Proposed preliminary third draft of

The Uttar Pradesh Value Added Sales Tax Act

The draft is meant for internal use of the Department of TradeTax of Uttar Pradesh Government. Neither it communicates any decision nor any commitment of the Department or the State Government. Provisions of the proposed Act are likely to be modified or altered. No claim, howsoever and whatsoever, shall be entertained in this respect.

Value Added Sales Tax Act

CHAPTER I

PRELIMINARY

1. Short title, extent and commencement

(i) This Act may be called the Uttar Pradesh Value Added Sales Tax Act, .......

(ii) It extends to the whole of Uttar Pradesh.

(iii) It shall come into force on such date as the State Government may, by notification in the official Gazette, appoint.

Provided that the State Government may appoint different dates for different provisions.

2. Definitions

In this Act, unless there is anything repugnant in the subject or context: -

(a) "appellate authority" means the authority to whom an appeal lies under section 59.

(b) "assessing authority" means any person,

(i) appointed and posted by the State Government; or

(ii) appointed by the State Government and posted by the Commissioner; or

(iii) appointed and posted by the Commissioner,

to perform all or any of the functions of the assessing authority under this Act.

(c) "assessment year" means the financial year beginning from first April and ending with Thirty first March.

(d) "business" In relation to business of buying or selling goods includes-

(i) any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture, whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make profit and whether or not any profit accrues from such trade, Commerce, manufacture, adventure or concern;

(ii) the execution of any works contract or the transfer of the right to use any goods for any purpose(whether or not for a specified period) for cash, deferred payment or other valuable consideration;

(iv) any transaction of buying, selling or supplying plant, machinery, raw materials, processing materials, packing materials, empties, consumable stores, waste or by-products, or any other goods of a similar nature or any unserviceable or obsolete or discarded machinery or any parts or accessories thereof or any waste or scrap or any of them or any other transaction whatsoever, which is ancillary to or is connected with or is incidental to, or results from such trade, commerce, manufacture, adventure or concern or works contract or lease, but does not include any activity in the nature of mere service or profession which does not involve the purchase or sale of goods.

(e) "Commissioner" means the person posted by the State Government as Commissioner of Commercial Taxes and includes a Special Commissioner Commercial Taxes, an Additional Commissioner Commercial Taxes and a Joint Commissioner Commercial Taxes.

(f) "capital goods" means plant, machinery, equipments, apparatus, components, moulds required by a dealer for use in manufacture or processing of goods for sale by him or for use in packing of such goods.

(g) "dealer" means any person who carries on in Uttar Pradesh (whether regularly or otherwise) the business of buying, selling, supplying or distributing goods directly or indirectly, for cash or for deferred payment or for commission, remuneration or other valuable consideration and includes

(i) a local authority, body corporate, company, any co-operativesociety or other society, club, firm, Hindu Undivided Family or other association of persons which carries on such business;

(ii) a factor, broker, arhati, commission agent, del credere agent, or any other mercantile agent, by whatever name called, and whether of the same description as hereinbefore mentioned or not, who carries on the business of buying, selling, supplying or distributing goods belonging to any principal, whether disclosed or not;

(iii) an auctioneer who carries on the business of selling or auctioning goods belonging to any principal, whether disclosed or not, and whether the offer of the intending purchaser is accepted by him or the principal or nominee of the principal;

(iv) a Government which, whether in the course of business or otherwise, buys, sells, supplies or distributes goods, directly or otherwise, for cash or for deferred payment or for commission, remuneration or other valuable consideration;

(v) a person who acts within the State as an agent of a dealer residing outside the State, and buys, sells, supplies or distributes goods in the State or acts on behalf of such dealer as-

(a) a mercantile agent; or

(b) an agent for handling of goods or documents of title relating to goods; or

(c) an agent for the collection or the payment of the sale price of goods or as a guarantor for such collection or such payment;

(vi) a firm or a company or other body corporate, the principal office or head quarter whereof is outside the State, having a branch or office in the State, in respect of purchases or sales, supplies or distribution of goods through such branch or office;

(vii) a person who carries on the business of transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;

(viii) a person who carries on the business of transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash or for deferred payment or other valuable consideration;

Provided that a person who sells agricultural or horticultural produce grown by himself or grown on any land in which he has an interest, whether as owner, usufructuary mortgagee, tenant, or otherwise, or who sells poultry or dairy products from fowls or animals kept by him shall not, in respect of such goods, be treated as a dealer;

(h) "declared goods" means goods declared under section 14 of the Central Sales Tax Act, 1956, to be of special importance in the inter-state trade or commerce;

(i) " document" means any matter expressed or described upon any substance by means of letters, figures or marks, or by more than one of those means, intended to be used, or which may be used for the purpose of recording that matter and includes electronic document.

(j) "goods" means every kind or class of movable property and includes all materials, commodities and articles involved in the execution of a works contract, and growing crops, grass, trees and things attached to, or fastened to anything permanently attached to the earth which, under the contract of sale, are agreed to be severed, but does not include newspapers, actionable claims, stocks, shares, securities or postal stationery sold by the Postal Department;

(k) "importer" in relation to any goods means the dealer who makes the first sale of such goods after their import into the State;

(l) "input tax" means the aggregate of following:

(i) amount of tax charged under this Act by the registered selling dealer from the purchasing dealer on the turnover of sale of goods; and

(ii) amount of tax paid or payable directly to the State Government by the purchasing dealer himself on the turnover of purchases of goods, liable to tax under this Act.

(m) "lease" means any agreement or arrangement whereby the right to use any goods for any purpose is transferred by one person to another (whether or not for specified period) for cash , deferred payment or other valuable consideration without the transfer of ownership and includes a sub-lease but does not include any transfer on hire purchase or any system of payment by instalments;

(n) "lessee" means any person to whom the right to use goods for any purpose is transferred under a lease;

(o) "lessor" means any person by whom the right to use any goods for any purpose is transferred under a lease;

(p) "manufacture" means producing, making, mining, collecting, extracting, altering, ornamenting, finishing, or otherwise processing, treating or adapting any goods; but does not include such manufacture or manufacturing processes as may be prescribed;

(q) "manufacturer" in relation to any goods means the dealer who makes the first sale of such goods in the State after their manufacture;

(r) "mercantile agent" means a mercantile agent having in the customary course of business as such agent authority either to sell goods, or to consign goods for the purpose of sale, or to buy goods, or to raise money on the security of goods;

(s) "officer-in-charge of a check post or barrier" includes an officer not below the rank of assessing authority posted at a check post or barrier,

(t) "prescribed" means prescribed under the rules made under this Act;

(u) "place of business" means any place where a dealer carries on business and includes-

(i) any shop, ware-house, godown or other place where a dealer stores his goods;

(ii) any place where a dealer produces or manufactures goods;

(iii) any place where a dealer keeps his books of accounts and documents;

(iv) any place where a dealer executes the works contract or where the right to use goods is exercised; and

(v) in a case of a dealer who carries on business through an agent (by whatever name called), the place of business of such agent;

(v) "purchase price" means the amount payable by a purchaser to a seller as consideration for the purchase of any goods made by or through him after deducting the amount, if any refunded to the purchaser by the seller in respect of any goods returned to such seller within such period as may be prescribed.

Explanation: Purchase price does not include:

(i) the amount representing the cost of outward freight or cost of installation, charged by the seller to the purchaser of goods if such amount has been shown separately on sale invoice or tax invoice issued by the seller;

(ii) amount of tax if such amount is shown separately on the sale invoice or Tax invoice.

(w) "registered dealer" means a dealer registered under section 17 of this Act;

(x) "registering authority" means the officer empowered under the rules to deal with issue, suspension, cancellation or any other matter related to registration and includes an assessing authority;

(y) "re-sale" means a sale of any goods by a dealer in the same form and condition in which such goods were purchased by such dealer;

(z) "return" means any return prescribed or required to be furnished under this Act or the rules made thereunder;

(aa) "rules" means rules made under this Act by the State Government to carry out the purposes of this Act.

(ab) "sale" with its grammatical variations and cognate expressions, means any transfer of property in goods (otherwise than by way of a mortgage, hypothecation, charge or pledge) by one person to another, for cash or for deferred payment or for any other valuable consideration and includes, -

(i) a transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration;

(ii) a transfer of property in goods( whether as goods or in some other form) involved in the execution of a works contract;

(iii) delivery of goods on hire purchase or any other system of payment by instalments;

(iv) a transfer, delivery or supply of goods under a contract of transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;

(v) supply of goods by an association or body of persons (whether incorporated or not) to a member thereof for cash, deferred payment or other valuable consideration;

(vi) supply, by way of or as part of any service or in any other manner whatsoever of goods, being food or any other article for human consumption or any drink(whether or not intoxicating) where such supply or service is for cash, deferred payment or other valuable consideration

and such delivery, transfer or supply of any goods under clause (i) to clause (vi) above shall be deemed to be sale of those goods by the person making the delivery, transfer or supply and a purchase of those goods by the person to whom such delivery, transfer or supply is made.

Explanation : Expressions-

(i) purchase or sale of goods in the course of inter state trade or commerce;

(ii) purchase or sale of goods outside the State; and

(iii) sale of goods in the course of export of the goods out of, or purchase or sale of goods in the course of import of the goods into, the territory of India,

shall have same meanings as assigned to them under sections 3, 4 and 5 of the Central Sales Tax Act, 1956 respectively.

(ac). "sale price" means the amount payable to a dealer as consideration for the sale of any goods, less any sum allowed as cash discount according to the practice normally prevailing in the trade, but inclusive of any sum charged for anything done by the dealer in respect of goods at the time of or before the delivery thereof, other than cost of outward freight or delivery or cost of installation in cases where such cost is separately charged;

Explanation:

(i) In a case in which any amount of any duty payable by a dealer is deferred for a period or point of payment of any duty is shifted, amount of such duty shall be deemed part of the sale price;

(ii) The price of packing material in which any goods are packed shall be deemed part of sale price of goods sold.

(iii) Sale price of goods in relation to transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract, shall be determined after deducting the aggregate of actual amount incurred towards labour and services, amount of profit relating to supply of labour and services and such other amounts as may be prescribed from the total amount received or receivable in respect of such works contract.

(iv) In respect of transfer of right to use goods, any goods for any purpose (whether or not for a specified period) sale price means the valuable consideration received or receivable in respect of such transfer of right to use goods but does not include any sum payable as a penalty or as compensation or damages for breach of contract.

(ad) "section" means section of this Act;

(ae) "Settlement Commission" means the Commission constituted under section 67 of this Act.

(af) "State" means the State of Uttar Pradesh;

(ag) "tax" means tax leviable under this Act, on the sale or purchase of goods other than newspapers; and includes –

(a) lump sum (composition money) accepted in lieu of actual amount of tax due on turnover of sales or purchases or both, as the case may be; or

(b) amount of reverse input tax credit ; or

(ah) "taxable goods" means goods other than the goods the sale or purchase of which is exempt from tax under clause (a) of section 11 of this Act;

(ai) “taxable turnover” means turnover obtained after deducting from the gross turnover such amounts as may be prescribed;

(aj) "tax invoice" means a bill or cash memo issued by a registered selling dealer to a purchasing dealer as prescribed under this Act, in respect of sale of taxable goods other than Aviation Turbine Fuel, Diesel Oil and Petrol.

(ak) "tax period" means a period under this Act;

(al) "Tribunal" means the Tribunal constituted under section 61 of this Act;

(am) "turnover of sales" means the aggregate of amount of sale prices of goods, sold or supplied or distributed by way of sale by a dealer, either directly or through another, whether on his own account or on account of others,

(an) "turnover of purchase" with its cognate expressions means the aggregate of the amounts of purchase prices paid or payable in respect of purchase of goods made by a dealer either directly or through another dealer, whether on his own account or on account of others, after deducting the amount, if any, refunded to such seller in respect of any goods returned to such seller within such period as may be prescribed;

(ao) "vehicle" means any kind of mode of transportation used for carriage of goods including motor vehicle, pull or push cart including animal drawn cart, animal, trailer, trolley, bicycle, tricycle and a carrier but does not include a train.

(ap) "vessel" includes any container, ship, barge, boat, raft, timber, bamboo or floating materials propelled in any manner.

(aq)"works contract" includes any agreement for carrying out, for cash, deferred payment or other valuable consideration, the building construction, manufacture, processing, fabrication, erection, installation, fitting out, improvement, modification, repair or commissioning of any movable or immovable property.

CHAPTER – II And CHAPTER – III

INCIDENCE, LEVY AND RATE OF TAX,REGISTRATION

3. Incidence and levy of tax

(1) Subject to the provisions of this Act, every dealer under sub-section (2), shall pay tax in the prescribed manner on his taxable turnover of sales or purchases or both, as the case may be, of all taxable goods where such sales or purchases are effected on or after the date on which such dealer becomes liable to pay tax.

(2) Every dealer who-

(i) during the assessment year preceding the first assessment year under this Act, has-

(a) sold any taxable goods of any amount in the course of inter-state trade or commerce; or

(b) consigned any taxable goods of any amount outside the State otherwise than as a result of sale; or

(d) sold any taxable goods of any amount in the course of import of the goods into the territory of India; or

(e) sold any taxable goods of any amount received from outside the State; or

(f) sold any goods manufactured or processed or packed by using any taxable goods received from outside the State; or

(g) purchased or sold, as the case may be, any goods on behalf of any principal.

(ii) being a dealer to whom clause (i) does not apply, carries on business of sale or purchase or both, as the case may be, of any goods inside the State and the aggregate of his turnover of sales or purchases or both, as the case may be, of all goods in the assessment year preceding the first assessment year under this Act, has exceeded the minimum limit of turnover for tax liability; or

(iii) holds-

(a) a registration certificate under the Central Sales Tax Act, 1956; or

(b) a provisional registration certificate under the Uttar Pradesh Trade Tax Act, 1948; or

(c) being a dealer to whom (a) and (b) or clause (i) or clause (ii) do not apply, a registration certificate under the Uttar Pradesh Trade Tax Act, 1948 and such dealer wants to remain registered dealer under this Act; or

(iv) on or after the commencement of this Act, commences new business and

(a) purchases any taxable goods of any amount for consigning such goods (whether or not in the same form) or any goods manufactured or processed or packed by using such goods, outside the State otherwise than as a result of sale; or

(b) consigns any taxable goods except goods under sub-clause (a), outside the State otherwise than as a result of sale; or

(d) sells any goods of any amount in the course of export of the goods out of the territory of India; or

(e) sells any taxable goods of any amount in the course of import of the goods into the territory of India; or

(f) sells any taxable goods of any amount received from outside the State; or

(g) sells any goods of any amount, manufactured or processed or packed by using any taxable goods received from outside the State, or

(h) makes purchase or sale, as the case may be, of any goods on behalf of a principal; or

(v) being a dealer to whom any of the clauses (i) to (iv) does not apply, carries on business of sale or purchase or both, as the case may be, of any goods inside the State and the aggregate of his turnover of sales or purchases or both, as the case may be, of all goods, on or after the commencement of this Act, exceeds the minimum limit of turnover for tax liability at any time during any period of twelve consecutive months; or

(vi) any other dealer to whom any of the clauses (i) to (v) does not apply, on or after the commencement of this Act,

(a) applies for grant of registration certificate under this Act; or

(b) applies for grant of registration certificate under sub-section (2) of section 7 of the Central Sales Tax Act, 1956,

shall be liable to pay tax.

Provided that if a dealer deals exclusively in goods other than taxable goods, he shall not be liable to pay tax under this Act.

Explanation : For the purpose of this section, expression "aggregate of turnover of sales or purchases or both, as the case may be, of all goods" means the aggregate of turnovers of all -

(a) taxable goods purchased inside the State by the dealer from persons other than registered dealers ; and

(b) goods sold inside the State by the dealer except goods included in (a).

(3) Dealers mentioned in column (2) shall pay tax with effect from the date mentioned in column (3) of the table below-

TABLE
Sl. No	Class of dealers	The date on which or from which dealer shall be liable to pay tax
(1)	(2)	(3)
1	Dealers falling under clause (i) to clause (iii) of sub-section (2)	On the date of the commencement of this Act
2	Dealers falling under sub-clause (a) of clause (iv) sub-section (2)	On the date on which goods referred to in sub-clause (a) of clause (iv) of sub-section (2) are purchased for the first time.
3	Dealers falling under sub-clause (b) of clause (iv) of sub-section (2)	From the date on which any taxable goods are consigned for the first time outside the State otherwise than as a result of sale
4	Dealers falling under sub-clause (c) of clause (iv) of sub-section (2)	From the date on which the dealer makes first sale of any taxable goods in the course of inter-state trade or commerce.
5	Dealers falling under sub-clause (d) of clause (iv) of sub-section (2)	From the date on which the dealer makes first sale of any goods in the course of the export of the goods out of the territory of India
6	Dealers falling under sub-clause (e) of clause (iv)of sub-section (2)	From the date on which the dealer makes first sale of taxable goods in the course of import of the goods into the territory of India.
7	Dealers falling under sub-clause (f) of clause (iv) of sub-section (2)	On the date on which the dealer makes first sale of goods received from outside the State.
8	Dealers falling under sub-clause (g) of clause (iv) of sub-section (2)	On the date on which the dealer makes first sale of manufactured, processed or packed goods referred to in sub-clause (g) of clause (iv).
9	Dealers falling under sub-clause (h) of clause (iv) of sub-section (2)	On the date on which the dealer makes first purchase or sale, as the case may be, of any goods on behalf of a principal
10	Dealers falling under clause (v) of sub-section (2)	From the date on which the dealers’ aggregate of turnover of sales or purchases or both, as the case may be, first time exceeds the minimum limit of turnover for tax liability during any period of twelve consecutive months.
11	Dealers falling under sub-clause (a) of clause (vi) of sub-section (2)	From the date on which registration certificate is granted to such dealer.
12	Dealers falling under sub-clause (b) of clause (vi) of sub-section (2)	On the date from which registration certificate is effective.

Provided that a dealer who purchases any taxable goods on behalf of a principal or sells any taxable goods on behalf of a principal, shall be liable to pay tax on the date on which he makes first purchase or sale, as the case may be, on behalf of such principal.

(4) Where any taxable goods are purchased by a dealer from a person other than a registered dealer, purchasing dealer shall pay tax on the turnover of purchase of such goods.

Provided that if the purchasing dealer after furnishing evidence proves to the satisfaction of the assessing authority that sale of such goods is liable to tax at the hands of the selling dealer and such selling dealer has paid tax on sale of such goods, purchasing dealer shall not be liable to pay tax on turnover of purchase.

(5) The minimum limit of turnover for tax liability, shall be as under:

(i) in case of a dealer who carries on business of transfer of right to use goods (whether or not as exclusive business) rupees two lakh; and

(ii) in cases of other dealers, rupees three lakh.

(6) Once a dealer has become liable to pay tax, he shall continue to be so liable until the date of discontinuance of business.

Provided that dealer referred to in clause (ii) or clause (v) of sub-section (2) shall not be liable to pay tax after expiry of a period of three consecutive assessment years during each of which his aggregate of turnover of sales or purchases or both, as the case may be, has failed to exceed the minimum limit of turnover for tax liability.

Explanation : The dissolution of a firm or association of persons or partition of a Hindu Undivided Family or transfer by a dealer of his business shall be deemed to be cessation or discontinuance of business within the meaning of this Act.

(7) Where tax is payable, and has been so paid by a commission agent on any turnover of sale or purchase or both, as the case may be, on behalf of his principal, the principal shall not be liable to pay tax in respect of same turnover.

4. Point and rate of tax

(1) The tax payable by a dealer under this Act, shall be levied and paid on –

(a) the taxable turnover of sales of declared goods at every point of sale and at such rate, not exceeding the maximum rate for the time being specified in section 15 of the Central Sales Tax Act, 1956, as the State Government may, by notification, declare;

(b) the taxable turnover of sales of Aviation Turbine Fuel, Diesel Oil and Petrol at such point of sale and at such rate, not exceeding thirty five percent, as the State Government may, by notification, declare;

(c) the taxable turnover of sales of all other goods at every point of sale and at such rate, not exceeding thirty five percent, as the State Government may, by notification, declare;

Provided that the State Government may, by notification, declare different rates of tax in respect of different goods or class of goods.

(2) Tax on the taxable turnover of purchase of any goods, referred to in sub-section (4) of section 3, shall be levied and paid at the same rate at which tax on turnover of sales of such goods is leviable under sub-section (1).

(3) The taxable turnover of sale or purchase shall be determined in the prescribed manner.

(4) Notwithstanding anything to the contrary in this Act where goods are sold or purchased together with packing materials, sale or purchase of packing material shall -

(a) be liable to tax at the rate applicable to sale or purchase of the goods sold or purchased together with such packing materials;

(b) not be liable to any tax if the sale or purchase of such goods is exempt from tax at the hands of the dealer.

(5) Where any goods are purchased for sale by way of transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract, tax shall not be levied on sale of such goods under the works contract if tax is payable on any earlier sale of such goods or if the dealer executing the works contract himself is liable to pay tax on purchase of such goods.

(6) Every notification made under this section shall, as soon as may be after it is made, be laid before each House of the State Legislature, while it is in session, for a total period of not less than fourteen days, extending in its one session or more than one successive sessions, and shall, unless some later date is appointed take effect from the date of its publication in Gazette subject to such modifications or annulments as the two Houses of the Legislature may during the said period agree to make, so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done thereunder except that any imposition, assessment, levy or collection of tax or penalty shall be subject to the said modification or annulment.

5. Liability of payment of Special Additional Tax

(1) Every manufacturer or importer, as the case may be, of any bricks, brick-ballasts, brick-bats, fire bricks and brick tiles shall, in addition to tax payable under any other provision of this Act, pay a special additional tax on the taxable turnover of sale of such bricks, brick-ballasts, brick-bats, fire bricks and brick tiles, effected on or after the date on which such dealer is liable to pay tax under section 3, at such rate, not exceeding ten percent, as the State Government may, by notification declare.

Provided that where such goods are purchased by a dealer from any person in the circumstances mentioned in sub-section (4) of section 3, the dealer purchasing such goods shall be liable to pay special additional tax on the taxable turnover of purchases of such goods at the same rate at which turnover of sale of such goods is liable to payment of special additional tax.

(2) Credit of amount of special additional tax payable or paid by any dealer to the seller or to the State Government, shall not be allowed to such dealer as input tax credit under this Act.

6. Liability on issuing false tax invoice, etc.

Notwithstanding anything to the contrary contained in this Act and without prejudice to the provisions of sections 54 and 56, a dealer, who issues a false or wrong tax invoice or sale invoice to another dealer, by reason of which –

(i) a tax leviable under this Act on the transaction of purchase made with or by such other dealer ceases to be leviable; or

(ii) such other dealer becomes eligible for claiming credit of input tax,

shall be liable to pay an amount which would have been payable by such other dealer as tax on transaction shown in such tax invoice or sale invoice or the amount, credit of which would not have been claimed by such other dealer, had such tax invoice or sale invoice not been issued:

Provided that before taking any action under this section the person concerned shall be given an opportunity of being heard

7. Liability of firm, association of persons and Hindu Undivided Family

(1) Subject to the provisions under this Act, where dealer is a firm or association of persons or a Hindu Undivided Family -

(a) such firm or association and every person who is a partner of such firm or a member of such association or Hindu Undivided Family shall be liable jointly and severally for the payment of tax assessed and penalty imposed or any amount due under this Act and payable by such firm or association or Hindu Undivided Family; and

(b) where such firm or association or Hindu Undivided Family has discontinued its business, -

(i) tax, including penalty payable under this Act by such firm or association or Hindu Undivided Family up to date of such discontinuance may be assessed and determined as if no such discontinuance had taken place ; and

(ii) every person who was at the time of such discontinuance a partner of such firm or a member of such association or Hindu Undivided Family shall, notwithstanding such discontinuance, be liable jointly and severally for the payment of tax assessed and penalty imposed and payable by such firm or association or Hindu Undivided Family whether such assessment is made or penalty is imposed prior to or after such discontinuance, and, subject to as aforesaid, the provisions of this Act shall apply as if every such person or partner were himself a dealer:

Provided that where it is found that a change has occurred in the constitution of the firm or association, the firm or association as reconstituted as well as partners or members of the firm or association, as it existed before re-constitution, shall jointly and severally be liable to pay tax including penalty, if any, due from such firm or association for any period before its reconstitution.

(2) Where the ownership of the business of any dealer liable to pay tax is transferred, the transferor and transferee shall jointly and severally be liable to pay the tax including penalty, if any, payable in respect of such business till the time of such transfer, whether the assessment is made or the penalty is imposed prior to or after such transfer.

