The west bengal paddy purchase tax act, 1970

West Bengal Act XV of 1970 
THE WEST BENGAL PADDY PURCHASE TAX 
ACT, 1970. 
[Passed by the West Bengal Legislature] 
[Assent of the Governor was first published in the Calcutta 
Gazette, Extraordinary, of the 2nd March, 1970.] 
[2nd March, 1970.] 
An Act to provide for the levy of a tax on paddy purchased 
by the owners of rice mills for augmentation of revenue 
and for collecting information of, and exercising control 
over, the stocks of paddy in possession of rice mills in 
West Bengal. 
WHEREAS it is expedient to provide for the levy of a tax 
on paddy purchased by the owners of rice mills for augmenta-
tion of revenue and for collecting information of, and exercising 
control over, the stocks of paddy in possession of rice mills in 
West Bengal; 
It is hereby enacted in the Twenty-first Year of the 
Republic of India, by the Legislature of West Bengal, as 
follows:- 
1. (1) This Act may be called the West Bengal 
Paddy Purchase Tax Act, 1970. 
(2) It extends to the whole of West Bengal. 
2. In this Act, unless there is anything repugnant 
in the subject or context,— 
(1) "owner", in relation to a rice mill, means the person 
• who, or the authority which, has the ultimate 
control over the .affairs of the rice mill and where 
the said affairs are entrusted to a manager, manag-
ing director or managing agent, such manager, 
managing director or managing agent shall be 
deemed to be the owner of the rice mill; 
et g (2) "power" means electrical ' e - y or any other form 
of energy which is mecha cally transmitted .and is 
not generated by human or animal agency; 
"prescribed" means prescribed by rules made under 
this Act ; 
"purchased" means purchased and delivered; 
"purchase price" means the amount payable by the 
owner of a rice mill as valuable consideration for 
the purchase of any paddy less any sum allowed by 
the seller as cash discount according to ordinary 
trade practice, but including anything charged for 
anything done by the seller in respect of the paddy 
at the time of, or before, deliVery thered; 
(3)  
(4)  
(5)  
Short title 
and extent. 
Definitions. 
The West Bengal Paddy Purchase Taa; Act, 1970. 
[West 138M Act 
(Sections 3, 4.) 
(6) "rice mill" means the plant and machinery with 
which, and the premises including precincts thereof 
in which or any part Of which, the operation of 
recovering rice or any •product thereof from paddy 
with the aid of power is carried on in West Bengal; 
• (7). "t urnover of purchases" used in relation to any 
period means the aggregate .  of the purchase prices 
payable by an owner of a rice mill for the quantity 
of paddy purchased by him during such period 
after deducting the amounts, if any, refunded to 
him by the seller during such period in respect of 
any quantity of paddy returned to the seller within 
ninety days from the date of its purchase and 
such other amounts as may be prescribed. 
3. (1) There shall be charged and levied a tax on the 
turnover of purchases of an owner of a rice mill in respect of 
ail purchases of paddy made by such owner from the date o d  
f 
publication of the West Bengal (Tax . on paddy purchase 
by rie mills) Ordinance, 1970 at the rate off two t per 
den umturnover and such tax shall be payble o the State 
tie -veni -lent -  by the owner of every -rice mill in the manner 
hereinafter provided. 
(2) In calculating the tax payable under this Act by 
the owner of a rice mill on his turnover of purchases during 
any period, the purchase price in respect of any quantity of 
paddy sold and despatched by him during such period subse-
quently to his purchase thereof to any place inside West Bengal 
shall be deducted from such turnover. 
(.3) -.c.o.) tax shall be le.viable under this Act in re):Ipect 
of the purchase prices of any quantity of paddy in respect of 
which such tax has already been paid: 
Provided . that the burden of proving that such tax has 
already been paid shall be upon the person who claims the 
benefit of this sub-section. 
No 	 4. (1) No premises shall, after the publication of the West 
premisee Bengal (Tax on paddy purchased by rice mills) Ordinance, 1970 ;  
as a  rice be used be Used as a rice mill unless such premises have been regi registeredto   
mill unless by the owner of the rice mill: 
registered. 	 Provided that, where any premises are, at the publicatior 
of the West Bengal (Tax on paddy purchased by rice mills: 
Ordinance, 1970, used as a rice mill, the owner of such rice 
mill shall be allowed two months from such publication to effec 
such registration. 
