The West Bengal State Tax On Consumption Or Use Of Goods Act, 2001

GOVERNMENT OF WEST BENGAL 
LAW DEPARTMENT 
Legislative 
West Bengal Act XV of 2001' 
THE WEST BENGAL STATE TAX ON 
CONSUMPTION OR USE OF GOODS 
ACT, 2001. 
[Passed by the West Bengal Legislature.] 
[Assent of the Governor was first published in the Calcutta Gazette, 
Extraordinary, of the 31st July, 2001.] 
An Act to provide for the levy of tax on the entry of certain goods into 
the local areas of the State of West Bengal for Consumption or use in such 
local areas. 
WHEREAS it is expedient to provide for the levy of tax on entry of 
certain goods into the local areas of the State of West Bengal for 
consumption or use therein; 
It is hereby enacted in the Fifty-second Year of the Republic of India, 
by the Legislature of West Bengal, as follows:- 
1. (1) This Act may be called the West Bengal State Tax on 
Consumption or Use of Goods Act, 2001. 
(2) It extends to all local areas in West Bengal. 
(3) It shall come into 'force on such date as the State Government 
may, by notification in the Official Gazette, appoint. 
2. (1) In this Act, unless the context otherwise requires,— 
(a) "consumption or use" shall not include consumption or use, 
by a dealer, of goods brought, or caused to be brought, by 
him into any local area for consumption or use by him 
directly in the manufacture of goods for sale; 
(b) "goods" means the goods specified in the Schedule; 
'For proceedings of the West Bengal Legislative Assembly, see the proceedings of the 
meeting of that Assembly held on the 30th July, 2001. 
'This Act came into force w.e.f. 1.8.2001 vide the Finance (Taxation) Department 
notification No. 2606 (PPU), dt. 1.8.2001, published in the Kolkata Gazette, Extraordinary; 
Part I, dt. 1,8.2001. 
Short title, 
extent and 
commence-
ment. 
Definitions. 
155 
The West Bengal State Tax on Consumption or 
Use of Goods Act, 2001. 
[West Ben. Act 
(Section 2.) 
(c) "local area" means any area of the State within the limits 
of any— 
(i) municipal corporation, 
(ii) municipality, 
(iii) notified area, 
(iv) panchavat. or 
(v) any other area under any other local authority, by 
whatever name called, constituted or continued under 
an Act of the Parliament or the State Legislature; 
(d) "notification" means-a notification published in the Official 
Gazette; 
(e) "person" includes any company, association of persons 
whether incorporated or not. Hindu undivided family, a 
partnership firm. trust, Government. local authority, 
corporation and other statutory bodies; 
(f) "prescribed" means prescribed by rules made under this 
Act; 
(g) "registered dealer" means a dealer registered• in the State 
tinder the West Bengal Sales Tax Act, 1994, or under the 
Central Sales Tax Act, 1956; 
(h) "Schedule" means the Schedule to this Act; 
(i) "tax" means the tax payable under this. Act; 
(j) "Tax Recovery Officermeans the Tax Recovery' Officer as 
defined in clause (36) of section 2 of the West Bengal Sales 
Tax Act, 1994: 
(k) "the State" means the State of West Bengal; 
(1) "The State Government" means the Government of West 
Bengal; 
(m) "value of goods", in relation to any goods, means the 
aggregate of— 
(i) the price paid or payable for such goods or, if the price 
of such goods is not available. the prevailing market 
price of such goods in the local area, 
.(ii) any tax, duty or charges paid or payable in respect of 
such goods before its entry into any local area, 
(iii) the cost of insurance, warehousing, loading, unloading 
and other incidental charges incurred in respect of such 
goods before its entry into any local area, and 
(iv) the cost of freight and delivery for carrying such goods 
to such local area. 
West Ben. 
Act XLIX of 
1994. 
74 of 1956. 
156 
The West Bengal State Tax on Consumption or 
Use of Goods Act. 2001. 
X\ of 2(101.1 
(Sections 3-5.) 
West Ben. 
Act XL1X of 
1994. 
45 of 1860. 
(2) Unless there is anything repugnant in the subject or context, all 
expressions used in this Act, which are not defined, but defined in the 
West Bengal Sales Tax Act, 1994, shall have the same meaning as in 
that Act. 
