The TASHI NAMGYAL ACADEMY BOARD ACT,1983

-./
SIKKIM
GOVERNMENT GAZETTE
EXTRAORDINARY
PUBLISHED BY AUTHORIlJ i
No. 56 Gangtok, Wednesday, April 6t 1983.
GOVERNMENT OF SIKKIM
LAW DEPARTMENT
GANGTOK
NOTIFICATION
/
No. 8/LD/1983. Dated the 6th April, 1983.
The following Act of the Sikkim Legislative Assembly having received the assent of
·the Governor on 4th day of April, 1983,:ishereby publishedfor generalinformatioru-«
THE TASHI NAMGYAL ACADEMY BOARD ACT, 1983
(ACT NO, 8 OF 1983)
A
ACT
[4.4.1983J
to provide for the establishment of a Board for managing the affairs of the school
known as the Tashi Namgyal Academy, Gangtok, and its properties and for matters co-
nnected therewith. '
BE it enacted by the Legislative Assembly of the State of Sikkim in the Thirty-
fourth Year of the Republic of India as follows:-
CHAPTER I
PRELIMINARY
I. This Act may be called the Tashi Namgyal Academy Board Act, 1983. Short title.an,d
commencement.
(2) It shall come into force on such date as the State Government may,by
notification in the Official Gazette, appoint.
2. In this Act, unless the context otherwise requires,- Definitions.
(a) "appointed day" means the date of commencement of this Act;
(b) "appointing authority" means the Chairman;
(0) "auditor" means auditor appointed under section 7 (3);
(d) "Board" means the Tashi Namgyal Academy Board established under
section 3;
(e) "Chairman" means the Chairman of the Tashi Namgyal Academy Board;

'-
Establishment and
incorporation of
Board.
Constitution of the
Board.
Removal and resig-
nation of members.
"'...
2
(f) "Executive Committee" mems the Executive Committee constituted
under section I 3;
(g) "Government" means the State Government of Sikkim ,
(h) "Fund" means the Tashi Namgyal Academy Board Fund referred to in
section 9;
(i) "prescribed" means prescribed by regulations made by the Board under
section 20;
(j) "President" means President of the Executive Committee;
(k) "school", means Tashi Namgyal Academy;
(I) "Secretary" means Secretary of the Board or the Executive Committee,
as the case m,ay be. '
CHAPTER II
Establishment of the Tashi Namgyal Academy Board
3· On and from the appointed day there shall be established a B::Jarclto be
called the Tashi Namgyal Academy Board.
(2) The Board shall be a body corporate by the name aforesaid, having per-
petual succession and a common seal, with power to acquire, hold and
dispose of property, both movable and immovable, and to contract, and
shall by the same name sue and be sued.
(3) The Head office of the Board shall be at Gangtok in the State of Sikkim.
The Board shall consist of the following members, namely ;-
(a) Minister for Education, Sikkim State, Chairman;
(b) Chief Secretary to the Government, Vice-Chairman;
(c) Secretary, Education Department of the Government, Membet-;
(d) Secretary, Finance Department of the Government, Member;
(e) Secretary, Law Department of the Government, Member;
(f) Secretary, Establishment Department of the Government, Member;
(g) Chief Engineer, SPWD (BLlildings), Government of Sikkim, Member;
(h) The Principal, Government College, Gangtok, Member;
(i) Representative of parents, Member;
(j)' Representative of parents, Member;
(k) The Principal of the school.
(2) The Principal of the school shall function as the Secretary to ~he Board.
(3) The members specified in clauses (i) and (j) of sub-section (1) shall
be elected in accordance with such procedure as may be prescribed and
shall hold office for a term of fiv: years. - .
S. (1) The Board may, at any time, remove any member Ifit is proved th-at such
member is guilty of misusing his office for private profit or he is incapable
of discharging his duties asa member due to mental or physical infirmity.
The Board may remove from office any member other than an ex-officio
member who isabsent without leave of the Board from more than three
consecutive meetings there~f without cause sufficient, in the opinion of
the Board, to exonerate his absence: -c,
Provided that no member shall be removed form office under sub-
sections (I) or (2) unless a reasonable opportunity has been given to
him to show cause against such removal.
Any member (other than one who holds office in ex-officio capacity)
mily resign from office by giving notice in writing to the Chairman, and
such resignation being accepted by the Chairman, he shall bevi-emed
to have vacated his office with effect from the date of his reSignation or
such other later date as may be specified."'.