(3) Where a tax including penalty, if any, is recovered form a reconstituted firm or association under the proviso to sub-section (1) or from a transferee under sub-section (2), such firm or association or a transferee shall be entitled to recover the same from the person who was originally liable to pay the tax.

8.Tax due from deceased person payable by his representatives

(1) Where a dealer dies, his executor, administrator or other legal representative shall be deemed to be the dealer for the purposes for this Act and the provisions of this Act shall apply to him in respect of the business of the said deceased dealer:

Provided that -

(i) in respect of any liability of the deceased, his executor, administrator or other legal representative shall be liable only to the extent of the assets of the deceased in his hand;

(ii) any proceeding including the proceeding for recovery, may be continued from the stage at which it was pending at the time of the death of the dealer.

(2) The provisions of sub-section (1) shall mutatis mutandis apply to a dealer being a partnership firm which may stand dissolved in consequence of the death of any partner.

9. Tax liability in case of minor or incapacitated person

In the case of any guardian, trustee or agent of any minor or other incapacitated person, carrying on business on behalf of and for the benefit of such minor or other incapacitated person, the tax shall be, levied upon and recoverable from such guardian, trustee or agent, as the case may be, in like manner and to the same extent as it would be leviable upon and recoverable from any such person or other incapacitated person, if he were of full age and sound mind and if he were conducting the business himself; and all the provisions of the Act and the rules made thereunder shall apply accordingly.

10. Liability in case of court of wards, etc.

In the case of business owned by a dealer whose estate or any portion of whose estate is under the control of the Court of Wards, the Administrator General, the Official Trustee or any Receiver or Manager (Including any person whatever his designation, who in fact manages the business on behalf of the dealer) appointed by him or under any order of a court, the tax shall be levied upon and recoverable from such Court of Wards, Administrator General, Official Trustee, Receiver or Manager, in like manner and in the same terms as it would be leviable upon and recoverable from the dealer, as if he were conducting the business himself, and all the provisions of the Act and the Rules made thereunder shall apply accordingly.

11. Exemption from tax.

Notwithstanding anything contained in this Act, no tax under this Act shall be payable and be levied on the turnover of sale or purchase of -

(a) such goods, as the State Government may, by notification, exempt; or

(b) any goods where 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 the export of the goods out of the territory of India or in the course of the import of the goods into the territory of India.

12. Rebate of tax on certain purchase or sale

Where any tax is leviable on the sale or purchase of any taxable goods under any other State Act or on entry of any taxable goods into a local area under the Uttar Pradesh Entry of the Goods Act, 2001, the State Government may, by notification and subject to such conditions and restrictions, as may be specified therein, allow a rebate upto the full amount of tax levied on any specified point on the sale or purchase of such goods under this Act.

13. Input tax credit

(1) Subject to provisions of this Act, credit of input tax to the extent hereunder provided, in respect of goods and in the circumstances mentioned below, shall be allowed to every dealer liable to pay tax-

(A) where any taxable goods are purchased on or after the date the dealer becomes liable to pay tax, in respect of purchase of such goods –

(i) credit of full amount of input tax if such goods are re-sold -

(a) inside the State; or

(b) in the course of inter-state trade or commerce; or

(ii) credit of full amount of input tax where such goods are used either in manufacture of any goods or in production of captive power and such manufactured goods are sold in the course of the export of the goods out of the territory of India;

(iii) except coal and petroleum products used as fuels, credit of full amount of input tax where such goods are used either in manufacture of any taxable goods or in production of captive power and such manufactured goods are sold either inside the State or in the course of inter-state trade or commerce;

(iv) for use as containers or packing materials, credit of-

(a) full amount of input tax, where such goods are used in packing of any taxable goods and such packed goods are sold either inside the State or in the course of inter-state trade or commerce;

(b) full amount of input tax where containers or packing materials are used in packing of any goods and where such packed goods are sold in the course of the export of the goods out of the territory of India;

(c) partial amount of input tax to the extent it is in excess of four percent of turnover of purchase of container or packing materials where such containers or packing materials are used in packing of any taxable goods and such manufactured taxable goods are consigned outside the State otherwise than as a result of sale.

(v) for use as capital goods or captive power plant where such capital goods are exclusively used in manufacture of goods for sale by the dealer, credit of partial or full amount of input tax computed in the manner specified in clause (i) and clause (ii) of sub-section (2);

(vi) credit of partial or full amount of input tax according to provisions under foregoing sub-clauses, as may be applicable, in case of a dealer who, under section 27 of this Act, opts any scheme of payment of lump sum in lieu of amount of tax payable on the turnover of sales or purchases or both, as the case may be, during such period, where such goods are -

(a) held in closing stock on the last day of the period of such scheme in the same form and condition in which those were purchased; or

(b) used, consumed or utilised in manufacture, processing or packing of any taxable goods held in closing stock on the last day of the period of such scheme.

(B in respect of taxable goods purchased during a period of twelve months before the date of the commencement of this Act and held in opening stock on the date of the commencement of this Act by a dealer who is liable to pay tax on such date, credit of partial or full amount of input tax computed at the rate applicable under the Uttar Pradesh Trade Tax Act, 1948 or at the rate applicable under this Act, which ever is lower, on the turnover of purchase determined in the prescribed manner, subject to fulfillment of conditions stated below, namely:

(i) the purchase or sale of such goods prior to the commencement of this Act, is liable to tax under the Uttar Pradesh Trade Tax Act, 1948; and

(ii) such goods are to be re-sold either inside the State or in the course of inter-state trade or commerce,

(C) in respect of purchase of coal and any petroleum products, purchased on or after the date the dealer becomes liable to pay tax, credit of partial amount of input tax to the extent it is in excess of four percent of the turnover where such goods are used as fuels either in the manufacture of any taxable goods or in production of captive power and such manufactured goods are –

(a) sold inside the State; or

(b) sold in the course of inter-state trade or commerce; or

(D) partial or full amount of input tax according to provisions under foregoing clauses, as may be applicable, in respect of purchase of taxable goods, purchased on or after the date of commencement of this Act, and

(i) held in opening stock on the date on which dealer becomes liable to pay tax where such date falls after the date of the commencement of this Act, in the same form and condition in which such goods were purchased; or

(ii) used, consumed or utilized in manufacture, processing or packing of any taxable goods held in opening stock on the date on which dealer becomes liable to pay tax where such date falls after the date of the commencement of this Act; or

(iii) used, consumed or utilized in manufacture, processing or packing of any goods held in opening stock on the date on which dealer becomes liable to pay tax where such date falls after the date of the commencement of this Act, and where such manufactured, processed or packed goods are for sale in the course of the export of the goods out of the territory of India.

Provided:

(I) that in relation to purchase of foodgrains in pursuance of any order made under section 3 of the Essential Commodities Act, 1955 including any purchase in excess of levy share, by any dealer who makes purchases from the State Government or its purchasing agent, shall, in respect of such food grains, be entitled to claim input tax credit of an amount of tax payable by it on sale of such food grains or the amount of input tax in respect of such foodgrains, whichever is lower.

(II) that no credit of input tax shall be allowed in respect of purchase of –

(i) Aviation Turbine Fuel, Diesel Oil and petrol; and

(ii) goods required for use, consumption or utilization in manufacture, processing or packing of Aviation Turbine Fuel, Diesel Oil and petrol.

(2) Credit of admissible amount of input tax credit computed on the basis of estimated sale, use, consumption or utilization of goods for various specified purposes, shall be claimed as under;

(i) in respect of capital goods or captive power plant or both, as the case may be, partial amount of input tax to the extent it is in excess of four percent of turnover of purchase, in three successive yearly instalments of equal amount, first such instalment to be claimed in the return of the first tax period of the assessment year following the first assessment year during which capital goods or captive power plant or both, as the case may be, have been used for a full assessment year;

(ii) in respect of capital goods or captive power plant or both, as the case may be, out of the balance amount arrived at after deducting partial amount of input tax to the extent it is in excess of four percent of turnover of purchase of capital goods or capital power plant or both, as the case may be, from the total amount of input tax, in every first return of three successive assessment years following the assessment year in which for the first time such goods are used for full such assessment year, amount computed by using the formula:

Amount of admissible input tax credit for any assessment year

= R´A ¸ 3 T

Where:

R is the amount of input tax arrived at after deducting the partial amount of input tax to the extent it is in excess of four percent of turnover from the total amount of input tax;

A is the aggregate of-

(a) turnover of sales of manufactured taxable goods sold inside the State;

(b) turnover of sales of manufactured taxable goods sold in the course of inter-state trade or commerce; and

(c) turnover of sales of all manufactured goods sold in the course of the export of the goods out of the territory of India;

T is the aggregate of –

(a) turnover of sales of all manufactured goods inside the State;

(b) turnover of sales of all manufactured goods in the course of inter-state trade or commerce;

(d) value of manufactured goods consigned outside the State otherwise than as a result of sale; and

(e) value of manufactured goods disposed of in any other manner.

(iii) in respect of goods held in opening stock on the date of commencement of this Act, in six monthly instalments of equal amount and first such instalment shall be claimed in the tax period which starts after expiry of period of three months after the commencement of this Act;

(iv) in respect of goods held in opening stock on the date on which a dealer becomes liable to pay tax, in the return of the tax period in which the dealer becomes liable to pay tax;

(v) in respect of goods held in closing stock on the last day of period of composition scheme under section 27, in the return of the tax period in which the day following the last day under the scheme falls; and

(vi) in all other cases in the return of the tax period in which goods have been purchased.

(3)Where any goods purchased during a particular tax period or assessment year, whether wholly or partly, are to be –

(i) sold in any manner or consigned outside the State otherwise than as a result of a sale;

(ii) used in manufacture, processing or packing of any goods and such manufactured, processed or packed goods are to be sold in any manner or consigned outside the State otherwise than as a result of a sale,

in any tax period subsequent to such tax period or in an assessment year subsequent to such assessment year, as the case may be, for the purpose of computing input tax credit for such tax period or such assessment year, as the case may be, the estimation of extent to which purchased goods are to be utilized for various purposes shall be made in the prescribed manner and where actual extent differs from the estimated extent, amount of input tax credit for such tax period or assessment year, as the case may be, shall be recalculated on the basis of actual extent.

(4) A dealer who claims partial or full amount of input tax credit in respect of any goods held in opening stock on the date of the commencement of this Act, shall submit inventory of such goods along with details of admissible amount of input tax credit within a period of thirty days from the commencement of this Act, to its assessing authority. The assessing authority shall examine the claim of the dealer and for this purpose the assessing authority may make any such enquiry as it considers necessary.

(5) Except as prescribed, no input tax credit shall be allowed for purchase of any goods in respect of which a dealer does not possess original copy of tax invoice issued in the prescribed form and manner by the registered selling dealer and where purchasing dealer, himself is liable to pay tax on purchase of any goods, no input tax credit in respect of such goods shall be allowed unless the dealer proves that he has included amount of tax payable on such purchase of goods in the amount of tax payable by him.

(6) No input tax credit shall be allowed for purchase of goods in respect of which dealer is liable to deduct amount of tax from the seller in accordance with provisions under clause (c) or clause (d) of sub-section (1) of section 34, unless the dealer proves that after deduction, the amount of tax has been deposited in the prescribed manner.

(7) No input tax credit shall be allowed against a Tax Invoice obtained without making actual purchase of goods shown in such Tax Invoice.

(8) Where any goods are sold by a principal through a selling agent, input tax credit in respect of purchase of such goods shall be claimed by the principal.

(9) Input tax credit shall be allowed in respect of only those goods which are purchased from within the State.

(10) In case of a dealer who, under section 27, opts for any scheme of payment of lump sum in lieu of tax due on turnover of sale or purchase or both, as the case may be, input tax credit shall not be allowed in respect of purchase of goods -

(i) sold or disposed of otherwise in the same form and condition in which those goods were purchased; or

(ii) used, consumed or utilised in manufacture, processing or packing of any goods sold or disposed of otherwise, during the period of composition scheme under section 27; or

(iii) held in opening stock on the date of commencement of the period of scheme, in the same condition in which those goods were purchased; or

(iv) which have been used, consumed or utilised in manufacture, processing or packing of any goods held in opening stock on the date of commencement of the period of scheme.

Explanation: For the purpose of this section –

(i) input tax does not include amount of special additional tax leviable under section 5;

(ii) resale of any goods does not include resale of such goods either by way of transfer of property in goods involved in the execution of a works contract or by way of transfer of right to use such goods.

(iii)Where during the process of manufacture of any taxable goods any goods exempt from tax under clause (a) of section 11 are produced as byproduct, it shall be deemed that purchased goods have been used in manufacture of taxable goods.

(iv) Goods required for use in manufacture of any goods or for use in production of captive power do not include a motor vehicle or parts, components and accessories of a motor vehicle or any goods required for running or maintenance of a motor vehicle.

14. Reverse input tax credit

(1) No input tax credit shall be allowed in respect of purchase of goods-

(a) which are held in -

(i) closing stock at the time of discontinuance of business; or

(ii) opening stock on the first day of period of composition scheme of payment of lump sum under section 27; or

(iii) opening stock on the date on which dealers’ liability for payment of tax by virtue of proviso to sub-section (6) of section 3 has ceased; or

(b) which are stolen, lost, destroyed, gifted, distributed as free samples or disposed of in any other manner otherwise than in the ordinary course of business; or

(2) Where a dealer has already claimed input tax credit in respect of any goods referred to in sub-section (1) or has wrongly claimed input tax credit in respect of any goods, benefit of input tax credit to the extent it is not admissible, shall stand reversed and the dealer shall be liable to pay such amount of reverse input tax credit within thirty days after the event comes to the notice of the dealer, along with simple interest at a rate of one and half percent per mensum for the period –

(i) except cases of free distribution of goods as samples or disposal of goods otherwise than in the ordinary course of business, in all other cases mentioned in sub-section (1), from the date of occurrence of event and till the date of payment of such amount; and

(ii) where input tax has wrongly been claimed or goods have been distributed as free samples or disposed of otherwise than in the ordinary course of business, from the date following the last date prescribed for submitting return of the tax period in which goods, in respect of which input tax credit was claimed, were purchased and till the date of payment of such amount.

Explanation: For the purpose of this section, input tax credit in respect of purchase of goods held in stock, stolen, lost, destroyed, gifted, distributed as free samples or disposed of otherwise than in the ordinary course of business includes input tax credit in respect of purchase of goods used, consumed or utilised in manufacture, processing or packing of any goods held in stock, stolen, lost, destroyed, gifted, distributed as free samples or disposed of otherwise than in the ordinary course of business, as the case may be.

15. Input tax credit exceeding tax liability

(1) If amount of input tax credit admissible to a dealer for a tax period exceeds the amount of tax payable by the dealer for such tax period, the excess amount of input tax credit may be adjusted by the dealer against amount of tax payable in the return of the corresponding tax period under the Central Sales Tax Act, 1956.

(2) Any excess amount of input tax credit left over after adjustment as provided in sub-section (1) shall be carried forward and be added to the amount of input tax credit for the next tax period.

Provided that in case of a dealer whose main business is to sell goods in the course of the export of the goods out of the territory of India, subject to provision of section 41, assessing authority shall, on the application of the dealer, allow provisional refund of excess amount of input tax credit for any tax period after the dealer has submitted return for such tax period.

(3) Where a dealer has submitted returns for all tax periods of an assessment year, and if any amount of excess input tax credit still exists according to return of the last tax period, such excess amount of input tax credit, subject to provisions of sections 40 and 42, shall be refunded to the dealer within thirty days after the last date prescribed or allowed for submission of return of last tax period of such assessment year.

Provided that excess amount of input tax credit relating to first assessment year, on the commencement of this Act, shall be carried forward to the first return of the next assessment year and any excess amount of input tax credit according to return of the last tax period of later assessment year shall be refunded to the dealer within thirty days after the last date prescribed or allowed for submission of return of the last tax period of the such later assessment year.

(4) Notwithstanding anything contained in sub-section (3) where a dealer discontinues business, refund of any excess amount of input tax credit relating to last tax period of the assessment year during which business has been discontinued shall be allowed within thirty days after the date of passing of assessment order for such assessment year.

(5) Where return for any tax period of any assessment year has not been submitted by the last date prescribed or allowed for submission of return of the last tax period of the assessment year, excess amount of input tax credit, if any, for such assessment year, subject to provisions of sections 40 and 42, shall be refunded to the dealer within a period of thirty days after the assessment order in respect of such assessment year has been passed or after the last date prescribed or allowed for submission of return for the last tax period of the succeeding assessment year, whichever expires latter.

(6) Notwithstanding anything contained contrary to in sub-section (2) and sub-section (3) any excess amount of input tax credit referred to in sub-section (3), at the option of the dealer, may be carried forward to the first tax period of the succeeding assessment year.

16. Burden of proof and presumptions

(1) In any assessment proceedings where any fact is specially within the knowledge of the assessee, the burden of proving that fact shall lie upon him, and in particular, the burden of proving the existence of the circumstances bringing the case within any of the exemptions, exceptions or reliefs under any provisions of this Act including any claim of amount of input tax credit, shall lie upon him and assessing authority shall presume the absence of such circumstances.

(2) Where a dealer obtains any tax invoice, sale invoice, bill or cash-memo from a dealer without making actual purchase of goods, it shall be presumed that the dealer obtaining such document has purchased goods, of equal quantity or measure and value, from person other than registered dealer with a view to evade payment of tax on purchase of such goods.

(3) Where in respect of any goods or document found in possession of a dealer or in any place, building, vehicle or vessel in possession of a dealer, if the dealer claims that such goods or document does not belong to him or to the business carried by him, burden of proving the same shall lie on such dealer.

(4) Where in respect of any goods any dealer claims that such goods have been purchased by him from within the State from a registered dealer but fails to produce tax invoice or a sale invoice, as the case may be, issued by such registered dealer, it shall be presumed that such goods have been purchased from a person other than a registered dealer.

(5) Where in respect of any goods dispatched or consigned by a dealer either to self or his agent or to the purchaser or its' representative by road transport, if transport memo or a challan, as may be applicable, has not been issued, it shall be presumed that such goods have not been accounted for in documents maintained by the dealer in the ordinary course of business.

(6) Where any goods found in custody of a person carrying on activities ancillary or incidental to or in connection with business have not been accounted for by such person in documents maintained by him in the ordinary course of business, if he claims that such goods belong to some other person, burden of proving the same shall lie on him, failing which it shall be presumed that such goods belong to him and for those goods he shall be treated a dealer.

(7) Where in respect of any taxable goods, while such goods are being carried from outside the State, form of declaration for import prescribed under clause (a) of sub-section (2) of section 50 is required to accompany the goods, if any taxable goods are not accompanied with such form of declaration, unless, the dealer or the person in-charge of the goods, by furnishing sufficient proof establishes otherwise, it shall be presumed that such goods are being carried with an intention to evade payment of tax on sale of –

(i) such goods if such goods are meant for resale; or

(ii) goods to be manufactured by using such goods if goods are meant for use in manufacture of any taxable goods.

(8) Where a dealer liable to pay tax on -

(i) sale of any goods, while making sale of such goods has shown sale price of such goods lesser than the actual sale value, unless the seller, by furnishing sufficient proof establishes otherwise, it shall be presumed that part of sale price has been suppressed with an intention to evade part payment of tax on turnover of sale of such goods; and

(ii) resale of any goods or on sale of taxable goods manufactured by using such purchased goods, while purchasing such goods, whether from outside the State or from inside the State, has shown purchase value of such goods lesser than the actual purchase value, unless the dealer, by furnishing sufficient proof establishes otherwise, it shall be presumed that part of the purchase value of such goods has been suppressed with an intention to evade part payment of tax on sale of -

(a) such goods by suppressing partial sale price of goods where goods are meant for resale; and

(b) goods to be manufactured, by suppressing partial sale value of manufactured goods where purchased goods are meant for use in manufacturer of any taxable goods.

(9) Where a driver or the person in charge of any vehicle carrying any taxable goods, while obtaining authorisation for transit in respect of such goods under section 52 -

(i) undertakes responsibility of transporting such goods outside the State, but fails to produce such goods along with authorisation for transit of goods before the officer in-charge of the exit check- post, unless, the owner or the person-in- charge of the vehicle, by sufficient proof establishes that the said goods have been taken outside the State, it shall be presumed that owner or the person in charge of the vehicle in collusion with the transporter who has issued goods receipts in respect of such goods, has sold the goods inside the State, or.

(ii) undertakes responsibility of handing over such goods to a disclosed bona fide person, transporter or any other carrier inside the State for carrying such goods outside the State, but fails to establish by sufficient proof that the goods were handed over to such bona fide person, transporter or carrier, as the case may be, it shall be presumed that owner or the person in charge of the vehicle in collusion with the transporter who has issued goods receipts in respect of such goods, has sold such goods inside the State; or

(iii)undertakes responsibility of handing over such goods to a disclosed bona fide person, transporter or any other carrier for carrying the goods outside the State and proves that such goods were handed over to such bona fide person, transporter or carrier, as the case may be, but such person, transporter or the carrier fails to produce such goods along with authorisation for transit of goods before the officer in-charge of the exit check- post, unless, such person, transporter or the carrier by sufficient proof establishes that the said goods have been taken outside the State, it shall be presumed that such bona fide person, transporter or carrier, as the case may be, in collusion with the transporter who has issued goods-receipts in respect of the goods, has sold such goods inside the State.

Explanation: For the purpose of this section and section 52, where a vehicle has been supplied by the owner to any person under a contract of transfer of the right to use such vehicle for any purpose, transferee of the vehicle shall be deemed owner of such vehicle and burden to prove that the vehicle has been supplied to such person under such contract, shall lie on the actual owner of such vehicle at the relevant time.

17. Registration of dealers

(1) Every dealer liable to pay tax shall obtain registration certificate.

(2) Except as provided under sub-sections (4) and (5), every dealer liable to pay tax shall, for issue of registration certificate, apply to the registering authority within a period of thirty days from the date on which such dealer has become so liable, in the prescribed form and manner along with proof of deposit of registration fee of one thousand rupees:

Provided that a dealer who fails to apply for issue of registration certificate within the time prescribed, without prejudice to any other liability under this Act, may apply after depositing late fee at the rate of rupees one hundred for every month or part thereof for the period of delay.

(3) On the commencement of this Act, a dealer who is otherwise not liable to pay tax, including a dealer who intends to carry on business, may apply for issue of registration certificate in the manner prescribed in sub-section (2).

(4)(a) Every dealer who holds a registration certificate or a provisional registration certificate issued under the Uttar Pradesh Trade Tax Act, 1948 and is liable to pay tax from the date of the commencement of this Act, shall be deemed a registered dealer on the date of the commencement of this Act; and

(b) Every other dealer who holds a registration certificate under the Uttar Pradesh Trade Tax Act, 1948 but otherwise is not liable to pay tax under this Act, shall be deemed a registered dealer under this Act provided he informs the registering authority within a period of thirty days from the date of the commencement of this Act in the prescribed form, of his intention to retain the registration certificate issued to him.

Provided that if such dealer was required to pay any fee for renewal of the registration certificate under the provisions of the Uttar Pradesh Trade Tax Act, 1948, if the same has not been paid, the registration certificate shall not be deemed valid unless such dealer deposits renewal fee along with late fee of one hundred rupees within a period of thirty days form the date of the commencement of this Act.

(5) In a case of a dealer whose application for issue of registration certificate under the Uttar Pradesh Trade Tax Act, 1948, is pending on the date of the commencement of this Act, and such dealer is liable to pay tax under this Act, if registration certificate is issued to him under the Uttar Pradesh Trade Tax Act, 1948, such dealer shall be deemed a registered dealer under this Act subject to deposit of renewal fee and late fee, if any, within thirty days from the date of the commencement of this Act.

Provided that a dealer who is otherwise not liable to pay tax under this Act from the date of the commencement of this Act, shall not be deemed a registered dealer unless, after depositing renewal fee and late fee, if any, he informs the registering authority or the assessing authority, as the case may be, in the prescribed form, within thirty days from the date of the commencement of this Act, of his intention to retain registration certificate, if granted.

(6) Every dealer who holds a registration certificate issued under the Uttar Pradesh Trade Tax Act, 1948 shall present it before the registering authority or the assessing authority, as the case may be, for grant of revised registration certificate within sixty days of the commencement of this Act.

(7) Where the registering authority is satisfied that -

(i) the application for issue of registration certificate is in order;

(ii) the information furnished is correct and complete;

(iii) the dealer-

(a) has deposited registration fee and late fee, if any;

(b) has furnished security to the satisfaction of the assessing authority or the registering authority, as the case may be, if demanded; and

it may, after making such inquiry as it may deem necessary, cause the dealer to be registered and grant registration certificate in the prescribed form.