(2) An -application for registration under this section shal 
be made in such form and to such authority as may be prescribed  
and the prescribed authority shall, in the prescribed manner au+ 
form, maintain a record of every registration. 
(3) The registration of any rice mill may be cancelled by flu 
registering authority if the premises registered have ceased t 
be used as a rice mill. 
Levy of 
tax. 
The West Bengal Paddy Purchase Tax Act, 1970. 	 3 
xV of 1970.] 
(Sections 5-7.) 
5. Every owner of a rice. mill shall in respect of such rice Owners of 
mill— 	 rice mills 
to keep - (a) keep books of account relating to the purchases of books of 
paddy in the prescribed form; and 	 account 
(b) submit to such authority as may be prescribed a and submit  
return for the prescribed period in the prescribed returns.  
form and before the prescribed date showing— 
(i) the aggregate of the purchase prices of paddy pur-
chased by him for the rice mill during the 
prescribed period, 
(ii) the amount of refund of purchase price received 
by him from the seller within ninety days from 
the date of purchase, 
(iii)_ the purchase price of paddy sold and despatched 
by him, subsequently to his purchase, to places,. 
within West Bengal during the prescribed period, 
and 
(iv) such other particulars necessary for the purposes 
of this Act as may be prescribed. 
6. Before submitting in each period the return referred Payment of to in clause (b) of section 5 the owner of a rice mill shall tax and 
pay into a Government Treasury or the Reserve Bank of India receipt for 
gash  the f 	 amount of the tax due under this Aet in respect spuayment. of the paddy purchased by him according to such return, and 
shall furnish along with the return a receipt from such treasury 
or bank showing payment of such amount. 
7. (1) If no returns are furnished by the owner of a rice 
mill under clause (b) of section 5 in respect of any period 
before the date prescribed in that behalf, or if the returns are 
furnished without a receipt showing full payment of the tax due 
as required by section 6, or if the authority referred to in clause 
(b) of section 5 is not satisfied that the returns furnished are 
correct and complete, such authority shall, after making such 
enquiry, if any, as it considers necessary, determine the amount 
of the tax due in respect of such period from such owner and 
such authority may in the case where no returns are furnished 
within the prescribed date or when the returns are furnished 
without any receipt showing full payment of the tax due as 
required by section 6 direct that such owner shall pay in addition 
to the amount of the tax so determined a sum not exceeding that 
amount by way of penalty and the amount of the tax so determined 
together with the penalty (if any) so directed to be paid, less the 
sum, if any, already paid by him, shall be raid by such owner 
into a Government Treasury or the Reserve Bank of India within 
fourteen days after demand is made therefor: 
Providaci that, before action is taken under this sub-section. 
the owner of a rice mill shall be given a reasonable opportunity 
of proving the correctness and completeness of the returns, if any, 
furnished by him: 
Provided further that the authority referred to in clause (b) 
of section 5 may, for reasons to be recorded in writing, extend 
the date of such payment. 
Determi. 
nation 
of the 
amount 
of tax 
by the 
prescribed 
authority 
in certain 
Oases. 
4 	 The West Bengal Paddii Purchase Tax Act, 1970. 
[West Ben. Act 
(Sections 8-10.) 
(2) If the amount of the tax due and the penalty (if any) 
directed to be paid under sub-section (1) are not paid within 
the period mentioned in that sub-section or within the period 
extended under the second proviso to the said sub-section, the 
authority referred to in clause (b) of section 5 may direct that 
the owner of the rice ,  mill shall pay in addition to not 
the amount 
of the tax and penalty (if any) so unpaid a sum 	 excee 
the amount of the tax by way of penalty or further penalty, as 
the case may be. 
(3) If default is made in making the payment of the amount 
of tax due or any penalty directed to be paid under sub-section 
(1) within the period mentioned in that sub-section or within 
the period extended under the second proviso to the said to sub-
section 
e
b- 
section or in making the payment of any penalty directed 
' paid under sub-section (2), it shall be recoverable  
person from whom it is due as an arrear of land revenue. 
