under 
section 31. 
Power to investigation.- 34. (1) Every officer appointed under section 5 not below 
the rank of Inspector or any officer specially empowered by the Commissioner 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 the powers 
conferred b the Code of Criminal Procedure, 1898 upon Officer-in-Charge of Police Station 
for the investigation of cognizable offence; 
Provided that if such officer is of the opinion that there is not sufficient evidence or 
reasonable ground of suspicion to justify the forwarding of an accused to a Magistrate, or that 
person arrested may be discharged with a warning, such officer shall release him on his 
executing a bond, with or without sureties, to appear if and when so required before a 
Magistrate and shall make a full report of the case to the Commissioner and shall be guided 
by the order which he will receive on such report. 
Powers to grant bail.- 35. Any officer empowered under section 34 shall have power 
to grant bail in accordance with the provision of the Code of Criminal Procedure, 1898, to 
any person arrested without warrant for any offence punishable under this Act. 
Procedure of seizure.- 36. When anything has been seized by an officer exercising 
powers under section 32 and 34 such officer, after such enquiry as may be necessary- 
(a) if it appears that such thing is required as evidence in the case of any person 
arrested shall forward the thing to the Magistrate to whom such person is 
forwarded or for his appearance before whom bail has been taken; 
(b) if it appears that such thing is liable to confiscation but is not required as evidence 
aforesaid, shall send a report of the particulars of the seizure to the Commissioner 
and be guided by the orders which he will receive on such report; and  
(c) if no offence appears to have been committed, shall return the thing to the person 
from whose possession it was taken and shall report to the Commissioner 
accordingly. 
Punishment for vexatious search or arrest.- 37. 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, vehicle or place; or  
(b) vexatiously or unnecessarily seizes the property of any person on the pretence of 
seizing or searching for anything liable to confiscation under this Act; or 
(c) vexatiuosly and unnecessarily detains, searches or arrests any person, shall on 
conviction before a Magistrate be punishable with fine which may extend to five 
hundred rupees. 
Punishment for vexatious delay in forwarding an arrested person.- 38. 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 before a Magistrate be punishable with fine which may extend to two 
hundred rupees. 
Things liable to confiscation.- 39. Whenever an offence punishable under this Act is 
committed, the taxable goods or any other article in respect of which the offence has been 
committed shall be liable to confiscation. 
Procedure in making confiscation.- 40 (1) When in any case tried by a Magistrate, 
the Magistrate decides that anything is liable to confiscation under section 39, he may, after 
hearing the person, if any, claiming any right thereto and the evidence, if any, which he 
produces in support of his claim, order confiscation or may give the owner option to pay such 
fine as the Magistrate deems fit in lieu of confiscation. 
(2) When an offence under this Act has been committed and the offender is not 
known or cannot be found and when anything not in the possession of any person but liable 
to confiscation under this Act cannot be satisfactorily amount for, the Commissioner may 
enquire into the and decide the case and may order confiscation; 
Provided that no such order shall be made before the expiration of one month from 
the date of seizure or without hearing any person who may claim any right thereto and any 
evidence produced in support of such claim. 
Power to compound offences.- 41. (1) Subject to such condition as may be 
prescribed the Commissioner may, either before or after the institution of criminal 
proceedings under this Act accept from the person who has committed or is reasonably 
suspected of having committed an offence under this Act or the rules made thereunder, by 
way of composition of such offence- 
(a) where the offence consists of the failure to pay, or the evasion of, any tax 
recoverable under this Act, in addition to the tax so recoverable, a sum of money 
not exceeding one thousand rupees or double the amount of tax recoverable, 
whichever is greated, and  
(b) in any other case a sum of money not exceeding one thousand rupees in addition 
to the tax recoverable. 
(2) on the payment of such sum of money and the tax, if any, payable under section 3 
of the Commissioner, the accused person shall be discharged, the property seized, if any, 
shall be released and no further proceedings shall be taken against such  person or property in 
respect of such offence. 
Cognizance of offence.- 42. (1) No Court shall take cognizance of any offence under 
this Act, or under the rules made thereunder except with the previous sanction of the 
Commissioner and not Court inferior to that of a Magistrate of the first class shall try any 
such offence. 
(2) All offences punishable under this Act or the rules made thereunder shall be 
cognizable and bailable. 
Protection of persons acting in good faith and limitation of suits and 
proceedings.- 43. (1) No suit, prosecution or other legal proceedings shall be instituted 
against any officer of the Government for anything done or intended to be done under this 
Act or the rules made thereunder in good faith. 
