The Nagaland Sales Tax Act,1967

NAGALAND ACT 11 OF 1967 
[THE NAGALAND SALES TAX ACT, 1967] 
Received the assent of the President of India on the  
15th November, 1967. 
[Published in the Nagaland Gazette-Extraordinary, Date 
30th November, 1967.] 
An Act to provide the levy of a tax on the sales of goods in Nagaland 
 Preamble.-  WHEREAS it is necessary, to make an addition to the revenues of 
Nagaland and, for that purposes, it is expedient to impose a tax on the sale of goods; 
It is hereby enacted in the Eighteenth Year of the Republic of India as follows:- 
Short title, extent and commencement.- 1. (1) This Act may be called the Nagaland 
Sales Tax 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 of Taxes appointed under section 
3; 
(2) “Contract” means any agreement for carrying out for cash or deferred 
payment or other valuable consideration: - 
(a) the preparation, construction, fitting out, improvement or repair of any 
movable property, or of any building, road, bridge or other immovable 
property; or 
(b) the installation or repair of any machinery affixed to a building or other 
immovable property; 
(3) “Dealer” means any persons who carries on the business of buying, selling, 
supplying or distributing goods directly or otherwise, whether for cash, or for deferred 
payment, or for commission, remuneration or other valuable consideration and includes any 
society, club or association which sells or supplies goods to its members: - 
Explanation.- The manager of agent of a dealer who resides outside the State and 
carries on the business of selling or supplying goods in the State shall in respect of such 
business be deemed to be a dealer for the purposes of this Act; 
(4) “Declared Goods” means goods declared by section 14 of the Central Sales 
Tax Act, 1956 (Act 74 of 1956) to be special importance in inter-State trade or commerce and 
the sale of which is taxable under this Act; 
(5) “Goods” means all kinds of movable property other than News-Papers, 
actionable claims, stocks, shares or securities, and includes all materials, articles and 
commodities, whether or not to be used for the purposes referred to in sub-clause (a) and (b) 
of clause (2); 
(6) “Gross turnover” means the turnover referred to in section 13; 
(7) “Net turnover” means the turnover referred to in section 14; 
(8) “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; 
(9) “Prescribed” means prescribed by rules made under this Act; 
(10) “Registered dealer” means a dealer registered under the provisions of this 
Act; 
(11) “Sale” with all its grammatical variations and cognate expressions means any 
transfer of property in goods by any persons for cash or deferred payment or other valuable 
consideration, and includes a transfer by separate agreement and for money consideration of 
goods involved in the execution of a contract, but does not include a mortgage, 
hypothecation, charge or pledge: - 
Explanation.- Sale also shall be deemed to included a transfer of goods on the hire-
purchase or other installment system of payment, notwithstanding the fact that the vendor 
may retain the title in the goods as a security for payment of the price; 
(12) “Sale price” means the amount payable to a dealer as valuable consideration 
for: - 
(a) the sale or supply of any goods, less any sum allowed as cash discount according 
to ordinary trade practice, but including any sum charged for anything done by 
the dealer with or in respect of the goods at the time of or before, delivery thereof 
other than the cost of freight or delivery or the cost of installment where such 
cost is separately charged; or  
(b) the carrying out of any contract, less such fraction of such amount as represents 
the prescribed proporation of the cost of labour used in carrying out contract; 
(13) “Section” means a section of this Act; 
(14) “State” means the State of Nagaland; and  
(15) “Year” means the financial year. 
Taxing Authorities.- 3. (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 thinks fit. 
(2) Persons appointed under sub-section (1) shall exercise such powers as may be 
conferred, and perform such duties as may be 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). 