6. The Board shall meet once a year in it meeting called Annual Meeting,
and such Annual Meeting for any ye"r shall be held before the expiry of
thr~e months from the end of the inunediatelv preceding academic
session 01the school. The procedure for holding such meeting shall be
such as may be prescribed.
At an Annual Meeting the Board shall consider the Annual Report pre-
sented to it by the Executive Committee including the audited accounts
and auditor's report relating to the immediately preceding year and pass
the same without notification or pass the same with observations for con-
sideration of the Executive Committee.
In the Annual Meeting the Board shall appoint or reappoint an auditor
as required under Section 7 (3).
In addition to an Annual Meeting the Board l11:'<ymeet as often as is nece-
ssary (such a meeting being called 'Special Meeting') provided that
following conditions are satisfied;- .
(i) The proposal to hold any special meeting should originate from
the Executive Committee except where a Special Meeting is
summoned under Section 7 (4).
(ii) The agenda for the meeting should be circulated among all members
of the Board at least seven days before the date of the proposed
meeting.
(iii) There should be proper notice of the meeting to all members of
the Board in accordance with procedure prescribed in respect
of Annual Meeting.
(iv) Other procedural regulations regarding a Special Meeting shall
be the same as in the case of an Annual Meeting.
CHApTER III
Powers and Fu.nctions of the Board.
7· The Board shall be the legal owner of the school and all its properties
and the employer of all employees of the school including its Principal.
The Chairman shall be the appointing authority of all employees of the
school including its Principal. The Board's prior sanction shall be ob-
tained (in an Annual Meeting or a Special Meeting) by the Executive
Committee before any immovable properties are acquired by outright
purchase or disposed of by way of sale or otherwise, and such acquisitions
and disposals shall be made in the name of the Board.
The Board shall, in its Annual Meeting, appoint an auditor (which term
includes afirm of auditors) who is qualified to audit Company Accounts,
to audit the accounts of the school for the year in which the Annual
Meeting is held:
Provided that the same auditor shall not be appointed for more
than three consecutive years.
The Board may remove any member of' the Executive Committee in a
Special Meeting summoned at the instance of the Chairman for proved
misuse of power and grave infringement of the provisions of this Act and
the regulations made thereunder, and make such transitory provisions as
it deems fit to remedy the vacancy thus caused.
Any alterations in the structure of the school of the type described below
shall be within the exclusive competence of the Board, and it maycon-
sieler them in an Annual Meeting or a Special Meeting;-
(i)
(ii)
Change in the medium of instruction in the school.
Abolition or addition of class. (Provided that this docs not apply
to abolition or addition of adivision or section of an existing class).
Proceedings of the
Board.
Board as owner and
employer.
Property transactions.
Appointment of
auditor.
Removal ofmember :
ofExecutive
Committee..
Certain alterations of
school-structurewith.
in exclusive compe-
tence of Board.

Transfer of school
property and other
properties.
The TN A Board
Fund.
The TNA Captial
. lund.: . . .
Application of the
Fiind~'
Tower ofExecutive
Committee to nego-
Ilate regarding
transactions.
4
(iii) Change over of the affiliation of the school to a1Y Board, Councilor
other body for Examinations to any other Board, Council or other
body for Examinations.
CHAPTER IV
Finance, Properties and Accounts
8. On and from the appointed day, the land, buildings, fctrnitbre and equip-
merits or any other assets, in which the school is on that day housed or,
as the Case may be, which are on that day owned by the school or owned
by the Government, but given over for the use or benefit of the school,
shall stand transferred to, and vest in, the Board.
The Government may, at any time, transfer to the Board, any land, build.
ings or any other property, movable or immovable, either absolutely or on .
lease, for me and management by the Board to run the school and comply
with the provisions of this Act.
The Board shall have a fund to be called the Tashi N,\mgyal Academy
Board Fund.
9·
10 .
(2) The Board may accept grants, subventions, donations and gifts and loans
from the Government or a local authority or any individual or body,
whether incorporated or not, for all or any of the purposes of this Act.
(3) The Government may, from time to time, make grants to the Board
including grant of part or whole of the amount required to meet the ex-
penditure on establishment of the Board.
(4) All moneys received by or on behalf of the Board, all proceeds of sale of
land or any other propertY', all rents, betterment charges and all interest,
profits and other moneys accruing to the Board shall be deposited in the
Iund of the Board;
Provided that the provisions of this sub-section shall not apply
to the TNA Capital Fund referred to in section I D. '
The Government shall, on the date of commencement of this Act, or
as ~oon thereafter as possible, transfer absolutely a sum of rupees five
lacs which shall form the nucleus of the corpus of a fund to be created
and known as the TNA Capital Fund, the income from which is to be
exclusively used for purpose of acquisition of new capital assets (moveable
or immovable) and the maintenance of the land and buildings of the school.
TheGovernment may, through periodical grants enhance the corpus of
the said Fund to such limit as it may deem fit. '
1.
The Government may, in respect of the Fund referred to in sub-section
(I). lay down such rules regarding the custody and management of the
said Fund as it deems fit, and such restrictions and stipulations as it deems
fit to ensure that the corpus of the Fund is preserved and the income
therefrom is utili sed only for the purposes stated in the said sub-section.
All property, fund and all other assets vested in the Board shall be held and
applied by it subject to the provisions and for the purposes of this Act.
Subject to the provisions of sub-section (2) of section 7, all transactions
in money and property covered in this Chapter shall be entered into and
carried out by the Executive Committee on behalf of the Board. and
it shall have power to enter into and carry out such transactions with-
out prior reference to the Board:
Provided that -
12. (I)
(a) all such transactions are within the competence of the Board; and
(b) all such transactions are reported to the Board in the immediately
following Annual Meeting.

