The Kerala Value Added SALES Tax Act, 2003

 

(Act 30 of 2004*)

 

[Received the assent of the President on the

10th day of December, 2004]

An Act to consolidate and amend the law relating to the levy of tax on the sale or purchase of goods based on the concept of Value Added Tax in the State of Kerala.

Preamble.—Whereas it is expedient to consolidate and amend the law relating to the levy of tax on the sale or purchase of goods based on the concept of Value Added Tax in the State of Kerala.

Be it enacted in the Fifty-fourth Year of the Republic of India as follows :—

Chapter I

Preliminary

1.  Short title, extent and commencement.—(1) This Act may be called the Kerala Value Added Tax Act, 2003.

(2) It extends to the whole of the State of Kerala.

(3) It shall come into force on such date as the Government may, by notification in the Gazette, appoint.

2. Definitions.—In this Act, unless the context otherwise requires,—(i) “Agriculture” with all its grammatical variations and cognate expressions, includes floriculture, horticulture, the raising of crops, grass or garden produce, and also grazing ; but does not include dairy farming, poultry farming, stock breeding, the mere cutting of wood or grass, gathering of fruit, raising of man-made forest or rearing of seedlings or plants ;

(ii) “Agriculturist” means a person (not being a company or firm or society including a co-operative society or association of individuals whether incorporated or not, who cultivates land personally for the purpose of agriculture) ;

(iii) “Appellate Tribunal” means the Appellate Tribunal appointed under section 4 ;

(iv) “assessee” means any person by whom tax or any other sum of money is payable under this Act and includes every person in respect of whom any proceedings under this Act have been taken for the assessment of tax payable by him ;

(v) “assessing authority” means any person authorised by the Commissioner to perform the functions of an assessing authority under this Act ;

(vi) “Assistant Commissioner” means any person appointed to be an Assistant Commissioner of Commercial Taxes under sub-section (3) of section 3 ;

(vii) “awarder” means any person, executing any works contract through a contractor ;

(viii) “Books of accounts” include ledgers, day book, cash book, account books and other records whether kept in the written form or as print outs of data stored in a floppy, disc, tape or any other forms of electromagnetic data storage device ;

(ix) “business” includes,—

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

(b) any transaction in connection with, or incidental or ancillary to such trade, commerce, manufacture, adventure or concern ;

(x) “capital goods” means plant, machinery, equipments including pollution/quality control, lab and cold storage equipments, used in manufacture, processing, of taxable goods for sale excluding civil structures as may be prescribed ;

(xi) “casual trader” means a person who whether as principal, agent or in any other capacity, has occasional transactions involving buying, selling, supplying or distributing goods in the State, whether for cash or for deferred payment, or for commission, remuneration, or other valuable consideration ;

(xii) “Commissioner” means the Commissioner of Commercial Taxes appointed as such by the Government ;

(xiii) “Commercial Tax Officer” means any person appointed to be a Commercial Tax Officer under sub-section (3) of section 3 ;

(xiv) “contractor” means any person, Firm, Company, Corporation, Association, body of individuals, Co-operative Bank or Society, Trust or Authority who undertakes, any works contract for execution and includes a sub- contractor ;

(xv) “dealer” means any person who carries on the business of buying, selling, supplying or distributing goods, executing works contract, delivering any goods on hire-purchase or on any system of payment by instalments ; transferring the right to use any goods or supplying by way of or as part of any service, any goods directly or otherwise, whether for cash or for deferred payment, or for commission, remuneration or other valuable consideration not being an agriculturist and includes,—

(a) a casual trader ;

(b) a commission agent, a broker or a del credere agent or an auctioneer or any other mercantile agent, by whatever name called, of such dealer ;

(c) a non-resident dealer or an agent of a non-resident dealer, or a local branch of a firm or company or association or body of persons whether incorporated or not situated outside the State ;

(d) a person who, whether in the course of business or not, sells,—

(i) goods produced by him by manufacture or otherwise ; or

(ii) trees which grow spontaneously and which are agreed to be severed before sale or under the contract of sale ;

(e) a person who whether in the course of business or not,

(i) transfers any goods, including controlled goods whether in pursuance of a contract or not, for cash or for deferred payment or for other valuable consideration ;

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

Explanation I.—A society (including a co-operative society, club or firm or an association or body of persons, whether incorporated or not) which whether or not in the course of business, buys, sells, supplies or distributes goods from or to its members for cash or for deferred payment, or for commission, remuneration or other valuable consideration, shall be deemed to be a dealer for the purposes of this Act.

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

(f) a bank or a financing institution, which, whether in the course of its business or not sells any gold or other valuable article pledged with it to secure any loan, for the realisation of such loan amount.

Explanation I.—Bank for the purposes of this clause includes a Nationalised Bank or a Schedule Bank or a Co-operative Bank.

Explanation II.—Financing Institution means a financing institution other than a bank.

(xvi) “Deputy Commissioner” means any person appointed to be a Deputy Commissioner of Commercial Taxes under sub-section (3) of section 3 ;

(xvii) “Deputy Commissioner (Appeals)” means any person appointed to be a Deputy Commissioner (Appeals) under sub-section (3) of section 3 ;

(xviii) “Document” includes written or printed records of any sort, title deeds and electronic records as defined in Clause (t) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000) ;

(xix) “foreign liquor” means and includes wine, brandy, champagne, sherry, rum, gin, whisky, beer, cider, cocoa brandy and all other distilled or spirituous preparations other than arrack and medicines and drugs ;

(xx) “goods” means all kinds of movable property (other than newspapers, actionable claims, electricity, stocks and shares and securities) and includes live stock, all materials, commodities and articles and every kind of property (whether as goods or in some other form) involved in the execution of a works contract, and all growing crops, grass or things attached to, or forming part of the land which are agreed to be severed before sale or under the contract of sale ;

(xxi) “Government” means the Government of Kerala ;

(xxii) “Importer” means any person who obtains or brings any goods from any place outside the State or country whether as a result of purchase or otherwise for the purpose of business ;

(xxiii) “Input Tax” means the tax paid or payable under this Act by a registered dealer to another registered dealer on the purchase of goods in the course of business for resale or for the manufacture of taxable goods or for the execution of works contract or for use of it as containers or packing material of taxable goods within the State ;

(xxiv) “Joint Commissioner” means any person appointed to be a Joint Commissioner under sub-section (3) of section 3 ;

(xxv) “local authority” means a Panchayat constituted at any level under the Kerala Panchayat Raj Act, 1994 (13 of 1994), or a Town Panchayat, a Municipal Council, or a Municipal Corporation, constituted under the Kerala Municipality Act, 1994 (20 of 1994) or a Cantonment declared under the Cantonments Act, 1924 (Central Act 2 of 1924) ;

(xxvi) “manufacture” with its grammatical variations and cognate expressions means producing, making, extracting, altering, ornamenting, finishing, assembling or otherwise processing, treating or adapting any goods, and includes any process incidental or ancillary to such activities but does not include any process or mode of manufacture as may be prescribed ;

(xxvii) “motor spirit” means any substance which, by itself or in admixture with other substances is ordinarily used directly or indirectly to provide reasonably efficient fuel for automotive or stationary internal combustion engines and includes petrol, diesel oil and other internal combustion oils, but does not include kerosene, furnace oil, coal or charcoal ;

(xxviii) “Non-Resident dealer” means a dealer who effects sale or purchase of any goods in the State, but who has no fixed place of business or residence in the State ;

(xxix) “Notification” means a notification issued by the Government, under the provisions of this Act and published in the Gazette ;

(xxx) “Notified goods” means coffee, rubber, cardamom, dried ginger, pepper, arecanut, cashewnut, iron and steel and any other goods notified by Government ;

(xxxi) “Output Tax” means the tax charged or chargeable under this Act by a registered dealer for the sale of goods in the course of business and includes reverse tax levied under sub-section (8) of section 11 ;

(xxxii) “Permit” means a permit granted under section 19 or under section 46 ;

(xxxiii) “Person” includes,—

(a) an individual ;

(b) a joint family ;

(c) a company ;

(d) a firm ;

(e) an association of persons or a body of individuals ; whether incorporated or not ;

(f) the Central Government or the Government of Kerala or the Government of any other State or any department thereof or a Union Territory in India ;

(g) a local authority ;

(h) every artificial juridical person not falling under any of the preceding sub-clauses ;

(xxxiv) “petrol” means dangerous petroleum having its flashing point below 24.4 degree centigrade ;

(xxxv) “place of business” means any place where a dealer carries on the business and includes,—

(a) any warehouse, godown or other place where a dealer stores or processes his goods,

(b) any place where a dealer produces or manufactures goods,

(c) any place where a dealer keeps his books of accounts,

(d) in any case where a dealer carries on business through an agent (by whatever name called), the place of business of such agent,

(e) any warehouse, railway station, railway goods yard, parcel office, steamer station, or any other place where goods for transportation in the course of business or otherwise are kept by dealers, and

(f) any vehicle or vessel or any other carrier wherein the goods are stored or used for transporting the goods ;

(xxxvi) “prescribed” means prescribed by rules made under this Act ;

(xxxvii) “purchase” with all its grammatical variations and cognate expressions shall be construed from the word “sale” ;

(xxxviii) “purchase price” shall be construed from the words “sale price” ;

(xxxix) “Registered dealer” means a dealer registered under this Act ;

(xl) “Registering authority” means the officer designated, by notification in the Gazette, as registering authority ;

(xli) “return period” means and includes a calendar month or a quarter of an year or an year ;

(xlii) “reverse tax” means that portion of input tax of the goods for which credit has been availed but such goods remain unsold at the closure of business or are used subsequently for any purpose other than resale or manufacture of taxable goods or execution of works contract or use as containers or packing materials of taxable goods within the State ;

(xliii) “sale” with all its grammatical variations and cognate expressions means any transfer whether in pursuance of a contract or not of the property in goods by one person to another in the course of trade or business for cash or for deferred payment or for other valuable consideration, but does not include a mortgage, hypothecation, charge or pledge ;

Explanation I.—A transfer of property in goods by the Central Government or a State Government for cash or for deferred payment or other valuable consideration whether or not in the course of business shall be deemed to be a sale for the purposes of this Act.

