The West Bengal Finance Act, 2003

Registered No. WB/SC-247 	 No. WB(Part-III)/2003/SAR-6 
the 
Roiltata netts 
Extraordinary 
Published by Authority 
CAITRA 10] 	
MONDAY, MARCH 31, 2003 	 [SAKA 1925 
PART III—Acts of the West Bengal Legislature. 
GOVERNMENT OF WEST BENGAL 
LAW DEPARTMENT 
. Legislative 
NOTIFICATION 
No. 572-L.-31st March, 2003.—The following Act of the West Bengal Legislature, having been assented to by 
the Governor, is hereby published for general information:— 
West Bengal Act III of 2003 
THE WEST BENGAL FINANCE ACT, 2003. 
[Passed by the West Bengal Legislature.] 
[Assent of the Governor was first published in the Kolkata Gazette, 
Extraordinary, of the 31st March, 2003.] 
An Act to amend the Bengal Amusements Tax Act, 1922, the Bengal Electricity Duty 
Act, 1935, the Bengal Agricultural Income-tax Act, 1944, the West Bengal Duty 
on Inter-State River Valley Authority Electricity Act, 1973, the West Bengal 
Taxation Tribunal Act, 1987, the West Bengal Sales Tax Act, 1994, and the West 
Bengal State Tax on Consumption or Use of Goods Act, 2001. 
7 	 THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2003 	 [PART III 
The West Bengal Finance Act, 2003. 
Short title and 
commencement. 
Amendment of 
Ben. Act V of 
1922. 
(Sections 1, 2.) 
WHEREAS it is expedient to amend the Bengal Amusements Tax Act, 1922, the 
Bengal Electricity Duty Act, 1935, the Bengal Agricultural Income-tax Act, 1944, the 
West Bengal Duty on Inter-State River Valley Authority Electricity Act, 1973, the 
West Bengal Taxation Tribunal Act, 1987, the West Bengal Sales Tax Act, 1994, and 
the West Bengal State Tax on Consumption or Use of Goods Act, 2001, for the 
purposes and in the manner hereinafter appearing; 
It is hereby enacted in the Fifty-fourth Year of the Republic of India, by the 
Legislature of Wesf Bengal, as follows:- 
1. (1) This Act may be called the West Bengal Finance Act, 2003. 
(2) Save as otherwise provided, it shall come into fOrce on such date, or shall be 
deemed to have come into force on such date as the State Government may, by 
notification in the Official Gazette, appoint, and different dates may be appointed for 
different provisions of this Act. 
2. In the Bengal Amusements Tax Act, 1922,— 
(1) in section 2, after clause (5), the following clause shall be inserted:— 
`(5a) "multiplex theatre complex" means an entertainment-cum-cultural centre 
which provides,— 
(i) in case such entertainment-cum-cultural centre is situated within 
the areas to which the Kolkata Improvement Act, 1911, or the 
Howrah Improvement Act, 1956, extends, not less than four theatres 
in a complex with minimum total seating capacity of 1250, or 
(ii) in case such entertainment-cum-cultural centre is situated in any 
area other than the places referred to in sub-clause (i), not less than 
three theatres in a complex with minimum total seating capacity 
of 1000, 
and such multi-entertainment activities arid facilities and such other incidental 
and connected matters and facilities, as the State Government may, by 
notification in the Official Gazette, specify;'; 
(2) in section 3, after sub-section (3a), the following sub-section shall be inserted:— 
"(3aa) The amount of entertainment tax upon the value of each ticket for 
admission to any multiplex theatre complex shall be such as the State 
Government may, by notification in the Official Gazette, specify."; 
(3) after section 8B, the following section shall be inserted:— 
"Special provision 	 8C. Notwithstanding anything contained elsewhere in for multiplex 
theatre complex. 	 this Act, but subject to such rules as may be prescribed,— 
(a) the proprietor of a new multiplex theatre complex, or the proprietor of 
an existing cinema hall which has been converted into a multiplex theatre 
complex, shall be entitled to retain, by way of subsidy, the amount of 
entertainments tax as collected against the value of ticket for admission 
to such multiplex theatre complex for a period not exceeding— 	 - 
(i) four years, in the case of a new multiplex theatre complex; 
(ii) four years, in the case of an existing cinema hall which has been 
converted into a multiplex theatre complex and where such existing 
hall has not enjoyed benefit as referred to in sub-section (2) of 
section 8B; 
(iii) two years, in the case of an existing cinema hall which has been 
converted to a multiplex theatre complex and where such existing 
cinema hall has enjoyed the benefit as referred to in sub-section (2) 
of section 8B; 
Bcn. Act V of 
1922. 
