32 In computing the period of limitation specified for assessment or reassessment, as the case may be, the time during which any assessment or reassessment proceeding remained stayed under the order of a competent Court shall be excluded.
42. Power of Reassessment in certain Cases —
(1) Where any order passed by the prescribed authority in respect of a dealer for any period is found to be erroneous or prejudicial to the interest of revenue consequent to, or in the light of any judgment or order of any Court or Tribunal, which has become final, then notwithstanding anything contained in this Act, the prescribed authority may proceed to reassess the tax payable by the dealer in accordance with such judgment or order, at any time within a period of three years from the date of the Judgment or order.
(2) Where any Court or Tribunal passes an order in appeal or revision to the effect that any tax assessed under this Act or the Central Sales Tax Act, 1956 should have been assessed under the provision of a law other than that under which it was assessed, then in consequence of such order or to give effect to any finding or direction contained in such order such turnover and part thereof, may be assessed or reassessed, as the case may be, to a tax at any time within two years from the date of such order, notwithstanding any limitation period which would otherwise be applicable to, the assessment or reassessment made.
(3) Where an objection or observation relating to either in fact or in law, has been made by the Comptroller and Auditor-General of India, in respect to an assessment or reassessment made or on scrutiny of any return filed u/s 33 of this Act; the prescribed authority shall proceed to re-assess the dealer with respect to whose assessment or re-assessment or scrutiny, as the case may be, the objection or the observation has been made.
Provided that no such order shall be passed without serving upon the dealer concerned a notice requiring him to file, within one month of the date of the service of such notice, a reply to such objection or the observation as raised by the Comptroller and Auditor General.
(Added by Jharkhand VAT Ordinance, 2011 – w.e.f. 01.04.2006)
43. Payment and Recovery of Tax, Penalty and Interest —
(1) Tax shall be paid in the manner herein provided and at such intervals as may be prescribed.
(2) A registered dealer furnishing returns under sub-Section (1) of Section 29 shall pay into Government treasury, in such manner and at such interval as may be prescribed, the amount of tax due from him for the period covered under the return along with the amount of penalty or interest or both payable by him under Section 29 and shall furnish a receipt from the Treasury, showing the payment of such amount.
(3) A registered dealer furnishing a revised return in accordance with the sub-Section (3) of Section 29, which shows that a higher amount of tax is due than what was paid or payable in accordance with the original return, shall furnish along with the return a receipt showing payment of the differential amount in the manner provided in sub- Section (2).
(4) (a) The amount of tax-
(i) due where returns have been filed without full payment of tax due;
or
(ii) assessed under Section 35, Section 36 and Section 37 less the sum already paid in respect of such period together with interest, if any, required to be paid and the penalty, if any, imposed to be paid under sub-Section (6) of Section 37 or sub-Section (2) of Section 38.
(b) the amount of penalty imposed under any provision of this Act not covered under sub-clause (ii) of clause (a); or
(a) any other dues under this Act;
shall be paid by the dealer or the person concerned in the Government Treasury, or in such other manner, as may be prescribed by such date as may be specified in a notice issued by the prescribed authority for this purpose and the date to be so 33 specified shall, ordinarily, not be less than 30 days from the date of service of such notice;
Provided that the prescribed authority may, in respect of any particular dealer or person and for reason to be recorded in writing extend the date of such payment or allow such dealer or person to make payment of such dues in installment.
Provided further that where the prescribed authority considers it expedient in the interest of State revenue, it may, for the reasons to be recorded in writing require any dealer, or person to make payment forthwith.
(5) Notwithstanding any contained in the Act, the Prescribed Authority may, subject to such conditions and restrictions as may be prescribed, in respect of any particular dealer or person and for reasons to be recorded in writing, extend the date of such payment and allow such dealer or person to pay any demand in installments on the condition that the said dealer or the person furnishes sufficient security to the satisfaction of Prescribed Authority.
(6) Where a dealer fails to make payment of the tax assessed or interest levied or penalty imposed on him or any other amount due from him under this Act within thirty days of the date of service of the notice of demand, the prescribed authority shall, after giving the dealer reasonable opportunity of being heard, direct that such dealer shall, in addition to the amount due pay, by way of penalty, a sum equal to 2% of such amount of tax, penalty, interest or any other amount due, for every month, for the period for which payment has been delayed by him after the date on which such amount was due to be paid.