4 [Explanation I.-A barter that is, sale by exchange of'
goods shall be deemed to be a sale only when the exchange
is based or worked out in terms of the value of the goods,
exchanged.]
5 [ Explanation 2.-A sale of goods shall be deemed to
have taken place in the State if it fulfils the requirements of
sub-section (2) of section 4 of the Central Sales Tax Act,
1956; ] 74 of 1956.
(n) "sale price" means the amount payable to a dealer
as consideration for the sale of goods, less any sum
allowed as cash discount but inclusive of any sum cbarged
for anything done by the dealer in respect of the goods at
the time of or before the delivery thereof other than the
cost of freight or delivery or the cost of installation in
cases where such cost is separately charged;
Explanation 1.- The term cash discount shall refer only
to the discount allowed by the seller to the buyer for the pro-
mpt or prior or early payment of sale price according to the
practice prevailing in the trade;
Explanation 2.- The tax levied under this Act on the
transaction of sale shall not form part of the sale price for
the purpose of this Act. only if it is actually leviable under
this Act on the seller and is recovered by the seller from the
buyer by showing it separately as such in the cash memos, in-
voices or other sale memoranda;
6 [ "Explanation 3.- 10 respect of goods delivered 00
hire purchase or any system of payment by instalments, tho
sale price on the date of such delivery shall, for the purposes
of this Act, be determined in such manner as may be prescri-
bed." ]
.t
7 [ "Explanation 4.- The sale price shall include the excise
duty, fee or any other levies on the goods, under any Central
or State law for the time being in force, made at the time of
4. Renumbered by the Sikkim Sales Tax (Amendment) Act No.4 of 1986 w. e. f. 1/4/86
5. Renumbered by the Sikkim Sales Tax (Amendment) Act No.4 of 1986 w. e. f. 6/4/86
6. Subsitituted by the Sikkirn Sales Tax (Amendment) Act No.4 of 1986 w. e. f. 1/4/86
7. Inserted by the Sikkirn Sales Tax (Amendment) Act No.4 of 1986 w.e. f. 1/4/86

or before the delivery of the goods to the buyer whether such
duty, fee or other levy is paid by the purchaser of the goods
to the seller along with the consideration for the sale or direc-
tly to the Government."]
(0) "Sikkim" means the territory comprised in the State
of Sikkim;
(p) "State Government" means the Government of Sikkim;
(q) "Tax" means tax payable under this Act;
(r) "turnover" used in relation to any period means the ag-
gregate of sale price or part of sale price receivable or if
a dealer so elects. actually received by the dealer during
such period after deducting the amounts if any, refunded
by the dealer in respect, of any goods returned by the
purcbaser within such period as may be prescribed:
Provided that an election as aforesaid once made shall
not be altered except with the permission of the Commis-
sioner and on such terms and conditions as he may think
fit to impose;
Explanation.-The turnover of sales shall include amounts
realised by a dealer by sale of surplus, unserviceable and discarded
goods, fixed or other assets of the business. bye-prod ucts and
subsidiary products of manufature or processing but shall not
include sales in a canteen owned and run by the dealer for
the benefit of his workman or labourers;
(s) "year" means the financial year commencing on the
first day of April and ending on the 31st day of March next
following.
CHAPTER II
Taxation authorities
3. (1) For carrying out the purposes of this Act. the State
Government may appoint a person to be Commissioner of
Commercial Taxes and such other persons with such desig-
nation to assist him as may be necessaryand as may be
specified III this behalf by the State Government by noti-
fication.
'J
Taxing Authorities.

