Chhattisgarh Commercial Tax Act 1994 Bare Act

The source publishes this enactment as a single document rather than provision by provision, so the whole text is below and there are no per-section pages for it. Nothing has been shortened.

Type	Act
Citation	Act 5 of 1995
Year	1995
Jurisdiction	State of Chhattisgarh
Ministry	State Government
Status	In force as published by the source
Text	Published as one document, as the source published it
Subjects	taxation

- 1 - M.P. Commercial Tax Act, 1994 1(M. P. Act No. 5 of 1995) An Act to levy tax on commerce in the State of Madhya Pradesh.

Be it enacted by the Madhya Pradesh Legislature in the Forty Fifth year of the Republic of India as follows :

Sec. 1 : Short title, extent & commencement

(1) This Act may be called the Madhya Pradesh Vanijyik Kar Adhiniyam, 1994.

(2) It extends to the whole of Madhya Pradesh.

2(3) It shall come into force on 3such date as the State Government may by notification in the Official Gazette appoint and different dates may be appointed for different provisions of the Act.

Sec. 2 : Definitions In this Act, unless there is anything repugnant in the subject or context -

(a) Appellate Deputy Commissioner means an Appellate Deputy Commissioner of Commercial Tax appointed under Section 3 and includes an Additional Appellate Deputy Commissioner of Commercial Tax;

(b) Assistant Commissioner means an Assistant Commissioner of Commercial Tax appointed under Section 3;

(a) any trade, commerce, manufacture or any adventure or concern in the nature of trade, commerce or manufacture, whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make gain or profit and whether or not any gain or profit accrues from such trade, commerce, manufacture, adventure or concern and irrespective of the volume, frequency, continuity or regularity of such trade, commerce, manufacture, adventure or concern;

1 Received the assent of the President on the 7.1.95; Assent first published in the Madhya Pradesh Rajpatra dt. 7.2.95. Corrigendum dated 15.11.96 published in the Madhya Pradesh Rajpatra Part - 4 of 13.12.96. The Act has come into force w.e.f. 1.4.95.

The Act has been amended by the following Amending Acts/Ordinances :

1) MPCT (Amendment) Ordinance, 1995;

2) MPCT (Amendment) Act, 1995;

3) MPCT (Second Amendment) Act, 1996;

4) MPCT (Amendment) Act, 1997;

5) MPCT (Amendment) Ordinance, 1997;

6) MPCT (Second Amendment) Act, 1997;

7) MPCT (Amendment) Act, 1998;

8) MPCT (Amendment) Act, 1999;

9) MPCT (Second Amendment) Ordinance, 1999 (Read with corrigendum dated 28.1.00);

10) MPCT (Amendment) Act, 2000 (Read with corrigendum dated 2.3.01);

2 Sub-section (3) substituted by MPCT (Amendment) Act, 1995 w.e.f. 1.4.94.

3 The Act has come into force w.e.f. 1.4.95 vide Noti. No. 9, dt. 2.3.95.

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(b) any transaction of sale or purchase of goods in connection with or incidental or ancillary to the trade, commerce, manufacture, adventure or concern referred to in sub-clause (a), that is to say -

(i) goods of the description referred to in sub-section (3) of Section 8 of the Central Sales Tax Act, 1956 (No. 74 of 1956), whether or not they are specified in the registration certificate, if any, of the dealer under the said Act and whether or not they are in their original form or in the form of second hand goods, unserviceable goods, obsolete or discarded goods, mere scrap or waste material; and

(ii) goods which are obtained as waste products or by-products in the course of manufacture or processing of other goods or mining or generation of or distribution of electrical energy or any other form of power;

(d) Commerce means sale or purchase of goods within the meaning of clause (29-A) of Article 366 of the Constitution of India and the expression “Commercial” shall be construed accordingly;

1[(dd) 'Commercial Tax Office' means an office of any officer appointed under section 3 of this Act.]

(e) Commercial Tax Officer means a Commercial Tax Officer appointed under Section 3 and includes an Additional Commercial Tax Officer;

(f) Commissioner means the Commissioner of Commercial Tax appointed under Section 3;

(g) Cooked food includes sweets and sweetmeats, mishri, batasha, chironji, shrikhand, rabadi, doodhpak, prepared tea and prepared coffee but excludes icecream, kulfi, ice-candy, non-alcoholic drink containing ice-cream, cakes, pastries, biscuits, chocolates, toffees, lozenges, peppermint drops and mawa;

(h) Dealer means any person who carries on the business of buying, selling, supplying or distributing goods, directly or otherwise, whether for cash, or for deferred payment or for commission, remuneration or other valuable consideration and includes -

(i) a local authority, a company, an undivided Hindu family or any society (including a co-operative society), club, firm or association which carries on such business;

(ii) a society (including a co-operative society), club, firm or association which buys goods from, or sells, supplies or distributes goods to, its members;

(iii) a commission agent, broker, a del-credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of buying, selling, supplying or distributing goods on behalf of the principal;

1(iv) any person who transfers the right to use any goods for any purpose, (whether or not for a specified period) in the course of business to any other person;

Explanation - (I) Every person who acts as an agent of a non-resident dealer, that is as an agent on behalf of a dealer residing outside the State and buys, sells, supplies or 1 Inserted vide MPCT (Amendment) Act. 2002 w.e.f. 13-8-2002 1 Clause (iv) inserted by MPCT (Amendment) Act, 1995 w.e.f. 1.4.95.

distributes goods in the State or acts on behalf of such dealer as -

(i) a mercantile agent as defined in the Indian Sale of Goods Act, 1930 (III of 1930); or

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

(iii) an agent for the collection or the payment of the sale price of goods or as a guarantor for such collection or payment, and every local branch of a firm or company situated outside the State, shall be deemed to be a dealer for the purpose of this Act.

(II) The Central or a State Government or any of their departments or offices which, whether or not in the course of business, buy, sell, supply or distribute goods, directly or otherwise, for cash or for deferred payment, or for commission, remuneration or for other valuable consideration, shall be deemed to be a dealer for the purpose of this Act.

(i) The expression declared goods shall have the meaning assigned to it in the Central Sales Tax Act, 1956 (No.74 of 1956);

(j) Deputy Commissioner means a Deputy Commissioner of Commercial Tax appointed under Section 3 and includes an Additional Deputy Commissioner of Commercial Tax;

(k) Goods means all kinds of movable property other than actionable claims, newspapers, stocks, shares, securities or Government stamps and includes all materials, articles and commodities, whether or not to be used in the construction, fitting out, improvement or repair of movable or immovable property, and also includes all growing crops, grass, trees, plants and things attached to, or forming part of the land which are agreed to be severed before the sale or under the contract of sale;

(l) Import means the bringing or causing to be brought of goods into the State of Madhya Pradesh from any place outside the State;

(m) Incidental goods means goods, other than raw material and packing material, referred to in clause (b) of sub-section (3) of Section 8 of the Central Sales Tax Act, 1956 (No.74 of 1956), for use by the registered dealer in the manufacture or processing of goods or in mining of or in the generation or distribution of electrical energy or any other form of power;

(n) Licence means a licence granted under the Act;

(o) Manufacture includes any process or manner of producing, collecting, extracting, preparing or making any goods, but does not include such manufacture or manufacturing process as may be 1notified.

(p) Place of business means any place where a dealer purchases or sells any goods or stores goods or keeps accounts of his purchases or sales or both and also includes -

(i) the place of business of an agent where a dealer carries on business through an agent;

(ii) any place or building whether any business is carried on therein or not, in which the person carrying on the business, states that any of his books of accounts, documents, stocks or other things, relating to his business are kept;

(q) Purchase price shall comprise of -

(i) the amount payable by a dealer as valuable consideration for the purchase of goods ‘simpliciter’:

Provided that where goods are purchased together with the packing material or container, then notwithstanding anything contained in this Act, the purchase price of such goods shall be inclusive of the price or cost or value of such packing material or container, whether such price or cost or value is paid separately or not as if such packing material or container were the goods purchased;

1 See Noti. No. 18, dt. 1.4.95.

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(ii) transport costs, if any;

(iii) trade commission, if any, by whatever name called;

(iv) forwarding and handling charges, if any;

(v) insurance charges, if any;

(vi) local taxes, if any;

(vii) excise duty, if any, leviable under the Central Excise and Salt Act, 1944 (No.1 of 1944);

(viii) cost of packing, if any; and

(ix) any other charges or costs other than those specified above, if incurred or paid in respect of goods so purchased;

Explanation - For the purpose of this clause “transport cost” includes such expenses as are incurred by the dealer on transportation of goods after taking delivery from the seller;

(r) Raw material means an article used as an ingredient in any manufactured goods, or an article consumed in the process of manufacture and includes fuel and lubricants required for the process of manufacture;

(s) Registered dealer means a dealer registered under this Act;

(t) Sale with all its grammatical variations and cognate expressions means any transfer of property in goods for cash or deferred payment or for other valuable consideration and includes -

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

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

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

(iv) a supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration;

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

and such transfer, delivery or supply of any goods shall be deemed to be a sale of those goods by the person making the transfer, delivery or supply and purchase of these goods by the person to whom such transfer, delivery or supply is made, 1[but does not include a mortgage, hypothecation, charge or pledge];

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

Explanation - (a) Notwithstanding anything contained in the Sale of Goods Act, 1930 (III of 1930), where a sale or purchase of goods takes place in pursuance of a contract of sale, such sale or purchase shall be deemed, for the purposes of this Act to have taken place in the State wherever the contract of sale or purchase might have 1 Subs. vide MPCT (Second Amendment) Act, 1996 w.e.f. 1.4.95.

