Maharashtra VAT Act - By MITZZ-XP

8/9/2019 Maharashtra VAT Act - By MITZZ-XP

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MAHARASHTRA VALUE ADDED TAX ACT, 2002

L.A. BILL No. LX of 2002

(As p as sed b y the Legislative Ass emb ly on th e 27th March , 200 3)

S u g g e s t i on s m a d e b y t h e S a l e s Ta x De p a r t m e n t t o Am e n d t h e

Mah ara sh t ra Va l ue Add ed Tax Ac t , 20 02

[ Por t i ons w h i ch w ere ear l i e r i nc l uded i n t he Mah ara sh t ra

Va l u e Ad d e d T a x , Ac t 2 0 0 2 b u t a r e n ow p r o p o s e d t o b e d e l e t e d ,

a re h i gh l i gh t ed . Por t i ons wh i ch a re now proposed t o be add ed

a re under l i ned ]


2/148C:\DOCUME~1\rajurkar\Desktop\Draft Maharashtra Value Added Tax Act.doc5:34 PM3/19/2005 2

L. A. BILL No. LX OF 2002.

L.A.BILL NO. ------------ OF --------------

A BILL

to consolidate and amend the laws relating to the levy and collection of tax

on the s ale or pu rchas e of certain goods in the State of Maharas htra.

(As p as sed b y the Legislative Ass emb ly on th e 27 th Mar ch 200 3.)

WHEREAS it is exped ient to cons olidate a nd am end the laws relating to the

levy and collection of tax on the sale or purchase of certain goods in the

Sta te of Mah ara sh tra ; it is h ereby ena cted in th e Fifty-third Year of the

Repu blic of In dia as follows:-- WHEREAS it is expedient to consolidate and

amend the laws relating to the levy and collection of tax on the sale or

pu rcha se of certain goods in th e State of Mah ara sh tra: i t is h ereby ena cted

in th e Fifty-third yea r of th e Repu blic of India, a s follows:-

CHAPTER I

PRELIMINARY

1 . (1) This Act ma y be called th e Maha ra sh tra Value Added Tax Act,

2002 .

(2) It extends to the whole of the State of Maharashtra.(3) It shall come into force with effect from the 1st Apri l 2003 . su ch

date as the State Government may appoint by not i f icat ion in the

Officia l Gazet te.

2 . In t h is Ac t, u n le s s t h e c on t ext ot h er wis e r eq u ir es ,

(1) agriculture, with all i ts grammatical variations and cognate

expressions, includes floriculture, horticulture, the raising of crops,

grass or gard en produce, and a lso grazing; bu t does not include

dairy farming, poultry farming, stock breeding, the mere cutting of

wood or grass, gathering of fruit , raising of man-made forests or

rea ring of seedlings or plants ;

Explanation. For the purposes of this clause and clause (4), the

expression forest means the forest to which the Indian Forest Act,

1927 , in i ts appl icat ion to th e State of Mah ara sh tra, appl ies ;

(2) agriculturist means a person who cultivates land personally,



for the p u rpose of agriculture;

(3 ) appo in t ed day m eans t he 1 s t day o f Apr il 2003 ; t he day

appointed by the State Government under sub-section (3) of section

1 .

(4) bu sines s includ es, --

(a) an y service;

(b) any t rade, commerce or manufacture;

(c) an y ad ventu re or concern in the n atu re of service,t rade, commerce or manufacture;

whether or not the engagement in such service, t rade,

commerce, manufacture, adventure or concern is wi th

a m otive to mak e gain or p rofit an d wh ether or n ot an ygain or profit accrues from such service, trade,

commerce, manufacture, adventure or concern.

Explanation. For the pu rpose of this clau se,

(i) the activity of raising of man-made forest or rearing ofseedlings or plants sh al l be deemed to be bu siness;

(ii) any t ransact ion of sale or purchase of capi tal assetspertaining to such service, trade, commerce,

manufacture, adventure or concern shal l be deemed to

be a t ran sa ct ion comp rised in bu siness;

(iii) sa le or pu rch as e of an y goods, th e price of which wouldbe credited or, as the case may be, debited to the profit

and loss account o f the bus iness under the double

entry system of accounting shall be deemed to be

transact ions comprised in business;

(iv) any t ransact ion in connect ion with the commencementor closu re of bu sines s sh all be deem ed to be a

t ran sa ct ion comprised in bu siness;

(5) capital asset shall have the same meaning as assigned to i t ,

from time to t ime, in the Income Tax Act, 1961 , bu t the s aid

express ion s ha ll not includ e jewelry held for person al us e or property



not connected with the b us iness;

(6) Commissioner means the person appointed to be the

Comm ission er of Sa les Tax for the p u rposes of this Act;

(7) to cultivate personally, with i ts grammatical variations and

cognate express ions , means to carry on any agricul tural operat ion

on on es own a ccoun t,

(a) by ones own labou r, or

(b) by th e labou r of one s own fa m ily, or

(c) by servants on wages payable in cash or kind (but not

in crop sha re), or by hired labour u nd er ones p ersonal

supervision or the personal supervision of any member

of ones family.

Explanation I. A widow or a minor or a person who is

subject to any physical or mental disabili ty or is a serving

member of the armed forces of the Union, shall be deemed to

cultivate land personally if i t is cult ivated by her or his

servants or by hired labou r.

Explanation II. In the case of a Hindu Undivided Family,

land shall be deemed to be cultivated personally, if i t is

cu ltivated by an y memb er of su ch family;

(8) dealer means any person who for the purposes of or

consequential to his engagement in or, in connection with or

incidental to or in the course of, his business buys or sells, goods in

the State whether for commission, remunerat ion or otherwise and

includes ,-

(a) a factor, broker, commission agent, del-credere agent or

any other mercantile agent, by whatever name called, who

for the purposes of or consequential to his engagement in

or in connection with or incidental to or in the course of

the business , buys or sel ls any goods on behalf of any

principal or principa ls wheth er disclosed or n ot;

(b) an au ct ioneer, wheth er act ing as an agent or otherwise, orwho organises the sale of goods or conducts the auction of



goods an auctioneer who sells or auctions goods whether

acting as an agent or otherwise or, who organizes the sale

of goods or conducts the auction of goods whether or not

he has the authority to sell the goods belonging to any

principal whether disclosed or not and whether the offer of

the intending purchaser is accepted by him or by the

principal or a n ominee of the p rincipa l;

(c) a non res ident dealer or as the case may be, an agent .residing in the State of a non-resident dealer, who buys or

sells goods in the State for the purposes of or

consequential to his engagement in or in the course of the

business; engagement in or in connect ion with or

incidental to or in the cou rse of, the b u siness .

(d) any society, club or other association of persons whichbu ys goods from, or s ells goods to, its m emb ers;

Explanation. For the purposes of this clause, each of the

following persons, bodies and entit ies who dispose of any

goods including goods as unclaimed or confiscated or as

unserviceable or as scrap, surplus, old, obsolete or

discarded material or waste products whether by auct ion

or otherwise, directly or through an agent for cash, or for

deferred payment. or for any other valuable consideration

shall , notwithstanding anything contained in clause (4) or

any other provision of this Act, be deemed to be a dealer,

namely:-

(i) Customs Department of the Government of Indiaad minis ter ing the Cu stoms Act , 1962;

(ii)

Departments of Union Government and anyDepartmen t of an y State Governm ent ;

(iii)Local a u thorit ies;(iv)Port Trusts;(v) Railway Administration as defined under the Indian

Railways Act, 1989 1989 and Konkan Railway



Corpora tion Limited;

(vi)Incorporated or unincorporated societies, clubs orother a ssociat ions of persons ;

(vii)Insurance and Financial Corporat ions , ins t i tut ions orcompanies and Banks included in the Second

Sched u le to the Reserve Bank of Ind ia Act, 1934 ;

(viii) Maharashtra State Road Transport Corporat ionconst i tu ted u nd er the Road Tran sport

Corpora tion Act, 195 0;

(ix)Shipping and construct ion companies , Air TransportCompanies, Airlines and Advertising Agencies;

(x) Any other corporation, company, body or authorityowned or consti tuted by, or subject to administrative

control, of the Central Government, any State

Govern men t or an y local au thority: 30

Provided that, in case of persons, bodies or enti t ies

falling within entries (i) to (v), the liability as a dealer

shall be restricted to such disposal only.

