to the delhi saies t,ax bi ll, 1966 (to be/as introduced in lok sabha) 2, line 29,-after "agentll , insert ii " , 5, line 15,-, ' it nothwi ths tanding" r8ad ii notwi t~s tanding" 6, line 12,-after "second sch~dule", omit line 13,-" i, , ' for "deemed to the", read "deemed ':to be" --:-line'7," for "tax-under" read "tax under" line 22,-after "and", insort "trg" ~'''  :~ page 10, lin8 2~,-for l'of class" read liar cl~lss" page 17, l1np 36,-aftor "of!! , ins ort " ii , ,- 01' _n 9 page 2~, line 13,-for "arrears" read itarre~lr\l (i) in line 9 for "the act" r8ad "this act"; and (ii) in line 13 for "the act"read "this act" ,--" ,,, 86,l1ne 20,-~/,~  '~,f' ' ' artef""sub-s9ct1on (4)", ins ert - ir~ thts section and s act ion 33, tr ~ pto -' 12 page 27,-(i) in line 14, for iileader" read "dealer"; and (il) in line 2f:" for" (ii read ~ 13 page 29, line 22,-for "decurnents" read "docurnentstl 14 page 34, line 32,-for 1149 _" read "49 1l -, '-15 page 35, line 39,-after" (b)", insert 16 page 36, i1ne 3,-" " , for "the actlt read "this act" -, 17 page 38, line 30, for "pr~ceedlngs!l read 11 proceeding" -, 18 page 39,-(i) in line 22, after "disclosure", omit ":"; and (11) in line 40, for "occassloned" read "occasioned" 19 page 4l, ror line 27, substitute ~ "of a check-post or barrier or any other officer as may be empowered" ,' 20 page' 42, line 26,-for "the act" read "this act" -'--21 page 43, line 12,-for "the act" read "this act" --'-82 page 6~, l1ne3 from bottom,-for "tribunals" read "tribunal's" 23 page 61, line 9'rrom bottom,-for "c laus e" re ad "c la uses ii -'-24 correct line numbers on pages 23,25,'26,27,28,29,30,34 & 36 thcug h the proposed legisla t10n wholly ropldces the e :dsting salas tax la w applicc: ble in del hi, :it rna intains tho l:l sic structure and "('i,e scheme ci the existing act the only important cr~wg(), which has any financi"l mring, and which is t-lropose:d to be made throut::h this bill, is the sattinc up of an would involve, besides appo1rtm'rrt of th? mcmbjrs cf th'" tribmal, s\'!'tting up of an of fice w::lt h a rcgistr, r ann snile staff on a rough estirmtc, the tot21 rocurr~ cxp~mi!urc: on this account is not l:ik::ly to jxpood }{~ 120 lakhs p,:r amum, besidos ij non-rocurring cx;p,lldituro of a bout h~ 10, coo on t h:: 3-;tt ing up of th  tribul'l:ll' s of fic;) this will b0 in 8,:d ition to th;: prcs:,:nt "stinntod llmuel (;"!xpcjnditur0 (r:curring of rup~b 16,47,238 on th-j pr:s_nt ~lcs-t x org~~nisution in i):lhi vide clauso 9 ( 1) and (2) of the bill ---22-8-966,  biu no 52 of i'"  "'medelhi sales tax bill, 1966 arrangement of clauses chapter i preliminarytitle, extent and commenceme'!1t  chapter ii incidence and levy of taxiiinii'a1"c! of administrator to prescribe points at which goocb may be taxed u1li4~n of proof   _t'l"da goods sales and purchases not liable to tax   chapter m ,':p"~ tax authorities and appellate tribunal """"~;ka"jull of commissioner's powers to transfer proceedings -tll~jj~lt\'e tribunal  chapter iv registration, amendment and cancellationt-~:ttation registration _&v·uoa" registration  - ' special registration security from certain class of dealers clauses , 18 amendment of certificate of registration 19 fi cancellation of certificate of registration  chapi'er v ret'o'bns, assessment, recovery and refund of tax20 periodical payment of tax and filing of returns 21 collection of tax only by registered dealers 22 assessme·nt of tax 23 turnover escaping assessment 24 payment and recovery of tax 25 special mode of recovery 26 lump sum payment of tax 27 refund 28 set-off chapter vi  liability in special cases29 liability in case of transfer of business 30 li8'biuty in case of company in liquidation 31 liability in other cases  chapter vii liabnity to produce accounts and supply of information32 accounts 33 informationj to be furnfs}led regarding change of busin4 , 34 production and inspection of accounts and documents search of premises 35 power of commissioner and other authorities to take dence on oath, etc  chapter viii appeals, reference and revision36 appeals - 37 non-appealable orders 38 statement 'of case 'to the high court' 39 revision of orders prejudicial to revenue 40 revision of other orders 41 rectification of mistakes  chapter ix offences and penalties~ ,:~' , ~, offences ~,; offences by companies ~ cognizance of offences , investigation of offences ~j,~·comp~sition of offences fpenalty for failure to submit return ~;o '~,penalty for concealment of sales or furnishing inaccurate particulars or making false representations - enalty for contravening provision regarding collection of tax by dealers  chapter x '\i ': miscellaneous~ervice of notice when family is disrupted or firm is dis-, solved ~rvice- of notice in the case 0: di~continued business ,/appearance before any authority m proceedmgs iphange of an incumbent of an office ~xtension of period of limitation in certain ('ases etc, to be confidential ~""il&&'; up of check-posts and barriers   ,bar of suits in civil courts ,'~ ~power to make rules ,:;: ;:l\ules and certain notifications to be laid before parliament 1'!>i~peal and savings !1temoval of difficul ties {:'the first schedule \ the second schedule < the third schedule  the delhi sales tax bill, 1966 a bill1 : -wi"o>u  ,uu  ~ and· ~mend the law relating to the levy of tax on sale of goods in delhi   it enacted by parliament in the seventeenth year of - the lic of india as follows:- chapter i preljmtnarythis 'act may be called the delhi sa'les tax act, 1966 short title, (2) it extends to the whole of the union territory of delhi extent it sh4ll come into force on such date as the administrator =e~~:n-, by notification in the official gazette, appoint ment 2 in tliis act, unless the context otherwise requires,-:;~i definitions ~a) "administrator~' means the ~dministrator of dell ~pp~mted by t~e president under article 239 of the consti~ tnoll'(b) "appella~e tribunal" means the appellate tribut constituted under section 12; ;: , (c) "business" includes-(i) any trade, commerce or manufacture or any ture or concern in the· nature of trade, commerce or facture whether or not such trade, commerce, u""iu,""lci\,; adventure or, concern is carried on with a motive to gain or profit and whether or not any gain or profit from such trade, commerce, manufacture, concern; and (ii) any transaction in connection with, or or ancillary to, such trade, commerce, manufacture, ",,"'''al'ln or concern; (d) "commissioner" means the commissioner of sales appointed under sub-section (1) of section 9; , (e) "deale'r" means ahy person who carries on - selling goods in delhi and includes-(i) the central government or any state carrying on, such business; , " , ~ ;! " ~" (ii) r rr i society (i~cluding a ~operative society);' or any associa~ion ,which sells or supp~es goq~s, or not in thedourse of business, to its, membefs for for deferred payment or for commission; other valuable consideration; (iii) a manager, factor, broker, commission  w __ , credere agent, or any mercantile agent, by whatever; called, and whether of the same description as nelreluu'~ mentioned or not, who sells goods belonging to any pal whether disclosed or riot; and (iv) an auctioneer who sells or auctions goods ing to any principal, whether disclosed or not and -_  the offer of the intending purchaser is accepted by him or the principal or a nominee of the principal; , (f) "delh,i" means the union territory of delhi; ( (g) "goods" includes all materials, articles, commoditi~ all other kinds of movable property, but does not include papers, actionabl claims, stocks, shares, securities or mclne;'frl ';" ::  , ',,: 1:_', "jnanufacture", with i~ grammati~al variations and cog-j means producing, making, extracting, altering, finishing or otherwise processing, treating or adapgoods; "official gazette" means the official gazette of delhi;  ,"prescribed" means prescribed by rules made 'under means registered unde1"l this act; "sale", with its grammatical variations' and cognate exmeans any transfer of property in goods by one person _  ,,,, - ,pr for cash or for deferred payment or for any other 'iulllc"""''''' consideration, and includesa transfer of goods on hire-purchase or other system ~y instalme!1ts ,bqt ,~~,:n9~,~l~de 18 m~rt~ge 'w-·hv11otjhec~a, tion of, or a c1w'ge $»r pled'ge qn, goo~·;'and ~ - - • 1 '  - supply of goods by a' society,(includiilgil ~' -iiv"' society) ,club, firm, or any association, to its members  cash or for deferred p3yment, or for commission, renu-_,  ,ili,1i'\n or other valuable consideration, whether or not in 1he course of business "   :, ,';j ex'dl(ltnation--a sale or purchase of goods shall be deemed _i\;'ii:dllr4 place inside delhi if the goods are within delhi-' ~~,i(i) in the case of specific or ascertained goods, at the rt:ime the contract of sale is made; 'and ' ,', ":, -' ,,'8",!i', i (ii) in the case of u~ -or"future goocls,  at the time ef their appropriatiqa\ tpl "~~ fcontrac,t ~j ~:-jw the seller or by the buyer, whether assent of the other party  is prior or subsequent to such appropriation; '~sa1e price" means the  amoul)t ~y~b~e to a de~ler as ~lfal:op:,!dq,eration for the sale of any ~~, le~  any sum  allowed ~,_,-r",pash discount according to t~e practice normally prevalung trade, but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before , &n:' the delivery thereof other than the cost of freight or delivery ;;ism% ,the cost of installation in cases where such aost is separately h: • c arged;  ¥~""  i:;\ - -(n) "tax" means sales tax payable unaer this act; f1!,\vor i/l,b:;' (0) "turnover" means the aggregate of the amounts of sale ~': price receivable, or if a dealer so elects, actually received by the d~aler in r~t of any sale of goo~ made during a~ prescribed period in any year after deducting the amounts ~ sale price if any, refunded by the dealer to a purchaser in rea: pect of any goods purchased and returned by the purchas~ within the prescribed period: :~ provided that an election as aforesaid once made shall no~ be aite-red except with the permission of the commissioner an~ on such terms and conditions as he may think fit to impose; , ~ (p) "year" means the financial year :4 it -,,-" ~ chapter ii  incidence and levy 01' taxincidence of tax 3 (1) every dealer whose tumoverduring, the year imlmecua'tel~ preceding the· commencement of this act exceeds the quantum; shall, from such ,commencement, be uableto'pay tax this act on' an sal~, effected by him'on orafter'such: 'colmdlenc:e: ment:  -   provided that a dealer who "eals exclusively j~, one·, ,~ classes of goods specified in the third schedule shall not be ua to pay ~j~~)l~~~r~~is ~c~ !' ," ' ~(,:;,  (2) every dealer to whom sub-section (1) does not apply, with effect from the date immediately following the day on his turnover calculated from the commencement of any yeal" exceeds within such' yeat the taxable quantum, b~< liable to pay under this act on all sales effected' after that: day ' , ' ";,! ,,' ~"j  d}f' c_~,; 'of  t!  :::';', • ~ :'_p :j-'i:~: ~"  -:j oj • 'l:~j~·-'~ r:jir~ (3) every dealet' who' has become liable to, pay tax : ,under act shall continue, to be so liable until the expiry of tltree co!1lsec:tl: i~·~t~il~t!~~rtj~t~~~r~z j'~ ~t~;1~?br expiry as may be prescribed, and on the expiry of such f~rther period his liability,tr, p,"y,tax shall ~ase,, , 'o:1',)!) "t'" , (4) e~ery dealer whose liability to pay tax ~~dei' this' act ceased under sub-s'ection (3), shall, if his turnovea" calc~ated bt'i,fii""!'" the commencement of any year again exceeds the taxable i'1l1jlllft~ldd, on ally day within such year, be liable tq; pay such tax with ejil~~ from the date immediately following the day on which his turnover first exceeds the taxable quantum; o~ ad saieseffected  after day " ~ ~ :~  any dealer wh~ certificate of registration has, been can-:qnder sub-section (z) of section 19, ·shall-(a) if his tumotrer calculated from the date of cancellation ,of such certificate ttceeds the taxable quantum on any day , within the year, or ,~,(b) if his turnover calculated from the commencement of any subsequent year, exceeds the taxable quantum' dn tlhyj day within that year, ' -0 to pay tax udder this act with effect from the date imme-, following the day on which such ,turnover' again first jexeeed§ aax8,ble quantum 011 all sales effected 8fter "tll,at day: of't~ ,t9ri ''by him from outside delhi or manufactured 'by bini! 'iii · or purchased by him withoutpaymeni 'of <tax1eviable'~"d'" act -' ,,,': ",,,f'i'('"",m" -  ' l '!j "every dealer shall, nothwithstanding  that 'he 'is not liable to 'tax under the provisions of any 6f 'the:' foregoing sl1~ions; to pay tax under this act so long as he is registered under sales tax act, 1956, on all sales eoffectedby him 'or on within delhf on or after the date of his liability 6r~the ~ilbf'''his registration, whichever is earlier; under the "centi'8t act, 1956 ' ; ,  ,' ~,' " ; r: r ~ - ; for the purposes of this act, "taxable quant~~': ~~" ' 1 '' ' \ -(a) in relation to  any dealer who imports lor "iaie,;"any fililloocts into delhi  ''nil'';' :' r ,"f/t! (b) in relation to any dealer whq manufacttiresgoods 'for sale, regardless of the value of goods manufactured '   , 'it th d " , "  , ' • '        en ousan rupees, :, (c) in relation to any other dealer 0 0 0 0 0 0 - 0 0 0 - 0 0 0 o "thirty ~ 'thousand rupees": ,~ provided that if the administrator is of the opinion that having ltfegard to the difficulty in maintaining accounts or other sufficient cause the taxable quantum in respect of any dab!? of deal€'i's falling clause (b) should be increased, the administrator may, with previous approval of the central government" and by notification the official gazette, fix in respect of such class of dealers such· ,,,,---quantum, not exceeding thirty thousand· rupees, as may be -i"=:tcrlle<t in the notification t (1) the tax payable by a dealer under this act shall be levied- rate of tax (a) in th/!o case of taxable turnover in respect of the goods specified in the first sehedwe, at the rate 4f ten paise in" the rupee; (b) in the case of taxable turnover in resp~ct of the goods specified in the second schedulf, at such rate not exce2ding three paise in the rupee a~ the central government may, from time to time, by notification in the official gaze~te, determine'; (c) in the case of taxable turnover in respect pf any other goods, at such rate not exceeding seven paise in the rupee as the central government may" from time to time, by notification in the official ga1jette, determine: provided that the administrator m3y, with the previous approval of the central government, and by notification in the official garrette, add to, or omit from, or otherwise amend the first schedul~ or the :seoond schedule, ,and thereupon the first schedule or, asthe case may be, the second schedule shall be deemed to the amended accordingly: -, ~rf  pro,vided· f~rther that ifi,n -respect of any goods or ciassof goods tbe~~admiqjstrato:r, is of opinion that it is, expedient in the in~ere$! ef~tbe !-ged~publi~ s:') ,to, do: ~ administrator'may, wiql  : ~~ ~approval of the central government, and 'by notifieation;1 \d the official- gazette, direct -that the tax in respect of the tamble' ~ of·suebgoods·ar,:ola~ of-·goods<shall, subject-to such condi, ' tions as may be specified, be levied at such modified rate not\~ ceedi~g !he rate applicable under this section, as ~ay _ be ~p~~fied1 intbe  notification  -(2) for the purposes of this act, "taxable turnover" means that part of a dealer's turnover during· the prescribed period in any year w~ich remains after deduottpgthe{efrom,-~ " (a) his turnaverdw1ng that period on-- -(i) sale of goods':declare!a by the administrator under ; section 5 to be taxable at the first point in the -senes of sales'~ in respect of which due tax is shown to the satisfaction of ~ the commissioner to have been paid; ,;  ~ (ii) sale of goods declared tax-free under section 7; (iii) sale of goods not liable to tax under section 8; (iv) sales: io a' ~~tered dealer-- (a) of goods of the class or classes specified in the _~ certificate of registration of such dealer as being intend-" ed for re-sale by him in delhi or for sale in the courseof inter-s~ate tr2\de ~ eommerce or in the course of export out of india or for use by him in the manufa'cture of goods in delhi for sale; and ~ (b) of containers or other materials for the packing of goods other than goods specified in the third sche-~~e, intnded for alq or re-sale· ' --, (v) sales to any undertaking supplying electrical r<> __ ---gy to the public under a ,licence or sanction granted or 'deemed to have been' granted under the indian electricity  act, 1910 of goods required for use by it in the generation or distribution of such energy; (vi) such other sales as are exempt from payment of ,: tax-under section 58, or as may be prescribed: provided that no deduction in respect of sales referred to in sub-clause (iv) or sub-clause (v) shall be allowed unless a true declaration duly filled and signed by the regis-i tered dealer or, as the case may be, by the owner or any authorised representative of the undertaking to whom the goods are sold and containing the prescribed particulars in the prescribed form is furnished in the prescribed manner by the dealer who sells the goods: o provided further that where any goods specified in the certificate of regi:traticn are purchased by a registered dealer for any of the purposes mentioned in sub-clause (iv) but are >~~t:a" utilised by him for a d;fferent purpose, the price of the goods so purchased shan be allowed to be deducted from the turnover of the selling dealer but shall be included in the taxable turnover of the purchasing dealer; and  ~ 1:\ (b) the tax collected by the dealer under this act and ~ ·~t '   ,\~~"",:'~shown separately in cash memoranda or bills, as the case may ::,1$'0 be \':('''-1':, , ", - 'j', :;6 notwithstanding anything contained in this act, the adminis- powers of ",', ~rator may, by notification in the official gazette, specify the point adminis-i,  ,fl_ th  fib  d 1 t h' h l trator to t(:( ill e senes 0 sa es y successlve ea ers a w lc any goo'js or prescribe "'? ,class of goods may be taxed points at ,:~j,~; <:, which ~-:r,jj' , goods mlly be taxed tlo 6 the burden of proving that in respect of any gale effected by burden " a dealer hp is not liablf' to ow tax under this act shall lie on him of proof i  '{/::' 7: (1) no tax shall be pa~able under this act on the sale of goods tax-fn!o ;;;:' \'tpeclfied in the third schedule subject to the condltiotis and ex- goods "~ptions, if any, set out therein " -! 