2 Sub-clause (vi) inserted by MPCT (Amendment) Act, 1995 w.e.f. 1.4.95.

been made, if the goods are within the State -

(i) in the case of specific or ascertained goods, at the time the contract of sale or purchase is made; and

(ii) in the case of unascertained or future goods, at the time of their appropriation to the contract of sale or purchase by the seller or by the purchaser, whether the assent of the other party is prior or subsequent to such appropriation; and

(b) Where there is a single contract of sale or purchase of goods situated at more places than one, the provisions of clause (a) shall apply as if there were separate contracts in respect of the goods at each of such places.

(u) Sale price means the amount payable to a dealer as valuable consideration for the sale of any goods less any sum allowed as cash discount according to ordinary trade practice but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before delivery thereof other than the cost of freight or delivery or the cost of installation when such cost is separately charged;

Explanation - Where goods are sold on hire purchase or any system of payment by instalments, the sale price of such goods shall be exclusive of insurance charges, interest and hire charges and such other charges as may be prescribed;

(v) Tax means the tax payable under this Act;

(w) Taxable turnover in relation to any period means that part of a dealer’s turnover for such period which remains after deducting therefrom -

(i) the sale price of goods declared tax free under Section 15 or exempted in whole under Section 17;

(ii) the sale price of goods mentioned in 1[Part II to VI] of Schedule II which are in the nature of tax paid goods in the hands of such dealer;

(iii) the sale price of unginned cotton as specified in Part I of Schedule II and such other goods in the said Part as the State Government may from time to time, by notification, specify, sold to a registered dealer who has declared in the prescribed form that the goods are for resale or for use by him in the manufacture of goods for sale by him;

(iv) the sale price of goods specified in Part I of Schedule II other than those referred to in sub-clause (iii), sold to a registered dealer who has declared in the prescribed form that the goods are for resale by him;

(v) the amount arrived at by applying the following formula :

rate of tax X aggregate of sale prices 100 + rate of tax

Provided that no deductions on the basis of the above formula shall be made if the amount by way of tax collected by a registered dealer, in accordance with the provisions of this Act, has been otherwise deducted from the aggregate of sale prices.

Explanation - Where the turnover of a dealer is taxable at different rates, the aforesaid formula shall be applied separately in respect of such part of the turnover liable to a different rate of tax under sub-section (1) of Section 9;

(vi) such other deductions as may be prescribed.

Relevant Rules & Forms : Rules 26 & 35; Forms 26, 27, 28, 29, 30 & 31

(x) Tax paid goods in relation to a dealer means any goods specified in 2[Part II to VI] of Schedule II which have been purchased by such dealer from a registered dealer inside the State of Madhya Pradesh within the meaning of Section 4 of the Central Sales Tax Act, 1956 (No.74 of 1956) except - 1 Subs. for the words ‘Part II to VII’ first by MPCT (Amendment) Ordinance, 1999 w.e.f.

1.1.2000 and then by MPCT (Amendment) Act, 2000 w.e.f. 15.3.2000.

2 Subs. for the words ‘Part II to VII’ first by MPCT (Amendment) Ordinance, 1999 w.e.f.

1.1.2000 and then by MPCT (Amendment) Act, 2000 w.e.f. 15.3.2000.

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(i) the goods sale whereof by such registered dealer is exempted in whole from payment of tax subject to the condition that such exemption is available only to such registered dealer; and

(ii) the goods manufactured by a registered dealer in his new industrial unit in respect of which such dealer is availing of the facility of exemption from payment of tax in whole under any notification issued under the Act repealed by this Act or under this Act in pursuance of any scheme of the State Government formulated and enforced before or after the commencement of this Act for grant of incentives for the establishment of new industrial units in the State;

(y) Tribunal means tribunal as constituted under Section 4;

(z) Turnover used in relation to any period means the aggregate of the amount of sale prices received and receivable by a dealer in respect of any sale or supply or distribution of goods made during that period, whether or not the whole or any portion of such turnover is liable to tax but after deducting the amount, if any, refunded by the dealer to a purchaser, in respect of any goods purchased and returned by the purchaser within the prescribed period :

Provided that -

(i) in the case of sale by bonafide agriculturist as defined in clause (e) of subsection (1) of Section 2 of the Madhya Pradesh Land Revenue Code, 1959 (No.20 of 1959), of ghee produced by himself; or

(ii) in case of sale by a person of agricultural or horticultural produce grown by himself or grown on any land in which he has an interest whether as owner, usufructuary mortgagee, tenant or otherwise, when such produce is sold in the form in which it was produced, without being subjected to any physical, chemical or other process for being made fit for consumption save mere dehusking, cleaning, grading or sorting, the amount of consideration relating to such sales shall be excluded from his turnover;

1Explanation - The amount realised or realisable under Section 9-A shall be included in the turnover.

Relevant Rule : Rule 36

(zz) Year means the twelve months ending on the 31st day of March.

Sec. 3 : Taxing Authorities and other Officers

(1) There may be appointed a person to be the Commissioner of Commercial Tax and the following category of officers to assist him, namely :

(a) Additional Commissioner of Commercial Tax;

(b) Appellate Deputy Commissioner or Additional Appellate Deputy Commissioner of Commercial Tax;

(d) Assistant Commissioner or Additional Assistant Commissioner of 1 Explanation inserted by MPCT (Amendment) Act, 1995 w.e.f. 1.4.95.

Commercial Tax;

(e) Commercial Tax Officer or Additional Commercial Tax Officer;

(f) Assistant Commercial Tax Officer; and

(g) Inspector of Commercial Tax.

(2) The Commissioner of Commercial Tax and the Additional Commissioner of Commercial Tax shall be appointed by the State Government and the other officer referred to in sub-section (1) shall be appointed by the State Government or such other authority as it may direct.

(3) The Commissioner of Commercial Tax and the Additional Commissioner of Commercial Tax shall exercise all the powers and perform all the duties conferred or imposed on the Commissioner by or under this Act, throughout the State and for this purpose any reference to the Commissioner in this Act, shall be construed as a reference to the Additional Commissioner of Commercial Tax.

(4) Other Officers referred to in sub-section (2) shall, within such areas as the appointing authority may, by general or special order specify, exercise such powers as may be conferred and perform such duties as may be imposed by or under this Act.

Relevant Rule : Rule 3 Sec. 4 : Tribunal

(1) Subject to such rules as may be made in this behalf, the State Government may, by notification, with effect from a date specified therein, constitute Tribunal to exercise the powers and perform the functions conferred on the Tribunal by or under this Act.

(2) Till the date specified in the notification under sub-section (1), the Board of Revenue shall act as Tribunal for the purpose of this Act and on the date aforementioned all proceedings pending before the Board of Revenue, Madhya Pradesh, acting as Tribunal shall stand transferred to the Tribunal constituted under sub-section (1).

(3) Subject to the previous approval of the State Government, the Tribunal may, from time to time, make regulations consistent with the provisions of this Act regulating the procedure and disposal of its business.

Relevant Rule : Rule 4 Sec. 5 : Incidence of taxation

(1) Every dealer whose turnover during a period of twelve months immediately preceding the commencement of this Act exceeds the limit specified in sub-section

(5), shall from such commencement be liable to pay tax under this Act in respect of sales or supplies of goods effected in Madhya Pradesh.

(2) Every dealer to whom sub-section (1) does not apply shall be liable to pay tax under this Act in respect of sales or supplies of goods effected in Madhya Pradesh with effect from the date on which his turnover in a year first exceeds the limit specified in sub-section (5) but for the purpose of assessment of the tax only so much of his turnover as is in excess of such limit, shall be taken into consideration.

(3) Every dealer who is liable to pay tax under this Act shall continue to be so liable until the expiry of two consecutive years during each of which his turnover has not exceeded the limits specified in sub-section (5) and till such further period thereafter as may be prescribed and on the expiry of this later period his liability to pay tax shall cease.

(4) Every dealer whose liability to pay tax under this Act has ceased under subsection (3) shall, if his turnover calculated from the commencement of any year again exceeds the limit specified in sub-section (5), be liable to pay tax under sub-section

(2).

(5) For the purpose of this Section, the limit shall be -

(a) in relation to a dealer who imports into the State goods other than lottery tickets of the value of not less than Rs.5, 000/- in a year - Fifty Thousand Rupees;

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(b) in relation to a dealer who manufactures in a year any goods (other than such goods as may be 1notified by the State Government in this behalf) of the value not less than Rs.20, 000 - Fifty Thousand Rupees.

(c) in relation to a dealer being a co-operative society registered under any law for the time being in force relating to co-operative societies dealing exclusively in goods produced or manufactured by such society or its members without the aid of hired labour - One Lac Rupees.

(d) in relation to a dealer who enters into a works contract and in the execution thereof supplies goods (whether as goods or in some other form) - One Lac Rupees.

(e) in relation to a dealer not falling in clause (a), (b), (c) or (d) - One Lac Rupees.

2(f) in relation to a dealer liable to pay tax under Section 9-A - Fifty Thousand Rupees.

Sec. 6 : Determination of liability to pay tax under this Act

(1) The Commissioner shall, in the prescribed manner, institute proceedings for the purpose of determining the liability of a dealer to pay tax under this Act. Such liability shall be determined by an order and such determination shall be made within a period of twelve months from the date of institution of such proceedings.

(2) Notwithstanding anything contained in sub-section (2) of Section 5, liability of a dealer to pay tax under this Act shall not be determined from a date earlier than five years prior to -

(i) the date of institution of proceedings under sub-section (1); or

(ii) the date of validity of the registration certificate, whichever is earlier.

Relevant Rule & Form : Rule 69; Form 56 & 57 Sec. 7 : Joint and several liability of a contractor or a sub-contractor

(1) Where a dealer who carries on the business of supplying goods in the course of execution of works contract entered into by him (hereinafter referred to as a contractor) through another such dealer (hereinafter referred to as a sub-contractor) directly or otherwise, and the sub-contractor executes such works contract and each or either of them is liable to pay tax under this Act, then notwithstanding anything contained in this Act, the contractor and the sub-contractor shall be jointly and severally liable to pay tax in respect of 3[transfer of property in goods whether as goods or in some other form involved in the execution of such works contract].

