'~l,\ i  t ~' \,   ' billho if" ;e tim cllntral sales tax (amendment) bill, icj70 a billfurther to amend the centlral scifa 'i'~ act, 1_ b~ it enacted by parliament in the twenty-first year ot the republic ofrf:diiii,j~: __ 1 (1) this act may be called the central sales tax (amendment) short, act, 1970 utle and c!odl~ 5(2,· it 'shall come into force on such date as the central 'government ~ duly,' by'nottft~at1on in the oftlcial gazette, appojnl meat: amem- men - , ~, ,i us' seetian'6 ,of the central sales taxaet, 19&8 (heretuftler refenett  "the p1'idcipal act), fer' lub-eectton (2), the fon~, 1ubaeettimi aiau i·substituted, namely:-8(z) notwftlwtanarq ailythidc codtajaed ha iub-mtfloa (1) or i~ ~u01l (ia), where  of ad7 , in the cdui'ie of' •••  u trade or commercehu either occaaioned the moveaaent , 'ada pqdii  from ode state to another or hal been eftected b, - tnaifer of docn'dedtt of tui to lucb podl cl~ their movement hoia ode sfate to adother, ady subsequent  ie durin, nch mov  t - , ij' by - tradder of doc:umub of title to ucb pod,-30 (a) to the govemment, or (b)'"  ~ dealer other diu tit gevena  t, jathe   el the delcriptioa refenoodto  ~ (3) of sac-i, iibaii be aempt from tu ujuier thb··aet: provided that no such subsequent sale shall be exempt from td uncler this sub-seetion unless the dealer electing the sale furnishes  to the prescribed authority in the prescribed manner and within the preterlbed time,-(a) a certificate duly filled and signed by the reeistered s dealer from whom the goods were purehased containing the prescribed particulars in a preseribed fond obtained from the prescribed authority; and (b) if the subsequent sale is made,-(i) to a registered dealer, a declaration referred to in 10 clause (a) of sub-section (4) of section 8, or (fl>' to the government, not being a registered dealer, a certificate referred to in clause (b) of sub-section (4) of lec'tlod 8:1 provided further that it shall not be neceaaary to turmah the de- 15 claratlon or the c:ertificate referred to in clauie (b) of the precedtn proviso in respect of a subsequent sale of goods if,-(a) the sale or purchase of such goods is, under the sales tax law of the appropriate stare, exempt from tax generally or 18 subject to tax generally at a rate which is lower than three per 20 cent (whether called a tax or fee or by any other name); and (b) the dealer effecting such subsequent sale proves to the satisfaction of the authority referred to in the preceding proviso that such sale is of the nature referred to in clause (a) or clause (b) of this sub-section" a5 3 after section 6 of the principal act, the following section shall be inserted, namely:-inaertien of new section ga  burden of proof, etc, in cue of tranafer of ,ooci8 claimed otherwiae than by wayot sale "6a (1) where any d-ler claims that be is not liable to pay ~ under this act, in r~peet of any goods, on the pvund that the movement of such good from one state to another was occasioned b7 30 realoll of transfer of such goods by him to any other place of his bulla  or to his qent or principal, as the cue may be, add dot 1t~ i'e8iod of sale, the burden of providl( that the movemedt of tb8te goods wa so oecaaioned shall be on that dealer and for this purpoae  he may produce before the prescribed authority, within the preacrib- 35 eel time, a declantion, duly 61led pd siped by the principal olker of the other place of business, or hi ageot or principal, al the case may be, contalniq the prescribed parti~lars in the prescribed fond obtained from the preseribecl authority elong with the evidence of despatch of such aoocis 4q ' (2) if the p~escribed authority is satisfied after such enquiry as he ,may deem necessary that the particulars contairied in the de--claration are true, he shall make an order to that effect and thereupon the movement of goods to which the declaration relates shall be deemed for the purposes of this act to have been occasioned other- 45 wise than as a result of sale" 4 in section 7 of the principal act,-amend (0) after sub-section (2), the following sub-seetion • 1_1t be in ment of serted, name]y:_ ---section 7 10 is ii (2~) wh~re it appears necessary to the authority to whom an application is made under sub-section (1) or sub-aectfon (2) ~ to do for the proper realisation of the tax payable under this  ct 0'1' for the proper custody and use of the forms referred to in clause (a) of the first proviso to sub-section (2) of section 6 or sub-secbon (1) of section 6a or clause (a) of sub-section (4) of section 8, he may, by an order in writing and for reasons to be recorded therein, impose as a condition for the issue of· a certf flcate of registration a requirement that the dealer shan furnish in the prescribed manner and within such time as may be specifted in the order such security as may be so specifted for all or any of the aforesaid purposes"; , , (b) in sub-section (3), after the words "rules made' thereunder", the  worda, brackets, figure and letter --and the conditf01'1, if any imposed under sub-section (2a), has been complied with" had be inserted; 20 (c) after sub·section (3), the following subsections shall be inserted, namely:-, "(3a) where it appears necessary to the authority granting a certfflcate of registration under this section 90 to do for the proper realisation of tax payable under this act or for the pro-3$ per custody and use of the forms ref~d to in sub-section (2a), he may, at any time while such certificate is in force, by an order in writing and for reasons to be recorded tberefn, require the dealer, to whom the certificate has been 'fi'anted; to furnish within such time as' may be specified in the order and 30 in the prescribed manner such security and, if the dealer has already furnished any security in pu1'suance of an order under this sub-section or sub-section (2a) , such additional security all may be specified in the order, for all or any of the aforesaid purposes 35 "  (3b) no dealer shall be required to furnish my  ~urity undf'r sub-section (2a) or sub-section· (3a)" unless he has been given an opportunity of being heard and the amount of securfty that may be demanded from any dealer under either or both of the aforesaid sub-8ectfons shall be reasonable having regard tn 40 all the circumstances of the case and shall not in the aggregate exceed fifty thousand rupeel (3c) where the security furnjshed by a dealer udder subsection (2a) or sub-section (3a) is in the form of a surety bond and the surety becomes insolvent or dies the dealer halj, "'ithin jifteen days of the occurrence of anv of the aforesaid events, mform the authority wanting the certificate of registratlon and shall within thirty days of such occurrence furnish a fresh surety bond or furnish in the prescrf~ tnan~~ ft'_ lw'f''''tv for the amount of the