1l  (2) the central government may, by notification in the official gazette, add to, or omit from or otherwise amend the third sche-,,' duie and thereupon the third schedule shall be deemed to be ',, amended accordingly 8 nothing in this act or th" rules made thereunder shall be deemed tujmpose, or cuthorise the imposition 01 a tax on ~ny sale or purchase of any gejods when such sale or purchase takes place-certain sales and purchase!l not liable to tax (i) in the course of inter-state trade 01' commerce; or 5 (ii) outside delhi; or :1' (iii)' in the course of import of goods into, or export of the goods out of, the territury of india ;·"e~lcinatio~-rsectio~s· 3, 4 and 5 of the central saies tax act, 195!? shall apply for determining whether or not a particular sale or pjll"~h·ase takes place in the manncr indicated in clause (i), clause 10 ~hr ~'lh~9}is~j (iii) of this section rff;n£frl~':'l ,~(  ' ~~"p;m l')(: i ! chapter iii  sales tax authorities and appellate tribunal ;~i sales tax (ttug~tlr};\~~arrying out' t'h~pnrposes of this ~~t, th~ administra- :i~~or:~;\,~:~,=:~ll~~fx:~!{~~k:s:!n~;;~~~~ ~~~?:,i~~f~'?~'i~~~~ tax i~:£) (~  'l'c) as!tist the conunissioner in the execution of his functions" un~er, this act, the administrator may appoint such other persons'~ with such designations as the administrator thinks necessary j (3) the commis~i~ner shall have jurisdiction ov~r the ~vhole of'tt delhi and the other persons appointed under sub-section (2) shall ~e-xf j,~~diction over: ~uch areas as, the administrator may specify:   ,  ,-,r if, (4)" the commissioner and other persons appointed under sub-, litu!t"",f:i sectioib/(3)dshal1 exercise, such powers as may be conferred, and  :;-",';11 'n""·tmrfqmifsqc1d'tiutie'g'asimay'rbe'required, by' or ilnderthis act·toj':~ d;lr~'t~ l~bf::t ~1~ti~~~h1~;~rii~ti~~ ~~d '~~diti~ns ~' ~~y"b~'l;r~rib_ tion of'" ed, the commissioner may by· order in writing delegate any of his commis- sioner's powers under this act except those under sulf-section (1) of section pfii)~rlj~ ~)"l 44 t:> any person appointed under sub-section (2) of section 9 to assist him power to transfer pr~ceed_ ings n (1) the commissioner may by order in writing transfer any proccedings or class of proceedings under any provision of this act from any person appointed under sub-section (2) of section 9 to him to any other person so appoint~, whether or not such· person has jurisdiction in respect of the area to which such nr",,p(l-'into; cl~ss' of 'p~oc~edings relate, and the commissioner' may like--yv,ise transfer any such proceedings (including a proceeding already trans'terred under this section) from any, such personto self '  ifperson to whom any proceeding is transfe~~~~p11j ) shall proceed to dispose it of as if it had beenj~~~ ~~'traru;fer of any proceeding shaltnol~ender :necess4ry'ihe any notice already issued before' stich tran~erand, ,the ~horh the proceeding is transferred may, in his discretion, , 'jrom the stage at which it was left by the person from :~r,ti~ was transferred ' ,~(l) the central government shall, as soon as may be after a~pellate " ' of this ad, constitute, an appellate trib1ldal tribwlal as it thinks fit to exercise the ' discharge the' functions conferred on the appellate '111110111' ~1:~ act· , ',j~ '1 ", ' " 1 " i, ! " i; , _jpj<a"-"(" ~ <" •• : :1 ',""  ,,,~,, ~?t ,)~l' t~t' \1 ~  'wbeiethe ~ppe1iate;tb&1ilj¢~tif~\~i~efm~t;"\",  t member shall be a'person wlionas1liet~~ifil~':~'(:~~~7'':t,~~r;'i',,~ ten yearsor who has boon """"",l>e~ of tbe~ , '' ' f'i-"tt:(i,'iflji~' l"~'l) 'iii"~"~;' ,:': ~', ',',, , ~,'l, "sp'mt1('p (not below grade m) for atj~~~t,t~t~~~~~,  ~;ep":'if in practice as an advocate for at least ten years,~ ,,~, ,' ",' tribunal consists of more than on~ member, one such shall be a person qualified as aforesaid '"",~",, '':7~ ~~  :~~ where the number of members '~f the' app:el~~t~' '%-js~31 'than one, the central government shall appoint one of those ,  ,to ,be the p~esident of the' appel1afe"tt1bthjit~i',~:p ::''\: ,",-ni't;- fu lot:~~c~'~,w :':',l""~!~,m~;j  ::dj ""i subject to the provisions of sub-~e't;tio!;<'t)';:ffi~"iffl1lfif~·i{'>j':; '/",,\1)<, conditions of service of the member or membersconstitut-appellate tribunal and the' period fbi'!~nfcn<j~c'h,'tnq:dber members shall hold office, shall be such as may be determined by ","n,-,-,-,- ," government ' ',l:,!),~ ""l~i!·,);?t,d' loi l'~ujtl·" '\ "',1-"'; »h !~:'ih',' ) any vacancy in the membership of the" ap'pellate ',~"bunal be filled up by t~e central government as soon as practicable l', ' \  -  , where the number of members of the, appenate; irlbun~ is thin one and they are divided, the decision\~hallpe ~he 4~~ of the majority, if there be a major~ty; ,¥ the m~bers are divided the decision of the president shall be final ,,' " : ~ y) subject to the previous sanction of the central government, 'j' e' appellate tribunal shall, for the purpose of regulating its proce-(lure and disposal of its business, make regulations consistent with ~e provisions of this act and the rules made thereunder   iiii  (7) the regulations made under sub-section (6) shall be pubrin the oliieia gozette   ,  (8) the appellate,tribunal ~ foj"~·pui'pb8'f:of dtishi'i'ging~ its' functions: have all the powers which are ve:>sted in the commis-~ sioner under section 35, and any proceeding before the; appellate ~ tribunal shall be deemed to be a judicial proceeding within the mean-~ ing of sectioqs 193 an4 228, and for the purpose of section 196 of the s~ in~~ penal code and the appellate tr~una1  ~h~ qe ~~ed·to be"i ~ c~vil  c<?~t ~~~ ~ ~~~p~ of secft6~95~tl'phapt~, x?ocv' ,~ of , the code of cnmmal procedure, 1898 • !~~~\:;:\' • ,,\:'~,j·'~'~~1h{q :,;1,   h!jt!~~f" •• ~: 1 ";':'h h l:f(()d of' \    : ~~!; i ,·"r·~ • ,f •• ';, ",,', il   chapter·iv:  ,' '  't~';(':i  jd) '~" ::  rfcrstra 'on ~  ~~~&~i-mhjo • ~~) ~~ ~'ja:1t~qj>: ,jid:--:-i" ~:, ,;!  ~·i;, ' • "\j:'f1'~ir~::~a-y",t;:} "'n,,,! " registra-13 (1) no dealer shall, while bemt·li8tiletth,jy1tax;\uldelt·~ tion ticm3,~~rry op b~in,eslas  a ~~;,~~}lsj1psj)~eg:j~~:~~,~ed; and ~~ii a·certiflrateof  d?sihn1\c "·!hs,~"",:'" ",,,~,,'  '""',"  ~ ~ ~ ,l1~,-,;~,:zt~!t',-t;1cf~'~n~ <11~-l"~"'1:-"'~~·"'-'f'~·"~·~~-"" "''''~1'' ,:" ~~ '~~~!f - u!~~;; ailci fo slichauth6tity"as may &"pfisirmect>'ti+-'\"~ '~!":'~~' ~"  '''' ;;,;;~ ;-:' -  ,  -•• ' ,j " , ~) , , ,t (3) if the said authority is saqsfied that the: applicatwn> iijltuitl t,!:, order~ it shall, ','in  ac~ordance withsuch rules as j;llay he prescribed,- regjste~ the applicant and grant hid; -a certificate of registrati~ in  the prescribed form which shall specify the goodso'f class of good,s 20   ' ,"  ,' - f _ ,_' for the purposes of sub-clause (io) ofclause(g)o~ stib-sectio'(2-~~;~,;~' al  aedt -a-'_ __ '·,·r~<yt~u'·~<l···~' ':~!''''~:-''  ~ - ~  ,~  ;t·a·;r~,w;t4t~  ",:>:"   "  ~':i~-'~~5'-~"'"  5 "_:u-i! ~,,4 ~j~iv7:~~- ~,~,~'01 ·~;j"fl~~ ~\w', '  t'u:ratt"  v!li,1f,(j··m !rrt'l() 'l'':i(''f  h';! l'jj • f' ~ i"·~~'}l't_up  !0' t~~, " :~  ~~l   ~ a' - ,  1- 0" aa""ll:jt iljjliiebv':deelared ~~t;thf     "iu  • ,~  ~~\ ~"'1tt  'f,> _' ,!, - ' ~  , ~  >'jg -,f~  -' "aaf+~ha'~";ffi>d~''''-'·i~· r'"  -,   ' \ i\t~ '" ' i~'~~~'  ~jf' • ,! ," ' ~o  " _ d, q granted under sub-section (3) of this section or sub-section (2) of 25 section 15 shall not include goods referred to in'sub-clause (i), or sub-clause(ii) of clause (a)-: ofsubo-sectiod (~) of ·section 4<" \~j<;'  voluntary registration i' ~ ••• ~,,: \,' - ,',"10 ",,-' ~itj<~··~>, ~,,,,, :: • ~ j~"-t~' '   ~~"  ';<1': it (1)' any deater,  other than a dealer woo deals exclusi"ely' in one or more classes of goods specified in the third schedule, whose turnover during a year exceeds ten thousand rupees' may,notwttfi- 30 standing that he may not be liable to pay tax undel" section 3', apply for registration under this section  :::  ';';:' (2) 'l11e provisions of sub-sections (2l_ (3) and· (4) of-bection~·· shall apply, as far as may be, in relation to registration of a dealer under this section   'j';' '~-!~rl~ 35 ,:, (3) every dealer who has been regijltered und~ ti$- se<;tton·:$lail for so long as his registration remains·in force;,bellable·~i~ac'f> under this act· ,'  (4) the ref,tistration of a de31er under this section shall be in forcp for a period of not less than three complete years and shall ff'main in force thcre'after unless cancelled under the provisions of this act s 15 (1) any person who intends to establish a busine3s in delhi provld f ~ sional for the purpose of manufacturing goo s 0 a value exceetdng ten rcgistrathousand rupees per ~ear, ma~1 notwithstanding that he is not r;~~ tion quircd to register himself under section 13, apply for provisional registration in such manner an'd to such authority as may be prescribed , ' 1-:j !"l:'-~ (2) if the said authoritf' after inakingsuch inquiry as itriiay' ",i::'~t"i~o ' !consider necessaij1l, ii satisfi,ed as to the ·bona fide intention of the  person making the application, it may grant a provisional certificate of registrati9:rl on such -person furnishing such security as it may  sider  ne:tes'swry'!arcf'sh'a\l 'sbecify 'rnsuch"'certlficat~ t'h)~ goods or'  of goods for: the durpos~s of sup-:dause (iv) of clause'" (a}-,~ ~secho~"orr~f"s~~fi31r4· ,co ,~nt "~~"""'h~:" ,rt~ ~f'\'   "','l-f~~f1:,~,·",!r "1 ~ - ~ 's' :'h-! -{ii (1) every person who has been 'granted a provisional certificate - of rer,islration under this section' shall, for so long as such certificate  force, b~ li::ib1e;'to pay' tax under th~s act: ,~, ,  (,' 'j ~~ ; ;'i::'!  1:  ', '"" ',  " "' ,": "'r   a provisional" certificate- 'of registration granted under' this sha}l bel in force for such period 'as may'be specified, therein ~i' : tii~ ;~ti{~'~~~,~~e~~,ribedtind~~~ ~~b~:~~~~  ;(h ;~y~l~~applimade in: this behalf ih the prescribed manner and subject to'  testrictions~ anw~conditibhs "as')fnay c ~belitnpoom by'1\,  extendt;,  time to ~ime, th~ periild"specifietl~id'}tlte'prtwi$iorlal~eriificate'c ' registration ' (1) no dealer shah, while being liable to pay tax under sub- special (5) of section 3, carryon business as a dealer unless' he has ~egistra   1 t'n t f   tlon ,,·  uh  a specla cer 1 lea e 0 registration every dealer required to be registered under sub-section (1) make an application for registration within such time, in such pumrler and to such authority as may be prescribed (3) if the said authority is satisfied that the application is in brder in accordance with such rules as may be prescribed grant s~ial certificate of registration to the applicant in the pre~cribed ~at ~ said authority shall not specify in any such the goods or class 01 goods for the purpose;i qt' ~lawie ~ ~j~~~ (a) of s~q-~~<;~tqq (2) o~ ~ec;tiqll 4 i, : ~  "!_ (b) in the case of transfer of business by a dealer, the transferee already holds a certificate of registration under this act; or (c) a dealer has ceased to be liable to pay tax under subsection (3) of section 3, 5 the commissioner shall cancel the certificate of registration of such dealer or the transferor, as the case may be, from such date as may be specified by him: provided that in a case referred to in clause (a) or clause (b), the certificate of registration shall be deemed to be inoperative wi~h 10 effect from the date of discontinuance or transfer of the business, as i, the case may be, and in a case referred to in clause (c) from the date on which the dealer's liability to pay tax has ceased, notwithstanding the fact that the order of cancellation is passed or that the , '   particulars of the dealer regarding cancellation are published, as re-1$ guired by section 57, in the official gazette, after , th~~, aforesaid date:-provided further that where a dealer has failed to furnish information regarding discontinuance of his business as required by section 33, the commissioner shau, before cancelling the certificate 20 from any specified date, publish in the official gazette a notice of" his intention so to do for the information of the dealer and shall hear his objections, if any, before passing the order i';! '  ' \  ~,'i (2) a dealer registered under section 14 may,subj~t~, the pro~ti;l sions of sub-section (4) of that section, apply in the-prescribed man-i':t 25 ner not later than six months before the end of a year to the com  · missioner for cancellation of his certificate of registration and the commissioner shall, unless the dealer is liable to pay tax under section 3, cancel the certificate of registration accordingly and such cancellation shall take effect from the end of the year 30 (3) notwithstanding anything contained in sub-sections (1) and (2), the commissioner may at any time for reasons to be recorded in writing and after giving the dealer an opportunity of being heard, cancel the certificate of registration held by such dealer fro~ such date as the commissioner may specify in this be1urif- 35 (a) if the dealer has failed to pay any tax (including any penalty) due from him under any provision of this act; or (b) ,if the dealer holds or accepts or furnishes or causes to be furnished a declaration for the purposes of sub-clause (it7) of clause (0) of ~ub-section (2) of section 4 which he knows ,,0 or has reason to believe to be false; or (c) if the dealer who has been required to furnish, security under the provisions- of section 17, has -failed to furnish such;t security; or (d) if the dealer has failed, without sufficient cause to fur- -~ nish returns required to be furnished by or under the provisions s : 'of this act for a period of one year; or ' (e) if the dealer contravenes or has contravened any provisions of this act; or  (1) if the dealer has been convicted of an offence under this act or under the bengal finance (sales tax) act, 1941 as 10 in force in delhi; or      ), (g) ,if there is any other reason which in theppinion of the: '(~ - commissionf;!r warrants such cancellation" ,;!,i 1"~' \ ,~ !'