(7) The amount that remains unpaid even after the due date of payment or installment granted in pursuance of the notice issued under sub-Section (4) and sub-Section (6) shall be recoverable as arrears of land revenue.
Provided that where an appeal in respect of such amount has been entertained under Section 79, the appellate authority may, subject to such rule as may be made by the State Government under this Act, stay recovery of such amount or portion thereof for so long as the appeal remains pending or for such shorter period as the said authority may consider to be adequate.
(8) Where in pursuance of sub-Section (6), any proceeding for the recovery as an arrears of land revenue of any tax, penalty, interest or part thereof or any other amount remaining unpaid, have been commenced and the amount of tax, penalty, interest or any other amount is subsequently enhanced or reduced as a result of any assessment made or order passed in the appeal revision or rectification under this Act, the prescribed authority may, in such manner and within such period as may be prescribed, inform the dealer and the authority by whom or under whose order the recovery is to be made and there upon such proceeding may be continued as if the amount of tax, penalty, interest or any other amount as modified, enhanced or reduced, had been substituted for the tax, penalty, interest or any other amount which was to be recovered under sub-Section (7).
44. *Special Provisions relating to Deduction of Tax at source in certain Cases —
(1) The State Government may, having regard to the effective recovery of tax, require in respect of contractors or any other class or classes of dealers that any person making payment of any valuable consideration to them for the execution of a works contract in the State involving transfer of property in goods, whether as goods or in some other form or for sale of goods in the State, as the case may be, shall, at the time of making payment, whether by cash, adjustment, credit to the account, recovery of dues or in any other manner, deduct tax in advance therefrom which shall be calculated by multiplying the amount paid in any manner with such rate not exceeding ten per cent, as the State Government may, by notification in the Official Gazette, specify and different rates may be specified for different works contracts or class or classes of dealers, and that such person shall keep record, of the payments made and, of the tax deducted in advance therefrom, for a period of five years from the close of the year when the payments were made and shall produce such record before the prescribed authority when so required for carrying out the purposes of this Act.
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Provided that, no deduction shall be admissible, in the circumstances, where a works contractor opts for Composition Scheme of Tax under Section 58 of the Act.
(2) The provisions of sub-Section (1) shall not apply where the amount or the aggregate of the amounts paid or likely to be paid during a year by any person to a dealer does not or is not likely to exceed one lakh rupees or such other amount as may be prescribed.
(3) Every person who is required to deduct tax in advance under sub-Section (1) shall furnish such returns at such intervals by such dates in such manner to such authority as may be prescribed and shall pay the tax deducted according to such returns to the State Government in such manner as may be prescribed.
(4) Every person referred to in sub-Section (3) shall issue to the payee a certificate of tax deduction and payment in such form in such manner as may be prescribed.
(5) Any tax paid to the State Government in accordance with sub-Section (3) shall be adjustable by the payee, on the authority of the certificate issued to him under sub- Section (4), with the tax payable by him under this Act and the assessing authority shall, on furnishing of such certificate to it, allow the benefit of such adjustment after due verification of the payment.
(6) If any person fails to deduct the whole or any part of the tax as required by or under the provisions of sub-Section (1), or fails to pay the whole or any part of the tax as required by or under sub-Section (3), then, the authority referred to in sub-Section
(3) may, at any time within five years of the close of the year when he failed to do so, by order in writing, direct him, after giving him a reasonable opportunity of being heard, to pay, by way of penalty, a sum equal to the amount of tax which he failed to deduct or pay as aforesaid.
*(deleted vide notification no. LG 13/leg dated 01.02.2018)
45. *Special Provision relating to Advance Recovery of Tax on Sales and Supplies to Governments and Other Persons —
(1) Notwithstanding anything contained in this Act but subject to the provisions of Section 14, 49 and 57, any person responsible for paying sale price or any amount purporting to be the full or part payment of sale price in respect of sales or supplies of taxable goods exceeding rupees one lac during a year made to-
(i) the State Government; or
(ii) Central Government; or
(iii) a Company, Corporation, Board, authority, undertaking or any other body owned, financed or controlled either wholly or partly by the State Government or the Central Government shall, at the time of payment, subject to such conditions and restrictions as may be prescribed, deduct an amount at the rate as may be specified by the State Government by a notification on account of tax on the amount of such payment:
Provided that the rate or rates to be specified by the State Government shall not be more than the rate of tax applicable to the goods sold or supplied.
