The Uttarakhand Cess Act,2015

THE UTTARAKHAND CESS ACT, 2015 
[UTTARAKHAND ACT  NO.  23 OF 2015] 
 
AN 
ACT 
                      to provide for the purpose of State Disease Fund (Rajya Vyadhi Nidhi) and 
other matters connected therewith incidental thereto: 
 
        Be it enacted by the Uttrakhand Legislative Assembly in the Sixty-sixth Year 
of the Republic of India as follows:- 
 
 
Short title, Extent 
and 
Commencement  
1. (1) This Act may be called the Uttarakhand Cess Act, 2015. 
(2) It extends to the whole of Uttarakhand. 
(3) It shall come into force o n such date as the State Government 
may, by notification appoint and different dates may be 
appointed for different provisions of this Act. 
Definition  2. In this Act, and the context otherwise requires - 
(a)  “Cess” means a charge levied for meeting the obje ctives of 
this Act ; 
(b) “Commissioner” means the Commissioner as defined in 
section 2 of the Uttrakhand Vat Act, 2005; 
(c)  “Dealer” means dealer as defined in section 2 of the 
Uttrakhand Value Added Act, 2005; 
(d)  “Goods” means goods as defined in section 2 of the 
Uttrakhand Value Added Act, 2005; 
(e) “Notification” means a notification published in the official 
Gazette of the State of Uttrakhand; 
(f) “Person” means person as defined in section 2 of the 
Uttrakhand Value Added Act, 2005; 
(g) “Prescribed” means prescribed by the Act or by rules made 
thereunder.  
(h) “Rules” means the rules made by the State Government 
under this Act; 
(i) “Sale” means sale as defined in section 2 of the Uttrkahnd 
Value Added Act, 2005; 
(j) “Sale Price” means sale price as defined in section 2 of the 
Uttrakhand Value Added Act, 2005; 
         1{Provided that the amount of tax under Uttarakhand 
Value Added Tax Act, 2005 (Act No. 27 of 2005), if 
separately charged by the dealer shall not be included in the 
sale price.} 
(k) “Schedule” means a schedule appended to this Act; 
(l) “Vehicle” means vehicle as defined in section 2 of the 
Uttrakhand Value Added Act, 2005. 
  Part I 
Cess for Development of Road Infrastructure 
Levy and 
collection of cess 
3 (1)   There shall be levied a cess under this Act;  
(a) for the purpose of de velopment of Road Infrastructure, on the 
sale or purchase of such gods, within the State, as specified in 
Schedule I of this Act, with effect from such sate and at such point 
and at such rate, as the State Government may, by notification in 
the official Gazette, specify provided that such rate shall not exceed 
ten percent of the sale or purchase price of such goods, subject to 
the conditions, if any, as specified in the Schedule –I.  
(b) for the purpose of State Disease Fund (Rajya Vyadhi Nidhi) on 
the sale or purchase of such goods, within the State, as specified in 
Schedule II of this Act, with effect from such date and at such point 
and at such rate, as the State Government may, by notification in 
the Official Gazette, specify:   
...................................................................................  
1- Inserted by section 2 of Uttarakhand Act no. 16 of 2020. 
 