bond (3d) the authority gran~g the certjacate of registration may by order and for good and sufficient cause forfeit the whole dr any part of the eecurity ·furnished··by a dealer,-(a) for realising any amount of tax or penalty payable by the dealer; 5  (~) if f the dealer is ·found to have miluaedaj;ly of the fonns refelted to in sub-section (2a) or to haveiililed to keep them in proper custody: pj::ovid~ that no order shad be passed under this subsection witbout giving the dealer on opportunity of being heard 10 (3e) where by reason of an <1rder under sub-seetion (3d), the security furnished by any dealer is renderedtnsufbeient, he shall make up the deficiency in suell manner' ed wttjiin such time as may be preserlbed (3f) the authority issuing, the -forms  refetred tf) in sub- 15 seetigll '(za)may refuse· to isslle auchfql'id8,to&,dealer  w~has taud '~·comply with an order ,umier that erlb-s4u:tiod gr ,ubsection (sa), or with the provisions of sub-section (3c) ~gl',,ub­section (3e), until the dealer has complied with such order or sueh provisions, as the case may be  (3g) the authority, granting a certificate of registration may,·onapplteatlon·bythe dealer to whom it has'been granted, ,on1er the- reftmd· of any amount or parlthereof deposited by the ijeaier'by weydf seeurity under this sectisn, ifitisjiot,required for the ptu'pciri of this act"; ¥ (el) in rsub~ion ' (4), in clallse (b), for the words "or has ceued,to exilt",tbewords, brackets, figures andjetters "or has ceas-·ed toexistf or' baa-filled without sufficient:cause, to comply with an 'or4er  under wbsection (3a) or with the provisions of, sub-section (jc)  or,su~seetion -(3e) or has failed to pay any tax· of, penalty pay- 30 6le ,umerwa ,act" ·shall be substituted s in section 8 of the principal act,-- amendmento! section 8 (a) far sub-section (2a), the fol1owin~ sub-section shall be and ihil! bfllieemec1' to havp been :sublt!tuted with ~/from· the 1st day of oetober t_ namelr-  , ir'~'" ~  ,-  ---, 3$ "(~a)notwithstanding anything eontaine8in ~section (-la, (jf seclion 6 or sub-section (1) cil"8ub-9er:tion(~) 'of this seetion, the tax payable under this act· by a 'dealer an: bis turnover in 80 far as the tumoveror any' part' thereof relates to the ale ofany goods, the sale or as the case may be, the purchase 40 of which is, under the sales tax law of the 8pp1 oprlate state, exempt from tax generady or subject to tax generany at a rate which is lower than three ope!' eent (wliether caned a tax or fee or by any other name), shall be nn or as the case maybe, shall be calculated at the lower rate 4' e:mlmurtion-'for the l'>urposes of· this sub-sec&n a :late or purchase of any goods $qall i10t be d~'to,be __ ~pt from tax j :8ed8raijy under the sales tax 1a of ~der thatlathe w theqpj'apiate state it   :w sale or ·purchase ofluch ~ja qein t only  m"pecifted cll'cumstanc:es:or· under specified conditi ph is levied on the sale or purchase of such goods at s=i~t ~a::: or otherwise than with reference to the turnover of the foqda_: '(fi)hlsub-aeetion (4), after· the words' cfq),thit'pnlgriijedtborfty in !he prescribed manner", the words "anel wtebia',tjae,,mb--ed~ume abail be fnseried· , 10 (c) for sub-section (5), the follawing sub-sectio~ ~ll be 8ubl tinted, ~amely,-h($) notwithstanding anything 'codtailllcha rthiat iii!iitftll; the state govermn~t may, if it is satisfiedthat~it isrn4lcell8lt'ifo to do in th~ public interest, by notification intheomdal,a~~, -:'!ct7~ect to such conditions  as may be spee~ therein is (g) that no tax under this aet shan be'jnl,'luty dealer havillg,hib pjace of busiae5s in thestate in respect of tje:8i1es by him, in the course of inter:-sta~ tracfe or commerce, from any such place of business of any iueb goods or classes of goods as may be·specfw in t1ae~qqi2c~ or that the tax on such sales shall be calculated at such lower rates than those specifted in sub-sectfon (i) or iub4ection <j) as may be mentioned in the notification; (b) that in respect qf all sales qf go~s or sai~ of such alasses o1goods as may be specified in the notfftcatlon, which are made, in the course of inter-state trade or corprnerce, by a~y dealer having his place of business in the state or by any class of such d~alers as may be speclfted· in the notfftcatlon to anyperson or to s:uch class of persons u'maybe ospeclfted in the notification n<1 tax under this act ahad be plyahle or the tax on such sales shall be calculated at such· lower 1"ite than 1boie specified in· sub<tsection· (1) or aub-aedion ell " may be mentioned in the notiftcation" ,i:jp,aectiocl9 of  the ;principal act, fn sub-~on (2), for the words amend 35 4'ze"'ds,penalties,", the words "refunds, rebates, pena1ttes," ·ban be ment of substituted 8iction  'i   sec,tion~aof tlle principal act shall be re-numbered  sub-leetlon el) tb~f and af4!r sub-sectfon (1) 88 110 reonumber8d; 1be,foltnl(ng "ectf~s shan be inaerted, namely:-40 '-(1) /my amount coueeted or  purporting  to have been con~ "", ftgimered' dealer or -any other person by way of ~ under thil aet 'in any state or part thereof in contraventiqn of the provflfotll of this act shall not be retained by such dealer or other person b~1 shall be deposited by bim,-(4) in such manner and within sueh period u,myrbc jii'es-cribed by the state government 1'ijth the· authority  powered to'8siiess, or as·the case may be, re-auess,cou'!ctand enforce pay-!iriqt 'of any tax tinder t hp slederal ealts < wt ii/waf tm apf'"t'r priate state or part u1ereofj and fb) where then:! is no general sales tax law in sueh state or part thereof, in such manner, within such period and with such authority as may be prescribed by the central government, and notwithstanding anything contained in this act or in any law for the time being in force, the refund of the amount so deposited 5  'may be claimed only by the person from whom such dealer or other pel"bon collected ft (3) if any question arises as to whether any registerpd dealer or other person has collected any alll{)unt by way of tax un rier this act in any state or part thereof in contravention of the provisions of sub-i~ section (1), it shall be decided by the authority referred to in elause (4) or, as the case may be, in clause (b) of sub-section (2), after giving an opportunity to the dealer or other person concerned to be beard and making such inquiry as that authority may deem fit (4) the prescribed authority shall, in the prescribed manner, re- is fund to a person making an at>plication in this behalf arty amount collected from such person and deposited under s\lb-section (2): provided that no such application shall be entertained unless it is made within three years of the date of such deposit  i in aeetion 10 of tbeprinclpal act,-20 amendmentof section 10 (a) for clause (a), the following clauses shall