Ben. Act X of 
1935. 
Ben. Act IV of 
1944. 
West Ben. Act VII 
of 1973. 
West Ben. Act 
VIII of 1987. 
West Ben. Act 
XLIX of 1994. 
West Ben. Act 
XV of 2001 
Ben. Act V of 
1911. 
West Ben. Act 
XIV of t956. 
5. In the West Bengal Duty•on Inter-State River Valley Authority Electricity Act, 
1973,— 
(1) after section 6, the following section shall be inserted:— 
"Interest for non- 	 6A. Where the inter-State river valley authority or payment, Or 
delayed payment, 	 the licensee or the person, liable to pay electricity duty of electricity duty. 	 under section 4, fails to make payment of any sum 
due on account of elctricity duty within the prescribed date, such authority 
or licensee or person shall be liable to pay a simple interest at the rate 
of one per centum for each calendar month of default from the first day 
of such month immediately following the prescribed date up to the month 
preceding the month of full payment of such duty upon so much of the 
amount of the duty payable by such authority or licensee or person as 
remains unpaid at the end of each such month of default"; 
-(2) in section 9, for the words "on account of electricity duty", the words 
"on account of electricity duty or interest" shall be substituted; 
(3) in the Second Schedule,— 
(a) after exemption (8), the following exemption shall be deemed to 
have been inserted with effect from the 1st day of April, 1995:— 
"(9) an expanded portion of an existing industrial unit established 
in a premises by way of expansion, save in respect of premises used 
for the residential purposes, for a period of five years from the date 
of first commercial production in the expanded portion of such 
unit."; 
PART III] 	
THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2003 	 3 
The West Bengal Finance Act, 2003. 
(Sections 3-5.) 
Amendment of 
West Ben. Act VII 
of 1973. 
(b) the proprietor of any multiplex theatre complex referred to in 
clause (a), shall not be entitled to realise the service charge referred to 
in sub-section (3c) of section 3 during the period when such proprietor 
of multiplex theatre complex is allowed to enjoy the benefit of retention 
of entertaiments tax ;  collected by way of subsidy, under clause (a).". 
3. In the Bengal Electricity Duty Act, 1935,— 
(1) in section 5A,— 
(a) in sub-section (1), for the words "two per centutn", the words "one 
per centum" shall be substituted, 
(b) in sub-section (2), for the words "two per centunt", the words "one 
per centum" shall be substituted; 
(2) in section 5B, for the words "two per centum", the words "one per centum" shall be substituted; 
(3) after section 7D, the following section shall be inserted:— 
"Refund. 	 7E. The authority as may be prescribed shall make 
refund, in such manner as may prescribed, the excess 
amount of electricity duty, paid by a person, other than a licensee, who 
generates electricity from a diesel generating plant, or coal-based generating 
plant, or waste-gas-based generating plant, as referred to under sub-
section (1) of section 3, and registered under section 7B.". 
4. In the Bengal Agricultural Income-tax Act, 1944, in the Schedule, for 
paragraph B, the following paragraph shall be substituted:— 
"B. In the case of every domestic company, firm or other association of persons— 
Rate of tax 
30 paise in the rupee.". 
Amendment of 
' Ben. Act X of 
1935. 
Amendment of 
Ben. Act IV of 
1944. 
on the whole of the 
total agricultural 
income. 
4 
	 THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2003 	 [PART III 
The West Bengal Finance Act, 2003. 
(Sections 6, 7.) 