Explanation II.—The transfer of property involved in the supply or distribution of goods by a society (including a co-operative society), club, firm or any association or body of persons, whether incorporated or not, to its members, for cash or for deferred payment or other valuable consideration, whether or not in the course of business, shall be deemed to be a sale for the purposes of this Act.

Explanation III.—A transfer of goods on hire-purchase or other instalment system of payment shall, notwithstanding the fact that the seller retains the title in the goods as security for payment of the price, be deemed to be a sale on the date of delivery of the goods in pursuance of the agreement of such hire purchase or other system of payment in instalments.

Explanation IV.—A transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract shall be deemed to be a sale.

Explanation V.—A transfer of right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration shall be deemed to be a sale.

Explanation VI.—Any supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other articles for human consumption or any drink (whether or not intoxicating), where such supply or service is for cash, deferred payment or other valuable consideration shall be deemed to be a sale.

Explanation VII.—Unless otherwise expressly provided in this Act, any transfer, delivery or supply of any goods referred to in this clause shall be deemed to be a sale of those goods by the person making the transfer, delivery or supply and purchase of those goods by the person to whom such transfer, delivery or supply is made.

Explanation VIII.—(a) The sale or purchase of goods shall be deemed, for the purposes of this Act, to have taken place in the State where the contract of sale or purchase might have been made, if the goods are within the State,—

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

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

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

(c) For the purpose of this Act, the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract shall be deemed to have taken place in the State, if the goods are within the State at the time of such transfer irrespective of the place where the agreement of works contract is made, whether the assent of the other party to the contract is prior or subsequent to such transfer ;

Explanation IX.—Notwithstanding anything to the contrary contained in this Act or any other law for the time being in force, two independent sales or purchases shall, for the purposes of this Act, be deemed to have taken place,—

(a) when the goods are transferred from a principal to his selling agent and from the selling agent to the purchaser ; or

(b) when the goods are transferred from the seller to a buying agent and from the buying agent to his principal, if the agent is found in either of the cases aforesaid,

(i) to have sold the goods at one rate and to have passed on the sale proceeds to his principal, at another rate ; or

(ii) to have purchased the goods at one rate and to have passed them on to his principal at another rate ; or

(iii) not to have accounted to his principal for the entire collections or deductions made by him in the sales or purchases effected by him on behalf of his principal ; or

(iv) to have acted for a fictitious or non-existent principal :

Provided that the deduction or addition, as the case may be, of the commission agreed upon and specified in the accounts and incidental charges incurred by the agent which are specified in the accounts and which the assessing authority considers legitimate shall not be deemed to be a difference in the rates referred to in sub-clauses (i) and (ii).

(xliv) “sale price” means the amount of valuable consideration received or receivable by a dealer for the sale of any goods less any sum allowed as cash discount, according to the practice normally prevailing in the trade, but inclusive of any sum charged for anything done by the dealer in respect of the goods or services at the time of or before delivery thereof, excise duty, special excise duty or any other duty or taxes except the tax imposed under this Act ;

(xlv) “Settlement Commission” means the Settlement Commission appointed under section 5 ;

(xlvi) “Smuggling” means transportation of notified goods exceeding such value as may be prescribed, into or out of the State, without the documents prescribed by sub-section (3) of section 49 or under cover of a document which is bogus or forged or where the consignor or consignee, as the case may be in the State, as shown in the document accompanying the goods, is non-existent or bogus.

(xlvii) “State” means the State of Kerala ;

(xlviii) “tax” means the tax payable under this Act ;

(xlix) “tax invoice” include s a bill of sale containing such particulars as may be prescribed.

(l) “taxable turnover” means the turnover on which a dealer shall be liable to pay tax as determined after making such deductions from his total turnover and in such manner as may be prescribed ;

(li) “total turnover” means the aggregate turnover in all goods of a dealer at all places of business in the State, whether or not the whole or any portion of such turnover is liable to tax, including the turnover of purchase or sale in the course of inter-State trade or commerce or in the course of export of the goods out of the territory of India or in the course of import of goods into the territory of India ;

(lii) “turnover” means the aggregate amount for which goods are either bought or sold, supplied or distributed by a dealer, either directly or through another, on his own account or on account of others, whether for cash or for deferred payment or for other valuable consideration, provided that the proceeds of the sale by a person not being a Company or Firm registered under the Companies Act, 1956 (Central Act 1 of 1956) and Indian Partnership Act, 1932 (Central Act 9 of 1932) of agricultural or horticultural produce grown by himself or grown on any land in which he has an interest whether as owner, usufructuary mortgagee, tenant or otherwise, shall be excluded from his turnover.

Explanation I.—The turnover in respect of delivery of goods on hire purchase or on any system of payment by instalments shall be the market price of such goods at the time of delivery.

Explanation II.—The turnover in respect of the transfer of the right to use any goods shall be the aggregate amount received or receivable by the dealer as consideration for such transfer.

Explanation III.—Subject to such conditions and restrictions, if any, as may be prescribed in this behalf ,

(i) The amount for which goods are sold shall include any sums charged for anything done by the dealer in respect of the goods sold at the time of, or before, the delivery thereof ;

(ii) Any cash discount on the price allowed in respect of any sale where such cash discount is shown separately or any amount refunded in respect of articles returned by customers shall not be included in the turnover ; and

(iii) Where for accommodating a particular customer, a dealer obtains goods from another dealer and immediately disposes of the same to the said customer, the sale in respect of such goods shall be included in the turnover of the latter dealer but not in that of the former ;

Explanation IV.—“Agricultural or horticultural produce” shall not include such produce as has been subjected to any physical, chemical or other process for being made fit for consumption, save mere cleaning, grading, sorting, drying or de-husking.

Explanation V.—Where a dealer receives in any return period any amount due to price variations in respect of any sale effected during any earlier return period, such amount shall be deemed to be the turnover relating to the return period in which such amount is received.

(liii) “vehicle” includes every wheeled conveyance used for the carriage of goods solely or in addition to passengers ;

(liv) “vessel” includes any ship, barge, boat, raft, timber, bamboos or floating materials propelled in any manner ;

(lv) “works contract” includes any agreement for carrying out for cash or for deferred payment or other valuable consideration the construction, fitting out, improvement, repair, manufacture, processing, fabrication, erection, installation, modification or commissioning of any movable or immovable property ;

(lvi) “year” means the financial year.

Chapter II

Authorities, Appellate Tribunal and Settlement Commission

3. Commercial Tax Authorities.—(1) The Commissioner shall have and exercise all the powers and shall perform all the duties conferred or imposed upon him by or under this Act :

Provided that the Commissioner may, by an order in writing, delegate any power vested in him to any officer appointed under sub-section (3).

(2) The Commissioner shall have superintendence over all officers and persons employed in the execution of this Act and the Commissioner may,—

(a) call for returns from such officers and persons ;

(b) make and issue general rules and prescribe forms for regulating the practice and proceedings of such officers and persons ;

(c) issue such orders, instructions and directions to such officers and persons as it may deem fit, for the proper administration of this Act.

(3) The Government shall appoint as many Joint Commissioners, Deputy Commissioners, Deputy Commissioner (Appeals), Assistant Commissioners, Commercial Tax Officers and such other officers as they think fit for the purpose of performing the functions respectively assigned to them by or under this Act. Such officers shall perform the said functions within such local limits as the Commissioner may assign to them.

(4) All officers and persons employed for the execution of this Act shall observe and follow the orders, instructions and directions of the officers superior to them :

Provided that no such orders, instructions or directions shall be given so as to interfere with the discretion of the Deputy Commissioner (Appeals) in the exercise of his appellate functions.

(5) The Commissioner or the Deputy Commissioner may by order in writing,—

(a) transfer any case or cases relating to any assessee or class of assessees pending before an assessing authority to another assessing authority having jurisdiction to deal with such case or cases ; or

(b) specify one of the assessing authorities having jurisdiction over an area, which shall deal with any case or cases relating to any assessee or class of assessees.

(6) Where any case is transferred to an assessing authority under clause (a) of sub-section (5), such assessing authority may deal with the case either de novo or from the stage at which it was transferred.