8. If any owner to whom the provisions of clause (b) of 
section 5 apply— 
(a) sells or otherwise disposes of his rice mill or any in
art 
thereof-  or comes to know of any other change p the 
ownership of the rice mill, or 
(b) closes his rice mill or changes his place of rice mill or 
opens a new place of rice mill, or 
(c) changes the name of the rice mill which is specified in 
his certificate of registration, 
he shall within the prescribed time and in the prescribed manner 
inform the prescribed' authority accordingly; and if any such 
owner dies, his legal representative shall, in like manner, inform 
the said authority. 
9. Where the ownership of a registered 	 ill 
is transferred absolutely by sale, gift, bequest, inheritanceor 
otherwise or transferred by way of lease and the transferee or the 
lessee runs such rice mill, either in its old name or in some other 
name, the transferee or the lessee shall for all the purposes of this 
Act (except for liabilities under this Act already discharged by 
such owner) be deemed to be and to have always been the owner 
of such registered rice mill in the case of a lease for so long 
as the lease subsists) as if the registration certificate  or the lessee; 
and the transferee or the lessee shall, on application to the 
authority referred to in clause (b) of section 5, be entitled to have 
the registration certificate amended accordingly. 
Action 	 10. Notwithstanding anything contained in any law for the 
taken and time being in force, in respect of any rice mill run under 
proceedings a trade name action may he taken under this Act in any 
famed or 	 matter connected with the purposes of this Act including conarn - 
continued the realisation of taxes or penalty, and proceedings for the 
in the trade recover\ of any mei) taxes or neneltn ref' be commenced or 
;le  PT a 	 - 	
• 	 _ 
rare 	 COntinlle-d under any Ids ,/ agamst the person owning the rice mill: 
Informa-
tion to be 
furnished 
regarding 
changes 
of rice 
mill. 
Transfer 
of rice 
'mill. 
4 
The West Bengal Paddy Purchase Tax Act, 1970. 	 5 
XV of 1970.] 
(Section .11.) 
Provided that no action taken or proceedings commenced 
shall be called in question merely on the ground that such action 
was taken or such proceedings were commenced in the trade 
name of the rice mill. 
11. (1) Notwithstanding anything contained in any law for 
the time being in force, where— 
(a) any rice mill run by any firm or association of persons 
or Hindu undivided family as an owner thereof is 
- closed, or 
(b) such firm or association of persons is dissolved or such 
Hindu undivided family is partitioned, as the case 
may be, 
the authority referred to in clause (b) of section 5 shall deter-
mine the tax payable under this Act by sada firm or asso-
ciation of persons or Hindu undivided family for the period up 
to the date of such closure, dissolution or partition, as if no such 
closure, dissolution or partition, as the case may be, has taken 
place and all the provisions of this Act relating to the assessment 
and recovery of such tax shall apply accordingly. 
(2) If in the course of any proceeding under this Act 
in respect of any such firm or association of persons or Hindu 
undivided family the authority referred to in clause (b) of section 5 is satisfied that such firm or association of persons or 
Hindu undivided family was or is liable to pay any penalty under 
section 7 he may direct the imposition of such penalty in accord-
ance with the provisions of section 7 as if no such closure or 
dissolution or partition, as the case may be, has taken place. 
(3) Every person who at the time of such closure or 
dissolution or partition, as the case may be, was a partner of 
such firm or a member of such association of persons or a 
member of such Flindu undivided family and where any such 
person is dead the legal heir of such person shall, notwith-
standing such closure or dissolution or partition, as the 
case may be, be jointly and severally liable for the amount of 
tax, penalty or other sum payable under this Act and 
shall be similarly liable to be proceeded against in any proceed-
ing for the purpose of assessment and recovery of such tax, 
penalt:y or other sum and all the provisions of this Act 
shall apply accordingly.  
(4) Where such closure or dissolution or partition 
takes place after any proceeding in respect of an assessment 
period or any penalty or otter r matter has commenced, the pro-
ceeding may be continued against every person referred to in 
sub-section (3) from the stage at which the proceedings stood 
at the time of such closure or dissolution Or partition, as the case 
may be. 	 , 
Liability 
to tag of 
a firm, an 
association 
of persons, 
a Hindu 
undivided 
family 
when 
business 
is closed 
and of a 
dissolved 
firm and 
association 
of persons 
and 
partitioned 
Hindu 
6 	
The West Bengal Paddy Purchase Tax Act, 1970. 