! ; ' ,,< '  (4) (a) if an order o'f cancellation passed under sub-section (3) is set asicleas a result of an appeal or other proceeding under thil> is act, the certificate of registration of· the dealer shall be restored and he shall be liable to pay ·tax as if his' certificate -had not been cancelled  i (b) if any dealer whose certificate of registration has been re~­tored tinder clause (a) satisfies the c~m,m,i,sst~nm-ill,~~~~~~a, been zo paid by' sueh,deaiw' on- sale of goods made to hiinciurmg fbe period his certificate of 'fegistration was inoperative which,  but for, the cancellafionpf' suchc~rtificate, lie 'would dbt ha'vepaid,tben  the amount of such tax shall be adjusted or refunded, in s~ch manner as may' 'be prescribed 2s (5) every dealer 'who applies for cancellation of his registration shall surrender with his application the certific'ate of registration granted to him and every dealer whose· registration is cancelled oth~rwise_ than on  the ,basis ·of· hisapplic,atioll shall' sutrend~ the certificate of registration within seven days ot' ~he date of commu- 30 nicaiion to him of theord~ of cancellation (6) if a dealer fails to surrender his certificate of registration as provided in sub-section (5), the commissioner may, by an order in writing and after giving the dealer an oppbrtunity of being heard, direct that the dealer ahall pay by way o'fpenalty a sum 'not exceed- 35 ing twenty-five rupees ·for every day 'of 'default   chapter'v returns, assessment, recovery and refund of taxfiling of returns 20 (1) tax payable under this act shall be paid in the manner periodical hereinafter provided at such intervals as may be prescribed payment of tax and (2) every registered dealer and every other dealer who may be required so to do by the commissioner by notice served in the prescribed manner shall furnish such returns of turnover by' such dates and to such 8'1thority as may be prescribed ~! (3) every regrntered dealer required to furnish a return under ii  i~ sub-section (2) shall pay into a government treasury or the re-!:' serve bank of india or in such other manner as may be prescribed, i  ···:·<  \~  tho e full amount of t ax due from him under this act according ,to ' ltuch return, and shall; where such payment is made into a govern-'  ';~ment treasury or the reserve bank of india, furnish along  with " ," 5f<qetreturn' 8'-"receipt<from such treasury or bank showing th~ pay-•• ~~u of such ~~~~~::, ' ,  :  ,: ,  (4) if any registered dealer discovers any mistake or error' in any return furnished by him, he may at any time before the expiry of three months next following the last date prescribed for funush-'  of the return, furnish a revised return, and if ~he revised return a higher amount of tax to be due than was shown in the "!  'kuicu return, it shall be accompanied by a receip~ showing payi,n the manner provided in sub-section (3) of the excess - "                      \'0  _                                                      '                                                                                 ,                                                                                                                                                                                               ~                                                                                                                                                                                                                                 - • ,,' ": ,i)                                                                                                                                                                                                                                                                                                     ,                                                                                                                                                                                                                                                                                                           '                                                                                                                                                                                                                                                                                                                        '1' ey'~~ r~~ur,~ u~de~ ~is section shall be signed' 8qd ve;ified--:        (a) in the case of an individual, by the individual h~elf;' 'where the individual is absent from india, by the individual   concerned or by some person duly authorised by him in this  behah; and where the individual is mentally incapacitated from ~'at1~endir:lg to his affairs, by his guardian or by any other person    competent to act on his behalf;            (b) in the case of a hindu undivided family, by a' karta; :,'" and where karta is absent from india or is mentally incapacitated   -- from attending to his affairs, by any other adult member of such (c) in the case of a company or local authority, by the pal officer thereof; _~'''j in the case of a firm, by any partner thereof not being (e) in the case of any other association, by any member of the association or the principal officer thereof; and (f) 'in the case of any other person, by that person or by some person competent to act on his behalf (6) for the purposes of sub-section (5) of this section and section s 51, the expression "principal officer" shall have the meaning assigned to it under clause (35) of section 2 of the incom~-tax act, 1961  collection of tax only by registered dealers 21 (1) no person who is not a registered dealer shall collect in respect of any sale of, goods by him in delhi any amount by way of tax under this act, and no registered dealer shall make any such 10 collection "except in accordance with this act and the rules macile thereunder (2) notwithstanding anything contained in sub-section (1), a dealer who has been permitted by the commissioner to make a lump sum payment under section 26 shall not collect any swd by way of is tax on the sale of goods if made during ,the period to" which,s,:!ch ,  lump sum' payment 'relates " ' ",,": ',i " "'''1\j8essmentof tax (3) any amount collected by way of tax under this act in contravention of the provisions of sub-section (1) or sub-section (2) shall be deposited in a government treasury or the reserve bank 20 of india and notwithstanding anything contained in this act or any other law for the time being in force, the refund of such amount or any part thereof shall be allowed by the commissioner in the prescribed manner to the person from whom such amount or part thereof was  actually collected:' -  " , ' "  ' ','7' " " ','" , ' - i - " r  ,25 22 (1) the amount of tax due from a registered dealer shall be assessed" separately for each year during which he is liable to pay"·· the tax:'  , provided that when such dealer fails to furnish a return relating to any period of a year by the prescribed date, the commissioner 30 may, if he thinks fit, assess the tax due from such dealer separately for that period or any other period of such year: provided further that the commissioner may, subject to such conditions as may be prescribed and for reasons to be recorded in writmg, assess the tax due from any dealer far a part of a year 35 (2) if the commissioner is satisfied that the returns furnished in respect of any period are correct and complete, he shall assess the amount of tax due from the dealer on the basis of such returns (3) (0) if the commissioner is not satisfied that the :retul1lb furnished in respect of any period are correct and complete and he 40 thinks it necessary to,· require ,th~ presence of the dealer or thf! production ')f further evidence, he shall serve on such dealer in the prescribed manner a notice requiring him on a date and at a place specified therein either to attend and produce or cause to be produced 5 all evidence on which such dealer relies in support of his returns, or to produce such evidence as is specified in the notice (b) on the date specified in the notice, or as soon as may be thereafter, the commissioner shall after considering all the evidence which may be produced, assess the amount of tax due from the 10 dealer 1,~1i'j ':', ":j,' (4) if a dealer fails to comply with the terms of any notice issued under sub-section (3), the commissioner shall assess' to the bes~ of his judgment the amount of tax due from him ~~,-,~ (5) h a deal~ lank to furnish returns in respect of any period 15 by the prescpbed date, the' commissioner shall, after giving the dealer a l1"easonable opportunity of being heard, assess to the best of ~", his judgment the amouhtof tax,'if any, due from'him "  '  it (6) if, upoil information which h~ come in~ his posses!fioll, the · ' commissioner 1s(' satisfied' that any' dealer who has been liable to pay ';:'20 tax under this act in respect of any period has failed to apply for registration within time as required by su~section (2) of section 13 or sub-section (2) of sec~ion 16, as the case may be, the commissioner, shall proceed in such manner as may be prescribed to assess to' the best of his judgment the amount of tax due from the dealer in, ~ 2s respect of such perjod and all subsequent periods and in making '~ such assessment shall give the dealer a reasonable opportunity ~ of , ~ being' heard,l" ahdi thw:codunissioner may, if he is  satisfied that' 'the i' fdefault w a~,  ~, ';d  ~,w ith  ·iit reason8l  b~~  cause, direct that the d~aler  shall pay by' wiii of pei1alfy,i in addition to the amount of the tax 80 ~assess~a'sumlhotlexceed1iig 'one' and a half times that amount  :~ (7) no assessment under the provisions of sub-sections (1) to " (5) shall be made after the expiry of four years and no assessment ~:: under the provisions of sub-section (6) shall be made after the expiry of eight years from the end of the year in respect of which or part t,-'3s of which the tax is assessable:  - provided that where such assessment is made in consequence of ~;:,;or to give effect to, any order of an appellate or revisional authority or of a court, the period of four years or eight years, as the case may if: be, shall'~ reckoned fro~ the date of ~uch order an~ mther ~~t · 40 the provisions of sub-section (1) of section 23 regardmg hme lmut for service of notice shall not apply for assessment made under this ~8) any assessment made under this section shall be without prejudice to any prosecution 'for an offence under this act turnover escaping assessment (9) in computing the period of limitation for the purposes of this section and section 23, any period during which any proceeding under this section is stayed by an order or injunction of any court 5 shall be excluded , 23  (l} j where the commissioner has reason to believe that the whole or any part of the turnover of a dealer in respect of any period has escaped assessment to tax or has been under-assessed or hasbeen assessed at a rate lower than the rate at which· it is 10 assessable~' or any deduction has been wrongly made therefrom, the commissioner may-- ja~ w:it,hin eight years from the end of the year in r~spect ; or-which oi"part of which the assessment is made, in a case  ' ~h$;f't9,  9~~e~,  has ~oncealed, omitted or failed to disclose is fully the particulars of such turnover; and  , - (b) within four years from the end of the year in respect 01 which or part of which the assessment is made, in any other case, serve a notice on the dealer and after giving the dealer an opportunity 20 of being· heard and making such inquiry as he considers necessary, proceed  to: detej:jl1ine the, amount of tax due from the dealer in respect of such turnover,~ and the provisions' of this act shall, so far p:l,~ be,:~ppl~~cco~dingly ,  ~: '- "- ,,' i ~ , ; ~ " ',' '; '\~ -, ' " p -' ':"~ ," , - ,e~zd~4tipn:-for, the purpose of this section, production before 25  the commissioner of account books or other evidence from which material evidence could with due diligence have been discovered by the commissioner will not necessarily amount to disclosure within the meaning 01 this section - (2) no order of assessment, re-assessment or re-computation 30 shall be made under sub-section (1), after-(a) the expiry of four years or eight years as prescribed in sub-section (7) of section 22; or (b) the expiry of one year from the date of service of notice under sub-section (1) whichever is later 35 24 (1) the-amount of tax-' (a) due where returns have been furnished without receipt showing full payment thereof; or payment and recovery of tax (b) assessed or re-assessed for any period under section 22 ur section 23, less the amount, if any, already paid by the dealer in respect of the said period, "hall together with any penalty that may be directed to be paid s undc'r any of the provisions of this section, sub-sedion (6) of section 22, section 47, section 48 or section 49 be paid by the dealer or the person liable therefor into a government treasury or the reserve bank of india or in such other: manner as may be prescribed, within thirty days from the date of service of notice of demand issued by the commissioner for this purpose: provided that where the commissioner has reason to believe that,  will be· detrimental to revenue if the 'full period of thirty days;, is allowec,l, he may direct that the sum specified in the of demand shall be paid within such period being a period 'than the period of tpirty days aforesaid, as may be specified: by that notice on an application' made before the expiry of the due dat&n sub-section (1), the commissioner may in respect of any pardealer or person and for reasons to be recorded in writing, the time for payment or allow payment by instalments  or stay, s~bject to such conditions ashe may think fit ·toimpos~   circumstances o'f the case  ~he amount of~ax,and penalty (if any) is not paid  within specified in sud-section (1) or extended under sub-section; - • - case may be, the de~~r, orpersoil 1i~le th~~~f6r· sh~u be  be in default' in respect of that amount a case where payment by instalments is ~nowed under (2) and the dealer or the person liable for such payment ,deotault in paying anyone of the instalments within the under that sub-section, the dealer or the person aforesaid deemed to be in default in respect of the whole of the outstanding and the other instalment or instalments deemed to have been due on the same date as the instal  in default a dealer or a person is in default or is deemed to be making payment of tax, he shall, in addition to the ulal'r·  ·  payable under the foregoing sub-sections, be liable otpenalty anamount which'in the case of a conti-,beulc:reqed,from' ume to tune, so, however, that the total amount of penalty does not exceed the amount of tax in arrears: provided that hefore levying any such penalty the dealer or the person aforesaid shall he given a reasonable opportunity of being heanl 5 (6) where as a result of any final order the am~unt of tax, with resp~~, to the d~\fault in the payment of which the penalty was levied, has heen wholly reduced, the penalty levied shall be cancelled and the amount·of penalty paid shall be refunded, (1) any amount of tax or penalty in :respect of which a dealer 10 or person is in default, or any composition moneyaue under section 26 or section 46 which remains unpaid, shall 'be recoverable as an arrears of land revenue: " }f_'~;" ,,~ ('ri~·'; :< 'i~ ""):~\~;) "provided that where security has been furnished by a dealer under sub-section (2) of section 15 or section 17" th~icommissioner, is may, for good 'and sufftcient reasons, realise any amount of tax or penalty'remaining unpaid as aforesaid or part thereof by ordering forfeiture of the whole or any part of the security special modeot , recovery 25 (1) notwithstanding anything contained in any law or contract to the contrary, the commissioner may at any time or from 20 time to time, 'by notice in writing, a copy of which shall be forwarded to the dealer at his last known address require,-,j'  ' ; t " ; i·  \:  -, ,  ',""' , '  '" "  '::!::, (army pers~njrom,who~ any ~9unt qf,mo~eyis ~ue"or" ],'l ';nliay beeome dult'tq a dealer on whom notice ,j:1as been serv~'" ~ ": und~ sub-sectiq~'jl) of section 24; or , 25':1 (b) any person who holds or may subsequently hold money for or on account of such dealer, - r  - to pay to the commissioner, either forthwith upon the money becoming due or being held or within the time specified in the first mentioned notice (but not before the money becomes due or is held 30 as aforesaid) so much of the money as is sufficient to pay the amount due by the dealer in respect of the arrears of tax and ,penalty under this act, or the whole of the money when it is equal to or less than that amount  - explanation-for the purpose of this section, the amount of 35 money due to a dealer from, or money held for or on account of a dealer by, any person; shall be calculated by the cornmfafoner after deducting therefrom such claims (if any) lawfully subsisting, 81 may have fallen due for payment by such dealer to such person1 : (2) the commiasianef may amend or revoke any such notice, or ex~ the time for making any payment in pursuance of the notice (3) 6uly person making any payment in compliance with a notice urlder this section shall be deemed to have made th~ pay-5 ment under the authority of the dealer, and the receipt of the commissione-r shall constitute a good and sufficient discharge c1l the liabwty of such pex:soo to the extent of the amount referred to, in the receipt (4) any person discllarging any liability to the dealer after 10 receipt of the notice referred ~o in thia section, shall be personally liable to the commissioaer tg the extent of the liability dbchused or to the stent ot the liability of the dealer for tax and penalty, whichever i! less )" (5) where a person to whom a notice under this section is sent ~l, 15 