(2) The Commissioner and other persons appointed under
sub-section (1) shall exercise such powers as may be pres-
cribed and perform such duties as are imposed upon them
by this Act or rules made thereunder within such areas
in the State as may be specified in th is behalf by the
State Government by notification.
(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.
45 of 1860
CHAPTER III
Incidence of Taxes
4. There shall be paid by every dealer who sells sf goods manufac-
tured, imported, produced or purchased by him in the State,
a tax on sales made on and from the date of commencement
of this Act.
Incidence of
taxation.
5. (I) The tax payable by a dealer under this Act shall be levied
on taxable turnover at the following rates,-
Rate of tax.
(a) in respect of goods specified in Schedule II, at the
rate of ten paise in the rupee;
(b) in respect of declared goods, at such rate not excee-
ding four paise in the rupee as the State Government may,
from time to time, by notification, specify;
(c) in respect of any other goods at such rate not exce-
eding five paise in the rupee as the State Government
may, from time to time, by notification, specify;
"
(2) Notwithstanding anything contained in sub-section (1 I,
the State Government may, in public interest, by notifica-
tion and subject to such conditions as may be specified
therein, direct that no tax or a lower rate of tax shall be
payable in respect of any specified transactions or goods or
class of dealers and such notification may be given such
retrospective or prospective effect as may be specified therein.
(~) For the purposes of this Act, the expression 'taxable
turnover' means that part of dealer's gross turnover during
the prescribed period in any year which remains after de-
ducting therefrom-
8. Inserted by the Sikkim Sales Tax (Amendment) Act No. 4 of 1986 with effect from
12J5f1983.

(a) his turnover during that period on-
(i) the sales, at the subsequent stages of sales, of such
goods as are specified. by a notification, issued under
section 6 to be subject to tax at the first point in the
series of sales in Sikk im in respect of which tax due
under this Act is shown to have been paid to the sa-
tisfaction of the prescribed authority;
(ii) the sales of goods exempted under section 8;
(iii) the transactions not liable to tax under section 9;
(iv) the sales of goods which are proved to the satis-
faction of the Commissioner to have already been sub-
jected to tax under th is Act;
(v) the sales to a registered dealer-
(a) of goods of the class or classes specified in the certi-
ficate of registration of such dealer, as being intended for
use by him as raw materials in the manufacture in the
State of any goods, other than goods declared as tax-free
under section 8,-
(l) for sale inside the State ; or
(2) for sale in the course of inter-State trade or comme-
rce, being sale occasioning or effected by transfer of docu-
ments of title to such goods during the movement of
such goods from the State; or
(3) for sale in the course of export outside India being
a sale occasioning the movement of such goods from the
State, or a sale effected by transfer of documents of title
to such goods during the movement of such goods from
the State, to a place outside India and after the goods
crossed the customs frontiers of India; or
(b) of the goods other than those notified under section
6 as taxable at the first point in the series of sales, of the
class or classes specified in the certificate of registration of
such a dealer as being intended for resale by him in the
State or for sale in the course of inter-State trade or commerce
or in the course of export outside India in the manner specified
in item (2) or item' (3) of item (a) of this sub-clause as
the case may be; and

(c) 'of containers' or other materials for the packing
of goods of the class or classes specified in the certificate
of, registration of such dealer, other than declared goods inten-
ded for sale or re-sale:
Provided that no deduction in respect of sale referred
to in sub-clause (v) shall be allowed unless a true declara-
tion duly filled and signed by the registered dealer to whom
the goods are sold, and containing the prescribed particulars
in the prescribed form is furnished in the prescribed manner
and within the prescribed time, by the dealer who sells
the goo.Is :
Provided further that where any goods are purchased
by a registered dealer for any of the purposes mentioned
in sub-clause (v) but are utilised by him for a different
purpose, the price of the goods so purchased shall be allowed
to be deducted from the gross turnover of the sell ing dealer
but shall be included in the taxable turnover of the
purchasing dealer;
(vi) such other transactions as are exempted from payment
of tax by a notification issued under sub-section (2).
6. Notwithstanding anything contained in this Act, the Gov-
ernment may, by notification in the Official Gazette, specify the
point of sale at which any goods or class of goods may be
taxed.
7_ The burden of proving that the dealer is not liable to pay
tax under this Act in respect or' any sale effected by him,
shall lie on him.
8. (l) No tax shall be payable under this Act on the sale
of goods specified in Schedule I subject to the condi-
tions and exceptions, if any, set out therein.
(2) The State Government, after giving by notification such
previous notice as it considers reasonable of its intention
so to do, may add to or omit from, or otherwise
amend Sched ule I and thereupon the said Schedule shall
be deemed to be amended accordingly:
Provided that the said -nobification may be given
such retrospective 'or prospective effect as may be
specified therein.
Powers of Government
to prescribe point at
which goods may be
taxed,
Burden of proof.
Tax-free goods.