[West Ben. Act 
(SectiOns 12-15.) 
	
Rotunda. 	
12. The authority referred to in clause (b) of section 5 
shall, in the prescribed manner, refund to the owner of the rice 
mill applying in this behalf any amount of the tax paid by such 
owner in excess of the amount due from him under this Act 
either by cash payment or, at the option of such owner, by 
deduction of such excess from the amount of the tax due in 
respect of any other period. 
inspt•etiou, - 	 • 
13. (1) Any person empowered by the State Government 
n this behalf may, for the poses of this Act,— Powers of purposes   
	
oarch. 	 (a) 
require any owner of a rice mill to produce before entry anri 
such person all accounts, vouchers and other docu-to stocks, purchases, receipts and 
ments relating d to furnish any other 
despatches of paddy, an stocks, purchases, 
information relating to such 
 
receipts and despatches and every nd 
such owner shall 
comply with such requisition; a 
(b) 
inspect such accounts, vouchers and documents of, 
and the paddy held in stock by, such  
(2) 
Any such person empowered by the State Govern-
ment in this behalf may enter and search, at any time, 
by d ay any  building, vessel, vehicle or place in which he has 
reason to believe that any owner of a rice• mill holds any stock 
(3) All searches made under sub-section (2) shall be made of paddy. 
in .accordance with the provisions of the Code of Criminal A11 
Procedure, 1898. 
14. No person to whom any returns under this Act are 
etc- to be furnished or who makes an inspection under section 13 
000- 	 shall, save with the previous sanction of the State Government, 
Returns, 
disclose any information obtained from any such return or 
inspection otherwise than departmentally or for the purposes of 
prosecution under the Indian Penal Code in respect of any sub 
return, or of any account, voucher or other document inspected, 
or for the purposes of a prosecution under this Act. 
15. Any person who— sister such 
(a) being the owner of a rice mill fails to
or Tea  
rice m mill as requireid by section 4;  
(b) 
fails to keep books of account as required by clause 
(a) of section 5; or 
(c) 
fails without sufficient cause to submit any return as 
required by clause (b) of section 5, or furnishes ar 
incorrect or incomplete return, or fails to submit r 
receipt for the full amount of the tax due a! 
required by section 6; or 
(d) 
fraudulently evades the payment of any tax due undo 
this Act; or 
Penalties,. 
The West Bengal Paddy Purchase Tax Act, 1970. 
XV of 1970.) 
(Sections 16-21.) 
(e) neglects to furnish any information required by section 
8; or 
(f) refuses to comply with ‘a requisition under clause (a) of sub-section (1) of section 13 or obstructs any 
officer making an inspection or a search under -section 13; or 
(g) discloses any information in contravention of the pro-
visions of section 14; or 
(h) acts in contravention of any of the provisions of this 
Act, 
shall, on conviction, be punishable with fine which may extend 
to One thousand rupees, and in the case where the failure, 
evasion or contravention is a continuing one, with a further fine 
which may extend to one hundred rupees for every day after 
the first during which such failure, evasion or contravention con-
tinues subsequent to such conviction. 
16. No proceedings in respect of any offence under this Institution 
Act shall be instituted except with the previous sanction of pro-
of such authority as may be prescribed and upon complaint by oeedinge. 
a person empowered under section 13. 
17. All offences punishable under this Act shall be bailable. offences to be 
bailable. 
18. (1) The prescribed authority may accept from any Power to 
person charged with any offence punishable under 
- thi s  Al.t .  compoubd 
or any rule made thereunder, by way of composition for such offeno .  offence, payment of a sum of money not exceeding five hundred 
rupees or double the amount of the tax payable, whichever is 
greater. 
(2) If payment by way of composition is accepted under sub-section (1), the accused, if in custody, shall be discharged 
and no further proceedings shall be taken against him in respect 
of such offence. 
19. No Magistrate other than a Presidency Magistrate or Jurisdic. 
a Magistrate of the first class shall try an offence punishable tion to try 
under this Act. 	 offences.  
20. All persons empowered to act under this Act officers to 
"t 46 	 shall be deemed to be public servants within the meaning of be deemed 
1840. 	 section 21 of the Indian Penal Code. 
speurbvlic  ant s. 