(2) If the contractor proves in the prescribed manner that the tax has been paid by the sub-contractor on the turnover of goods supplied in the course of execution of the works contract, the contractor shall not be liable to pay tax again on the turnover of such goods.

(3) If the sub-contractor proves in the prescribed manner that the tax has actually been paid by the contractor on the turnover of goods supplied in the course of 1 See Noti. No. 19, dt. 1.4.95.

2 Clause (f) inserted by MPCT (Amendment) Act, 1995 w.e.f. 1.4.95.

3 Subs. by MPCT (Second Amendment) Act, 1996 w.e.f. 1.4.95.

execution of the works contract, the sub-contractor shall not be liable to pay tax again on the turnover of such goods.

(4) Deduction in respect of the turnover of goods supplied in the course of execution of works contract referred to in sub-section (2) or sub-section (3) shall be allowed to the contractor or to the sub-contractor on the production of proof required to be furnished under the said sub-section.

Sec. 8 : Liability of a dealer registered under Central Act No. 74 of 6 to pay tax

(1) A dealer registered under the Central Sales Tax Act, 1956 (No.74 of 1956) who is not liable to pay tax under Section 5 shall nevertheless be liable to pay tax on his sales of any goods in respect of the purchases of which he has furnished a declaration under sub-section (4) of Section 8 of the said Act or on the sales of any goods in the manufacture of which such goods have been used, at the rate specified in sub-section

(1) of Section 9.

(2) Every dealer to whom sub-section (1) applies shall for the purposes of Section 26, 27, 32 and 42 be deemed to be a registered dealer.

Sec. 9 : Levy of tax

(1) Subject to provisions of sub-section (2) and sub-section (3), the tax payable by a dealer under this Act shall be levied on the taxable turnover relating to goods specified in Schedule II at the rate mentioned in corresponding entry in column (3) of the said Schedule.

1(2) Subject to such restrictions and conditions as may be prescribed and to the provisions of sub-clause (iii) of clause (w) of Section 2 -

(a) the tax payable by a registered dealer on the sales of any goods specified in Schedule II except the goods specified in Schedule III, to another registered dealer for use by him inside the State -

(i) as raw material or as incidental goods, in the manufacture or in the processing of goods or in the mining of goods, declared tax free under Section 15 or exempted in whole under Section 17 and sold by him -

(a) in the State of Madhya Pradesh, or

(b) in the course of inter-State trade or commerce, or

(ii) in the generation or distribution of electrical energy or any other form of power;

shall be levied at the concessional rate of four per cent.

(b)(i) the tax payable by a registered dealer on the sale of any goods specified in Schedule II except the goods specified in Schedule III, to another registered dealer holding a recognition certificate under Section 25 for use by him as raw material or as incidental goods in the manufacture or processing or mining of taxable goods other than coal; or

(ii) the tax payable by a registered dealer on the sale of any goods specified in Schedule II to another registered dealer holding a recognition certificate under Section 25 for use by him as raw material or incidental goods in the mining of coal, for sale by him in the State of Madhya Pradesh or in the course of inter-State trade or commerce or in the course of export out of the territory of India, shall be levied at the concessional rate of four per cent :

Provided that when the tax on the sale of such raw material or incidental goods is payable under sub-section (1) at a rate lower than four per cent, the tax payable under clause (a) or clause (b) shall be calculated at such lower rate or at such other lower rate as may be 2notified by the State Government.

1 In sub-section (2) of Sec. 9, for the words ‘four per cent’ wherever they occur, the words ‘two per cent’ have been substituted by MPCT (Amendment) Act, 1998. But, so far the same has not been made effective.

2 See Noti. No. 20, dt. 1.4.95.

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(3) Where any goods purchased by a registered dealer under clause (a) or clause (b) of sub-section (2) are used by him contrary to the purpose specified therein or in violation of the restrictions and conditions prescribed under the said sub-section such registered dealer shall be liable to pay in such manner as may be prescribed, tax or penalty, as the case may be, at the rate equal to the difference of the full rate of tax under sub-section (1) and the concessional rate of tax under sub-section (2), in respect of such goods :

Provided that no tax or penalty shall be imposed on a registered dealer where any goods purchased for use by him as raw material or incidental goods under clause (a) or clause (b) of sub-section (2), are sold by him subject to such restrictions or conditions as may be prescribed, to another registered dealer who is a manufacturer of goods declared tax free under Section 15 or goods exempted in whole under Section 17, or who holds a recognition certificate under Section 25 for the purpose specified in the said clauses.

Explanation - In this Section -

(i) the expression “taxable goods” shall mean the goods liable to tax under this Act;

(ii) the amount payable for violation of restrictions and conditions shall be by way of tax in respect of goods other than declared goods and by way of penalty in respect of declared goods.

Relevant Rules & Forms : Rule 27 & 30; Form 32, 33, 34 & 35

1Sec. 9-A : Tax on right to use Every dealer who transfers the right to use any goods, as the State Government may specify by 2notification, for any purpose, (whether or not for a specified period) to any person for cash, deferred payment or other valuable consideration in the course of his business, notwithstanding anything contained in the provisions of clause (w) of Section 2, shall on the total amount realised or realisable by him during the year by way of payment in cash or otherwise on such transfer, pay tax at the rate of four per cent on the aggregate of such amount.

3Sec. 9-B : Levy of tax in special circumstances 4(1) Every dealer liable to pay tax under this Act, whose turnover in the year ⇒ 1 Section 9-A inserted by MPCT (Amendment) Act, 1995 w.e.f. 1.4.95.

2 See Noti. No. 37, dt. 1.5.95. For exemption to Tent House for the period 1.4.95 to 31.3.01 see Noti. No. 84, dt. 6.11.95 and for the period 1.4.01 to 31.3.02 see Noti. No. 23, dt. 30.3.01.

3 Section 9-B inserted by MPCT (Amendment) Act, 1997 w.e.f. 1.5.97.

4 Sub-section (1) substituted by MPCT (Amendment) Act, 1998 w.e.f. 1.4.99. Earlier to substitution sub-section (1) read as under :

“Notwithstanding anything contained in clause (x) of Section 2 and sub-section (1) of Section 9, every such dealer liable to pay tax under Section 9 whose turnover in the year preceding the commencement of the Madhya Pradesh Vanijyik Kar (Sanshodhan) Adhiniyam, 1997 exceeds rupees one crore and every other dealer whose turnover in a year first exceeds rupees one crore shall, from the date of such commencement or from the date on which the turnover exceeds rupees one crore, as the case may be, be liable to pay tax on the resale of any goods specified in Part II to VII of Schedule II and such tax shall be payable on such part of his turnover in respect of the said goods at the rate specified in column (3) of the said Schedule which remains after deducting therefrom - preceding the commencement of the Madhya Pradesh Vanijyik Kar (Sanshodhan) Adhiniyam, 1998 exceeds rupees 1[ten] lacs and every other dealer whose turnover in a year first exceeds rupees3[ten] lacs shall, from the commencement of the aforesaid Act or from the date on which the turnover exceeds rupees 3[ten] lacs, as the case may be, be liable to pay tax on the resale of any goods specified in 2[Part II to VI] of Schedule II at the rate of 5[4 percent in case of declared goods and 8 percent in case of goods other than declared goods] on such part of his turnover in respect of the said goods which remains after deducting therefrom -

(i) ....deleted w.e.f. 13-8-2002......

(ii) sale price of such goods at the hands of the registered dealer from whom they have been purchased;

(iii) the amount arrived at in accordance with the provisions of sub-clause (v) of clause (w) of Section 2]

(2) Every dealer who is liable to pay tax under sub-section (1) shall continue to be so liable until the expiry of two consecutive years during each of which his turnover has not exceeded the limits specified in sub-section (1) and on the expiry of such period his liability to pay tax shall cease.

Sec. 10 : Levy of Purchase tax

(1) Every dealer who in the course of his business purchases any goods specified in Schedule II -

(i) from a registered dealer in the circumstances in which no tax under Section 9 is payable by that registered dealer on the sale price of such goods; or

(ii) from any other person;

shall be liable to pay tax on the purchase price of such goods, if after such purchase the goods are not sold within the State or in the course of inter-State trade or commerce or in the course of export out of the territory of India, but are -

(a) sold or disposed of otherwise; or

(b) used or consumed in the manufacture or processing of other goods or used or consumed otherwise;

such tax shall be levied at the same rate at which tax under sub-section (1) of Section 9 would have been levied on the sales of such goods within the State on the date of such purchase.

3(2) Notwithstanding anything contained in sub-section (1) but subject to such restrictions and conditions as may be prescribed, the tax under sub-section (1) payable by a registered dealer on the goods, other than the goods specified in Schedule-III purchased by him for consumption or use by him as raw material or incidental goods in the manufacture or in the mining of goods for sale by him in the State of Madhya Pradesh or in the course of inter-State trade or commerce or in the course of export out of the territory of India or in the generation or distribution of electrical energy or any other form of power, shall be levied at the concessional rate of four per cent :

________________________________________________________________ ⇒

(i) sale price of declared goods;

(ii) sale price of such goods at the hands of the registered dealer from whom they have been purchased;

(iii) amount arrived at in accordance with the provisions of sub-clause (v) of clause (w) of Section 2;

(iv) any other deduction as may be prescribed, in such manner as may be prescribed.” 1 Subs. for words fifty by MPCT (Amendment) Act. 2002 w.e.f. 23-4-2002 2 Subs. for the words ‘Part II to VII’ first by MPCT (Amendment) Ordinance, 1999 w.e.f.

1.1.2000 and then by MPCT (Amendment) Act, 2000 w.e.f. 15.3.2000.