9. Nothing in this Actor the rules made thereunder shall
be deemed to impose or authorise the imposition of tax
on any sale of purchase of any goods when such sale or
purchase takes place-
(i) in the course of inter-State trade or commerce; or
(ii) outside the State; or
(iii) in the course of import of goods into, or export of
goods out of, the territory of India.
CHAPTER IV
Registration of dealers, etc.
IQ. (1) Every dealer liable to pay tax under this Act shall
apply, within 30 days of his becoming so liable, to the
prescribed authority for registration under this Act.
(2) No dealer liable to pay tax under this Act. shall sell
or purchase goods unless he is in possession of a valid
registration certificate granted to him by or on behalf
of the prescribed authority or has applied for such regis-
tration within the time specified in sub-section (1) and
his application has not been finalJy disposed of by the
said authority.
(3) The prescribed authority may, on receipt of application
in the prescribed form from a dealer for registration, and
on being satisfied that the application is in order. grant
registration from such date as maybe specified. to such
dealer:
Provided that the said authority granting the certifi-
cate may demand such security from the dealer as may
be prescribed before the registration is granted to him:
Provided further that no application for registration
made by a dealer shall be refused. or partly granted un-
less he has been given a reasonable opportunity of being
heard before the order is passed.
(4) If the prescribed authority is satisfied that a dealer
liable to pay tax under this Act has failed to apply for
and get himself registered, jt may, by a notice in writing,
direct the dealer to apply fo~ and get himself registered
certain sale and
purchases not liable
to tax.
Registration of
dealers.

within 15 days of the service of the notice, failing which
the dealer shall be liable to pay a penalty of rupees tw-
enty-five for each day's delay after the expiry of the said
period of 15 days:
Provided that the said authority may, on an application
by the dealer and for reasons to be recorded in writing,
reduce or waive the penalty, if it is satisfied that the de-
lay bas been caused by reasons beyond the control of the
dealer.
(5) The registration certificate shall be in the prescribed
form and contain such particulars as may be prescribed.
The prescribed authority may on its own motion for re-
SODS to be recorded in writing or on an application by
the dealer, cancel, vary, n.odify, or amend any registra-
tion C';1 t ificate granted under sub-section 5:
Provided that a regist.rat.ion certificate shan cease to
be in force when the dealer bas ceased to be liable to
pay tax under this Act or his business has been closed :
Provided further that when the registration certifi-
cate is cancelled, varied, modified or amended otherwise
than on application by dealer or when the application ma-
de by the dealer for the purpose is proposed to be reje-
cted in whole or in part, a reasonable opportunity of
being heard or to show cause against the proposed acti-
on shall be g.ven to the dealer.
(7) The registration certificate gran led to a dealer shall
not be transferable and if the business to which it re-
lates is transferred to another dealer, then that other de-
aler shall apply and get himself registered under sub-
section (I) and (2) unless he is already registered.
CHAPTER V
Return, Assessment, Recovery and Refund of Tax.
11. (1) Every registered dealer shall furnish such returns
for such periods in such form, to such authority and wi-
thin such time as may be prescribed:
Returns and
payment of tax.

Provided that if a dealer,· having furnished a return
discovers any omission, error or wrong statement therein,
he may furnish a revised return in such manner as may
be directed by the aforesaid authority at any time before
the said authority passes the order determining the amo-
unt of tax payable by the dealer for the period for which
the return has been furnished:
Provided further that the said authority may, for
reasons to be recorded and after giving the dealer a rea-
sonable opportunity of being heard, refuse to take the
revised return into consideration if it is satisfied that tbe
original or the revised return was deliberately false and
it was furnished with intent to defraud the State Govern-
ment of its revenue.
Explanation.-A dealer who is granted registration from
any particular date shall also be liable after the grant of such
registration, to furnish return also for the period prior to such
date during which he was liable to pay tax under this Act, in such
manner and within such' time as may be prescribed.
(2) The dealer shall, before furnishing any return or revi-
sed return referred to in sub-section (I) pay to the Go-
vernment in such manner and within such time as may
be prescribed the amount of tax due under this Act accor-
ding to the return or the revised return, as the case may
be, and furnish along with the return or the revised return,
such proof of the payment of tax due as may be prescri-
bed, and any such return or revised return if not accom-
panied by any such proof of payment shall be deemed
invalid and treated as if it has not been furnished,
(3) If a registered dealer fails, without reasonable cause
to furnish any valid return within the time prescribed or
within such further time as may be allowed on application,
by the prescribed authority, a penalty at the rate not
exceeding rupees five for each day of delay shall be im-
posed without prejudice to any action which 18 or may
be taken under any of the other provisions of this Act.
]2. A rebate shall be allowed at the rate of one per cent of
the amount of tax paid by the dealer within the time
prescribed under sub-section (2) of section 11 :
Rebate.