Explanation- For the purposes of this clause, each of

the following persons, bodies and entit ies who sell any

goods whether by auction or otherwise, directly or

through an agent for cash, or for deferred payment , or

for any other valuable consideration, shall ,

notwithstanding anything contained in clause (4) or

any other provision of this Act, be deemed to be a

dea ler, na mely:-

(i)

Customs Department of the Government of Indiaad minis ter ing the Cu stoms Act , 1962;

(ii) Departments of Union Government and anyDepartmen t of an y State Governm ent ;

(iii) Incorporated or unincorporated societies, clubs orother a ssociat ions of persons ;



(iv) Insurance and Financial Corporat ions , ins t i tut ionsor companies and Banks included in the Second

Sched u le to the Reserve Ban k of India Act, 1934 ;

(v) Local au thorit ies;(vi)Maharashtra State Road Transport Corporat ion

const i tu ted u nd er the Road Tran sport

Corpora tion Act, 195 0;

(vii)Port Trusts;(viii)Tru sts , b oth private a nd p u bl ic(ix) Railway Administration as defined under the

Indian Railways Act, 1989 and Konkan Railway

Corporation Limited;

(x) Shipping and construct ion companies , ai rt ransport companies , ai r l ines and advert is ing

agencies;

(xi) an y other corporat ion, compa ny, body or a uth orityowned or consti tuted by, or subject to

administrative control, of the Central Government,

an y State Governm ent or an y local auth ority:

Exception I. An agriculturist who sells exclusively

agricul tural produce grown on land cul t ivated by

him personally, shall not be deemed to be a dealer

within the meaning of this clause.

Exception II. An educational insti tution carrying

on the activity of manufacturing, buying or sell ing

goods, in the performance of i ts functions for

achieving i ts objects, shall not be deemed to be a

dealer within the meaning of this clause.

Exception III. A transporter holding permit for

transport vehicles (including cranes) granted under

the Motor Vehicles Act, 1988, which are used or

adopted to be used for hi re or reward shal l not be

deemed to be a dealer within the meaning of this



clause in respect of sale or purchase of such

transport vehicles or parts . components or

acces sories thereof.

(9) declared goods means declared goods as defined, from time to

time, in the Cen tra l Sales Tax Act, 1956 ;

(10)document includes writ ten or printed records of any sort , t i t le

deeds and data stored electronically in whatever form; "document"

includes electronic record as defined in the Information Technology

Act, 20 02;

(11) earlier law means any of the following laws, that is to say,(i) The Bombay Sales of Motor Spirit Taxation Act, 1958,(ii) The Bom ba y Sales Tax Act, 195 9,(iii) The Maharashtra Purchase Tax on Sugarcane Act ,

1962 .

(iv) The Mah ar as htr a Sa les Tax on th e Tra ns fer of the Rightto us e an y goods for an y Pu rpose Act , 1985 a nd

(v) The Maharashtra Sales Tax on the Transfer of Propertyin Goods involved in the Execution of Works Contract

(Re-enacted) Act, 1989,

each of them as amended, from t ime to t ime, and includes

ena ctments which ha ve val idated a nything done or omitted to

be done u nder an y of the a bove-ment ioned laws;

(12) goods means every kind of moveable property not being

newspapers , act ionable claims, money, s tocks , shares , securi t ies or

lottery t ickets a nd inclu des l ive stocks , growing crop, gra ss an d trees

an d plan ts inclu ding the produce thereof including property in su ch

goods attached to or forming part of the land which are agreed to be

severed before sale or u nd er the con tra ct of sa le;

(13) importer means a dealer who brings any goods into the

State or to whom any goods are dispatched from any place outs ide

the State;

(1 4) legal representative shall have the meaning assigned to i t in



clau se (11) of sect ion 2 of the Cod e of Civil Procedu re, 1 90 8;

(15) manufacture, with all i ts grammatical variations and

cognate expressions includes producing, making, extracting,

altering, ornamenting, finishing or otherwise processing, treating or

ad apt ing any goods;

(16) non-resident d ealer mea ns a dealer who effects pu rchas es or

sa les of an y goods in the S tate, b u t who ha s n o fixed or regular p lace

of bu siness or res idence in th e State;

(16) non-resident dealer means a dealer who effects purchases or

sa les of an y goods in the S tate, b u t who ha s n o fixed or regular p lace

of bu siness in th e State;

(17) person includes an individual, any State Government, the

Central Government, any company or society or club or association

or body of in dividua ls wheth er incorpora ted or n ot, an d a lso a Hindu

Undivided Family, a firm and a local authority and every artificial

juridical per son not falling within an y of the preceding des criptions;

(18) place of business includes a warehouse, godown or other

place where a d ealer s tores his goods an d a ny place where the dea ler

keeps h is books of accoun ts ;

(19) prescribed means prescribed by the rules or by any

notification;

(20) purchase price means the amount of valuable consideration

paid or payable by a person for any purchase made including any

sum charged for anything done by the seller in respect of the goods

at the t ime of or before delivery thereof, other than the cost of

ins u ran ce for t ran si t or of ins tal lat ion, when su ch cost is s epara tely

charged;

Explana tion I. The amount of duties levied or leviable on the goods

u nd er the Centra l Excise Act , 1944, or the Cu stoms Act , 1962 or the

Bombay Prohibit ion Act, 1949 shall be deemed to be part of the

purchase price of such goods, whether such dut ies are paid or

payable by or on behalf of the seller or the purchaser or any other

person .



Explanation II. Purch as e price shal l not inclu de ta x paid or pa yable

by a person in respect of su ch pu rchas e.

Explanation III. Purchase price shal l include the amount paid by

the purchaser by way of deposi t whether refundable or not which

has been paid whether by way of a separate agreement or not , in

connection with or incidental or ancil lary to, the said purchase of

goods;

Explana tion IV- Wher e the p u rch as e is effected by way of tra ns fer of

property in goods (whether as goods or in some other form) involved

in the execut ion of a works contract , purchase price shal l be taken

to mean, the total considerat ion for the works contract and for the

purpose of levy of tax, purchase price shall be taken to mean, the

price as ma y be determined in a ccordan ce with th e ru les , by mak ing

such deduction from the total consideration for the works contract

as ma y be prescribed.

(21) registered dea ler mea ns a d ealer registered u n der th is Act:

(22 ) res a le m eans a s a l e o f pu rchas ed goods

(i) in th e sa me form in which th ey were pur chas ed, or(ii) without doing anything to them which amounts to , or

resu l ts in , a m an ufacture ,

an d th e word resell sh all be cons tru ed a ccordingly;

(23) ru les mea ns the ru les ma de u nd er this Act ;

(24) sa le mea ns a s ale of goods m ad e within the Sta te for cas h or

deferred payment or other valuable considerat ion hut does not

include a mortgage, hypothecation, charge or pledge; and the words

sell, buy and purchase, with all their grammatical variations

an d cognate express ions , sh al l be cons trued accordingly;

Explanation,-Forthe pu rposes of this clau se,

(a) a sale within the State includes a sale determined to be

inside the State in accordance with the principles

formu lated in section 4 of the Centra l Sales Tax Act, 195 6;

(b) (i) the transfer of property in any goods, otherwise than in



pursuance of a contract , for cash, deferred payment or

other valuable consideration;

(ii) the tra ns fer of property in goods (wheth er a s goods or in

som e oth er form ) involved in th e execu tion of a works

contract ;

(iii) a delivery of goods on hire-purchase or any system of

payment by instalments ;

(iv) the t ransfer of the r ight to use any goods or any

pu rpose (wh ether or not for a specified p eriod) for cas h,

deferred payment or other valuable consideration;

(v)the supply of goods by any association or body ofpersons incorporated or not , to a member thereof or

other valuable consideration;

(vi) the supply, by way of or as part of any service or inany other manner whatsoever, of goods, being food or

an y other ar t icle for hu ma n cons u mp tion or an y drink

(whether or not intoxicating), where such supply or

service is made or given for cash, deferred payment or

other valuable consideration:

(vii) every disposal of goods referred to in the Explanationto clause (8) for cash, deferred payment or other

valuable consideration, shall be deemed to be a sale:

(25) sa le p r ice means the amoun t of va lua b le cons idera t ion paid

or payable to a dealer for an y sale mad e including any su m charged

for anything done by the seller in respect of the goods at the t ime of

or before delivery thereof, other th an the cost of insu ra nce for tra n sit

or of installation, when such cost is separately charged.