proves to the satisfaetton ot the commissioner that the sum demand-~ ed or any part thereof is not due to the dealer, or that he doea dot i": hold any money fol' or on account of the dealer then, nothing  contained in this section shall be deemed to require such·' person  ' to pay any sw!h sum or part thereof, as the case may be, to the ,~:' ~o commissioner a (6) ajty amount of money which the aforesaid pel'son is required ~' to pay to the commissioner, or for which he is personally liable to : the commissioner under this section shall, if it remains unpafd,be recoverable as an arrear of land revenue 'z~ 26 the conunissioner may, in such circumstances and subject lump sum  to such conditions as may be prescribed, pen¢t any dealer to pay paymellt ~ ; ijjl lieu of the amount of tax payable by him under the provisions of tax of this act, a lump sum determined in the prescribed manner, by way of composition  -27 (1) if any dealer satisfies the commissioner that the amount refund i of tax paid hy him or on his behalf for any year exceeds the amount ' payable by bim under tbis act for that year, he shall, on making a ~'i1f~: claim in the prescribed form and verified in the prescribed manner r·, be entitled to refund of the excess either by cash payment or at his ~:i':f is opuon by dedw:tion of such excess from the amount of tax and f;~~'~: l'edalty (if ajty) due ip respect of any other period: :~i·' provided that the commissioner shall first apply such excess '[: ':~;" towards the recovery of any amount in respect of which' a ftotice  }'lldlder section 24 has been issued and shall then refund the balance ;~"'ljakj& if any - _ and that buch delay was not wholly due to any fault, omission or negligence on the part of the dealer, the amount of tax, if any, paid on sales of goods made to such dealer which would not have been payable but for the delay in the grant of a certificate of registration 5 as aforesaid, shall be adjusted against any amount payable by the dealer under this act: provided that-(4) in case the amount of tax so paid by the dealer exceeds his liability to pay any amount under the act, the adjustment 10 shall be made to the ,extent of such liability and the balance shall be refunded to the dealer, and (b) in case there is no liability to pay any amount under the act, the entire amount of tax paid shall be refunded to the dealer: is provided further that the dealer shall not be entitled to any such adjustment or refund in respect of the goods which are not speci1led in the certificate of registration granted to him r (2) no application for adjustment or refund of tax under this section shall be entertained unless it is made within three months 20 from the date on' which a certificate of registration is granted to the dealer  chapter vi l!abnin in special casi'sii' to pay taxis transferred absolutely by sale, gift, or otherwise, or incaseol ;< 29 (1) where the ownership of the business of a dealer liable liability i' " tran$erred by way of lease, and the transfer~ or lessee carries on :-~~ ) such business either in its old name or in some other name,-dell it "" " (4) the transferor and the transferee or the lessee, as the 30 i'~ ,< , case may be, shalf jointly and severally be liable to pay the tax and penalty, if any, payable in respect of such business and remaining unpaid at the time of the transfer; and (b) the transferee or the lessee shall be liable to pay tax on the sales of goods effected by him with effect from the date of such transfer, and shall, if the transferor is a registered dealer, '" 3,' apply within thirty days of the transfer, for amendment of the ~"~'>' certificate of registration unless the transferee or the leaee ~~~ • " already holds a certi1lcate of registration (2) when a dealer liable to pay tax transfers by way of sale or otb!rwise the ownership of a part of his bujnell, the tradlferw ,hall be liable to pay the tax in respect of the stock in trade sb transferred, as if it was a regular sale in the course of business 30 (1) every person-(a) who is the liquidator of any company which is being wound up whether under the orders of a court or otherwise; or s ! liability in case of company in liquidation (b) who has been 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 commissioner 10 (2) the cnmmissioner shah after making saeh inq\liries or calling for such information as he 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 commissioner, would be sufllcient to provide for any is tax (including penalty) which is then or is likely thereafter to become, payable by the company (3) the liquidater shall not part with any of the asaets of the company or the properties in his hands until he has been dotifted by the commissioner under sub-section (2) and on being so notified, 20 shall set aside an amount equal to the amount notified and, until he so sets aside such amoudt saau not part with any of the assets of the company or the properties in his hands: provided that nathmg contained in this sub-section shall debar the liquidator from parting with sueh assets or pr&perties for 1m 15 purpose of the payment of the tax and penalty (if ad,, p8'j'8b1e by the company or for making any payment to secured creditors whose debts are entitled under law to priority of payment over debts due to government on the date of liquidation or for meeting mch costs and expenses of the winding up of the company as are in the opinion 30 of the commissioner reasonable (4) if the liquidator fails to give the notice in acogl'dance with sub-section (1) or fails to set aside the amount as required by subsection (3) or parts with any of the assets of the company or the properties in his handsin contravention of the provljlolii of that 35 sub-section, he shall be personally liable for the payment of the tax and penalty (if any) which the company would be liable to pay: provided that if the amount of lily tax (incluciidl ped&lty) payable by the company is notified under sub-section (2) the personal liability of the liquidator under thls sub-section shall be to the extedt of such amount (5) where there are more liquidators than one the obligations and liabilities attached to the liquidator under this section shall 5 attach ro all the liquidators jointly and severally (6) when any private company is wound up and any tax (including penalty) assessed on the company for any period, whether before or in the course of or after its liquidation, cannot be recovered, then every person who wab a'director of the private compbny at any 10 time during the period for which the tax is due, shall be jointly and several!ly liable for the payment of such fax (including penalty)' unless he proves to the satisf-action of the commissioner that nonrecovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company 15 (7) the provisions of this section shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force (8) for the purposes of this section, the expressions "company" and "private company" shall have the meanings respectively assigned 20 to the-ill io1ilder clauses (i) and (iii) of sub-section (1) of section 3 of the companies act, 1956 31 (1) where a dealer is a firm or association of persons or a liability hindu undivided family, and such firm, association or family has inother discontinued businesscases 30 (a) tax and penalty' (if any) payable under this act by such firm, association or family up to the date of such discontinuance may be assessed as if no such discontinuance had taked place; and (b) every person who was at the time of such discontinuance a partner of such firm, or a member of such association or family, shall, notwithstanding such discontinuance, be liable jointly and severally for the payment of the tax assessed and penalty imposed and payable by such firm, association or family, whether such tax (including penalty) has been assessed prior ,: 3, to or after such discontinuance, and, subject as aforesaid, the  provisions of this act shall apply as if every such person or  partner or member were himself a dealer ii (2) where it is found that a change has occurred in the con-ii: ~tution of the firm or association, the firm or association as re-cons-40 tltuted as well as partners or members of the firm or association as • ;  it, emtecl  ' before the re-constitution, shall jointly and severally be   lt~1c!lt) pay -any tax (including penalty) due from such flrm or usa-:  ~ ettlanfor any period before its re-constitution "" , ~;(" , :~  ,  "~--\~ (1) the provisions of sub-section (1) shall, so far as may be; apply where the dealer, being a firm or association of persons, is dissolved, or wl1ere the dealer, being a hindu undivided family, has effected partition with respect to the business carried on by it, and accordingly references in that sub-section to discontinuance shall 5 be construed as references to dissolution or, as the case may be, to partition (4) where a dealer liable to pay tax under this act dies then,-(a) if the business carried on by the dealer is continued after his death by his legal representative or any other person 10 such legal representative or other person, shall be liable to pay the tax due from such dealer under this act; ~ of (b) if the busine~ carried on by the dealer is discontinued after his death, his legal representative shall be liable to pay out of the estate of the deceased, to the extent the estate is 15 capable of meeting the charge, the tax and penalty (if any) due from such dealer under this act, whether such tax and penalty (if any) has been assessed before his death but has remained unpaid, or is assessed after his death explanation-for the purpose of sub-section (4) "legal repre- 20 sentative" has the meaning assigned to it in clause (11) of section 2 of the code of civil procedure, 1908 chapter vn  liability to produce accounts and supply of information32 every registered dealer or other dealer on whom a notice 25 has been served to furnish returns under sub-section (2) of section ~ shall keep a true account of the value of goods bought and sold by him, and if the commissioner considers that such account is not sufficiently clear and intelligible to enable him to make a proper check of the returns referred to in that sub-section, he may require 30 such dealer by notice in writing to keep such accounts (including records of sales) as may be specified therein 33 if any dealer to whom the provisions of sub-section (2) of section 20 apply-(a) sells or otherwise disposes of his business or any part 35 of his business or any place of business, or eifects or comes to know of any other change in the ownership of the business; (b) discontinues his business or changes his place of b~­ness or warehouse, or opens a new place of business; or (c) changes the name or nature of his business or eifec;ts 40 any change in the goods or class of goods in which he carries on his business and which is or are specified in his certi1icate of relibtration he shall within the prescribed time inform the prescribed authority accordingly; and if any such dealer dies, his legal representative, shall in like manner, inform the said authority 34 (1) the commissioner may subject to such conditions as may produc-5 be prescribed require any dealertion and , inspeotion (a) to produce before him such account books, registers or ofaccodocuments, unts and documents (b) to furnish such information, relating to the stock of and goods of, or purchases, sales or deliveries of goods by, the dealer search of 10 or any other i~ormation relating to his business, premihs as may be deemed necessary for the purposes of this act (2) (a) all account books, registers and documents relating to the stock of goods of, or purchases, sales and deliveries of goods by, any leader; and is (b) all goods kept in any place of business or warehouse of any dealer, shall at all reasonable times be open to inspection by the commissioner and the commissioner may take or cause to be taken such copies or extracts of the said account books, registers or documents 20 and such inventory of the goods found as appear to him necessary for the purposes of this act (3) where, upon information in his possession or otherwise the commissioner or any person appointed under sub-section (2) of section 9 to assist him (hereafter in this section referred to as the 2s sales tax officer) has reasonable ground to believe that account books, registers or documents of any dealer may be destroyed ( mutilated, altered, falsified or secreted or any sales by that dealer have been or may be suppressed, with a view to evade or attempt to evade payment of tax due under this act, the commissfon~ or the sales 30 tax oftlcer may make an application to the magistrate of the ftrst class having jurisdiction for an order for the seizure of such account books registers or documents or for checking the sale proceeds of the dealer (4) mter considering the application and hearing the commis-3s sioner or the sales tax officer, if necessary, the magistrate may by order authorise the commissioner or the sales tax officer-(a) to enter, with such assistance as may be required, any place of business or warehouse of the dealer or any other place where suah account books, registers or documents or the sale 40 proceeds are kept; (b) to search that place of business, warehouse or that other place in the manner specified in the order; (e) break open the lock of any door, box, locker, safe, 1,; qurah or other receptacle where the keys thereof are not available; and (d) to seize such account books, registers or documents, or any inventory of goods as appear to him necessary for the pur-s poses of this act (5) the commissioner or the sales tax oftleer, as the case may be, shall keep in his, custod'y the account boob regimera or documents seized under sub-section (4) for such period dot later than the completion of all the proceedings under the act in respect of [0 years for which those account books, registers or documents are relevant, as he considers necessary, and thereafter shall return the same to the dealer or any other person from whose custody or power they were seized and inform the magistrate of such return: provided that the commissioner or the sales tax officer may, is before returning such account books, registers or documents as aforesaid, place identification marks on them or' any part thereof (6) save as otherwise provided in this section, every search or seizure made under this section shall be carried in accordance with i at the- pwvisions of the code of criminal procedure, 1898 relating to 20 searches or seizures made under that code (7) the commissioner may, for the purposes of this act-(a) require any person, including a banking company or any officer thereof, to furnish infol'dlation in relation to rch points or matters or to furnish statements of accounts and atfairs 2s verified in the manner specified by him, giving infonnation in relation to such points or matters as in his opinion will be useful for, or relevant to, any proceeding under this act; (b) require any person-(i) who transports or holds in custody, for delivery to 30 or on behalf of any dealer any goods to give any information likely to be in his possession in respect of such goods or to permit inspection thereof, as the case may be; (ii) who maintains or haa in his posieiiion any account books, registers or documents relating to the busine51 35 of a dealer to produce such account books, registers or documents for inspection 35 (1) the commissioner or any person appointed under sub- power of secti~n (2) of section 9 to assist him shall for the purposes of this commis-act have the same powers as are vested in a court under the code sioner and of civil procedure 1908, when trving a suit, in respect of the fbi- othther   -au on-:; lowlilg mj tters, namely:- ties to (n) enforcing the attendance of any person and examining ta~~ him on oath or affirmation' evidence , on oath (b) compelling the production of accounts and documents; etc and 10 (c) issuing commissions for the examination of witnesses, , and any proceeding under this act before the commissioner or any person appointed unaer sub-section (2) of section 9 to assist him shall be deemed to be a judicial proceeding within the meaning of secticns 193 and 228, and for the purposes of section 196 of the indian j 5 penal code (2) subject to any rules made in this behalf, any authority referred to in sub-section (1) may impound and retain in its custody for such period as it thinks fit, any account books or other documents produced before it in any proceedings under this act: 20 provided that a person appointed under sub-section (2) of section 9 to assist the commissioner shall not-(a) impound any account books or other decuments without recording his reasons for so doing; or 25 (b) retain in his custody any such books or documents for a period exceeding thirty days, without obtaining the approval of the commissioner therefor chapter viit ap!