3. (I ) The State Government shall appoint an authority (hereinafter Taxing 
referred to as the prescribed authority) for varying out the purposes of authorities.  
this Act. 
(2) The State Government may appoint such other persons, being 
the officers of the State Government, to assist the prescribed authority 
as the State Government may think fit and may specify the area or areas 
over which such persons shall exercise jurisdiction. 
(3) Persons appointed under sub-section (2) shall exercise—
(a) such power as may he prescribed: or 
(h) such power as may he delegated to them in writing by the 
prescribed authority, where no prescription is made as 
referred to in clause (a). 
(4) The prescribed authority and the persons appointed under sub-
section (2) shall he deemed to be public servants within the meaning of 
section 2. 41 of the Indian Penal Code. 
(5) No suit, prosecution or other legal proceedings shall lie against 
the prescribed authority or the persons appointed under sub-section (2) 
for anything which is in good faith done, or intended to he done, under 
this Act or the rules made thereunder. 
4. Every person, who brings or causes to be brought any goods into Incidence of 
any local area from any place outside such local area for consumption tax.  
or use therein, shall he liable to pay a tax at such rate, not exceeding 
fifteen per centum of the value of goods, as the State Government may, 
by notification, fix and different rates may he so fixed in respect of 
different items of goods. 
5. Notwithstanding anything contained elsewhere in this Act and 
subject to the conditions and restrictions as may be prescribed, no tax 
shall he levied on the entry of goods into a local area if it is shown to 
the satisfaction of the prescribed authority that such goods have already 
been subjected to tax in any other local area of the State under this Act, 
or that such goods have been purchased,- or procured. from any other 
local area of the State. 
Tax not to he 
levied more 
than once. 
157 
The West Bengal Stare Tax on Consumption or 
Use o Goods Act, 2001. 
[West Ben. Act 
(Sections (5-10.) 
Payment it 
tax. 
Government 
not to pay 
tax. 
Exemption 
from 
payment of 
tax. 
Security to 
be furnished 
in certain 
cases. 
Refund of 
security. 
6. Every person liable to pay tax shall, within thirty clays from the 
date of entry of any goods into any local area for consumption or use 
therein, pay, in the prescribed manner, into a Government Treasury or 
the Reserve Bank of India. the full amount of tax payable by him under 
section 4: 
Provided that if such person has paid any amount as security under 
section 9 in respect of any goods, and the tax payable in respect of such 
goods does not exceed the amount of such security, such person shall 
not be required to make any payment of tax under this section. 
7. No tax shall he payable under section 6. where the goods are 
brought, or caused to he brought, into any local area by any Government: 
Provided that the provisions of this section shall not apply unless it 
is certified by an officer empowered by the Government concerned in 
this behalf that such goods are property of the Government. 
8. No tax shall he payable under section 6— 
(a) by such class of persons, or 
(b) in respect of such class of goods, 
in SUCh circumstances, and subject to such conditions and restrictions, 
as may he prescribed. 
9. For ensuring that there is no evasion by any person of tax 
payable under this Act, the prescribed authority .may. for good and 
sufficient reason, by an order in writing, demand from a person, other 
than a registered dealer, who intends to bring, or intends to cause to be 
brought. any goods into any local area for consumption or use therein. 
a reasonable amount of cash security as may be justified to safeguard 
the interest of revenue. 
10. Where a person. who has paid a cash security demanded from 
him under section 9, makes an application to the prescribed authority 
in writing for refund of such cash security or part thereof on the ground 
that the goods, in respect of which such security was paid by him,— 
(a) have not been brought, or caused to he brought by him. into 
any local area for consumption or use therein; or 
(h) have not been consumed 'or used in any local area of the 
State and have been. within a period of six months of its 
entry into any local area, despatched to any place outside 
all the local areas of the State; or 
158 
The West Bengal State Tax on Consumption or 
Use of Goods Act, 2001. 
XV of 2091.] 
(Sections 11-13.) 
West Ben. 
Xi.IX 
1994. 