Liability to Tax.- 4. Subject to the provisions of this Act every dealer whose gross 
turnover from sales which have taken place either wholly in NAGALAND or both in and 
outside NAGALAND during the twelve months immediately preceding the date of such 
commencement exceeded Rs. 12,000 (hereinafter referred to as “the taxable quantum”) shall 
be liable to pay tax under this Act on sales which have taken place in Nagaland on and from 
the date of such commencement; 
(2) Every dealer to whom sub-section (1) does not apply shall be liable to pay tax 
under this Act with effect from the first of April of the year during which his gross turnover 
from sales which have taken place either wholly in NAGALAND OR BOTH IN AND 
OUTSIDE NAGALAND first amounts to or exceeds the taxable quantum “provided that 
such dealers shall not be liable to pay the tax under his Act during such year in respect of his 
gross turnover upto the taxable quantum” specified in sub-section (1); 
(3) Dealer registered under the Central Sales Tax Act, 1956 (Act No.74 of 1956) who 
is not liable to pay tax under sub-section (1) and (2) above, shall nevertheless be liable to pay 
tax on his sale of goods in respect of the purchases of which he has furnished a declaration 
under sub-section (4) of section 8 of the Central Sales Tax Act, 1956, or on the sale of any 
goods in the manufacture of which such goods have been used and every such dealer who is 
liable to pay tax shall be deemed to be a registered dealer; 
(4) Nothing in sub-section (1), (2) and (3) above shall be deemed to render any dealer 
liable to tax on the sale of goods where such sales take place: - 
(i) Outside the State of  NAGALAND; 
(ii) In the course of the import of the goods into, or export of the goods out of, the 
territory of India; or 
(iii) In the course of inter-state trade or commerce; 
Explanation: - For the purpose of this sub-section, whether a sale takes place:- 
(i) Outside the State of NAGALAND; 
(ii) In the course of import of the goods into or export of the goods out of, the 
territory of India; or  
(iii) In the course of inter-State trade or commerce; be determined in accordance with 
the principles, specified in section 3, 4 and 5 of the Central Sales Tax Act, 1956, 
(No. 74 of 1956). 
(5) Every dealer who has become liable to pay tax under this Act shall continue to be 
so liable until the expiry of three consecutive years, during each of which is gross turnover 
form sales which have taken place either wholly in Nagaland or both in and outside Nagaland 
has failed to amount to or exceed the “taxable quantum” and on the expiry of this period, his 
liability to pay tax under this Act shall cease; 
(6) Every dealer whose liability to pay tax under this Act has ceased under the 
provisions of sub-section (4) shall again be liable to pay tax with effect form the first of April 
of the year during which his gross turnover from sales which has taken place either wholly in 
Nagaland or both in and outside Nagaland again amounts to or exceeds the “taxable 
quantum”; 
(7) Where a dealer liable to pay tax under this Act starts a new business, partnership 
firm or concern, whether by changing the constitution, style or name of the previous business, 
partnership firm or concern shall notwithstanding anything contained in the proviso to sub-
section (2) of this section, be liable to pay tax on sales which have taken place in Nagaland 
from the date of the commencement of the said business, partnership firm or concern as the 
case may be. 
Rate of Tax.- 5. (1) The tax payable by a dealer under this Act shall be at the rate 
specified in Schedule I attached to this Act; Provided that the State Government may, by 
notification in the Official Gazette grant rebate not exceeding one per centum of the tax 
subject to such conditions as may be specified therein; 
(2) The State Government, after giving by notification in the Official Gazette not less 
than three months, notice of its intention so to do may, by like notification, reduce the rates of 
tax specified in the said Schedule and thereupon the said Schedule shall be deemed to be 
amended accordingly. 
Charge of Tax.- 6. (1) The Tax shall be charged at the specified rate for each 
category of goods on the total net turnover of a dealer. 
[(2) Where the total tax payable by a dealer as per sub-section (1) contains fraction of 
a rupee – 
(a) in case the fraction in below 50 (fifty) paise it shall be ommited; 
(b) in case the fraction is 50 (fifty) paise and above it shall be rounded to the next 
higher rupee.]1 
Limitation of application of the Act.- 7. The provisions of this Act shall apply to 
the sale of – 
(1) Goods taxable under the Nagaland (Sales of Petroleum and Petroleum Products 
including Motor Spirit and Lubricants) Taxation Act, 1967. 