21. No suit, prosecution or other legal proceedings shall lie i red,„,,„ity., against any employee of the State Government for anything 
which is in good faith trthre or inten&I to be d'o'ne tinder this 
Act. 
The West Bengal Paddy Purchase Tax Act, 1970. 
EVVOSI MIL Act 
(Sections 22-25.) 
22. No suit shall be instituted against the State Government L  
and no suit, prosecution or other •proceedings shall be instituted c, 
against an employee of the State Government in respect of any- a. 
thing done or intended to be done under this Act, unless 
the suit, prosecution or other proceeding has been instituted 
within six months from the date of the act complained of. 
23. No assessment made and no order passed under this Act 
or the rules made thereunder by the authority referred to in 
clause (b) of section 5 shall be called in question in any civil 
court and save as is provided in section 24, no appeal or 
application for revision or review shall lie against any such 
assessment or order. 
24. (1) Any person aggrieved by any order under this 
Act may appeal within sixty days from the date of such I 
order, to such authority and in such manner as may be prescribed. 
(2) Subject to such rules of procedure as may be prescribed, 
the prescribed authority in disposing of any appeal filed under 
sub-section (I), may— 
(a) confirm, reduce, enhance or annul the assessment; or 
(b) set aside the assessment and direct the assessing 
authority to make a fresh assessment after such 
further inquiry as may be directed. 
(3) Every order passed in appeal under this section shall, 
subject to the powers of revision conferred by sub-section (4), 
be final. 
(4) Subject to such rules as may be prescribed the prescribed 
authority may, either of its own motion or on application, call for 
and examine the record of any order passed or the proceedings 
recorded by any officer or person subordinate to such authority, 
for the purpose of satisfying itself as to the legality or propriety of 
such order, or as to the regularity of such proceedings, and may 
pass such order in reference thereto as it thinks fit. 
(5) Nothing in this section shall apply to the orders or 
proceedings of any Court or Magistrate. 
25. (1) The State Government may make rules for carrying 
out the purposes of this Act. 
(2) In particular and without prejudice to the generality of 
the foregoing power, such rules may provide for all or any of 
the following matters, namely:— 
(a) the form of application for registration under sub-
section (2) of section 4, the authority to which suet 
applications shall be made, the manner and form it 
which such authority shall maintain a record o: 
registrations; 
(b) the forms in which books of account shall be kep 
under clause (a) of section 5; 
The West Bengal Paddy Purchase Tax Act, 1970. 	 9 
XV of 1970.] 
(Sections 26, 27.) 
(c) the authority to which and the period for which returns 
are to be furnished under Clause (b) of section 5, 
the forms of such returns, the date before which they 
are to be furnished and the particulars which may 
be necessary for ,the purposes of this Act other 
than those specified in the said clause to be 
contained in those returns; 
(d) the time within which and the manner in which 
information shall be furnished under section 8; 
(e) the manner in which refunds under section 12 shall be 
made; 
(f) the authority which may, under section 16, accord 
previous sanction to the institution of proceedings; 
(g) the authority which may, under sub-section (I) of 
section 18, accept payment by way of composition 
for offences under this Act; and 
(h) the authority to which and the manner in which an 
appeal shall be -filed under sub-section (1) of section 
24 and the authority which may exercise powers 
under sub-section (4) of that section. 
(3) In making any rule under sub-section (1) or sub-
section (2), the State Government may provide that any person 
committing a breach thereof shall, on conviction, be punishable 
with fine which may extend to one hundred rupees. 
26. Nothing in this Act shall apply to any sale or purchase Act not to 
of paddy which takes place outside the State of West Bengal or aPP1Y. 
in course of inter-State trade or commerce or in course of import eert,N 	 A 
into, or export out of, the territory of India. P• 
wirer to 
eke 
lee. 
West Ben. 
Ord II of 
27. (1) The West Bengal (Tax on paddy purchased by 
rice mills) Ordinance, 1970, is hereby repealed. 
t2) Anything done or any action taken under the West 
Bengal (Tax on paddy purchased by rice mills) Ordinance, 1970, 
shall be deemed to have been validly done or taken under this 
Act as if this Act had commenced on the 14th day of January, 
1970. 
it, peal arid 
savings, 
WEGp-70/71.-41A-51VI 

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