(c) have been sold, or used in the execution of works contract 
within six months of its entry into such local area and due 
tax under the West Bengal Sales Tax Act, 1994, has been 
paid under that Act, 
and where the prescribed authority is satisfied about the correctness and 
bonafide of such ground. the prescribed authority shall, ordinarily within 
ninety days from the date of making of such application by such person, 
make refund of such security or part thereof, as the case may be, to such 
person. 
11. Subject to such rules as may he prescrihed.where no application 
is made under section II) within seven months from the date of entry 
of any goods into -any local area, the amount of cash security furnished 
under section 9 shall he deemed to he the tax paid under section 6 by 
the person depositing such security. 
Adjustment 
or security. 
12. ( I ) Where the prescribed authority, upon information or 
otherwise, is satisfied that any person liable to pay tax, in respect of any 
goods brought. or caused to he brought. into any local area— 
(a) has not paid the tax payable by him under section 6: or 
(b) has not paid tax on the actual value of such goods, 
the prescribed authority may, after giving such person an opportunity 
of being heard, in the manner prescribed, determine, by order in writing, 
the amount of tax payable by such person. 
(2) The tax determined under sub-section (1) shall be communicated 
to the person referred to in sub-section (1) in the prescribed manner and 
such person shall pay the tax within thirty days from the date of 
communication of the order made under that sub-section. 
(3) No order shall be passed under sub-section (I) after expiry of 
two years from the date of entry of goods in the local area. 
13. Where any person, without any reasonable cause.— 	 Penalties. 
(a) fails to pay the full amount of tax in accordance with the 
provisions of section 6: or 
(b) brings, or causes to be brought, any goods into any local 
area without furnishing the cash security demanded under 
section 9, 
the prescribed authority may. after giving such person a reasonable 
opportunity of being heard, in the prescribed manner, impose upon such 
person. a penalty not exceeding the-amount which he fails to pay as tax 
under section 6 or as cash security under section 9, as the case may he. 
Determina-
tion of tax 
payable. 
159 
The West Bengal State Tax on Consumption or 
Use of Goods Act, 2001. 
[West Ben. Act 
(Sections 14-16.) 
Search. 
settUre and 
penalty. 
Recovery of 
tax or 
penalty. 
Appeal. 
14. ( ) Where the prescribed authority has reasons to suspect that—
(a) any goods have been brought, or have been caused to be 
brought, into any local area in contravention of the provisions 
of section 9;. or 
(h) the tax paid in respect of any goods brought, or caused to 
be brought. into any local area, has not been paid on actual 
value of goods in accordance with law, 
he may, for reasons to be recorded in writing, search any place. almirah 
or receptacle where, according to his information. such goods are stored. 
(2) Where upon a search made under sub-section (I), the prescribed 
authority has reason to believe that a contravention referred to in clause 
(a), or a failure to pay tax as referred to in clause (h). of that sub-section 
has been committed in respect of any goods, he shall. for reasons to be 
recorded in writing, seize such goods. 
(3) Where a seizure of goods is made under sub-section (2), the 
prescribed authority shall. after giving the person who brought, or caused 
to be brought, such goods into any local area, impose upon such person, 
in the prescribed manner, a penalty not exceeding twice the amount of 
tax payable in respect of such goods. 
(4) The goods seized under sub-section (2) shall not be released until 
the full amount of tax payable under this Act, and penalty imposed under 
sub-section (3), are paid. 
(5) If the tax payable under this Act and the penalty imposed under 
this section are not paid by the date specified in the notice issued by 
the prescribed authority in this behalf. the prescribed authority may, in 
such manner and subject to such restrictions and conditions as may be 
prescribed, sell the goods so seized in open auction and remit the sale 
proceeds thereof to the Government Treasury. 
15. Any amount of tax or penalty due under this Act shall be 
recoverable— 
(a) as an arrear of land revenue as if it were payable to the 
Collector; or 
(b) by the Tax Recovery Officer. 
16. (I) Where any person is aggrieved by any order passed under 
section 9, section 10, section 12, section 13, or section 14, of this Act 
160 
The West. Bengal State Tax on Consumption or 
Use of Goods Act, 2001. 
XV of 20011 
(Sections 17-21.) 
such person may, in the prescribed manner. appeal to such authority as 
may be prescribed against such order within thirty days from the date 
of communication to him of such order. 