[(2) Good taxable under the Nagaland Finance (Sales tax) Act, 1967.]2 
(3) Goods on which a duty or fee is levied under the Eastern Bengal and Assam 
Excise Act, 1910; and  
(4) Goods specially exempted under the provisions of this Act. 
Exemptions.- 8. (1) Subject to the conditions and exemptions, if any, set out in 
Schedule II attached to this Act, the sales of goods specified therein shall be exempted from 
taxation under this Act. 
(2) The State Government, after giving in the Official Gazette such previous notice as 
may be considered reasonable of its intention, so to do, may by like notification, add to, 
amend or otherwise modify, the said Schedule and thereupon the said Schedule shall be 
deemed to be amended accordingly. 
Compulsory Registration.- 9. (1) No dealer shall, while being liable to pay tax 
under the provisions of this Act, carry on business as a dealer unless he had been registered 
and possesses a certificate of registration. 
 
1. Inserted vie Nagaland Act 3 of 1971. 
2. Omitted vide Nagaland Act 3 of 1971. 
(2) Every dealer required by sub-section (1) to be registered shall apply for 
registration to the Commissioner in the prescribed manner, and obtain 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 the application is in order, 
register the applicant. 
Registration by Commissioner.- 10. (1) The Commissioner may, in addition to 
taking any other action under the provisions of this Act, require any dealer who, in hi opinion, 
is liable to registration but has not made an application in this behalf to apply for registration 
and register him. The Commissioner shall register a dealer who fails to apply for registration 
within a specified time: 
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) The Commissioner shall register any dealer who has been (convicted under 
section 42 or has paid composition money under section 45 in respect of any contravention of 
sub-section (1) of section 9; 
(3) Registration made under sub-section (1) or sub-section (2) shall take effect as if 
these had been made on the dealer’s application under sub-section (2) of section 9. 
Voluntary Registration.- 11. (1) Any dealer whose total gross turnover during a 
year amounts to or exceeds the taxable quantum may, notwithstanding that he may not be 
liable to pay tax under section 4, apply in the manner referred to in sub-section (2) of section 
9 for registration under this Act. 
(2) The provisions of sub-section (3) of section 9 and of section 12 shall apply in 
respect of applications for registration under this sub-section (1) of this section. 
(3) Every dealer who has been registered upon application under this section shall, 
for so long as his registration remains in force, be liable to pay tax under this Act; 
(4) The registration effected under the provisions of this section shall be in force for a 
period of not less than three complete years and shall remain in force thereafter unless 
cancelled under the provisions of this Act; 
(5) A dealer registered under his section may, subject to the provisions of sub-section 
(a), apply not less than six months before the end of a year to the authority which granted him 
his certificate of registration for cancellation of such registration to take effect at the end of 
the year shall, unless the dealer is liable to pay tax under section 4, cancel the registration 
accordingly. 
Certificate of Registration.- 12. (1) A dealer register under section 9 or section 10 
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 from time to 
time any certificate or registration; 
“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.”1 
(3) The Commissioner shall cancel the 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; 
(4) The Commissioner or any officer authorized by him in writing in this behalf, if it 
appears to him to be necessary so to do for the proper realization of the tax levied  under this 
Act, may impose for reasons to be recorded in writing as a condition of the issue of a 
registration certificate to a dealer or of the continuance, in effect, of such a certificate issued 
to any dealer, a requirement that the dealer, shall give security upto an amount and in the 
manner approved by the Commissioner for  
 
1. Inserted vide Nagaland Act 3 of 1971. 
the payment  of the tax for which he may be or become liable under this Act. 
Gross Turnover.- 13. (1) The gross turnover of a dealer during given period shall be 
determined by taking the aggregate of the sale prices of goods sold during that period; 
(2) In computing under sub-section (1) the turnover of a dealer for the purposes of 
this Act, there shall be included – 
(a) so much of the turnover of a wife or minor child of a dealer as arises directly or 
indirectly from – 
(i) the membership of the wife in the business of which her husband is a partner; 
(ii) the admission of the minor to the benefits of partnership in the business of 
which the father is a partner; and 
(iii) the business of any part thereof transferred directly or indirectly or the wife 
or the minor, not being a married daughter by the husband or the father 
otherwise than for adequate consideration; and  
(b) so much of the turnover of any person as arises from the business transferred 
otherwise than for adequate consideration to the person by a dealer for the benefit 
of his wife or of minor child or both. 