              Provided that such rate shall not exceed ten percent of the 
sale or purchase price of such goods, subject to the conditi ons, if 
any, as specified in the Schedule II.  
(c) for the purpose of protection of environment, on the goods 
carried by road, as specified in Schedule III of this Act, with effect 
from such date and at such point and at such rate, as the State 
Government may, by notification in the official Gazette, specify,  
            provided that such rate shall not exceed Rs. fifty per quintal 
of such goods, or ten percent of the sale or purchase price of the 
goods, as the case may be subject to the conditions, if an y,  as 
specified in the Schedule .  
(2) Every dealer or person, who sells the goods specified in 
Schedule I or Schedule II and who is registered or is liable to be 
registered under the provisions of  the Uttrakhand VAT Act, 2005, 
shall be liable to pay Cess in a manner and within a time, as may be 
prescribed.  
(3) The owner or person duly authorised by such owner or the 
driver or person in -charge of the vehicle or of such goods, as 
specified in Schedule III, in movement, as the case may be, who 
carries or i ntends to carry such goods by road shall, before 
movement of such goods, pay the said Cess or cause such Cess to 
be realized by such person and in such a manner as may be 
prescribed: 
(a) Realization of tax through seller or supplier: 
      Notwithstanding anything contained in any other provision of 
this Act, any person who intends to carry the goods of Schedule III 
to a place outside the State from any seller or supplier within the 
State, shall at the time of taking delivery of the goods from the 
supplier, pay to such supplier the cess payable on carriage of such 
goods to outside the State and the seller or supplier shall receive the 
cess so paid. The seller or supplier shall also be bound to give 
delivery of such goods to the transporter only when the amou nt of 
such cess has been paid by the transporter only when the amount of 
such cess has been paid by the transporter to the seller or supplier. 
The seller or supplier shall deposit the Cess so received, in such 
manner and within such time as may be prescribed.   
(b) where any seller or supplier fails to recover the Cess or fails to 
deposit it under this section, he shall be liable to pay the cess along 
with the interest and penalty to the extent of two times of the cess, 
which shall be recoverable as arrears of land revenue. 
(4) The proceeds of the cess collected under different schedules of 
this Act, shall be applied to specially created funds as follwos; 
 (i) Cess collected under Schedule I shall be applied to the fund 
created for Development of Road Infras tructure and Road Safety 
Measures. 
(ii) Cess collected under Schedule II shall be applied to the State 
Disease Fund (Rajya Vyadhi Nidhi). 
(iii) Cess collected under Schedule III shall be applied to the 
Specially Created Fund for the protection of environme nt 
(Paryavaran Sanrakshan Kosh). 
credit of the 
proceeds of the 
cess or fee to 
specially created 
funds 
4 (1) The proceeds of the cess or the fee shall be applied 
respectively to the specially created funds as detailed in the 
foregoing provisions. 
(2) The a mount in the credit of the above funds shall be at the 
discretion of the State Government and it shall be utilized 
for the purpose for which it is levied and realized. 
(3) If any question arises as to whether a purpose for which the 
fund is being utilized is a purpose falling under section 3 or 
section 4 or section 5, the decision of the State Government 
thereon shall be final and conclusive.  
(4) The person responsible for the payment of the cess, shall 
deposit the amount of cess due from him in such manne r as 
may be prescribed. 
Mutatis Mutandis 
application of 
different acts 
5 (1) Subject to other provisions of this Act and the rules made 
thereunder, the authorities for the time being empowered to assess, 
reassess, collect and enforce payment of any tax un der the 
Uttrakhand Value Added Tax Act, 2005 , shall assess, reassess, 
collect and enforce payment of cess, including any interest or 
penalty payable by a dealer or person, as if the cess or penalty or 
interest payable by such dealer or a person under this Act is a tax or 
penalty or interest payable by such dealer or a person under the 
Uttrakhand Value Added Tax Act, 2005 and for this purpose they 
may exercise all or any of the powers they have under the 
Uttarakhand Value Added Tax Act, 2005and the rules fra med 
thereunder and the provisions of such law, including the provisions 
relating to the returns, provisional assessment, assessment, 
reassessment, rectification, review, advance payment of tax 
registration, imposition of the tax liability, recovery of tax from 
third parties, appeals, reviews, revisions, rectifications, references, 
refunds, rebates, interest or penalty, charging or payment of 
interest, compounding of offences, shall mutatis mutandis apply. 
(2) The provisions of Forest Rules relating to the i ssuance of 
Abhivahan Pass for movement of Timber shall be deemed to be 
part of this Act and the requirements of such Abhivahan Pass to be 
accompanied with Timber before their movement, shall be deemed 
to be mandatory requirement for the purposes of this Act, 
Power of 
commissioner 
6 (1) The Commissioner shall have jurisdiction over whole of the 
State and shall exercise all the powers conferred, and perform all 
the duties imposed upon him by or under the Act or Rules made 
thereunder.  
(2) Consistent with the  provisions of the Act and the Rules made 
thereunder, the Commissioner shall have superintendence over all 
officers and persons employed in the execution of the Act and the 
Rules, and the Commissioner may from time to time issue such 
orders, instructions and directions as he may deem fit for the proper 
administration of the Act and for regulating the procedure to be 
followed in carrying out the provisions of the Act and the rules; 
                Provided that no such instructions or directions shall be 
given so as to interfere with the discretion of the Appellate 
Authority in the exercise of his appellate functions. 
(3) The Commissioner shall have all the powers exercisable by his 
subordinate authorities other than the appellate authorities. 
(4) Subject to such restrictions and conditions as may be specified 
by the Government from time to time, the Commissioner may, by 
order in writing, delegate any of his power and functions under the 
act and the Rules made thereunder,  to any officer subordinate to 
him. 
Inspection of 
accounts, search 
and seizures 
7 With a view to prevent or check avoidance or evasion of cess or 
attempt of evasion of cess, the provisions of chapter VI of 
Uttrkhand Value Added Tax Act, 2005 regarding Inspection of 
Accounts, search and seizures shall mutatis-mutandis apply. 
Sale invoice 8 In case of sale or purchase of goods, the amount of cess 
charged shall be shown separately in the invoice. Other 
provisions of section 60 of UK Vat Act, 2005 regarding sale 
invoice shall mutatis-mutandis apply.  
Powers of State 
Government to 
make rules 
9 The State Government may, by notification in the Official Gazette, 
make rules for carrying out the purposes of this Act. However, 
where no rule has been framed regarding any mater, the Uttrakhand 
Value Added Tax Rule, 2005 shall mutatis-mutandis. 
Indemnity  10 No suit, prosecution or other legal proceedings shall lie against 
the State Government or any officer of the State Government 
for anything, which is done or intended to be done in good faith 
under this Act and rules or regulations made thereunder. 
Power to remove 
difficulties 
11 If any difficulty arises in giving effect to the provisions of this 
Act, the State Government may, by order published in the 
Official Gazette, make such provisions not inconsist ent with 
the provisions of this Act, as may appear to be necessary for 
removing the difficulty.  
Overriding effect 
on other laws 
12 Save as otherwise provided in this Act, the provisions of this Act, 
or rules or regulations or by -laws made thereunder, sha ll have 
effect notwithstanding anything inconsistent therewith contained in 
other law, enacted by the State Legislature and for the time being in 
force in the State of Uttarakhand. 
Bar on 
jurisdiction of 
civil courts 
13 No order passed or action taken und er this Act, rules or 
regulation made thereunder, shall be subject to challenge except 
as provided in this Act and no civil court shall have jurisdiction 
in respect of any mater, which the Authority is empowered to 
decide and adjudicate upon.  
 