be substituted, namely:-ii (a) furnishes a certificate or declaration, under sub-section (2) of section 8 or sub-section (1) of section 6a or sub-section  (4) of section 8, which he knows, or has reason to believe, to be a, false; or :; (aa) fails to get himself registered as required by section 7, or fails to comply with an order under sub-section (3a) or with requirements of sub-section (3c) or sub-section (3e), of that  section;"; 30 (b) kir clause (f), the following clause shall be substituted, namely:-"(f) collects any amount by way of tax in contravention of tbe provisions of sub-section (1) of section 9a or fails to deposit the amount required to be deposited under sub-section (2) of 35 that section:" amell"" mentor aecuon loa t in section loa of the principal act, in sub-section (1), for the worc;ts '"the tax which would have been levied under this act in respect of the sale to blm of the goods if the oftence had not been committed", the \yards, brackets and figures "the tax which would have been levied under 40 sub-section (2) of section 8 in respect of tbe sale to him of the goods, if the sale had been a sale falling within that sub-section" shall be substituted  ie in section 13 of the principal act,- (a) in sub-sectton (1) ,-amendmentof aeet10n 11 (i) in clause (b), after the words "the deductions which 45 may be made", the words, brackets, letters and figures "under cleqse (c) qf sub-section (1) of section sa" shall be insertec;\ (ii) in clause (d), the words "and the state of ori' f b form or certificate" shall be inserted at the end; gm 0 sue (iii) after clause (f), the following clau8l!ll aball be jnaerted, namely:-5 (ff) t~e manner in which, the period wit}pn which and the authonty with whom deposits may be made under claule (b) of sub-section (2) of section 9a" , (fff) the authority by whom and the manner in whlch amounts deposited under clause (b) of ijubeectton (a) of to sect~on 9a may be refunded under sub-section (4) of· that section;"; (b) for sub-section (2), the following sub-tection aball be mbltituted, namely:- ,f "(2) every rule made by the central goftl'mlent udd  15 sub-section (1) shall be laid as soon 88 may be after it 11 made, before each house of parliament while it 11 in luon for a total period of thirty days which may be comprijed in ode ieiiidon or in two successive sessions, and if, before the expiry of the hllfon in which it is so laid or the session immediately fol1owing, both ~ 0 houses agree in making any modification in the rule· or both houses agree that the rule should not be· made, - the rule ihall thereafter have effect only in such modi1led form or be of no e1!ect, ~sthe case may be; so, however, that any such modulcatlod or annulment shan be without prejudice 110 the vaudlty of any-25 thing previously done under that rule"; (c) in sub-section (4) ,-(i) after clause (ci),the following c1auje·bu be 1naerted, n~,ely:-30 "(00) the manner in whfch aeearjty may be furnllhed under sulb-section (2a) or sub-aectlon (sa) or itjbeedion  (3c), of section 7 and the manner in ',!bid1 and the time within which any deficiency may be made up under iuhection (3e) of that section;"; (ii) far clause (e), the following clauie ihajl be iubatituted, lnamely:- 35 4s ie (e) the authority from whom, the condjuona subjeet to which and the fees subject to paymedt of which any form of certi1icate prescdbed under clause (ci) of the ftrbt proviso to sub-section (2) of section 8 or of declaratioll preioeribed under sub-section (1) of sectton 6a or ~on (4) of section 8 may be obtained, the milmer in wb1ch iuch forms shall be kept in cnbtody and reconii relating thereto maintained, the manner in which any iuch form may be ujed and any such certi1lcate or declaration may be fum1ahed and the time within which any iilich certiftcate or declaration shall beproduoed or turnfsba!l;"; : (iiij after -clause (g) t the following clause· shall be inserted, namelyi-" (ii)  themadderm which, the period within which and ihe authority with whom deposits may be made udder clause (4) of sub-section (2) of section 9a and the authority by 5 whom and the manner in which amounts deposited under diat clause may be refunded under sulb-sectlon (4) of that section"; (d) -in sub"section (5), for the words "the state government", the words -"the central government or as the case may be, the ie state' government" shall be substituted  uln netioa 14d the principal aet,-amend· mentot aect10d 1~ (4) for clause (i), the following clause aballbe and be deemed alw"tlt,baveo been- substituted,namely:-"(0 coal, including coke id au us forms but,excluding char- is coal;'!; (b) for- etanse (iv) ,the following ctause shatt· be substituted, nn~  u(lv) i trad adateel; tllatiato,-co pia tron and cast iron fdcluding fniotmoulu, bottom ~ plata, runner :rap ana iron skull acaapa (ii) steel semis (b'lgots; slabs, blooms and 'bill'ets of all qualities, shapes and s1zes)'a (iii) akelp bart, tin baril, sheet barb, jiaban and i1eep-,liimii ·s, <iv) steel bart (rounds, rods, aquares, 88_ 0ictag0da and heueoas,~ plainrah ribbec1rol',twistedj ,id eoil form as well as straight leagtba) i (t) 'itet!1 ib!actmlls (anjles,' ,ojdi, cjwme1a, teeb, sheet plling -seet!ons, z sections -or' ~ other tolled 'eections) ; 30 (vi) sheets, hoons, strips and skelp, both black and gelwrj\iitwj,-:hot adliuc0j4:mueci, piaift'amb::mrup1e<i, in all qua· utl, in atratght lengths and in con form,  i ftiiid and m rivetted condition; :(vii): ldtea both plain and chequered in au quautles; (viii) discs, ridgs, forgings and steel' eatings; (u=)  tool, alloy and special steels of any of the above cate&ol1-j ! i i (i:) ' deelmeltlftl--ap ~ 611 termj'!detidmg ateel ikull, tuft\tft~ "1dld :borlftgll; -(zij' bteeltubes, both welded and _mlen, of all dial'  and lenjb, iuludidg -tube &udii:' (xii) tin-plates, both hot dipped tnd electrolytic and tid· free pbltes; j ~ (xiii) fish plate bars, bearing plate bars, croaing sleeper bars, fish plates, bearing plates, c:rcab:iia1  ad  sed steel sleepers, rails-heavy and light crane rails: 5 (xiv) wheels, tyres, axles and wheel sets;  (xv) wire rods and wires-rolled, drawn, galvanised alummised, tinned or c1l1ted sl'ch as by copper; 1·1 (m) defectives, r jects cuttings or end ,  the above categories;"; 10 (c) for clause (v), the following clause shall be subltttuted, namely:-"(v) jute that is to say, the fibre extracted from plants belonging to the species cotchot1ls capsularis andcorchorus olicp-15 nus and the fibre known as mesta or bimli extracted from plants of the species hibiscus cannabinus and hibiscua 84'bdclri6cz-var altissima and the fibre known as sunn or sunnhemp extracted from plants of the species crotalaria ;uncea whether baled or otherwise;" ; ao (d) for clause (vi), the following clause shall be substituted, namely:- (vi) oilseeds