(2) Where an appeal is preferred under sub-section (1), the authority 
referred to in that sub-section shall finally dispose of such appeal ordinarily 
within three months from the date of presentation of such appeal: 
Provided that on the application of the appellant in writing and for 
reasons shown to the satisfaction of such authority, the disposal of the 
appeal may he deferred to a date beyond the period of three months. 
17. The authority as referred to in sub-section (1) of section 16 may, 
on application, stay the recovery of any tax or penalty due-under this 
Act on such terms and conditions as may be deemed fit and proper. 
Slay of 
recovery of 
Lax or 
penalty due. 
18. (l) The prescribed authority may, subject to the conditions and Sun !none 
restrictions as may be prescribed, for reasons to be recorded in writing revision. 
 
and after giving the person likely to he affected all opportunity of being 
heard, suo morn revise any order passed by any person appointed under 
sub-section (2) of section 3. 
(2) No order shall he passed under sub-section (1) after expiry of 
one year from the date of passing of the order by the person appointed 
under sub-section (2) of section 3. 
Power to 
amend 
Schedule. 
19. The State Government, after giving by notification not less than 
fourteen days' notice of its intention so to do, niay, by like notification, 
with prospective or retrospective effect, add to, or amend the Schedule 
or delete any goods from the Schedule. 
20. The State Government may, by notification, make rules, with 
prospective or retrospective effect, for the purpose of carrying out the 
provisions of this Act, and such rules may provide for all or any of the 
matters which. under any provision of this Act, is required to be prescribed, 
or to be provided for. by rules. 
21. (1) If any difficulty arises in giving effect to any of the provisions 
of this Act, the State Government may. by order, not inconsistent with 
the provisions of this Act, remove the difficulty. 
(2) No order shall be made under sub-section (I) after the expiry 
of two years from the date of coming into force of this Act. 
Power to 
make odes. 
Power to 
remove 
difficulties. 
161 
The West Bengal Stale Tax on Consumption or 
Use of Goods Act. 2001. 
[West Ben. Act 
(Schedule.) 
SCHEDULE. 
!See section 2(1)(1).1 
1. Air-conditioner, aircooler and other cooling equipments. 
2. Antenna for receiving satellite communication. 
3. Cables including optical fibre cable. 
4. Cement. 
5. Computer and its parts, computer peripherals including 
printers and plotters. 
6. Cooking range. 
7. Electronic goods. 
8. Electronic Private Automatic Branch Exchange (EPABX) 
and other telecommunication equipments. 
9. Knitting machine. 
10. Marble, decorative stones, tiles and granite stones. 
11. Medical instruments including diagnostic instuments such 
as X-ray machine and ultra-sonography machine. 
12. Microwave oven. 
13. Motor Vehicles including two-wheelers. 
14. Multimedia projector and other types of projectors. 
15. Paper. 
16. Photocopying machine. 
17. Plastic goods, moulded luggage, plastic furniture and any 
other furniture. 
18. Refrigerator. 
19. Sanitary wares and fittings. 
20. Scientific instrument, 
21. Uninterrupted power supply (UPS). 
22. Vanaspati. 
23. Washing machine. 
162 
The West Bengal State Tax on Consumption or 
Use of Goods Act, 2001. 
X V of 2001.1 
Statement of Objects and Reasons on the West Bengal State 
Tax on Consumption or Use of Goods Bill, 2001 
(Bill No. 23 of 2001). 
STATEMENT OF OBJECTS AND REASONS. 
In recent years, a consensus on uniform floor rate had been reached 
by all States and Union Territories at the all India level. However, it has 
been noticed that a few States and Union Territories are, in violation of 
such consensus, lowering their State Sales Tax and the Central Sales Tax 
to encourage people in other States as well as in our State to purchase 
certain goods directly from those States and Union Territories. This 
practice is causing hardship to the bona fide dealers in this State and 
at the same time causing loss of revenue to the State Exchequer. 
2. In this backdrop, this Bill seeks— 
(a) to prevent diversion of trade; 
(b) to augment revenue by discouraging the said practice; and 
(c) to protect bona fide dealers in the State against unequal 
competition. 
3. The Bill has been framed with the above objects in view. 
KOLKATA, 	 AS1M KUMAR DASGUPTA, 
The 23rd July, 2001. 	 Member-in-charge. 
163 

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