Net Turnover. – 14. The net turnover shall be determined by deducting from a 
dealer’s gross turnover during any given period – 
(1) his turnover during that period on – 
(a) the sale of goods exempted under sections 7 and 8; 
(aa) goods taxed at the rate of seven paise in the rupee.1 
(b) sale of a registered dealer of – 
(i) goods specified in the purchasing dealer’s certificate of registration as 
being intended by him for - 
 (a) resale in the State, or  
_____________________________________________________________________ 
1 Inserted vide Nagaland Act 3 of 1971. 
 (b) use in the execution of any contract, 
(ii) containers and other materials for the packing of such goods; 
Provided that the goods which are purchased free of tax and used by 
a dealer for purposes other than those specified in his certificate of 
registration, the price of such goods so utilized shall be included in 
his net turnover; and  
(c) such other sales as may be prescribed; 
(2) the amount of any debt proved to have been bad and written off on which tax has 
been paid; and  
(3) the per centum as against each items of the balance remaining after making the 
deductions admissible under clauses (1) and (2) in case of goods specified below 
– 
(a) goods taxed at the rate              per centum 
 of ten paise in the rupee     9.09 
(b) goods taxed at the rate of five paise in the rupee  4.76 
(c) goods taxed at the rate of three paise in the rupee  2.91 
(d)  goods taxed at the rate of one paise in the rupee  0.99 
Returns.- 15. (1) Every registered dealer furnish such returns of his total turnover by 
such dates and to such authority as may be prescribed; 
(2) In the case of tax of any other dealer whose total turnover is, in the opinion of the 
Commissioner, of such amount as to render him liable to pay tax under this Act for any year 
or a part thereof, the Commissioner may serve [at any time within eight years of the end of 
the aforesaid period]1 a notice in the prescribed form upon him requiring him to furnish a 
return of his total turnover; 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 a revised return at any time 
before assessment is made on the original return; 
_____________________________________________________________________ 
1 Substituted vide Nagaland Act 3 of 1971 for the word “in the year” 
(4) No return submitted under this section shall be valid unless it is accompanied by a 
treasury receipt showing payment of the tax due as provided in sub-section (2) of section 36. 
Assessment.- 16. (1) If the Commissioner is satisfied that a return furnished by a 
dealer under section 15 in respect of any period is correct and complete, he shall by 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 15 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 the sub-section (2) or as soon as 
afterwards as may be, the Commissioner, after hearing such evidence as the dealer may 
produce and such other 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 sub-section (1) or sub-section (2) 
of section 15, as the case may be, 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 to comply with the terms of the notice 
issued under sub-section (2) of this section. 
Cancellation of assessment.- 17. Where a dealer, in the case of an assessment 
completed under sub-section (4) of section 16, satisfies the Commissioner, within one month 
from the [date of service]1 of a notice of demand is hereinafter provide, that he was prevented 
by sufficient cause from making the return required by section 15 or   
____________________________________________________________________ 
1 Substituted vide Nagaland Act 3 of 1971 for “date of issue”. 
 
that he did not receive the notice issued under sub-section (2) of section 15 or sub-section (2) 
of section 16, 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 16. 
Assessment in case of evasion.- 18. If upon information which has come into his 
possession, the Commissioner is satisfied that any dealer has been liable to pay tax under this 
Act in respect of any period and has nevertheless failed to apply for registration, and to make 
the return required of him, the Commissioner may, at any time within eight years of the end 
of the aforesaid period, serve on the dealer a notice containing all or any of the requirements 
which may be included in a notice under sub-section (2) of section 15 and may proceed to 
assess the dealer in respect of such period and all subsequent periods, and the provisions of 
the Act so for as may be shall apply accordingly as if the notice were a notice issued under 
the aforesaid sub-section: 
Provided that the tax shall be charged at the rate at which it would have been 
ordinarily chargeable. 