(2) No suit, shall be instituted against the Government and no suit, prosecution or 
other proceedings shall be instituted against any officer of the Government in respect of 
anything done or intended to be done under this Act unless the suit, prosecution or other 
proceeding is instituted within four months from the date of the act complained of. 
Restriction on movement.- 44. No person shall transport from any railway station, 
air-port, post office, or any other place whether of similar nature or otherwise, notified in this 
behalf by the State Government, any consignment of taxable goods exceeding such quantities 
and except in accordance with such conditions as may be prescribed. Such conditions shall be 
made with a view to ensuring that there is no evasion of the tax imposed by this Act. 
Delegation of the Commissioner’s powers.- 45. Subject to such restrictions and 
conditions as may be prescribed, the Commissioner, may, by notification in the Official 
Gazette, delegate any of his powers under this Act to any official subordinate to him and such 
official shall thereupon exercise the said powers. 
Computation of the period of limitation.- 46. In computing the period of limitation 
prescribed for an appeal or revision, the day on which the order complained of was served 
and the time requisite for obtaining a certified copy of such order, shall be excluded. 
Information to be furnished regarding change of business.- 47. If any dealer- 
(a) sells or otherwise disposes of his business or any part of his business or any place 
of business or effects or comes to know of any other change in the ownerships of 
the business; or 
(b) discontinues his business or changes his place of business or opens a new place of 
business; or  
(c) changes the name or nature of his business, he shall within the prescribed time 
inform the Commissioner accordingly; and if any such dealer dies, his legal 
representative shall in like manner inform the Commissioner. 
Power to make rule.- 48. (1) The Government may, subject to the conditions of 
previous publication, make rules for carrying out the purposes of this Act. 
(2) Without prejudice to the generality of the foregoing power, such rules, may, in 
particular, prescribe- 
(a) all matters expressly required or allow by this Act to be prescribed; 
(b) the regulation of the recovery of the tax leviable under section 3; 
(c) the circumstances and the manner in and the conditions under which refunds may 
be made or withdrawn; 
(d) the imposing on dealers, importers and manufactures the duty of furnishing 
returns, and keeping records and books , the prescribing of forms of such returns, 
records and books 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; 
(e) the providing for the regulation of sale and purchase of taxable goods, the 
assessment of tax and the issue of notices requiring payment and for the recovery 
of unpaid tax; and  
(f) the fees, if any, for petition, certificates and other matters. 
(3) In making any rule, the Government may direct that a breach thereof shall be 
punishable on conviction before a Magistrate, with a fine not exceeding one thousand rupees 
or imprisonment not exceeding three months or both, and where the breach is a continuing 
one, with further fine which may extend to one hundred rupees for every day after the first 
during which the breach has been persisted in. 
(4) Every rule made under this section shall be laid, a soon as may be after it is made, 
before the Nagaland Legislative Assembly while it is in session for a total period of fourteen 
days which may be comprised in one session or in two successive sessions, and if before the 
expiry of the session in which it is so laid or the sessions immediately following the Nagaland 
Legislative Assembly agree in making any modification in the rule or the Nagaland 
Legislative Assembly agree that the rule should not be made, the rules shall thereafter have 
effect only in such modified form or be of no effect as the case may be; so however, that any 
such modification or annulment shall be without prejudice to the validity of anything 
previously done under that rule. 
Repeal:- 49. The Assam (Sales of Petroleum and Petroleum Products including Motor 
Spirit and Lubricants) Taxation Act, 1956 as extended to Nagaland shall stand repealed: 
Provided that such repeal shall not effect – 
(a) the previous operation of the said Act or anything duly done or suffered 
thereunder; or 
(b) any right, privilege, obligation or liability accrued, acquired or incurred under the 
said Act; or 
(c) any penalty, forfeiture or punishment incurred in respect of any offence 
committed against the said Act; or 
(d) any investigation, legal proceeding or remedy in respect of any such right 
privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid: 
Provided further that anything done or any action taken including any appointment or 
delegation made, notification, instruction or direction made, certificate of registration granted 
under the Act hereby repealed shall be deemed to have been done or taken under the 
corresponding provision of this Act and shall continue to be in force accordingly unless and 
until superseded by anything done or any action taken under this Act. 
Received the assent of the President of India on the 2nd November, 1967. 
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