>mls, jleli'eilj:ncj: and rbvision 31 (1) any dealer aggrieved by any order, not being an order appealj 30 mentioned in section 37, passed under this act or -the rules made thereunder may appeal to the prescribed authority: provided that where an order, not be!ng an order mentioned in ~ec'tion 37 or made under section 40, is passed by the commissioner, the deah~r rna\' appeal therefrom to the appellate tribunal ~'i (2) an\' person aggrieved by an order passed in appeal by the -- prescrib~'d authority may appeal to the appellate tribunal against 8uch orc\"r (3) subject to the provisions of section 54, no appeal shall be entertained unless it is filed within sixty days from the date of 8er~ vice of the order appealed against 40 (4) every appeal filed under this section shall be in the prescribed fonn and shall be verified in the prescribed manner and ill the case of an appeal to the appellate tribunal, shall be accompanied by a fee of one hundred rupees (5) no appeal against an order of assessment with or without penalty or against an order imposing the penalty shall be pnlertained by fin appellate authority unless !'luch appeal is accompanied by a satisfactory proof of the payment of tax ~ with or without penalty or, as the case may be, of the payment of the penalty in respect of which the appeal has been preferred: provided that the' ~ppellate authority may, if it thinks fit, for reasons to be recorded in writing, entertain an appeal against such 10 order- (a) without payment of the tax with penalty, if any, or as the case may be, of th~ penalty' on the appellant furnishing in the prescribed manner security for such amount as it may direct, or i s (b) on proof of payment of such smaller sum, with or without security for such amount of tax or penalty which remains unpajd, u it may direct (6) the appellate authority may, after giving the appellant an opportunity of being heard,-20  (a) confirm, reduce, enhance or annul the assessment (inciuding any penalty imposed), or (b) set aside the assessment (including any penalty imposed) and direct the assessing -uthority to mak;, a fres~ 8ssess; ment after such further inquiry as may be dire~ted, or  :  25 (c) pass ~uch order as jtmay think fit (7) save as provided in' section '38 • an order passed by the appellate tribunal on appeal shall be nnal 37 no appeal and no application for revision shall lie againlt-non-appealable urdl!rs (a) a notjce issued under this act calling upon a dealer for assessment or asking a dealer to show cause as to why he ~o should not be prosecuted for an offence under this act; or (b) an order pertaining to the seizure or retention of necount books, registers and other documents; or (c) an order sanctioning prosecuti6n under thi~ act; or 15 (d) an interim order passed in the courseof any proceed ings 311 (1) within sixty days from the date of an order passed by statement the appellate tribunal under sub-section (6) of section 36, being of case an order which affects the liability of a dealer to pay tax or penalty to the under this act, the dealer or the commissioner may, by application ~~~ 5 in writing, and accompanied where the application is made by a  dealer, by a fee of one hundred rupees, require the appellate tribunal to refer to the high court any question of law arising out of such order, and, subject to the other provisions contained in this ~ectilm, the appellate tribunal shall, as soon as may be after the 10 receipt of such application, draw up a statement of the case and refer it to the high court: provliled that the appellate tribunal may, if it is satisfied that the applicant was' prevented by sufficient cause ,from presenting the application within the period herein~or~ specified, allow it to i s be presented \vithin a further period not exceeding thirty days (2) if the appellate tribwlal refuses to state the case which it has been required to do, on the ground that no question of law arises, the dealer or the commissioner, as the case may be; rnay, within thirty days of the communication of such refusal either 20 withdraw his application (and if he does so, any fee paid' shall be refunded), or apply to the high court against such refusal (3) if upon receipt of an application under sub-section (2), the high court is not satisfied as to the correctness of the decision of the appellate tribunal, it may require the appellate tribunal to ~as atat~: th~"case and refer it, and on receipt of such requisition, the t:~ \' appel1at~ tribunal shall state the case jl,ild refer it accordingly [i·:~i,, (4) if the high court is not satisfied that the statements in a case ':·>~;jeferre(bto it ll!"e sufficient to enable it to determme the qu"tions f', ,~ raised thereby, the court may refer the case back to the appellat~ , 30 tribunal for the purpose of making such additions thereto or alterations therein as it may direct in that behalf ~' (5) the high court upon the hearing of any such case shall decide the question of law raised thereby, and shall deliver its judgment thereon cuntaining the grounds on which such decision is founded, 3~ and shall send to the appellate tribunal a copy of such judgment ' under the seal of the court and the signature of the registrar, and /l'r ,' the appellate tribunal shall dispose of the case accordingly r',~,·,·:, (6) where a reference is made to "the high court under this ~:, section the costs [including the disposal of the fee referred to in 8ub· 40 section (1)] shall be in the discretion of the court i~am the pay~en:t of the amount of'tax and~alty (if any) due : :i\ in accordance with the order of the appellate trlbunal in reaped of !'\'~k, , which an application has been made under ~uh-5edi()n (l) shail ndt be stayed pending the disposal of such application or any reference made in consequence thereof but if slich amount is reduced as a result of such reference, the excess tax paid shall be refunded in accordance with the provisions of section 27 5 39 the commissioner may call for and examine the ret:'ord of any proceeding under this act, and if he considers that any order passed therein by any officer appointed under sub-section (2) of section 9 to assist him, is errorleous in so far as it is prejudicial to tbe interest ftevisioo of orders prejudicial to  revenue of the revenue, he ·may, after giving the dealer an opportunity of 10 being heard and after making or causing to be made such inquiry as he deems necessary pass such order thereon as the circumstances of the case justify, incl~ding an order enhancing or modifying the assessment and penalty (if any) imposed, or cancelling the assessment and penalty (if any) imposed and directing a fresh ass~sment: 15 provided that no proceedings under this sub-section shall be initiate4 after the expiry of two years from the date of the order sought to be rev~ed revi:lion of other orders 40 (1) in the case of any order, other than an order referred to in section 37 or to which section 39 applies, passed by an officer appointed 20 under sub-section (2) of' section 9 to assist him, the commissioner may, ~ither on his own motion or on an application filed in accordance with such rules ,is may be prescribed call for the record of any proceeding under this act in which any such order has peen passed imd may make such inquiry or cause such inquiry to be ma-de and, subject 2s ta the provisions of this act, may pass such arders thereon, not being an order prejudicial to the assessee, as he thinks fit: provided that the commissioner shall not revise any order under this sub-section,-(a) where an appeal against the order is pending before the 30 appellate authority under section 36; or (0) where, ~f such appeal lies the time within which it may be filed has not expired; or (c) where in the case of the second appeal, the dealer has not waived his right of appeal 35 (2) the commissioner shall not of his own motion revise any order under this section if the order has been made more than one year previously (3) in the ease of an application for revision under this section by the dealer, the application lllust be made within one year from the 4d dnte on which the order in questiqn was wmmunicated to him or the date on which he otherwise comes to know of it whichever is earlier rectification of mistket 41 (1) the commissioner or any person appointed under sub-section (2) of section 9 to assist him may at any time within two 5 years from the date of any order passed by the commissioner or by that person, as the case may be, on his own motion, rectify any mistake apparent from the record, and shall within a like period, rectify any such mistake which has been brought to his notice by any person affected by such order:' ' 10 provided that, no such rectification shall be made if it has the effect of enhancing the tax or reducing the amount of a refund, unless the commissioner or the person appointed under sub-section (2) of section 9 to assist him, as the caie may be, has given notice in writing to the person likely to be affected by the order of his intention to do i s so and has allowed such person a reasonable opportunity of being heard, (2) the provisions of sub-section (1) shall apply to the rectification of a mistake by an appellate authority under section ::16 as they apply to the rectification of a mistake by the commissioner ;:0 (3) where any such rectifi~ation has the effect of reducing the :lmount of the tax or penalty the commissioner shall, in the prescribed manner, refund any amount due to such person (4) where any such rectification has the effect of enhancing the amount of the tax or penalty or red1:lcing the amount of the refund, , ;: 2s the commissioner shall recover the amount due from such person in ~~ the manner provided for in chapter v   chapter ix offences and penaltiest,," , 42 whoever-otfenc  (a) holds produces or accepts a declaration under the first proviso to sub-clause (it,) of clause (a) of sub-section (2) of section 4 which h~ knows or has reason to believe to be false; or (b) carries on business as a dealer in contravention of subsection (j) of section 13 or sub-section (1) of section 16; or (c) not being a registered dealer, falsely represents when purchasini goodi that he is a registered dealer; or (d) being a registered dealer falsely represents when purchasing any goods or class of goods that such goods or class of goods are covered by his certificate of registratioo; or (e) fails to comply with the provi~ions of sub-section (5) of section 19;or (f) fails, without sufficient cause, to submit any return as required by sub-section (2) of 'section 20 or submits a false return; or (g) contravenes the provisions of section 21 or of sub-section (2) or sub-section (3) of section 56; or 10 (h) fails, when' required so to do under section 32, to keep accounts (including records of sales) specified in the notice; or (i) knowingly maintains of produces incorrect accounts, registersor documents or knowingly furnishes incorrect information; or i, (j) neglects to furnish any information required by section 33; or (k) refuses to comply with any requirements m1de of him under section 34; or (l) obstructs or prevents any officer making:, inspection, 2 search or seizure under ~ection 34 or performing any functions under section 56, as the case may be; or (m) aids or abets any person in the commission of any oftence specified in clauses (a) to (l), '~ "', ,; f; , , - shall, b,e punishable with simple imprisonment which may extenq ~, to six months, or with fine, or with both, and when the ottence is a continuing one, with a daily fine not exceeding fifty rupees during the period of the continuance of the offence: provided that no prosecution for an offence against this act shall be instituted in respect,of the same facts in respect of which ii penalty 30 has been imposed under sub-section (6) of section 19, sub-section (6) of section 22, section 47, section ~ or section 49-offences by compani  43, (1) where an offence under this act has been committed by a company, every person who at the time the offence was committed, was in charge of, and was responsible to, the company for the 'conduct 35 of the business of the company, as well as the company, shall be deemed to, be guilty of the offence and shall be liable to be proceeded against and punished accordingly: provided that notliing contained in this sub-section 'shall render any luch person liable to any punishment provided in this act if he 40 - pmves that the offence was committed without his knowledge or that h" exercised all due diligencc to prevent the commission of ,uch , ,n·['nee (2) kntwithstanding an~,thill~ l'(mtainoo in sub-section (1), where 5 (111 offence under this hct hlls h"en committed by a company and itis proved that the offf'nce has 1lf'cn committed with the consent or conni· vance of, or that the commission of the offence is attributabje tl) any neglect on the part of an~' director, manager, secretary or other oft\cer of the company, such director, 'manager, secretary or other officer shall ie also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordinily erplanation: -:for the purposes of this section,-(a) "company" means a hody corporate, and includes a firm or other association of individuals: and ~  i, (b) "director", in relation to a firm, means a partner in the firm 44 (1) no court shall take cognizance of any offence under this cocni-~ act 'or rules made thereunder except with the previous sancti~n of zance of ~  -the commissioner, and no court inferior to that of a magistr:ate of offences   20 th'' first class shall try any such offence ~ (2) notwithstanding anything contained in the code of criminal procedure, 1898, all offences punishable under this act or rules made thereunder sh~ll be cognizable clnd bailable 45 (1) subject to such conditions as may be prescribed, 'the com-invet!~~~";, "  -th' 'th 11' t' 1 't·1 1" i tion ot  'rlssjoner may au orlse cl er genera y or in re~e~ o a ?~~ icu ar ofr~c~ '" ' ~as~ or class of cases any person appomted unqer sub-section (2) 9f ,~g  ;~ec~ion 9 to assist him to investigate' all or any of th~ offences' ptinish~ " 1  able under this art ' '  '' ', (2) every person so authorised shall in the conduct of such in· if 'a, ,y,estigation, exercise the powers c~nferred by the code 0: criminal ~ ~ocedure, 1898, upon an officer in charge 01 a pohce station for the investigation of a cognizable offenn'> t:1i~\ '~" 46 (1) subj('ct to such conditions as may be prescribed, the com compoai-~,:;, missioner may accept, from any person alleged to have committed an tion of e ··:· , "o,ffence under section 42 or under any rules made under this act, either oftencetl ,before· or aiter the commencement of any proceedings against such : ,;,: ~rson in resppct of such offence, by way of composition for such  !!o~ence, a sum not exceeding five thousand rupees or where the offence ~,leged to have been committed is under any of the clauses (4), (b) (('), (d) a~d (f) of that section not exceedtn$doubl~ the amount of -the ttl=< which would have been payable b~' such per;;on hlld hi? complied with the provisions of the act whichever is higher (2) on payment in full of such sum as may be determined by the commissioner under sub-section (1)-~ (a) no proceedings shall b~ commenced against such person as aforesaid; and (b) if any proceedings have ~n already commenced ag~inllt such person as aforesaid, such proceedings shall not be further  proceeded with 1 c penalty f<>r failure to submit return '7 if a registered dealer fails, without reasonable cause, to furnish any return 8s required by sub-section (2) of section 20 or to pay the tax due according to the return as ~qujred by sub-section (3) of that section within the prescribed period or if a dealer on whom a notice has been served under sub-section (2) of the said section fails 15 likewise to furnish the return within the prescribed period the com missioner may, after giving the dealer an opportunity of being heard, direct that the dealer shall pay, by way of penalty, in addition to the amount of tax payable, a sum not exceeding one and :l half times that amount or where no ta}\: is payable a sum not exceeding one thousand 2e rupees penalty for concealment 01 sales or furnishing inaccurate particulars or making false repre!