Provided that where the amount of tax finally asse-
ssed on the dealer is less than the tax paid by the dea-
ler. the rebate shall be allowed only on the amount so
assessed.
13. (1) If the prescribed authority is satisfied that the retu-
rn of turnover furnished by a dealer is correct and com-
plete. it may, without requiring the presence of tbe dealer
or production of any further evidence by him, determine
the amount of tax due from bim.
(2) (a) If the prescribed authority is not satisfied as
aforesaid but requires the presence of the dealer
or the production of evidence by him, it may serve
on such dealer a notice in the prescribed form
requiring him or his representative to attend and
produce or cause to be produced on a date to be
specified, any evidence that such dealer may rely on
in support of his return.
(b) On the date specified in the notice issued under
clause (a) or on such other date as may be fixed
by the prescribed authority under intimation to the
dealer, and after hearing or examining or taking
into consideration such evidence as the dealer may
produce and such other evidence as the said auth-
ority may require on specified points, it shall by
an order in writing, assess and determine the tax
payable by the dealer :
Provided that no evidence, not produced by or on
behalf of the dealer, shall be taken into consideration
without giving a reasonable opportunity to tbe dealer
to rebut such evidence.
(3) If a registered dealer fails to-
(a) furnish any valid return of turnover as required
in sub-section (1) of section 11; or
(b) comply with the notice issued under sub-section
(2) of this section; or
(c) satisfy the assessing authority about the correct-
ness of the returns furnished; or
Procedure tn
assessment and
re-assessment.

(d) appear or produce or cause to be produced evi-
dence on the date specified under sub-section (2);
the prescribed authority shall, after giving a reasonable
opportunity to the dealer of being heard, determine the
taxable turnover of the dealer to the best of its judg-
ment and assess the tax on the basis of such determina-
tion and may, in addition, impose penalty of an amount
not exceeding one half of the amount of tax so assessed:
Provided that no penalty under this sub-section shall
be imposed unless the prescribed authority is satisfied that the
failure of the dealer was wilful, deliberate or unjustified
and unleas a reasonable opportunity of being heard is
given to the dealer:
Provided further that in cases covered by clause (a) of
this sub-section, no proceedings for assessment shall be
initiated after the expiry of four years from the expiry of
the relevant period due for assessment or in cases in which
the assessment is made as a result of an order in appeal,
revision or review, after the expiry of two years from the
date of such order.
(4) If upon information received, the prescribed authority'
is satisfied that a dealer liable to pay tax under this Act
in respect of any period wilfully failed to apply for re-
gistration under sub-section (1) of section 10 or having
applied, wilfully failed to furnish any particulars or infor-
mation required for the purpose of registration or having
been registered fails to furnish returns within the period
prescribed under sub-section (1) of section 11, the said
authority shall, after giving the dealer a reasonable oppor-
tunityof being beard, assess, according to its best judg-
ment, the amount of tax due from the dealer for such
period or any subsequent periods and in addition, may
impose a penalty of an amount not exceeding one half
of the amount. of tax 80 assessed:
Provided that no proceedings under this sub-section
shal1 be initiated after four years from the expiry of such
period.

Explanation.- For the purpose of sub-section (3) or
sub-section (4), as the case may be, the proceedings shall be
deemed to have been initiated when a notice therefor is served
or deemed to have been served on the dealer.
(5) If upon information which has come into possession,
the prescribed authority has reason to believe than any
turnover of a registered dealer in respect of any period
has for any reason escaped assessment or was under-asse-
ssed or assessed at a rate or rates lower than the rate
or rates correctly applicable, or any deduction from turn-
over had been wrongly made, it shall, within six years of
the expiry of such period, serve on the dealer a notice in
the prescribed Form and proceed to. assess or reassess
the amount of tax due from tbe dealer in respect of
such turnover in the manner specified by or under this
section:
Provided that the amount of tax shall be assessed or
re-assessed after allowing such deduction and applying the
same rate of tax as was admissible during the said period:
Provided further that the said authority may, after giving
reasonable opportunity to the dealer of being beard, Im-
pose a penalty not exceeding the amount of extra tax
found leviable in the proceedings under this sub-section, if it
is satisfied that the escape from assessment or under-
assessment bad been caused by the deliberate and wilful
failure on the part of the dealer-
(a) to disclose, at the time of original assessment
the particulars of such turnover; or
(b) to furnish correct particulars.
14. (1) The tax admitted by the dealer to be due in any return Procedure of payment
or revised return furnished by him under section 11 shall of tax or penalty.
be paid in the manner prescribed by or under sub-section
(2) of that section.
(2) The amount of the tax and penalty assessed as due
from the dealer under sub-section ('3) of section 1I or
under sect.ion 13 after rledncting any amount' paid by him
along with (he return under sub-section (2) of sectionII
shall be paid by him in such manner and within such time
as may be specified in the notice of demand in the prescribed
Form issued by the prescribed authority; the date so specified