 
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Schedule I 
Cess on Sale or Purchase of Goods 
 
[under sub-section (1) (a) of section 3 of the Uttrakhand Cess Act, 2015] 
 
Sl.No. Description of Goods Incidence of Cess Rate 
1 Petrol On first sale of 
goods in the State 
after import into the 
State from outs ide 
the State 
One rupee per liter 
2 Diesel On first sale of 
goods in the State 
after import into the 
State from outside 
the State 
Twenty five paise 
per liter  
 
 
 
 
 
 
Schedule II 
Cess on Sale or Purchase of Goods 
 
[under sub-section (1) (b) of section 3 of the Uttrakhand Cess Act, 2015] 
 
Sl.No. Description of Goods Incidence of Cess Rate of cess 
1 All kinds of Liquor At the point of sale 
to consumer 
two percent of the 
value of the goods 
2 Khaini, Tobacco, Cigarette, 
Gutkha  
At the point of 
manufacture or at 
the point of first 
sale of goods in the 
State, after their 
import from outside 
the State 
two percent of the 
value of the goods 
 
 
 
 
 
 
 
 
 
Schedule III 
Cess on carriage of goods by Road 
 
[under sub-section (1) (c) of section 3 of the Uttrakhand Cess Act, 2015] 
 
Sl.No. Description of Goods Incidence of Cess Rate of Cess 
1 Timber and wood of all kinds 
and of al trees of whatever 
species, whether growing, cut 
or sawn but not including their 
products and firewood. 
on goods being 
carried by road to 
outside the State  
Rs. 50 per quintal  
2 Ready to eat foods (fast foods) 
sold by Pizza Outlets or Fried 
Chicken Outlets, Pre -packed 
eatables, Pre -packed soft 
drinks, fruit drinks, flavoured 
drinks and beverages but not 
including pre -packed lassi, 
buttermilk and milk.  
At the point of 
manufacture or at 
the point of first 
sale of goods in the 
State, after their 
import from outside 
the State 
5 percent of the 
value of the goods. 
 
 
 
 

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