that, is to say-(i) groundnut or peanut (atflchis hypogutl): (ii) sesamum or til (sesamum orientcde); (iii) cotton seed (g08aypium spp); 25 (iv) soyabean (glycine se;4); (v) rapebeed and muat4rd-(1) toria (brasica campestris v4t toria); (2) rai (brassica ;uncea); (3) jamba-taramira (eruca satit/4); (4) sarson, yellow and brown (branca c4mpet&n var sarson); (5) banarasi rai or true mustard (brasdca fttgra); 35 (vi) linseed (linum usiutilftmum) i (vii) castor (ricinus communtb); (viii) coconut (ie copra excluding tender coconuts) (cocos nucifera); (i%) sunflower (helianthua 4nfl,'lu); (x) niger seed (guizotia 4by,smicc); 40 (%i) neem, vepa (az4dirachta i1uuca); (%ii) mahua ulupai, ippe (m4clhuca fndic4 if ladfoli4, bum, latifolia 'and modhucg longifolia i}'ll if longifoli4); (zui) karanja, pongam, honp (pcmgczmfa plntt4i4 iyjl p globt4) j 1028 (b) ls-2 (:riv) kusum (schleichera oleosa, syn s trijuga); (':tv) punna, undi (calophyllum inophyllum); (zvi) kokum (carcinia indica) j s -(:rutt) sal (shorea robusta); (mii) tung (aleurites jordii and a montana); (=) red palm (elaeis guinensis) j (:1:%) safflower (carthanus tinctorius) ;" amendmentol aectlon 15 t'j ''11d aectiam 15 of the principal act, in clause (b) for the words ~ tax 80 levied", the words "and tax has been paid under this act in respect of the sale of such goods in the course of inter-state trade or com- 10 meree, the tax levied under such law" shall be and shall be deemed to have been, substituted, with effect from the 1st day of october, 1958 13 in the principal act, after chapter iv, the following chapter shall be inserted, namely:-inaertion of new chapter v  'chapter v is liability in special cases16 in this chapter,-deftnltionl (a) "appropriate authority", in relation to a company, means the authority competent to assess tax on the companyj (b) cccompany" and ccprivate company" have the meanings 20 respectively assigned to them by clauses (i) and (iii) of subsection (1) of section 3 of the companies act, 1956 1 of 1958 17 (1) every person-company in liquidation (a) who is the liquidator of any company which is being wound up, whether under the orders of a court or otherwisej or 2s ~b) who has deen appointed the receiver of any assets of a company, (hereinafter referred to as the liquidator) shall, within thirty days after he has become such liquidator, give notice of his appointment as such to the appropriate authority 30 (2) the appropriate authority shall, after making such inquiry or calling for such information as it may deem fit, notify to the liquidator within three months from the date on which he receives notice of the appointment of the liquidator the amount which, in the opinion of the appr<?priate authority would be suftlcient to pro- 3s vide for any tax which is then, or is likely thereafter to become, payable by the company (3) the liquidator shall not part with any of the assets of the company or the properties in his hands until he has been notified by the appropriate authority under sub-section (2) and on being 80 40 notified, shall set aside an amount equal to the amount notified and, until he so sets aside such amount, shall not part with any of the jlsset$ c:>f the company or the properties in his hands; 5  ~~ded that notbi~g contained in this subsectiod shall debu the liqwdator from partmg with such assets or properties for the p~se of the payment of the tax payable by the company under this act or for makmg any payment to secured creditors whose d bts are entitled under law to priority of payment over debts due e to government on the date of liquidation or for meeting such coats and expenses of the winding up of the company as are in the opiui of the appropriate authority reasonable on (4) it the liquidator fails to give the notice in accordance with sub-section (1) or faiia to set aside the amount as required by or parts "?th any of ~e assets of the company or the propertiu ~ his hands m contraventlon of the provisions of sub-section (3), he shall be peraonally liable for the payment of the tax which the company would be liable to pay:  p~ovided that if the ~mount of any tax payable by the company 15 18 notified under sub-sectlon (2), the personal liability of the liqui~ dator under this sub-section shall be to the extent of such amount 20 (5) where there are more liquidators than one, the obupuodl and liabilities attached to the liquidator under this section shall attach to all the liquidators jointly and severally (6) the provisions of this section shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force 1 of 1958 2s liability of d1rec:-tor of private company lnllqwdation 30 18 notwithstanding anything contained in the companies act, 1956, when any private company is wound up after the commencement of this act, and any tax assessed on the company under thli act for any period, whether before or in the course of or after its liquidation, in respect of any previous year cannot be recoventd, then, every person who was a director of the private company at any time during the relevant previous year shall be jointly and sevcrady liable for the payment of such tax unless he proves that the nt>n-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company' 1' the principal act, as amended by this act, is hereby extendfld to, 3s and shall be in force in, the kohima and mokokchung districts in the state of nagaland exted-lion oftbe pridcipaj act to kobjma add mokokchudi djatricta idtbe 8tateof napland vaucla· tionof  mentl etc 15 (1) notwithstanding anything contained in any judgment, decree or order of any court or other authority to the contrary, any aueiildmt, reassessment, levy or collection of any tax made or purporting to have 40 been made, any action or thing taken or done in rela~on to iuch  mant, reassessment, levy or collection under the provisions of the prtnc1pal act before the commencement of thi&' act shall be deemed to be u valid and effective as if such assessment, reassessment, levy or colleetton atetlon or thing had been made, taken or done under the principal act as qmemted by clause (a) of section 5, clause (a) of section 11 and settion 12 of this act, and accordingly-(a) all acts, proceedings or things done or action taken by the state government or by any other officer of the state government 5 or by any other authority in connection with the assessment, reassessment, levy or collection of such tax shall, for all purposes, be deemed to be and to have always been done or taken in accordance with law; (b) no £tuit or other proceedings shall be maintained or continued in any court or before any authority for the refund of any such 10 tax; and (c) mo court shall enforce any decree or order directing the refllnd of any such tax (2) for the removal of doubts, it is hereby declared that nothing in sub-section(l) shan