Explanation 1. The amount of duties levied or leviable on

goods under the Central Excise Act, 1944 or the Customs Act,

1962 or the Bombay Prohibit ion Act, 1949, shall be deemed to

be part of the sale price of such goods, whether such dut ies

are paid or payable by or on behalf of the seller or the

pu rchaser o r an y other person .



Explanation II. Sale price shall not include tax paid or

pa yab le to a d ealer seller in resp ect of su ch s ale.

Explanation III. Sale price shall include the amount

received b y the seller by way of deposit , wheth er r efu nd ab le or

not, which has been received whether by way of a separate

agreem ent or n ot, in con nection with or incidenta l or an cillar y

to, the said sale of goods;

Explana tion IV: Where the sale is effected by way of transfer of

property in goods (where as goods or in some other form)

involved in th e execution of a works cont ra ct, sale price sh all

mean the total considerat ion for the works contract and for

the purpose of levy of tax, sale price shall be taken to mean,

the price as may be determined in accordance with the rules ,

by ma king su ch dedu ction from the total considera tion for

the works contract as m ay be prescribed

Explanation V: Where a dealer is holding liquor vendor licence

in Form FL II or in Form CL/ FL/ TOD-III issu ed u nd er the

Bomba y Prohibit ion Act, 194 9 th e sa les pr ice in resp ect of the

liquor sold by him at retail shall be deemed to be the

Maximu m Retail Price printed on th e conta in er for the l iqu or.

(26) Sched u le mea ns the Schedule a Schedule appended to this

Act;

(27) service means any service as may be notified by the State

Govern men t, from time to t ime, in the Official Gaze tte;

(28) the State mea ns the State of Mah ara sh tra;

(29) tax means a sales tax or purchase tax, leviable or as the

case may be, payable, under this Act and includes any amount

payable by way of composition;

(30) tax-free goods means goods against which the rate of sales

tax is shown to be NIL in the Schedule and taxable goods means

goods other than tax free goods; "taxable goods" means goods other

than those on the sale of which no tax is payable under sect ion 5,

an d ta x-free goods mean s goods other th an taxable goods;



(31) Tribunal means the Maharashtra Sales Tax Tribunal

const i tuted u nd er sect ion 11;

(32) turnover of purchases means the aggregate of the amounts

of purchase price paid and payable by a dealer in respect of any

purchase of goods made by him during a given period, after

dedu ct ing the am oun t of,

(a) purchase price, if any, refunded to the dealer by the seller in

respect of any goods purchased from the sel ler and returned to

him within the prescribed period; and

(b) deposit , i t any, refunded in the prescribed period to the dealer

by the s eller, in respect of an y goods pu rch as ed by the dea ler.

Explanation I. In respect of goods delivered on hire-purchase

or any system of payment by instalment or in respect of the

transfer of the right to use any goods for any purpose (whether

or not for a specified period) the amounts of purchase price paid

or payable during a given period shal l mean the amounts paid

or, as the ca se ma y be, du e and payable du ring the sa id Period

Explanation II. the amounts of purchase price in respect of

goods returned and deposi ts refunded within the prescribed

t ime shal l he deducted from the turnover of purchases in the

period in which th e corresponding purch as es are made;

(33) turnover of sales means the aggregate of the amounts of sale

price received and receivable by a dealer in respect of any sale of

goods m ad e du ring a given per iod a fter dedu cting th e am oun t of

(a) sale price, if any, refunded by the seller, to a purchaser, in

respect of any goods purchased and returned by the

pu rcha ser within th e prescribed period; and

(b) deposit , if any, refunded in the prescribed period, by the

seller to a purchaser in respect of any goods sold by the

dealer.

Explanation I. In respect of goods delivered on hire-

purchase or any system of payment by instalment or in

resp ect of the tra ns fer of the r ight to u se a ny goods for an y



purpose (whether or not for a specified period) the

am oun ts of sale price received or receivab le du ring a given

period shal l mean the amounts received or as the case

ma y be, du e and payable during the said period;

Explanation II. The amounts of sale price in respect of

goods returned and deposi ts refunded within the

prescribed t ime shal l be deducted from the turnover of

sales in the period in which the corresponding sales are

ma de; and

Explanation III. Where the registration certificate is

cancelled, the amounts of sale price in respect of sales

made before the date of the cancellation order, received or

receivable after such date, shall be included in the

tu rn over of sa les d u ring a given p eriod;

(34) vehicle includes a goods carriage as defined in the Motor

Vehicles Act, 19 88; a nd "vehicle" mea ns a goods ca rriage as defin ed

in the Motor Vehicles Act, 1988; and

(35 ) yea r m eans t he finan c ia l yea r .


15/148



sales or turnover of purchases again first exceeds the relevant l imit

sp ecified in s u b-section (4) or, as the case may be, unt i l he becomes

liable to pay tax under sub-section (7 ), (8) or (9).

(4) For the pu rposes of this section, the l imits of tu rn over sh all be as

follows

(a)Limit of turnover Rs. 1,00,000.in the case of a dealer, who is an

importer, an d th e valu e of taxab le goods s old or pu rch as ed by him

du ring the year is not less th an Rs. 10,000.

(b)Limit of turnover Rs. 10,00,000.in any other case, where the

value of taxab le goods s old or pu rch as ed by him du ring the year is

not less tha n Rs. 10,000.

(5) For the purpose of calculating the limit of turnover for liability to

tax,

(a) except as otherwise expressly provided, the turnover of allsales or , as the case may be, the turnover of al l purchases shal l

be taken, whether such sales or purchases are of taxable goods

or not;

(b) the turnover shal l include al l sales ar id purchases made bythe dealer on his own account , and also on behalf of his

principals whether disclosed or not;

(c) in the case of an auctioneer, in addition to the turnover, if an y, referred to in clau ses (a) an d (h ), the tu rn over sh all also

include the price of the goods auctioned by him for his principal,

whether the offer of the intending purchaser is accepted by him

or by the principal or a nominee of the principal, if the price of

su ch goods is received by h im on beh alf of his p rincipa l;

(d)in the case of an agent of a non-resident dealer, in addition to

the turnover, if any, referred to in clause (a), (b) or (c), the

turnover shal l also include the sales or Purchases of the non-

residen t dea ler effected in th e Sta te,

(6)Notwithstanding anything contained in any contract or any law for

the t ime being in force, but subject to the provisions of this Act, any

per son covered b y su b-clau ses (a), (h ) an d (c) of cla u se (8) of section 2


17/148



Explanation.For the purposes of this sub-sect ion, the express ions

turnover of sales, turnover of purchases and importer shall

have the respect ive meanings ass igned to them under the relevant

ear lier laws.

(2) A dealer to whom s u b-section (1 ) does not apply an d whose tu rnover,

of al l sales mad e, du ring th e year commen cing on th e ap pointed d ay

or any year subsequent thereto, first exceeds the relevant l imit ,

specified in sub-section (4), shall , until such l iabil i ty ceases under

sub-sect ion (3 ), be liable to pay tax under this Act with effect from

the 1st day of April of the said respective year:

Provided that, a dealer shall not be l iable to pay tax in respect of

such sales as take place during the period commencing on the 1st

day of April of the said respective year upto the t ime when his

turnover of sales , as computed from the 1 s t day of April of the said

respective year, does not exceed the relevant l imit applicable to him

under sub-section (4).

(3) Every dealer who has become liable to pay tax under this Act, shallcontinue to be so l iable until his registration is duly cancelled; and

upon such cancel lat ion his l iabi l i ty to pay tax, other than tax

already levied or leviable, shall remain ceased until his turnover of

sales again, first exceeds the relevant l imit specified in sub-section

(4) or, as the case may be, until he becomes l iable to pay tax under

sub-sect ion (7 ), (8) or (9).

(4) For the purposes of this section, the l imits of turnover shall be asfollows

(a) Limit of turnover Rs.

1 ,00,000.

in the case of a dealer, who is an

importer, and the value of taxable

goods sold or purchased by himduring the year is not less than Rs.

1 0 ,0 0 0 / -.

(b) Limit of turnover Rs.

5 ,00,000.

in any other case, where the value of

taxable goods sold or purchased by

him during the year is not less than

Rs. 10,000.