4. Appellate Tribunal.—(1) The Government shall appoint an Appellate Tribunal consisting of a Chairman and as many other members as they think fit to perform the functions assigned to the Appellate Tribunal by or under this Act.

(2) The Chairman shall be a person who is or has been a Judicial Officer not below the rank of a District Judge and the other members shall possess such qualifications as may be prescribed.

(3) Any vacancy in the office of a member of the Appellate Tribunal shall be filled by the Government.

(4) The functions of the Appellate Tribunal may be performed,—

(i) by a Bench consisting of the Chairman and any other member ; or

(ii) by a Bench consisting of the Chairman and two other members ; or

(iii) by a Bench consisting of two or more members other than the Chairman.

(5) In any case which comes up before a Bench of which the Chairman is not a member, involves a question of law, the bench may, in its discretion, reserve such case for decision by the Chairman or by a Bench to be constituted under sub-section (6), of which the Chairman shall be a member.

(6) The Bench or Benches of the Appellate Tribunal shall be constituted by the Chairman in accordance with the provisions of this Act and the Rules made thereunder.

(7) If the members of a Bench differ in opinion on any point, the point shall be decided according to the opinion of the majority, if there is a majority but if the members are equally divided, they shall state the point or points on which they differ, and such point or points shall be heard,—

(i) When the Chairman is not a member of that Bench, either by the Chairman or by the Chairman and any other member or members as the Chairman may direct ; and

(ii) When the Chairman is a member of that Bench, by any other member or members to whom the case is referred by the Chairman ;

and such point or points shall be decided according to the opinion of the majority of the members of the Tribunal who have heard the case, including those who first heard it.

(8) Any member who has previously dealt with any case coming up before the Appellate Tribunal in any other capacity or is personally interested in any case coming up before the Appellate Tribunal shall be disqualified to hear that case.

(9) Where any case is heard by a Bench consisting of two members and the members are divided in their opinion on any point and the other member or members of the Tribunal are disqualified under sub-section (8) to hear the case, the Government may appoint a person qualified to be appointed as a member of the Appellate Tribunal as an additional member of the Tribunal and the point shall be decided in accordance with the opinion of the majority of the members of the Tribunal who have heard the case, including those who first heard it.

(10) The additional member appointed under sub-section (9) shall cease to hold office on the disposal of the case for which he was appointed.

(11) The Appellate Tribunal shall, with the previous sanction of the Government make regulations consistent with the provisions of this Act and the Rules made thereunder for regulating its procedure and the disposal of its business.

(12) The regulations made under sub-section (11) shall be published in the Gazette.

5. Settlement Commission.—(1) The Government may appoint a Settlement Commission consisting of a Chairman and as many other members as they think fit, to perform the functions assigned to the Settlement Commission by or under this Act. The Chairman shall be a person who is a Judicial Officer not below the rank of a District Judge and the other members shall possess such qualifications as may be prescribed.

(2) Any vacancy in the office of the members of the Settlement Commission shall be filled by the Government.

(3) The functions of the Settlement Commission may be performed,—

(i) by a bench consisting of the Chairman and any other member ; or

(ii) by a bench consisting of the Chairman and two other members ; or

(iii) by a bench consisting of two or more members other than the Chairman.

(4) Any member who has previously dealt with any case coming up before the Commission in any other capacity or is personally interested in any such case shall be disqualified to hear such case.

(5) The Commission may, with the previous sanction of the Government, make regulations consistent with the provisions of this Act and the Rules made thereunder for regulating its procedure and the disposal of its business.

(6) The regulations made under sub-section (5) shall be published in the Gazette.

Chapter III

Incidence and levy of tax

6.  Levy of tax on sale or purchase of goods.—(1) Every dealer whose total turnover for a year is not less than two lakh rupees and every importer or casual trader or agent of a non-resident dealer, whatever be his total turnover for the year, shall be liable to pay tax on his sales or purchases of goods as provided in this Act. The liability to pay tax shall be,—

(a) in the case of goods specified in the Second, Third and Fifth Schedules at the rates specified therein and at all points of sale of such goods within the State ;

(b) in the case of goods specified in the Fourth Schedule at the rates specified therein and at the first point of sale of such goods within the State ;

(c) in the case of transfer of the right to use any goods for any purpose whether or not for a specified period, at the rate of four per cent at all points of such transfer ;

(d) in the case of transfer of goods involved in the execution of works contract where transfer is in the form of goods at the rates specified against such goods in the respective Schedules ;

(e) in the case of transfer of goods involved in the execution of works contract (where the transfer is not in the form of goods but in some other form) at the rate specified in the Fifth Schedule ;

(f) in the case of purchase of goods from any person the sale by whom is not liable to tax under this Act, at the rates specified against such goods in the respective Schedules :

Provided that in the case of petroleum products specified in the Fourth Schedule, where the sale is by an oil company, except where the sale is by an oil company to another oil company, tax shall be levied at the point of sale by an oil company liable to tax under this section and where the sale is not by an oil company, tax shall be levied at the point of first sale in the State by a dealer liable to tax under this section.

Explanation.—For the purpose of this proviso “oil company” means Kochi Refineries Ltd., Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd., Hindustan Petroleum Ltd., Indo-Burma Petroleum Company Ltd. and includes such other company as the Government may notify :

Provided further that in respect of foreign liquor mentioned in the fourth Schedule, tax shall be levied at the point of sale by the Kerala State Beverages (Manufacturing and Marketing) Corporation Limited and where the sale is not by the said Corporation, at the point of first sale by a dealer liable to tax under this section, except where the sale is to the said Corporation.

(2) Notwithstanding anything contained in sub-section (1), every dealer who purchase taxable goods from any person other than a registered dealer shall pay tax on the purchase turnover of the goods at the rate mentioned in the Schedules to this Act :

Provided that a dealer other than an importer, casual trader or an agent of a non-resident dealer shall not be liable to tax under this sub-section if his total turnover for a year is less than two lakh rupees.

(3) Every dealer in Foreign Liquor shall pay turnover tax at the rate of five per cent on the turnover at all points of sale :

Provided that the turnover on which tax shall be payable under this sub-section shall be determined after making such deductions from the total turnover as may be prescribed :

Provided further that any distillery in the State which sells liquor manufactured by it within the State to the Kerala State Beverages (Manufacturing and Marketing) Corporation Limited shall be liable to pay turnover tax on the turnover of sale of liquor by it to the said Corporation and the turnover for the purpose of this sub-section shall include any duty of excise leviable on such liquor at the hands of such manufacturer whether such duty is paid by the manufacturer or by the said Corporation.

(4) Goods specified in the First Schedule shall be exempted from tax.

(5) Notwithstanding anything contained in sub-section (1), any registered dealer other than an importer or a dealer liable to tax under sub-section (2) or a dealer effecting first taxable sale of goods within the State, whose total turnover for a year is below rupees twenty lakhs, may at his option, pay tax at the rate of two per cent of the turnover as presumptive tax instead of paying tax under sub-section (1).

(6) Notwithstanding anything contained in sub-section (1), where goods sold are contained in containers or are packed in any packing materials, the rate of tax and the point of levy applicable to such containers or packing materials, as the case may be, shall, whether the price of the containers or the packing materials is charged separately or not, be the same as those applicable to goods contained or packed, and in determining turnover of the goods, the turnover in respect of the containers or packing materials shall be included therein :

Provided that where the sale or purchase of goods contained in any containers or packed in any packing materials is exempted from tax, then, the sale or purchase of such containers or packing materials shall also be exempted from tax.

Explanation.—For the purposes of sub-section (6), the word “containers” includes gunny bags, tins, bottles or any other containers.

7.  Trade discount etc. deemed to be sale in certain cases.—Notwithstanding anything contained in any other provisions of this Act, where a dealer allows any trade discount or incentive in terms of quantity in goods in relation to any sale effected by him, the quantity so allowed as trade discount or incentive, shall be deemed to be a sale by the dealer, who allows such trade discount or incentive and a purchase by the dealer who receives such trade discount or incentive and such sale shall form part of the sale in relation to which such trade discount or incentive is allowed.

8.  Payment of tax at compounded rates.—Notwithstanding anything contained in section 6,—

(a) any works contractor who is not an importer may, at his option, instead of paying tax in accordance with the provisions of the said sections, pay tax at 2% of the whole contract amount which shall be deducted from every payment made by the awarder, including advance payments, and remitted to Government in such manner as may be prescribed.

(b) any dealer producing granite metals with the aid of mechanised crushing machine may, at his option, instead of paying tax in accordance with the provisions of the said sections, pay tax at the following rates, namely :—

(i) for each crushing machine of size not exceeding 30.48 cm x 22.86 cm = Rs. 30,000 per annum ;

(ii) for each crushing machine of size exceeding 30.48 cm x 22.86 cm but not exceeding 40.64 cm x 22.86 cm = Rs. 90,000 per annum ;

(iii) for each crushing machine of size exceeding 40.64 cm x 22.86 cm = Rs. 1,80,000 per annum ;

Explanation.—Primary crusher shall also be reckoned for the purpose of computation of the quantum of compounded tax.