<cntations 48 (1) if the commi»sioner or any person appointed under subsection (2) of section 9 to assist him, in the course of any proceedings under this act is satisfied that a dealer has concealed the particulars of  his s8ies or has furnished inaccurate particulars of his sales and ls h:ij thereby returned figures below the real amount be may, after giving the dealer a reasonable opportunity of being heard, direct that the ~ealer shall pay, by way of penalty in addition to the amount of t ax payable, a sum not exceeding one and a half times the amount of tax which would have been avoided if the figures returned by the ;0 dealer were accepted as correct (2) if a person commits an offence under dausc (n) of section 42 the commissioner or any person appointed under sub-section (2) of section 9 to assist him may after giving that pers!)n a reasonable opportunity of being heard by order in writing, impose upon liuch 35 person by way of penalty it sum not exceeding one and a half times the amount of tax which would have been payable in respect of the sale of goods involved as if such sale of goods was liable to tax (3) if a person purchasing good~ commits an offence under clause (e) or claqse (d) of ~tion 42 the authoiit~' which granted 4<' him or as the (:,1';,,' rnay ht" i,~ ('()iiii'" (':ii (' t l' t'fi f , , ~ran 111m a cer j cate 0 f('blstration under this act, may, after c' vl'ng h' " u'l'~:" , , -,' 1m a r,-asonav e opportunity of being he,ll'd, hy order iii  ,,,riling, impose upon him, by way of penalty, a sum not ex('('edl!"5 one and a half times the 4ix which 5 would ha~ been levied ll:jder this \('t in respect of the s~le to him 1)1' the ~'ood<;, if the (~:-rence had not been committed ":~, i~ • 49, if any person acts in contravention of the provisibh;' of sec- penalty lion ~1, he shall be liable to a penalty not exceeding one:anda half for co~-tl' nes the tax wrongly collected: travenma  ' provision pr 'd d th t th c  h ,"'4-~ regardling  ovi ca e omll1lssloner s alj not impose any sucn-penalty collection unless the peirson concerned has been given an opportuni~f being oun by heard  ',tt'~ dealers 1," •• '"  ,:~,~ 'i chapter x miscellaneous  ;: 15 50 (1) after a hindu undivided family has been' "'partitioned, service notices under this act shall be served on the person who:wiis·the last of notice manager of the hindu family, or if such person is dead:'~en on all wh~n , , ,  family is adults who were members of the hmdu family immed¥l~ely before disrupted the partition _ :i: or firm v  - is dis-:;n (2) where a firm or an aesociation of persons is dissontid, noti~es solved, under this act may be served on any person who was ati~tner (not being a minor) of the firm, or member of the associatio~ the case may be, immediately before its dissqwtion, ~~) -  - ioioo1 51 where an assessment is to be ~ade in respect of be~~ which service ~s has been discontinued, a' notice under this aet shah be' ~~d ih the ?f notice f fi ' t' f  h' in the case 0 a rm or an associa ion 0 persons on any perso~w 0 was a case of member of such firm or association at the time of its discontinuance discon-()!' in the case of a company on the principal officer ther~': tinued  ~:, businpss 52 (1) any person, who i~; entitled of required to ~end before appear-~o ;1n\' 'hlthoril,y in connection with any proceeding under ~s act, may ance -before ' attend - ~,;" any authority in proceedings  (a) by a person authorised by him in writi~~thjs behalf, being a relative or a person regularly employed b~: or '  ~, (h) by a i e"ga i practitioner or chartered accountant, who is not disqualified by or under sub-section (2); or 3s (c) by a sales-tax practitioner who possesses ~'prescribed qualifications and is entered in the list which the ciilmissioner shah maintain in that behalf and who is not disqualified by or ~~r sub-section (2) (2) ~e commissioner may by order in writing and for reasons to be""ricorded therein disqualify fer such period as is stated in the o'rder ~m attending before any such authority any legal practi-5 tioner, chartered accountant or sales-tax practitioner- to, ,/',  \ - \ " - ~ l - ~';'(i) who has been removed or dismissed, froni government ~  service; or  (ii) who being a legal practitioner or chartered accountant i$;foldldguilty of misconduct in conneetioi'i with any p~oceed-~o ings~nder this act by, an authority empowered to take disciplinapt"'iactipn against the members of the profession to which he belcl!lgs;  o~ ~      1itf:~                                                                  -                                                                           :'~"'~ll"'-!                                                                                                            \ _~ii) __ ~ho being a sales-tax practitioner is found guilty of su~}fmisconduct by tlutcommissioner                                                              is          ~ (3)lrooraer of disqualification shall be m'ade in:tesp~tt ~f any'  part~cular:"'person unless he is given a reasonable opportunity                                                                           of being h~r~" ') _,                                       ;,                                                                         ')     (4)ait,y- person against whom any order of disqualification is made un"-this section may within ~ne month of the'date of com- 20 p}unicatipnof ,such order appeal to the administrator to'· have the i ord~\~~l1ed-,,';, n--''!'''! ·w                                  ·  "ii; ,d·',,'i ))/-, ,:irl; ' ,i~di, one (!io~r~:'-:a~~:gi,~~~tif~;~li:t~~~ri:~~~~?i~~~~~e~~e~~ until th~,~peal is decided,                                                          ,-,'if                                                                1;'                                                                       25 (6) tb~ commissioner may at any time suo' moto or on an appli"~ade to him in this ophalf                          revoke any order made          against~4persoh under sub-section (2) and thereuptln such person          shall ce~-'to be disqualified~                !iib -change            53, whenever in respect of any proceedings under this act the 30 of ad be          commissionefor any person appaintcd under sub-sectipn (2)                                                                    of meum nt                 , ,                                           ,                                              " 'd' t'                                                          d '                                                                    d of an         section 9 liu"'assist him, ceases to exerc'se juns ic ion an                                                            is suc,cee - , office          ed by ano~r who has and cxerc;ses jurisdiction, the person                                                                    so          su~,                        lcgntinue the proceeding fmm the stage at which          th(' proce~g was le~t by his predecessor:;                                                                      35                   i ~            provwed '$at the dealer concerned may demand that before the          proceeding -is so coritinued, the previmis  proceedin'g or any part" ,          thereof be-ie-opened or that before any orda" of assessment is passed          against him~ he ·be re-heard '                  ",- -, 54, (1) an appellate authority rna: admit an appeal'undefi sf!c-tion 3{) after the period of limit:1ti()11 hid down in that section, if ttll' :lplwllant ,c;ati;lips till' ~ippl'!!;'lc ;,·;~rl:'rjt\ that he had~'sijfficient cause fur not preferring th<· ap)1t'al within such period, extension of period ,)llllllitat ion in certain cases, 5 (2) in computing the periud laid down under sections 36, 38, 39 and 40 the provisions r:f se('t,ow; ,i ;;r:r1 l) ()f the limitation act, i 06:{, shall, so far as mil~' !l(', ;ipph 5;), (1) all particulars contained in any statement made, return furnished or accounts or docullh'nts produced in accordance: with returns ute" tobe rnnfidcntial 10 this act, or in any ,record of {'vidence given in the cour-!e!"'of any proceedings under this act other than proceedings before a'criminal court, shall, sa've as provic\c,d in :,ub-section (3), be treau¥l as nmfldential, and notwithstanding ;lilything cuntained in the,lnfjiian evidence act, 1872, no court shall, save as aforesaid, beentitl'ed ~? t) require any servant of the government to produce before it any suctr:-statement, return, account, document or record or any part thereof, or to give evidence before it in respect thereof ;"  ' ,,"  :i, (2) 'if,' save" as provided in sub-sedion (3), any servant of the government discloses anylof the particulars,'referred"to in ,(~b; 20 section (1), he shall be punishable with imprisonment which m~y extend to six months, and shall also be ; ,able to fine, (3) nothing in this section shull :ipply t() the disclusure:-(a) of any of the particulars referred to in sub-section (1) for the purpo~cs of a prosecution under the indian: pena1~ ~ or the prevention of corruption act, 1947 or this aet; or,;:: ',: 'ii; , " :; i 'j t' ~ ,', , ' ! - , - :' ,~ r\~ "-"', ' ~ f ",' • ,: ' i , ",' (o>,'oh, suc,h,'facts ~o ai),'officer of the centrargo~~rnm~nt ,~t anx-~tate, goyern;nent, ,as' m,ay be nec~ssary, foj;,~~~)~catio~'~i sucnfa't:~s 'offor' thel ijur~oses of cn:lt>1ing' thae cove~~tl'tol ,jev:{ d~~r~a1i~~' a~ytax iinposed by it; or'-;~"" ",  hll,<~ , ,', ! 30 (c) of any such particu lars where such disclosure is ''oct'llsinned by the l;\wful emplc;,mcnt under this act of any pl'ocess for the service of any notice ilr the recovery of any demand; or' 35 (d) of an~' such particubrs iii a civil cdurt in any suit or' proceeding to which the government or any sales tax authority is a part:' :md which rl'latrs to any matter arising out of any proc('(>dlllg undf'f this act or under ally other law for the time being in force authorizing any sales tax authority to t"xercise any powers thereunder; or " r!,,,~ /i (e) of any such particulars by any public servant where" the disclusure is occas;-;iolwd h:' the lawful exercise by him of his :! (if 1899 :'~)i \  ~/' • rers under the indian stamp ad, 1899, to impound an in" " c ntly stamped document; or - -"r " ':;': (i), qf any such particulars to the reserve bank of india ""':are required by that bank to enable it to compile financial ",ijatistics of international investment and balance of payment; 5 -~h:(" · ft~:  - "  (g ) of any such ~articulars to any officer appointed by the ' w!>jlel' and auditor-general of india for purpose of audit -~ ,'tax receipts or refunds; or , f, ~gainst a legal practitioner or charterel;! accountant, to the ";:'~~-  (h) of ally such particulars relevant to any inquiry into a 10 if ~t "lisconduc! in connection with income-tax proceed-~~  ,-'; }it:ye~ipow:ered to take di~eiplinary action against members · ~;_ th~ profession to which h~'helongs; or '~b~l~, (ij-,oisucb particulars to the officers of the central gov- js - -: ernment or any state government for sucj:t other purposes, as t, •• }iil'tt;e administrator may by general or special order direct setting ,_~i (j) the administrator may, by notification in the official ~~ec~-~ite, set up check-posts or barriers, or both, at any place in delhi posts and • a view to preventing evasion of tax and other dues payable 20 barriers wider this act ~'-,-a:; (~} ,the owner or person in charge of a goods vehicle shall carry iiil' him, a goods _vehicle record, a trip sheet or a log book as the may' be,: and a bill of sale or a delivery note containing such idf1q11!in;""," -¥1jl~,pe,p~es,crilbed ip respect of the,go04s carried in 25 l{~~iae; and produce ,the same before ~ny officer in~~arge fc~~,:y~~cle entering of leaving delhi shall alsofue a d~lara­administrator in this behalf the owner or person incharge a goods vehicle entering or leaving delhi shall also file a declara- i) etoiltaining' such particulars in such form and in such manner 30 '~r be' prescribed,! before the officer incharge of a check-pos~ or barrier or before the other officer empowered as aforesaid -ti(1) at every chec;k-post or barrier, or at any other place when - f,equired by an officer empowered by the administrator in this ~alf the· driver or any other person incharge of a goods vehicle 35 '·  ~ull ! stop- the ~rhicle and keep it stationary as long as may be re-~ by the officer incharge of the check-post or barrier or the i !ac~r empc?wered as aforesaid, to examine the contents in the t' ;~~~c:l~~ct!,l1 records relating to the goods carried, which j,,;,,:iii1d'the possession 6f such driver or other person incharge, who 40  " tj   ,1 shall, if so required; give bis name and address and the narne and :1ddress" of the owner of the vehicle as well as those of thl' consignor and consignee of the goods (4) the officer incharge of a check-post or barrier or the officer 5 empowered under sub-section (3) shall have power to seize and confiscate any goods which are under transport by a goods vehicle and which are not covered by a goods vehicle record, a trip sheet or a log book, as the case may be, and a bill of sale or a delivery note and, when the1goods' vehicle enters or leaves delhi, the deciara-10 tion referred to in sub--section (2) also (5) where the declaration made under sub-section (2) is false in respect of the materials furnished therein, the officer incharge of the check-post or barrier or any other officer empowered in this behalf shall have the power to seize and confiscate the goods ·in 15 respect of which the declaration is false: provided that before' taking action for confiscation of goods under this section the officer shall give the person affected an opportunity or' being heard and make an inquiry in the manner prescril>ed   20 (6) whenever confiscation is authorised by this section the officer adjudging it shall give the owner or person incharge of the goods an option to pay in lieu of confiscation-(a) in cases where the goods are such as are specified in the third schedule, one thousand rupees or one-half of the estimated value of goods, whichever is less; and  (b) 'in'other'c~se~, without prejudice to recovery of the ~payable, a s~~ of money equal to ten' per' cent of the estimated' value of the goods 57 the commissioner shall, from time to time, publish in the list of : 30 official gazette such particulars as may 'be prescribed of any dealt:r registered ~ who after the commencement of this act is registered or whose cer- dealers ~; tificate of registration is amended or cancelled, as soon as may be, igi; after such registration, amendment or cancellation , 58 (1) if the administrator is of opinion thatit'1!i'necessary or exemp ~ 3,5 ~edient in the public interest so to do, he may with th~ previous tions 1::, ~- 8l»proval of the central government, exep:1p~ by,~tion in the a;: oftlcial gazette and subject to such condi~ods, if~i as he may ~ impose, any -specified class of sales by an~ sp:cift~class o~ dealers ~: from payment of the whole or any part of tfie' tax payable under ~"! ~hia act  (2) if in respect of any sales which are exempt from payment of tax under sub-section (1), a breach of any of the conditions subject to which such exemption was granted is committed, the dt>uler responsible for such breach shall be liable to pay tax in resp~ct of all such sales as if no such exemption had been granted 5 | bar      | of    ||----------|-------|| suits    | in    || civil    |       || [·ourts |       || "        |       |59 no suit shall be brought in any civil court to set aside or modify any assessment made or any order passed under this act or the rules made thereunder, and no prosecution, suit or other proceeding shall lie against the government or any omcer of the gov, emment for anything' in good faith done or intended to be done 10 under this act or the rules made thereunder | power    ||----------|| make     || rules   |60 (1) the administrator may, subject to the condition of previous publication,make rules for carrying out the purposes of this act (2) in particular and without prejudice to the generality of the 15 foregoing powers, such rules may provide for- (a) the further period after the date of expiry qt, thr~e consecutive years 'referred to' in sub-secti'ort (t) of secil~n ' 3 for which liability to pay tax of a dealer shall continue; (b) the particulars to be contained in a declaration under 20 sub-clause (iv) of clause (a) of sub-section (2) of section 4, the form of such declaration, the authority from whom suc·h forms shall be obtainable and the manner in which such declaration is to be furnished; (c) the period! of turnover, the manner in which the turn- 25 over in relation to sale of any goods under the act shall be determined, and the sales turnover in respect of which m~y be deducted under sub-clause (vi) of clause (a) of sub-section (2) of section 4; (d) the restrictions and conditions subject to which the 30 commissioner may del~gate his powers under section 10; (e) the authority to whom applications for re,gistration under sections 13, 14, 15 and 16 may be made and the form of such applications and th~ fees payable in respect thereof; (f) the procedure for and other matters incidental to reo- 35 gistration of dealers and the granting of certificates of registrn  tion, and the