(b) in the Explanation, after clause (3), the following clause shall be 
deemed to have been inserted with effect from the 1st day of April, 
1995:— 
`(4) For the purposes of exemption (9),— 
(a) the expression "existing industrial unit" shall mean an 
industrial unit which exists in West Bengal immediately 
before it starts commercial production for the first time in 
its expanded portion on or after the 1st day of April, 1995; 
(b) the expression "expanded portion", in relation to an existing 
industrial unit, shall mean the portion expanded with 
additional capacity on or after the 1st day of April, 1995, 
either in the existing premises or in any other premises in 
West Bengal.'. 
6. In the West Bengal Taxation Tribunal Act,' 1987, in section 6, in sub-
section (1), for the words and figure "referred to in section 6", the words and figure 
"referred to in section 5" shall be deemed to have been substituted with effect from 
the 1st day of May, 1995. 
7. In the West Bengal Sales Tax Act, 1994,— 
(1) in section 39, after sub-section (3), the following sub-section shall be 
inserted:— 
"(4) Notwithstanding the provisions contained in sub-section (1), but 
subject to the provisions of sub-section (3), every dealer who has been 
enjoying, or has been entitled to enjoy, the benefit of exemption from 
payment of tax under sub-section (1), shall cease to enjoy such benefit 
of exemption on expiry of— 
(a) five years from the date of his first sale of the goods manufactured 
in his newly set up small-scale industrial unit if such unit is situated 
within the area of the Kolkata Metropolitan Planning Area as described 
in the First Schedule to the West Bengal Town and Country (Planning 
and Development) Act, 1979; or 
(b) seven years from the date of his first sale of the goods manufactured 
in his newly set up small-scale industrial unit if such unit is situated 
in any area other than the areas referred to in clause (a): 
Provided that the dealer shall not be entitled to enjoy the benefit 
of exemption for the full period as referred to in clause (a), or clause 
(b), as the case may be, and he shall cease to enjoy such exemption 
from the day immediately following the day on which the aggregate 
of the benefit of exemption from payment of tax enjoyed by the 
dealer under this section, computed from the day of coming into 
force of this sub-section, exceeds two hundred per centtun of the 
gross value of fixed assets. 
Explanation.—For the purposes of this sub-section.— 
(a) the expression "gross value of fixed assets", in relation to a newly 
set up small-scale industrial unit, shall mean the aggregate of actual 
price or premium paid by the dealer for the land, whether freehold 
or leasehold, expenditure incurred by the dealer for construction of 
the factory shed, the cost of plant and machinery including those 
obtained on hire, lease, rent or loan and cost of pollution control 
equipment, on or before the date on which the tax becomes payable 
by such dealer for any return period; 
Amendment of 
West Ben. Act 
VIII of 1987. 
Amendment of 
West Ben. Act 
XLIX of 1994. 
West Ben. Act 
X111 of 1979.  
PART III] 	 THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2003 	 5 
The West Bengal Finance Act, 2003. 
(Section 7.) 
(b) the aggregate of the benefit of exemption enjoyed by the dealer 
under this section shall, notwithstanding that the sale is exempt from 
tax, be determined in such manner, and within such time, as may 
be prescribed, on the basis of the appropriate rate specified in sub-
section (1), or sub-section (2), of section 17 at which the sale would 
have been otherwise subjected to tax, if the dealer had not been 
enjoying the benefit of exemption under this section."; 
(2) in section 73,— 
(a) in sub-section (1), in clause (a), for the words "a way bill in the 
prescribed form containing such particulars as may be prescribed,", 
the words "a way bill in the prescribed form, or such document, 
containing description, quantity or weight and value of the goods 
and such other particulars as may be prescribed," shall be substituted; 
(b) after sub-section (2), the following sub-section shall be inserted:— 
"(2A) Where it appears to the Commissioner that— 
(a) due to failure of any person, dealer or casual trader, no 
way bill in the prescribed form or such document as 
mentioned in clause (a) of sub-section (1), as the case 
may be, could be produced by the transporter before 
him, or 
(b) the way bill in the prescribed form or such document 
as mentioned in clause (a) of sub-section (1), produced 
is fake, false or incorrect in respect of the description, 
quantity or weight and the value of the goods 
transported, or 
(c) the consignor of the goods does not exist at the address 
declared in the way bill in the prescribed form or such 
document as mentioned in clause (a) of sub-section (1), 
as the case may be, 
he shall, for reasons to be recorded in writing, seize such 
goods under section 70 at any checkpost, or at any place, 
referred to in sub-section (2)."; 
(3) in section 88, in sub-section (1), after clause (e), the following clause 
shall be inserted:— 
"(ee) fails to make full amount of penalty imposed under section 7IB; 
or; 
(4) after section 94, the following sections shall be inserted:— 
94A. To ensure that there is no evasion of tax, every 
person intending to organise an exhibition-cum-sale of 
goods, shall obtain a permit from the prescribed authority 
and in such manner, as may be prescribed. 