(2) Notwithstanding any law or contract to the contrary, the person making such deduction shall be lawfully competent to make such deduction.
(3) Payment of the amount deducted under sub-Section (1) into the Government Treasury in the prescribed manner, shall be the liability of the person making such deduction.
(4) Payment of the amount deducted under sub-Section (1) into the Government Treasury by the person making the deduction shall be deemed to be a payment by or on behalf of the seller or supplier concerned.
(5) If any person contravenes any or all of the provisions of sub-Section (1), (2) or (3), he shall be liable to pay, by way of penalty, a sum not exceeding twice the amount of tax deductible under sub-Section (1):
Provided that such penalty shall not be imposed unless the person contravening the provisions is given an opportunity of being heard by the prescribed authority.
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(6) The provisions of Section 43 and 47 for recovery of any amount of tax due from a dealer shall, mutatis mutandis, apply for recovery of any amount of tax deducted and or any penalty imposed but not deposited under this Section.
Explanation:- A “person” in this Section includes all officers or authorities who are competent or authorised to make payment of the sale-price including the tax charged in respect of sales to State Government or Central Government or to Company, Corporation, Board, authority, undertaking or any other body owned, financed or controlled wholly or partly by the State Government or the Central Government.
(7) The provisions of sub-Sections (4) and (5) of Section 44 of the Act shall, mutatis mutandis, apply, so far as it relates, to issuance of certificate to person from whose bills deduction has been made and for filing of quarterly statements.
*(deleted vide notification no. LG 13/leg dated 01.02.2018)
46. Special mode of Recovery —
(1) Notwithstanding anything contained in Section 43 or any law or contract to the contrary, the prescribed authority may at any time or from time to time, by notice in writing, ( a copy of which shall be forwarded to the dealer at his last known address) direct-
(a) Any person from whom any money is due or may become due to a dealer who has failed to comply with a notice of demand served under Section 43, or
(b) Any person who holds or may subsequently hold any money for, or on account of such dealer, to pay into the Government Treasury in the manner specified in the notice, either forthwith or upon the money becoming due or being held, or at or within the time specified in the notice (not being before money becomes due or is held) so much of the money as is sufficient to pay the amount of tax due from the dealer, together with penalty, as the case may be, under this Act, or part or the whole of the money when it is equal to or less than that amount.
(2) The prescribed authority issuing the notice under sub-Section (1) may at any time or from time to time, amend or revoke any such notice or extend the time for making such payment in pursuance of the notice.
(3) Any person making any payment in compliance with a notice issued under sub- Section (1) shall be deemed to have made the payment under the authority of the dealer and the receipt from the Government Treasury shall construe a good and sufficient discharge of the liability of such person to the dealer to the extent of the amount specified in the receipt.
(4) Any person discharging any liability to the dealer after service on him the notice issued under sub-Section (1) shall, if the liability is discharged in any manner other than that required under the said notice, be personally liable to the State Government to the extent of the liability discharged or to the extent of the liability of the dealer for tax or penalty, or both, whichever is less.
(5) Where a person on whom a notice is served under sub-Section (1) proves to the satisfaction of the prescribed authority that the money demanded or any part thereof were not due to the dealer, or that he did not hold any money for or on account of the dealer, at the time the notice was served on him, nor is the money demanded or any part thereof is likely to become due to the dealer or be held for or on account of the dealer, then such person shall not be liable to pay into Govt. treasury any such money or part thereof.
(6) Any amount of money which a person is required to pay under sub-Section (1) or for which he is personally liable under sub-Section (4) shall, if it remains unpaid, be recoverable in the same manner as provided under sub-Section (7) of Section 43.
(7) No action shall be taken under this Section in respect of any amount of tax, interest and penalty, if any, the date of payment of which has been extended or the realization of which has been stayed, under this Act during the period of such extension or stay.
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Provided that nothing in this Section shall operate to affect any action taken or prevent any action that may be or is being taken under Section 43 for recovery from the dealer the amount due from him.
47. Collection of Tax by Dealer —
(1) If any person -
(a) not being a dealer liable to pay tax under this Act, collects any sum by way of tax; or
(b) being a registered dealer, collects any amount by way of tax in excess of the tax payable by him shall be liable, in addition to the tax for which he may be liable, to a penalty of an amount equal to twice the sum so collected by way of tax.