be construed as preventing any person-is (a) from questioning in accordance with the provisions of the principal act, as amended by this act, the assessment, reassessment, levy or collection of such tax for any period, or (b) from claiming refund of any tax paid by him in excess of the amount due from him under the principal act as amended by this act 20 lb5ihe levy of tax on inter-state sales under the central sales tax act,  i commenced from the 1st july, 1957 experience of the workin of the act has shown that it requires to be amended in certain respectsi for dealing with ~he problems of evasion of tax, illegal collection of taxreau huon of ~x in the e~ent of liquidation of a company and for spe1li~g out the intentlon underlymg certain provisions more clearly so 88 to overcome or, avoid interpretations to the contrary 2 the bill seeks to make the following important amendments in the act:-(i~ central sales tax is not leviable in respect oc tranuetions of transfer of goods from a bead office or a principal to a branch or an agent or vice versa as these do not amount to sales thls aids eva _sian in that dealers try to show even genuine sales to third parties a8 trmasaetions of this type accordingly, it is proposed to provide that the burden of proving that the transfer of goods in such cases ii otherwise than by way of sale shall lie on the dealer who claims exemption from tax on the ground that there was in fact no sale (ii) in order to deal effectively with tax evaders, provision is sought to be made for demand, in appropriate cases, of security or additional security not exceeding ri ~,ooo for initial registration or for· continuance of registration it is also proposed to makfl the penalty provisions more stringent (iii) to deal with illegal collection of tax, section 9a of the principal act is sought to be amended to make it obligatory for a dealer who collects by way of tax any amount in contravention of the provisions of law to deposit the same with government provisions are ,also being made for refund of amounts so deposited to the persons from whom they were collected by the dealer (iv) section 14 of the act which declares eertain goods as ot special importance in inter-state trade or commerce is sought to be amended as under:-(a) the supreme court has ruled that the existing deftnltton of "coal" includes "chareoal" coal was included as one of the goods of special importance with a view to covering onl~ that "coal" whieh is used mostly as an industnal fuel and not charcoal" the definition is, therefore, sought to be amended retrospectively to exclude "charcoal" (b) the definitions of "iron and steel" and "otlseedj", given in the section, have led to varying in:erpretations by aueutng authorities and the courts the existing definitions are, therefore, sought to be replaced by specific lists of iron and steel items and oilseeds in order to avoid any ambiguity in thl_ respect the definition of "jute" is also being substituted by a more preclse definition (v) clause (b) of section 15 which provides for refund of local sales tax on goods declared to be of special importance in inter-state trade or commerce in cases where such goods are sold in inter-8tate trade or commerce, is being amended retrospectively to make it clear that the refund of local sales tax can be claimed only when tax on the inter-state sale has beel1 paid and not otherwise (vi) a new chapter is sought to be added to provide for collection of tax in the event of liquidation of a company (vii) the bill also makes necessary provision for validation of past levies 8 opportunity is being taken to extend the principal act to kohima and mokokchung districts of nagaland 4 the bill seeks to achieve the above objects p c sbtbl new delhi; the 8th may, 1970  president's recommenda'cion under articles· 117 and· 274 of the constitution of india[copy of letter no f 8/22/60-st (iii), dated the 11th may, 1970 from shri prakashchand b sethi, minister of state in the ministry of finance to the secretary lok sabha] the president, having been informed of the subject matter of the proposed bill, recommends under clauses (1) and (3) of article 117 read with clause (1) of article 274 of the constitution of india, the introduction of the central sales tax (amendment) bill, 1970 in the lok sabha and also recommends to the lok sabha the consideration of the bill   cleme 2-this clause seeks to substitute a new sub-section tor ezftt mg sub-section (2) of section 6 under the existing sub-section all inter-state sales of the same goods subsequent to the first of such sal~s dectecl during the same movement of goods are exempt from tax if such iubaequent sales are ~a?e to registered dealers the new suh-lection seeb to provide for ~ sinular exemption from tax in respect of such subsequent sales to government also clduae 3-this clause seeks to insert a new section sa in the principal act for the purpose of providing that the burden of proving that any movement of goods from one state to another was occasioned otherwise than by way of sale shall be on the dealer making such claim 1'or tnl; purpose of discharging this burden, the dealer may produce a declaration in the prescribed form from the person in the other state to whom the goods have been sent along with evidence of such despatch of goods cleme 4-this clause seeks to amend section 7 of the principal act to empower the registering authority to demand, in appropriate cues, security or additional security up to an amount or amounts not exceedlng in the aggregate fifty thousand rupees, for initial registration or for continuance of registration the clause also makes the necessary ancillary and consequential provisions in regard to the torm in which tae security may be furnished or replenished, the forfeiture of security, etc clewe 5-sub-cleuse (a) of this clause seeks to substitute with retroapective e1!ect from the 1st october, 1958, a new sub-section for emuna sub-section (2a) of section 8 of the principal act '1"he new subaectiod seeks to bring out more clearly that an exemption or lower rate of levy under the local sales tax law of the appropriate state would be available in respect of an inter-state ale of goodi only if such exemption or lower levy is available generally with reference to such goods or such class of goods under the local sales tax law sub~lause (b) seeks to amend sub-section (4) of section 801 the principal act for the purpose of empowering the state government to prescribe the time within which the declarations or certiacatei prescribed under the sub-section have to be fumbhed sub-clause (c) seeks to substitute a new sub-section for emttng sub-section (5) <1f section 8 of the principal act under the existing sub-section, state governments may grant exemption from tax or reduction in rate