[Provided further that before making an assessment under this sub-section, the 
Commissioner shall give notice to the dealer of his intention so to do and allow him a 
reasonable opportunity of being heard]1 
Turnover escaping assessment.-  19. (1) If upon information which has come into 
his possession the Commissioner is satisfied that any turnover in respect of sales of any goods 
chargeable to tax under this Act has escaped assessment during any return period or has been 
under-assessed or assessed at a lower rate or any deduction has been wrongly made therefrom 
he may, at any time within eight years of the end of the aforesaid period serve on the dealer 
liable to pay the tax in respect of such turnover a notice containing all or any or the 
requirements which may be included in a notice under sub-section (2) of section 15 or sub-
section (2) of section 16 and may proceed to assess or re-assess the dealer in respect of such 
period and the 
_____________________________________________________________________ 
1 Inserted vide Nagaland Act 3 of 1971. 
provision of this Act shall apply accordingly as if the notice were a notice served under the 
aforesaid sub-section: 
Provided that the tax shall be charged at the rate at which it would have been 
ordinarily chargeable. 
[Provided further that before making an assessment under this sub-section, the 
Commissioner shall give notice to the dealer of his intention so to do and allow him a 
reasonable opportunity of being heard.]1 
(2) The Commissioner may authorize any person appointed under section 3 to assist 
him investigating any case or appoints in a case at any stage to make a report of all or any of 
the assessments made in relation to the case in order to prevent the evasion of tax. After 
considering the report of the investigating officer the Commissioner may proceed to take 
action under sub-section (1) besides initiating any other action under this Act against the 
dealer concerned. 
Restriction on movement.- 20. No person shall taken delivery or transport from any 
railway station, airport, post office or any other place whether of similar nature or otherwise 
notified in this behalf by the State Government, any consignment of goods the sale of which 
is taxable under Act, exceeding such quantities and except in accordance with such 
conditions as may be prescribed. Such conditions shall be made with a view to ensure that 
there is no evasion of the tax imposed by this Act. 
Rectification of Assessment.- 21. (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 record 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 has given notice to the dealer of its intention so to 
do and has allowed him a reasonable opportunity of being heard. 
(2) Where any such rectification has the effect of reducing the assessment, a 
_____________________________________________________________________ 
1 Inserted vide Nagaland Act 3 of 1971. 
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 issued for the sum payable. 
Penalty for concealment of turnover and evasion of Tax.- 22. (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 15 or section 18 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 16, or 
(c) has, concealed the particulars of his turnover or deliberately furnished inaccurate 
particulars of such turnover, 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, a sum not 
exceeding one and a half times that amount. 
(2) No order under sub-section (1) shall be made unless a dealer has been heard or 
has been given a reasonable opportunity of being heard. 
(3) No penalty under his section shall be imposed by an officer appointed to assist the 
Commissioner without the previous sanction of the Commissioner. 
Assessment not to bar prosecutions or penalties.- 23. Any assessment made under 
this Act shall be without prejudice to any prosecution or penalty instituted or imposed under 
the provisions of this Act. 
Tax of deceased payable by representative.- 24. (1) Where a dealer dies after 
assessment but before payment of the tax, his executor, administrator or other legal 
representative shall be liable to pay, out of the estate of the deceased to the extent to which it 
is capable of meeting the charge, the tax assessed as payable by such dealer. 
(2) Where a dealer dies without having furnished the return required by section 15 or 
after having the return but before assessment, the Commissioner may proceed to make an 
assessment and determine the tax payable by the deceased; and for this purpose he may 
require the executor, administrator or other legal representative, as the case may be, of the 
deceased to perform all or any of the obligations which he might, under the provisions of this 
Act, have required the deceased to perform. The tax thus determined shall be payable by the 
executor, administrator or other legal representative of the deceased to the extent to which the 
estate of the deceased is capable of meeting the charge. 