forms of such certificates; (g) the intervals at which, and the manner in which, the tax under this act shall be payable under section 20; (h) the returns to be furnished under sub-section (2) of section 20 and dates by which and the authority to whom, such returns shall be furnished; (i) the procedure to be followed for assessment under sec-5 tion 22; (j) the circumstances in which and the conditions subject to which a dealer may be permitted to pay a lump sum by way of composition ~nder section 26 and the manner of determining such sum; (0 (k) the form in which claims for refund or set-off may be preferred, the manner in which such claims for refund shall bo verified, and the refunds or set-off under the act shall be allowed; - 15 (l) the authority to whom information shall be furnished under section 33;  ' (m) the conditions under which the production of accounts or documents or the furnishing of information may be required under sub-section (1) of section 34; 20 (n) the form and manner in which, and the authority to whom, appeals against assessment may be filed under section 36, the fee payable in respect thereof and the procedure to he followed by such authority; (0) theform and manner in which applications for revision under section 40 may be filed and the feepayab~ein" respect thereof;  (p) the conditions 'subject to which the commissioner 'may authorize the persons appointed under s·jb-section (2) of sef'tlon 9 to assist him to investigate offences under sub-section (1) of section 45; 30 (q) the conditions under which offences may be compounded under section 46; j, 35,  (r) the manner in which, and the time within which, applications shall be made (including fees payable in respect thereof), information furnished, securities given and notices served, under this act; (s) hny other matter which has to be or may be prescribed ~r l:: f;) (3) any rules made under this act may provide that a contraven-'>, tjon thereof shall be punishable with fine which may extpnd to five ~i:lhundied rupees, and in the case of a continuing contravention, with i  , an additional fine which may extend to twenty-five rupees for every day during which such contravention continues after conviction for the first such contravention tilties and certain notific'ations to be laid before parliament 61 every rule made under this act and every notification issued l1nder clause (b) or clause (c) of sub-section (1) of section 4, the flrst proviso to sub,se~tion(l) of that section and sub-section (2) s of section 7 sh<tll be laid, as soon as may be after it is made or iss'led, before each hous~ of, parliament while it is in session for ~ total period of thirty dqys which may be comprised in one session ol' in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, both hou~es 10 agree in makiingany modification in the rule or notification or both houses agree that the rule should not be made or the notification should not be issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be il without prejl,ldice to the validity of anything previously done under -that rule or notification  ' "', 62 (1) the bengal finance (sales tax) act 1941, as in force in delhi (hereinafter referred to as the said act) is hereby repealf'd: repeal and savings provided that such repeal shall not affect the previous operation 20 of the said act or any right title, obligation or liability already acquired,  ,accrued or incurred thereunder and subject thereto, anything done or any action taken including any appointment, notjfication, notice, order, rule, form or certificate in the exercise of any power"conierred'by,o, ,under the said act shall·be deemed to have 2s been done or taken in the exercise of the powers conferred by or under this act, as if this act were in force on the date on which such thing was done or action was taken, and all arrears of tax and other amounts due at the commencement of this act may be reccvered as if they had accrued under this act 30 (2) notwithstanding anything contained in sub-section (1) a!ly application appeal, revision or other proceeding made or preferred to any offter or authority under the said act and pending at the commencement of this act, shall, after such commencement, be transferred to and disposed of by the omcer or authority who would 35 have had jurisdiction to entertain such application, appeal, revi-don or other proceeding under this act if it had been in force on the date on which any application, appeal, revision or other proceeding was made or preferred: provided that for the purpose of disposing any such revlslon pending at the commencement of this act, the period of limitation f'1r a second appeal referred to in sub-section (3) of section 36 of this act shlll be reckc ned from the date of such commencement 5 63 (1) if any difficulty arises in giving effect to th~ pl'ovisicns removal or tilis act, the central government may by order publish~d in the of ctiffi-official gazette, make such provision or give such direction as tlp- culties pears to it to be necessary for removing the difficulty (2) an order under s~b-sect;on (1) may be made so as to have 10 retra<;pectlve effect from a date not earlier than the date of the commencement of this act 1 motor vehicles, including chas~is of motor veh;cles, motol tyres and tubes, accessories and spare parts of motor vehicles 2 motor cycles and cyle combinations, motor scooters, motorettes and tyres and tubes, accessories and spare parts of motor cycles, qlotor scooters and motorettes 3, refrigerators and air-conditioning plants and component parts thereof 4 wireless reception instruments and apparatus, radios and radio gramophones, electrical v:llves, 3ccl!mulators, amplifiers and loud-speakers and spare p3rts and accessories thereof 5 cinematographic equipment including  cameras, projectors and sound recordin~ and reproducing equipment, lenses, films and parts and accessories required for use therewith 6 photographic <lnd other cameras :-tnd enlargers, lenses, films and plates, pap(>r and cloth and other parts and accessories required for use therewith and photographs 7 all clocks time-pieces and watches and parts thereof 8 iron and steel safes and almirahs 9 all arms including rifles, revolvers, pistols and ammunition for the same 10 cigarette cases and lighters 11 dictaphone and other similar apparatus for recording sound and spare parts thereof 12 sound transmitting equipment including telephones and loudspeakers and spare parts thereof 13 typewriters, tabulating machines, calculating machines and duplicating machines and parts thereof 14 binoculars, telescopes and opera glasses 15 gramophones and component parts thereof and records 16 motor spirit, aviation spirit and high speed diesel oil 17 ~cosmetics, but not including kum-kum and soap '18 electrical goods, other than electrical plant, equipment and their accessories including service meters required for generation, transmission and distribution ]~ pile carpets 20 table cutlery 21 sanitary goods and fittings 22 leather goods except footwear 23 glassware, glazes ware and chinaware, including crockery 24 furniture, including iron and steel furniture 25 vacuum flasks 26 liquor (foreign liquor and indian-made foreign liquor)  the second schedule [see section 4(1) (b)]1 coal including coke in all its forms 2 cotton as defined in section 14 of the central sales- tax act, 1956 (74 of 1956)  3 iron and steel as defined in section 14 of the central sales tax act, 1956 (74 of 1956) 4 jute as ~efined in section 14 of the central sales tax act, 1956 (74 of 1956) 5 oilseeds as defined in section 14 of the central sales tax act, 1956 (74 of 1956) 6 hides and skins, whether in a raw or dressed state 7 cotton yarn, but not including cotton thread and cotton yam waste  the third schedule (see section 7) exempted goods1 all cereals and pulses including all forms of rice (except when sold in sealed containers) this shall not include rice in cooked form 2 flour including atta, maida, suji and bran (except when sold in sealed containers) 3 bread 4 raw meat, ie, meat which has aot been cured or frozen or cooked 5 fresh fish 6 fresh eggs 7 livestock including poultry \ 8 vegetables, green or dried and vegetable seeds (except when sold in s'ealed containers) 9 fresh fruits 10 sugar excluding sugar products 11 salt 12 fresh milk, whole or separated including ·boiled and sugared milk, and milk products 13 edible oil produced in indigenous kohlu or ghani (without employing electricity or any other power at any stage) when sold by the person owning such indigenous kohlu or ghani and dealing exclusively in the production of such indigenous kohlu and ghani 14 daki, lassi, butter and khoa 15 all varieties of cotton, wooaen, nylon, rayon, pure silk or artificial silk fabrics, but excluding durries, druggets and carpets 16 cotton thread 17 hand-made paper 18 school exercise and drawing books 19 books and periodicals meant for reading, maps and educational charts 20 fuel wood and charcoal used as fuel 21 implements used solely by farmers for tilling, sowing, reaping and processing the crops 22 cattle feeds including fodder 23 electric energy 24 fertilizers 25 water but not aerated water or m:neral water or water sold in bottles or sealed containers 26 tobacco as defined under the central excises and salt act, 1944 (1 of 1944) shoes 27 (i) country-made (juties)  when manufactured-(i) without the use of power, and bamboo \ (ii) cane and handicrafts made (iii) earthenwares by kumhars (ii) at a place other than a factory as defined in the factories act, 1948 (63 of 1948) and sold either by the maker himself or by any member of his family or by a cooperative society consisting wrolly of the makers of such articles 28 achat and mu1"taba except when sold in sl:aled containers 29 charkha, takli and charkha accessories 30 slate, slate pencils, takhties, black ink used for takhties, writing chalks, crayons, footrules of the type used in >chools, kalams (pens used for takhties)   31 betel leaves 32 batdana including hessian cloth, iron strips and wooden and tin packing, the sale of which is incidental to dealings in any of the· other goods mentioned in this schedule 33 cotton padding 34 pesticides 35 plant protection machines 36 ready-made garments made out of khadi cloth 37 blood for transfusion that is to say fresh human blood or plasma, liquid or dried the bengall'inance (sales tax) act, 1941, was extended to the union territory of delhi in 19m experience of the working of the act has revealed certain lacunae in the law which has resulted in evasion of sales tax in order to ensure proper realisation of sales tax, it is necessary to plug loopholes in the law and tighten lip the administrative machinery responsible for the collection of tax 2 as a result of the revised ceiling fixed by section 51 of tho:-finan:e act, 1966 in respect of declared goods included in the seconu schedule, it is proposed to provide a maximum rate of three per cent jn re;;pect of !:uch g!>ods within which the effective rate of tax will be fixed by issue of notification by the centr:ul government 3 it is also considered that there should not be much divergence in the rates of sales tax as in force in delhi and the neighbouring states of uttar pradesh, punjab and r3jasthan with that object in view, it is proposed to provide for the maximum rate of seven per cent of general sales tax (as against the existing rate of five per cent) within which the central government may, by notification, fix the effective rate of sales tax 4 the following are some of the other impurtallt changes that :ire proposed to be introduced:-(i) liability to pay tax of a dealer shall start from the date immediately following the day on which the turnover of his sales exceeds the taxable quantum at present, smch liability starts only two months after the dealer's turnover exceeds the taxable quantum (ii) it is proposed to set· up an appellate tribunal consisting of one or more merobers to hear appeals against original orders passed by the commissioner of sales tax a second appeal against orders passed by the assessing authorities will also lie to the tribunal (iii) the period of limitation -for re-assessment of tax on escaped or under-assessed turnover is proposed to be extended from three years to eight years in the case of dealers concealing their turnover or claiming wrong deductions and to four years in other cases - (iv) adequate provision is being made for recovery of tax due from a dealer, from any person who holds or may subsequently hold money for or on account of such dealer similarly, provisions are sought to be made for assessment and recovery of tax ~ the case of a transfer of a business, dissolution of a firm or hindu undivided family and liquidation of n com· pany (v) provision about search and seizure is also being made in the bill more qr less on the' jin~s of the companies act 1 fj56 this power to make a search or seizure will be exercised only under the orders of a magistrate 5 the bill is intended to giv,· effect to these proposais the provisions of the bill are further explained in the notes on clauses new delhi; sachindra chaudhuri the 26th july, 1966 president's recommendation under article f17· of the constittrrion of india  [copy of letter no f6(9)-st/64, dated the 20th july; 1966 from shri sachindra chaudhuri, minister 01 finance t() the secr~tary, lok sabha] the president having been apprised of the subject matter of the bill recommends under clauses (1) and (3) of article 117 0'£ the constitution, the introduction and consideration of the delhi· sales tax bul, 1966 in the lok sabha  '  clause 2-definitions-sub-clause (e) defines 'business' so a's to include any trade, commerce or manufacture or any adventure whether or not carried on with a motive to earn profit and irrespective of the fact whether such profit accrues or not in such trade, commerce, etc sub-clause (e) -the definition of dealer would include government (both central and state), a society, club or any association which sells or supplies goods to its members, a manager, factor, broker or any agent and an auctioneer who sells or auctions goods belonging to any principal su'b-dause (1) -the definition of 'sale' makes it clear that the supply of goods by a society (including a co-operative society), club, firm or any association to its members would be deemed as a sale whether or not such supply of goods is in the course of bust· ness sub-clause (0) -the definition of 'turnover' has been recast to make it clear that the amount of sale price re'funded by the deale\" to a purchaser in respect of any goods returned by the purchaser within the prescribed period would be deductible clause 3-under sub-clause (1), all dealers who during the yeltr immediately before the commencement of the proposed enactment were liable to pay tax will continj,1e to be so liable for payment of tax under the bill the liability of any other dealer to pay tax under sub-clauses (2), (4) and (5) will start from the date immediately following the day on which his turnover exceeds the taxable quantum defined in sub-clause (7) instead of after the expiry of ~ period of two months from that day as provided under the existing law in so far as dealers who import for sale any goods into delhi, there is no limit of taxable quantum and all such dealers would be liable to pay tax in so far as other dealers are concerned, there is no change in the limit of taxable quantum clause 4 provides the rates of tax under sub-clauses (1) (b) and (1) (c) the rates of tax on goods specified in the second schedule and the general rate of tax will be regulated by issue of notifications, from time to time, subject to the ceiling of three paise and seven paise in a rupee respectively there is no change in the rates pf tax on goods included in the first schedule sub-cl4use (2) (a) (iv) (a) seeks to restrict, among others, sales nf goods required by a manufacturer for use by him in the manufacture of goods only in delhi which will be deductible for the purpose of computing his taxable turnover sub-clalfse (2) (b) :provides that tax collected by a dealer from his customers and shown separately in cash memo or bills would be deducted ·for the purpose of computing the taxable turnover of it dealer~ clause 5 empowers the administrator to prescribe tile point in the series of sales ·by successive dealers where tax would be levied this is an existing provision clause 6 corresponds to section 5b of the present act clause 7 provides that no tax will be levied on goods specified in the third schedule subject to conditions and exceptions laid down therein the central government will have power to add to or omit from or otherwise amend the third schedule thts corrf'sponds to section 6 of the present act clause 8 repeats the provision in section 27 of the present act clauses 9 and lo-these