of tax with reference to any goods or claaes of goods only the new sub·section seeks to provide for such exemptiods or reductions being granted with reference to pet'iooi a1io czaue s-this clause seeks to amend sub-tection (2) of mction 9 of the principal act for providing that the provisiods relating to rebat 1d i, the general sales tax law of the appropriate state wquld also apply for the grant of rebates under the principal act clause 7-this clause seeks to insert three new sub-sections in !'iection 9a of the principal act the first of these sub-sections provides that amounts collected or purporting to have been collected by way of tax in contravention of the provisions of the principal act should be depoii-ted with government the second sub-section provides for settlement of dis'putes, as to whether any such amount has been coljected the ~ird sub-section provides for the refund of amounts deposited with government to the persons from whom those amounts were originally collected clause b-this clause seeks to amend section 10 of the principal act to provide for penalties in respect of the various matters specified therein clause 9-this clause seeks to amend sub-section (1) of section loa of the principal act which provides for imposition of penalty in ueu of prosecution for certain offences at present the maximum penalty which may be levied in respect of any offence is an amount equivalent toone and a half times the tax which would have been levied in respect of the sale of goods to which the offence relates the amendment seeks to provide that the maximum penalty shall be computed in the case of every offence with reference to the higher rates of tax applicable 11dder s1,1b section (2) of section 8 as if the sale to which the oftence relates were a sale under that sub-section   clause 10-this clause seeks to amend section 13 of the principal act which deals with the rule-making powers of the central and state governments the amendments proposed by this clause are mainly of a consequential f1r formal nature  clause 11-suo-clause (a) seeks to exclude, with retrospective eftect,chacoal from the definicon of "coal" contained in clause (i) of aeetion 14 of the principal act sub-clause (b) seeks substitute clause (iv) of section 14 of the principal act for the purpose of enumerating expressly· the various bub-items falling under the item "iron and steel" sub-clause (c) seeks to substitute the definition of the term "jute" by a more precise definition sub-c!ause (d) seeks to substitute clause (vi) of secti<m 14 of the principal· act for enumerating expressly the various types of on· seeds clause 12-this clause seeks to amend with retrospective eff~t from the 1st october, 1958, clause (b) of section 15 of the prin9pal act so as to make it clear that refund of local sales tax on goods declared to be of special importance in inter-state trade or commerce would be admisslole only when the tax on the inter·state sale of such goods has been pa14 claule l3-this clause seeks to insert a new chapter v in the principal act to provide for collection of tax in the event of liquidation of a campany clause l4-this clause seeks to extend the principal ad to kohima and mokokchung districts in the state of nagaland claube 15-this clause seeks to make the necessary validatini provision  financial memorandum'l'he central sales tax act, 1956, utilises the machinery in existence in states and union territories for collection of tax thus no expenditure out of the consolidated fund of india is involved in the collection of central sales tax in states clause 2 of the bill seeks to substitute a new sub-section for subsection ~) of section 6 of the principal act the first proviso to the new sub-section provides that for the purposes of claiming exemption from tax on subsequent sales dealers have to furnish certificates in the prescribed form clause 3 of the bill seeks to insert a new section 6a in the principal act sub-section (1) af the new section provides inter alia that for the purpose of proving that the movement of goods from one state to another effected by a dealer was occasioned otherwise than by way of sale, the dealer may furnish a declaration in the prescribd form the aforesaid forms will have to be printed by the central government for meeting the requirements in union territories the printing of the same will involve an expenditure of a recurring nature which is not likely to exceed rs 10,000 per annum the blll does not involve any non-recurring expenditure certain provisions of the bill confer rule-making powers on central and state governments  the first proviso to new sub-tlection (2) of section 6 (vide claule 2 of the bilj) provides for furnishing of certain forms m claim in, exemption from tax on subsequent inter-state sales referred to in that proviso new section 6a (vide clause 3 of the bw) provides for the filing of a declaration by a dealer cla1m1ng that the movement of any goods has been occasioned otherwise than by way of sale the aforesaid new sub-section (2) of section 6 and new section sa r'jad with new clause (e) of sub-section (4) of section 13 [vide claule 10 (c) (if) of the bull empower the state government to preacribe by rules the form of, and the particulars which should be contained  in, the said certificates and declarations; the authority from whom, the conditions subject to which and the fees subject to the payment of whlch the said fonns may be obtained; the manner in which! the said forms shall be kept in custody and records relating thereto maintained and the manner in which such forms may be used and the certificates and declarations in such forms may be furnished and the time within which such certificates and declarations shall be furnished etc clause 4 of the bill seeks to amend section 7 of the principal act for authorising the registering authority to demand security or additional security for initial registration or tor continuance of registration this clause read with clause 10 (e) (i) of the bfll authorises the state government to prescribe by rules the manner in which the security or the additional security shall be turnijhed and the manner in which and the time within which any security which has become insuftldent shall be replenished clause s (b) of the bill seeks to amend sub-section (4) of section 8 of the prindpal act to enable rules being made for preacribfng also the time within which the certiflcates and declarations referred to in that sub-section should be furnished by dealers the power to make such rules is exercisable by the state government [ufde clause 10 (e) (ii)] clause 7 of the bill seeks to insert three new sub-sections (2), (3) and (4) in section 9a of the principal act new sub-leetton (2) authorises the mkaing ot rules inter alia for prescribing the manner in which