(5) For the purpose of calculating the limit of turnover for liability to

tax,

(a) except as otherwise expressly provided, the turnover of allsa les and purchases shal l be t aken , whether such sa les o r

pu rcha ses a re of taxable goods or n ot ;

(b) the tu rnover sh al l include al l sales m ade b y the dealer on h isown account, and also on behalf of his principals whether

disclosed or n ot;

(c) in the case of an auctioneer, in addition to the turnover, if any, referred to in clauses (a) and (b), the turnover shall also

include the price of the goods auctioned by him for his principal,

whether the offer of the intending purchaser is accepted by him

or by the principal or a nominee of the principal, if the price of

su ch goods is received by h im on b eha lf of his p rincipa l;

(d) in the case of an agent of a non-resident dealer, in addition tothe turnover, if any, referred to in clause (a), (b) or (c), the

turnover shall also include the. Sales of the non-resident dealer

effected in th e Sta te.

(6) Notwithstanding anything contained in any contract or any law forthe t ime being in force, bu t s u bject to the pr ovisions of this Act, an y

per son covered b y su b-clau ses (a ), (b), or (c) of clau se (8) of sec tion 2

shall be l iable to pay tax under this Act, whether or not the principal

is a dealer and whether or not such principal is l iable to pay tax

u nd er this Act an d wheth er or not th e principals ar e disclosed.

(7) Any person who at any t ime after the appointed day becomes l iableto pay tax under the Central Sales Tax Act, 1 9 5 6 , but who is not

liable to pay tax under the other provisions of this section shall be

liab le, to pay tax on th e sa les effected by him on an d from the da y on

which he becomes so l iable to pay tax under the Central Sales Tax

Act. 1956 and accordingly nothing contained in the proviso to sub-

section (2 ) sh all ap ply to him in an y year.

(8) Where a dealer l iable to pay tax under this Act is succeeded in thebu siness by an y person in the m an ner described in claus e (a) of su b-

section (1 ) or sub-section (4) of sect ion 44, then such person shal l ,



notwithstanding anything contained in this section, be l iable to pay

tax on the sales of goods effected by him on and after the date of

su ch s u ccession a nd accordingly nothing contained in th e proviso to

sub-sect ion (2 ) sh all ap ply to him in an y year.

(9) Any person who is not l iable to pay tax under the foregoing

provisions of this section, but has been voluntarily registered under

the provisions of this Act, shall be l iable to pay tax from the date of

effect of the certificate of registration duly granted to him and

accordingly nothing contained in the proviso to sub-section (2) shal l

ap ply to him in an y year .

4 . Sub ject to t he p rovis ions of t h is Ac t and ru le s , t he re s ha ll be pa id by

every dealer or, as the case may be, every person, who is l iable to pay tax

under this Act, the tax or taxes leviable in accordance with the provisions

of this Act an d ru les.

5 . S u b je ct to th e p rovis ion s o f t h is Ac t, a n d t h e ru le s , t h er e s h a ll b e

levied a s a le s t ax on t he t u rnover of s a le s o f goods s pecified in t he

Schedu le at the ra te set ou t against each of them in th e said Schedu le:

Provided that, so far as the goods fall ing under Part F of the Schedule are

concerned, the ra te of tax sh al l be a s n ot ified by the Governm ent a nd su ch

notification s ha ll be d eemed to form a pa rt of th e sa id Sched u le

Provided further that , such rate of tax shal l not at any t ime he more than

15 p er cent . of the value of su ch goods .

5. Subject to the other provisions of this Act, and subject to the conditions

or exceptions, if any, set out against each of the goods specified in column

3 of Schedu le A, no ta x sh all be pa yable on the sa les of an y goods sp ecified

in colu mn 2 of tha t sch edule.

6 . (1) Where a dealer, purchases any goods specified in the Schedule from a

person, who is not a dealer, or a dealer who is not registered dealer,

then there shal l be levied, a purchase tax on the turnover of such

purchases at the rate set out against each of such goods in the

Schedule;

(2) Where any poison or a dealer has purchased any goods, whether

before or after the appointed day under certificate or declaration

given by him under any of the provisions of any earlier law or this



Act or the rules or notifications pertaining to any earlier law or this

Act, and the conditions, recitals or undertakings of such certificate

or declarat ion are not complied with, then, notwithstanding the

repeal of the said earlier laws, such person or dealer shall be l iable

to pay purchase tax on the purchase price of such goods and the

purchase tax shal l be levied at the rate set out against each of such

goods in th e Schedu le;

Provided that , i f any quest ion arises as to whether the purchase

price of goods purchased under a certificate or declaration as

aforesaid is or is not l iable to be included in the turnover of

purchases of a person or a dealer under this sect ion, the burden of

proving that i t shall not be l iable to be so included shall be upon

su ch pers on or , as the case ma y be, the dealer .

(3 ) Wher e a dea ler, liable to pa y tax un der th is Act,

(i) (a) dies, or

(b) transfers or otherwise disposes of his business in

whole or in part , or effects any change in the

ownersh ip ther eof, or

(c) is a firm, company, society or other association of

persons, or a trust , which is dissolved, l iquidated,

wou nd up , or revoked, or

(d) i s a Hindu Undivided Family, and there is a part ial

pa rti t ion or pa rti t ion of the s aid family, or

(e)discont inu es h is bu sines s; or

(ii) has his certificate of registration cancelled on the ground

that he is not l iable to pay tax; and the stock of goods held

by such dealer immediately before any of the aforesaidevents occur, inclu des taxable goods p ur cha sed by him on a

certificate or declaration given by him under any of the

provisions of any earlier law or this Act or the rules or

notifications pertaining to any earlier law or this Act, then,

there sh al l be levied a p u rchas e tax on the pu rcha se price of

such taxable goods at the relevant rate of purchase tax



applicable thereto as if such dealer had become liable to pay

pu rcha se tax on such goods un der su b-sect ion (2).

6 . There shall be levied a sales tax on the turnover of sales of goodsspecified in colu mn 2 in th e sch edules B, C, D or , as the ca se m ay be,

E at the rates set out against each of them in column 3 of therespective schedule.

7 . Where any goods are sold or purchased and such goods are packedin a ny ma terials the ta x sh al l be leviab le on the sa les or pu rcha ses of such

packing materials , whether such materials are separately charged for or

not, at the same rate of tax, if any, at which tax is payable on the sales or

purchases , as the case may be, of the goods so packed. Where any goods

are sold and such goods are packed in any material , the tax shal l beleviable under section 6 on the sales of such packing material , whether

su ch m aterials a re separa tely cha rged for or not , at th e sam e rate of tax, if

an y, at wh ich ta x is pa yable on th e sales of the goods so pack ed.

8 . (1) Nothing in this Act or the rules or the notifications shall bedeemed to impose or authorise the imposition of a tax or deduction of ta x

at source on an y sa le or pu rcha se of an y goods, where su ch sale or

pu rchase t akes p lace ,

(a) (i) outside the State ; or

(ii) in th e cours e of the import of the goods into th e terri tory of

Ind ia, or the export of the goods out of su ch terri tory ; or

(b) in the course of inter-State t rade or commerce, and the

provisions of this Act and the said rules and notificationssh al l be read an d constru ed accordingly.

Explanation. For the purpose of this section, whether a sale

or pur cha se takes place- ou ts ide the Sta te, or in the cour se of

the import of the goods into the territory of India or export of

the goods out of such terri tory, or in the course of inter-State

t rade or commerce, shal l be determined in accordance with



the principles specified in sections 3. 4 and 5 of the Central

Sa les Tax Act, 195 6.

(2) In accordance with the notification issued by the CentralGovernment in exercise of i ts powers under section 3 of the

Foreign Air craft (Exemption from Taxes and Duties on Fuel) Act.

2002, no tax shall be levied on the sales of fuel and lubricants

which are filled into receptacles forming part of any aircraft

registered in a country other than India, if

(a) the sa id coun try is a pa rty to the Convent ion on Intern at iona land Civil Aviation, 1944 ; and

(b) the said country has entered into an Air Services agreementwith Ind ia; an d

(c) the ai rcraft i s operat ing on a scheduled or non-scheduledservice to or from India.