5 Subs. by MPCT (Amendment) Act. 2002 w.e.f. 13-8-2002 3 In sub-section (2) of Sec. 10, for the words ‘four per cent’ wherever they occur, the words ‘two per cent’ have been substituted by MPCT (Amendment) Act, 1998. But, so far the same has not been made effective.

- 11 - - 12 -

Provided that when the tax on the purchase of such raw material or incidental goods is payable under sub-section (1) at a rate lower than four per cent, the tax payable under this sub-section shall be calculated at such lower rate or at such other lower rate as may be 1notified by the State Government.

(3) No tax under this Section shall be levied in respect of any year on -

(a) a dealer whose turnover in a year does not exceed the limit specified in subsection (5) of Section 5;

(b) a dealer holding a licence under Section 18 in respect of raw material and incidental goods used in that year in the manufacture of goods in respect of which he holds such licence;

(c) a dealer in respect of the purchase price of unginned cotton as specified in Part I of Schedule-II and such other goods in the said part as the State Government may from time to time by notification specify, who has consumed or used them as raw material for the manufacture of other goods and the goods so manufactured are sold by him in the State of Madhya Pradesh or in the course of inter-State trade or commerce or in the course of export out of the territory of India;

(d) any other dealer who has no turnover, if his aggregate of purchase prices of all the goods does not exceed fifty thousand rupees.

(4) Every dealer who has no turnover and is liable to pay tax under sub-section (1) shall, for the purpose of Sections 26, 27, 28, 32, 33 and 42, be deemed to be a registered dealer.

Relevant Rules & Forms : Rule 28 & 30; Form 36

2Sec. 10-A : Levy of surcharge on tax payable except on declared goods

(1) There shall be levied a surcharge on the amount of tax payable under this Act at the rate of fifteen per centum of such amount;

Provided that surcharge shall not be leviable on the amount of tax as is relatable to declared goods.

(2) The surcharge levied under sub-section (1) shall be in addition to the amount of tax payable under this Act and all the other provisions of this Act, shall apply to surcharge so levied as they apply to tax.

Sec. 11 : Dealer not to pass incidence of tax to agriculturists and horticulturists under certain circumstances No dealer shall collect any amount, by way of tax, from a person who sells agricultural or horticultural produce grown by himself or grown on any land in which he has an interest, whether as owner, usufructuary mortgagee, tenant or otherwise, when such produce is sold in the form in which it was produced, without being subjected to any physical, chemical or other process for being made fit for consumption save mere dehusking, cleaning, grading or sorting.

Sec. 12 : Rate of tax on container or packing material Notwithstanding anything contained in 3[sub-section (1) of Section 9 or Section 9-B] ⇒ 1 See Noti. No. 21, dt. 1.4.95.

2 Sec. 10-A inserted by MPCT (Second Amendment) Act, 1997 w.e.f. 22.8.97.

3 Subs. for the words ‘sub-section (1) of Section 9’ wherever occurred in Section 12 by MPCT or sub-section (1) of Section 10 where any goods packed in any container or packing material are sold or purchased, the container or packing material in which such goods are so packed shall be deemed to have been sold or purchased along with such goods and the tax under [sub-section (1) of Section 9 or Section 9-B] or sub-section (1) of Section 10 shall be leviable on the sale or purchase of such container or packing material at the rate of tax, if any, applicable to the sale, or as the case may be, the purchase of the goods themselves :

Provided that no tax under [sub-section (1) of Section 9 or Section 9-B] or subsection (1) of Section 10 shall be leviable where the container or packing material is sold or purchased along with the goods declared tax-fee under Section 15 or exempted in whole from payment of tax under Section 17.

Sec. 13 : Set off or refund of tax in respect of tax paid goods in certain circumstances

(1) Subject to such restrictions and conditions as may be prescribed a set off, as provided in this Section shall be granted in such manner as may be prescribed, to a registered dealer in respect of tax paid goods in the circumstances specified below - 1(a) when a registered dealer purchases any tax paid goods, other than the goods specified in Schedule-III, which have borne tax under *[sub-section (1) of Section 9 or Section 9-B] at full rate exceeding the concessional rate of four per cent or exceeding such other concessional rate as may be 2notified by the State Government in respect of such goods as raw material or incidental goods and subsequently consumes or uses such goods as raw material or incidental goods in the manufacture or in the processing of any goods or in the mining of any goods specified in Schedule- II which have not been exempted in whole under Section 17 and any such goods after their manufacture, processing or mining are sold by him in the State of Madhya Pradesh or in the course of inter-State trade or commerce or in the course of export out of the territory of India, he shall be entitled to set off at a rate equal to the difference between the tax at full rate under *[sub-section (1) of Section 9 or Section 9-B] and the tax at the concessional rate of four per cent or such other aforesaid concessional rate, as the case may be, in respect of such goods in such manner and on such quantum of the price at which such goods were purchased from a registered dealer, as may be prescribed.

3(b) (i) When a registered dealer sells any goods specified in Schedule II other than the goods specified in Schedule III which are tax paid goods in his hands to any person other than a registered dealer, or any agency and the sale of such goods is exempt from tax, in whole or in part, under a notification issued under Section 17 or under any provision of this Act, he shall, subject to the compliance of the restrictions and conditions if any specified in such notification or prescribed under such provision, be entitled to set off in respect of such goods at a rate equal to the difference between the tax at full rate on such goods under *[sub-section (1) of Section 9 or Section 9-B] and the tax at the rate specified under the said notification or prescribed under such provision in such manner and on such quantum of the price at which such goods were purchased from a registered dealer, as may be prescribed;

(ii) When a registered dealer purchases any goods specified in Schedule II other than the goods specified in Schedule III which are tax paid goods in his hands and the sale thereof by the selling registered dealer to him is otherwise exempt from tax, in ________________________________________________________________ ⇒ (Amendment) Act, 1997 w.e.f. 1.5.97.

1 In clause (a) of Sec. 13(1) for the words ‘four per cent’ wherever they occur, the words ‘two per cent’ have been substituted by MPCT (Amendment) Act, 1998. But, so far the same has not been made effective.

* Subs. for the words ‘sub-section (1) of Section 9’ wherever occurred in Section 13(1) by MPCT (Amendment) Act, 1997 w.e.f. 1.5.97.

2 See Noti. No. 22, dt. 1.4.95.

3 Clause (b) substituted by MPCT (Second Amendment) Act, 1996 w.e.f. 1.4.95.

- 13 - - 14 - whole or in part, under a notification issued under Section 17 or under any provision of this Act, the purchaser shall, subject to the compliance of the restrictions and conditions, if any, specified in such notification or prescribed under such provision, be entitled to set off in respect of such goods at a rate equal to the difference between the tax at full rate on such goods under *[sub-section (1) of Section 9 or Section 9-B] and the tax at the rate specified under the said notification or prescribed under such provision in such manner and on such quantum of the price at which such goods were purchased from the seller, as may be prescribed.

Explanation - When the amount of set off to which a registered dealer is entitled is not fully adjusted towards the tax payable by him, the balance of the amount of set off after adjustment shall be granted to him by way of refund of tax.

1(c) A registered dealer entitled to set off in respect of tax paid goods under clause (a) or clause (b) shall also be entitled to a set off in the amount of surcharge paid on such goods equal to fifteen per cent of the amount of set off admissible under the said clauses.

(2) Nothing in sub-section (1) shall apply to a registered dealer who holds a recognition certificate under Section 25.

Relevant Rules : Rule 29 Sec. 14 : Burden of proof The burden of proving that any sale or purchase effected by a dealer is not liable to tax under 2[Section 9 or Section 9-A] or Section 10 or Section 21 as the case may be, shall be on the dealer.

Sec. 15 : Tax free goods

(1) No tax shall be payable on the sales or purchase of goods specified in the second column of Schedule-I, subject to the restriction and exceptions, if any, set out in the corresponding entry in the third column thereof.

(2) The State Government may in respect of any goods, by notification amend Schedule-I, so as to include therein any goods not already specified or may relax or omit any of the conditions and exceptions set out in the corresponding entry in the third column thereof.

3Sec. 16 : Power of State Government to amend Schedule II

(1) The State Government may, by notification, amend the Schedule II and thereupon the said Schedule shall stand amended accordingly :

Provided that the rate of tax in respect of any goods specified therein other than the declared goods shall not exceed twice the original rate of tax specified in the Schedule :

Provided further that if any goods are transposed by deleting them from one of the parts of the Schedule and inserting or adding them to another, the rate of tax in respect of such goods shall not exceed twice the rate specified in the schedule for the 1 Clause (c) inserted by MPCT (Second Amendment) Act, 1997 w.e.f. 22.8.97. Earlier clause (c) inserted by MPCT (Amendment) Ordinance, 1997 w.e.f. 1.7.97 and repealed by MPCT (Second Amendment) Act, 1997 provided for set-off of surcharge @ 5%.

2 Subs. for the words ‘Section 9’ by MPCT (Second Amendment) Act, 1996 w.e.f. 1.4.95.

3 Sec. 16 substituted by MPCT (Second Amendment) Act, 1996 w.e.f. 1.4.95.

part where from such goods have been transposed.

(2) No notification enhancing the rate of tax, shall be issued under this Section without giving in the Gazette such previous notice as the State Government may consider reasonable of its intention to issue such notification;

(3) Every notification issued under sub-section (1) shall, as soon as may be, be laid on the table of the Legislative Assembly.

Sec. 17 : Saving

(1) The State Government may, by notification and subject to such restrictions and conditions as may be specified therein, exempt whether prospectively or retrospectively,

(i) (a) any class of dealers; or

(b) any goods or class of goods, in whole or in part, from the payment of tax under this Act for such period as may be specified in the notification;

(ii) any dealer or class of dealers from any provision of this Act or any provision of a rule made under Section 80 for such period as may be specified in the notification.