clauses provide for appointment of commissioner and other officers for administering the law the commissioner shall have jurisdiction over whole of delhi and other officers will have ju,risdiclion over such areas as the administrator may specify the commissioner can also delegate any of his powers other~han the one relating to cognizance of offences by courts, to  any ~rsoti appointed tri 'assist him rl~ 'czause; il"i~'~ new'provision which is intended t6 enable the f"comriusstcm-er 'to tra~fetby 1m order in writing any '-proeeedings from any person appointed to assist him to any other person so appointed or to withdraw the same on his file clause 12-this new provision is intended to give effect to the proposal to set up an appellate tribunal consisting of one or more members which will hear appeals from orders passed by the commissioner a second appeal will also lie to the appellate tribunal 'f!'om orders passed in appeal by the authority precribed under ii%~ 36 (1) j ; ~->'  ,-tthe appellate tribunal has been empowered to make regulations with the previous sanction of the central government, to re-~te the procedure and disp~1 of its business, clauses 13, 14, 15 and 16 provide for registration of dealers provision has 'been made for provisional registration of persons who intend to establish business in delhi for manufacture of good~ of a value exceeding bs 10,000 in a year and for special registration of dealers whose registration certificate is cancelled by the commissioner and whose turnover subsequent to the cancellat40n of such certificate exceeds the taxable quantum these clauses correspond to the provisions contained in sections 7, 8, 8b and 8c of the present act \ c14use 17 corresponds to the existing provision in section sa of the present act which enables the commissioner to demand security before grant of :registration certificate to a dealer where he considers it necessary for the ,proper realisation of the tax clauses 18 and 19 provide for circumstances where the cel'tificate of registration of a dealer may be amended or cancelled by the commissioner clause 2o-it provides for periodical filing of returns after due verification ,by dealers and for payment of tax on the basis of such returns into a government treasury or the reserve bank of india or in any other manner that may be prescribed sub-clauses (1) to (4) follow the existing provisions in section 10 of the present act while sub-clause (5) follows the corresponding provisions in section 140 of the income-tax act, 1961 cl4use 21--sub-c14use (1) pennits realisation of tax by registe:red dealers from their customers sub-clause (3) provides that any amount collected by way of tax in contrsvmtion of this act shall be deposited with the government treasury or the reserve bank of india and the amount so deposited shall be refundable only to the person from whom it was collected' ! i clause 22 deals with the assessment of tax in sub-clause (7) it has been provided that in respect of cases where a dealer liable to pay tax has failed to apply for registration, the assessment can be made up to a period of 8 years (as against 6 years under the present act) from the end of the year in respect of which assessment has to be made clguae 23 follows the corresponding provision in section 147 of the income-tax act, 1961 and would permit re-assessment of tax in respect of turnover which has escaped the tax within a period of 8 years where a dealer has concealed his turnover or claimed wrong deductions and within 4 years in other cases clause 24-sub-czause (1) provides that tax assessed less any amount paid with the return will be payable within 30 days from the date of service of the notice of demand sub-clause (2) authorises the commissioner to extend the time for payment or allo:w payment by instalments or to grant stay sub-clause (7) provides that if a dealer is in default, the amount shall be recoverable as an arrear of land revenue and in case where the dealer has furnished security, the commissioner may forfeit whole or any part of the security for realisation of the tax or penalty due clause 25-this clause provides for recovery of tax and penalty due from a dealer from any person who holds or may su:bsequently hold money for ar on account of such dealer to compound the tax su~section (ia) of clause 26 authorises the commissioner payable by a dealer this corresponds to section 5 of the present act clause" 27-sub-clauses (1) to (3) provide for refund of tax paid in excess by a dealer if claim for such refund is made within 12 months i sub-clause (4) provides for suo moto refund by the commissioner where such refund arises as a result of an order in appeal sub-clause (7) permits refund of tax levied on declared goods, if such goods are subsequently sold in inter-state trade ~':'~ t   \  ~" clause 28-this clause provides that if there is an avoidable ~delay m the grant of certificate of registration to a dealer, the amount fot tax, if any, paid on sales of goods to such dealer shall be set-off if a claim for adjustment is made within three months from the date on which certificate of registration is granted   t; clause 29-where the ownership of a business is transferred, it is sought to be provided that the transferor and transferee shall be joinuy and severally liable to pay tax remaining unpaid at the time of the transfer and the transferee shall be liable to pay tax thereafter  iili, clauses 30 and 31-on the lines of income-tax act, 1901, these ~auaes provide for recovery of tax from the liquidator in the case  company in liquidation, from the partners of a firm, members of a hindu undivided family or association jointly or severally in i event of discontinuance of business by such firm, family or association and from the legal representative in tbe case of the death of the dealer clauses 32 and 33 provide for maintenance of accounts by a dealer and for furnishing of information to the commissioner regarding any change in his business within the prescribed time these correspond to the existing provisions in sections 13 and 16 respectively of the 'present act clouse 34-sub-clauses (1) and (2) provide for production and inspection of account 'books, registers and documents relating to a bwunem i sub-clauses (3) to (6) empower the commissioner or any person appointed to assist him to seize under an order of the magistrate of first class any account ,books, registers or documents of a dealer or to check the sale proceeds of a dealer where the commissioner or the person appointed to assist hun has, upon information in his possession or otherwise, reasonable ground to ,believe that such account books, etc, may be destroyed, mutilated,' altered, falsifted or secreted with a view to evade payment of tax for this purpose the commissioner may, under the orders of the magistrate aforesaid, enter and search any place of business or warehouse, etc, where such account books, registers, etc, are kept and break open the lock of any door, box, etc, if the keys thereof are not available provision has also 'been made that such searches and seizures will be made in accordance with the provisions of the code of criminal procedure sub-cklluse (7) -the cmmnis9oner may require any 'banktlg company, transport company or any person who maintains any account books of a dealer to furnish any information relating to such dealer or permit inspection of goods or account books, etc, in their possession clause 35 follows the existing provision in section 21a of the present act sub-clause (1) authorises the commissioner to take evidence on oath and to enforce the attendance of any person in connection with any proceeding under the act sub-clause (2) authorises impounding any account books or other documents by any assessing authority for a period of 30 days and with the approval of the commissioner for ady period exceeding 30 days-/ f clatue 36-su'b-clauses (1) to (4) provide for appeal from every original order passed under the bill to the prescribed authority except in the case of an order by commissioner where the appeal shall lie to the appellate tribunal against an order passed 1» appeal by the prescribed authority, a second appeal will lie to the appellate tribunali ! sub-cla'u$e (5) -except where permitted by the appellate authority, no appeal w~ll be entertained unless it is accompanied by a satisfactory proof of the payment of the tax or penalty in respect of which appeal is filed clau8e 37 specifies orders against which no appeal or application for revision will lie \ clau8e 38 provides for statement of case on any qu~stion of law arising out of an order passed by the appellate tribunal to the high court clause 39 authorises the commissioner to revise within a period of 2 years any order passed by an authority subordinate to him if such order is prejudicial to the interest of revenue clause 40-this clause further confers the commissioner th~ ijvwer to revise an order other than the one referred to in clause 37 or to tvhich clause 39 applies, passed by any officer subordinate to him, on an application by the dealer or by the commissioner on his own motion this power can, however, be invoked only where the dealer has waived his right of appeal clause 41-this new provision is intended to enable the commissioner, the appellate tribunal and the appellate authority under clause 36 to rectify any mistakes within a period of 2 years from the date of the order if such mistakes are apparent from the record of the case  this' provision follows section 154 of the income-tax act, 1961 clause 42:-failure to surrender certificate of registration on the cancellation of such certiftcate, the holding, producing or acceptance of declarations under the first proviso to clause 4(2) (a) (iv) which a dealer knows or has reason to believe to be false and aiding or abeting the commission of ~y offence under the act are being included as additional offences under this clause clause 43-1n the event of an offence by a company the person responsible to the company for the conduct of the business (as also the company) shall be deemed to be guilty of the offence unless such person proves that the offence was committed without his knowledge or he has exercised due diligence clause 46 permits the composition of offences by the commi~ sioner this corresponds to the existing provision in section 23 of the present act clauses 47 to 49 permit the le:vy of penalty up to one and a half times the amount of tax involved in the case of (a) a dealer's failure to furnish return, or pay the tax due according to the return (b) concealment of sales or furnishing of inaccurate particulars of the dealer (c) (i) knowingly holding, producing or accepting a false declaration, or (ii) falsely representing that he is a registered dealer when he is not registered, or (iii) falsely representing that any goods are specified in the certificate of registration when such goods are not so specl fled collection of tax from customers in contravention of clause 21 can also ·be penalised to the extent of one and a half times the tax wrongly collected clauses 50 and 51 lay down the procedure 'for service of notice where a hindu undivided family is disrupted or a firm or an association of persons is dissolved or where business is discontinued clause 52-sub-clause (1) lays down the procedure according to which a dealer can be represented at a proceeding under this act sub-clauses (2) to (6) deal with the manner in which the commissioner may disqualify any person from attending befere any authority as also the manner in which such disqualification may be removed clause 53 provides for the continuation of any proceeding under the act in the event of change of the incumbency of the authority before whom the proceedings are carried on  clause 55 provides that returns, accounts, docwnen~, statements, etc, furnished in the course of any proceedings under the act would be trepted as confidential and would not be disclosed except for purposes laid down in sub-section (3) clause 56-this clause follows the existing provision in section 23a of the present act for the purpose of setting check posts and barriers at any place in delhi to prevent evasion of tax srlb-clause (3) requires the driver or any person incharge of the vehicle to allow inspection ot records relating to goods carried by the vehicle sub-clause (4) authorises the officer-in-charge of the check post or barrier to seize and confiscate goods if they are not covered by the goods vehicle record trip sheet or log book sub-clause (6) gives an option to the owner or person incharge of the goods to pay sum specified in this sub-clause in lieu of confiscation clause 57 requires the commissioner to publish particulars re-jating to registered dealers this corresponds to the existing provision in section 9 of the present act clause 58 authorises the administrator to exempt by notification any specified class of sales by any specified class of dealers such exemption will be notified by the administrator with the previous approval of the central government clause 59-this clause provides a bar of suits in a civil court f;)r the purpose of setting aside or modifying any assessment made or order passed under tj:ae bill it also indemnifies the government or any officer of the government for anything done or intended to be done in good faith it corresponds to the existing provisjons contained in sections 19 and 24 of the present act clause 60 empowers the administrator to make rules for carrying out the purposes of the act  clause 61 provides for the laying of rules made by the administrator under clause 60 and of notifications issued under clauses 4 (1) (b) and (c), first proviso to clause 4(1) and clause 7(2) before each house of parliament with power for both houses to rescind or modify any such rule or notification clause 62 is consequential in view of the replacement of the bengal finance (sales tax) act, 1941, as -in force in delhi, by the present bill clause 63 gives powers to the central government to make provisions 0'/ give directions if any diftlculty aris~ in giving eff~ct to the provisions of the bill  - though the proposed legislation wholly replaces the existing sales tax law applicable in delhi it maintains the basic structure and the scheme of the existing act the onl~' important change which has any fmancial bearing and which is proposed to be made through this bill, is the setting up of an appellate tribunal this would involve, besides appointment of the members of the tribunal, setting up of an office with a registrar and some staff on a rough estimate, the total recurring expendit~re on this account is not likely to exceed rupees ]  20 lakhs per annum, besides a non-recurring expenditure of about rupees lo;ooo'-on the' setting up of the tribunal's office this whl be in addition to the present expenditure (recurring) of rupees 1647,238 on the sales-tax organisation in delhi  (," clause 12 (6) of the bill empowers the appellate tribunal to make regulations, subject to the previous sanction of the central government, for the purpose of regulating its procedure and disposal of its business clause 60 of the bill specifies the various matters in respect of which the administrator has been empowered to make rules the aforesaid matters i are matters of procedure and administrative detail it is hardly practicable for these matters of detail or procedure to be provided in the bill itself the delegation of legislative power is of a normal character 2 sub clauses (b) and (c) of clause 4(1) of the bill empower the central government to determine the effective rate of tax on goodj specified in the second schedule and on goods not apeculed in any of the schedules within the ceiling of three paije and seven paise in a rupee respectively clause 7 (2) of the bill further empowers the central government to add to or omit from or otherwise amend the third schedule which enumerates the tax;free goods any article or goods omitted from the third schedule will become liable to general sales tax unless it is brought on to the first or the second schedule by the administrator with the previous approval of the central government by a notification under the proviso to clause 4 (1) it is intended that the rate of tax under clause 4(1) (b) and (c) will be fixed and any modification of or amendment in any of the schedules appended to the bjll made having regard to the requirements of trade in delhi and the practice obtaining in the adjoining states of uttar pradesh, punjab rod rajasthan it is not possible to visualise at thia stage what would be the rate applicable in the adfolnlrig states from time to time, or what would be the goods exempt from tax in those states having regard to the aforesaid circumstances, the powers delegated are of a normal character ' " -r":-, (s,," saehiwjra ciaawihuri, m  of j1intjna) 