(3) Tax on the sales of goods made by any unit in the SpecialEconomic Zone or by an Export Oriented Unit to any other unit in

the special Economic Zone or , as the case may be, another Export

Oriented Uni t sha ll be exempted from tax, su bject to such terms an d

conditions, as may be specified by the State Government, by general

or special order issued in this behalf. The Sta te Governm ent m ay by

general or special order published in the Official Gazette in this

behalf , and subject to such condi t ions and res t r ict ions as may be

specified in the said order, exempt from payment of tax any class or

classes of sales of goods specified in the said order when made by

any uni t in the Special Economic Zone or any hundred percent

export oriented unit or any unit in the Software Technology Park or

an y un it in th e Electronic Hardwa re Techn ology Park .

Explanation.-- For the pu rposes of this su b-sect ion, --

(a ) a unit in the Special Economic Zone means a unit si tuated in azone which the Central Governm ent or , as th e case ma y be the

State Government, may, by notification in the Official Gazette,

specify as a Special Economic Zone and includes a Developer of



the Special Economic Zone as may be approved by the State

Governm ent or , as th e case ma y be, the Central Governm ent , an d

which h as been certified in th is beha lf by the Comm issioner .

(b) a unit in the Software Technology Park means a unit set up inaccordance with the Software Technology Park Scheme notified

by the Government of India in the Ministry of Commerce and

Industry , and which has been cert i f ied in this behalf by the

Commissioner.

(c)a unit in the Electronic Hardware Technology Park means auni t set up in accordance with the Electronic Hardware

Technology Park Scheme notified by the Government of India in

the Minis t ry of Commerce and Industry, and which has been

certified in this b eha lf by th e Comm issioner .

(d)a hu nd red per cent , export oriented u ni t mea ns a u ni t whichha s been app roved as a h u nd red per cent . export oriented un it by

the Board app ointed in this beh alf by the Central Governm ent in

exercise of the power conferred by section 14 of the Industries

(Development and Regulation) Act,1951 and the rules made

u nd er tha t Act , an d which h as been cert i fied in th is b eha lf by the

Commissioner.

(4) Where any registered dealer has effected any sale of goods inthe course of, export out of the territory of India, or where any

registered dealer has effected any sale of goods to any unit in any

Special Economic Zone or to any Export Oriented Unit , such

registered dea ler s ha ll be entit led to claim a r efu n d of the tax, if an y,

paid on the purchases of the corresponding goods and the refund

shall be paid as prescribed, within a period of ninety days from the

end of the period for which the said dealer is required to file a

return. The State Government may by general or special order



published in the Official Gazette, on this behalf and subject to such

conditions and restrictions as may be specified in the order, provide

for exemption from payment of the whole of tax in respect of any

class or classes of sales of goods effected by a unit holding a

Certificate of Entit lement as ,defined under section 88, to whom

incentives are granted under any Package Scheme of Incentives, by

way of exemption from pa ymen t of tax.

9 . (1)The State Government may, from time to t ime, by notification inthe Official Gazette,-

(a ) amend the Schedule by adding or modifying or deletingany entry therein and thereupon the Schedule shal l s tand

amended accordingly for the purpose of levy of tax;

(b) provide for reducing or enhancing the rates of tax or forspecifying the rates of tax where NIL rates are specified, and

thereupon the Schedule shal l s tand amended for the purposes of

th is Act:

Provided that, no notification which provides for enhancement of

rate of tax shall provide for an enhancement exceeding one per

cent . :

Provided further that, no notification which provides for

enhancement of rate of tax shall be issued after the expiry of the

period of two years from the appoin ted day and no t more than

one such notification shall be issued within such period.

(1) The State Government may from time to time, by notification in

the Official Gazette, amend any Schedule by modifying or

deletin g or ad ding an y entr y ther ein or pa rt ther eof an d

thereupon the Schedule shal l s tand amended accordingly for al l

the pu rpos es of the Act including th e levy of tax.

(2) The provisions contained in su b-s ection (5) subsection (6) of

sect ion 83 regarding rules made by the State Government shal l

apply mutatis mutandis to any not i f icat ion issued under sub-

section (1) as they apply to the rules made by the State

Government .



CHAPTER III

SALES TAX AUTHORITIES AND TRIBUNAL

1 0 . (1) For carrying out the purposes of this Act, the State Governmentsh all appoint a n officer to b e called th e Comm iss ioner of Sales Tax.

(2) Likewise, the State Government may appoint such number of Add itiona l Comm issioner s of Sa les Tax, an d s u ch n u mb er of,-

(a) J oint Comm issioners ,(b)Senior Deputy Commissioners,(c) Deputy Comm issioners ,(d)Assis tan t Commissioners ,(e) Sales Tax Officers, and(f) other off icers and persons, and give them such

designa t ions , as th e Governm ent deems n ecessary .

(3) The Commissioner shall have jurisdiction over the whole of the

Sta te an d a n Additiona l Comm issioner of Sales Tax or Additiona l

Commissioners of Sales Tax, if any appointed, shall have

jurisdiction over the whole of the State, or such area or areas as

the State Government may, by notification in the Official

Gazette, sp ecify. All oth er officers sh all ha ve jurisd iction over th e

whole of the State or over such local areas as the Commissioner

ma y, by notification in the Official Gazette, specify.

(4) The Commissioner shall have and exercise all the powers and

perform all the duties, conferred or imposed on the

Commissioner by or under this Act, and the Additional

Commissioner or Additional Commissioners of Sales Tax, if any

be appointed, shall , save as otherwise directed by the State

Government otherwise directed by the Commissioner by

notification in th e Official Gazette, have and exercise, within his

or their jurisdiction, all the powers and perform all the duties,

conferred or imposed on the Commissioner, by or under this

Act.

(5) A J oint Com missioner sh all, save as other wise d irected b y the



Commissioner by notification in the Official Gazette, have and

exercise, in the area within his jurisdiction, all the powers, and

shall perform all the duties, conferred or imposed on the

Commissioner, by or under this Act.

(6) Senior Deputy Commissioners , Deputy Commissioners ,Assistant Commissioners, Sales Tax Officers, other officers and

persons shall , within their jurisdiction, exercise such of the

powers and perform such of the dut ies of the Commissioner

under this Act , as the Commissioner may, subject to such

condi t ions and res t r ict ions as he may, by general or special

order impose, delegate to them either generally, or as respects

any particular matter or class of matters by an order notified in

th e Official Gazette

(7) The State Government may, subject to such res t r ict ions andconditions, if any, as i t may impose, by notification in the

Official Gazette, delegate to the Commissioner the powers (not

being th e powers of the ap pointm ent of Add itiona l Comm issioner

or J oint Comm issioner ) conferred on th e Govern men t by sub -

section (2 ).

(8) No person shall be entit led to call in question in anyproceeding, any exercise of power including the terri torial

jurisdiction of an y officer or pers on a ppointed u nd er s ub -section

(2), after the expiry of the period of thirty days from the date of

receipt by such person of any communication, intimation, order

or not ice un der this Act or un der a ny earl ier law, issu ed by su ch

officer or person. If within the period aforesaid, an application in

writing in the prescribed form raising an objection as to such

exercise of power by or the jurisdiction of any such officer or

person is made to such officer or person, he shall refer the

question to the Commissioner, who shall , after giving the

appl icant a reasonable opportuni ty of being heard, make an

order determining the quest ion. The order made by the

Comm iss ioner s ha ll be final.

(9) All officers and persons appointed under sub-section (2) shallhe subordinate to the Commissioner; and the subordinat ion of



officers other than the Commissioner, and of persons, amongst

thems elves sh al l be su ch as ma y be prescribed.

(10) The Commissioner may, from time to t ime, issue suchins t ruct ions an d direct ions a s h e ma y deem fit to the a uth orit ies

and officers subordinate to him for carrying Out the purposes of

this Act , and such authori t ies and off icers shal l observe and

follow su ch ins tru ctions an d directions of the Com missioner:

Provided that , no such inst ruct ions or di rect ions shal l be

issued,

(i)so as to require any authori ty to pass a part icular orderor to dispose of a p art icular case in a par t icular m an ner;

or

(ii) so as to interfere with the discretion of the appellate

au thorit ies in an y part icular case:

Provided further that, if the Commissioner is of the

opinion that i t is necessary in the public interest so to

do, he may cau se su ch inst ru ct ions an d direct ions to be

published and circulated for general information.

11 . (1) Ther e sh all be a Tribu na l to be ca lled the Mah ar as htr a Sales TaxTribunal. The Tribunal shall consist of such number of members

appointed by the State Government as the Government may,

from time to t ime, consider necessary for the proper discharge of

the functions conferred on the Tribunal by or under this Act.