(8) If the dealer who has applied for grant of registration certificate does not fulfill any of the conditions mentioned in sub-section (7), or if any person having interest in the business is a defaulter in payment of any dues under this Act or under the Central Sales Tax Act,1956 or under the Uttar Pradesh Trade Tax Act,1948, relating to any other business, the registering authority, shall, after giving a reasonable opportunity of being heard to the applicant, reject the application by an order in writing.

(9)Subject to provisions of sub-section (10) the registration certificate shall be valid with effect from the date it is granted and shall remain in force till the date of discontinuance of business.

(10) The registering authority, after giving reasonable opportunity of being heard to the dealer, may cancel the registration certificate with effect from the date -

(i) on which dealers' liability for payment of tax has ceased in view of the proviso to sub-section (6 ) of section 3; or

(ii) on which the dealer has discontinued the business; or

(iii) of order of cancellation where-

(a) the dealer has obtained registration certificate by fraud or by mis-representation of facts; or

(b) the dealer has failed to furnish security or additional security, as the case may be; or

(c) the dealer has transferred any prescribed form of declaration or certificate obtained by him to any person against provisions of this Act; or

(d) the dealer has permitted some other person to carry on business in his name;

(e) the dealer has issued any tax invoice to a dealer without making actual sale of goods,

(11) During cancellation proceedings under sub-section (10), where the registering authority is satisfied that the dealer will succeed in causing revenue loss, pending action for cancellation under sub-section (10), it may, after assigning reasons therefor, suspend the registration certificate by passing an order in writing, for the period during which the proceedings are pending.

Provided that if the dealer, by furnishing adequate security to the satisfaction of the registering authority, satisfies that revenue loss, if any, shall be made up by him, the registering authority may revoke the suspension of registration certificate.

(12) During the period of suspension of registration certificate under sub-section (11), the dealer shall be treated as unregistered dealer.

(13) The registering authority, after considering any information furnished or otherwise received and after making such inquiry as it may deem fit, amend from time to time any certificate of registration which shall take effect:

(a) in the case of change in the name, ownership or place of business, or opening of a new place of business, from the date of the event necessitating the amendment whether or not information in that behalf is furnished within the time prescribed under section18.

(b) in case of any addition or modification in the description of any goods or class of goods in the certificate of registration, from the date of event necessitating the amendment if information in that behalf is furnished within the time prescribed under section 18 and in any other case, from the date of receipt of request for such addition or modification by the registering authority or the assessing authority, as the case may be;

Provided that where in consequence of a change in the ownership of a business, liability for payment of tax of any dealer ceases, the amendment of the certificate of registration shall take effect from the date on which information in respect of such change is furnished under section 18.

Explanation (I) - Any amendment of a certificate of registration under this sub-section shall be without prejudice to any liability for tax or penalty imposable, or for any prosecution for an offence under this Act.

Explanation (II)-For the removal of doubts, it is hereby declared that where a registered dealer-

(a) affects a change in the name of his business; or

(b) is a firm and there is change in the constitution of the firm without dissolution thereof; or

(d) Is a guardian of the ward and there is a change in the guardian; or

(e) is a "Hindu Undivided Family" and the business of such family is converted into a partnership business with all or any of the coparceners as partners thereof then merely by reason of any of the circumstances aforesaid, it shall not be necessary for the dealer or the firm the constitution whereof is changed, or the new trustees, or the new guardian or, as the case may be, the partners of such partnership business, to apply for a fresh certificate of registration, and on information being furnished in the manner required by section 18 the certificate of registration shall be amended.

(14) The registration certificate shall not be cancelled or amended by the registering authority on its own motion unless the dealer has been given reasonable opportunity of being heard.

18. Information to be furnished regarding change of business

If any dealer to whom the provisions of section 17 apply:-

(a) transfers his business or any part thereof by sale, lease, leave, license, hire or in any other manner whatsoever, or otherwise disposes of his business or any part thereof; or

(b) acquires any business, whether by purchase or otherwise; or

(d) discontinues his business or changes his place of business or warehouse or opens a new place of business or warehouse; or

(e) changes the name, style or nature of his business or effects any change in the class or description of goods in which he carries on his business, as specified in his certificate of registration; or

(f) enters into partnership or other association in regard to his business; or

(g) starts a new business or joins another business either singly or jointly with other persons; or

(h) in the case of a company incorporated under a statute effects any change in the constitution of Board of Directors; or

(i) effects any change in the particulars furnished in application for grant of registration certificate under section 17,

he shall within thirty days of the occurring of any of the events aforesaid, inform the registering authority in the form and manner, as may be prescribed.

19. Security in the interest of revenue

(1) Where it appears necessary to the registering authority so to do -

(a) for the proper realisation of any tax, penalty or other sums due or payable under this Act; or

(b) for the proper custody or use of forms prescribed under this Act or the rules framed thereunder; or

it may, by an order in writing and for reasons to be recorded therein, direct, before the grant or as the case may be, at any time while such certificate is in force, that the dealer or the person concerned shall furnish, in the prescribed manner and within such time as may be specified in the order such security or, if dealer or person concerned has already furnished such security, additional security of any nature, as may be specified, for all or any of the aforesaid purposes.

(2) No dealer or the person concerned shall be required to furnish any security or additional security under sub-section (1) by the registering authority unless he has been given an opportunity of being heard, and the amount of such security or additional security that may be required to be furnished by any dealer shall also in no case exceed the tax payable, in accordance with the estimate of such authority on the turnover of the dealer for the assessment year in which such security is required to be furnished.

(3) Notwithstanding anything contained in sub-section (1) or sub-section (2) the Commissioner may, in respect of any goods notified by the Government in this behalf, by a general order in writing, direct that a cash security of such amount as may be specified in such order shall be required to be furnished by a dealer or person requiring any of the forms prescribed under this Act.

(4) Where the security furnished by a dealer or person concerned under sub-section (1) is in the form of a surety bond and any surety dies or becomes insolvent, the dealer or the person concerned shall, within thirty days of the occurrence of any of the aforesaid events, inform the authority granting the certificate under section 17 or issuing the forms referred to in clause (b) of sub-section (1), as the case may be, and shall within sixty days of such occurrence furnish a fresh surety bond or furnish in the prescribed manner other security for the amount of the bond.

(5) The assessing authority may, by order and for good and sufficient cause, forfeit the whole or any part of the security furnished by a dealer or the person concerned -

(a) for realising any amount of tax, penalty or other amount payable by the dealer or the person concerned; or

(b) if any dealer or person concerned is found to have misused any of the forms referred to in sub-section (1) or to have failed to keep them in proper custody;

Provided that no order shall be passed under this sub-section without giving the dealer or the person concerned an opportunity of being heard.

(6) Where by reason of an order under sub-section (5) the security furnished by any dealer or the person concerned is rendered insufficient, he shall make up the deficiency in such manner and within such time as may be directed by the assessing authority.

(7) The registering authority may -

(a) refuse to grant; or

(b) suspend any such certificate already issued; or

to any dealer or the person concerned, who has failed to comply with an order under sub-section (1) or sub-section (3), or with the provisions of sub-section (4 ) or sub-section (6 ), until the dealer or the person concerned has complied with such order or such provisions, as the case may be:

Provided that no order under clause (a) or clause (b) above, shall be passed without giving the dealer or the person concerned an opportunity of being heard.

(8) The registering authority may, on application by the dealer or the person concerned, order the return of the surety bond or refund any amount or part thereof deposited by way of security by the dealer or the person concerned under this section or under any other section if it is not required for the purpose of this Act.

(9) An appeal under section 59 shall lie against an order passed under this section.

(10) Any person aggrieved by an order of the appellate authority may, within ninety days of the service of the order on him but after furnishing the security, file an appeal before the Tribunal under section 61.

(11) The provisions of this section shall mutatis mutandis, apply in relation to security required to be furnished under the order of any authority under this Act or the Court.

20. Quoting of Taxpayers' Identification Number, etc.

(1) Every registered dealer shall quote his Taxpayers’ Identification Number, allotted to it on his registration certificate, on all correspondence made, statement and return submitted, information furnished and documents issued by him and on each copy of treasury challan while depositing amount of tax, fee or any other dues under this Act.

(2) While making purchases of any taxable goods, if purchaser of such goods demands, the selling dealer shall show his registration certificate.

(3) While making purchases of any taxable goods, every purchasing dealer shall give his name, address and Taxpayers’ Identification Number, if any, to the selling dealer and the selling dealer shall mention such particulars on tax invoice, sale invoice, transport memo, challan or transfer invoice, as the case may be, issued by him.

(4) Every registered dealer shall present registration certificate issued to him before an officer or official of the State Government whenever required by such officer or official in connection with any proceedings under this Act.

(5) Every dealer who possesses Permanent Account Number allotted under the Income-Tax Act, 1961, shall mention such number on annual return of turnover and tax and shall furnish such number whenever required by any authority under this Act.

21. Accounts and documents to be maintained by dealers

(1) Every dealer liable to pay tax shall keep and maintain a true and correct account showing the value of the goods sold and bought by him, and in case the accounts maintained in the ordinary course do not show the same in an intelligible form, he shall maintain true and correct account in such form, as may be prescribed in this behalf.

(2) A manufacturer liable to pay tax under the Act shall, in addition to the accounts referred to in other sub-sections, maintain stock books in respect of goods used or consumed in manufacture as well as the products obtained at every stage of production.

Provided that in the case of any class of manufacturers, the aggregate of whose turnover, as defined in explanation to sub-section (2) of section 3, in an assessment year does not exceed ten lakh rupees, the Commissioner, and in any other case the State Government, may relax the requirements of this sub-section subject to such conditions and restrictions as he or it may deem fit to specify.

(3) The accounts, documents and the stock books required to be maintained under this section shall be preserved by the dealer for such period as may be prescribed.

(4) Every registered dealer who consigns or delivers any goods or class of goods specified in the rules made under this Act or such other goods or class of goods, as the State Government may, by notification in the Gazette, specify in this behalf, of such quantity, measure or value as may be notified, to a dealer whether by reason of sale or otherwise, shall issue to the purchaser or consignee person of goods, a transport-memo in prescribed manner and in prescribed form obtained from the assessing authority having jurisdiction over the area in which principal place of such dealer is situated.

(5) Except as provided in sub-section (4) every dealer liable to pay tax while consigning or delivering any taxable goods to another dealer whether as a result of sale or otherwise, shall issue to the purchaser or consignee person of goods, a legible challan or transfer invoice in the prescribed manner containing such particulars, as may be prescribed,.

(6) Where any goods are transported by road, original copy of transport memo referred to in sub-section (4) or challan or transfer invoice referred to in sub-section (5), as the case may be, completed in all respects shall accompany the goods during journey of goods.

(7) Person transporting the goods for delivery to the consignee shall fill in the particulars in the relevant columns provided on transfer memo, challan or transfer invoice, as the case may be, and shall deliver such transport memo, challan or transfer invoice to the consignee dealer along with goods.

(8) Every dealer who receives any form of declaration or certificate prescribed under this Act or rules made thereunder, from its assessing authority or from any other person, shall use them in the prescribed manner and shall keep an account, in the prescribed manner, of all such used and unused forms of declaration or certificates including forms of declaration or certificates received from other persons.

(9) No dealer shall transfer to any person and no person shall receive from any person any certificate or any form of declaration prescribed under the rules made under this Act except as provided under this Act or the rules made thereunder.

(10) Where a dealer disposes of taxable goods in more than one of the following ways:

(i) makes sale of goods inside the State; or

(ii) consigns goods to other dealers for sale inside the State; or

(iii) makes sale of goods in the course of inter-state trade or commerce; or

(iv) makes sale of goods in the course of the export of the goods out of or in the course of the import of the goods into, the territory of India; or

(v) consigns goods out side the State otherwise than as a result of sale,

shall, as far as possible, keep separate account of purchase, sale, receipt and dispatch of goods for each such purpose.

(11) A dealer who claims input tax credit under section 13 shall maintain a register in respect of tax period wise computations of amount of input tax credit.

(12) A dealer who maintains or keeps books, accounts or documents in a computer, shall also maintain day to day print out of all such books, accounts and documents.

(13) Every dealer liable to pay tax shall prepare an inventory of all goods held in stock, as mentioned hereunder, along with their purchase value, on following dates:

(i) goods held in opening stock on the date on which the dealer becomes liable to pay tax;

(ii) goods held in closing stock on the last date of each assessment year;

(iii) goods held in opening stock on the date on which liability of payment of tax of a dealer under proviso to sub-section (6) of section 3 ceases;

(iv) goods held in closing stock on the date of discontinuance of business.

Provided that a manufacturer shall also prepare a list of goods used or consumed in manufacture, processing or packing of any manufactured or semi-manufactured goods held in stock on the aforesaid dates along with their purchase value.

22. Tax invoice, sale invoice, etc. to be issued by dealer

(1) In respect of goods and in the circumstances mentioned below, every registered dealer liable to pay tax on sale of such goods shall issue to the registered purchasing dealer, a tax invoice in the prescribed form and manner containing such particulars as may be prescribed, and shall charge separately the amount of tax payable by him -

(i) all taxable goods except goods notified under provisions of clause (d) of sub-section (1) of section 34,

(ii) goods notified under provisions of clause (d) of sub-section (1) of section 34, where goods sold belong to a registered principal or where the selling dealer sells his own goods.

(2) Where a registered dealer sells any goods notified under provisions of clause (d) of sub-section (1) of section 34 to a registered dealer on behalf of an unregistered principal, he shall issue to the purchasing dealer a sale invoice in the prescribed form and manner containing such particulars as may be prescribed:

Provided that selling dealer after charging amount of tax on such sale invoice shall subtract such amount from the total amount of the sale invoice and purchasing registered dealer shall deduct such amount under the provision of the clause (d) of sub-section (1) of section 34.

Explanation : For the purpose of this sub-section, sub-section (1) and clause (d) of sub-section (1) of section34, a "registered principal" means a principal who is a registered dealer and " unregistered principal" means a principal other than a registered dealer.

(3) Subject to provisions of sub-section (1) and sub-section (2), every dealer liable to pay tax, in respect of sale of all goods in the circumstances mentioned hereunder, shall issue to the purchaser a sale invoice in the prescribed form and manner containing such particulars as may be prescribed, where–

(i) sale value of single sale exceeds the amount prescribed in this behalf; or

(ii) purchaser of goods demands a purchase invoice; or

(iii) any other law prescribes for issues of sale invoice, bill or cash memo in respect of such sale of goods; or

(iii) selling dealer as a practice issues a sale invoice, bill or cash memo in respect of all sales:

Provided that the State Government may prescribe different forms of sale invoice for different class of dealers or for different goods or class of goods.

(4) On every tax invoice under subsection (1) and on every sale invoice under sub-section (2) selling dealer shall charge amount of tax separately and on a sale invoice issued under sub-section (3) amount of tax shall not be charged separately even if selling dealer is liable to pay tax on such sale.

(5) Office copy of tax invoice or sale invoice shall be preserved by the dealer for the period prescribed under sub-section (3) of section 21.

(6) Every dealer, while making purchases of any goods from a dealer, shall give his name, address and Taxpayers’ Identification Number, if any, to the selling dealer.

(7) Where a dealer liable to pay tax purchases any taxable goods from a person other than a registered dealer and if the person selling such goods does not issue sale invoice, the purchasing dealer shall issue to the seller a purchase invoice in respect of such purchase in the prescribed form and manner containing such particulars as may be prescribed and shall obtain signature or thumb impression of the person selling the goods.

(8) Subject to provision of section 34, any person, while purchasing any goods, shall not deduct any amount as tax from the amount payable to the person selling goods.

23. Realisation of tax on sale or purchase of goods

(1) Except as provided in section 22 and section 34, no person shall realise any amount in the name and colour of tax in respect of a sale or purchase of any goods.

(2) Where amount of tax charged in tax invoice or sale invoice, as the case may be, exceeds the amount of tax payable and the selling dealer allows a refund or credit of such excess amount to the purchaser, he shall issue to the purchaser of goods a credit note containing such particulars as may be prescribed.

(3) Where amount of tax payable in respect of a sale exceeds the amount of tax charged in a tax invoice or the sale invoice, as the case may be, and the selling dealer receives balance amount or credit of such balance amount from the purchaser, the selling dealer shall issue to the purchaser of goods a debit note containing such particulars as may be prescribed.

(4) Where in respect of purchase of any goods, a tax invoice has been received by a dealer and such goods are returned or rejected by such dealer, the purchasing dealer shall account for the amount of tax in his books of account maintained in the ordinary course of business, and shall-

(i) issue a debit note of the amount of tax to the seller; and

(ii) receive a credit note of the amount of tax from the seller.

Chapter – IV

Assessments, Payment, Recovery and Collection of Tax

24. Submission of return

(1) Every dealer liable to pay tax under this Act including a dealer from whom any amount of tax has been deducted at source under section 34, shall, for such tax period and within such time, as may be prescribed, submit return of his turnover and tax, in such form and verified in such manner as may be prescribed, but the assessing authority may in its discretion and for reasons to be recorded, extend the date for submission of the return by any dealer or class of dealers:

Provided that every dealer liable to pay tax including a dealer who claims input tax credit, shall also submit along with return a list of purchases of goods from registered dealers and list of sales of goods to registered dealers during the tax period containing such particulars as may be prescribed.

Provided further that a dealer who has claimed input tax credit during any period of an assessment year, along with return of the last tax period of such assessment year, shall, in the prescribed form and manner, submit details of goods held in stock at the close of the assessment year and amount of input tax credit claimed in respect thereof.

(2) Before submitting the return under sub-section (1), the dealer shall, in the manner prescribed, deposit the amount of tax payable shown in such return along with amount, if any, realized in excess of amount of tax due under this Act from purchaser of goods during the tax period.

(3) Every person or dealer to whom provisions of section 34 apply, shall, in respect of dealers from whom any amount of tax has been deducted, submit such statement as may be prescribed, within the time prescribed under sub-section (8) of section 34.

(4) Where as a consequence of the date for the submission of return being extended under sub-section (1) on the application of the dealer, the deposit of tax under sub-section (2) is deferred, there shall be payable simple interest at the rate of eighteen percent per annum on such deposit from the date immediately following the last date prescribed for submission of the return till the date of deposit of such amount.

(5) If any dealer discovers any omission or other error in any return submitted by him, he may, at any time before the expiry of the time prescribed for submitting the next return, submit a revised return. If the revised return shows a greater amount of tax to be due than was shown in the original return, the dealer shall also deposit separately the difference of tax due and the interest payable under sub-section (4) as if the time for submitting the original return had been extended on the application of the dealer to the date of submission of the revised return, if, however, the revised return shows lesser amount of tax to be due than was shown in the original return the dealer may adjust the excess amount towards the tax due for the subsequent tax periods.

(6) If goods sold or purchased by a dealer are returned within six months of the date of sale or purchase, and assessment for the year to which such sale or purchase relates is as yet to be made, the dealer may, within thirty days of the expiry of the month in which such goods are returned, submit for that purpose only a revised return for the tax period during which such sale or purchase was made.

(7) Every dealer liable to pay tax under this Act, including a dealer who has carried on business during part of an assessment year, shall, for such assessment year or for part of such assessment year, as the case may be, submit annual return of turnover and tax within such time and in such form and manner, as may be prescribed.

Provided that on the application of the dealer, in an appropriate case, the assessing authority may extend the period for submitting annual return but such extended period shall not exceed ninety days beyond the time prescribed for submitting such return.

(8) Every person to whom provisions of section 34 apply, shall, for each assessment year, in respect of such dealers from whom amount of tax has been deducted, submit such details, in such form and manner and within such time as may be prescribed.

25. Assessment of tax for a tax period

(1) Where in respect of any tax period of an assessment year-

(i) any dealer has not submitted return of turnover and tax within the time prescribed or within the time extended by the assessing authority, or if return has been submitted without payment of tax shown payable in such return; or

(ii) preliminary examination of return, by the assessing authority, reveals that computations shown in the return are wrong or amount of input tax credit claimed or tax payable shown is incorrect; or

(iii) on the basis of material available on records with the assessing authority, it appears to the assessing authority that the turnover of sales or purchases or both, disclosed by the dealer is not worthy of credence;

the assessing authority may, after making such inquiry as it may deem fit and after giving a reasonable opportunity of being heard to the dealer, determine -

(i) to the best of its judgment the turnover, amount of tax payable and amount of input tax credit admissible, in a case in which assessing authority is of the opinion that turnover disclosed by the dealer is not worthy of credence; or

(ii) the amount of tax payable and amount of input tax credit admissible, in any other case,

by passing a provisional order of assessment for such tax period.

(2) No provisional order of assessment, under sub-section (1), for any tax period of an assessment year, shall be made after the dealer has submitted annual return of turnover and tax and where such annual return has not been submitted by the dealer within the time prescribed or within the time extended by the assessing authority, after expiration of such time.

(3) Amount of tax assessed under sub-section (1) in excess of the amount of tax deposited by the dealer, shall be paid by the dealer, in the prescribed manner, within a period of thirty days from the date of service of the order of assessment and notice of demand on it.

26. Assessment for an assessment year

(1) Subject to provisions of this Act, in respect of every dealer liable to pay tax, for each assessment year, there shall be an assessment of tax payable by the dealer and amount of input tax credit admissible to the dealer.

Provided that where the dealer has carried on business during a part of the assessment year, such assessment shall be for such part of the assessment year.

(2) Subject to provisions of sub-section (4), every dealer, who has submitted annual return, shall be deemed to have been self assessed to an amount of tax admittedly payable on the turnover of purchase or sale or both, as the case may be, disclosed, and to an amount of input tax credit shown admissible in such return.

(3) For all purposes under this Act and rules made thereunder –

(i) annual return submitted, shall be deemed to be an assessment order and facts disclosed or figures mentioned in such return shall be deemed part of such assessment order; and

(ii) last date of the assessment year succeeding the assessment year in which the date prescribed for submission of annual return falls, shall be deemed to be the date of such assessment order.

(4) In cases of –

(i) approximately twenty percent of such dealers as are liable to pay tax in any assessment year and who are specified or selected by the Commissioner or by an officer, not below the rank of an Additional Commissioner, authorized by the Commissioner in this behalf, before the expiry of the assessment year succeeding the assessment year for which assessment is to be made; and

(ii) dealers falling in any of the category below,

(a) a dealer who has not submitted annual return within the time prescribed or extended; or

(b) a dealer by whom return for one or more tax periods of the assessment year have not been submitted; or.

(c) a dealer in whose case assessing authority has passed provisional assessment order under section 25 in respect of one or more tax periods to the best of its judgment; or

(d) a dealer in whose case, on the basis of material available on records, if the assessing authority is satisfied that the turnover of sales or purchases or both, as the case may be, disclosed by the dealer in annual return of turnover and amount of tax payable shown is not worthy of credence or tax shown payable in the return has not been deposited by the dealer, or the amount of input tax credit claimed is wrong or the amount of tax payable shown is incorrect; or

(e) a dealer about whom there is presumption that he has made any sale or purchase of any taxable goods under this Act; or

(f) a dealer who has prevented or obstructed an officer empowered to make survey, inspection, search or seizure under the provisions of this Act; or

(g) except a dealer who has opted any scheme of payment of composition money under provisions of section 27, a dealer in whose case amount of tax has been deducted at source under section 34; or

(h) a person who has obtained authorization for transit of goods through the State and there is presumption that such goods have been sold within the State;

the assessing authority, after detailed examination of books, accounts and documents kept by the dealer in relation to business and after making such inquiry as it may deem fit, subject to provisions under sub-section (5), shall, -

(i) where assessing authority is satisfied about correctness of turnover of sale or purchase or both, as the case may be, disclosed by the dealer, assess the amount of tax payable by the dealer on such turnover and determine the amount of input tax credit admissible to the dealer or amount of reverse input tax credit payable by the dealer; and

(ii) where assessing authority is of the opinion that turnover of sale or purchase or both, as the case may be, disclosed by the dealer is not worthy of credence, determine to the best of its judgment the turnover of sale or purchase or both, as the case may be, and assess the tax payable on such turnover and determine admissible amount of input tax credit and reverse input tax credit payable by the dealer.

(5) Before making an assessment under sub-section (5), dealer shall -

(h) be required to furnish annual return of turnover and tax referred to in sub-section (7) of section 24, if he has not submitted such return;

(ii) be given reasonable opportunity of being heard; and

(iii) be served with a notice to show cause, where determination of turnover, input tax credit or reverse input tax credit, or assessment of tax, all or any one of them, as the case may be, are to be made to the best of the judgment of the assessing authority.

(6) The show cause notice referred to in sub-section (5) shall contain all such reasons on which the assessing authority has formed its opinion about incorrectness of the turnover of sale or purchase or both, as the case may be, amount of tax, amount of input tax credit or amount of reverse input tax credit:

Provided that where opportunity for production of books, accounts and documents has been afforded to the dealer but for any reason he has not availed such opportunity and thereby the assessing authority could not examine the correctness and propriety of particulars shown in the return, it shall not be necessary for the assessing authority to give show cause notice to such dealer before making assessment to the best of its judgment.