and the period within which amounts collected by dealers by way of tax in contravention of the provisions of the act should be deposited with the appropriate authority new sub-sectfon (4) authorises the making of rules for prescribing the authority beforl! whom and the manner in which applications for refund of the amounts deposited under new sub-sectm (2) should be made the power to make such rules is exercisable by the appropriate state ~veroll~t in t~e ~se of apy$tqte ju' mrt ~~reo1 j1l whicb there is in force a general sales tax law and in other cases by the central government (vide clause 10, sub-clause (a) (iii) and sub~lause (c) (iii) clause 10 of the bill spells out the government (central or state) by which l'ulea in respect of the matters menuuied above may be made the clause also provides for rules being made by the cen tral govemment for prescribing the appropriate state of origin of the fql'lu to be used for the various dealuattens or certtaca~ udder the aot [~ elauae 10 (a) (ii)], and also for pnscribing the penalties :lor oentl'aventioa of rules made by that ocwernment [vi~ clause 10 td)] all the afomsald pl'9visions un4ler which rules ll\ay be made by the cental government or, as tlae case may be, state gov~ment, eaoept ule prorilion empowering the centl'al ao"ermnent to pro-~de far penalties for contrav8iltlod at ~ made by it, pertain essentially to matter of admilliatrative _tail and precedun and, theijefwe, uaedelegation of legialatne powfli' fa of a normal ebaracter_ 'l'h provision [clause 16 (') of tbe lull] empgwering the €lents/al gofiel'llldent to prelcrihe penalties for contravention of rule made by it is allo of a ngl'lll81 oharaeter beeaule the maximum limits of any such penalty (fine which may extend to five hundred rupees and in the case of a continued oftence, a daily fine whioh m4ly ~dt~ fijty ~~ ~r ~v~ cmy dijfl9g which the othnqe 4'gaunues) have \leu 1ipd' ,~t i'\\,~~ ~\l-section fi) <tf uctign 1a of ule pr~jlipi\l t\qt, a str\iiai' pow~f' hf"j already been m~igrred qn statp go,ve1'11lments i suh-alauije (c) of dallse ~ qf ijle~ul1 s~ \~ ~jolp~'f~t a new iub-s~ f~r existing ~c~ ~~) ~ 4~~ 8 ~f the ~~~al act for the purpose of eqablidg ~te qp~~mw ~ mnt~ptpls from tax or reductions in rate of tax not only with reference to any goods or ~l~ssps qf ~oo4s as at present but, alsc! ~lth r~fer~nce to persons the ~'f~~pwm {r<>1l\ tex qr redqction in ~ate of ta~ may be granted only if tpe $~t~ government is satisft~d that it is, neces,sary s,o to do in the public ~~~(~ ~, ~t, is :not pqssible to visu{luse} ro a~ance the cases in which ~~h ~~lljlptip:n!1 ~ re~ctiqlvi may, be, n~ces~ary and as the exemptions or reductions can be granted only in public interest, the delegation of power to grant exemptions or reductions is of a norma} character  ~e :ewmams i'bom tile cbn'l'ul sauls tax a~, 19m (74 of 1956) - •- - - chapi'er iii e (1) -  inter-state sales tax - •- - liabilit7 to taxon inter state aiel (2) notwithstanding anything contained in sub'section (1) or subsection (1a), where a sale in the course of inter-state trade or commerce of goods of the description referred to in sub-section (3) of section 8-(4) luis occasilmed the movement of ~uch pds from one state to q9tjtl'; or  (b) has been effected by a uusfel of doeuflmqts of ,title to such iogds during their movement from one s\tlte to arother; any subsequent sale to a registered dealer during such movement effected ~ a transfer ()f docmnente of title to such ,oad _ii nqt be subject to tax under this act: provided that no such subsequent sale shall be exempt from tax under ~ s\1b-secuon 1,ll11ess ate dealer effecting the sale fumisqei to the pr~ribed ~qthoiity in thepresc1,'ibed jl1ann~r a certiftcate duly filled ,nd sigtwd by he registered dealer from whom the goods were purchased, cqnt"n~ the prescribed particulars 1 (n - - - - - ltedtra tlon of dealers (9) jf the authority to whom an application under sub-sectfon (1) or subs~ction (1) i~ made is satisfied that the application it! in conformjty with the provisioll$ of this act and the rules made thejeunder, he 1ha11 register the applicant and grant to him a certihate ot~tratiojl· tn the prescribed form which shall specify the class or classes of good tor the purposes of sub-section (1) of section 8 ,·(4) a certifi;ate of registcation granteq under this lection may~ - - - - - (b) be cancelled by the authority grantil'lg it where be is  tided, after due notice to the dealer to whom it hu been gt'ajl'ted, that he llas ceased to earry on business or has eaued to edt, er in the ease c!f a dealer registered under sub-section (2) has eeaeed to be liable t9 pay tax under the sales tax law of the appropriate staw or for 8!ly other suffteient reason rateaof taxon aaleain the course ot inter-state trade or commerce (2a) notwithstanding anything contained in sub-section (la) of beetlon 8 or in sub-section (1) or sub-section (2) of this section, if under the sales ta~ law of the appropriate state the sale fjr purchase, as the ease may be, of any goods by ,a dealer is exempt from tax generally or is subject to tax generally at a rate which is lower than three per cent (whether called a tax or fee or by any other name), the tax payable under this act on his turnover in so far as the turnover or any part thereof relates to the sale m such goods shall be nil or, as the case may he, shall be calculated at the lower rate  explanlltion-for the purposes of this sub-section a sale or purchase of goods shall not be deemed to be exempt from tax generally under tjie sales tax law of the appropriate state if under that law it is exempt only in specified circumstances or under specified conditions or in relation to which the tax is levied at specified stages or otherwise than with reference to the turnover of the goods  - - - - - (4) the provisions of sub-section (1) shall not apply to any sale in the course of inter-state trade or commerce unless the dealer sellin~ the goods furnishes to the prescribed authority in the prescribed manner-(a) a declaration duly filled and signed by the registered dealer to whom the goods are sold containing the prescribed particulars in 8 prescribed form obtained ftom the prescribed authorityj or (b) if the goods are sold to the government, not being a registered dealer, a certificate in the prescribed form duly filled and signed by a duly authorised officer of the government (5) notwithstanding anything contained in this section the state government may, if it is satisfied that it is' necessary' so to do in the public interest bv notification in the official gazette, direct that in respect of iluch goods ot' classes of goods as may be mentioned in the notification and subjrct to such conditions as it may think fit to impose, no tax under this act shall be payable by any dealer