fe^
6A.
'6A. (1) Where any dealer claims that he is not liable to pay tak Burden under this Act, in respect of any goods, on the ground that the move- °* pT00'> ment of such goods from one State to another was occasioned by inca se reason of transfer of such goods by him to any other place of his of transfer business or to his agent or principal, as the case may be, and not by of goods reason of sale, the burden of proving that the movement of those c ] a i m ed goods was so occasioned shall be on that dealer and for this purpose w i s he may furnish to the assessing authority, within the prescribed than by time or within such further time as that authority may, for sufficient way of cause, permit, a declaration, duly filled and signed by the principal saleofficer of the other place of business, or his agent or principal, as the case may be, containing the prescribed particulars in the prescribed form obtained from the prescribed authority, along with the evidence of despatch of such goods.
(2) If the assessing authority is satisfied after, making such inquiry as he may de?m necessary that the particulars contained in the declaration furnished by a dealer under sub-section (1) are true, he may, at the time of, or at any time before, the assessment of the tax payable by the dealer under this Act, make an order to that effect and thereupon the movement of goods to which the declaration relates shall be deemed for the purposes of this Act to have been occasioned otherwise than as a result of sale.
Explanation.—In this section, "assessing authority", in relation to a dealer, means the authority for the time being competent to assess the tax payable by the dealer under this Act.'.
4. In section 7 of the principal Act,— Amend.
ment of
(a) after sub-section (2), the following sub-section shall be inserted, namely:— "(2A) Where it appears necessary to- the authority to whom an application is made under sub-section (1) or sub-section (2) so to do for the proper realisation of the tax payable under this Act or for the proper custody and use of the forms referred to In clause (a) of the first proviso to sub-section (2) of section 6 or sub-section (1) of section 6A or clause (0) of sub-section (4) of section 8, he may, by an order in writing and for reasons to be recorded therein, impose as a condition for the issue of a certificate of registration a requirement that the dealer shall furnish In the prescribed manner and within such time as may be specified in the order such security as may be so specified, for all or any of the aforesaid purposes.";
(b) in sub-section (3), after the words "rules made thereunder", the words, brackets, figure and letter "and the condition, if any, imposed under sub-section (2A), has been complied with" shall be inserted;
K76 THE GAZETTE OF INDIA EXTRAORDINARY [fART II—
(c) after sub-section (3), the following sub-sections shall be inserted, namely:— ' (3A) Where it appears necessary to the authority granting a certificate of registration under this section so to do for the proper realisation of tax payable under this Act or for the proper custody and use of the forms referred to in sub-section (2A), he may, at any time while such certificate is in force, by an order in writing and lor reasons to be recorded therein, require the dealer, to whom the certificate has been granted, to furnish within such time as may be specified in the order and in the prescribed manner such security, or, if the dealer has already furnished any security in pursuance of an order under this sub-section or sub-section (~A), such additional security, as may be specified in the order, for all or any of the aforesaid purposes.
(3B) No dealer shall be required to furnish any security under sub-section (2A) or any security or additional security under sub-section (3A) by the authority referred to therein, unless he has been given an opportunity of being heard and the amount of security that may be required to be furnished by any dealer under either of the aforesaid sub-sections or the aggregate of the amount of such security and the amount of additional securi ty that may be required to be furnished by any dealer under sub-section (3A), shall in no case exceed the tax payable, in accordance with the estimate of such authority, on the turnover of the dealer for the year in which such security or, as the case may be, additional security is required to be furnished.
(3C) Where the security furnished by a dealer under subsection (2A) or sub-section (3A) is in the form of a surety bond and the surety becomes insolvent or dies, the dealer shall, within thirty days of the occurrence of any of the aforesaid events, inform the authority granting the certificate of registration and shall within ninety days of such occurrence furnish a fresh surety bond or furnish in the prescribed manner other security for the amount of the bond.
(3D) The authority granting the certificate of registration may by order and for good and sufficient cause forfeit the whole or any part of the security furnished by a dealer,—
(a) for realising any amount of tax or penalty payable, by the dealer;
(b) \i the dealer is found to have misused any of the forms referred to in sub-section (2A) 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 an opportunity of being heard.
(3E) Where by reason of an order under sub-section (3D), the security furnished by any dealer is rendered insufficient, he shall make up the deficiency in such manner and within such time as may be prescribed.