(7) Order of assessment shall be in writing and copy of assessment order along with notice of demand of the amount of tax, if any, to be deposited by the dealer, shall be served on the dealer.

(8) Dealer shall deposit amount of tax assessed in excess of amount of tax deposited by him for the assessment year, within a period of thirty days after the date of service of the assessment order and notice of demand. If the amount of tax deposited by the dealer is found in excess of tax assessed, the same shall be refunded to the dealer according to the provisions of the Act.

(9) Assessing authority shall not be precluded from making assessment order under this section on the ground of passing of any provisional assessment order in respect of any tax period under section 25 and such provisional assessment order shall stand merged in the assessment order passed under this section.

(10) Notwithstanding anything contained contrary in this Act, in cases of following dealers or class of dealers, such number of assessments as mentioned below, may be made for the same assessment year:

(i) cases relating to issue of authorisation for transit of goods through the State, separate assessment relating to each such authorisation;

(ii) where an unregistered dealer brings any taxable goods from outside the State more than once during an assessment year, separate assessment relating to goods brought on each occasion.

(11) Dealers under sub-section (10) shall not be required to furnish annual return of turnover and tax and in cases of such dealers assessment under sub-section (10) may be made even before the expiry of the assessment year.

27. Composition of tax liability

(1) Notwithstanding anything contained in this Act, the State Government may announce a scheme payment of lump sum in lieu of amount of tax payable in respect of turnover of sale or purchase or both of taxable goods (hereinafter referred to as composition scheme), in the circumstances mentioned hereunder, and the assessing authority subject to provisions of the scheme may agree to accept -

(a) a lump sum, based on estimated value addition in trading of any taxable goods, in lieu of amount of difference of tax payable on actual turnover of sale of such goods and amount of input tax credit admissible in respect of purchase of such goods during any assessment year, from any dealer who:

(i) makes retail sales of goods and does not issue tax invoice;

(i) carries on business of purchase and sale of goods in his own account and makes purchase and sale of goods inside the State only;

(ii) does not consign any goods outside the State whether by reason of a sale or otherwise;

(iv) does not sell any goods brought or received from outside the state;

and whose aggregate of turnover of sale during the assessment year preceding the assessment year under scheme, has not exceeded rupees twenty five lakh and whose estimated aggregate of turnover of sale, for the assessment year under scheme, is not likely to exceed rupees twenty five lakh.

(b) a lump sum in lieu of aggregate of amount of–

(i) tax payable by a brick kiln owner or lessee of brick-kiln on actual turnover of sale of self manufactured bricks, brick-tiles and surakhi or rabish manufactured in such brick-kiln and brick-bats, brick-ballasts, brick-gitti, and brick-rori made out of such bricks or brick-tiles, during the period of composition scheme whether such goods are manufactured prior to or during the period of scheme, in excess of amount of input tax relating to goods used or consumed in manufacture of such goods as are manufactured and sold during the period under scheme;

(ii) tax payable on turnover of purchase of taxable goods from persons other than registered dealers where such goods, purchased during the period of composition scheme, are used, consumed or utilized in manufacture of goods referred to in sub-clause (i) and such manufactured goods are sold during the period under scheme; and

(iii) special additional tax payable on turnover of sale of goods referred to in sub-clause (i) during the period under the composition scheme.

(c) in respect of the execution of a works contract of civil nature specified under the composition scheme, a lump sum in lieu of aggregate of -

(i) amount of tax payable in respect of purchase of any taxable goods where such goods are purchased from inside the State from a person in the circumstances mentioned in sub-section (4) of section 3 and are incorporated in such works contract;

(ii) amount of tax payable on the turnover of sale of any taxable goods where such goods are purchased from inside the State and are incorporated in such works contract;

(d) in respect of the execution of a works contract of civil nature specified under the composition scheme, a lump sum amounting to tax computed on turnover of sale of any taxable goods estimated in the manner provided under the scheme and according to rate of tax applicable to sale of such goods where such goods are brought or received from outside the State and are incorporated in the works contract, in lieu of amount of tax payable on the actual turnover of sale of such goods.

(e) in respect of dealers or class of dealers, in respect of such goods or class of goods and for such period, as may be specified under the composition scheme, a lump sum in lieu of amount of tax payable by a dealer, on actual turnover of sale of any taxable goods during the period under the scheme, where such dealer makes sale of such goods by way of transfer of right to use goods (whether or not for a specified period) for any purpose,

(f) a lump sum in lieu of amount of tax payable by a casual unregistered dealer on actual turnover of sale of any taxable goods or class of such goods sold during such period, as may be specified under the scheme;

(g) in case of an unregistered dealer, a lump sum, to be determined in the manner provided under the composition scheme, in lieu of amount of tax payable by such dealer on actual turnover of purchase or sale of any taxable goods where such dealer has been presumed to have made such purchase or sale or both, as the case may be, of such goods under any provision of this Act;

(h) a lump sum amounting to tax payable on turnover of sale of any taxable goods estimated in the manner provided under the composition scheme, in lieu of amount of tax payable on actual turnover of sale of such goods where such goods are being brought or received by an unregistered dealer from outside the State for sale.

(2) Dealers under clause (a) and clause (e) shall be liable to pay tax in respect of turnover of purchase of taxable goods where such purchase is made from a person other than a registered dealer.

(3) A dealer who opts any composition scheme of payment of lump sum under this section shall not be entitled to claim input tax credit in respect of goods sold in the period of the scheme or any goods used or consumed in manufacture of any goods sold in the period of the scheme.

(4) A dealer who opts any composition scheme shall not be liable to submit returns of turnover of purchase or sale or both, as the case may be, for such tax periods as are covered under the period of the scheme if lump sum has been accepted in lieu of tax on such turnover.

(5) A dealer who opts any composition scheme of payment of lump sum in lieu of amount of tax due on the turnover of sales of any goods shall not realise any amount from the purchasers in the name and colour of tax.

(6) A dealer who makes purchase of any goods from a dealer, who has opted any composition scheme, shall not be entitled to claim input tax credit in respect of goods purchased from such dealer.

(7) In case of a dealer falling under clause (a) of sub-section (1), if during the assessment year under the composition scheme, aggregate of his turnover of sale exceeds rupees twenty five lakh, the dealer shall be liable to pay tax in accordance with other provisions under this Act, on such exceeded turnover of sale of taxable goods.

(8) Except a dealer falling under clause (g) or clause (h) of sub-section (1), every other dealer to whom this section applies, shall furnish such information, as may be prescribed.

28. Assessment of tax of turnover escaped from assessment

(1) If the assessing authority has reason to believe that the whole or any part of the turnover of a dealer, for any assessment year or part thereof, has escaped assessment to tax or has been under assessed or has been assessed to tax at a rate lower than that at which it is assessable under this Act, or any deductions or exemptions have been wrongly allowed in respect thereof, the assessing authority may, after issuing notice to the dealer and making such inquiry as it may consider necessary, assess or reassess the dealer to tax according to law :

Provided that the tax shall be charged at the rate at which it would have been charged had the turnover not escaped assessment, or full assessment as the case may be.

Explanation I: - Nothing in this sub-section shall be deemed to prevent the assessing authority from making an assessment to the best of its judgement.

Explanation II: - For the purpose of this section and of section 31, " assessing authority" means the officer or authority who passed the earlier assessment order, if any, and includes the officer or authority having jurisdiction for the time being to assess the dealer.

Explanation III: - Notwithstanding the issuance of notice under this sub-section, where an order of assessment or re-assessment is in existence from before the issuance of such notice it shall continue to be effective as such, until varied by an order of assessment or re-assessment made under this section in pursuance of such notice.

(2) Assessment order for any tax period of an assessment year may be made within the time prescribed under section 25.

(3) Except as otherwise provided in this section or section 70, no order of assessment or re-assessment under any provision of this Act for any assessment year shall be made after the expiration of five years from the end of such assessment year:

(4) Where the notice under sub-section (1) for any assessment year has been served within a period of five years after expiry of the assessment year to which assessment or re-assessment relates, the assessment or reassessment may be made within a period of five years and six months after the expiry of such assessment year.

(5) Where appellate authority, revising authority, Tribunal, High Court or the State Government has -

(i) set aside an order of assessment or reassessment and has remanded the case to the assessing authority; or

(ii) for want of reasonable opportunity of being heard, set-aside or has directed the assessing authority to set aside an exparte order of assessment or re-assessment; or

(iii) quashed any order of assessment or reassessment for want of jurisdiction or for want of notice,

the assessing authority may make order of assessment or re-assessment before expiry of the assessment year succeeding the assessment year in which such order or direction is received by the assessing authority by due process:

Provided that where any assessment or reassessment order is quashed by any authority or Court, for want of notice or for want of jurisdiction, the order of assessment or re-assessment may be made by the competent assessing authority after serving notice on the dealer.

(6) Where an order of assessment or reassessment has been set aside by the assessing authority himself under section 32, a fresh order of assessment or re-assessment may be made before expiry of the assessment year in which such order of assessment or re-assessment has been set aside.

Provided that if an order of assessment or re-assessment made exparte is set aside on or after first day of October in any assessment year, fresh order of assessment or re-assessment may be made on or before thirtieth day of September of the assessment year succeeding the assessment year in which such ex parte order of assessment or re-assessment was set aside.

(7) Where the Commissioner on his own or on the basis of reasons recorded by the assessing authority, is satisfied that it is just and expedient so to do, authorises the assessing authority in that behalf, such assessment or reassessment may be made within a period of eight years after expiry of assessment year to which such assessment or reassessment relates notwithstanding such assessment or reassessment may involve a change of opinion.

Provided that it shall not be necessary for the Commissioner to hear the dealer before authorising the assessing authority.

(8) Where the proceedings for assessment or re-assessment for any assessment year remain stayed under the order of any court or authority, the period commencing on the date of stay order and ending with the date of receipt by the assessing authority concerned of the order vacating stay, shall be excluded in computing the period of limitation provided in this section:

Provided that if in computing the limitation as aforesaid, the last date for passing an assessment or re-assessment falls on any date before first day of October in any assessment year, assessment or re-assessment may be made before the expiry of such assessment year and in a case in which such date falls after thirtieth day of September of any assessment year, order of assessment or re-assessment may be made before the expiry of the assessment year subsequent to assessment year in which such date falls.

(9)Where in the assessment or re-assessment of a dealer for any assessment year, any assessing authority, -

(a) has included any turnover and any superior authority or Court has, in exercise of the powers lawfully vested in it, held such turnover to relate to the assessment of-

(i) such dealer for any other assessment year, or

(ii) such dealer under the Central Sales Tax Act, 1956, or

(iii) any other dealer, whether under this Act, or under the Central Sales Tax Act, 1956,

(b) has not included any turnover on the ground that if relates to assessment under the Central Sales Tax Act, 1956 and any superior Authority or Court has, in exercise of the powers lawfully vested in it, held such turnover to relate to the assessment of that dealer under this Act, whether for such assessment year or any other assessment year,

then nothing contained in this section limiting the time shall apply to assessment or re-assessment whether under this Act or under the Central Sales Tax Act, 1956 of such dealer or such other dealer, relating to such assessment year or such other assessment year, as the case may be.

(10) Where the assessing authority has reason to believe that any person with a view to evade payment of tax or in order to claim any input tax credit or rebate which he otherwise is not eligible for or was carrying on business in the name of, or in association with any other person either directly or indirectly, whether as an agent, employee, manager, partner or power of attorney holder or guarantor, relative or sister concern or in any other capacity, such person and the person in whose the name the registration certificate, is taken, shall be liable severally and jointly for payment of tax, interest or penalty which shall be assessed, levied and recovered from all or any such person as if such person or persons are dealers under this Act. However, before taking any action, the person concerned shall be given a opportunity of being heard.

(11) Where the State Government is of the opinion that due to any extra-ordinary circumstances prevalent in any assessment year in the State or any part of it, it will be difficult to complete assessment or re-assessment in any case or class of cases in respect of which limitation for passing assessment or re-assessment expires in such assessment year, for the purpose of making assessment or re-assessment in such a case or class of cases, it may, by notification in the Gazette, extend the time limit upto one year beyond the time limit prescribed under this section.

29. Assessment of escaped turnover in case of price variation

Where under agreement between seller and purchaser it is agreed that sale price of goods due to price escalation shall be settled on a later date and in the circumstances such date falls in any assessment year subsequent to the assessment year in which such goods were sold, amount receivable due to price settlement, for all purposes under this Act, shall be deemed to be turnover during the tax period in which such settlement is made, but the tax on such turnover of sale shall be charged at the rate prevalent at the time of sale.

30 Rounding off of turnover, tax etc.

(1) The amount of turnover, determined in the prescribed manner shall if such amount is not in the multiple of ten, be rounded off to the nearest multiple of ten rupees, that is to say, a part of ten rupees which is less than five rupees shall be ignored and any other part shall be counted as ten rupees. The amount so rounded off shall be deemed to be the turnover of the assessee for the purpose of assessment of tax under this Act.

(2) The amount of tax, fee, interest, penalty or any other sum payable or the amount of refund due under the provisions of this Act shall, where such amount contains part of a rupee, be rounded off to the nearest rupees, that is to say, a part of a rupee which is less than fifty paise shall be ignored and any other part shall be counted as one rupee.

31 Rectification of mistakes

(1) Any officer, authority, the Tribunal or the High Court may on its own motion or on the application of the dealer or any other interested person rectify any mistake apparent on the face of record, in any order passed by him under this Act, within three years from the date of the order sought to be rectified:

Provided that where an application under this sub-section has been made within such period of three years, it may be disposed of even beyond such period:

Provided further that no rectification which has the effect of enhancing the assessment, penalty, fees or other dues, shall be made unless reasonable opportunity of being heard has been given to the dealer or other person likely to be affected by such enhancement.

(2) Where such rectification has the effect of enhancing the assessment, the assessing authority shall serve on the dealer a revised notice of demand in the prescribed form and therefrom all the provisions of the Act shall apply as if such notice had been served in the first instance.

32. Power to set aside exparte order of assessment or penalty

(1) In any case in which an order of assessment or re-assessment or order of penalty is passed exparte, the dealer may apply to the assessing authority within thirty days of the service of the order to set aside such order and re-open the case; and if such authority is satisfied that the applicant did not receive notice or was prevented by sufficient cause from appearing on the date fixed, it may set aside the order and reopen the case for hearing:

Provided that no such application for setting aside an ex prate assessment order shall be entertained unless it is accompanied by satisfactory proof of the payment of the amount of tax to be due under this Act on the turnover of sales or purchases, or both, as the case may be, admitted by the dealer in the returns filed by him or at any stage in any proceeding under this Act, whichever is greater.

(2) Where an assessment order under sub-section (1) of section 25 is passed, exparte, the dealer may apply to the Assessing Authority within thirty days of the service of the order, to set aside such order and if such authority is satisfied that the dealer has filed the return and deposited the tax due according to the return within thirty days from the last day prescribed for filing such return, it may modify or set aside such order and also the demand notice, if any, issued thereunder.

33. Payment and recovery of tax

(1) Any amount of tax or fee or penalty or any other amount, which a dealer or other person is liable to pay under this Act, shall be deposited by the dealer or such other person in the prescribed manner.

(2)Subject to provisions of section 35, the tax admittedly payable, shall be deposited within the time prescribed, failing which simple interest at the rate of one and half percent per mensum shall become due and be payable on unpaid amount with effect from the day immediately following the last date prescribed till the date of payment of such amount and nothing contained in section 24 shall prevent or have the effect of postponing liability to pay such interest:

Explanation For the purpose of this sub-section, the tax admittedly payable for a tax period or an assessment year, as the case may be, means the positive amount represented by the expression:

A- B

Where A is aggregate of the amount of tax and special additional tax due under this Act on the turnover of sales or purchases, or both, as the case may be, as disclosed in the accounts maintained by the dealer, or if no accounts were maintained then according to the estimate of the dealer, or admitted by him in any return or in any proceedings at any stage under this Act, whichever is greater and B is the amount of input tax credit, for such tax period or the assessment year, as the case may be;

(3) Subject to other provisions of this Act, the amount of tax assessed under this Act in excess of amount of tax already deposited, the amount of interest payable thereon, any amount imposed by way of penalty and any other amount determined payable under this Act shall be deposited in the manner specified, within thirty days of the service of the order-

(i) of assessment and notice of demand in case of tax assessed and interest payable;

(ii) imposing penalty or determining any other amount payable, as the case may be.

(4) If the tax {other than the tax admittedly payable to which sub-section (2) applies} assessed, reassessed or enhanced by any authority or court remains unpaid after expiration of the period specified in the notice of assessment and demand, simple interest at the rate of fifteen percent per annum on the unpaid amount calculated from the date of such expiration shall become due and be payable:

(5) The amount of interest payable under this section shall be without prejudice to any other liability or penalty that the dealer may incur under this Act or under any other law for the time being in force, and shall be added to the amount of tax and be also deemed for all purposes to be part of the tax.

(6) Where realisation of any tax remained stayed by any order of any court or authority and such order of stay is subsequently vacated, the interest shall be payable also for any period during which such order remained in operation.

(7) Notwithstanding anything contained in any law or contract to the contrary, the assessing authority may, at any time or from time to time, by notice in writing a copy of which shall be forwarded to the dealer at his last address known to the assessing authority, require -

(a) any person from whom any amount is due or may become due to the dealer; or

(b) any person who holds or may subsequently hold money for or on account of the dealer;

to pay to the assessing authority -

(i) forthwith upon the money becoming due or being held, or

(ii) at or within the time specified in the notice not being before the money becomes due or is held.

so much of the money as is sufficient to pay the amount due by the dealer in respect of arrears of tax and other dues under this Act, or the whole of the money when it is equal to or less than that amount:

Provided that the assessing authority may at any time or from time to time revoke or amend such notice.

Explanation - For the purpose of this sub-section, the amount due to a dealer or money held for or on account of a dealer by any person shall be computed after taking into account such claim, if any, as may have fallen due for payment by such dealer to such person and as may be legally subsisting.

(8) Any person making any payment in compliance with notice under sub-section (7) shall be deemed to have made the payment under the authority of the dealer and the receipt of the assessing authority shall constitute a good and sufficient discharge of the liability of such person to the dealer to the extent the amount referred to in the receipt.

(9) Any person discharging any liability to the dealer after receipt of the notice referred to in sub-section (7) shall be personally liable to the assessing authority to the extent of the liability discharged or to the extent of the amount mentioned in such notice, whichever is less.

(10) Where a person, to whom a notice under sub-section (7) is sent, proves to the satisfaction of the assessing authority that sum demanded or any part thereof is not due by him to the dealer, or that he does not hold any money for or on account of the dealer, then nothing contained in this section shall be deemed to require such person to pay the sum demanded or any part thereof, as the case may be, to the assessing authority.

(11)Any tax or other dues payable to the State Government under this Act, any amount of money which a person is required to pay to the assessing authority under sub-section (7) or for which he is personally liable to the assessing authority under sub section (9) shall, notwithstanding anything contained in any other law for the time being in force and subject to any special or general order of the State Government, be recoverable as arrears of Land Revenue, or in the prescribed manner by the assessing authority or any other officer authorised by the State Government in that behalf and such authority or officer shall, for the purposes of such recovery -

(i) have all the powers which a Civil Court has under the Code of Civil Procedure, 1908 for the purpose of recovery of an amount due under a decree;

(ii) have the power to require the assessing authority or such authorised officer , having jurisdiction in any other area to make such recovery if the defaulter is or has property within the area of such other assessing authority or officer, and thereupon such other assessing authority or officer shall proceed to make recovery in prescribed manner;

(12) In respect of any sum recoverable under this Act as arrears of land revenue, the assessing authority may forward to the Collector a certificate under his signature specifying the sum due. Such certificate shall be conclusive evidence of the existence of the liability of its amount and of the person who is liable and the Collector on receipt of the certificate shall proceed to recover from such person the amount specified therein as if it were an arrear of land revenue:

Provided that without prejudice to the powers conferred by this section the Collector shall, for the purpose of recovering the amount specified in the certificate, have also all the powers which -

(a) a Collector has under the Revenue Recovery Act 1890; and

(b) a Civil Court has under the Code of Civil Procedure, 1908, for the purpose of recovery of an amount due under a decree.

Explanation: -

The expression Collector includes an Additional Collector or any other officer authorised to exercise the powers of a Collector under the law relating to land revenue for the time being in force in the State.

(13) Notwithstanding anything contained in sub-section (2) and sub-section (3) and notwithstanding any judgement, decree or order of any Court, Tribunal or other authority, where any notice of assessment and demand in respect of any tax or other dues under this Act, is served upon a dealer by an assessing authority and an appeal, revision or other proceeding is filed in respect of such tax or dues then-

(a) where as a result of such appeal, revision or other proceeding the amount of such tax or other dues is enhanced, the assessing authority shall serve upon the dealer a fresh notice only in respect of the amount by which such tax or other dues are enhanced, and any proceeding in relation to the amount specified in the notice already served upon him before the disposal of such appeal, revision or other proceeding may be continued from the stage at which it stood immediately before such disposal;

(b) where as result of such appeal, revision or other proceeding the amount of such tax or other dues is reduced -

(i) it shall not be necessary to serve upon the dealer a fresh notice but only the reduced amount shall be realized;

(ii) if any recovery proceedings are pending before any officer or authority other than the Assessing authority, the Assessing Authority shall intimate such reduction to such officer or authority;

(iii) any proceeding initiated on the basis of the notice or notices served upon the dealer before the disposal of such appeal, revision or other proceedings, including any recovery proceeding, may be continued in relation to the amount so reduced from the stage at which it stood immediately before such disposal.

(c) No fresh notice shall be necessary in any case where amount of the tax or other dues is not enhanced (with reference to the amount assessed by the Assessing authority) as result of such appeal, revision or other proceedings

(14) Any amount paid or deposited by, or recovered from, or refundable to a dealer, shall first be adjusted towards the principal amount of tax, fee, penalty or other dues outstanding against him and the excess if any, shall then be adjusted towards the interest, if any, due from him.

(15) Where any amount of tax assessed, interest payable or penalty imposed is recoverable from an owner of a vehicle and for realization of such amount of tax, interest or penalty, recovery certificate has been issued by the assessing authority, the officer competent to execute the recovery certificate may take assistance of police and other officer or official of the State Government in locating such vehicle or other vehicles of the same owner. If so required by the officer executing the recovery certificate, such other officer or official shall be empowered to detain such vehicle. Whenever any officer or official detains any such vehicle, he shall give the cause of detention in writing to the person in charge of the vehicle at the time of detention and shall immediately inform the officer executing the recovery certificate. Officer executing the recovery certificate shall proceed in accordance with law to realise such amount of tax or penalty.

Provided that if the owner or person in charge of the vehicle proves to the satisfaction of such officer or official that amount shown recoverable has already been paid, the vehicle shall be set free.

Provided further that if at the time of detention of vehicle, if some goods are loaded on it and owner of such goods is a person other than the owner of the vehicle, the owner or the person in charge of the goods shall be allowed to remove such goods from such vehicle if he desires so.

(16) During the period of detention of vehicle under sub-section (15), the person-in-charge of the vehicle at the time of detention shall take all necessary measures for safety of goods and vehicle and officer or official detaining the vehicle shall not be responsible for any loss or damage to goods or vehicle.

34. Tax deduction at source

(1) Without prejudice to any other mode of recovery, payment or collection of tax under this Act, every person responsible for making payment to the selling dealer, for discharge of liability on account of valuable consideration payable on sale of goods, shall, at the time of making such payment to the seller, either by credit or by payment in cash or in any other manner, towards satisfaction of tax payable by the dealer on account of sale of any taxable goods, deduct an amount determined in the manner and in the circumstances mentioned below :-

(a) Where sale of any taxable goods is made by way of transfer of property in such goods (whether as goods or in some other form) involved in the execution of a works contract, such contract not being a building contract of such class or value as may be notified by the State Government in public interest in this behalf, an amount equal to amount of tax payable, according to rate of tax applicable to sale of such goods, on such turnover of sale of taxable goods, as may be reasonably estimated by the contractor;

(b) Where sale of any taxable goods is made by an unregistered dealer under an agreement of transfer of right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration, and lessee is either a registered dealer or a person amongst following:

(i) the Central Government or any State Government; or

(ii) any local authority, any corporation or undertaking established or constituted by or under a Central Act or a State Act; or

(iii) any co-operative society or other society, club, company, firm or other association of persons, whether incorporated or not,

an amount equal to the amount computed on the turnover of such sale at such rate as may be provided under section 4 in respect of such goods;

(c) where in respect of a sale of any taxable goods, except a sale under clause (a) or clause (b), selling dealer liable to pay tax on such sale, is an unregistered dealer and the person purchasing such goods is either a registered dealer or a person amongst following:

(i) the Central Government or any State Government; or

(ii) any corporation or under taking established or constituted by or under a Central Act or a State Act,

an amount equal to the amount of tax payable on turnover of sale by the dealer selling such goods according to rate of tax applicable to sale of such goods;

(d) Where a registered dealer, for or on behalf of an unregistered principal, makes sale of such taxable goods, as may be specified by the State Government, by notification in the Gazette, to a registered dealer, an amount equal to tax payable on the turnover of such sale according to rate of tax applicable to sale of such goods.