(c) any dealer in cooked food and beverages including beverages prepared by him, other than a dealer supplying cooked food or beverages to any airlines, bar attached hotel or star hotel may, at his option, instead of paying tax in accordance with the provisions of section 6, pay tax at one per cent of the taxable turnover.

Explanation.—For the purpose of this clause “Bar attached Hotel” shall mean a hotel or restaurant which is licensed under the Foreign Liquor Rules to serve foreign liquor or beer specified in the Fourth Schedule.

(d) any dealer in lottery ticket may, at his option, pay, in lieu of the tax payable under those sections, licence fee at the following rates, namely :—

1. Daily lotteries              :     Rs. 10,000 per draw

2. Weekly Lotteries          :     Rs. 20,000 per draw

3. Bi-weekly Lotteries       :     Rs. 25,000 per draw

4. Monthly Lotteries         :     Rs. 50,000 per draw

5. Bumper, Super/Festival

     Bumper Lotteries          :     Rs. 1,00,000 per draw

6. Mega Bumper Lotteries          :     Rs. 3,00,000 per draw

Provided that in the case of on-line lotteries, in addition to the above, compounded tax at ten per cent of such rates shall be paid for each branch, franchisee or outlet as the case may be.

9.  Burden of proof.—The burden of proving that any transaction of a dealer is not liable to tax under this Act shall lie on such dealer.

10.  Deduction of tax at source.—(1) Every awarder shall deduct from every payment, including advance payment, made by him to any works contractor liable to pay tax under section 6, where the works contractor is registered under section 15, the tax payable by such works contractor or an amount equal to four per cent of the amount payable by such awarder to the contractor, whichever is less and where the works contractor is not so registered, the tax payable or an amount equal to eight per cent of the amount payable by the awarder to the works contractor, whichever is less, whether the transfer of goods involved in the execution of works contract is in the form of goods or not, and remit it to the Government within five days from the date of such deduction in the prescribed manner. Every such awarder shall also file such return as may be prescribed :

Provided that no deduction under this sub-section shall be made out of any payment made to any contractor where such payment relates to an inter-State sale, outside State sale or sale in the course of import.

(2) If the awarder effects any payment without deduction of the tax as provided under sub-section (1) or after making such deductions, fails to remit the same to the Government within the time-limit specified under sub-section (1), the whole amount of tax payable shall be recovered from the awarder and all provisions of this Act for the recovery of tax including those relating to levy of interest and penalty shall apply as if the awarder is the assessee for the purposes of this Act.

11.  Input Tax Credit.—(1) Subject to other provisions of this section, any registered dealer other than those paying presumptive tax under sub-section (5) of section 6 or those paying compounded tax under section 8, who makes purchases from a registered dealer, of taxable goods within the State for resale or for use by him in the manufacture of taxable goods other than those coming under Fourth Schedule, for sale or for use in the execution of works contract or for use as containers or as packing materials for the packing of taxable goods in the State for sale, shall be eligible for input tax credit.

(2) In respect of capital goods purchased by a dealer manufacturing taxable goods for sale, input tax credit will be allowed over a period of seven years from the date of commencement of commercial production or from the date from which the capital goods are put to use, whichever is later, in such manner and subject to such conditions as may be prescribed.

(3) Subject to the provisions of sub-section (4) to (13), input tax credit shall be allowed to a registered dealer in respect of a return period against the output tax paid by him for such period and the dealer shall pay to Government, the balance of the output tax in excess of the input tax credited in the manner prescribed.

(4) Unregistered dealers or dealers paying presumptive tax under sub-section (5) of section 6 or dealers paying compounded tax under section 8 or dealers who transfer the right to use goods under clause (c) of sub-section (1) of section 6 shall not be eligible for input tax credit.

(5) No input tax credit shall be allowed for the purchases,—

(a) from an unregistered dealer or from a dealer not liable to tax under section 6 or from a dealer whose registration has been cancelled ;

(b) from a dealer paying presumptive tax under sub-section (5) of section 6 ;

(c) from a dealer paying compounded tax under section 8 ;

(d) of goods from outside the State in the course of inter-State trade or commerce or otherwise in respect of tax paid on such purchase ;

(e) of goods which are used in the manufacture, processing or packing of goods specified in the First Schedule and the Fourth Schedule ;

(f) of goods specified in the Fourth Schedule ;

(g) of goods which are used as fuel in motor vehicles or vessels, consumable or stores ;

(h) of goods which are transferred to out side the State other than by way of sale in the course of inter-State trade or commerce or in the course of export outside the territory of India falling under section (1) of section 5 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956) ;

(i) of goods which are used in the manufacture, processing or packing of other goods where such manufactured, processed or packed goods are transferred to outside the State by way of stock transfer ;

(j) which relates to goods sold by a principal through his agent in respect of which the principal has claimed input tax credit or vice versa ;

(k) of goods remaining unsold at the time of closure of business ;

(l) of goods which are used in the manufacture, processing or packing of goods, where such manufactured, processed or packed goods remain unsold at the time of closure of business ;

(m) of goods where tax invoice in the prescribed form is not available with the dealer or there is evidence that the same has not been issued by the selling dealer ;

(n) by a dealer who is exempted from payment of tax ;

(o) of goods which are held as opening stock on the date of coming into force of this Act where such goods do not satisfy such requirements as may be prescribed.

(6) If the input tax of a dealer for a return period is more than the out put tax of that return period, the difference between the input tax and the out put tax shall be first adjusted against any interest, tax or any other amount due or demanded under this Act, from the dealer for any previous return period (s) and the balance, if any, shall be carried forward to the next return period for the purpose of allowing input tax credit in the succeeding return period.

(7) If goods are purchased in the course of business during any return period for any purpose mentioned in sub-section (1) and are subsequently used, fully or partly, for purposes other than those specified in the said sub-section, or has remained as unsold at the time of closure of business, the input tax on such goods used otherwise or goods remained as unsold at the time of closure shall be the reverse tax for that return period which may be determined in the manner prescribed.

(8) The reverse tax as determined under sub-section (7), shall be deemed to be an amount due under this Act.

(9) No input tax credit shall be allowed to a registered dealer in respect of any purchases unless he furnishes the original tax invoice (duly filled in and signed and issued by the selling dealer) and the input tax has been separately charged and shown in the original tax invoice for the relevant purchases.

(10) Notwithstanding anything contained in any other provisions of this Act, a dealer who purchases goods from another dealer whose Certificate of Registration is suspended, shall not be eligible for input tax credit on such purchases of goods, made during the period of suspension of the Certificate of Registration.

(11) Notwithstanding anything contained in any other provisions of this Act, a dealer whose Certificate of Registration is suspended shall not be entitled to claim any input tax credit during the period of suspension of the Certificate of Registration.

(12) A registered dealer who intends to claim input tax credit under this section shall, for the purpose of determining the amount of input tax credit, maintain the accounts and such other records as may be prescribed, in respect of purchases, supplies and sales effected by him in the State.

12.  Special rebating in certain cases.—(1) In calculating the net tax payable by a dealer for a return period there shall be deducted from the tax payable for the return period as specified under sub-section (3) of section 11, a sum equal to the tax levied under sub-section (2) of section 6, where such goods are sold or used in the manufacture of taxable goods for sale liable to tax either under this Act or under the Central Sales Tax Act, 1956 (Central Act 74 of 1956) :

Provided that where the goods are sold in the course of inter-State trade or commerce, the rebate under this section shall not exceed the amount calculated at the rate specified under sub-section (1) of section 8 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956) on the purchase turnover of goods sold.

(2) Notwithstanding anything contained in section 11, but subject to the provisions of clause (i) of sub-section (5) thereof, where an industrial unit makes purchases during a return period, of petroleum products specified in the Fourth Schedule, other than petrol, diesel or aviation turbine fuel, for use otherwise than as fuel in motor vehicles or vessels, in the manufacture of goods, the tax paid on the purchase of such goods in excess of four per cent shall be deducted from the tax payable for the return period.

13.  Refund of input tax in the case of export or inter-State sale.— (1) Where input tax has been paid under this Act in respect of purchase of any goods except those goods coming under Fourth Schedule, and such goods are either,—

(a) sold in the course of export out of the territory of India falling under sub-section (1) of section 5 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956 ) ; or

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

(c) consumed in the manufacture of goods other than those falling under the Fourth Schedule and the goods so manufactured are sold in the course of export to outside the territory of India falling under sub-section (1) of section 5 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956) ; or

(d) Consumed in the manufacture of goods other than those goods falling under the First Schedule and Fourth Schedule and the goods so manufactured are sold in the course of inter-State trade or commerce, the input tax paid on such goods shall be refunded to the person making such sales in the course of export out of the territory of India or in the course of inter-State trade or Commerce as the case may be, in such manner and subject to such conditions, as may be prescribed :

Provided that the dealer claiming such refund shall not claim input tax credit on such purchases for any return period :

Provided further that the refund of input tax in relation to sales under clause (b) and (d) shall not exceed the amount calculated at the rate specified in sub-section (1) of section 8 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956) on the turnover of purchases of such goods resold or used in the manufacture, as the case may be.