being not less than 30 days from the date of service of
the said notice:
Provided that the said authority may, in its discretion
and for reasons to be recorded, 00 application by the dealer
extend the date for such payment or allow the payment
to be made in such instalments as may be determined
by it.
(3) If a dealer has failed, without reasonable cause, to
make payment of any amount of tax together with the
penalty, if any, by the date specified in the notice issued
under sub-section (2) or by the date extended under the
proviso thereto, interest at ten per cent per annum shall accrue
and be charged on such amount from such date and such
interest shall be treated as if it were tax due under this
Act and shall be paid by the dealer in the prescribed
manner:
Provided that interest shall not accrue or be charged
on any amount the recovery of which is stayed under
sub-section (5) during the period the stay operates.
(4) Any amount of tax, penalty or interest due from a
dealer, which remains unpaid may be recovered on appli-
cation by the prescribed authority to the Judicial Magi-
strate of the first class who shall realise it as if it we-
re a fine imposed by him:
Provided that where, during the proceedings under
this sub-section, the amount of tax, penalty or interest due
from the dealer is reduced as a result of appeal or oth-
erwise, the prescribed authority shall inform the dealer and
the authority before whom the proceedings are pending,
and the amount so reduced and the reduced amount shall be
deemed to be substituted for the amount originally intimated
to the authority.
(5) Where an appeal against or an application for revi-
sion of the assessment of tax or levy of penalty or in-
terest is entertained, the appellate or the revisional autho-
rity as the case may be, may on application stay recovery of
the tax, penalty or interest in whole or in part, subject
to such conditions as it may impose till such date as it
may direct:

Provided' that' the stay of recovery 80 granted shall
stand vacated on the date tbe appeal or the application
for revision is finally decided or on such other date as the
appellate or the revisional authority may direct.
(6) No such proceedings for the recovery of tax under
this section shall be commenced after the expiry of twe-
lve years from the date on which the assessment was
made:
Provided that where the assessment was under appeal
or under any other proceedings under this Act, the afore-
said period of limitation shall commence from the date
the appeal or otber proceedings were terminated.
15. (1) No person other tban a registered dealer shall collect
or recover from any person any amount towards tax or
purporting to be tax under this Act on the sale of goods.
(2) No registered dealers shall collect from any person
any such amount except in a case in which, and to the
extent to which, such dealer is liable to pay tax under
this Act:
Provided that where a registered dealer is in doubt
about his liability, he may collect and keep in deposit
the tax so collected towards his anticipated liability of
tax; but shall refund the deposit to the person from wh-
om it was collected or to his successors or assignees, if any,
to the extent upto which it is finally determined in the
proceedings under this Act, that the dealer is held not so
liable.
(3) Nothing contained in sub-section (1) or sub-section (2)
shaii relieve a registered dealer from his liability for the
tax under this Act.
16. (1) Subject to such rules as may be made the amount of tax,
penalty or interest paid in excess of the amount finally
determined as payable by the dealer under this Act, shall
be refunded to him, on his application within 60 days of
the date on which the applicaton is filed by him:
Provided that such application shall not be enter-
tained unless it is filed before the prescribed authority
within twelve months from the date on which the
order of assessment was passed:
Person authorised
to collect tax
from purchasers.
Procedure when
tax is paid in
excess.

Provided further that where the assessment was UD-
der appeal, revision or any other proceedings under this
Act, the said period of limitation shall commence from
the date on which the order in appeal, revision or other
proceedings is passed:
Provided also that any dealer may, by application.
request or the prescribed authority may, on its own mo-
tion, set off the refund due against any other dues of
the dealer under this Act or under any other Act.
(2) Where a tax has been levied under this Act in res-
pect of sales or purchases inside the State of any declared
good sand such goods are subsequently sold in the course of
inter-State trade or commerce, the tax 80 levied shall
be re-irnbursed to the person making such sale in the
course of inter-State trade or commerce, in such manner
and subject to such conditions as may be prescribed:
Provided that no such reimbursement shall be made
unless an application in writing is made before the pres-
cribed authority under this Act within twelve months of
the date on which the inter-State sale is made, which pe-
riod may be extended for sufficient cause by the said au-
thority by such time as may be considered necessary by
it for reasons to be recorded in writing.
9 ["(3) where any goods are delivered under any agree-
ment of hire-purchase or of any system of payment by
instalments and tax under this Act has been levied on the
dealer who made the delivery of the said goods and such
goods are returned to the said dealer at any time duri-
ng which the agreement of hire-purchase subsists, the
proportionate amount of tax levied on the unpaid instal-
ments of sale price shall be refunded to the said dealer:
Provided that no such refund shall be admissible un-
less a claim therefor is filed before the prescribed autho-
rity in such manner and within such time as may be
prescribed. ")
'l~."
17. (I) Every dealer liable to pay tax under this Act, who
is an Undivided Hindu Family. a firm, company, corpo-
ration, society, club or association shall furnish to the
Declaration by
the dealer,
9. Inserted by the Sikkirn Sales Tax (Amendment) Act No. 4 of 1986 w.e.f', l.
4. 1986.