SEC. 1] THE GAZETTE OF INDIA EXTHAOHblNARY 877 (3F) The authority issuing the forms referred to in subscction (2 A) may refuse to issue such forms to a dealer who has failed to comply with an order under that sub-section or subsection (3 A), or with the provisions of sub-section (3C) or subsection (3E), until the dealer has complied with such order or such provisions, as the case may be.
(3G) The authority granting a certificate of registration may, on application by the dealer to whom it has been granted, order the refund of any amount or part thereof deposited by the dealer by way of security under this section, if it is not required for the purposes of this Act.
(3/1) Any person aggrieved by an order passed under subsection (2A), sub-section (3A), sub-section (3D) or sub-section (3G) may, within thirty days of the service of the order on him, but after furnishing the security, prefer, in such form and manner as may be prescribed, an appeal against such order to such authority (hereafter in this section referred to as the "appellate authority") as may be prescribed:
Provided that the appellate authority may, for sufficient cause, permit such person to present the appeal,—•
(a) after the expiry of the said period of thirty days; or
(b) without furnishing the whole or any part of such security.
(31) The procedure to be followed in hearing any appeal under sub-section (3H), and; the fees payable in respect of such appeals shall be such as may be prescribed.
(3J) The order passed by the appellate authority in any appeal under sub-section (3H) shall be final.';
(d) in sub-section (4), in clause (b), for the words "or has ceased to exist", the words, brackets, figures and letters "or has ceased to exist or has failed without sufficient cause, to comply with an order under sub-section (3A) or with the provisions of sub-section (3C) or sub-section (3E) or has failed to pay any tax or penalty payable under this Act" shall be substituted.
5. In section 8 of the principal Act,— Amendment of
(a) for sub-section (2A), the following sub-section shall be sub- s e c t i o n 8 - stituted, namely: — "(2A) Notwithstanding anything contained in sub-section (1A) of section 6 or sub-section (1) or sub-section (2) of this section, the tax payable under this Act by a dealer on his turnover in so far as the turnover or any part thereof relates to the sale of any goods, the sale or, as the case may be, the purchase of which is, under the sales tax law of the appropriate State, 878 THE GAZETTE OF IMDTA EXTRAORDINARY [PART 11— exempt from tax generally or subject to tax generally at a rate which is lower than three pur cent, (whether called a tax or lee or by any other name), shall be nil or, as the case may be, shall be calculated at the lower rate.
Explanation,—For the purposes of this sub-section a sale or purchase of any goods shall not be deemed to be exempt from tax generally under the sales tax law of the appropriate State if under that law the sale or purchase of such goods is exempt only in specified circumstances or under specified conditions or the tax is levied on the sale or purchase of such goods at specified stages or otherwise than with reference to the turnover of the goods.";
(b) in sub-section (4), the following proviso shall be inserted at the end, namely: — "Provided that the declaration referred to in clause (a) is furnished within the prescribed time or within such further time as that authority may, for sufficient cause, permit.";
(c) for sub-section (5), the following sub-section shall be substituted, namely: — "(5) Notwithstanding anything contained in this section, the State Government may, if it is satisfied that it is necessary so to do in the public interest, by notification in the Official Gazette, and subject to such conditions as may be specified therein, direct,—
(a) that no tax under this Act shall be payable by any dealer having his place of business in the State in respect of the sales by him, in the course of inter-State trade or commerce, from any such place of business of any such goods or classes of goods as may be specified in the notification, or that the tax on such sales shall be calculated at such lower rates than those specified in sub-section (1) or sub-section
(2) as may be mentioned in the notification;
(b) that in respect of all sales of goods or sales of such classes of goods as may be specified in the notification, which are made, in the course of inter-State trade or commerce, by any dealer having his place of business in the State or by any class of such dealers as may be specified in the notification to any person or to such class of persons as may be specified in the notification, no tax under this Act shall be payable or the tax on such sales shall be calculated at such lower rates than those specified in sub-section (1) or subsection (2) as may be mentioned in the notification.".
Amend- 6. In section 9 of the principal Act, in sub-section (2), for the words mentol "refunds penalties,", the words "refunds, rebates, penalties," shall be section 9. s u b a t i t u t e d .
Srcc. 11 THE GAZETTE OF INDTA EXTRAORDINARY 879