(2) Any notification issued under this Section may be rescinded before the expiry of the period for which it was to have remained in force and on such rescission such notification shall cease to be in force. A notification rescinding an earlier notification shall have prospective effect.

(3) Notwithstanding the repeal of the Madhya Pradesh General Sales Tax Act, 1958 (No.2 of 1959) (hereinafter referred to as the repealed Act) the State Government may, by notification exempt -

(i) (a) any class of dealers; or

(b) any goods or class of goods in whole or in part, from the payment of tax under the repealed Act; or

(ii) any dealer or class of dealers from any provision of the repealed Act or the provision of any rule made thereunder, for any period before the commencement of this Act and for that purpose it shall and shall always be deemed that the provision of Section 12 of the repealed Act have revived for the purpose of such exemption.

Sec. 18 : Licensing of certain dealers

(1) The Commissioner may subject to such conditions as may be prescribed, license under this Section any registered dealer who carries on business in any of the goods specified in Schedule-IV and whose yearly turnover in respect of all goods specified in Schedule-I and Schedule-II does not ordinarily exceed such amount as may be prescribed, on advance payment of such annual licence fee as may be determined in relation to such registered dealer in accordance with the rules made in this behalf and the provisions of Sections 26, 27, 42 and 43, shall not apply to such registered dealer in respect of his business relating to goods specified in Schedule-I and IV during the period in which the licence issued to him under this Section remain in force.

(2) The licence fee recovered from a registered dealer under sub-section (1) shall be deemed to be in lieu of the tax payable in respect of the sales of goods specified in the licence during the currency of the licence.

(3) The State Government may, from time to time, by notification, amend Schedule- IV so as to include any goods not already specified therein.

Sec. 19 : Composition of tax by certain registered dealers

(1)(a) The Commissioner may, subject to such restrictions and conditions as may be prescribed, permit any registered dealer, who carries on wholly or partly the business of supplying goods in the course of execution of works contract entered into by him, to pay in lieu of tax payable by him under this Act a lumpsum at such rate, not exceeding 15 per cent, as may be prescribed, determined in the prescribed manner, by way of composition.

- 15 - - 16 -

(b) The provisions of Sections 26, 27, 42 and 43 shall not apply to a registered dealer to whom permission to pay a lumpsum by way of composition is granted under clause

(a) in relation to the period for and the goods in respect of which such composition of tax has been made and who complies with the restrictions and conditions prescribed under the said clause.

(2) For the purpose of determination of the lumpsum by way of composition under clause (a) of sub-section (1), the State Government may prescribe different rates for different kinds of contracts.

Relevant Rules & Forms : Rule 31; Form 37 & 38 Sec. 20 : Liability to tax of persons not observing conditions of exemption or licence If any restrictions or conditions notified under Section 17 or imposed under Section 18, are not complied with by a dealer, the sales or purchases, as the case may be, of the dealer may with effect from the commencement of the year in which such noncompliance took place, be assessed under Section 27 to tax payable under Section 9, or Section 10 and the licence fee, if any, recovered from such dealer, shall be adjusted towards the tax so assessed.

Sec. 21 : Liability of a dealer purchasing exempted goods Notwithstanding anything contained in Section 20, where any condition of exemption imposed under Section 17 requires that the registered dealer purchasing the goods exempted in whole or in part from the payment of tax under this Act, shall furnish a declaration or certificate to the effect that -

(a) the goods purchased shall be used by him for a specified purpose and within a specified time; or

(b) the goods purchased shall be disposed of by him in a specified manner and within a specified time;

and contrary to such declaration or certificate, if such dealer -

(i) does not use the goods for the specified purpose or within the specified time, or

(ii) does not dispose of the goods in the specified manner or within the specified time, he shall be liable to pay the tax on the purchase price of such goods at the full rate mentioned in column (3) of Schedule-II and penalty equal to 25 per cent of the amount of tax payable under this Act :

Provided that where the goods were exempted from payment of tax in part, the registered dealer instead of paying the tax at the full rate, shall be liable to pay the difference between the tax already paid and the tax payable at the rate mentioned in column (3) of Schedule-II on the purchase price of such goods, in addition to any penalty, that may be imposed on him under this Section.

Sec. 22 : Registration of dealers

(1) Every dealer whose turnover during the twelve months immediately preceding the commencement of this Act exceeds the limits specified in sub-section (5) of Section 5 shall get himself registered in the prescribed manner before such date as may be notified in this behalf.

(2) Every dealer other than a dealer to whom sub-section (1) applies shall be liable to get himself registered within the prescribed period from the date on which his turnover in a year first exceeds the limits specified in sub-section (5) of Section 5.

(3) Every dealer required by sub-section (1) or sub-section (2) or sub-section (1) of Section 49 to be registered shall make an application in the prescribed form and manner giving correct and complete particulars therein. Such application shall be accompanied by an affidavit in support of the particulars given in the application as also a satisfactory proof of payment of a registration fee of five hundred rupees in that behalf in the prescribed manner to the Commissioner :

Provided that no such fee shall be payable where such application is made by a person holding a provisional registration certificate under Section 24.

(4) (a) On the day the application is received, the said authority shall grant the applicant a provisional registration certificate in the prescribed form.

(b) After issue of the provisional registration certificate the Commissioner shall require the applicant to produce before him evidence and documents in respect of the particulars given in the application as also the accounts relating to the business for verification. On production of the evidence, documents and accounts the Commissioner shall verify the particulars given in the application. On being satisfied about the correctness of the particulars, the Commissioner shall issue to the applicant a permanent registration certificate in the prescribed form not later than thirty days of the date of receipt of the application for grant of a registration certificate.

(c) If the Commissioner is satisfied that the particulars given by the applicant in his application are incorrect or that the applicant has misrepresented certain facts, he shall, after giving the applicant an opportunity of being heard and recording the reasons in writing reject the application and cancel the provisional registration certificate issued to the applicant from the date of its issue, not later than thirty days of the date of receipt of the application.

(5) The registration certificate granted under sub-section (4) shall take effect from -

(a) in a case where a dealer required to get himself registered under sub-section

(2) has applied for registration within the prescribed period, the date on which his turnover in a year first exceeds the limits specified in sub-section (5) of Section 5;

(b) in a case where a dealer required to get himself registered under sub-section

(2) has applied for registration after the expiry of the prescribed period, the date on which he applies for registration;

(1) of Section 49 has applied for registration within thirty days of the transfer of business, the date from which the ownership of the business is entirely transferred to him; and

(d) in a case where a dealer required to get himself registered under sub-section

(1) of Section 49, has applied for registration after the expiry of thirty days of the transfer of business, the date on which he applies for registration.

(6) Without prejudice to the provisions of sub-section (6) of Section 27 when a dealer has without reasonable cause, failed to get himself registered within the prescribed time as required by sub-section (1) or sub-section (2), the Commissioner may, after giving such dealer a reasonable opportunity of being heard, direct him to pay by way of penalty in addition to the fee payable, a sum of rupees five hundred.

(7) Every dealer who at the commencement of this Act holds a registration certificate under the provisions of the Act repealed by this Act shall, on such commencement, be deemed for all purposes of this Act to be a dealer registered and holding a registration certificate under this Section.

(8) (a) The Commissioner shall -

(i) on an application made by a dealer for amendment of his registration certificate in pursuance of the provisions of Section 48 or otherwise, amend the registration certificate of the dealer or reject the application within 30 days of the date of receipt of such application, after making such enquiry as he deems fit; and

(ii) on being satisfied that the registration certificate issued to a dealer requires - 17 - - 18 - amendment with regard to certain particulars specified therein, amend the registration certificate after giving the dealer an opportunity of being heard.

(b) (i) When the registration certificate is amended under sub-clause (i) of clause (a) in pursuance of any of the events specified in clause (a) or clause (b) or clause (c) of Section 48, such amendment shall take effect from the date such event has taken place and in all other cases falling under the said sub-clause the amendment shall take effect from the date of application. An amendment made under sub-clause (ii) of clause (a) shall take effect from the date of order for making such amendment.

(ii) where any application for amendment, other than the amendment requested for in pursuance of any event specified in Section 48 is not rejected or the registration certificate is not amended within the time specified in sub-clause (i) of clause (a), the dealer shall be entitled to have the registration certificate amended in accordance with his application from the date of application for amendment and the Commissioner shall amend the certificate accordingly.

(9) When -

(a) a registered dealer discontinues or transfers his business; or

(b) the liability of a registered dealer to pay tax ceases in accordance with the provisions of sub-section (3) of Section 5; or

(d) a registered dealer is in arrears of tax or penalty or any other sum due under this Act; or

(e) the Commissioner for reasons to be recorded in writing, is of the opinion that the registration certificate should be cancelled for any other reason;

the Commissioner may either on his own motion or on the application of the dealer in this behalf cancel the registration certificate but notwithstanding such cancellation the dealer shall be liable to pay tax for the period during which his registration certificate remained in force.

(10)(a) When a registration certificate is cancelled under sub-section (9) in any case other than that of a dissolution of firm or entire transfer of the business of dealer, the dealer shall be liable to pay tax on his stock of goods remaining unsold at the time of cancellation of the registration certificate.

(b) (i) any dealer whose application for registration is rejected under clause (c) of sub-section (4); or

(ii) any dealer whose registration certificate is cancelled under clause (d) or clause (e) of sub-section (9);

he shall, for the purpose of sub-section (6) of Section 27 be deemed to be a dealer, who has failed to apply for registration, but he shall not be liable to pay any penalty under the said sub-section.

Relevant Rules & Forms : Rule 7 to 16; Form 4 to 7 Sec. 23 : Voluntary registration of dealers

(1) (a) A dealer or person who desires to obtain a voluntary registration certificate, though he is not liable to pay tax under Section 5, may make an application in the prescribed form to the Commissioner giving correct and complete particulars therein.