(2) Nothing contained in sub-section (1) shall be construed as preventing the assessing authority from adjusting any amount due as refund under sub-section (1) towards any tax or other amount due from the dealer, under this Act or under the provisions of the Kerala General Sales Tax Act, 1963 (15 of 1963), Central Sales Tax Act, 1956 (Central Act 74 of 1956) or Tax on Entry of Goods into Local Areas Act, 1994 (15 of 1994) .

14.  Reimbursement of tax.—Where tax has been collected by any dealer in the State from any agency of the United Nations Organization, the tax so collected shall be reimbursed to such agency of the United Nations Organization in such manner as may be prescribed.

Chapter IV

Registration and permit

15.  Registration of dealers.—(1) Every dealer whose total turnover in any year is not less than two lakh rupees shall, and any other dealer may, get himself registered under this Act.

(2) Notwithstanding anything contained in sub-section (1)

(i) every casual trader ;

(ii) every dealer, registered under the Kerala General Sales Tax Act, 1963 (15 of 1963) immediately before the date of commencement of this Act ;

(iii) every dealer registered under sub-section (3) of section 7 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956) ;

(iv) every dealer who in the course of his business obtains or brings goods from outside the State or effect export of goods out of the territory of India ;

(v) every dealer in bullion or specie or in jewellery of gold, silver or platinum group of metals ;

(vi) every dealer residing outside the State, but carrying on business in the State ;

(vii) every agent of a non-resident dealer ; and

(viii) every commission agent, broker, del credere agent, auctioneer or any other mercantile agent, by whatever name called, who carries on the business of buying, selling, supplying or distributing goods on behalf of any principal, shall get himself registered under this Act, irrespective of the quantum of his total turnover.

(3) Notwithstanding anything contained in the foregoing sub-sections, an authorised retail or wholesale distributor dealing exclusively in rationed articles under the Kerala Rationing Order, 1966, shall not be liable to get himself registered under this Act.

(4) The burden of proving that a dealer is not liable to be registered under this Act shall lie on that dealer.

16.  Procedure for registration.—(1) An application for registration shall be made to such authority, in such manner and within such period as may be prescribed and shall be accompanied by a fee as specified in the table below :—

Table

 

(a) Where the total turnover is less than three lakh rupees.

(b) Where the total turnover is three lakh rupees and above but is less than ten lakh rupees.

©   Where the total turnover is ten lakh rupees and above but less than fifty lakh rupees.

 

(d)   Where the total turnover is fifty lakh rupees and above. 

 

 

Two hundred and fifty rupees

 

Five hundred rupees.

 

 

Seven hundred and fifty rupees plus twenty five rupees for each lakh or part thereof above ten lakh rupees.

One thousand seven hundred and fifty rupees plus fifty rupees for each lakh or part thereof above fifty lakh rupees, however that the total registration fee payable shall not exceed twenty thousand rupees.

Provided that where the dealer is an authorised retail or wholesale distributor of rationed articles under the Kerala Rationing Order, 1966, his total turnover for the purpose of this sub-section shall not include the turnover in respect of such goods :

Provided further that in the case of a casual trader, the minimum registration fee to be paid shall be one thousand rupees.

(2) If the prescribed authority after making such enquiries as it may consider necessary, is satisfied that the application is in order and that the particulars furnished therein are correct, it shall register the applicant and issue to him a certificate of registration in the prescribed form.

(3) The registering authority shall dispose of the application for registration received under sub-section (1), within thirty days from the date of receipt of the application.

(4) Where a dealer has more than one place of business, the registration certificate shall cover all such places of business. The registering authority shall issue such number of certified copies of the registration certificate to the dealer for exhibition at each of his places of business and the dealer shall pay a fee of one hundred rupees for each of such certified copy.

(5) No fee specified above shall be payable by any State Government, Central Government or Government of any Union Territory or any department thereof or any local authority.

(6) The dealer shall exhibit the certificate of registration granted under sub-section (2) at the place of business mentioned therein. Where the dealer has more than one place of business, he shall exhibit the certificate of registration at the principal place of business mentioned therein and a certified copy thereof granted under sub-section (4) at every other place of business within the State mentioned in the certificate of registration.

(7) A certificate of registration issued under sub-section (2) shall be valid for a year and shall be renewed from year to year on payment of the fee specified in sub-section (1) and shall continue to be valid on such renewal.

(8) A dealer registered under sub-section (1) of section 15 shall be entitled to have his registration cancelled if he is able to prove to the satisfaction of the registering authority that his turnover in each of the two consecutive years immediately preceding the application was less than the limits mentioned in that sub-section.

(9) If any dealer registered under this Act has committed the offence of evasion of tax for more than once during an year, the registering authority may, for the reasons to be recorded in writing, cancel the registration of such dealer.

(10) Notwithstanding anything contained in sub-section (9), the registering authority shall have power, for good and sufficient reasons, to cancel, modify or amend any registration certificate issued by it.

(11) No application for registration or for renewal under this section shall be refused and no order under sub-section (9) or (10) shall be made, unless the dealer concerned has been given an opportunity of being heard.

(12) When a dealer has ceased to do business in any year, and gives notice of that fact to the registering authority, he shall not be liable topay any registration fee from the commencement of the following year unless he resumes business.

17. Security to be furnished in certain cases.—(1) Where the registering authority has reason to believe that a dealer is likely to make default in payment of tax or other amount due under this Act, he may, by order in writing, demand security from the dealer for an amount not exceeding one half of the tax payable on the turnover of the dealer for the year as estimated by the registering authority.

(2) Notwithstanding anything contained in sub-section (1), the registering authority may, at the time of registration, demand security by order in writing, from every dealer effecting first sale of goods within the State, an amount not exceeding one half of the tax payable on the turnover of the dealer for the year as estimated by the registering authority :

Provided that the registering authority shall have the power to demand at any time additional security if such authority has reason to believe that the turnover estimated under sub-section (1) or (2) was too low.

(3) The dealer from whom security or additional security is demanded shall furnish it within the prescribed time and in the prescribed manner.

18. Suspension of registration in certain cases.—(1) Notwithstanding anything contained in any other provisions of this Act, the Deputy Commissioner may, if he is satisfied that any dealer has violated the condition of a registration certificate issued to such dealer or that he has violated any of the provisions of this Act or the rules made thereunder or has prevented or obstructed or abetted the prevention or obstruction of any survey, inspection, entry, search or seizure by an officer empowered under this Act, without prejudice to any other action that may be taken against him under this Act, by order, suspend the registration of such dealer for such period not exceeding six months as may be specified in the order.

(2) Notwithstanding anything contained in sub-section (1) where a dealer registered under this Act has evaded tax exceeding one lakh rupees during a year, the Deputy Commissioner may, without prejudice to any other action that may be taken against him under this Act, by an order in writing, suspend, in the manner as may be prescribed, the Certificate of Registration for a period not less than six months but not exceeding one year.

(3) Any dealer who continues the business during the period of suspension of the registration shall be guilty of an offence under this Act.

19.  Issue of permits.—(1) Every registered dealer who transacts business at places other than his registered place or places of business or employs a travelling salesman or representative to transact business as aforesaid, shall obtain a permit issued under this Act authorising himself or permitting him to authorise, the travelling salesman or representative so to do.

(2) The entire turnover of business carried on under the permit shall be included and accounted for by the registered dealer in his accounts and returns and shall be dealt with as if it were the turnover of business done by the registered dealer himself at the registered place of business.

(3) Every permit holder shall carry the permit with him and shall produce it on demand by any officer of the Commercial Taxes Department empowered by the Government in this behalf. He shall maintain and produce on demand to any such officer a true and correct account of all the transactions carried on under the permit and a stock book showing the quantities of goods held by him, the quantities disposed of from day-to-day by sale or otherwise and the balance on hand at the end of each day.

(4) An application for the permit referred to in sub-section (1) shall be made to the registering authority, in such manner and within such period, as may be prescribed, and shall be accompanied by a fee of one hundred rupees.

Explanation.—A dealer may make a single application for all the permits required by him together with the fee for each permit applied for.

(5) If the registering authority is satisfied that the application is in order, and that the particulars furnished therein are correct, it shall issue the permit in the prescribed form.

(6) A permit issued under sub-section (5) shall be valid for a period of one year and shall be renewed from year to year on receipt of an application from the registered dealer, accompanied by a fee of one hundred rupees.

(7) The registering authority shall cancel a permit,—

(a) on requisition made in writing by the registered dealer, or

(b) on the cancellation of the certificate of registration.

(8) The registering authority may cancel a permit if the permit holder has contravened any of the terms or conditions of the permit or any of the provisions of this Act or the Rules made thereunder.

(9) No permit shall be cancelled under sub-section (8) unless the person affected has been given a reasonable opportunity of being heard.

Chapter V

Assessment, recovery of tax and penalty

20. Assessment of tax.—(1) The tax under this Act shall be, assessed, levied and collected in such manner as may be prescribed.

(2) In case of a dealer with more than one place of business, the aggregate turnover of all such places of business shall, subject to the provisions of sub-section (3), be taken as the turnover of the business for the purposes of this Act.

(3) The Commissioner may, on application by the dealer, treat each of such places of business as a separate unit for the purposes of levy, assessment and collection of tax, and thereupon all the provisions of this Act regarding registration, filing of returns, assessment and collection of tax shall apply, as if each of such places of business is a separate unit.