Assessment and recovery of Tax on transfer of business. – 25. Where the 
ownership of the business of a dealer liable to pay tax or other amount is transferred, any tax 
or other amount payable under this Act in respect of such business and remaining unpaid at 
the time of the transfer and any tax or other amount due upto the date of transfer through 
unassessed may, without prejudice to any action that may be taken for its recovery from the 
transferor, be recovered from the transferee as if he were the dealer liable to pay such tax or 
other amount : 
Provided that the recovery from the transferee of the arrears of taxes due for the 
period to the date of the transfer shall be limited to the value of the assets he obtained by 
transfer. 
(2) Notwithstanding anything contained in this Act, if it appears to the Commissioner 
during any current return period that any dealer is likely to change, sell, transfer, dispose of or 
otherwise part with any of his assets with a view to avoiding payment of any liability under 
the provisions of this Act, the net turnover of such dealer for the period from the expiry of the 
previous return period to the date when the Commissioner commences proceeding under this 
section shall be chargeable to tax in that period. 
(3) For the purpose of making an assessment under sub-section (2) the Commissioner 
may serve a notice upon such dealer requiring him to furnish within such period as may be 
specified in the notice, a return in the manner and form in which a return under section 15 is 
furnished. 
(4) [The transferee shall, within ninety days of such transfer, apply for registration 
under section 9 and thereafter all the provisions of this Act shall apply to such transferee.]1 
Liability of guardian and trustees. Etc.- 26. Where the business in respect of which 
tax is payable under his Act is carried on by, or is in charge of, any guardian, trustee or agent 
of a minor or other incapacitated person on behalf of, and for the benefit of , such minor or 
other incapacitated person, the tax shall be levied upon and recoverable from such guardian, 
trustee or agent as the case may be, in like manner and to the same extent as it would be 
leviable upon and recoverable from any such minor or other incapacitated person, if he were 
of full age and sound mind and if he was conducting the business himself; and all the 
provisions of this Act shall apply accordingly. 
Liability of Courts of Wards, etc.- 27. Where the estate or any portion thereof of a 
dealer owing a business in respect of which tax is payable under this Act is under the control 
of the Court of Wards, the Administrator-General, the Official Trustee or any Receiver or 
Manager (including any person, whatever his designation, who in fact manages the business) 
appointed by, or under any order of a Court of Wards, and to the same extent as it would be 
leviable upon and recoverable from the dealer if he was conducting the business himself; and 
all the provisions of this Act shall apply accordingly. 
Liability of Agent of Non-resident.- 28. Where the business in respect of which tax 
is payable under this Act is owned by a non-resident person, the tax shall be levied upon and 
recoverable from the agent of such non-resident person in like manner and to the same extent 
as it would be leviable upon and recoverable from the owner if he was resident in the State 
and conducting the business therein; and all the provisions of this Act shall apply 
accordingly. 
Liability in case of discontinued firm or association. – 29. Where business carried 
on by a firm or an association of persons, other than a company as defined in the Indian 
companies Act, 1956 and in respect of which tax is payable under this Act, is discontinued or 
the association of persons is dissolved, the tax shall be levied upon  
_____________________________________________________________________ 
1. Inserted vide Nagaland Act 3 of 1971. 
and recovered from jointly and severally, every person who at the time of such 
discontinuance of dissolution as a partner of such firm or member of such association; and all 
the provisions of the Act shall apply accordingly. 
Liability to tax on cancellation of certificate or dissolution of a firm or 
association.- 30. (1) When a certificate of registration is cancelled under sub-section (3) of 
section 12 in any case other than that of a dissolution of a firm or association of persons, the 
dealer shall be liable to pay tax on his stock of goods remaining unsold at the time of 
cancellation of the certificate and all the provisions of this Act, shall apply accordingly. 
(2) In case of dissolution of a firm or association of person, the tax on the stock of 
goods remaining unsold at the time of such dissolution, shall be levied upon and recovered 
from, jointly and severally every person who at the time of such dissolution was a partner of 
such firm or members of such association; and all the provisions of this Act, shall apply 
accordingly. 