(2) Where-

(a) a dealer selling any taxable goods under any of the clauses of sub-section (1), for any reason claims that he either is not liable to pay tax on any sale of taxable goods or is liable to pay as tax an amount lesser than amount of deduction computed in the manner provided; or

(b) the person responsible for making payments to the contractor is unable to ascertain either the turnover of various goods involved in the execution of the works contract or the amount of deduction,

the person responsible for making payment shall require the selling dealer to produce direction issued in this behalf by the assessing authority of the selling dealer and shall act according to such direction of the assessing authority.

(3) Where any deduction has been made by a contractor from the payments made to his sub-contractor in accordance with sub-section (7) the amount of such payments shall be deducted from the amount on which deduction is to be made under clause (a);

(4) Where purchasing dealer himself is liable to pay tax on turnover of purchase of any goods by virtue of provision under sub-section (4) of section 3, he shall not deduct any amount in respect of turnover of such goods.

(5) In the circumstances under sub-section (2), the dealer selling goods may apply to the assessing authority having jurisdiction over the principal place of his business or if he has no fixed place of business, to the assessing authority in whose jurisdiction he ordinarily resides, for issue of direction to the purchaser to deduct an amount lesser than the proposed amount of tax or not to deduct any amount as tax.

(6) The assessing authority referred to in sub-section (5), after examining the liability of payment of tax of the dealer in respect of sale of goods made and after giving reasonable opportunity of being heard to the dealer, shall by an order in writing direct the purchaser of the goods accordingly.

(7) Any contractor responsible for making any payment or discharge of any liability to any sub-contractor, in pursuance of a contract with the sub-contractor, for the transfer of property in goods, whether as goods or in some other form, involved in the execution, whether wholly or in part, of the work undertaken by the contractor, shall, at the time of such payment or discharge, deduct an amount purporting to be full amount of the tax payable under this Act on such transfer from the bills or invoices raised by the sub-contractor as payable by the contractor:

Provided that no deduction under this sub-section shall be made on the amount on which deduction has already been made under clause (a) of sub-section (1)

(8) The amount deducted under sub-section (1) or sub-section (7) shall be deposited into the Government Treasury by the person making such deduction before the expiry of the month following that in which deduction is made:

Provided that where the purchaser of goods under clause (c) or clause (d) is a registered dealer, he shall deposit the amount of deduction in the manner and within the time in which amount of tax for the tax period in which purchase has been made, is payable and such dealer shall be entitled to claim input tax credit in accordance with provisions of section 13 in respect of such purchase.

(9) The person making deductions under any clause of sub-section (1) or under sub-section (7) shall, at the time of payment or discharge, furnish to the selling dealer a certificate of amount deducted in such form and manner and within such period as may be prescribed and shall submit such statement of all such purchases, payments and deductions made and certificates issued by him, in such manner and within such time, as may be prescribed.

(10) If any such person referred to in sub-section (1) or sub-section (7) fails to make the deduction or after making deduction fails to deposit the amount so deducted as required by sub-section (8), the assessing authority may, after giving to such person an opportunity of being heard, by order in writing, direct that such person shall pay, by way of penalty, a sum not exceeding twice the amount deductible under the section but not so deducted and, if deducted, not so deposited into the Government Treasury.

(11) Without prejudice to the provisions of sub-section (10), if any such person, after deducting, fails to deposit the amount so deducted, he shall be liable to pay simple interest at the rate of eighteen percent per annum on the amount not so deposited from the date on which such amount was deducted to the date on which such amount is actually deposited.

(12)Where the amount has not been deposited after deduction, such amount together with interest referred to in sub-section (11) shall be a charge upon all the assets of the person concerned.

(13) Nothing contained in this section shall prevent the assessing authority from making an assessment of tax payable by the dealer in accordance with other provisions of the Act and the dealer shall be liable to pay tax in accordance with other relevant provisions of this Act.

Provided that any deduction made in accordance with the provisions of this section shall be treated as a payment of tax on behalf of the selling dealer, and credit shall be given to him for the amount so deducted on the production of the certificate, referred to in sub-section (9) in the tax return of the relevant period or the assessment made, as the case may be, and any amount found in excess of tax due shall be refunded to the selling dealer.

(15) No deduction of any amount shall be made under this section if seller of goods is not a dealer, but the onus to prove that goods have been purchased from a person other than a dealer shall lie on the person responsible for making payment, failing which it shall be deemed that goods have been purchased from a dealer.

Explanation: - For the purpose of this section, assessing authority in relation to person responsible for making payments to the seller means the officer having jurisdiction over the place where the principal place of business of such person inside the State is located and where such person has no such place, the place where the residence of such person is located.

35. Moratorium for payment of tax

(11) Without prejudice to the provisions of sub-section (10), if any such person, after deducting, fails to deposit the amount so deducted, he shall be liable to pay simple interest at the rate of one and quarter percent per mensum on the amount not so deposited from the date on which such amount was deducted to the date on which such amount is actually deposited.

(12)Where the amount has not been deposited after deduction, such amount together with interest referred to in sub-section (11) shall be a charge upon all the assets of the person concerned.

(13) Nothing contained in this section shall prevent the assessing authority from making an assessment of tax payable by the dealer in accordance with other provisions of the Ordinance and the dealer shall be liable to pay tax in accordance with other relevant provisions of this Ordinance.

Moratorium for payment of tax

35. (1) Notwithstanding anything contained in this Act, the Commissioner may, on application of a manufacturer holding eligibility certificate granted under section 4-A or section 4-AAA of the Uttar Pradesh Trade Tax Act, 1948 and enjoying facility of exemption from payment of tax under the said Act, subject to other provisions of this section , grant moratorium for payment of admitted tax computed in the manner provided in sub-section (7).

(2) Where facility of moratorium for payment of admitted tax in lieu of exemption from payment of tax has been granted to a dealer under the Uttar Pradesh Trade Tax Act, 1948 or such facility may be granted to such dealer under clause (b) below, the commissioner -

(a) may grant facility of moratorium for payment of the amount equal to the difference of the amount of tax payable on sales of goods in respect of which moratorium for payment of admitted tax would have been available, had this Act commenced and the amount of input tax credit relating to goods used or consumed in manufacture, processing or packing of such goods ; and

(b) shall dispose of such application by an order in writing, according to provisions of the Uttar Pradesh Trade Tax Act 1948, where application of such dealer for granting moratorium from payment of admitted tax in lieu of exemption from tax is pending on the commencement of this Ordinance or where an application for granting such moratorium is presented by a dealer within the time prescribed under the Uttar Pradesh Trade Tax Act, 1948 on the commencement of this Ordinance before the Commissioner.

(3) Notwithstanding anything contained contrary to in any provision of this Act, application for grant of eligibility certificate presented on a date prior to the date of the commencement of this Ordinance, before the competent authority under the Uttar Pradesh Trade Tax Act 1948 shall be disposed of under the Uttar Pradesh Trade Tax Act 1948.

(4) An application for granting facility of moratorium for payment of admitted tax under sub-section (1), may be presented to the Commissioner by an eligible dealer within a period of sixty days from the date of the commencement of this Act or within a period of sixty days from the date on which eligibility certificate is granted to such dealer, whichever expires later.

(5) The commissioner shall, after giving reasonable opportunity of being heard to the dealer, dispose of the application under sub-section (4) by passing an order in writing.

(6) Dealers holding eligibility certificate shall be eligible for the facility of moratorium for payment of amount of tax to the extent and for the period whichever expires earlier, as under:

(a)(i) in case of a dealer under sub-section (1) to the extent of amount of exemption from tax mentioned in the eligibility certificate less aggregate of amount of exemption from tax as has been availed before the date of the commencement of this Act; and

(ii) in case of a dealer under sub-section (2), to the extent of aggregate amount of one hundred percent of the amount of exemption from tax mentioned in the eligibility certificate and fifty percent of the amount of fixed capital investment mentioned in the eligibility certificate less aggregate of such amount in respect of which facility for moratorium for payment of tax has been availed during the period before the commencement of this Act.

(b) for one hundred and thirty percent of the remaining period of exemption from tax as on the date of the commencement of this Act, out of the maximum period mentioned in the eligibility certificate.

Explanation: Aggregate amount of exemption from tax includes amount of exemption from tax payable under the Central Sales Tax Act, 1956.

(7) In case of manufacturing units which were enjoying facility of exemption immediately before the commencement of this Act, amount of tax for which moratorium for payment may be granted, shall be the amount equal to the difference of amount of exemption from tax would have been available in accordance with relevant notification under the Uttar Pradesh Trade Tax Act, 1948, had this Act not commenced and partial amount of input tax credit relating to goods used or consumed in manufacture, processing or packing of such goods, in the ratio of amount of tax exemption to the total amount of tax payable in respect of the goods sold.

(8) Where any manufacturing unit was entitled for partial exemption from tax in different years under the Uttar Pradesh Trade Tax Act, 1948, for the purpose of extended period under sub-section (6) partial exemption shall be deemed equal to the extent for which unit was entitled in the final year of exemption from tax under the Uttar Pradesh Trade Tax Act, 1948, had this Act not commenced.

(9) Facility of moratorium for payment of tax shall be subject to the following conditions:

(a) Facility shall be limited to the amount of tax and for the period mentioned in sub-section (6) of this section.

(b) Payment of amount of tax for each assessment year, shall be deferred for a period of five years and such period of 5 years shall be computed from 1st May of the assessment year succeeding the assessment year to which such amount of tax relates.

(c) Facility shall be available to only such manufacturer who creates first charge on its property in favour of the State Government sufficient to cover the amount of tax in respect of which moratorium has been granted.

(d)The amount of tax, payment of which has been deferred, relating to each assessment year, shall be paid by the manufacturer in a lump sum within one month of the expiry of the period of moratorium;

(e) Facility shall not be admissible in respect of the amount of tax assessed in excess of tax admittedly payable.

(f) Facility shall be admissible in respect of tax on sale of goods mentioned in the eligibility certificate and in the circumstances in which exemption from payment of tax on turnover of sale manufactured goods is admissible.

(g) If the amount in respect of which moratorium has been granted is not paid within the time specified in clause (d), the manufacturer shall in addition to penalty, if any, be liable to pay interest in accordance with sub-section (2) of section 33 for the entire period during which the amount remained deferred and subsequently till the date of its payment.

(10)The Commissioner may, after giving reasonable opportunity of being heard to the dealer, withdraw facility of moratorium in the following circumstances:

(a) Where any dealer is found to have concealed any turnover of sale or purchase with a view to evade payment of tax either under this Ordinance or under the Central Sales Tax Act, 1956; or

(b) Where the dealer, without a reasonable cause, fails to pay any amount of tax or penalty due from him either under this Ordinance or under the Central Sales tax Act, 1956; or

(c)Where the dealer has acted in contravention of any of the conditions of eligibility certificate; or

(d) Where dealer has discontinued business; or

(11) The moratorium shall cease and the total amount payment of which has been deferred, shall become payable-

(a) on the date of discontinuance of business where the manufacturer discontinues business within the meaning of explanation under sub-section (6) of section 3;

(b) on the date on which dealer violates any of the conditions subject to which eligibility certificate has been granted;

and shall be paid in lump sum within three months of its so becoming payable.

36. Recovery or refund of petty amounts to be ignored

Notwithstanding anything contained in this Act, no tax, fee, interest or penalty under this Act shall be recovered and no refund shall be allowed if the amount involved for any assessment year is less than twenty five rupees.

37. Recovery of tax in case of a company under liquidation

(1) Every person -

(a) who is the liquidator of a company which is being bound up, whether under orders of a Court or otherwise; or

(b) who has been appointed the receiver of any assets of a company {here in after referred to as the liquidator} shall within thirty days after he has become such liquidator, give notice of his appointment as such to the appropriate authority.

(2)The appropriate authority shall after making such inquiry or calling for such information as it may deem fit, notify the liquidator within three months from the date on which he receives notice of the appointment of the liquidator the amount which in the opinion of the appropriate authority would be sufficient to provide for any tax which is then or likely thereafter to become, payable by the company.

(3)The liquidate shall not part with any of the assets of the company or the properties in his hands until he has been notified by the appropriate authority under sub-section (2) and on being so notified, shall set aside on amount equal to the amount notified and, until he so sets aside such amount, shall not part with any of the assets.

Provided that nothing contained in this sub-section shall debar the liquidator from parting with such assets or properties in compliance with any order of a Court or for the purpose of the payment of tax payable by the company under this Act or for making any payment over debts due to Government on the date of liquidation or for meeting such costs or expenses of the winding up of the company as are in the opinion of the appropriate authority reasonable.

(4) If the liquidator fails to give the notice in accordance with sub-section (1) or fails to set aside the amount as required by, or parts with any of the assets of the company or the properties in his hands in contravention of the provisions of sub-section (3), he shall be personally liable for the payment of the tax which the company would be liable to pay:

Provided that if the under sub-section (2), the amount of any tax payable by the company is notified personal liability of the liquidator under this sub- section shall be to the extent of such amount.

(5) Where there are more liquidators than one, the liquidations and liabilities attached to the liquidator under this section shall attach to all the liquidators jointly and severally.

(6) The provision of this section shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force.

Explanation- (1) "appropriate authority" in relation to a company means the competent authority to assess the tax on the company.

(2) company has the meanings assigned to it by clause(1) of sub-section (1) of section (3) of the Companies Act, 1956 (1 of 1956).

38. Liability of director of private company in liquidation

Notwithstanding anything contained in the Companies Act, 1956, when any private company is wound up and any tax assessed on the company under this Act for any period, whether before or in the course of or after its liquidation, can not be recovered, then every person who was a director of the private company at any time during the period for which the tax is due shall be jointly and severally liable for the payment of such tax unless he proves that the non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company.

39. Power to grant instalment

(1) Subject to such conditions and restrictions, including the conditions regarding furnishing security to the satisfaction of the assessing authority, as may be deemed fit to be imposed-

(a) the State Government may permit any dealer or other person, against whom any amount of tax, penalty or other dues is outstanding, to pay the amount in such number of monthly installments not exceeding twenty four; and

(b) the Commissioner may likewise permit any dealer or other person, against whom any amount of tax, penalty or other dues aggregating not more than one lakh rupees is outstanding, to pay the amount in such number of monthly instalments, not exceeding twelve.

(2) Where such dealer or other person fails to furnish, within sixty days of the order referred to in sub-section (1), adequate security to the satisfaction of the assessing authority concerned for payment of the outstanding amount, or fails to comply with the conditions or restrictions imposed in such order, the amount due shall be recoverable at once.

CHAPTER –V

REFUNDS AND ADJUSTMENTS

40 Refunds and adjustments

(1) Subject to provisions of sub-section (1) of section 42, the assessing authority shall in the manner prescribed; refund to the dealer an amount of tax, fee, or other dues paid in excess of the amount due from him under this Act.

Provided that, amount found to be refundable shall first be adjusted towards tax or any other amount outstanding against the dealer under this Act or under The Central Sales Tax Act 1956 or under the Uttar Pradesh Trade Tax Act, 1948 and only the balance if any shall be refunded.

Provided further that refund of excess amount of input tax credit shall be subject to conditions and restrictions of section 15.

(2) Where amount found refundable in accordance with the provisions under sub-section (1), is not refunded within thirty days from the date of order of refund passed by the Assessing authority or where order giving rise to refund is passed by any other authority or court, from the date of receipt of such order by the assessing authority by due process, the dealer shall be entitled to simple interest on such amount at the rate of nine percent per annum from the date of such order passed by the assessing authority or from the date of receipt of the order giving rise to refund passed by any other authority or Court, till the date refund is made.

Provided that where refund relating to excess amount of input tax credit due on the basis of returns filed by the dealer, is not allowed within the time prescribed under section 15, the dealer shall be entitled to simple interest on such amount at the rate of nine percent per annum from the date on which refund becomes due and till the date refund is made.

(3) Notwithstanding any judgment, decree or order of any Court or authority, no refund shall be allowed of any tax or fee due under this Act on the turnover of sales or purchases or both, as the case may be, admitted by the dealer in the returns filed by him or at any stage in any proceedings under this Act.

(4) Where dealer has requested the assessing authority for withholding such amount for adjustment towards his future liabilities either under this Act or under the Central Sales Tax Act, 1956 and in the circumstances dealer shall not be entitled for interest.

(5) Where any amount of tax under sub-section (1) or sub-section (7) of section 34 has been deducted from any dealer as tax payable by him for any assessment year, for the purpose of sub-section (3), amount deducted shall be deemed to be tax due under this Act and shall not be refunded to the dealer where the dealer -

(i) has neither submitted returns of turnover and tax for all tax periods nor has submitted annual return for the assessment year in which sales are made; and

(ii) has been assessed exparte for the assessment year in which sales are made.

Explanation: The date of refund shall be deemed to be the date on which intimation regarding preparation of the refund voucher is sent to the dealer in manner prescribed.

41. Provisional refund

(1) Notwithstanding anything contained in sections 40 and 42, in case of a dealer, whose main business is to sell goods in the course of the export of the goods out of the territory of India, the assessing authority, upon receiving the return for a tax period and application for provisional refund, pending audit and investigation to establish the correctness of the claim and consequent assessment, shall, allow provisional refund of excess amount of input tax credit for such tax period on account of sale in the course of the export of the goods out of the territory of India.

Provided that if any amount of tax, fee or penalty or any other amount either under this Act or under the Central Sales Tax Act, 1956 or under the U. P. Trade Tax Act, 1948 is due against such dealer, amount found refundable first shall be adjusted towards such amount of tax or fee or penalty, as the case may be, and excess, if any, shall be refunded to the dealer:

Provided further that before granting refund, the Assessing Authority may require the dealer to furnish security of amount of refund to its satisfaction.

(2) If, on assessment, the provisional refund granted under sub-section (1) is found to be in excess, then the excess amount of refund shall be recovered from the dealer along with interest from the date of grant of provisional refund till the date of payment of the amount, as tax due from the dealer.

42. Withholding of refunds in certain cases

(1) Notwithstanding anything contrary contained in any other provisions of this Act, where after giving reasonable opportunity of being heard to the dealer or the person concerned, assessing authority is satisfied that:

(i) turnover shown in any return submitted by any dealer is not reasonable and the dealer has prevented the assessing authority or any other competent officer from making inspection and examination of books, accounts or documents maintained or goods shown to be held in stock by such dealer; or

(ii) there is prima facie evidence on record to show that in any return, the dealer has shown lesser turnover of sale or purchase than the actual; or

(iii) any purchase in respect of which input tax credit in any return has been claimed, is not verifiable, or

(iv) the dealer has obtained tax invoices without making actual purchase of goods,

and if the assessing authority is of the opinion that if refund is allowed, it may not be possible to realise any amount of tax or penalty to be levied, it may pass an order for withholding refund for a period not exceeding three months beyond the date of passing of assessment order or order of penalty, as the case may be, in respect of the assessment year to which refund relates.

Provided that if the dealer furnishes security of the amount of refund to the satisfaction of the assessing authority, refund shall be released.

(2) a simple interest at the rate of nine percent per annum for the period refund remains withheld shall be payable to the dealer or the person concerned and no interest shall be payable on such withheld refund if it has been released against security or has been adjusted towards any liability of the dealer.

43 Procedure for disbursement of amount wrongly realised by dealers as tax

(1)Where any amount has been realized from any person by any dealer, purporting to do so by way of realisation of tax on the sale or purchase of goods, in contravention of provisions under sections 22 and 23 such dealer shall deposit the entire amount so realised in the manner and within the period prescribed under section 24.

(2)Any amount deposited by any dealer under sub-section (1) shall to the extent it is not due as tax, be held by the State Government in trust for the person on whom such liability has been passed ultimately in respect of goods on the sale or purchase which excess amount has been charged.

(3) Where any amount is deposited by any dealer under sub-section (1) such amount or any part thereof shall on a claim being made in that behalf be refunded in the manner prescribed to the person on whom liability of such amount has been passed ultimately.

Provided that no such claim shall be entertained after expiry of three years from the date of order of assessment or one year from the date of the final order on appeal, revision or reference if any in respect thereof which ever is later.

(4) Where any amount has been deposited by any dealer in accordance with provisions under sub-section (1), dealer shall not be entitled to allow refund of such amount to the purchaser of goods.

Explanation :- The expression "Final order on appeal revision or reference" includes an order passed by the Supreme Court or by the High Court.

CHAPTER – VI

Tax Audit, Inspection, Search and Seizure

44.Tax audit

(1) The assessing authority or an officer authorized to exercise powers under sub-section (1) of section 45 may, for examining the correctness of return or returns filed and admissibility of various claims including input tax credit, undertake tax audit of the records, stock in trade and the related documents of the dealers, who are selected by the Commissioner in the manner, as may be prescribed for the purpose.

(2) For the purpose of the tax audit, officer empowered to make audit may require the dealer to produce before him records and other documents in his office or at such other public place as may be mentioned in the notice.

Provided that where it is convenient, officer may take up tax audit in the office, business premises or warehouse of the dealer.

(3) Where tax audit is made by any officer other than the assessing authority of the dealer, such officer shall send audit report prepared by it to the assessing authority of the dealer.

(5) The dealer shall extend necessary co-operation and assistance in making tax audit.

45. Power to order production of accounts and power of entry, inspection, search and seizure

(1). Any officer empowered by the State Government in this behalf (hereinafter in this section referred to as the authorized officer), for the purpose of this Act, may require any dealer to produce before him any book, document or account relating to his business and may inspect, examine and copy the same and make such enquiries from the dealer as may be necessary.

Provided that books, accounts and documents of a period more than five years prior to the assessment year shall not be so required, unless in any special case, for reasons to be recorded, such officer considers it necessary.

(2). The authorised officer may, at all reasonable times, enter and search any place of business or vehicle, vessel or other building or place where he has reason to believe that the dealer keeps or is for the time being keeping any book, register, document, account or goods relating to his business:

Provided that no residential accommodation (not being a place of business cum residence) shall be entered into, inspected or searched by such officer unless specially authorised in this behalf by the Commissioner in writing.

(3).All books, documents, and accounts maintained by a dealer in the ordinary course of business, the goods in his possession and his place of business, vessel or vehicle shall be open to search and inspection at all reasonable times by the authorised officer.

(4).If the authorised officer while examining any books, accounts or documents or conducting search or inspection has reasonable grounds for believing that any dealer is trying to evade liability of payment of tax or other dues under this Act and that anything necessary for the purpose of an investigation into his liability may be found in any account, register or document, he may seize such account, register or document as may be necessary. The authorised officer shall forthwith grant a receipt for the same and shall be bound to return them to the dealer or the person from whose custody they were seized, within a period of ninety days from the date of seizure after having such copies or extracts taken therefrom as may be considered necessary, provided the dealer or the aforesaid person gives a receipt in writing for the account, register or document returned to him. The officer may, before returning the account, register or documents, affix his signature and his official seal at one or more places thereon, and in such case the dealer or the aforesaid person will be required to mention in the receipt given by him the number of places where the signature and seal of such officer have been affixed on each account, register or documents.

(5).Notwithstanding anything contained in sub- section (4), the officer seizing any account, register or other document under that sub -section may, for reasons to be recorded by him in writing and with the prior approval of the Commissioner, retain such account, register or document for such period not extending beyond thirty days from the date of completion of all the proceedings under this Act in respect of the years for which they are relevant, as he deems necessary.

(6).An officer conducting search or inspection under sub-section (3) -

(i) shall have the power to seal the place of business, vehicle, any box, almirah or other receptacle found on such place of business or vehicle in which he has reason to believe that any account, register or other documents or goods are kept or contained, if the owner or other person in occupation or in-charge of such office, shop, godown, vessel, vehicle, box, almirah or other receptacle leaves the place or is not available or fails or refuses to open it when called upon to do so;

(ii) where the owner or other person in occupation or in charge of the office, shop, godown, vessel or vehicle or the box almirah or other receptacle found in the place of business, or vehicle is present but leaves the place or after an opportunity having been given to him to do so, fails to open, as the case may be, such office, shop, godown, vessel or vehicle or the box, almirah or other receptacle may break open the same and prepare a list of the goods and documents found therein.

(7). No person shall tamper with any seal put under sub-section (6).

