"9. (1) The tax payable by any dealer under this Act on sales of goods effected by him in the course of inter-State trade or commerce, whether such sales fall within clause (a) or clause (b) of section 3, shall be levied by the Govcnment of India and the tax so levied shall be collected by that Government in accordance with the provisions of sub-section (2), in the State from which the movement of the goods commenced:
Provided that, in the case of a sale of goods during their movement from one State to another, being a sale subsequent to the first sale in respect of the same goods, the tax shall, where such sale does not fall within sub-section (2) of section 6, be levied and collected in the State from which the registered dealer effecting the subsequent sale obtained or, as the case may be, could have obtained, the form prescribed for the purposes of clause (a) of sub-section (4) of section 8 in connection with the purchase of such goods.
Amendment of section 6, IiiKcftiun ol new section
8A.
Determination of turnover.
Substitution of new section for section 9.
Levy and collection oC tax and penalties.
SiX. J | XHE1 GAZETTE OF INDIA EXTRAORDINARY 183.
(2) Subject to the other provisions of this Act and the rules made thereunder, the authorities for the time being empowered to assess, re-assess, collect and enforce payment of any tax under the general sales tax law of the appropriate State shall, on behalf of the Government of India, assess, re-assess, collect and enforce payment of tax, including any penalty, payable by a dealer under this Act as if the tax or penalty payable by such a dealer under this Act is a tax or penalty payable under the general sales tax law of the State; and for this purpose they may exercise all or any of the powers they have under the general sales tax law of the State; and the provisions of such law, including provisions relating to returns, provisional assessment, advance payment of tax, registration of the transferee of any business, imposition of the tax liability of a person carrying on business on the transferee of, or successor to, such business, transfer of liability of any firm or Hindu undivided family to pay tax in the event of the dissolution of such firm or partition of such family, recovery of tax from third parties, appeals, reviews, revisions, references, refunds, rebates, penalties, compounding of offences and treatment of documents furnished by a dealer as confidential, shall apply accordingly;
Provided that if in any State or part thereof there is no general sales tax law in force, the Central Government may, by rules made in this behalf, make necessary provision for all or any of the matters specified in this sub-section.
(3) The proceeds in any financial year of any tax, including any penalty, levied and collected under this Act in any State (other than a Union territory) on behalf of the Government of India shall be assigned to that State and shall be retained by it; and the proceeds attributable to Union territories shall form part of the Consolidated Fund of India.".
7. Section 10A of the principal Act shall be, and shall be deemed always to have been, re-numbered as sub-section (1) of that section and after the said sub-section (1), the following sub-section shall be, and shall bo deemed always to have been, inserted, namely:— "(2) The penalty imposed upon any dealer under sub-section (I) shall be collected by the Government of India in the manner provided in sub-section (2) of section 9—
(a) in the case of an offence falling under clause (b) or clause (d) of section 10, in the State in which the person purchasing the goods obtained the form prescribed for the purposes ol clause (a) of sub-section (4) of section 8 in connection with the purchase of such goods:
(b) in the case of an offence falling under clause (c) of section 10, in the State in which the person purchasing the goods should have registered himself if the offence had not been committed.".
8. In section 13 of the principal Act, in clause (f) of sub-section (i), for the word, brackets and figure "sub-section (3)1 , the word, brackets and figure "sub-section (2)" shall be. and shall be deemed always to have been, substituted.
9. (1) Notwithstanding anything contained in any judgment, decree or order of any court or other authority to the contrary, any assessment, re-assessment, levy or collection of any tax made or purporting to have been made, any action or thing taken or done in relation to such assessment, re-assessment, levy or collection under the provisions of the principal Act before the commencement of this Ordinance, shall be deemed to be as valid and effective as if such assessment re-assessment, levy or collection or action or thing had been made, taken or done under the principal Act as amended by this Ordinance and accordingly—
(a) all acts, proceedings or things done or taken by the Government or by any officer of the Government or by any other authority of section 10A,.
Ainendacw of section 13- Validation of assetsments, etc.
184 THE GAZETTE OF INDIA EXTRAORDINARY [PART II-^SIEC. 1] in connection -with the assessment, re-assessment, levy or collection of such tax shall, for all purposes, be deemed to be, and to have always been, done or taken in accordance with law;
(b) no suit or other proceedings shall be maintained or continued in any court or before any authority for the refund of any such tax;
and
(c) no court shall enforce any decree or order directing the re- ' fund of any such tax.
(2) For the removal of doubts, it is hereby declared that nothing in t̂ ub-section (1) shalr be construed as preventing any person—
(a) from questioning in accordance with the provisions of the principal Act, as amended by this Ordinance, any assessment, reassessment, levy or collection of tax referred to in sub-section (1), or
(b) from claiming refund of any tax paid by him in excess of the amount due from him by way of tax under the principal Act as amended by this Ordinance.
10. (i) Where any sale of goods in the course of inter-State trade or commerce has been effected during the period between the 10th day of November, 1964, and the commencement of this Ordinance, and the dealer effecting such sale has not collected any tax under the principal Act on the ground that no such tax could have been levied or collected in respect of such sale or any portion of the turnover relating to such sale and n o such tax could have been levied or collected if the amendments made in the principal Act by this Ordinance had not been made, then, notwithstanding anything contained in section 9 or the said amendments, the dealer shall not be liable to pay any tax under the principal Act, as amended by this Ordinance, in respect of such sale or such part of the turnover relating to such sale.
(2) For the purposes of sub-section (1), the burden of proving that no tax was collected under the principal Act in respect of any sale referred TO in sub-section (2) or in respect of any portion of the turnover relating to such sale shall be on the dealer effecting such sale.
V, V. G1RI, Vice-President acting as President.
N. D. P. NAMBOODIRIPAD, Joint Secy, to the Govt. of India.
PRINTED IN INDIA BY THE GENERAL MANAGER, GOVERNMENT OP INDIA, PRESS, NEW DELHI AND POTUSIIF.r, BY THi: MAxAfF.JJ OF PUBLICATIONS. DKfJU, 1989 ExCilipUiMl from liability to pay tax in certain eases.