(2) The State Government shall appoint one of the members of the

Tribunal to be the President thereof on the basis of his seniority

in the J u dicial Service.

(3) The

qualification and the terms of office of the members of theTribu na l sh al l be su ch as m ay be prescribed, and a memb er sha ll

hold office for such period as may be prescribed or as the State

Govern men t ma y, by special order in his case, specify.

(4) Any vacancy of the member of the Tribunal shall be filled up by

the State Governm ent a s soon as pract icable.

(5) The functions of the Tribunal may, be discharged by any of the



members si t t ing either singly, or in Benches of two or more

mem bers , as ma y be determined by the President .

(6) If the members of a Bench are divided, the decision shall be thedecision of the majority if there be a majority; but if the

mem bers a re equa lly divided, th ey sha ll Sta te the p oint or points

on which they differ, and the case shall be referred by the

President of the Tribunal for hearing on such point or points to

one or more of the other members of the Tribunal, including

himself and such point or points shal l be decided according to

the majority of the members of the Tribunal who heard the case

inclu ding thos e who first hea rd i t .

(7) During the course of any proceedings, if a Bench is of theopinion that any earlier decision of any Bench on any point or

issu e requires reconsiderat ion, or wh ere su ch Bench is inclined

to take a decis ion on any point or issue different than the

decis ion earl ier taken b y any Bench then su ch Bench sh al l refer

the point or the issue to the President for formation of a larger

Bench. The president shal l thereupon form a larger Bench of

su ch mem bers of the Tribu na l as he ma y determine. Such larger

Bench shall , as far as practicable, be presided over by the

President. The point or the issue shall be decided according tothe decision of the majority of the members consti tuting such

larger Bench. Where any member including the President is

sit t ing singly he may in similar circumstances refer the matter

to the President for forma tion of a lar ger Bench .

(8) The Tribunal shall have power to award costs Subject to suchcondi t ions and l imitat ions as may be prescribed, the Tribunal

shall have power towards costs after giving the dealer or person,

as the case may be, a reasonable opportuni ty of being heard,

and the amount of such costs shal l be recoverable from the

dealer or person ordered to pay the same in the manner

pr ovided in th is Act for recovery of a rrea rs of tax.

(9) The Tribunal shall , with the previous sanction of the StateGovernment, for the purpose of regulating i ts procedure

including the place or places a t which the Tribu na l, the Benches



or the members thereof shal l s i t and dispose of i t s business ,

ma ke regu lations con sistent with th e provisions of this Act ru les

an d n otifications.

(10)The regulat ions made under sub-sect ion (9) shal l be publ ishedin th e Official Gazette.

12 . (1)The Comm issioner ma y.(i) on receipt of any complaint in the prescribed form from any

dealer or person liable to pay tax under this Act or from any

authori ty appointed under sect ion 10, that any part icular

authori ty has made in the proceedings of such dealer or

person a false or vexat ious order or has taken any act ion

under this Act vindictively or has vindictively not acted within

a reasonable t ime upon any application provided for by or

under this Act, or

(ii) on receipt of a report from the Tribunal that, a particularauthority has knowingly or willfully under-assessed any

dealer or person or has passed a false or vexat ions order or

has taken any action under this Act vindictively, or has

vindictively not acted any reasonable t ime upon any

application provided for, by or u nd er this Act, or

(iii) on his own motion, if he has reason to believe that anyau thor ity ha s pas sed su ch order o r t aken su ch ac t ion or has

made such under-assessment , o r has no t so ac ted upon any

applicationwithin three months of the receipt of reportwithin

three months ini t iate appropriate enquiry or act ion in the

mat ter , and i f in his opinion, prima facie case against such

particular authority or officer exists, he may init iate

appropriate act ion against such authori ty under theMaharashtra Civil Services (Conduct) Rules, 1979, or the

Maharashtra Civil Services (Discipline and Appeal) Rules.

1979, or any other relevant rules for the t ime being in force.

The Commissioner shall within one year of the receipt of the

complaint referred to in clause (i) or report referred to in

clause (i i), send an intimation to the person or dealer making



the s aid complaint or to the Tribu na l, s ta t ing th erein whether

he has decided to ini t iate or has ini t iated any act ion against

the concern ed a u thority or officer.

(2) The Commissioner may, on finding that any complaint made by

any dealer or person is false or mischievous or has been made

with a view to defeating the application or purposes of this Act, or

within one year within one year of the receipt of the complaint,

after giving the person or the dealer a reasonable opportunity of

being heard, impose on him such fine not exceeding five

thousand rupees as he deems f i t and the f ine so levied may be

recovered in the manner provided in this Act for recovery of

arrears of tax.

13 . The Commissioner and al l off icers and persons appointed undersect ion 10 and al l the members of the Tribunal shal l be deemed to be

pu blic servan ts within the m ean ing of section 21 of the Indian Pena l code.

14 . (1) In discharging their functions by or under this Act, the Tribunaland the Commissioner shall have all the powers of a Civil Court

for th e pu rpose of,

(a) proof of facts by affidavit;(b)summoning and enforcing the at tendance of any person, and

exam in ing h im on oath or affirmation;

(c) compelling the production of documents; and(d) issu ing comm issions for the exam ination of witnes ses .

(2) In the case of any affidavit to be made for the purposes of thisAct, any officer appointed by the Tribunal or the Commissioner

ma y adm inis ter the oath to the deponent .

(3) Without prejudice to the provisions of any other law for the t imebeing in force, where a person, to whom a summons is i ssued by

the Tribu na l or th e Comm iss ioner either to a ttend to give evidence

or produce books of accounts , regis ters or other documents at a

certain place and time, intentionally omits to attend or produce

the books of accounts , regis ters or documents at the place and

time, the Tribunal or as the case may the Commissioner beas the



case ma y be, the Comm issioner, ma y impose on him s uch f ine

not exceeding five thous an d ru pees a s i t or he thinks fit ; and the

fine so levied m ay be recovered in th e m an ner provided in this Act

for recovery of a rrea rs of tax:

Provided that, before imposing any such fine, the person

concerned shall be given a reasonable opportunity of being heard.

(4) When an y docum ents a re produ ced by a person or dealer on

whom the summons was i s sued by the Commiss ioner and the

Commissioner is of the opinion that such dealer or any other

dealer has evaded or is at tempting to evade the payment of any

tax due from him and the documents produced by such dealer or

person are necessary for es tabl ishing the case against such

dealer, the Commissioner may, for reasons to be recorded in

wri t ing, impound the documents and shal l grant a receipt for the

same and retain the same for so long as may be necessary in

connection with the proceedings under this Act: proceedings

under this Act or for a prosecution;

Provided that, if the original documents are required by any

statutory authority for any official purpose, then the said

documents shal l be made avai lable to such authori ty for such

pu rpose for such du rat ion as ma y be required.

15 . No suit , prosecution or other legal proceedings shall l ie against anyservant of the Government for anything which is in good faith done or

proposed or intended or proposed to be done under this Act , the rules or

notifications.

CHAPTER IV

REGISTRATION

16 . (1) No dealer shall , while being l iable to pay tax under this Act, beengaged in the business as a dealer , unless he possesses a val id

certificate of registration as provided by this Act:

Provided that, the provisions of this sub-section shall be deemed

not to ha ve been contra vened , if the dea ler h aving ap plied, within

the prescribed t ime, for such registration as provided in this



sect ion, is en gaged in su ch bu siness:

Provided further that, if any dealer, holds the certificate of

registra tion granted un der the Bom ba y Sales Tax Act, 195 9,

which is effective or valid immediately before the appointed day,

i t shall not be necessary for him to apply for a fresh certificate

under this section so long as the said certificate is not duly

cancelled under this Act:

Provided also that, a dealer holding an effective certificate of

registration or, as the case may be, a l icence granted before the

appointed day, under any laws other than the Bombay Sales Tax

Act, 1959, shall , notwithstanding the fact that he is holding such

effective certifica te be requ ired to a pp ly with in p res cribed time for

gran t of certificate of registra tion u nd er th is section.

(2)Every dealer, required by s u b-section (1 ) to posses s a certificate of

registration or one who voluntarily desires to get registered shall

apply in the prescribed manner to the prescribed authori ty for

grant of such registration.