(8). Any authorized officer while making search or inspection under this section may require any dealer or the other person to give any information likely to be in his possession or knowledge in respect of such books, documents, accounts or goods as are found at the time of search, inspection or seizure under this section.

(9) The officer who has made inspection, search or seizure of any books, accounts or documents or has investigated into the liability of tax of a dealer shall, on the basis of facts found and enquiry made, prepare a report in respect of such inspection, search, seizure or investigation and where the officer preparing the report is an officer different from the assessing authority, he shall forward a copy of such report to the assessing authority of the dealer.

(10) Where the officer preparing the report referred to in sub-section (9), is of the opinion that liability of payment of tax by the dealer in addition to liability of payment of tax admitted by such dealer may exceed rupees one lakh, he shall, before forwarding copy of report referred to in sub-section (9), serve the dealer with a notice stating facts to show cause why adverse inference should not be drawn on the basis of such facts. The dealer on receipt of such notice shall submit his reply to such officer in two copies. Thereafter the officer shall forward to the assessing authority a copy of report, a copy of show cause notice issued and a copy of reply received from the dealer, if submitted by the dealer along with its comments on the reply submitted by the dealer.

(11)The provisions of section 100 and 165 of Code of Criminal Procedure, 1973 shall, as far as may be, apply in relation to any entry, or search or inspection under this section, as they apply in relation to any inspection or search under the said code.

Explanation : In calculating the period specified in sub-section (4) the period during which proceedings under this Act remain stayed under the orders of any Court or authority, shall be excluded.

46 Power of search, inspection and seizure in case of a person other than dealer

Where a person carries on any activity ancillary or incidental to or in connection with business of a dealer, any officer authorized under sub-section (1) of section 45, for the purpose of investigation into tax liability of a dealer, subject to provision of sub-section (11) of section 45, may exercise powers under sub-section (1) to sub-section (10) of the said section.

Explanation: For the purpose of this section, following persons shall be deemed to carry on activities ancillary or incidental to or in connection with the business of a dealer:

(i) broker or canvassing agent who acts as mediator between purchaser and seller of goods; or

(ii) transporter or any other carrier or a forwarding agent of goods; or

(iii) person who fabricates or manufactures any goods for a dealer; or

(iv) person who takes delivery or who dispatches goods on behalf of a dealer; or

(v) person who holds in custody any goods belonging to a dealer; or

(vi) person who possesses books, accounts or documents relating to business of a dealer; or

(vii) person who handles goods of a dealer in any other capacity.

47. Power to seek information, to issue summons etc.

(1). Any officer, not being an officer below the rank of an assessing authority, may require any dealer or other person to furnish any information which may be, or is in his knowledge or possession.

(2).All officers under this Act shall have the same powers as are vested in a court under the Civil Procedure Code 1908, when trying a suit in respect of following matters, namely -

(i) Enforcing the attendance of any person and examining him on oath or affirmation.

(ii) Compelling the production of documents, and

(iii) issuing commission for the examination of witness;

and any proceeding before any of the officers aforesaid shall be deemed to be a judicial proceeding within the meaning of section 193 and 228 and for the purpose of section 196 of the Indian Panel Code.

(3). Summons for the production of documents or the attendance of any person shall be issued in the prescribed form.

48 . Power to seize goods

(1) An officer authorised under sub-section (1) of section 45 shall have the powers to seize any goods -

(i) which are found in a dealer's place of business, vehicle, vessel or any other building or place ; or

(ii) which, such officer has reason to believe to belong to the dealer and which are found in any place of business, vehicle, vessel or any other building or place, but are not accounted for by the dealer in his accounts, registers or other documents maintained in the ordinary course of his business.

Provided that a list of all the goods seized under this sub-section shall be prepared by such officer and be signed by the officer and not less than two witnesses.

(2) Where any officer referred to in sub-section (1) has reason to believe that the goods found in any vehicle, vessel, building or place are not traced to any bonafide dealer or that it is doubtful if such goods are properly accounted for by any dealer in his accounts, registers or other documents, maintained in the ordinary course of his business, he shall have power to seize such goods, and the remaining provisions of this section shall mutatis mutandis apply in relation to such seizure.

(3) An officer seizing the goods under sub-section (1) shall take all the measures necessary for their safe custody and forward the list, referred to in the proviso to sub-section (1), along with other documents relating to the seizure to the assessing authority concerned.

(4) The said assessing authority shall serve on the dealer or, as the case may be, the person in charge of the goods at the time of seizure (hereinafter in this section referred to as the person in charge) a notice in writing requiring him to show cause, why a penalty should not be imposed.

(5) If such authority, after taking into consideration the explanation, if any, of the dealer or, as the case may be, the person in charge and giving him an opportunity of being heard, is satisfied that the said goods were omitted from being shown in the accounts, registers and other documents referred to in sub-section (1), it shall pass an order imposing a penalty not exceeding forty per cent of the value of such goods, as he deems fit.

(6) A copy of the order imposing penalty under sub-section (5) shall be served on the dealer or, as the case may be, the person in charge.

(7) The officer seizing the goods shall serve on the dealer or, as the case may be, the person in charge an order in writing mentioning the fact of such seizure and indicating the amount, not exceeding such amount as would be sufficient to cover the penalty likely to be imposed, on deposit whereof in cash, the goods so seized may be released in favour of the dealer or, as the case may be, the person in charge:

Provided that the Commissioner or such other officer, not below the rank of a Deputy Commissioner, as may be authorised in this behalf by the Commissioner, may, for sufficient reasons to be recorded in writing, direct that the goods be released without any deposit or on depositing such lesser amount, or furnishing security in such form other than cash or indemnity bond, as he may deem fit.

(8) The penalty or such part thereof as remains after adjustment of any amount deposited under sub-section (7) shall be deposited in the prescribed manner within thirty days of the date of service of the copy of the order imposing the penalty. In default, the assessing authority shall cause the goods to be sold in such manner as may be prescribed and apply the sale proceeds thereof towards the penalty imposed, and subject to the provisions of section 40, refund the balance, if any, to the dealer or, as the case may be, to the person-in-charge.

(9) Where the officer seizing the goods, before forwarding the list and other documents referred to in sub-section (3), or the assessing authority at any time thereafter, is of the opinion that the goods are subject to speedy and natural decay or where the tax assessed or penalty imposed, as the case may be, is not deposited in accordance with the provisions of this Act, the officer seizing the goods or the assessing authority, as the case may be, may, without prejudice to any other action that may be taken in accordance with other provisions of this Act, cause the goods to be sold by public auction in the prescribed manner. The sale proceeds of such goods shall be adjusted towards the expenses of tax assessed or penalty imposed. The balance, if any, shall be refunded to the dealer or, as the case may be, the person- in-charge in accordance with the provisions of sub-section (8).

(10) If the amount deposited under sub-section (7) is more than the amount of penalty imposed under sub-section (5), the excess amount so deposited shall be refunded to the dealer or, as the case may be, the person in-charge by the authority with whom it was so deposited, in accordance with the provisions of section 40.

CHAPTER VII

CHECK-POST

49. Establishment of check-posts and barriers

The State Government, if it is of opinion that it is necessary so to do with a view to preventing evasion of tax or other dues payable under this Act in respect of the -

(i) sale of goods brought or received from outside the State;

(ii) Sale of goods processed or manufactured by using goods brought or received from outside the State; or

(iii) sale or purchase of goods produced or manufactured within the State,

may by notification in the Gazette, direct the establishment of check-posts or barriers at such places within the State, as may be specified in the notification.

50. Import of goods into the state by road against declaration

(1) Any person (hereinafter in this section referred to as the importer) who intends to bring, import or otherwise receive, into the State from any place outside the State any goods other than the goods exempt from payment of tax under clause (a) of section 11, in such quantity or measure or of such value, as may be notified by the State Government in this behalf, in connection with business, shall obtain the prescribed form of declaration, on payment of the prescribed fee, from the assessing authority having jurisdiction over the area, where his principal place of business is situated or, in case there is no such place, where he ordinarily resides:

Provided that where the importer intends to bring, import or otherwise receive such goods otherwise than in connection with business, he may, at his option, in the like manner obtain the prescribed form of certificate.

(2) Where such goods are to be consigned by road, -

(a) the importer shall furnish to the consignor the declaration in the prescribed form in duplicate duly filled in and signed by him, and the driver or any other person in-charge of any vehicle carrying any such goods shall carry with him the copies of such declaration duly verified by the consignor in the prescribed manner together with such other documents as may be prescribed, and shall deliver one copy of such declaration, -

(i) where such goods are brought by a road on which a check post or barrier is established, to the officer in-charge of such check-post or barrier before crossing check-post or barrier; and

(ii) where such goods are brought by a road on which no check post or barrier is established, to the officer -in- charge of the nearest check-post or barrier established under the said section before transporting such goods further within the State,

and other copy of declaration and the remaining documents along with goods to the importer or his agent.

(b) subject to provision of sub-section (4) of section 52, the officer in-charge of the check-post or barrier shall grant a receipt for the copy of declaration delivered to him and it shall not be necessary for the driver or the person in-charge of the vehicle to deliver any copy of the declaration at the other check-post or barrier that he may cross, if he shows such receipt to the officer-in- charge of such other check-post or barrier.

(c) the importer shall preserve the other copy of the declaration and other documents delivered to him or to his agent under clause (a) for such period as may be prescribed and produce them before the assessing authority whenever demanded by it within such period.

(3) Where such goods are brought into the State as personal luggage, the person bringing them shall carry with him the declaration in the prescribed form duly filled in and signed by the importer, and the importer shall submit the same for endorsement by the officer authorised in this behalf by the Commissioner, by the next working day.

(4) Where any person intends to bring, import or otherwise receive into the State from any place without the State any goods referred to in sub-section (1) otherwise than in connection with business and obtains the prescribed form of certificate, the provisions of sub-sections (2), (3) and (4) shall mutatis mutandis apply as if the word “certificate” is substituted for the word “declaration” used therein.

(5) The driver or other person-in-charge of any vehicle carrying any goods referred to in the preceding sub-sections shall stop the vehicle at every such check-post or barrier or, when so required by an officer authorised under sub-section (1) of section 45 or sub-section (1) of section 48, at any other place, and keep it stationary for so long as may be considered necessary by the officer in-charge of the check-post or barrier or the officer authorised under sub-section (1) of section 45 or sub-section (1) of section 48, as the case may be, and allow him to search the vehicle and inspect the goods and all documents referred to in the preceding sub-sections and shall, if so required, give his name and address and the names and addresses of the owner of the vehicle and of the consignor and the consignee of the goods.

(6) Where the officer making the search or inspection under this section finds any person transporting or attempting or abetting to transport any goods to which this section applies without being covered by the proper and genuine documents referred to in the preceding sub-sections and if, for reason to be recorded, he is satisfied after giving such person an opportunity of being heard that such goods were being so transported in an attempt to evade assessment or payment of tax due or likely to be due under this Act, he may order detention of such goods

(7) The provisions of sub-sections (3), (7), (8), (9) and (10) of section 48 shall mutatis mutandis apply to goods detained under sub-section (6), as they apply to goods seized under that section.

(8) Where the assessing authority or an officer empowered under this section, is satisfied that any dealer bringing or importing or otherwise receiving into the State from any place outside the State, any goods has, with a view to evade payment of tax, shown the estimated sale value of such goods in the "declaration form for import" accompanying such goods less than the fair price of such goods or has not shown the estimated sale value in such form and the presumed sale value of such goods is less than the fair price of such goods, such authority or officer may acquire such goods on payment of 105 per centum of such estimated sale value or presumed sale value, as the case may be, to the dealer.

(9) The power under sub-section (8) shall not be exercised unless the dealer is afforded an opportunity of being heard.

(10)The goods acquired under sub-section (8) shall be disposed of in such manner as may be specified by the Commissioner.

Explanation :- For the purpose of sub-section (8) :

(i) "Fair price" shall mean the value, determined in such manner as may be specified by the Commissioner.

(ii) "Presumed sale value" shall be equal to 110 per centum of the purchase price shown in the declaration form.

51. Import of goods into the state by rail, river, air, post or courier

(1)Where any goods except goods exempt from payment of tax on sale or purchase under clause (a) of section 11 (hereinafter in this section referred to as taxable goods) are consigned by rail, river, air or post or courier from a place outside the State for delivery to a dealer inside the State, the receiving dealer shall not -

(a) obtain or cause to be obtained delivery thereof unless he furnishes or causes to be furnished to such officer, as may be authorised in this behalf by the Commissioner, a declaration in the form prescribed under clause (a) of sub-section (2) of section 50 in duplicate duly filled in and signed by him for endorsement by such officer; and

(b) after taking delivery, carry goods away or cause the goods to be carried away from the railway station, steamer or boat station, air port, post office or couriers’ office, as the case may be, unless a copy of the declaration duly endorsed by such officer is carried with goods.

(2) Where any taxable goods are brought into the State by rail, river or air as personal luggage, the person bringing them shall carry with him the declaration in the prescribed form duly filled in and signed by the importer, and the importer shall submit the same for endorsement by the officer by the officer authorised under sub-section (1) by the next working day.

(3) Where any person intends to bring or receive into the State from any place outside the State by rail, river, air, post or by courier any taxable goods otherwise than in connection with business and obtains the form of certificate prescribed under sub-section (2) of section 50, the provision of sub-section (1) and (2) shall mutatis-mutandis apply as if word "Certificate" is substituted for the word declaration used therein.

(4) Where an officer authorised under sub-section (1) of section 45 or an officer referred to in sub-section (1) of section 48 or section 50 while making inspection or search finds any taxable goods, in respect of which declaration before the officer authorised under sub-section (1) has not been made or goods being carried as personal luggage are not accompanied by the form of declaration referred to in clause (a) of sub-section (1) and where after giving reasonable opportunity of being heard to the person in charge of the goods at the time of inspection of goods or the owner of the goods, as the case may be, such officer (officer making inspection or search) is satisfied that such taxable goods are being imported in an attempt to evade payment of tax under this Act, he may, after recording such reasons, detain the goods.

(5) Provisions of {sub-sections (3), (7), (8), (9) and (10 ) of section 48} section 48 shall mutatis mutandis apply to such detention of goods as they apply to goods seized under that section.

52. Issue of authorisation for transit of goods through the state

(1).The driver or person in charge of a vehicle carrying any taxable goods consigned from a place outside the State and destined to a place outside the State, shall, after entry of goods into the State and before crossing the first check- post(hereinafter referred to as entry check-post) obtain in the prescribed form and manner an authorisation for transit of goods through the State(hereinafter in this section referred to as transit authorisation), in two copies from the officer in-charge of the entry check-post or barrier and shall, before leaving the State, produce both copies of such transit authorisation along with goods mentioned in the transit authorisation before the officer-in-charge of the last check-post or barrier (hereinafter in this section referred to as the exit check-post) for endorsement by such officer:

(2) Where any goods consigned from any place outside the State are brought into the State at any place by railway, air, post, boat or steamer or courier for carrying outside the State by road, the driver or person in-charge of vehicle carrying goods from railway station, airport, post-office, steamer or boat station or couriers’ office, as the case may be, to place outside the State shall obtain transit authorisation in duplicate in the prescribed form and manner from the assessing authority in whose jurisdiction such railway station, airport, post-officer, steamer or boat station or couriers’ office is located, and shall produce it along with goods before the officer-in charge of the exit check-post for endorsement.

(3) Where any taxable goods brought from a place outside the State by road are to be transported through the State by rail, river, air, post or courier to a place outside the State, the driver or the person in-charge of the vehicle, while obtaining transit authorisation at the entry check-post shall state the fact to this effect in the application for obtaining transit authorisation and shall, after handing over such goods to the railway, airway, postal authority, steamer or boat or courier, as the case may be, present two copies of transit authorisation along with goods-receipt issued by the agency to whom goods were handed over for carrying outside the State, for endorsement by the officer authorised by the Commissioner in this behalf.

(4).Where any taxable goods being carried from a place outside the State are to be delivered to any person inside the State but during transit the vehicle carrying such goods, after entry into the State, has to leave the State one or more times, the driver or the person in charge of the vehicle shall obtain transit authorisation each time he enters and shall produce the transit authorisation before the officer in-charge of the exit check-post. For each such fragment of journey, provisions of sub-section (1) shall be applicable. In such a case the driver or the person in-charge of the vehicle shall carry with him the documents prescribed under sub-section (1) of section 50. In such a case original copy of declaration shall be endorsed at the check-post where vehicle enters finally inside the State.

(5).With a view to prevent evasion of tax on sales of goods inside the State in the garb of transit authorisation, the officer in-charge at the entry check post, officer authorised under sub-section (1) of section 45, officer empowered to exercise powers under sub-section (1) and sub-section (2) of section 48, or officer-in-charge of the exit check -post may inspect the goods and where goods are found materially different from the goods stipulated in the transit authorisation such officer may, after considering explanation of the driver or the person in-charge of the vehicle if such officer is satisfied that goods relate to tax evasion, it may seize such goods:

Provided that difference due to quality of goods shall not be deemed to be material difference for the purpose of seizure of goods under this sub-section.

(6) Where during inspection of goods under sub-section (5), if Officer in-charge of entry check-post is of the view that goods are according to the quantity or measure disclosed in the application for transit authorisation but value of goods disclosed is less than fifty percent of the market value prevalent at the relevant time, he can estimate the market value of such goods and put a note in this regard on the transit authorisation. In such a case if driver or person in-charge of the vehicle fails to produce such goods during transit or before the officer in-charge of the exit check-post, value of goods estimated and mentioned on the transit authorisation by the officer-in-charge of the entry check-post shall be deemed actual value of goods for all purposes under this Act.

(7).In respect of goods seized under this section, provisions of sub-sections (3), (7), (8), (9) and (10) of section 48 shall mutatis mutandis apply as they apply to goods seized under that section.

(8).In a case in which vehicle has been hired by a transporter for carrying goods only upto a place inside the State and the driver or the person in-charge of vehicle does not own responsibility of taking goods outside the State, the officer in-charge of the entry check-post, before issuing transit authorization, may, in appropriate cases, require the transporter, hiring the vehicle, to furnish security in the interest of revenue.

Provided that security may be furnished by the person inside the State, who after receiving the goods is to carry such goods outside the State.

(9) The amount of security demanded under sub-section (8) shall not exceed the estimated amount of tax payable on the retail sale value of such goods within the State.

(10) In a case in which security has been accepted under sub-section (8), the Officer in-charge of the entry check-post shall put a note to this effect on all copies of transit authorization and the officer in-charge of the exit check-post shall, after the vehicle along with goods leaves the State, communicate the fact by speedy mode of communication to the Officer-in-charge of the entry check-post. Upon receiving the communication, the Officer in-charge of entry check-post shall return or refund the security to the person from whom it was accepted.

(11).In case of a vehicle whose driver or the person in-charge has earlier obtained any transit authorisation and information has been received in respect of such transit authorisation that the same has not been produced before the Officer in-charge of the exit check-post along with the goods mentioned in it, if the driver or person in-charge of such vehicle requests for issue of transit authorisation in respect of some different goods on some other occasion, the officer in-charge of the entry check-post may, after giving reasonable opportunity of being heard, require the driver or the person in-charge of the vehicle to furnish security in the interest of revenue for issue of transit authorization. Provisions of sub-sections (9) and (10), shall mutatis mutandis apply to security demanded under this sub-section as they apply to security demanded under sub-section (8).

(13) Where after obtaining transit authorization under this section, goods under the transit authorisation are not transported outside the State, it shall be presumed that such goods have been sold inside the State.

53. Power to seek assistance from police etc.

An officer exercising powers under the provisions of sections 45, 48, 50, 51, or 52 may take the assistance of police or other officers or officials of the State.

CHAPTER –VIII

OFFENCES AND PENALTIES

54. Offences and prosecution

(1) Any person who-

(a) without reasonable cause, fails to pay the tax assessed on him within the time allowed; or

(b) being liable to pay tax under this Act, carries on business -

(i) without applying for registration; or

(ii) after his application for registration has been rejected; or

(iii) registration certificate granted to him has been cancelled.

(i) to produce any book, document or account; or

(ii) to operate his computer used in connection with business; or

(iii) to allow copies or print outs etc. ;or

(d) fails to issue a tax invoice, sale invoice, transport memo, challan or transfer invoice in accordance with the provisions of this Act, or

(e) with the intention to prevent inspection under this Act, closes or leaves place of business or being a driver or person in-charge of a vehicle carrying goods leaves the vehicle,

shall be punishable with fine which may extend to five thousand rupees, and where the offence is continuing one, to a further fine which may extend to one hundred rupees for every day after the first day during which the offence continues.

(2) A person who willfully -

(a) submits a false return of his turnover under this Act; or

(b) being liable to pay the tax, fails to submit, without reasonable cause, return of his turnover in the manner provided under this Act; or

(d) issues or furnishes a false or wrong certificate or form of declaration prescribed under this Act, by reason of which a tax on sale or purchase of goods ceases to be leviable either in whole or in part; or

(e) makes a false verification, declaration or attestation in any matter connected with this Act; or

(f) evades payment of the tax; or

(g) obstructs or prevents an officer empowered under this Act from performing any of the functions under this Act or the rules made thereunder; or

(h) tampers with any seal put under sub-section (6) of section 45; or

(i) demands or charges on the sale or purchase of any goods any amount of tax in contravention of provisions of this Act; or

(j) refuses or neglects to furnish any information which is in his knowledge or possession or furnishes false information; or

(k) carries on or continues to carry on business without furnishing the security demanded under section 19; or

(l) issues a false tax invoice or sale invoice without making actual sale of goods; or

(m) issues a false transport memo, challan or transfer invoice without actual dispatch or delivery of goods;

(n) receives a false tax invoice, sale invoice from a dealer without actual purchase of goods; or

(o) receives a transport memo, challan or transfer invoice without actual receipt of goods; or

(p) uses or furnishes a prescribed form of declaration or certificate which has not been obtained by him or his authorised agent from the prescribed authority in the prescribed manner ; or

(q) transfers a prescribed form of declaration or certificate to any other dealer or person except for lawful purposes ; or

(r) possesses a prescribed form of declaration or certificate which has not been obtained in accordance with the provisions of this Act or the rules made thereunder ; or

(s) fails to obtain authorisation for transit of goods through the State as provided under section 52 and also fails to prove that the goods are meant for delivery outside the State ; or

(t) fails to -

(i) carry goods outside the State after obtaining authorisation for transit of such goods; or

(ii) hand over the goods to a bonafide person for carrying such goods outside the State against his such undertaking given while obtaining authorisation for transit of the goods; or

(iii) carry goods outside the State after receiving such goods along with authorisation for transit of goods; or

(u) does not stop the vehicle carrying taxable goods when so required by an officer empowered to inspect goods; or

(v) prepares a goods-receipt disclosing false destination of goods outside the State; or

(w) imports or transports or abets to import or transport any taxable goods inside the State in contravention of the provisions of this Act; or

(x) claims an input tax credit on the basis of false tax invoice; or

shall, in addition to recovery of tax or any other dues payable by him under this Act, be punishable with simple imprisonment which may extend to one year or with fine, or both and where offence is a continuing one, to a further fine which may extend to two hundred rupees for every day after the first day during which the offence continues.

(3) No prosecution under this Act shall lie except with the previous sanction of the Commissioner, and no court inferior to that of a Magistrate of 1st class shall take cognizance of any such offence.

55. Offences by companies

(1) If the person committing an offence under this Act is a company, the company as well as every person in-charge of, and responsible to the company for the conduct of its business at the time of commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed with out this knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act, has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any neglect of any other officer of the company, such director, manager, managing agent or such other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and be punished accordingly.

Explanation - For the purpose of this section:

(a) "company" means any body corporate and includes a firm or other association of individuals; and

(b) "Director" in relation to a firm means a partner in the firm.

56. Penalties in certain cases

(1) Where any dealer or other person-

(a) has without reasonable cause failed to deposit the tax due for any tax period within the time prescribed or extended; or.

(b) having deposited the tax due under this Act, has without reasonable cause failed to submit the return for any tax period in the prescribed manner; or.

(d) has maintained or produced false accounts, registers or documents ; or

(e) has without reasonable cause failed, to pay, within the time allowed, the tax assessed and due; or

(f) fails to issue a tax invoice or sale invoice in accordance with the provisions of this Act ; or

(g) has failed to issue a challan, transfer invoice or transport memo in respect of dispatch or delivery of goods in accordance with the provisions of this Act ; or

(h) (i) being liable for registration under this Act has failed to apply in the prescribed manner and within the prescribed time; or

(ii) being liable for registration carries on or continues to carry on business –

(a) after his application for registration has been rejected; or

(b) after his registration certificate has been cancelled; or

(i) upon requiring by the officer empowered under this Act, to inspect, examine and obtain copy, refuses or neglects -

(i) to produce any book, document or account; or

(ii) to operate his computer used in connection with business; or

(iii) to allow copies or print outs etc.; or

(j) obstructs or prevents an officer empowered under section 45 or section 48 or an officer in-charge of a check-post or barrier from performing any of his functions under this Act ; or .