(4) Where any order is passed by the Commissioner under sub-section 3, the turnover of each of such places of business shall be liable to tax irrespective of such turnover being below the minimum turnover mentioned in section 6 provided that the total turnover in respect of all such places of business together is not less than the minimum turnover mentioned in section 6.

21.  Filing of returns and self assessment.—(1) Every registered dealer and every dealers liable to be registered under this Act shall submit to the assessing authority such return or returns by such dates in such manner and accompanied by such documents as may be prescribed.

(2) If the return submitted under sub-section (1) is in the prescribed manner and accompanied by the prescribed documents the assessment relating to the return period shall subject to the provisions of section 24 and section 25, be deemed to have been completed on the receipt of such return.

(3) If the return submitted under sub-section (1) of this section is not in the prescribed manner or not accompanied by the prescribed documents or with incorrect particulars, the assessing authority shall, after recording reasons, reject the return with due notice to the dealer.

(4) A dealer whose return is rejected under sub-section (3) may, within 15 days from the due date for filing of return, file a fresh return curing the defects in such manner and accompanied by such documents as provided under sub-section (1) together with proof of payment of interest on the tax payable at the rates provided under section 31 for the period from the due date of filing of return under sub-section (1) of this section till the date of filing of such fresh return. On the receipt of such return by the assessing authority, assessment for the return period shall, subject to the provisions of section 24 and section 25, be deemed to have been completed.

22.  Assessment in case of non filing of return and filing of defective return.—(1) If any dealer fails to submit any return as provided under sub-section (1) of section 21 or files incorrect return and fails to file a fresh return as provided under sub-section (4) of section 21, the assessing authority shall estimate the turnover of the return period and complete the assessment to the best of its judgement.

(2) No assessment under sub-section (1) of this section shall be completed without affording the dealer an opportunity of being heard.

(3) On receipt of the notice of assessment under sub-section (2), if the dealer files a return for the return period as provided under sub-section (1) of section 21 and accompanied by proof of payment of tax payable and interest on this amount from the due date for filing of return till the date of filing of return at the rates specified in section 31 and double the amount of interest so due as penalty the assessing authority shall drop the proposal for assessment under sub-section (1) and the assessment for the return period shall be deemed to have been completed on receipt of such return.

(4) Notwithstanding anything contained in any other provision of this Act no appeal shall lie against the assessment completed under sub-section (1) of this section unless the dealer has paid the entire tax assessed.

23.  Visit to dealer’s premises and audit of accounts and other records by audit officers.—(1) The Government or any authority or officer empowered by them in this behalf may designate any officer not below the rank of a Deputy Commissioner to conduct audit visit at the business place of any dealer and to audit any returns, books of accounts, any other records or stock statements and goods relating to the business, either by himself or through audit officers not below the rank of an assessing authority.

(2) The audit officers shall have all the powers of an assessing authority.

(3) The designated Officer may, by an order in writing, authorise not less than two audit officers to visit the place of business of any dealer and audit any returns, books of accounts, any other records, stock statements and goods relating to any return period.

(4) The audit officers authorised in this behalf may, with due intimation to the dealer enter any place of business and require the dealer, his employee or any other person found there assisting the dealer in carrying on business to make available all or any of the books of accounts or other records relating to any return period for audit and require them to prove the correctness of the stock statement and goods and thereupon the dealer or his representative shall render necessary facilities to the audit officers to conduct the audit.

(5) The audit officers may inspect and verify all or any of the books of accounts and other records relating to any return period and require the dealer to furnish any information or statements relating to the business which he may deem necessary for checking the credibility or correctness of the returns.

(6) If any dealer or any other person who is required to make available any books of accounts or records for audit fails to do so without any reasonable cause or fails to prove the correctness of the stock statement, goods or the turnover reported or the input tax credit or the refund claimed, notwithstanding anything contained in sections 11, 21 and 22, all the input tax credit claimed in respect of all the return periods up to the previous audit visit shall be liable to be disallowed and the assessments of the return periods liable to be completed to the best of judgement.

24.  Audit assessment.—(1) Notwithstanding anything contained in any other provision of this Act, if any dealer.,—

(a) is found on audit of his books of accounts other records or otherwise, to have submitted incorrect or incomplete return for any return period  ; or

(b) fails to make available any accounts or other records required by the audit officer for audit in the business place of the dealer ; or

(c) fails to prove the claim of input tax credit or refund claimed, the audit officer may, after conducting such enquiry as he may deem necessary, reject the returns of such return periods and complete the assessments to the best of judgment :

Provided that no assessment under this section shall be completed without affording the dealer an opportunity of being heard.

(2) Notwithstanding anything contained in sub-section (1) the officer designated under sub-section (1) of section 23 may, on his own motion or on a reference being made to him by the assessing authority or on an application of an assessee, call for and examine the record of any proceeding in which an assessment is pending and, if he considers that, having regard to the nature of the case or the amount involved or for any other reason, it is necessary so to do, he may issue such directions as he thinks fit for the guidance of the assessing authority to enable him to complete the assessment, and such directions shall be binding on the assessing authority :

Provided that no directions which are prejudicial to the assessee shall be issued before an opportunity is given to the assessee of being heard.

25.  Assessment of escaped turnover.—(1) Where for any reason the whole or any part of the turnover of business of a dealer has escaped assessment to tax in any year or has been underassessed or has been assessed at a rate lower than the rate at which it is assessable or any deduction has been wrongly made therefrom, or where any input tax credit has been wrongly availed of, the assessing authority may, at any time within five years from the last date of the year to which the return relates, proceed to determine, to the best of its judgment, the turnover which has escaped assessment to tax or has been underassessed or has been assessed at a rate lower than the rate at which it is assessable or the deduction in respect of which has been wrongly made or input tax credit that has been wrongly availed of and assess the tax payable on such turnover or disallow the input tax credit wrongly availed of, after issuing a notice on the dealer and after making such enquiry as it may consider necessary :

Provided that before making an assessment under this sub-section the dealer shall be given a reasonable opportunity of being heard.

(2) The time-limit mentioned in sub-section (1) shall not apply where the turnover which escaped assessment relates to any business done by such dealer as benamidar or through a benami or where it relates to a dealer, who being liable to get himself registered under this Act and the Rules made thereunder, has failed to do so or where the escaped turnover is on account of the dealer having claimed any input tax credit on the basis of any bogus or forged documents.

(3) In making an assessment under sub-section (1), the assessing authority may, if it is satisfied that the escape from assessment is due to wilful non-disclosure of assessable turnover by the dealer, direct the dealer to pay, in addition to the tax assessed under sub-section (1), a penalty as provided in section 68 :

Provided that no such penalty shall be imposed unless the dealer affected has had a reasonable opportunity of showing cause against such imposition.

Explanation.—For the purposes of this section, the burden of proving that the escape from assessment was not due to wilful non-disclosure of assessable turnover by the dealer shall be on the dealer.

(4) The powers under sub-section (1) may be exercised by the assessing authority even though the order of assessment, if any, passed in the matter, has been the subject-matter of an appeal or revision.

(5) In computing the period of limitation for the purposes of this section, the time during which the proceedings for assessment remained stayed under the orders of a Civil Court or other competent authority shall be excluded.

26.  Protective assessment.—Notwithstanding anything to the contrary contained in any judgment, decree, order, direction or decision of any court, Tribunal or other Authority, where the assessing authority has reason to believe that any person is, or was carrying on business in the name of, or in association with any other person, either directly, or indirectly, whether as agent, employee, manager, power of attorney holder, guarantor or in any other capacity, such person and the person in whose name the registration certificate, if any, is taken, shall jointly and severally, be liable for the payment of the tax, penalty or other amount due under this Act which shall be assessed, levied and recovered from all or any of such person or persons, as if such person or persons are dealers :

Provided that before taking action under this section, the persons concerned shall be given a reasonable opportunity of being heard.

27.  Assessment of legal representatives.—Where a dealer dies, his executor, administrator, or other legal representative shall be deemed to be the dealer for the purposes of this Act, and the provisions of this Act shall apply to him in respect of the business of the said deceased dealer, provided that, in respect of any tax, fee or other amount assessed as payable by any such dealer or levied on him or any tax, fee or other amount which would have been payable by him under this Act if he had not died, the executor, administrator or other legal representative shall be liable only to the extent of the assets of the deceased in his hands.

28.  Liability of firms.—(1) Where any firm is liable to pay any tax, fee or other amount under this Act, the firm and each of the partners of the firm shall be jointly and severally liable for such payment.

(2) Where a partner of a firm liable to pay any tax, fee or other amount under this Act retires, he shall, notwithstanding any contract to the contrary, be liable to pay the tax, fee or other amount remaining unpaid at the time of his retirement and any tax, fee or other amount due up to the date of retirement, though unassessed.

29.  Firm dissolved or business discontinued.—(1) Where any business carried on by a firm is discontinued or where a firm is dissolved, the assessing authority shall make an assessment of the taxable turnover of, and determine the tax payable by, the firm as if no such discontinuance or dissolution had taken place and all the provisions of this Act, including the provisions relating to levy of penalty or any other amount payable under any provisions of this Act, shall apply, so far as may be, to such assessment and determination.