havin~ his place of business in the state in respect of the sale by him from any such place of business of any such goods in the course of inter-state trade 01' commerce or that the tax on such sales shall be calculated at such lower rates than those specified in sub-section (1) or sub-section (2) as may be mentioned in the notification - - - - - t '(1) - - - - - levy and collection ottax and penaltiel (2) subject to the other provisions of this act and the rules made thereunder the authorities for the time being empowered to 9!!sess, reassess, collect and enforce payment of any tax under the gen,eral sales tax law of the appropriate state shal] , on behalf of the government of india, assess, re-assess, collect and enforce payment of tax, includjn, my penalty, payable by a dealer under this act as if the tax 01' penalty payable by such a dealer under this act is a tax 01' penalty payable undel the general sales tax law of the state; and for this purpose they may exercise all or any of the powers they have under the general sales tax law of the state: and the provisions of such law, includin~ provisions relating to returns, provisional assessment, advance payment of tax! :r~ glstration of the transferee of any bu "   " smess, lltlposltlon of the tax liabilit  of a person carrying on b~i~ss' on the transferee of, or successor ~ such busine~, transfer of hablllty of any firm or hindu undivided family to pay t~ in the event of the dissolution of such firm or partition of such family, recovery of tax from third parties, appeals, reviews, revimoils, references, refunds, penalties, compounding of offences and treatment of documents furnished by a dealer as confidential, shall 1 accordingly: app y provided that if in any state or part thereof there is no general ~es tax law in force, the central government may, by rules made in this behalf make necessary provision for all or any of the matters specified in this sub-section - - - - - 10 if any person-(a) fails to get himself registered as required by section 7; or - - - - - (f) collects any amount by way of tax in contravention of the provisions contained in section 9a; he shall be punishable with simple imprisonment which may extend to six months, or with fine, or with both; and when the offence is a continuing oftence, with a daily fine which m,ay extend to fttty rupees for every day during which the offence continues loa (i) if any person purchasing goods is guilty of an offence under clause (b) or clause (c) or clause (d) of section 10, the authority who granted to him or, as the case may be, is competent to grant to him a certificate of registration under this act may, after giving him a reasonable opportunity of being heard, by order in writing, impose upon him by way of penalty a sum not exceeding one-and-a-half times the tax which would have been levied under this act in respect of the ssle to him of the goods if the offence had not been committed: provided that no prosecution· for an offence under section 10 shall be instituted in respect of the same facts on which a penalty hal been fm· posed under this section - - - - - 13 (1) the central government may, by nowicatiod in the 08ldal power gazette, make rules providing for-~ - - - - - (b) the period of turnover, the manner in which the turnover in relation to the sale of any goods under this act shall be determined and the deductions which may be made in the procell of such , determination; - - - - - (d) the form in which and the particulars to be contained in any declaration or certificate to be given under this act; - - - - '  "(2) all rulea made by the central govermnent under sub-eectlon (1): shall be laid before both houses of parliament as i0oi1 as may be after they are made and shall be subject to such modifications as parliament may make during the session in which they are so 'laid or the session iml'l\ediatefy fouowmg - - - - - (4l in partieular and without prejudice tcf the' powes co~ by' su'b-nctioh (3), the state govet'1i1'nent may mtke mte!l tot all or ~ of ,the following parposes, namely:-- - - - - (e) the authority 1rom whom, the conditions subject to which and the tees subjeot to payment of which any form of declaration prescribed under sub-section (4) of section s may be obtained, the manner in which the form shall be kept in custody and records :relating thereto maintamed, the manner in ,which any such form may be used and any such declaration may be furnished; - - - - - (6) in makilli any fule i1ilcier this section the state gqvernment may , i direct that a breach thereof shall be punishable with fine which may extend to five hundred rupees and when the offence is a continulng offe~e, with a daily fine which may extend to fifty rupees tor evert day' durlnawblch the o1!cmce continues  chapter ivh; u is- hereby declu8(l that the fol1owing goods are of special impwtanoe ill intel'-state trade or oommerce:-(0 coal, including coke in all its forms; - - - ,  (iv) iloa and steel, that is to say,-(4), pis stoll add !rodi scrap; certain gooda to be of special importaneem inter-state trade or commerce (b) iron plates sold in the same form in which thief atfj' directly produced by the rol11ng milli (ct}ls_ltiolap,  1 ii1~,steel· bweujstt""'"' ah ~;" (d) (i) steel plates, 1 ld' th f (ii) steel sheets l80 m e same orm (iii ) sheet bars ~,tin bars, tin which they a,re dir~tly (iv) rolled steel sectiodli, j pro~ed by tbe rollin, (v) tool alloy steel; dud  , (~) jute, that is to say, the fibre extracted from plants belong~ ing to the species corchotus capsularis and corchorus olitorioub and the fibre known as mee14ut birnli: extractedfroln'pltdlts of t1le species hibiscus cclnmpinus and' ,"'ist"u6 ",bdariffaoofol&aima, whether baled or otherwisej (di) oil-aeed&', that is- to say, seed& yieldibi,non-volaw oils used foc' btudad, collluldptigrt, or in industry, 01' in the manufaeture of  ' i varnishes, soaps and the like, or in lubrication, and volatile oua used chiefly in medicines, perfumes, cosmetics and the like; - - - - - 15 every sales tax law of a state shall, in so far as it imposes or authorises the impos1tjon of a tax on the sale or purchaae of declared goods, be subject to the following restrictions and conditions, namely:-- - - - - beatrletiem and c'qildiuonaln regard to tax od ,ale or purch  ofdec1ar· edooda wltb1aa state, (b) where a tax has been levied under that law in respect of the sale or purchue inside the state of any declared ioods and such loads are sold in the course of inter-state trade or commerce, the tax 80 levied shall be refunded to such penon in such manner and subject to such conditions as may be provided in any law in force in that state - - - - -  a billfunher to amend the centtal sales tax act, 19s6 (shri pralujshehtllld b sethi, minister of stllte in 1m ministry oj ftnant:) 