(2) If the prescribed authority in the course of any proceeding under this Act or otherwise has reason to believe that any person has become liable to a penalty, or forfeiture, or both, under sub-Section (1), he shall serve on such person a notice in the prescribed form requiring him to appear and show cause as to why a penalty or forfeiture or both of any sum as provided under sub-Section (1) should not be imposed on him.
(3) The prescribed authority shall thereupon hold an inquiry as he deems necessary and shall make such order as he deems fit.
48. Forfeiture of Tax Collected in Violation of this Act —
(1) Any amount collected by any person in contravention of the provisions of Clause (b) of sub-Section (1) of Section 47 or any amount collected by any person by way of tax, by whatever name called, or in any other manner not payable under any provision of this Act shall be liable to forfeiture to the State Government.
(2) If the Prescribed authority, in the course of any proceeding under this Act or otherwise, has reason to believe that any amount is liable for forfeiture under sub- Section (2) of Section 47, he shall serve, on the person who has collected such amount, a notice in the prescribed form requiring to show cause why the said amount should not be forfeited to the State Government and on receipt of the reply, if any, and after making such inquiries as may be deemed fit, he shall make an order of forfeiture if the amount is found so liable.
(3) Where an order of forfeiture under sub-Section (2) of Section 47 has been made, the person making the unauthorized collection shall forthwith pay the amount so forfeited to the State Government, if it has not already been paid and on his failure to do so, such amount shall be recoverable from him as if it were a tax due from him.
(4) Where an order for forfeiture is passed, the Commissioner shall publish or cause to be published, in the prescribed manner, a notice for information of the persons from whom the amount so forfeited had been collected giving such details as may be prescribed.
(5) On the publication of the notice under sub-Section (4), a refund of such amount or part thereof may be claimed from the State Government within one year from the date of publication of the said notice by the person from whom it was unauthorisedly realized by way of tax and for this purpose the person claiming the refund shall make an application in the prescribed form.
(6) On receipt of an application under sub-Section (5) the Commissioner shall hold such enquiry as he deems fit and if he is satisfied that the claims is valid and admissible and that the amount so claimed as refund was actually paid to the State Government and no refund or remission in respect of that amount was granted, the Commissioner shall refund such amount or any part thereof to the person concerned.
(7) Notwithstanding anything contained in this Act or in any other law for the time being in force, where any amount collection by any person is forfeited to the State Government under this Section, such forfeiture shall, if the amount forfeited has been paid to the State Government, discharge him of the liability to refund the amount to the person from whom it was so collected.
49. Sales not liable to Tax and Zero Rated Sales —
(1) Notwithstanding anything contained in this Act, a Value Added Tax shall not be imposed under this Act;
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(i) Where such sale or purchase takes place out side the State of Jharkhand; or
(ii) Where such sale or purchase takes place in the course of Import of goods into the territory of India or Export of goods out of the territory of India.
(2)* The following shall be Zero-rated sales for the purpose of this Act, and shall be eligible for Input Tax Credit under sub-Section (4) of Section 18 of this Act -
(i) Sale of taxable goods in the course of inter-State trade and commerce falling within the scope of Section 3 of the Central Sales Tax Act, 1956.
(ii) Sale of goods falling within the scope of sub-Sections (1) and (3) of Section 5 of the Central Sales Tax Act, 1956.
(iii) Sale of goods: to an unit located in Special Economic Zone or a STP unit or an EHTP unit or an EOU unit.
*(deleted vide notification no. LG 13/leg dated 01.02.2018)
(3) For the purpose of this Section, whether a sale or purchase takes place;
(i) outside the State of Jharkhand or
(ii) in the course of inter-state trade and commerce; or
(iii) in the course of Import of goods into the territory of India or Export of goods out of the territory of India.
shall be determined in accordance with the provisions of Section 3, 4 and 5 of the Central Sales Tax Act, 1956.
50. Tax to be first charge on Property —
(1) Notwithstanding anything to the contrary contained in any law for the time being in force, any amount payable by a dealer under this Act on account of tax, penalty or interest or any amount which a person required to pay under this Act shall be a first charge on the property of the dealer or such person.
(2) Where, during the pendency of any proceeding under this Act or under the Repealed Act, any person creates a charge on or parts with the possession: by way of Sale, Mortgage, Gift, Exchange or any other mode of Transfer whatsoever, of any of his Assets in favour of any other person with the intention to defraud Revenue, such Charge or Transfer shall be void, as against any claim in respect of any tax or any other sum payable by such person, as a result of completion of the said proceeding.