(k) refuses or neglects to furnish any information, which is in his knowledge or possession or furnishes false information ; or.

(l) (i) issues or furnishes a false or wrong certificate or form of declaration prescribed under the Act, by reason of which a tax on sale or purchase, ceases to be leviable, whether in full or in part; or

(ii) issues a tax invoice or sale-invoice without actual sale of goods ; or

(iii) issues a transport memo, challan or transfer invoice without actual dispatch or delivery of goods ; or

(iv) receives a tax invoice or sale-invoice without actual purchase of goods; or

(v) receives a transport memo, challan or transfer invoice without actual receipt of goods; or

(m) (i) makes use of a prescribed form of declaration or certificate which has not been obtained by him or by his principal or agent in accordance with the provisions under this Act ; or

(ii) transfers a prescribed form of declaration or certificate to any other person except for lawful purposes; or

(iii) possesses a prescribed form of declaration or certificate which has not been obtained by him in accordance with the provisions under this Act ; or

(n) (i) closes or leaves place of business with an intention of avoiding inspection under this Act; or.

(ii) being a driver or person in-charge of vehicle leaves the vehicle with an intention of avoiding inspection of goods and documents; or

(iii) willfully does not stop the vehicle carrying taxable goods when so required by an officer empowered to inspect goods; or

(o) (i) imports or attempts to import or abets the import of any goods, in contravention of the provisions under section 50 or section 51 with an intention of evading payment of tax on sale of -

(a) such goods; or

(b) goods manufactured, processed or packed by using such goods; or

(ii) transports, attempts to transport any taxable goods in contravention of any provisions of this Act ; or.

(p) (i) fails to obtain authorisation for transit of goods through the State and also fails to prove that goods are meant for delivery to dealers or persons outside the State ; or

(ii) fails to obtain authorisation for transit but proves that goods are meant for delivery to dealers or other persons outside the State ; or

(iii) while obtaining authorisation for transit of goods through the State undertakes responsibility of handing over such goods to a bonafied person inside the State for carrying them outside the State but fails to hand over such goods to such bonafide person; or

(iv) being a person who receives any goods from driver or person in-charge of a vehicle for carrying them outside the State, does not carry such goods outside the State ; or

(v) being driver or person in-charge of a vehicle or a transporter who receives goods inside the State for carrying them outside the State, fails to produce copies of authorisation for transit of goods along with goods before the officer in-charge of the exit check-post but proves that goods have been carried outside the State ; or

(vi) being a transporter or hirer of a vehicle prepares goods-receipt by showing false destination of goods outside the State; or

(q) realises any amount as tax in contravention of the provisions of this Act; or

(r) fails to keep stationary a vehicle for inspection of goods and, or for search of such vehicle ; or

(s) makes a false verification, declaration or attestation in any matter connected with this Act; or

(t) does not maintain books, accounts or documents in the prescribed manner, or

(u) wrongly claims an amount as input tax credit, or

(v) carries or transports goods without filling relevant columns on a transport memo, challan or transfer invoice; or

(w) otherwise acts in contravention of the provisions off this Act or rules,

the assessing authority may, after such enquiry, as it may deem necessary, direct that such dealer or person shall pay, by way of penalty in addition to the tax if payable, an amount determined in accordance with provisions under the ‘Table’ given below-

TABLE

SR.NO.	CLAUSE	SUB-CLAUSE	AMOUNT OF PENALTY
1	2	3	4
(1)	(a)	-	(i) Sum not less ten percent but not exceeding twenty five percent of the amount of tax payable where amount of tax payable does not exceed ten thousand rupees; or (ii) Sum not less than ten percent but not exceeding fifty percent of the amount of tax payable where amount of tax payable exceeds ten thousand rupees.
(2)	(b)	-	an amount of one thousand rupees.
(3)	(c)	-	a sum equal to three times of the amount of tax treating the concealed turnover liable to tax.
(4)	(d)	-	a sum equal to three times the amount of tax treating concealed turnover liable to tax.
(5)	(e)	-	(i) a sum not less than ten percent but not exceeding twenty five percent of the amount of tax payable where amount of tax does not exceed ten thousand rupees ; or (ii) a sum not less than ten percent but not exceeding fifty percent of the amount of tax where amount of tax payable exceeds ten thousand rupees.
(6)	(f)	-	a sum equal to three times of the amount of tax or forty percent of the value of goods which ever is higher.
(7)	(g)	-	a sum equal to three times of the amount of tax or forty percent of the value of goods whichever is higher.
(8)	(h)	(i )and (ii)	a sum of rupees one hundred for each month or part thereof for default during the first three months and rupees five hundred for every month or part thereof after the first three months during which the default continues.
(9)	(i)	(i), (ii) or (iii)	a sum of five thousand rupees
(10)	(j)		a sum of ten thousand rupees
(11)	(k)		a sum of five thousand rupees
(12)	(l)	(i), (ii), (iii), (iv) or (v)	a sum equal to three times of tax treating the value of goods as taxable turnover of goods or forty percent of the value of goods whichever is higher:
(13)	(m)	(i), (ii) or (iii)	(i) if value of goods is mentioned on such form of declaration or certificate a sum equal to three times of the amount of tax treating the value as taxable turnover of goods or forty percent of the value of goods mentioned on it, whichever is higher; or (ii) if form of declaration or certificate is blank a sum of fifty thousand rupees
(14)	(n)	(i), (ii) or (iii)	a sum not exceeding five thousand rupees
(15)	(o)	(i) or (ii)	a sum equal to three times the amount of tax involved or forty percent of value of goods whichever is higher.
(16)	(p)	(ii)	a sum of five hundred rupees.
	(p)	(i), (iii), (iv), (v) or (vi)	a sum equal to three times of the amount of tax treating the value of goods taxable turnover or forty percent of the value of goods whichever is higher.
(17)	(q)	-	a sum equal to twice the amount of tax so realized.
(18)	(r)		a sum of ten thousand rupees.
(19)	(s)		a sum of ten thousand rupees.
(20)	(t)		a sum of one thousand rupees.
(21)	(u)		a sum equal to three times of amount of input tax credit.
(22)	(v)		a sum of two thousand rupees.
(23)	(w)		a sum not exceeding two thousand rupees.

EXPLANATION – For the purpose of this section -

(I) the assessing authority includes an officer not below the rank of an officer appointed and posted by the Commissioner at a check-post or an officer empowered to exercise powers under sections 45, 46, 47, 48, 50,51,52 and 54 of the Act;

(II) where amount of penalty is to be determined on the basis of turnover of goods, value of goods shown or determined whichever is higher, shall be deemed to be turnover of taxable goods and relating to taxable sale or purchase.

(III)for the purposes of clauses ( l ), (m), (n) and (o) value of goods written on such documents and if value is not written then estimated market value prevalent at the relevant time in local market, shall be deemed the turnover of sales or purchases of taxable goods relating to taxable sale or purchase.

(2) A copy of the order passed under sub-section (1) shall be served on the dealer or person concerned and the amount imposed by way of penalty shall be deposited by such dealer or person in the prescribed manner within thirty days of such service, failing which it may be recovered in the manner provided under section 33.

(3) No order shall be made under sub-section (1) unless the dealer or other person concerned has been given a reasonable opportunity of being heard.

(4) No prosecution under section 54 shall be instituted in respect of the same facts on which a penalty imposed under this section has been paid in addition to the tax due.

(5) The provisions of this section shall mutatis mutandis be applicable to the executor, administrator and the legal representative referred to in section 55,

(6) Where any penalty order passed by assessing authority either under this section or any other section of this Act, is quashed by any authority or court in exercise of powers vested in it on the ground that

show cause notice issued to dealer or any other person is not in accordance with the provisions of this Act, the assessing authority may pass fresh order of penalty after issuing proper notice within one year from the date of receipt of order quashing such earlier order by due process.

(7) where in case of a sick unit as referred to in section 76, any penalty order has been passed exparte and appeal has not been filed against such order, if the State Government issues direction to the assessing authority to set aside such order and to pass fresh order of penalty, assessing authority shall pass such fresh order of penalty within a period of one year from the date on which it receives the order or direction by due process from the State Government.

57. Composition of offences

The assessing authority may accept from any person who has committed or is reasonably suspected of having committed an offence under this Act, by way of composition of such offence -

(a) Where the offence consists of failure to pay any tax recoverable under this Act, a sum of money not exceeding double the amount of tax in addition to the tax so recoverable.

(b) Where the offence consists of an evasion of any tax recoverable under this Act, a sum of money not exceeding Rupees 5000 (five thousand) or triple the amount of tax recoverable whichever is greater in addition to the amount of the tax recoverable;

(c) Where the offence consists of import or transport or abetment to import or transport of any goods in contravention of the provisions of section 50 or section 51, a sum of money not less than the amount of tax that can be evaded and not exceeding three times of the amount of such tax or forty percent of the value of goods whichever is higher.

CHAPTER IX

APPEAL, REVIEW AND REVISION

58. Review by assessing authority

(1) Where in any assessment order amount of tax has been assessed in excess of amount of tax admitted by the dealer only on the grounds of non-submission of any form of declaration or certificate prescribed for seeking either exemption from tax or reduction in rate of tax, and where time for submitting such form or certificate, on the application of the dealer could not be extended for any reason by the assessing authority, the assessing authority may, on the application of the dealer, review such assessment order after expiry of a period of six months but before expiry of period of one year from the date of service of such order on the dealer to allow him the benefit on account of declaration form or certificate submitted within six months from the date of service of order subject to the following conditions: -

(i) The dealer informs in writing to the assessing authority of his intention of submitting such form of declaration or certificate within thirty days from the date of service of order on him;

(ii) The dealer furnishes an affidavit to the effect that he has not filed an appeal against the assessment order;

(iii) The dealer furnishes security of disputed amount of tax to the satisfaction of assessing authority;

(iv) The dealer has deposited admitted tax within thirty days from the date of service of order on him; and

(v) Forms of declaration or certificates submitted by the dealer are found in order;

(2) Where any dealer has fulfilled conditions referred to in clause (i) to clause (iv) of sub-section (1), the assessing authority may stay the recovery of disputed amount of tax till the disposal of review application.

59. Appeal

(1) Any dealer or other person aggrieved by an order made by the Assessing Authority, other than an order mentioned in sub-section (7) of section 48, section 58 or section 65 may, within thirty days form the date of service of the copy of the order, after serving a copy appeal memo on the Assessing Authority or the Commissioner, appeal to such authority (herein after referred to as appellate authority), as may be prescribed.

(2) Where an appeal has been filed against an order referred to in sub-section (1), the Commissioner may apply to the appellate authority to examine the legality and propriety of such order on such point as may be mentioned in the application. A copy of such application shall be served on the appellant and shall be decided along with the appeal filed by the appellant:

Provided that no application for examination of legality and propriety shall be entertained after the disposal of appeal.

Provided further where the Commissioner has filed an application, the appellant shall not be entitled to withdraw appeal filed by him.

Explanation - For the purpose of this section Commissioner includes an officer authorised to file appeal on behalf of Commissioner before the Tribunal under section 61.

(3) No appeal against an assessment order under this Act shall be entertained unless the appellant has furnished satisfactory proof of the payment of the amount of tax or fee due under this Act on the turnover of sale or purchase, or both, as the case may be, admitted by the appellant in the returns filed by him or at any stage in any proceedings under this Act, whichever is greater.

(4) The appeal shall be in the prescribed from and shall be verified in the prescribed manner.

(5) The Appellate Authority may, after calling for and examining the relevant records and after giving a reasonable opportunity of being heard -

(a) in the case of an order of assessment and penalty.-

(i)confirm or annul such order ; or

(ii) vary such order by reducing or enhancing the amount of assessment or penalty, as the case may be, whether such reduction or enhancement arises from a point raised in the grounds of appeal or otherwise ; or

(iii) set aside the order and direct the Assessing Authority to pass a fresh order after such inquiry as may be specified ; or

(iv) direct the Assessing Authority to make such inquiry and to submit its report within such time as may be specified in the direction or within such extended time as it may allow from time to time, and on the expiration of such time the Appellate Authority may, whether the report has been submitted or not decide the appeal in accordance with the provisions of the preceding sub-clauses; or

(b) in the case of any other order-

(i) confirm, cancel or vary such order; or

(ii) set aside the order and direct the Assessing Authority to pass a fresh order after such inquiry as may be specified,

Provided that nothing in this sub-section shall preclude the Appellate Authority from dismissing the appeal at any stage with such observations as it deems fit where the appellant applies for withdrawal of the same and no request for examination of legality or propriety of order under appeal has been made by the Commissioner.

(6) The appellate Authority, may, on the application of the appellant and after giving the Commissioner a reasonable opportunity of being heard stay the operation of order appealed against or the realisation of the disputed amount of tax, fee or penalty payable by the appellant till the disposal of the appeal ;

Provided that –

(i) where an order under appeal does not involve any dispute about tax, fee or penalty, appellate authority may stay the operation of such order till the disposal of appeal subject to such conditions as it may deem fit, including condition of furnishing of security in cash;

(ii) where an order under appeal involves dispute about tax, fee or penalty, no stay order shall remain in force after thirty days from the date of on which the same has been granted, if the appellant, does not furnish security to the satisfaction of the Assessing Authority for payment of the amount, the realisation whereof has been stayed within the aforesaid period of thirty days;

(iii) no such application shall be entertained unless it is filed along with the memorandum of appeal under sub-section (1):

(7) Section 5 of the Limitation Act, 1963, shall apply to appeals or other applications under this section.

(8)The appellate authority shall be under the superintendence and control of the Commissioner:

Provided that in the exercise of such superintendence and control, no order, instructions or directions shall be given by the Commissioner so as to interfere with the discretion of the Appellate Authority in the exercise of its appellate functions.

(9)For the purpose of this section service of an order passed by appellate authority under this section and service of memo of appeal on the State Representative, shall be deemed to be service on the Commissioner.

(10) All appeals arising out of the same cause of action in respect of an assessment year, as for as possible, shall be heard and decided together.

60. Revision by the commissioner.

(1) The Commissioner or such other Officer not below the rank of Joint Commissioner, as may be authorised in this behalf by the Commissioner, may call for and examine the record relating to any order other than an order mentioned in section 65, passed by any officer subordinate to him, for the purpose of satisfying himself as to the legality or propriety of such order and may pass such order with respect thereto as he thinks fit.

(2) No order under sub-section (1) affecting the interest of a party adversely shall be passed unless he has been given a reasonable opportunity of being heard.

(3) No order under sub-section (1), shall be passed-

(a) to revise an order, which is or has been the subject matter of an appeal under section 59, or an order passed by the Appellate Authority under that section.

(b) before the expiration of sixty days from the date of the order in question;

Explanation- Where the appeal against any order is withdrawn or is dismissed for non-payment of fee payable under section 75 or for non-compliance of sub-section (3) of section 59, the order shall not be deemed to have been the subject-matter of an appeal under section 59;

(4) No dealer or any other person aggrieved by an order against which appeal lies under section 59 shall be entitled to present an application for review of such order under this section.

61. Tribunal

(1) There shall be a Tribunal consisting of such members including a President as the State Government may, from time to time, deem it necessary to appoint from amongst-

(a) the persons who are qualified to be the judge of the High Court, and

(b) the persons belonging to the Uttar Pradesh Trade Tax Services who hold or have held a post not below the rank of Joint Commissioner:

Provided that-

(i) Where the Tribunal consists of one or more persons who is or are member or members of the U.P. Higher Judicial Service, then he or senior most amongst them shall be appointed as the President.

(ii) No person shall be appointed from amongst the advocate unless-

(a) he has paid Income Tax from his legal in each of ten consecutive years preceding such appointment.

(b) he has attained the age of forty-five years on the first day of the appointment year.

The appointment year shall have the same meanings as assigned to it under the Uttar Pradesh Trade Tax Service Rules, 1983.

(c)Members under this clause shall be appointed for a term of three years from the date of appointment or till he attains the age of superannuation as prescribed under U.P. Fundamental rules, which ever is earlier.

(2) The State Government may prescribe such other qualification or conditions for the appointment of the President and the other members of the Tribunal as it may deem fit.

(3) The provisions of rule 56 of the U.P. Fundamental Rules shall continue to apply to every member of the Tribunal including the President whether appointed before or after the commencement of this Act, as they apply to any other Government servant.

(4) Any person aggrieved by an order passed under section 35, section 59, section 60, a decision under section 64 or a direction under the proviso to sub-section (7) of section 48 may, within ninety days from the date of service of the copy of such order, decision or direction on him, prefer an appeal to the Tribunal.

Provided that where order passed by appellate Authority under section 59 or by revising authority under section 60 of the Act, is an order in respect of demand of any security, not being security demanded for release of goods seized under any provisions of this Act, appeal under this section can be filed only after furnishing security, fixed by the appellate authority under section 59 or as the case may be, by revising authority under section 60.

Provided further that where the disputed amount of tax, fee or penalty does not exceed five thousand rupees and no question of law is involved, the appellant may, at his option, request the Tribunal in writing for summary disposal of his appeal, whereupon the Tribunal may decide the appeal accordingly.

Explanation : For the purposes of this sub-section, the expression ' any person' in relation to any order passed by an authority other than the Commissioner includes the Commissioner and, in relation to any order passed by the Commissioner includes the State Government;

(5) The manner and procedure of summary disposal of appeal shall be such as may be prescribed.

(6) Section 5 of the Limitation Act, 1963 shall apply to appeals or other applications under this section.

(7) The Tribunal may at any stage, after giving the appellant a reasonable opportunity of being heard, dismiss the appeal.

(8) The Tribunal may, if it has not already dismissed the appeal under sub-section (7), after calling for and examining the relevant records, and after giving the parties a reasonable opportunity of being heard or, as the case may be, after following the procedure prescribed under sub-section (5):

(a) confirm, cancel or vary such order, or

(b) set aside the order and direct the assessing or appellate or revising authority or the Commissioner as the case may be, to pass a fresh order after such further enquiry, if any, as may be specified , or

(c) order such amount of tax, fee or penalty or other money as may have been realized in excess of the due amount to be refunded according to the provisions of this Act.

(9) Where an appeal under this section has been filed, the Tribunal may, on the application of the appellant moved along with the memorandum of such appeal after giving the parties a reasonable opportunity of being heard, stay the operation of the order appealed against or the recovery of the disputed amount of any tax, fee or penalty payable, or refund of the amount due, or proceeding for reassessment under the order appealed against till the disposal of the appeal:

Provided that-

(i) where appellate authority under section 59 has set aside an order of assessment or penalty and has remanded the case to the assessing authority, for decision afresh, and the appellant under this section is a person other than the Commissioner or the State Government, for the purpose of this section, disputed amount of tax or penalty shall be deemed to be the same which had been before appellate authority under section 59;and

(ii) subject to provision under sub clause (i) above where order appealed against does not involve any dispute about quantum of tax, fee or penalty, on the application of the appellant the Tribunal may stay the operation of such order till the disposal of appeal subject to such conditions including a condition of furnishing of a security in cash within the time allowed;

Provided further that-

(a) no application for stay of recovery of any disputed amount of tax, fee or penalty shall be entertained unless the applicant has furnished satisfactory proof of the payment of not less than one third of such disputed amount in addition to the amount required to be deposited under sub-section (3) of section 59.

(b) the Tribunal may, for special and adequate reasons to be recorded in writing, waive or relax the requirement of clause (a) regarding payment of the one-third of such disputed amount.

(10) Where the Tribunal passes an order under this section for the stay of recovery of any tax, fee or penalty or for the stay of the operation of any order appealed against and such order of the Tribunal results in the stay of recovery of any tax, fee or penalty, such stay order of the Tribunal shall not remain in force for more than thirty days unless the appellant furnished adequate security to the satisfaction of the assessing authority concerned for the payment of the outstanding amount.

(11) The members of the Tribunal shall sit in such benches of one, two or more members, as may be constituted from time to time, and do such work of the Tribunal as may, subject to sub-section (12) and the rules, be allotted to them, by order or in accordance with the directions of the President of Tribunal.

(12) (a) An appeal against the order of appellate authority under section 59 shall be heard and disposed of-

(iii) by a bench of two members, where such order, not being an order passed on the application of the appellant for stay, is passed by an Additional commissioner (Appeals) or the amount of tax, fee or penalty in dispute, exceeds two lakh rupees;

(ii) by a single member bench, in any other case.

(b) An appeal against a direction given under the proviso to sub-section (7) of section 48 shall be heard and disposed of by a -

(i) bench of two members where such direction under appeal has been given by the Commissioner, Special Commissioner or an Additional Commissioner;

(ii) by a single member bench in any other case;

(i) bench of two members where amount of tax, fee or penalty in dispute exceeds rupees two lakh or where order under appeal has been passed by the Commissioner, Special Commissioner or an Additional Commissioner;

(ii) single member bench in any other case;

(d) An appeal against a decision given under section 35 or section 64, shall be filed before the President and shall be heard and disposed of by a bench of three members.

(e) The President may, if he so thinks fit,-

(i) direct an appeal to be heard and decided by a larger bench;

(ii) transfer an appeal from one bench to another bench.

(e) In a case before a bench consisting of two or more members any order other than an order finally disposing of the case may be passed by any one of the members constituting the bench.

Provided that an appeal against an order passed on an application for stay, may be disposed of finally by a single member bench.

(13) All appeals arising out of the same cause of action in respect of an assessment year shall, as for as possible, be heard and decided together:

Provided that where anyone or more of such appeals have been heard and decided earlier, if the bench hearing the remaining appeals considers that such decision may be a legal impediment in giving relief in such remaining appeals, it may, if the earlier decision was given-

(a) by a smaller bench or a bench of equal strength, recall such earlier decision and proceed to decide all the appeals together;

(b) by a larger bench, refer such remaining appeals to such larger bench having jurisdiction and thereafter such larger bench may recall such earlier decision and proceed to decide all the appeals together.

(14)The place of sitting and procedure of, and the manner of presenting appeals and other documents to the Tribunal shall, subject to the rules, be such as the Tribunal may deem fit to adopt.

(15)The decision of case heard by a bench, shall be in accordance with opinion of the majority. Where the members are equally divided the President of the Tribunal may,-

(a) if he was not a member of such bench, give his own opinion or refer the case for the opinion of another member, whereupon the case shall be decided in accordance with such opinions; or

(b) form a larger bench.

62. Review by the tribunal

The Tribunal may, on the application presented within Ninety days from the date of order by either party to the appeal, may within one hundred and eighty days from the date of such order passed by it under sub-section (7) or sub-section (8) of section 61 review such order on the basis of facts which were not before it when the order was passed.

Provided that no order passed by it under sub-section (7) or sub-section (8) of section 61 shall be reviewed if revision filed under section 61 against such order has been decided by the High Court.

63. Revision by high court in special cases

(1) Any person aggrieved by an order made under sub-section (7) or sub-section (8) of section 61 other than an order under sub-section (4) of that section summarily disposing of the appeal or by an order passed under section 62, may, within ninety days from the date of service of such order, apply to the High Court for revision of such order on the ground that the case involves any question of law.

(2) The application for revision under sub-section (1) shall precisely state the question of law involved in the case, and it shall be competent for the High Court to formulate the question of law or to allow any other question of law to be raised.

(3) Where an application under this section is pending, the High Court may, on an application in this behalf, stay recovery of any disputed amount of tax, fee or penalty payable, or refund of any amount due under the order sought to be revised:

Provided that no order for stay or recovery of such disputed amount shall remain in force for more than thirty days unless the applicant furnishes adequate security to the satisfaction of the Assessing Authority concerned.

(4) The High Court shall, after hearing the parties to revision, decide the question, of law involved therein, and where as a result of such decision, the amount of tax, fee or penalty is required to be determined afresh, the High Court may send a copy of the decision to the Tribunal for fresh determination of the amount, and the Tribunal shall thereupon pass such orders as are necessary to dispose of the case in conformity with the said decision.

(5) All applications for revision of orders passed under sections 61 or 62 in appeals arising out of the same cause of action in respect of an assessment year shall be heard and decided together:

Provided that where any one or more of such applications have been heard and decided earlier, if the High Court, while hearing the remaining applications, considers that the earlier decision may be a legal impediment in giving relief in such remaining applications, it may recall such earlier decision and may thereafter proceed to hear and decide all the applications together.

(6) The provisions of section 5 of the Limitation Act, 1963, shall mutatis mutandis, apply to every application, for revision under this section.

Explanation- For the purpose of this section, the expression "any person" includes the Commissioner and the State Government.