Such application shall be accompanied by an affidavit in support of the particulars given in the application as also a satisfactory proof of payment of registration fee of five hundred rupees, in that behalf. Where the application is made by a dealer or person undertaking works contract the application shall also be accompanied by a copy of award of the contracts :

Provided that no such fee shall be payable where the application is made by a person holding a provisional registration certificate under Section 24.

(b) On the day the application is received the said authority shall grant the applicant a provisional registration certificate in the prescribed form.

(c) After issue of the provisional registration certificate the Commissioner shall require the applicant to produce before him evidence and documents in respect of the particulars given in the application as also the accounts relating to the business for verification. On production of the evidence, documents and accounts the Commissioner shall verify the particulars given in the application. On being satisfied about the correctness of the particulars the Commissioner shall issue to the applicant a permanent registration certificate in the prescribed form not later than thirty days of the date of receipt of the application for grant of a registration certificate.

(d) If on verification of the records produced by the applicant the Commissioner is satisfied that the particulars given by the applicant in his application are incorrect or that the applicant has misrepresented certain facts, he shall, after giving the applicant an opportunity of being heard and recording the reasons in writing, reject the application and cancel the provisional registration certificate issued to the applicant from the date of its issue, not later than thirty days of the date of receipt of the application.

(2) The certificate granted under sub-section (1) shall take effect from the date on which the dealer has applied for registration and every dealer who has been registered under this Section shall, notwithstanding the provisions of Section 5 be liable to pay tax under this Act, during the period from the said date till his registration certificate remains in force.

Relevant Rules & Forms : Rule 7 to 16; Form 4 to 7 Sec. 24 : Provisional registration of intending manufacturers

(1) Any person intending to establish a business in the State for the purpose of manufacturing goods for sale of value exceeding rupees fifty thousand a year and who is registered with the Industries Department of the State Government for establishing a small scale industrial unit in the State or who is issued a licence wherever necessary or has sent a memorandum of information to the Central Government to establish a new industrial undertaking in the State under the provisions of the Industries (Development and Regulation) Act, 1951 (No. 65 of 1951) may, notwithstanding that he is not liable for registration under Section 22 make an application to the Commissioner accompanied by a satisfactory proof of payment of registration fee of five hundred rupees in that behalf in the prescribed manner for grant of a provisional registration certificate under this Act.

(2) On the day the application is received the said authority shall grant the applicant a provisional registration certificate in the prescribed form.

(3) The provisional registration certificate granted under sub-section (2) shall take effect from the date on which the person had applied for registration and notwithstanding the provisions of Section 5 every person who has been granted a provisional registration certificate under this Section shall, during the period from such date till such certificate remains in force, be liable to pay tax under this Act.

(4) A provisional registration certificate granted under this Section shall be in force for such period as may be specified therein and the provisions of sub-section (8) and

(10) of Section 22, shall, so far as may be, apply in respect thereto

Provided that the Commissioner on an application made by the holder of such certificate before the expiry of the period of validity mentioned in the certificate, may for reasons to be recorded in writing, extend the period specified in the provisional registration certificate by a further period not exceeding six months on each occasion.

(5) Every person who has been granted a provisional registration certificate under - 19 - - 20 - this Section shall for the purpose of this Act, be deemed to be a registered dealer.

(6) Where a person who has been granted a provisional registration certificate under this Section starts manufacturing and selling of goods during the period the provisional registration certificate is in force, he shall get himself registered under Section 22 or Section 23 as the case may be, before the date on which the provisional registration certificate is due to expire and on the grant of the registration certificate under Section 22 or Section 23 as the case may be, which shall take effect from the date on which application has been made for registration, the provisional registration certificate shall cease to be in force as from such date.

(7) If a person who has been granted a provisional registration certificate under this Section fails to start selling goods manufactured by him within the period specified in such certificate or within the period extended by the Commissioner, as the case may be, he shall, if he had purchased any goods for use as 1[raw material or incidental goods] on payment of tax in accordance with the provisions of clause (b) of subsection (2) of Section 9 be liable to pay as penalty an amount not less than the difference between the amount of tax on the sales of such goods at the full rate applicable thereto under sub-section (1) of Section 9 and the amount of tax paid under clause (b) of sub-section (2) thereof but not exceeding one and one quarter times the amount of tax at such full rate as the Commissioner may determine having regard to the circumstances of the case.

(8) The provisions of this Section shall also apply to the Central Government or the State Government or public sector undertaking intending to establish any new industrial undertaking in the State.

Explanation - In this Section the expression ‘Industrial Undertaking’ shall have the meaning assigned thereto in clause (d) of Section 3 of the Industries (Development and Regulation) Act, 1951 (No. 65 of 1951).

Relevant Rules & Forms : Rule 9 to 17; Form 5 to 9 Sec. 25 : Issue of recognition certificate to certain dealers

(1) Where the Commissioner is satisfied that the business of a registered dealer who manufactures taxable goods is likely to suffer in view of the provisions of Section 13 relating to grant of refund or set off in respect of the use of tax paid goods as raw material or incidental goods in such manufacture either due to the fact that the goods manufactured are liable to be taxed at substantially lower rates than the rate of tax on goods used as raw material or incidental goods or that the goods manufactured are wholly or substantially sold in the course of export out of the territory of India, or for any other reason, he may issue a recognition certificate to such registered dealer in such form and in such manner and subject to such restrictions and conditions as may be prescribed so as to enable him to purchase the goods for use as raw material or incidental goods in accordance with the provisions of clause (b) of sub-section (2) of Section 9.

(2) If the Commissioner is satisfied that -

(a) any registered dealer has obtained a recognition certificate by misrepresenting the facts, or 1 Subs. for the words ‘raw material’ by MPCT (Second Amendment) Act, 1996 w.e.f. 1.4.95.

(b) the reasons due to which any registered dealer was found eligible for holding a recognition certificate no longer exist, 1[or

(c) a registered dealer who makes default in furnishing return/or is in arrears of tax or penalty or any other sum due under this Act.]

he may after giving such dealer a reasonable opportunity of being heard, cancel the recognition certificate issued to him. The order of cancellation of such certificate shall take effect from the date of communication of such order to the dealer.

Relevant Rules & Forms : Rule 18; Form 10 & 11 Sec. 26 : Returns 2(1) (i) Every such dealer as may be required so to do by the Commissioner by notice served in the prescribed manner; and

(ii) Every registered dealer; and

(iii) Every dealer whose registration certificate has been cancelled under clause (d) or

(e) of sub-section (9) of Section 22, shall furnish return in such form, in such manner, for such period, by such dates and to such authority as may be prescribed :

Provided that the Commissioner may, subject to such terms and conditions as may be prescribed, exempt any such dealer from furnishing such returns or permit any such dealer to furnish them for such different period, in such other form and to such other authority, as he may direct.

(2) Every dealer required to file return under sub-section (1) shall pay the full amount of tax payable according to the return as required by sub-section (2) of Section 32 or the difference of the amount of tax payable according to the revised return as required by sub-section (3) of the said Section and the full amount of interest, if any, payable under clause (a) or clause (b) of sub-section (4) and shall furnish the proof of such payment along with the return under sub-section (1) or the revised return under sub-section (3).

(3) If any dealer discovers any omission, error or wrong statement in any return furnished by him under sub-section (1) he may furnish a revised return in the prescribed manner and within the prescribed time.

(4) 3(a) If a dealer required to file return under sub-section (1) - ⇒ 1 The word ‘or’ and clause (c) inserted by MPCT (Second Amendment) Act, 1997 w.e.f. 1.9.97.

2 Sub-Section (1) & (2) substituted by MPCT (Second Amendment) Act, 1997 w.e.f. 1.9.97.

Earlier to substitution sub-section (1) & (2) read as under :

(1) Every such dealer as may be required so to do by the Commissioner by notice served in the prescribed manner and every registered dealer shall furnish returns in such form, in such manner, for such period, by such dates and to such authority as may be prescribed :

(2) Every registered dealer shall pay the full amount of tax payable according to the return as required by sub-section (2) of Section 32 and the amount of interest, if any, payable under clause (a) of sub-section (4) and shall furnish the proof of such payment along with the return under sub-section (1).

3 Clause (a) substituted by MPCT (Second Amendment) Act, 1997 w.e.f. 1.9.97. Earlier to substitution clause (a) read as under :

“If a registered dealer fails without sufficient cause -

(i) to pay the amount of tax payable according to a return for any period in the manner prescribed under sub-section (2) of Section 32; or

(ii) to furnish his return under sub-section (1) or a revised return under sub-section (3) for any period in the manner or by the date prescribed thereunder; or

(iii) fails to furnish return, such dealer shall, be liable to pay, in respect of tax that may be payable according to such return or the tax payable for the period relating to such return, interest at the rate of two per cent per month from the date the tax so payable had become due to the date of its payment or - 21 - - 22 - ________________________________________________________________ ⇒

(i) fails without sufficient cause to pay the amount of tax payable according to a return for any period in the manner prescribed under sub-section (2) of Section 32; or

(ii) files a revised return under sub-section (3) showing a higher amount of tax to be due than was shown by him in the original return; or

(iii) fails to furnish return, such dealer shall be liable to pay interest in respect of, -

(a) the tax payable by him according to the return referred to in sub-clause (i); or

(b) the difference of the amount of tax payable according to the revised return; or

(c) the tax payable for the period for which he has failed to furnish return, at the rate of 2 per cent per month from the date the tax so payable had become due to the date of its payment or to the date of order of assessment, whichever is earlier.

Explanation - For the purpose of this clause, -

(1) Where the period of default covers a period less than a month the interest payable in respect of such period shall be computed proportionately.

(2) ‘month’ shall mean thirty days.