prescribed authority
th e prescri bed time,
prescribed particulars
to be in charge of the
in the prescribed manner and within
a declaration stating the name and
of the person who shall be deemed
business for the purpose of this Act.
(2) Any statement made, return furnished, accounts, registers
and documents produced 01' evidence given by such person
or any other person auihorised by him or by the dealer in this
behalf, in the course of any proceedings under this Act, shall
be binding on and enforceable against the dealer.
CHAPTER VI
Maintenance and production of accounts by the dealer.
18. (I) Every registered dealer shall keep a true and comp-
lete account in respect of all goods produced, raised, ma-
nufactured, processed, purchased, sold or delivered by him;
Provided that the Commissioner may, by notification,
lay down the forms or registers or the manner in which
the said dealers shall maintain the accounts as aforsaid
as well as cash memoranda, bills, invoices etc, and
the dealer shall maintain the accounts and documents
accord ingly.
(2) The prescribed authority may direct the dealer to pro-
duce accounts or any information in such manner as may
be required for the purpose of assessment of tax under
this Act if the said authority is not satisfied that the
accounts maintained and produced by the dealer are suffi-
ciently clear and intelligible for determining the correct
amount of the tax payable by the dealer.
(3) Subject to such rules as may be made by the
Government under this Act, the prescribed authority
either before or after the assessment of tax under
State
may,
this
Act, require any dealer, including a dealer not registered
under this Act, to produce before him all or any of the
accounts, registers and documents maintained by the dea-
ler and also to furnish any information relating to finan-:
cia! transactions of the dealer relating to his business,
including information regarding stocks of goods held, im-
ported, produced, manufactured, processed, bought, sold
or delivered, the sale price realised, the profit derived
therefrom, and the dealer shall comply with such requirements.
Liability to main-
tain and
produce accounts
and supply of
information.

(4) Subject as aforesaid, all accounts and documents con-
nected with the business of the dealer, stocks of all goods
purchased or kept by him for sale, the cash, or bank
pass books, statements or deposit receipts kept in any
place of business shall at all reasonable times. be open
to inspection and search by the prescribed authority or by
any person appointed to assist him under sub-section (1)
of section 3 or by such other person as may be authori-
sed by him for the purpose in writing and the dealer
shall render all possible assistance to such authority or
person in the search or inspection, as the case may be.
.;
Explanation I.-It shall be open to the said autho-
rity or person to take or cause to be taken such copies of,
or extracts from, the aforesaid accounts, registers and documents
as may be considered by it or him necessary and to require the
dealer or any of his employees present at the time to authen-
ticate or witness such copies or extracts, as the case may be.
Explanation 2.- The authority or person may, subject
to such rules as may be made, break open any door. window,
alrnirah, safe or other containers in the place of business in
which he has reason to believe that the dealer has kept or is
keeping any accounts, registers or documents or stocks of goods
or cash relating to the business which the dealer has refused
to open or produce for inspection.
(5) If the prescribed authority has reason to suspect that
any dealer is attempting to evade the payment of any
tax due under this Act or under the Central Sales Tax
Act, 1956, such authority or person may, for reasons to be
recorded In wntmg, seize or cause to be seized such
accounts, registers or documents including bank pass books
or statements, as may be considered necessary, and shall
grant a receipt for the same. Such seized accounts, re-
gisters or documents may be retained by the said autho-
rity for so long as may be necessary for examination or
for conducting any prosecution under section 23 and shall
thereafter be returned to the dea ler who shall acknowledge
In writing the receipt of the same:
74 of 1956.
Provided that the seized accounts, registers and do-
cuments shall not be retained by any authority other than
the prescribed authority for over 90 days save with the
approval, in writing, obtained from the prescribed authority.

19. (1) Notwithstandingariything contained to the contrary in
any agreement, contract or understanding, when the owner-
ship of a business of a dealer liable to pay tax under thisI
Act, is transferred in whole or in part, the transferor or
the transferee shall be jointly or severally liable for
informing the particulars of the transfer to the prescribed
authority in such manner as may be prescribed and for
the payment of any tax, penalty or interest. if any, paya-
ble in respect of such business and remaining unpaid at
the time of such transfer.
(2) Where a dealer from whom any amount is due tow-
ards tax, penalty or interest dies, the executor, receiver,
manager, administrator or successors-in-interest to his estate
or any other legal representative including a Court of
Warde shall be liable to inform the prescribed authority
in such manner as may be prescribed and to payout of
the property of the deceased the amount so payable and
shall also be liable and responsible to attend and parti-
cipate or be represented in all proceedings under this Act
pending at the time of the death of the dealer:
Provided that nothing in this sub-section shall require
re-issue of notices or intimation already issued to tbe
dealer and the proceedings pending on the date of death
of the dealer shall be continued as if the said dealer is
substituted by the person or persons mentioned in this
sub-section.
(3) Where the dealer is a minor or rs incapacitated and
his business is carried on by any other person on bis
behalf, whether he 

Excerpt shown. Open the full act in Lexace.

‹ Prev All Sikkim acts Next ›