(2) Without prejudice to the generality of sub-section (1), if the assessing authority in the course of any proceedings under section 75 in respect of any such firm as is referred to in that sub-section is satisfied that the firm was guilty of wilful non-disclosure of assessable turnover, it may direct payment of a penalty in accordance with the provisions of sub-section (2) of that section.

(3) Every person who was, at the time of such discontinuance or dissolution, a partner of the firm and the legal representative of any such person who is deceased, shall be jointly and severally liable, for the amount of tax, penalty or other amount payable, and all the provisions of this Act shall apply, so far as may be, to any such assessment or direction for payment of penalty or other amount.

(4) Where such discontinuance or dissolution takes place after any proceedings in respect of any year have commenced, the proceedings may be continued against the persons referred to in sub-section (3) from the stage at which the proceedings stood at the time of such discontinuance or dissolution, and all the provisions of this Act shall, so far as may be, apply accordingly.

(5) Nothing in this section shall affect the provisions of section 27.

30.  Collection of tax by dealers.—(1) A registered dealer may, subject to the provisions of sub-sections (2) and (3), collect tax at the rates specified in the Schedules, on the sale of any goods, from the person to whom he sells the goods.

(2) Dealers registered under this Act, except those dealers paying presumptive tax under sub-section (5) of section 6 and those paying compounded tax under section 8, alone shall be eligible to collect any sum by way of, or purporting to be by way of tax under this Act.

(3) No registered dealer shall collect any sum purporting to be by way of tax,—

(a) on the sale of any goods :

(i) in respect of which he is not liable to pay tax ; or

(ii) at a rate exceeding the rate at which he is liable to pay tax ; or

(b) in respect of the purchase of any goods, whether or not he is liable to pay tax on such purchase.

(4) No registered dealer shall collect from his purchasers the turnover tax payable by him under sub-section (3) of section 6.

(5) Where any dealer has collected any tax under sub-section (1) but has failed to pay the tax due under this Act for such sale to the Government, any person or persons responsible for such collection on behalf of the dealer including a Director, Manager, Secretary or other officers of a company shall be jointly and severally liable for payment of such amounts to the Government forthwith as if it were a tax due from him.

Explanation.—For the purposes of this section,—

(a) “company” means any body corporate and includes a firm or other association of individuals, or a Co-operative society ; and

(b) “Director” in relation to a firm, means partner in the firm.

31.  Payment and recovery of tax.—(1) Every dealer liable to pay tax under this Act for any return period shall pay tax within such period, as may be prescribed.

(2) In the case of a dealer from whom any tax or other amount is demanded shall pay tax in such manner and in such instalments, if any, and within such time, as may be specified in the notice of demand, not being less than fifteen days from the date of service of the notice :

Provided that the time-limit of fifteen days for a notice under this sub-section shall not apply to casual traders.

(3) If default is made in payment under sub-section (2), the whole of the amount outstanding on the date of the default shall become immediately due and shall be a charge on the properties of the person or persons liable to pay the tax or other amount under this Act.

(4) Any tax or any other amount due under this Act from a dealer or any other person may, without prejudice to any other mode of recovery, be recovered,

(a) as if it were an arrear of land revenue ;

(b) on application to any Magistrate, by such Magistrate as if it were a fine imposed by him :

Provided that no proceedings for such recovery shall be taken or continued as long as such dealer or other person has, in regard to the payment of such tax or other amount, as the case may be, complied with an order by any of the authorities to whom he has appealed or applied for revision, under the provisions of this Act.

(5) If the tax or any other amount due under this Act is not paid by any dealer or other person within the time prescribed therefor in this Act or in any Rule made thereunder and in other cases within the time specified therefor in the notice of demand, the dealer or other person shall pay, by way of interest, in the manner prescribed, in addition to the amount due, a sum equal to,—

(a) one per cent of such amount for each month or part thereof for the first three months after the date specified for its payment ;

(b) two per cent of such amount for each month or part thereof subsequent to the first three months aforesaid.

Explanation.—Where the period of default is less than one month, interest shall be calculated for the actual number of days of default.

(6) Where any dealer has failed to include any turnover of his business in any return filed or where any turnover or tax has escaped assessment, interest under sub-section (5) shall accrue on the tax due on such turnover or tax with effect from such date on which the tax would have fallen due for payment, had the dealer included the turnover or tax in the return relating to the period to which such turnover relates.

(7) Where, as a result of any order in appeal or revision or in any other proceedings, the tax or any other amount due under this Act is finally settled, the interest leviable under sub-section (5) shall be on the amount as finally settled and the period during which the collection of tax or other amount is stayed by any court or any other authority shall not be excluded in computing the period for calculating interest under the said sub-section.

(8) Where, as a result of any order in appeal or revision or any rectification under section 66 any dealer or other person is not liable to pay the tax or any other amount, the levy of interest for the non-payment of such tax or other amount shall be cancelled and if any amount of such interest has been collected, it shall be refunded to the dealer or other person as the case may be, in such manner as may be prescribed.

(9) Where, as a result of any order in appeal or revision or any rectification under section 66, any tax or any other amount due from any dealer or other persons has been reduced, the interest levied for the non-payment of such tax or other amount shall be proportionately reduced and if any amount of interest in excess of such reduced interest has been collected, such excess shall be refunded to the dealer or other person, as the case may be.

(10) The provisions of the Kerala Taxation Laws (Continuation and Validation of Recovery Proceedings) Act, 1967 (23 of 1967), shall apply for all proceedings in relation to the recovery of any amount due under this Act.

32.  Deferment of tax payable by Industrial Units.—(1) Subject to such conditions and restrictions as may be prescribed, Government may, by notification, order to defer payment of the whole or any part of the tax payable by any industrial unit in respect of which exemption in respect of tax payable under the Kerala General Sales Tax Act, 1963 (15 of 1963), the Central Sales Tax Act, 1956 (Central Act 74 of 1956) or the Surcharge on Taxes Act, 1957 (11 of 1957) had been granted or is due to be granted under any notification issued under section 10 of the Kerala General Sales Tax Act, 1963 (15 of 1963), under the Industrial Policy of the State.

(2) Notwithstanding anything contained in this Act but subject to such conditions as the Government may, by general or special order specify, where in respect of an industrial unit deferment is granted under sub-section (1) and where liability equal to the amount of any such tax deferred has been created as a loan by Government, such tax deferred shall be deemed to have been paid and shall not attract interest under sub-section (5) of section 31 during the period for which deferment is granted.

33. Special powers of Assistant Commissioners under Revenue Recovery Act.—(1) The Government may, by notification in the Gazette, appoint any Assistant Commissioner to exercise the functions of a Collector under the Kerala Revenue Recovery Act, 1968 (15 of 1968) for the recovery of arrears due under this Act.

(2) Notwithstanding anything contained in any other law for the time being in force, an officer appointed under sub-section (1) shall be deemed to be a Collector within the meaning of clause (c) of section 2 of the Kerala Revenue Recovery Act, 1968 (15 of 1968).

34.  Recovery of penalty.—Penalty payable under this Act shall be deemed to be a tax under this Act for the purpose of collection and recovery and shall be recoverable without prejudice to the institution of any proceeding for prosecution for an offence under this Act.

35.  Further mode of recovery.—(1) The assessing authority may, at any time or from time to time by notice in writing (a copy of which shall be forwarded to the dealer at his last address known to the assessing authority) require any court or any officer of the Central Government or of the Government of any State or Union Territory or any other person (other than an individual) from whom money is due or may become due to the dealer or any court or any such officer or any other person (other than an individual) who holds or may subsequently hold money for or on account of the dealer, to pay to the assessing authority, either forthwith if the money has become due or is so held or within the time specified in the notice (not being before the money becomes due or is held), so much of the money as is sufficient to pay the amount due by the dealer in respect of arrears of tax, fee or penalty or the whole of the money when it is equal to or less than the arrears of tax, fee or penalty.

(2) The assessing authority may at any time or from time to time amend or revoke any such notice or extend the time for making any payment in pursuance of the notice.

(3) Any court, officer or other person making any payment in compliance with a notice under this section shall be deemed to have made the payment under the authority of the dealer and the receipt by the assessing authority shall constitute a good and sufficient discharge of the liability of such court, officer or other person to the extent of the amount referred to in the receipt.

(4) Any court or person other than an officer of the Government making any payment to the dealer after receipt of the notice referred to in this section shall be liable to the assessing authority to the extent of the payment made or to the extent of the liability of the dealer for the amount due under this Act, whichever is less.

(5) Where any court or person other than, an officer of the Government to which or to whom a notice under this section is sent objects to it on the ground that the sum demanded or any part thereof is not due by it or him to the dealer or that such court or person does not hold any money for or on account of the dealer, then nothing contained in this section shall be deemed to require such court or person to pay the sum demanded or any part thereof to the assessing authority.

(6) Any amount which a court or person other than any officer of the Government is required to pay the assessing authority or for which it or he is liable to the assessing authority under this section shall, if it remains unpaid, be a charge on the properties of such court or person, as the case may be, and may be recovered as if it were an arrear of public revenue due on land.