(b) If a registered dealer having filed a return under sub-section (1) or a revised return under sub-section (3) for any period and paid the tax payable according to such return or revised return after the time prescribed therefor, fails to pay interest along with such return or revised return in accordance with the provisions of clause (a) the Commissioner may, after giving the dealer a reasonable opportunity of being heard, direct him to pay in addition to the tax payable or paid and the interest payable by him, by way of penalty a sum equal to two per cent per month from the date such interest had become due to the date of its payment or to the date of order of assessment, whichever is earlier.

(c) (i) A dealer fails without sufficient cause to comply with the requirement of notice issued under sub-section (1); or

(ii) a registered dealer having paid the tax payable according to a return in time fails to furnish the return in time; or

(iii) a registered dealer having paid the tax payable according to a return and furnished the return in time, fails to furnish along with the return proof of payments made in accordance with the provisions of sub-section (2);

the Commissioner may after giving the dealer a reasonable opportunity of being heard, direct him to pay, in addition to any tax payable or paid by him by way of penalty a sum not exceeding fifty rupees for each occasion of default subject to a maximum of five hundred rupees in each case.

(d) Where no tax is payable by a registered dealer committing a default under sub-clause (ii) or sub-clause (iii) of clause (a), the Commissioner may after giving to the date of order of assessment, whichever is earlier.

Explanation - For the purpose of this clause :

(1) Where the period of default covers a period less than a month the interest payable in respect of such period shall be computed proportionately.

(2) ‘month’ shall mean thirty days.” such dealer a reasonable opportunity of being heard direct him to pay by way of penalty a sum not exceeding five hundred rupees.

Relevant Rule & Form : Rule 19 to 25, 32 to 34, 37; Form 12 to 25 Sec. 27 : Assessment of tax

(1) The amount of tax due from a registered dealer shall be assessed separately for each year :

Provided that where such dealer fails to furnish any return by the prescribed date or knowingly furnishes incomplete or incorrect return for any period of any year, the Commissioner may, at any time, assess such dealer to tax for such period :

Provided further that the Commissioner may, subject to such conditions as may be prescribed and for reasons to be recorded in writing, assess the tax due from any such dealer at any time for any part of a year.

(2) (a) where a registered dealer, -

(i) who is an importer or a manufacturer and whose gross turnover in a year does not exceed rupees ten lacs; or

(ii) who is neither an importer nor a manufacturer and whose gross turnover in a year does not exceed rupees forty lacs, has furnished the return or returns for any year and paid the tax payable according to such return or returns within the prescribed time or has furnished the return or returns for any year after the prescribed time but not later than four months of the expiry of the period to which the return relates and has paid the tax according to such return or returns along with the interest payable under clause (a) of sub-section (4) of Section 26 shall be eligible for summary assessment under this Section.

(b) On receipt of the return or returns for any such year from a registered dealer in the manner specified in clause (a) the Commissioner shall, subject to the restrictions and conditions in the rules that may be made for the purpose and without requiring the presence of such dealer and calling for his accounts, accept such return or returns and send an intimation of acceptance to the dealer within such time as may be prescribed. Such intimation of acceptance shall be deemed to be an order of assessment for the purpose of this Act.

(c) Notwithstanding the provisions of clause (b) the Commissioner shall direct every year that five per cent of the dealers in each circle eligible for summary assessment under clause (a) to be selected on sample basis in the manner decided by the Commissioner, be assessed under sub-section (4) or sub-section (5), as the case may be.

(3) In every other case, the Commissioner shall serve the dealer with a notice appointing a place and day and directing him :

(i) to appear in person or by an agent entitled to appear in accordance with the provisions of Section 31; or

(ii) to produce evidence or have it produced in support of the returns; or

(iii) to produce or cause to be produced any accounts, registers, cash memoranda or other documents as may be considered necessary by the Commissioner for the purpose.

(4) After hearing the dealer or his agent and examining the evidence produced in compliance with the requirements of clause (ii) or clause (iii) of sub-section (3) and such further evidence as the Commissioner may require, the Commissioner shall assess him to tax.

(5) If a registered dealer -

(a) has not furnished returns in respect of any period by the prescribed date; or

(b) has knowingly furnished incomplete or incorrect returns for any period; or

(d) has not maintained any accounts or the accounts maintained by him are not in accordance with the provisions of sub-section (1) of Section 42 or has not - 23 - - 24 - regularly employed any method of accounting or if the method employed is such that in the opinion of the Commissioner assessment cannot properly be made on the basis thereof, the Commissioner shall in the prescribed manner assess the dealer to the best of his judgement.

(6) (a) If upon any information which has come into his possession, the Commissioner is satisfied that any dealer, who has been liable to pay tax in respect of any period has failed to apply for registration, the Commissioner shall within 1[one calendar year] from the date of completion of the proceedings under sub-section (1) of Section 6, after giving the dealer a reasonable opportunity of being heard, proceed in such manner as may be prescribed, to assess to the best of his judgement the amount of tax due from the dealer in respect of the whole of such period and the Commissioner may if he is satisfied that the dealer has willfully failed to apply for registration direct that the dealer shall pay by way of penalty in addition to the amount of tax so assessed, a sum 2[not less than two times but not exceeding five times] of that amount.

(b) In respect of periods subsequent to the period referred to in clause (a), the amount of tax due from a dealer referred to in the said clause shall be assessed separately for each year.

3(7) If the Commissioner is satisfied that a dealer has, with a view to evade payment of tax, shown in his accounts sales or purchases of any goods at prices which are abnormally low compared to the prevailing market prices of such goods, the Commissioner may, after making such enquiry as may be necessary and after giving the dealer a reasonable opportunity of being heard, assess or re-assess the dealer to the best of his judgement.

(8) The assessment shall be made under this Section -

(i) in respect of a registered dealer and a dealer referred to in clause (b) of subsection (6) within a period of two calendar years from the end of the period for which assessment is to be made; and

(ii) in respect of a dealer who has failed to apply for registration, within a period of two calendar years from the commencement of proceedings under subsection (6) :

Provided that -

(a) Where a fresh assessment has to be made to give effect to any finding or direction contained in any order under Sections 61, 62 or 70 or to any order of the Civil Court, High Court or Supreme Court, such assessment shall be made within 1 Subs. for the words ‘twelve months’ by MPCT (Second Amendment) Act, 1997 w.e.f. 1.9.97.

2 Subs. for the words ‘not exceeding one and half times’ w.e.f. 1.9.97 by ibid.

3 Sub-section (7) substituted by MPCT (Amendment) Act, 1999 w.e.f. 1.5.99. Earlier to substitution sub-section (7) read as under :

(7) If the Commissioner is satisfied that a dealer has with a view to evade payment of tax, effected sales mostly to favoured buyers at prices which are abnormally low in comparison to the prices charged by other dealers similarly circumstanced, the Commissioner, may after giving the dealer a reasonable opportunity of being heard assess or reassess the dealer to the best of his judgement.

a period of two calendar years from the date of the order containing such finding or direction or the order of the Civil Court, High Court or Supreme Court, as the case may be. If for any reason such fresh assessment is not made within the specified period, the Commissioner shall take steps to ensure that assessment is made as expeditiously as possible;

(b) Where an order of ex-parte assessment is set-aside and case reopened under Section 72 for making a fresh assessment, such fresh assessment shall be made within a period of six calendar months from the date of setting aside the ex-parte order of assessment or within the period laid down in clause (i) whichever is later; and

(c) Nothing contained in this sub-section shall apply to proceedings initiated under Section 28 or Section 29 or any proceeding other than assessment of tax that may be instituted under any other provisions of this Act.

(9) Notwithstanding anything contained in sub-section (8), where assessment proceedings in respect of any dealer relating to any year cannot be completed before the expiry of the period specified therefor in the said sub-section, the State Government, may by notification, for reasons to be recorded in writing, extend the period for the completion of the assessment proceedings in respect of such dealers by such further period as may be specified in such notification.

Relevant Rules/ Forms : Rule 46, 47, 48, 51 to 53 & 57; Form 46, 47, 49 & 50 Sec. 28 : Assessment of turnover escaping assessment

(1) Where an assessment has been made under this Act or the Act repealed by this Act and if for any reason any sale or purchase of goods chargeable to tax under this Act or the Act repealed by this Act during any period has been under assessed or has escaped assessment or assessed at a lower rate or any deduction has been wrongly made therefrom or a set off has been wrongly allowed, the Commissioner may, at any time within five calendar years from the date of order of assessment after giving the dealer a reasonable opportunity of being heard and after making such enquiry as he considers necessary, proceed in such manner as may be prescribed to reassess within a period of two calendar years from the commencement of such proceedings the tax payable by such dealer and the Commissioner may, where the omission leading to such reassessment is attributable to the dealer, direct that the dealer shall pay by way of penalty in addition to the amount of tax so assessed, a sum not exceeding that amount.

(2) The reassessment made under sub-section (1) shall be at the rate at which it would have been made had there been no under assessment or escapement or wrong deduction.

(3) If for any reason the licence fee, registration fee or exemption fee has escaped levy or has been charged at a lower rate in any year, the Commissioner may at any time within a period of three calendar years next succeeding that to which such fee relates, levy the correct amount of the fee payable in respect of that year after issuing a notice to the dealer and after making such enquiry as he considers necessary and the Commissioner may direct that the dealer shall pay by way of penalty in addition to the amount of fee so levied, a sum equal to that amount.

Relevant Rules : Rule 48 & 50; Form 47 Sec. 29 : Power of reassessment in certain cases

(1) Where any order passed in respect of a dealer for any period is rendered erroneous and prejudicial to the interest of revenue consequent to or in the light of any judgement or order of any Court or tribunal, which has become final, then notwithstanding anything contained in this Act the Commissioner may at any time within a period of three years from the date of such judgement or order initiate proceedings to reassess the tax payable by such dealer.

(2) The reassessment proceedings initiated under sub-section (1) shall be completed as far as may be within a period of two calendar years from the date of initiation of such proceedings.