64. Determination of disputed questions

(1) If any question arises, otherwise than in a proceedings pending before a Court or before an authority under the Act, whether, for the purposes of this Act-

(a) any person or association of persons, society, club, firm, company, corporation, undertaking or Government Department is a dealer; or

(b) any particular thing done to any goods amounts to or results in the manufacture of goods within the meaning of that term; or

(d) any particular dealer is required to obtain registration ; or

(e) any tax is payable in respect of any particular sale or purchase and, if so, the rate thereof, the person or the dealer concerned may, after depositing the fee specified in section 77, submit an application to the commissioner, along with such documents as may be prescribed.

(2) The Commissioner shall, after giving the applicant an opportunity of being heard, decide as he deems fit the question so arising:

Provided that, before giving such decision, the Commissioner may, in his discretion, ask an officer subordinate to him to make such inquiries as he considers necessary for the decision of the question.

(3) No decision of the Commissioner under this section shall affect the validity or operation of any order passed earlier by any assessing authority, appellate authority, revising authority or the Tribunal.

(4) No question which arises from an order already passed, in the case of applicant, by any authority under this Act or the Tribunal, shall be entertained for determination under this section.

(5) Except as provided in sub-section (3), a decision given by the Commissioner under this Section shall, subject to the provisions of sections 61 and 63 be final and binding on the applicant, the Assessing Authority and the Appellate Authority.

(6) A copy of the decision given under this section shall be sent to the applicant and to the assessing authority concerned.

65. Orders against which no appeal or revision shall lie

No appeal and no application for revision shall lie against-

(a) an order or notice initiating an inquiry for assessment or re-assessment;

(b) any order or action under section 45, sub-sections (1), (2) or (7) of section 48, sub-section (6) of section 50 or an order of seizure of goods.

66. Additional evidence in appeal

The assessee shall not be entitled to produce additional evidence, whether oral or documentary, before the appellate authority or the Tribunal except where the evidence sought to be adduced is evidence, which the assessing authority had wrongly refused to admit or which after exercise of due diligence was not within his knowledge or could not be produced by him before the assessing authority, and in every such case, upon the additional evidence being taken on record, reasonable opportunity for challenge or rebuttal shall be given to the Assessing Authority.

CHAPTER X

Settlement Commission

67. Constitution of the Settlement Commission

(1)There shall be a Settlement Commission consisting of a Chairman and such number of other Judicial and Accounts members not less than two in each category as may be determined by the State Government.

Explanation: For the purpose of Settlement Commission, a person who has been a Judge of a High Court or a member of Uttar Pradesh Higher Judicial Service shall be deemed a judicial member and person who has been member of any other service shall be deemed an accounts member.

(2)The Commission shall be located at the State headquarter but the Commission for discharge of its functions, may, at its option, hold its camp at any public place anywhere inside the State.

(3) A person shall not be qualified for appointment as Chairman, unless he -

(a) has been a judge of a High Court, or

(b) has, for at least one year, held the post of the President of Tribunal under this Act or the Uttar Pradesh Trade Tax Act, 1948; or

(c) has been a member of the Indian administrative Service who has held the post of a Secretary to the State Government or any other post under the State Government equivalent thereto, and has adequate experience in taxation matters.

(4) A person shall not be qualified for appointment as member unless he,

(a) has for at least two years, held the post of Member Tribunal under this Act or under the Uttar Pradesh Trade Tax Act 1948 ; and

(b) he is or has been a member of U.P. Higher Judicial Service or a member of Uttar Pradesh Trade Tax Service, as the case may be.

(5) The chairman and every other Member shall be appointed by the State Government but the judicial member shall be appointed after consultation with the Chief Justice for which proposal will be initiated by the State Government;

Provided that the Chairman or member shall not assume the office unless he has resigned or retired from, as the case may be, the Judgeship of the High Court, or the Uttar Pradesh Higher Judicial Service or any other service in which he was serving.

(6) The Chairman and member shall hold office as such for a term of three years from the date on which he enters upon his office:

Provided that no Chairman or other member shall hold office as such after he has attained.

(a) in the case of Chairman the age of sixty five years, and

(b) in the case of any other Member the age of sixty two years.

(7) The Chairman or any other member may by notice in writing under his hand addressed to the Governor resign his office.

(8) The Chairman or any other member shall not be removed from his office except by an order made by the Governor on the ground of proved misbehaviour or incapacity after ( an inquiry made by the Chief Justice or such Judge of the High Court as may be nominated by the Chief Justice,) in the prescribed manner, in which such Chairman or other member as the case may be, has been informed of the charges against him and given reasonable opportunity of being heard in respect of those charges.

(9) On ceasing to hold office, the Chairman or other member shall not appear, act or plead before any authority under this Act.

(11) The salaries and allowances payable to the Chairman and other member and the other conditions of their service shall be such as may be determined by the State Government from time to time.

(12) Where the Chairman is unable to discharge his functions owing to absence, illness or any other cause, or where any vacancy occurs in the Office of the Chairman by reason of his death, resignation or otherwise, the President of Tribunal shall discharge the function of the Chairman until the Chairman resumes his duties or as the case may be, a Chairman appointed in accordance with the provisions of this Act assumes charge of his office.

68. Staff of the Settlement Commission

(1) The State Government shall determine the nature and categories of the officers and other employees required to assist the Settlement Commission (hereinafter referred to as the Commission) in the discharge of its functions and provide the Commission with such officers and other employees as it may think fit.

(2) The officers and other employees of the Commission shall discharge their function under the general superintendence of the Chairman.

(3) The salaries and allowances and conditions of service of the officers and other employees of the Commission shall be such as may be notified by the State Government.

69. Reference of case to the Settlement Commission-

(1) Any dealer or other person who has been served with a notice –

(i) under sub-section (10) of section 45 and who is suspected to have evaded payment of tax exceeding one lakh rupees or such larger amount of tax as the State Government may by notification in the Gazette specify; or

(ii) for imposition of penalty either under sub-section (4) of section 48 or under clause (c) or clause (o) of sub-section (1) of section 56 and where the maximum amount of penalty that can be imposed is likely to exceed one lakh rupees,

may file a petition before the Commission for settlement of amount of tax that may be assessed or amount of penalty that may be imposed or both, as the case may be, within thirty days from the date of receipt of such notice after giving intimation to the authority who has issued such notice.

Provided that the Commission may, in appropriate cases, accept the application after expiry of period of thirty days but before expiry of period of ninety days where the assessing authority has not passed order of assessment or penalty, as the case may be, in pursuance of such notice.

(2)The petition, in the prescribed form and manner along with such other documents as may be prescribed, shall be addressed to the Chairman of the Commission and shall be submitted in the office of the Commission along with satisfactory proof of deposit of fee of five thousand rupees.

70. Procedure to be adopted by the Commission

(1) The Chairman may from time to time constitute bench of two members for the disposal of the settlement cases received under section 69.

(2) A bench of two members shall include a Judicial Member and an accounts Member:

Provided that Chairman may nominate himself as one of the members of the bench.

(3) The petition referred to in section 69 shall be placed before the bench to which it has been marked by the Chairman and where the bench, after giving reasonable opportunity of being heard to the petitioner and the representative officer of the commissioner, is of the opinion that prima facie case for settlement is made out, it shall, subject to provision under sub-section (4), –

(i) order for registration of the case; and

(ii) stay the proceedings before the assessing authority in the case.

(4) Where after giving reasonable opportunity of being heard as provided under sub-section (3) if the Commission is of the opinion that a case for settlement is not made out, it shall reject the petition.

Provided that where petition presented is incomplete, the commission, shall not reject the petition if the petitioner removes defects within the time allowed by the Commission.

(5) Where a case for settlement has been registered, the Commission shall order to call for the report in the matter from the authority who has issued notice on the basis of which settlement case has been registered and such officer shall submit its report within thirty days of receipt of the direction from the Commission or such extended time as the Commission may allow.

(6) Upon receiving the report referred to in sub-section (5) the Commission after giving reasonable opportunity of hearing to both parties and examining the records shall prepare the proposal of amount of tax or penalty or both, as the case may be, which in its opinion will be appropriate in the facts and circumstances of the case.

(7) For the purpose of sub-section (6) the Commission may call for any records from the petitioner and the Commissioner relating to the case or such other records which may be helpful in the case.

(8) In a case of difference of opinion between the two members, the Chairman shall constitute a bench of three members including the members who have heard the case previously. Such bench after following the procedure under sub-section (6) and sub-section (7) shall, with majority of opinion, prepare the proposal referred to in sub-section (6).

(9) The petitioner shall be served with the proposal under sub-section (6) or Sub-section (8), as the case may be, for giving its consent within a period of fifteen days from the date of receipt of the proposal.

(10) The petitioner shall, within fifteen days from the receipt of the proposal from the Commission, shall submit its willingness to pay the proposed amount of tax or penalty or both, as the case may be, and where the petitioner accepts the proposal the Commission shall pass an order in the matter and shall direct the petitioner to deposit the amount within thirty days from the date of service of order on him.

(11) Where the petitioner is not willing to pay the proposed amount , he shall intimate to the Commission along with reasons why he does not consider the proposal to be reasonable and shall also quote his own proposal. The Commission in such case, in the joint sitting of the members who have heard the case, shall reconsider the case and where amount proposed by the petitioner seems to be reasonable in view of the new facts brought to the notice of the Commission or on the grounds set forth in his proposal by the applicant, it may accept the proposal and may pass the order accordingly.

(12) If the applicant does not respond to the proposal offered by the Commission within the time prescribed or within such further time, as may be allowed by the Commission on the application of the petitioner, the Commission shall dismiss the case stating reasons therefor.

(13) Copies of order under sub-sections (10), (11) and (12) shall be sent to the officer who has issued the notice to the applicant, the petitioner through his assessing authority, the assessing authority of the applicant and the Commissioner and where the order passed by the Commission relates to payment of amount of tax, the assessing authority shall also serve the notice of demand for the amount which is to be paid by the petitioner.

(14) The Commission may grant facility of payment of the amount mentioned in the settlement order along with amount of interest payable, in monthly instalments not exceeding twenty four subject to such conditions including condition of furnishing security to the satisfaction of the assessing authority, as it may deem fit..

(15) Where the petitioner does not deposit the amount or any part of it mentioned in the settlement order, the same shall become recoverable as arrears of land revenue after expiry of a period of thirty days from the date of service of the order on him and the assessing authority shall recover such amount as if such amount is amount of tax assessed or penalty imposed under any other provisions of the Act.

(16) Provisions relating to payment of interest in respect of amount of tax shall apply to the amount mentioned in the settlement order in the manner the same are applicable in the case of tax levied under any other provisions of the Act.

(17) For all purposes under the Act, amount determined under this section shall be treated to be tax levied or amount of penalty imposed, as the case may be, and date of order made by the Commission shall be treated to be the date of order of assessment or penalty as the case may be.

(18) Where petition of the dealer or other person has been rejected by the Commission, the assessing authority shall proceed to assess the tax or to impose the penalty in case of such dealer or other person in accordance with the other provisions of the Act.

(19) Notwithstanding anything contained contrary to in section 28 of the Act, where in any case of assessment a petition under this section has been rejected by the Commission, the assessment or re-assessment, as the case may be, may be made by the assessing authority before the expiry of the assessment year succeeding the assessment year in which order passed by the Commission has been received by the assessing authority by due process.

(20) Where a case of settlement under this section is pending before the Commission, nothing shall preclude the assessing authority from making an assessment or re-assessment pertaining to the assessment years to which settlement case is pending but the assessing authority shall make its order by ignoring the material under the show cause notice before the Commission.

(21) Where any settlement case relating to evasion of tax is pending for consideration before the Commission, if any additional notice in respect of tax evasion by the same authority or any fresh notice by any other authority is issued on any ground not mentioned in the earlier notice, the petitioner or the Commissioner may request the Commission to consider the material set out in such other notice provided the Commission has not made the settlement order.

(22) The Chairman, during pendency of a case, can -

(i) transfer any case from one bench to the other; or

(ii) reconstitute the bench.

(23) The Commission shall not entertain a petition regarding a matter which has been subject matter of any petition filed earlier by the dealer or other person.

(24) No appeal, revision or review shall lie against any proceedings or any order made under this section.

CHAPTER- XI

Miscellaneous

71. Objections to jurisdiction

(1) No objection as to the territorial or pecuniary jurisdiction of any assessing authority shall be allowed by any appellate or revising authority or the Tribunal, unless such objection was taken before the assessing authority at the earliest possible opportunity and unless, in the opinion of the appellate or revising authority or the Tribunal, as the case may be, a failure of justice has in fact been occasioned thereby.

(2) Where any assessment is set aside or quashed merely on the ground of want of territorial or pecuniary jurisdiction of the assessing authority or on any other ground of a like nature not affecting the substance, any tax already paid by the assessee, to the extent of the liability admitted by him shall not be refundable to him, in consequence of the assessment being so set aside or quashed.

72. Indemnity

No suit, prosecution or other legal proceedings shall lie against any servant of the Government for anything, which is in good faith done or intended to be done under this Act or the Rules made thereunder.

73. Bar to certain proceedings

No assessment made and no order passed under this Act or the rules made thereunder by any authority shall be called in question in any Court, and, save as is provided in this Act, no appeal or application for revision or review shall lie against any such assessment or order.

74. Certain information to be confidential

(1) All particulars contained in any statement made, return furnished or accounts or documents produced under the provisions of the Act or of the rules made thereunder, or in any evidence given or affidavit or deposition made in the course of any proceedings under the Act or the rules made thereunder, or in any record of any proceedings relating to the recovery of a demand prepared for the purpose of the Act or the rules made thereunder, shall be treated as confidential.

(2) Nothing in sub-section (1) shall apply to the disclosure of any such particulars-

(i) for the purpose of any investigation of, or prosecution for any offence under this Act or under the Indian Penal Code, 1860, or under any other enactment for the time being in force; or

(ii) to any person acting in the execution of the Act or the rules made thereunder where it is necessary to disclose the same to him for the purposes of the Act or the rules made thereunder; or

(iii) occasioned by the lawful employment under the Act or the rules made thereunder of any process for the recovery of any demand; or

(iv) to a Civil Court in any suit to which the Government are a party, which relates to any matter arising out of any proceedings under the Act or the rules made thereunder; or

(v) occasioned by the lawful exercise by a public servant of his powers under the Indian Stamps Act, 1899, to impound an insufficient stamped document; or

(vi) to an officer of Central Government or the Government of any State, for the purpose of enabling that Government to levy or realise any tax imposed by it; or

(vii) to an officer of the Central or the State Government for the purposes of making any inquiry against any Government servant; or

(viii) for purposes of audit of public accounts.

75. Power to make rules

(1) The State Government may make rules to carry out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing powers, such rules may provide for-

(a) all matters expressly required or allowed by this Act to be prescribed;

(b) the licensing of persons engaged in the sales or purchase of goods and the imposing of condition in respect of the sale for the purpose of enforcing the provisions of this Act;

(d) compelling the submission of returns and the production of documents and enforcing the attendance of a person and examining them on oath or affirmation;

(e) the appointment, duties and powers of the officers appointed for the purpose of enforcing the provisions of this Act;

(f)generally regulating the procedure to be followed and the forms to be adopted in proceedings under this Act;

(a) refunds of amounts deposited under sub-section(1) of Section 43, the procedure for such refunds and the period within which they may be made;

(h) the custody of the goods seized under section 46; and

(i) the matters which are to be or may be prescribed;

(3)The power to make Rules conferred by this section shall be subject to condition of the rules being made after previous publication for a period of not less than four weeks:

Provided that if the State Government is satisfied that circumstances exist which render it necessary for it to take immediate action, it may make any rule without such previous publication.

(4) All rules made under this section shall be published in the Gazette and upon such publication shall have effect immediately as if enacted in this Act.

76. Facility for sick industrial units

(1) notwithstanding anything contained in sub-section (1) and sub-section (2) of section 33 and section 39, but subject to such conditions, as may be deemed fit to be imposed, the State Government may allow the deferment of payment of any existing or future dues payable by an industrial unit under the provisions of this Act or allow payment of such dues in such number of instalments as may be specified, if such industrial unit is declared a sick unit in accordance with the guidelines specified in this behalf by an authorised body constituted by the Central Government or the State Government in connection with the rehabilitation of sick industrial units, and is approved for rehabilitation by an approved agency, appointed by the Central Government or the State Government.

(2) Notwithstanding anything contained in section 32, the State Government may set aside an order of assessment or penalty passed ex-party against a sick unit and direct fresh disposal of the case in accordance with law.

77. Fees in certain cases

(1) Subject to other provisions under the Act, the fee payable on a memorandum of appeal or other applications under this Act filed or moved shall be as follows:

(a)	On a memorandum of appeal under section 59.	Two percent of the amount of tax, fee or penalty in dispute, subject to a minimum of one hundred rupees and a maximum of one thousand rupees.
(b)	On a memorandum of appeal under section 61.	Seven and a half per cent of the amount of tax, fee or penalty in dispute, subject to a minimum of five hundred rupees and maximum of two thousand one hundred rupees.
(c)	On an application under section- 64	One Hundred rupees.
(d)	On any other application- (i) When addressed to the Commissioner or the Revising Authority or the Tribunal or the Settlement Commission	Twenty rupees
(ii)	When addressed to any other officer or authority.	Ten rupees.

(2) The fee referred to in this section and in any other provision of this Act shall be payable in the manner prescribed, and proof of deposit of the same shall be attached to the memorandum or application, as the case may be:

Provided that where the amount of fee payable does not exceed fifty rupees, the same may be paid in court fee stamps.

(3) No fee shall be payable in respect of:-

(a) an application or a memorandum of appeal presented by the Commissioner or any other officer or authority appointed under this Act or the rules made thereunder.

(b) an application in which only information is sought and in which no specific relief is prayed for ; and

(c) an application under section 64, seeking a decision only as to the rate of tax applicable or the point at which the tax is payable.

78. Transfer to defraud revenue void

(1) Where, during the pendency of any proceedings under this Act. any person liable to pay any tax or other dues creates a charge on, or transfers any movable or immovable property belonging to him in favour of any other person with the intention of defrauding any such tax or other dues, such charge or transfer shall be void as against any claim in respect of any tax or other dues payable by such person as a result of the completion of the said proceedings:

Provided that nothing in this section shall impair the rights of a transferee in good faith and for consideration.

(2) Nothing in sub-section (1) shall apply to a charge or transfer in favour of a banking company as defined in the Banking Regulation Act, 1949 ( Act X of 1949) or any other financial institution specified by the State Government by notification in this behalf.

79. Power to issue notifications

Where the State Government is satisfied that it is necessary so to do in the public interest, it may issue notification wherever required under the provision of this Act so as to make it effective from a date not earlier than six months from the date of issuance of such notification:

Provided that no notification having the effect of increasing the liability to tax of a dealer shall be issued with retrospective effect under this section.

80. Power to collect statistics

(1) The Commissioner may, by issuing a circular or by publication in the news paper, direct that statistics be collected relating to any matter under this Act.

(2) Any officer authorised to collect statistics may, call upon all dealers or class of dealers or a particular dealer to furnish such information, returns or statements as may be required relating to any matter in respect of which statistics are to be collected.

(3) Dealer shall be liable to furnish such information within the time allowed.

81. Tax to be first charge on property

Notwithstanding anything to the contrary contained in any law for the time being in force, any amount payable by a dealer or any other person under this Act on account of tax, fee, penalty or interest, shall be a first charge on the property of the dealer or such person.

82. Powers of Authorities under the Act

(1) The authorities under the Act mentioned In column (2) shall be under the superintendence and administrative control of the authorities mentioned in column (3) of the table below: -

Sl. No. (1)	Authorities (2)	Superintendence and control (3)
(1)	Chairman Settlement Commission, President Tribunal and Commissioner	The State Government
(2)	Members of the Settlement Commission	Chairman Settlement Commission
(3)	Members of Tribunal and Registrar of Tribunal	President Tribunal
(4)	Special Commissioner, Additional Commissioner and Joint Commissioner	Commissioner
(5)	All other Officers	As may be prescribed

(2) The Settlement Commission, President of Tribunal and Commissioner shall have jurisdiction over whole of the State and shall exercise the powers conferred upon, and perform the duties imposed by or under the Act and rules framed thereunder.

(3) The Chairman and members of the Settlement Commission shall exercise powers and perform the duties assigned to them under section 70 and rules framed thereunder.

(4) President and members of the Tribunal shall exercise the powers and perform the duties assigned to them under sections 61 and 62 and rules framed thereunder.

(5) The Commissioner shall exercise the powers and perform the duties assigned to him under the Act and the rules framed thereunder and shall have all powers exercisable by subordinate authorities other than the appellate authority under section 59.

(6) Consistent with the provisions of this Act and Rules made thereunder, the Commissioner may issue instructions to officers under his subordination, generally regulating the procedure to be followed in carrying out the provisions of the Act or Rules made thereunder:

Provided that no order, instructions or directions shall be given by the Commissioner so as to interfere with the discretion of the appellate authority in the exercise of its appellate functions.

(7) Subject to general control of the Commissioner-

(i) Special Commissioner and all Additional Commissioners shall also exercise powers vested in the Commissioner;

(ii) all Joint Commissioners and Deputy Commissioners shall exercise the powers conferred upon and perform the duties imposed by or under the Act or the Rules made thereunder, as may be consistently with the Act or the Rules made thereunder, be conferred and assigned to them; and

(iii) All other officers shall exercise the powers and perform the duties as may be assigned to them under rules framed under this Act.

(8) The State Government, for the purpose of carrying out the provisions under the Act or rules framed thereunder, may appoint and, or as the case may be, post such other officers by name or designation as it may deem fit and as may be prescribed.

(9) Authorities under the Act shall exercise their powers in the jurisdiction as may be prescribed or as may be notified by the State Government in exercise of the powers vested in it under the Rules.

CHAPTER XII

Repeal, Saving and Transitory Provisions

83. Repeal and saving

(1) The Uttar Pradesh Trade Tax Act, 1948 (U.P. Act No. XV of 1948) is hereby repealed, but such repeal shall not -

(a) affect the previous operation of the Act so repealed or anything duly done or suffered thereunder or ;

(b) affect any right, privilege, obligation or liability acquired, accrued or incurred under the repealed Act, except the right or privilege accrued under the repealed Act for availing of the facility of industrial concession by way of exemption from or deferment of payment of tax by a dealer who had established new industrial unit in the State of Uttar Pradesh Pradesh or undertaken expansion, modernisation or diversification on an industrial unit; or

(c) affect any offence committed against or the violation of the provision of the enactment so repealed or penalty, forfeiture or punishment incurred or inflicted in respect of any offence or violation committed under the provisions of the repealed Act in respect of such right, privilege, obligation, liability, penalty, forfeiture or punishment; or

(d) affect any investigation, enquiry, assessment, proceeding, any other legal proceeding or remedy instituted, continued or enforced under the repealed Act; or

(e) revive anything not in force or existing at the time when the repeal takes effect ;

and any such penalty, forfeiture or punishment as aforesaid or any proceeding or remedy and an investigation, legal proceeding or remedy as described in clause (d) may be instituted, continued, or enforced under the repealed act shall be deemed to be instituted, continued or enforced, as if the said Act had not been so repealed.

(2) Any officer, authorised by the Commissioner under the Uttar Pradesh Trade Tax Act, to exercise powers under 10-B and sub-section (6) of section 13-A of that Act, shall be deemed to have been authorised by the Commissioner to exercise powers under section 60 and sub-section (7) of section 48 respectively under this Act.

(3) Any order made or direction issued by the State government or by the Commissioner under the repealed Act, for carrying out purposes of the repealed Act, to the extent the same are not inconsistent with the provisions under this Act, shall be deemed to have been issued under the provisions of this Act.

(4) Any amount of tax, penalty or fee, assessed, imposed or payable under the provisions of the repealed Act, shall be paid and recovered in the manner provided under this Act. Amount of interest payable for the period starting on or after the date of the commencement of this Act shall be paid and be recovered in accordance with provisions of this Act.

(5)Any amount deposited by or recovered from a dealer or any other person, in excess of amount of tax or penalty or fee payable by him under the provisions of the repealed Act, shall first be adjusted towards any amount outstanding against such person under the repealed Act and thereafter remaining excess amount towards any amount outstanding either under this Act or under the Central Sales Tax Act 1956, and remaining amount alongwith interest, if any payable, shall be refunded to such person in accordance with provisions of this Act.

(6) Any security or additional security furnished under the provisions of the repealed Act, shall be deemed valid for the purposes under this Act only upon furnishing an undertaking from the surety to this effect in the prescribed form and manner within thirty days from the date of the commencement of this Act.

Provided that in appropriate cases, the assessing authority may extend the time for furnishing undertaking from sureties.