(3) The prescribed authority shall , after scrutiny of the application,

on being satisfied that the application for registration made

under this sect ion is in order , shal l regis ter the appl icant and

issue the certificate of registration in the prescribed form to him:

If the prescribed authority, after scrutiny of the application and

after such inquiry as i t deems fi t , is satisfied that the application

for registration is in order and the conditions prescribed, if any,

are fulfi l led, then i t shall register the applicant and issue to him

a certificate of registra tion in th e pr escribed form:

Provided that, the prescribed authority, on finding that the

application is not complete or that the information or documentsprescribed for grant of registration certificate have not been

fu rnished, or , in the case of an application made voluntarily, the

prescribed conditions are not fulfilled, may, after giving the

applicant a reasonable opportunity of being heard, reject the

ap plication for rea sons to be recorded in writ ing.

(4) The Commissioner may, after considering any information



furnished under any of the provisions of this Act or otherwise

received, a men d from time to t ime, an y certificate of registra tion.

(5) A pers on or a dea ler who h as got h imself registered sh all be liableto pa y tax du ring the p eriod in wh ich his registration certificate is

effective, notwithstanding the fact that subsequently i t is found

that no registration certificate was necessary in his case.

(6) Where,(a) any business, in respect of which a certificate of registration

has been issued under this sect ion, has been discont inued or

otherwise disposed of, or has been transferred or the place of

su ch bu siness is ch an ged to a d ifferent local area, or

(b) the turnover of sales or the turnover of purchases of aregistered dealer who has become liable to pay tax under

section 3 has during any year not exceeded the relevant l imit

sp ecified in su b-s ection (4) of sect ion 3,

then in the case covered by clause (a), the dealer shall apply

in the prescribed manner and within the prescribed t ime, for

cancellation of his registration to the Commissioner, and in

the case covered by clause (b), the dealer may apply, in the

prescribed manner, for cancellation, of his registration to the

Commissioner; and thereupon the Commissioner may, af ter

such inquiry as he deems f i t and subject to the rules , cancel

the registration with effect from such date including any date

earlier to the date of the order of cancellation as he considers

li t having regard to the circumstances of the case. The

registration certificate cancelled under this sub-section shall

be retu rned to the Commissioner within th e prescribed t ime:

Provided that, where the Commissioner is satisfied that any

business in respect of which a cert i f icate has been issued

under this sect ion has been discont inued or disposed of or

the p lace of su ch bu sines s is chan ged to a differen t local area,

a n d th e d ea ler h a s fa iled to a pp ly u n der cla u s e (a ) a s

aforesaid for cancellation of registration, the Commissioner

may, after giving the dealer a reasonable opportunity of being



hea rd, can cel the regis t ra t ion with effect from su ch date a s h e

may fix to be the date in accordance with the rules, if any,

from which th e bu siness h as b een discont inu ed or disposed of

or cha nged to a different local ar ea, a s th e cas e ma y be:

Provided further that, the cancellation of a certificate of

registration on an application or otherwise shall not affect the

liabil i ty of the dealer to pay the tax including any penalty,

amount forfeited and interest due for any period ending on or

before .the date of cancellation whether such tax including

any penalty, amount forfeited and interest is assessed before

the date of cancel lat ion but remains unpaid, or is assessed

thereafter.

Explanation. For the purposes of this section, local area

means the area to which the Post and Telegraph authori t ies

ha ve ass igned a Postal Index Num ber (PIN).

(7) The Commissioner shal l , by such date as he may not i fy in theOfficial Gazette, prepare a l ist of all registered dealers and may

amend the l ist , from time to t ime. Any person may make an

application in the prescribed form to the Commissioner for a

certified copy of any extract from the l ist and thereupon the

Commissioner, shall furnish a copy of the extract to the

appl icant .

(8) Save as otherwise provided in sub-section (9), a certificate ofregis t rat ion granted under this sect ion and any cert i f icate that

ma y he granted un der this Act , sha ll be persona l to the dealer or

person to whom it is gran ted, an d sh al l not be t ra ns ferable.

(9) Wher e a registered dealer,a . effects a cha nge in the n am e of his bu siness , orb . is a firm, and there is a change in the consti tution of the firm

withou t diss olu tion ther eof, or

c. i s a t rus tee of a t rust , and there is change in the t rusteesthereof, or

d . is a gua rdian of a ward, a nd th ere is a ch an ge in th e gu ardian



or termination of guardianship, or

e. is a Hindu Undivided Family and there is a change of Karta,or

f. is a private l imited company which is converted into a publiclimited comp an y,

then, merely by reason of occurrence of any of the changes

aforesaid, it sh all not b e neces sa ry for th e dea ler, or th e firm with

the changed const i tut ion, or the new t rustees , or new guardian

or the ward or the new Karta or the public l imited company to

apply for a fresh certificate of registration and on information

being furnished in the manner required by sect ion 18, the

certificate of registration shall , where necessary. be amended and

any other certificate granted under the Act, rules or notifications

shal l also cont inue to be val id and be amended where necessary

with effect from the app ropriate da te.

17 . (1)Every registered dealer who holds, on such date as theCommissioner may by notification in the Official Gazette specify,

a certificate of registration, which is valid on the said date

(hereinafter, in this section, referred to as the existing certificate

of registration), shall obtain in lieu of the existing certificate of

registration a fresh certificate of registration as provided in this

section.

(2) Every dealer, who is required to obtain a fresh certificate undersub-sect ion (1), shal l apply in such form, manner and t ime and

to such authori ty as may be prescribed; and such appl icat ion

shall be accompanied by the existing certificate of registration

together with all additiona l copies th ereof, if an y, iss u ed to h im.

(3) On receipt of such application, the prescribed authority shall ,subject to rules, issue a fresh certificate of registration, in the

prescribed form to the appl icant ; and thereupon the fresh

certificate of registration, so issued, shall , for all the purposes of

this Act, be deemed to he a certificate of registration issued

un der sec t ion 16 .

(4) Without prejudice to the other provisions of this Act, all the



existing certificates of registration shall stand cancelled with

effect from such date as the Commissioner may notify in the

Official Gazette

(5) The Commissioner may, by the not i f icat ion issued under sub-section (1 ) or (4), also provide that such notification shall apply

only to such class of registered dealers as are specified in the

said notification and such notification may be issued by him,

from time to time.

(6) The provisions of this section shall mutatis mutandis apply inresp ect of an y other certificate issu ed by or un der th e provisions

of this Act as they apply in respect of the certificate of

registration.

18 . Any reg is tered dealer liab le to pay tax under th is Act , who,-

(a) transfers by way of sale or otherwise disposes of his

business or any part thereof, or effects or knows of any

other cha nge in the ownership of the b us iness or

(b) discont inues his business , or changes the place

ther eof, or open s a n ew place of bu sines s, or

(c) cha nges the na me of his bus ines s , or(d)enters into a pa rtnersh ip in regard to his bu siness , or(e) applies for or has an application made against him for

insolvency or liquidation,

(f) being a company, is involved in merger, de-merger oram algam ation of compan ies ,

(g) opens or c loses a cu r ren t ban k a ccount ,shall , within the prescribed t ime, inform the prescribed

au thority accordingly.

(2)Wher e an y dealer liable to pa y tax u nd er this Act,

(a) dies, his executor, administrator or other legal representativeor ,

(b) where he is a firm, a Hindu Undivided Family or anassociat ion of persons and there is a change in the



consti tution of such firm, Hindu Undivided Family or

association, either by way of dissolution, disruption, partial

parti t ion or parti t ion, or otherwise, then every person who

was a par tner . 4Karta or a member of such firm, Hindu

Undivided Family or association, or

(c) t ransfers or otherwise disposes of his business in thecircumstances mentioned in sub-section (4) of section 44,

then any person from whom and every person to whom the

bu siness is so t ran sferred,

shal l , in the prescribed manner, inform the said prescribed

authori ty of such death, change in the const i tut ion, dissolut ion,

partial parti t ion. parti t ion, disruption or transfer.

19 . (1) Every dealer, who is l iable to pay tax, and who is a Hindu

Und ivided Fam ily, or a n as sociation of pers ons , clu b or s ociety or

firm or compa ny, or who is engaged in bu siness as the gu ardian

or trustee or otherwise on behalf of another person shall , within

the period prescribed send to the authori ty prescribed, a

declarat ion in the manner prescribed s tat ing the name of the

person or persons who shal l be deemed to be the manager or

ma na gers of su ch dea lers bu siness for the pu rposes of this Act.

Such declaration shall be furnished at the t ime of registration

whenever applicable and may be revised in the prescribed

ma nn er, from t ime to t ime.