- 25 - - 26 -

(3) No order of reassessment under this Section shall be passed without giving to the dealer a reasonable opportunity of being heard.

Relevant Rules & Forms : Rule 48; Form 47 Sec. 30 : Exclusion of time in assessment proceedings

(1) Nothing contained in Section 28 limiting the time within which any 1[reassessment] may be made, shall apply to a 1[re-assessment] made in consequence of or to give effect to any finding or direction contained in an order under Sections 61, 62 or 70.

(2) In computing the period of limitation prescribed for assessment or reassessment as the case may be, under Section 27 or Section 28, the time during which any assessment or reassessment proceedings remained stayed under the order of any civil or other competent court, or under special or general order of the Commissioner issued under Section 67 shall be excluded.

(3) Where any turnover or a part thereof of any dealer has been assessed to tax under this Act or under any of the Acts repealed by Section 52 of Act No. 2 of 1959 and the Act repealed by this Act (hereinafter referred to as the repealed Acts) and not under the Central Sales Tax Act, 1956 (No.74 of 1956) or vice versa, but subsequently as a result of any order passed under Section 61 or Section 62 or Section 70 or under the corresponding provisions of any of the repealed Acts or of an order passed by any civil or any other competent Court, it is held to be assessable under the Central Sales Tax Act, 1956 (No.74 of 1956) or under this Act or under any of the repealed Acts, as the case may be, then in consequence of such order or to give effect to any finding or direction contained in such order, such turnover or part thereof, shall, irrespective of the fact that the order previously passed in the other case under the Central Sales Tax Act, 1956 (No. 74 of 1956) or under this Act or under any of the repealed Acts, as the case may be, has become final, be assessed or re-assessed to tax, as the case may be, at any time within five years from the date of such order, under the relevant Act, notwithstanding anything contained in Section 27 or Section 28 or of the corresponding provisions in the relevant repealed Acts limiting the time within which any assessment or reassessment may be made.

Sec. 31 : Appearance before taxing authorities

(1) Any dealer who is entitled or required to attend or appear before any officer appointed under Section 3 in connection with any proceedings under this Act, otherwise than when required under Section 55 to attend personally for examination on oath or affirmation, may attend or appear by a person authorised by him in writing in this behalf being a relative of or a person regularly employed by, the dealer or a legal practitioner or a chartered accountant or a tax practitioner.

(2) For the purposes of sub-section (1) any person who -

(a) before coming into force of this Act, had been enrolled as a Sales Tax Practitioner under the Act repealed by this Act; or

(b) holds a degree in law or commerce or the degree of Bachelor of Arts with economics as one of his subjects conferred by any Indian university 1 As per the original Hindi version of the Act and also as per the corresponding Sec. 20 of the MPGST Act, here the words should be ‘assessment or re-assessment’.

incorporated by any law for the time being in force or by any other university as the State Government may, from time to time by notification, specify; or

(c) does not possess any of the qualifications referred to in sub-clause (b) but has held a post in the Commercial Tax Department not below the rank of an Assistant Sales Tax Officer / Assistant Commercial Tax Officer for at least ten years and is granted a certificate by the Commissioner having regard to his record of service in the department as being a fit and proper person to appear in any proceeding under this Act, shall be entitled to appear as a Tax Practitioner.

(3) Every tax practitioner and every person who is entitled to appear as a tax practitioner in any proceedings under this Act shall within such time as may be prescribed get himself enrolled as such on payment of such fee as may be prescribed.

(4) If the Commissioner is satisfied that the application for enrollment is in order, he shall enroll the applicant and grant him a certificate of enrollment in the prescribed form. If the Commissioner, after making such enquiry as he deems fit, and after giving the applicant a reasonable opportunity of being heard is not so satisfied, he shall, for reasons to be recorded in writing, reject the application.

(5) Notwithstanding anything contained in sub-section (1) and (2) no person who has held any post in the Sales Tax / Commercial Tax Department not below the rank of a Sales Tax / Commercial Tax Inspector shall be entitled to represent any dealer in any proceeding under this Act :

(i) if he has at any time, passed any order in such proceeding, while he was holding any post in the department;

(ii) if the place of business of the dealer whom he desires to represent is in the district or circle within the territorial jurisdiction of which the head quarter of the office of the Sales Tax / Commercial Tax department in which he had held such post was located, unless a period of two years has elapsed since he ceased to hold that post :

Provided that nothing in clause (ii) shall apply if the representation is to be made before an officer holding a rank higher than the rank last held by such person.

(6) No person who has been dismissed from Government service shall be qualified to represent any dealer under sub-section (1).

(7) If any legal practitioner or a chartered accountant is found guilty of misconduct in connection with any proceedings under this Act or the Central Sales Tax Act, 1956 (No.74 of 1956) or the Act repealed by this Act by the authority empowered to take disciplinary action against members of the profession to which he belongs or if any other person is found guilty of such misconduct by the Commissioner, the Commissioner may direct that he shall be thenceforward disqualified to represent a dealer under sub-section (1) :

Provided that no such person shall be disqualified unless he is given a reasonable opportunity of being heard.

(8) Any person whose application for enrollment is rejected under sub-section (4) or who is disqualified under sub-section (7) may within sixty days of the direction relating thereto, appeal to the Tribunal to have the direction cancelled.

Relevant Rules & Forms : Rule 94; Form 71, 72 & 73 Sec. 32 : Payment and recovery of tax and other dues under this Act

(1) The tax payable for each year shall be paid in the manner hereinafter provided at such intervals as may be prescribed.

1(2) Before any registered dealer furnishes any return as required by sub-section (1) of Section 26, he shall pay into a Government treasury, in the prescribed manner and time, the full amount of tax payable according to such return and the amount of 1 Sub-section (2) & (3) substituted by MPCT (Second Amendment) Act, 1996 w.e.f. 1.4.95.

- 27 - - 28 - interest, if any, payable by him under the provisions of this Act.

(3) If a revised return furnished by a registered dealer in accordance with sub-section

(3) of Section 26 shows a higher amount of tax to be due than was shown in the original return, he shall pay the difference and the interest payable, if any, under the provisions of this Act into a Government treasury.

(4) Notwithstanding anything contained in sub-section (2) or sub-section (3), where the registered dealer is the Central Government or a State Government or any of their departments, the Commissioner may, subject to such terms and conditions as may be prescribed, permit such dealer to pay the amount of tax by book adjustment.

(5) Notwithstanding anything contained in any other provisions of this Act, but subject to such conditions as may be prescribed, a registered dealer who belongs to any of the categories specified in Section 37 and has been granted the facility of the deferment of payment of tax, is liable to pay tax under the provisions of sub-section

(2) or sub-section (3) or sub-section (6) and where a loan liability equal to the amount of tax payable by the dealer as aforesaid for the period of eligibility to avail of the said facility has been created by any agency or agencies as the State Government may, by general or special order, specify then such tax shall be deemed to have been paid in accordance with the provisions of sub-section (2) or sub-section (3) or subsection (6), as the case may be.

(6) (i) The amount of tax -

(a) due where the returns were furnished without full payment of tax, or

(b) assessed under sub-section (1), (2), (4) and (5) of Section 27 less the sum, if any, already paid by the dealer or person in respect of the said year together with interest, if any, required to be paid and the penalty if any, directed to be paid under sub-section (4) of Section 26, or

(c) assessed under sub-section (6) or sub-section (7) of Section 27 or Section 28 together with the interest and/ or penalty, if any, directed to be paid thereunder, and

(ii) the amount of penalty if any imposed or directed to be paid under any provisions of this Act not covered under sub-clause (b) and (c) of clause (i), shall be paid by the dealer or person into a Government treasury by such date as may be specified in a notice to be issued by the Commissioner for this purpose and the date to be so specified which shall be not less than thirty days from the date of service of such notice.

(7) Where on an admission of first appeal or a second appeal, the appellate authority stays the recovery of any amount of tax assessed or penalty imposed and on decision of such appeal by it the amount of tax or penalty so stayed has been maintained in whole or in part by it, the dealer shall be liable to pay interest on such amount at the rate of two per cent per month for the period from the date on which the recovery of such amount was stayed by the appellate authority to the date of its payment after the decision in appeal.

(8) If, for any reason, a dealer or person, is unable to pay the tax assessed or the penalty imposed on him under this Act or the tax payable by him in advance of assessment within the time specified therefor in the notice of demand, he may apply to the Commissioner in writing to grant him further time for payment of such amount or to permit him to pay such amount in instalments. Subject to such conditions and restriction as may be prescribed, the Commissioner may grant further time to such dealer or person or allow him to pay such amount in instalments on such condition as he may deem fit to impose. Where any extension of time or permission to pay by instalments is granted, the dealer or person shall be liable to pay interest on such amounts from the last date on which the tax and / or penalty was due to be paid in accordance with such notice of demand. The interest shall be paid at eighteen per cent per annum for the period commencing from such last date.

(9) Where a dealer or person does not pay the tax assessed on him or the penalty imposed on him or any other amount due from him under this Act within the time specified therefor in the notice of demand and the dealer or person, has not obtained any order under sub-section (8) or has failed to pay the tax or penalty in accordance with the order passed by the Commissioner under sub-section (8), the Commissioner shall, after giving the dealer or person a reasonable opportunity of being heard, direct that such dealer or person shall, in addition to the amount due, pay by way of penalty a sum equal to 2 per cent of the amount of tax, penalty or any other amount due, for every month, for the period for which payment has been delayed by him after the last date on which such tax, penalty or other amount was due to be paid.

(10) (a) Where the State Government after such enquiry as it may deem fit, is of the opinion that genuine hardship is being caused to a dealer or person due to any proceedings initiated for recovery of any amount of tax, interest or penalty or other dues outstanding against him, the State Government may, subject to such restrictions and conditions as may be prescribed, grant to the dealer or person additional time to pay such amount of t

Chhattisgarh Commercial Tax Act 1994

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