Appeal.- 31. (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 of 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 file may admit if after 
the expiration of thirty days, if such authority is satisfied that for reasons beyond the control 
of the appellant 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 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. 
Revision by Commissioner.- 32. (1) The Commissioner may call for and examine 
the record of any proceeding under this Act, and if he considers that any order passed therein 
by any person appointed under section 3 to assist him in erroneous in so far as it is prejudicial 
to the interests 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 an order to which sub-section (1) applies 
passed by any person appointed under section 3 to assist him, the Commissioner may, either 
of his own motion or on a petition, by a dealer for revision, call for the record of any 
proceeding under this Act in which any 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 order 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 whom the petition is filed my 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 31 or section 33 but has not 
been made and the time within which such appeal may be made has not expired; 
or  
(b) Where the order is pending on appeal under section 31 or section 33. 
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 State Government.-  33. (1) Any dealer by any order passed in appeal 
under section 31 or passed in revision under sub-section (1) of section 32 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 the reasons beyond the control of the 
appellate 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 order thereon as it thinks fit, and shall communicate any such orders to the dealer 
and to the Commissioner. 
Reference.- 34. (1) Within sixty days from the date of service of any order under 
section 33, the dealer may, by petition in writing, require the State Government to refer to the 
High Court any question 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 provisions 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 withdraw 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 require 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. 
 (5) Where the application under sub-section (1) is rejected on the ground that it is 
time barred and where no action is taken by the applicant under sub-section (3) he may, 
within ninety days of the date of such rejection, apply to 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 require the State Government to treat the 
application under sub-section (1) as made within time. 
(6) Where the High Court is not satisfied that the statement in a case referred under 
his 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 thereof of 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 of the judgment, order disposal of the case accordingly. 
(8) Where a reference is mad eon 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, excess shall be refunded in accordance 
with the provisions of this Act. 
(10) Section 5 of the Indian Limitation Act, 1908, (IX f\of 1908) shall apply to an 
application to the High Court by dealer under this section. 
Notice of demand.- 35. When any tax or penalty or other dues is or are payable in 
consequence of any order passed under or in pursuance of this Act, the Commissioner shall 
serve upon the persons liable to pay such tax or penalty or other dues a notice of demand in 
the prescribed form specifying the sum so payable. 
Tax when payable.- 36. (1) Tax payable under this Act shall be paid in the manner 
hereinafter provided. 
(2) Before any registered dealer furnished the return required by sub-section (1) of 
section 15, 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 returned is submitted by a registered dealer under sub-section (3) 
of section 15 and if 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 the tax due under provision of this Act – 
(a) in excess of payment 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 be paid within thirty days 
from the date of service of the notice. 
Correction of Tax by dealers.- 37. No person who is not a registered dealer shall 
realize any amount by way of tax under this Act on sales of goods form the purchasers. 
Without prejudice to the provisions of sub-section (2) of section 42, the amount realized by 
any person as tax on sales of any goods shall, notwithstanding anything contained in any 
other provision of this Act, be deposited by him in a Government Treasury within such period 
as may be prescribed, if the amount payable as tax in respect of those sales or if no tax is 
payable in respect thereof, and in default of such payment, double the amount shall be 
recovered as a public demand under the Bengal Public Demands Recovery Act, 1913. (3 of 
1913). 
Other dues when payable.- 38. Any dues, other than the amount of tax payable 
under this Act shall be paid by the person concerned by such date as may be specified, it shall 
be paid within thirty days from the date of the service of the Notice. 
Mode of recovery. – 39. (1) If the demand in respect of any dues under this Act is 
not paid on or before the date specified as aforesaid the dealer shall be deemed to be in 
default: 
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. 
(2) 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. 
(3) Where a dealer is in default, the Commissioner may order that the amount due 
shall be recoverable as a public demand under the Bengal Public Demands Recovery Act, 
1913 and may proceed to realize such amount due. 
Refund.- 40. 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 option of the dealer by set off against the sum due from him in respect of 
any other period. 
Remission.- 41. 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. 

Excerpt shown. Open the full act in Lexace.

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