Every dea ler l iab le to pa y tax u nd er th is Act who is l iab le to obtain a

permanent account number under the Income Tax Act , 1961,

shal l communicate to the Commissioner, in the prescribed t ime

an d ma nn er , the sa id num ber if he h as ob ta ined the sa me an d in

any other case shal l State whether he has appl ied for the same

an d provide the details of th e ap plication an d on obtaining such

nu mb er sha ll commu nicate the sa me to the Commissioner.

CHAPTER V

RETURNS AND ASSESSMENT, ETC.



20 . (1) (a) Every registered dealer shall fi le a correct and completeannual re tu rn in such form, by such date and to such

authori ty , as may be prescribed. In addi t ion to any data

required for proper quantification of tax, the return may

provide for furnishing of data for the purpose of collecting

statist ics relating to any matter dealt with, by or in

connection with, this Act. Different types of annual returns

m ay be p rescribed for differen t class es of dealers.

(b) The Commissioner may examine the annual return to

ascertain whether it is self-consistent and fully filled in. If

the annual return is not self-consistent or fully fi l led in, the

Commissioner m ay serve on the dealer , within four mon ths

of the receipt of the return. a defect memo in the prescribed

form. The s aid registered d ealer sh all correct the d efects a nd

submit a fresh corrected and completed annual return

within one m onth of the service of the defect m emo:

Provided that, the registered dealer who fails to submit the

corrected and completed fresh an nu al return within the s aid

period of one month , sh al l be deemed to ha ve n ot su bm it ted

his annual return within the prescribed t ime as required

u nd er clau se (a).

(2) Without prejudice to the provisions contained in sub-section (I),

every registered dealer may he required to furnish correct and

complete returns in such form, for such period, by such dates ,

and to such authori ty , as may be prescribed. The provis ions

contained in clause (c) of sub-section (1) shal l apply mutat is-

m u t and i s to the returns required to be f i led under this sub-

section.

The Commissioner may, subject to such terms and condi t ions , i f

an y, as m ay be prescribed, permit an y dealer ,

(a) to fu rn ish retu rn s for different periods, or(b) to furnish a consolidated return relating to all or any of the

places of bu sines s of the d ealer in th e Sta te for su ch p eriod or

periods to such au thority, as he m ay direct .



(4) Every person or an unregistered dealer who is required to fi le a

correct and complete return under any other provision of this

Act, shall fi le such return, for such period, in such form, by such

da te an d to su ch au thority as m ay be prescribed.

(5) Any person or dealer who, having furnished a return under sub-section (1 ), (2 ), (3 ) or (4), discovers any omission or incorrect

s tatem ent therein, ma y fu rnish a revised retu rn a t an y t ime b efore

a notice for assessment is served on him in respect of the period

covered by the said return, or before the expiry of a period of two

years from the en d of the fina n cial year in wh ich th e sa id retu rn is

fu rn ished , whichever is ea rlier:

Provided that, where the revised return is fl ied as a result of audit

under section 22, then i t may be fi led within fifteen days of being

informed of the findings or result of the audit irrespective of

whether the said period of two years has expired or an intimation

under sec t ion 21 has been sen t o r tha t the dealer has been

as sess ed u nder sect ion 23 in respect of the p eriod covered by the

re t u rn .

(6)Notwiths tan ding an ything contained in su b-sect ions (1) to (5 ), n oreturn including an annual return or a revised return shal l be

deemed to he correct and complete unless i t fulfi l ls the prescribed

conditions.

20 . (1)(a) Every registered d ealer sh a ll file correct ,comp lete, self-

consis tent return s in su ch form, by su ch date, for su ch period

and to such authori ty as may be prescribed. Different types of

retu rn s m ay be pr escribed for differen t clas ses of dea lers.

(b) The Comm iss ioner m ay exam ine the return to as certain whether

it is comp lete an d self-consisten t . If the retu rn is not complete orself-consistent, the Commissioner may serve on the dealer,

within four months of date of fi l ing of the return, a defect notice

in the prescribed form. The said registered dealer shall correct

the defects and submit to the prescribed authori ty a fresh,

comp lete or self cons istent retu rn within on e mon th of the ser vice

of th e defect n otice:



Provided th at th e registered d ealer who fails to s u bm it a complete

or self consistent fresh return within the said period of one

month shal l be deemed not to have submit ted the return within

the pres cribed t ime a s requ ired u nder claus e (a)

(2) The Commissioner may, subject to such terms and conditions, if

an y, as ma y be prescribed, perm it a ny dealer , - -

(a) to fu rn ish retu rn s for differen t p eriods, or

(b) to furnish a consolidated return relating to all or any of the

places of business of the dealer in the State for such period or

periods , to su ch a u thority, as he m ay direct .

(3)Every person or an unregistered dealer who is required to fi le areturn under any other provision of this Act, shall fi le such return

for such p eriod, in s u ch form, by su ch da te and to such au thority

as may be prescribed and the provis ions contained in paragraph

(b) of sub-section (1) shall apply to such return as they apply to

the return prescribed u nd er pa ragraph (a) of sub-sect ion (1).

(4) Any person or dealer who, having furnished a return undersub-section (1), (2) or (3) discovers any omission or incorrect

s tatement therein, may furnish a revised return in respect of the

period covered by the return at any t ime before a notice foras sess men t is served on him in respect of the p eriod covered by the

return or before the expiry of a period of six months from the end

of the year containing the period to which the return relates,

whichever is earlier.

(5)Notwithstanding anything contained in sub-sections (1) to (4),no return including a revised return shal l be deemed to be

complete and self consistent unless i t fulfi l ls the prescribed

conditions.

(6)For the pu rposes of this Act , a return includes a fresh return .21. (1)Without prejudice to the provisions contained in section 22 or 23,

where a regis tered dealer has filed an an nu al return ,

a . an intimation shall be sent to the said dealer, specifyingtherein the amount of tax, i f any, found due on the basis of



the said annual return after adjustment of any tax deducted

at source and after adjustment of any payment made in

respect of the period covered by the return and amount of

interes t , du e; an d

b . if any refund is due to the said dealer on the basis of the saidannual return, i t shal l be granted to him alongwith the

interes t , i f any payable on the refund and an int imat ion to

tha t effect sh all also be sen t to him.

(2)An intima tion s ent u nd er clau se (a) of su b-section (1) sh all, for a ll

the purposes of this Act , he deemed to be a not ice issued under

c lause (b) of sub-section (4) of section 32 and all the provisions of

this Act shall apply accordingly:

Provided that , an int imat ion under sub-sect ion (1 ) shal l not be

sent i f no amount is due from the dealer or no refund is due to

him in the ci rcumstances described in clause (a) or (b) of sub-

section (1 ) and the acknowledgement of the return shal l i t sel f

serve as an int imat ion.

(3) No intimation under this section shall be sent after the expiry of

three years from the end of the financial year in which the return

is to be filed.

(4) The Commissioner may designate and authorise, by notification

in the Official Gazette, one or more officers as officers competent

to issu e the int imat ion.

21.(1) Where a return is fi led by the prescribed date by a registered

dealer no notice call ing the dealer for assessment in respect of

the period covered by the return shal l be served on the dealer

after two years from the end of the year containing the period to

which the retu rn relates .

(2) Wher e a registered dealer ha s not filed a retu rn in respect of an y

period by the prescribed date, no notice call ing the dealer for

assessment in respect of the said period shal l be served on the

dealer after three years from the end of the year containing the

sa id period :



(3) Notwiths ta n din g a n ythin g con ta ined in su b-s ection (1) or (2) in

respect of any period ending on or before the 31 s t March 2008 ,

irrespective of whether the dealer has fi led a return for such

period by the pres cribed da te, a n ot ice for ass essmen t in resp ect

of the said period may be served on the dealer within a period of

four year s from th e end of the year conta ining the sa id period.

22. (1) With a view to promoting compliance with the provisions of this

Act, the Commissioner may arrange for audit of the business of

any registered dealer. For the purpose of this section, the

selection of dealers for audit shall be made from amongst the

dealers ,

(a) who have not fi led returns by the prescribed dates; or(b)who h ave claimed r efu nd of tax; or(c) where the Commissioner is not , prima-facie, satisfied with the

correctness of any return fi led by a dealer or is not satisfied

with any claim made, deduction claimed or turnover disclosed

in an

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