94B. (1) Where any person contravenes the 
provision of section 94A by organising an exhibition-
cum-sale without obtaining permit, the Commissioner, 
the Special Commissioner or the Additional 
Commissioner may, after giving such person an opportunity of being 
heard, impose upon him a penalty not exceeding fifty thousand rupees. 
(2) A penalty imposed under sub-section (1), shall be paid by the 
person upon whom it is imposed into a Government Treasury or the 
Reserve Bank of India by such date as may be specified by the authority 
referred to in sub-section (1), in a notice to be issued for this purpose, 
and the date so specified shall not be earlier than fifteen days from the 
date of issue of such notice: 
"Permit for 
exhibition-cum-
sale. 
• in such form, 
Penalty for 
organising 
exhibition-cum-
sale in contraven-
tion of section 
94A. 
6 	 THE KOLKATA GAZETTE, EXTRAORDINARY, MARCH 31, 2003 	 [PART III 
The West Bengal Finance Act, 2003. 
(Section 8.) 
Amendment of 
West Ben. Act 
XV of 2001. 
Provided that the authority may. for reasons to be recorded in writing, 
extend the date of payment of the penalty for such period, as he may think 
fit"; 
(5) in Schedule I, after serial No. 14A in column (1) and the entry relating 
thereto in column (2), the following serial No. in column (1) and entry 
relating thereto in column (2) shall be inserted:— 
"14B. Gram flour or any other flour, commonly known as besan, when 
sold during the period from 1.5.1995 to 31.3.2003."; 
(6) in Schedule IV, in Part A,— 
(a) in the entries in column (2) against serial No. 194A in column (1), 
for item (i), the following item shall be deemed to have been substituted 
with effect from the 1st day of July, 1999:— 
"(i) Textile fabrics of all varieties, other than those specified 
elsewhere in this Schedule or in any other Schedule;"; 
(b) after serial No. 204 in column (1) and the entry relating thereto in 
column (2), the following serial No. in column (1) and entry relating 
thereto in column (2) shall be inserted:— 
"204A. Gram flour or any other flour, commonly known as besan, 
other than those specified elsewhere in this Schedule or in 
any other Schedule.". 
8. In the West Bengal State Tax on Consumption or Use of Goods Act, 2001,— 
(1) in section 4, for the words "a tax at such rate, not exceeding fifteen per 
centutn of the value of goods, as the State Government may, by notification, 
fix and different rates may be so fixed in respect of different items of 
goods.", the words, letters, figures and brackets "a tax at the rate specified 
in sub-column (b) of column (3), against the corresponding entry of goods 
in column (2), of Schedule VIIIA, or at the rate fixed under sub-section 
(1) of section 18, of the West Bengal Sales Tax Act, 1994." shall be 
substituted; 
(2) in section 5, the words ", or that such goods have been purchased, or 
procured, from any other local area of the State" shall be omitted; 
(3) in the Schedule, after item No. 24 and the entry relating thereto, the 
following items and entries relating thereto shall be added:- 
- 25. Automated Teller Machine (A.T.M.). 
26. Compact disk. 
27. Generator and generating set. 
28. Lift, whether operated by electricity or steam, and accessories and 
components thereof.". 
West Ben. Act 
XLIX of 1994. 
By order of the Governor, 
A. K. BHATTACHARYA, 
Principal Secy. to the Govt. of West Bengal & 
Secy., Law Department. 
Published by the Controller of Printing and Stationery, West Bengal and printed at Saraswaty Press Ltd. 
(Government of West Bengal Enterprise), Kolkata 700 056. 

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