Explanation :—For the purposes of this section, the amount due to a dealer or money held for or on account of a dealer by any court, officer or other person shall be computed after taking into account such claims if any, as may have fallen due for payment by such court, officer or other person, as the case may be, and as may be, lawfully subsisting.

36.  Recovery of tax when business is transferred.—Where the ownership of the business of a dealer liable to pay tax or other amount is transferred, any tax or other amount payable under this Act in respect of such business and remaining unpaid at the time of the transfer and any tax or other amount due up to the date of transfer, though un assessed may, without prejudice to any action that may be taken for its recovery from the transferor, be recovered from the transferee as if he were the dealer liable to pay such tax or other amount :

Provided that the recovery from the transferee of the arrears of tax due for the period prior to the date of the transfer shall be limited to the value of the assets he obtained by transfer.

37.  Certain transfers to be void.—Where, during the pendency of any proceedings under this Act or after the completion thereof, any assessee creates a charge on, or parts with the possession (by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever) of any of his assets in favour of any person, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the assessee under this Act.

38.  Tax payable to be first charge on the property.—Notwithstanding anything to the contrary contained in any other law for the time being in force, any amount of tax, penalty, interest and any other amount, if any, payable by a dealer or any another person under this Act, shall be the first charge on the property of the dealer, or such person.

39. Liability of Directors of a Private Company.—Where any tax or other amount recoverable under this Act from any private company, whether existing or wound up or under liquidation, cannot be recovered for any reason whatsoever, every person who was a director of such company at any time during the period for which the tax or other amount is due under this Act shall be jointly and severally liable for the payment of such tax or other amount unless he proves that the non-recovery cannot be attributed to any negligence, misfeasance or breach of duty on his part in relation to the affairs of the company.

Chapter VI

Inspection of business places and accounts and establishment of check-posts

40.  Maintenance of true and correct accounts by dealers.—Every person registered under this Act, every dealer liable to get himself registered under this Act and every other dealer who is required so to do by the authority by notice served in the prescribed manner shall keep and maintain true and correct accounts and such other records as may be prescribed, in Malayalam, Tamil, Kannada, or English relating to his business, showing such particulars as may be prescribed. Different particulars may be prescribed for different classes of dealers.

41.  Credit notes and debit notes.—(1) Where subsequent to any sale of taxable goods effected by a dealer the purchaser has returned the goods covered by the tax invoice fully or partly, within the period permitted by this Act or the Rules made thereunder, the dealer effecting the sale shall issue, forthwith, to the purchaser a credit note containing such particulars as may be prescribed.

(2) Where a tax invoice or a bill of sale has been issued as per the provisions of this Act or the Rules made thereunder and the tax payable in respect of the sale is more than the amount shown as tax charged in such tax invoice or sale bill, as the case may be, the dealer making such sale shall issue to the purchaser a debit note containing such particulars as may be prescribed.

42.  Audit of accounts and certification of returns.—Every dealer whose total turnover in a year exceeds rupees forty lakhs shall get his accounts audited annually by a Chartered Accountant or Cost Accountant and shall submit copy of the audited statement of accounts and certificate, in the manner prescribed.

43.  Power of survey.—Any officer not below the rank of an assessing authority may, for the purpose of survey for ascertainment of commencement of liability for registration under this Act, enter any place of business and require the dealer, employee or any other person who may at that time helping in carrying on such business, to provide necessary facility,—

(i) to inspect books of accounts or documents relating to the business, and

(ii) to check or verify the cash and stock of goods which may be found therein, and

(iii) to furnish such information including such statement relating to any matter which may be useful for or relevant to any proceedings under this Act and the dealer, employee or any other person shall comply with such requirements :

Provided that no residential accommodation (not being a shop-cum- residence) shall be entered into or inspected unless such officer is specially authorised in writing by the Commissioner to search that residential accommodation.

44.  Power to order production of accounts and powers of entry, inspection etc.—(1) An officer not below the rank of an assessing authority may, for the purposes of this Act, by notice, require any dealer,—

(a) to produce or cause to be produced before him any accounts, registers, records or other documents ; or

(b) to furnish or cause to be furnished any other information, relating to his business, and such dealer shall comply with such requisition.

(2) Any officer, not below the rank of an assessing authority may,

(a) enter any place of business ; and

(b) inspect any accounts, registers, records or other documents relating to his business and the goods in his possession.

(3) If any officer not below the rank of an assessing authority has reason to believe that a dealer is trying to evade any tax under this Act, he may, for reasons to be recorded, enter and search,—

(a) the place of business of the dealer ; or

(b) any other place where the dealer is keeping or is reasonably suspected to be keeping any goods, accounts, registers, records or other documents relating to his business :

Provided that no residential accommodation (not being a shop-cum- residence) shall be entered into or searched unless such officer is specially authorised in writing by the Commissioner to search that accommodation.

Explanation.—For the purposes of clause (b), “place” includes any godown, building, vessel, vehicle, box or receptacle.

(4) All searches under this section shall, so far as may be, be made in accordance with the provisions of the Code of Criminal Procedure, 1973 (Central Act 2 of 1974).

(5) The officer making the inspections or search may seize such accounts, registers, records or other documents, as he considers necessary and on such seizure he shall grant the dealer a receipt of the things seized.

(6) The accounts, registers, records or other documents seized under sub-section (5) shall not be retained by the officer seizing them beyond a period of sixty days from the date of the seizure except with the permission of the next higher authority, unless they are required for any prosecution under this Act :

Provided that the next higher authority shall not give permission to retain such accounts, registers, records or other documents beyond a period of ninety days from the date of the seizure.

(7) The power conferred by sub-sections (3) and (5) shall include :—

(a) the power to break open any box or receptacle or place or the door of any premises, in which any goods or any accounts, registers, records or other documents of the dealer are, or are reasonably believed to be kept :

Provided that the power to break open the door shall be exercised only after the owner or any other person in occupation of the premises fails or refuses to open the door on being called upon to do so.

(b) the power to seal any box or receptacle, godown or building, where any goods or any accounts, registers, records or other documents are, or are reasonably believed to be kept, if the owner or any other person in occupation leaves the premises or refuses to open the box or receptacle, godown or building, or is not available, and then to break open such box, receptacle, godown or building on the authority of an authorisation in writing by the Commissioner.

(c) the power to search any person who has got out of, or is about to get into or is in, any place referred to in clause (a) or clause (b) of sub-section (3) or any vessel or vehicle of any dealer, if the officer has reasons to suspect that such person has secreted about his person any goods or any accounts, registers, records or other documents.

(d) The power to require any person who is found to be in possession or control of any accounts, register or other documents maintained in the form of electronic record as defined in clause (t) of sub-section (1) of section (2) of the Information Technology Act, 2000, to afford such officer the necessary facility to have an access to such books of accounts or other documents.

(e) The power to record the statement of any dealer or his manager, agent or servant, to take extracts from records found in any premises and to put identification marks on accounts, registers, documents or goods.

(f) the power to take samples of goods from the possession of any dealer, where he considers it necessary, to protect the revenue against mistake or fraud and provide a receipt of any samples so taken and the samples shall, except where an offence is found, be returned to the dealer or be disposed of, with the approval of the Commissioner, after giving the dealer an opportunity of being heard.

(8) If any officer, while inspecting any place of business under sub-section (2) or searching any place under sub-section (3) finds therein any goods not accounted for by the dealer in his accounts and other records required under section 40 to be kept and maintained by him, such officer may, after giving the dealer a reasonable opportunity of being heard, by order, direct the payment of a penalty, not exceeding fifty per cent of the value of the goods not accounted for, as may be fixed by such officer.

(9) If any officer, during the course of any inspection or search of any business place, building, godown or any other place finds that any goods not accounted for by any dealer in this accounts or other records required to be maintained under this Act and not claimed by any dealer or any other person are stored in any business place, building, godown or other place, such officer may seize the same by giving the owner of such business place, building, godown or other place a receipt of the goods seized and after giving him a reasonable opportunity of being heard, sell the same in public auction, in the manner as may be prescribed.

45.  Purchase of goods to prevent under valuation.—The assessing authority or any other officer empowered in this behalf by the Government, is satisfied that any dealer with a view to evade payment of tax, shows in his accounts, sale or purchase of any goods at prices lower than the prevailing market price of such goods, shall have the power to purchase such goods at a price of ten per cent above the purchase value or the value disclosed by any principal or agent in the case of goods received on consignment basis plus transporting charges and entrust such goods for sale to the Kerala State Civil Supplies Corporation Ltd. or Kerala State Marketing Federation Limited or to any such public distribution system or sell such goods in public auction.

46.  Establishment of check-post and documents to be carried with the goods.—(1) If the Government consider that with a view to prevent or check evasion of tax under this Act in any place or places in the State it is necessary so to do, they may by notification in the Gazette direct setting up of check-posts at such place or places, and define the boundaries of such check-posts and notify the area of the check-posts included within such boundaries, hereinafter, referred to as the notified area, and demarcate such boundaries by means of barriers or otherwise for the purpose of regulating the passage of goods across the notified area.

(2) If the Commissioner is satisfied that for the purpose of preventing evasion of tax, check-posts are to be set up for a specified period or periods, he may for reasons to be recorded in writing, set up such check-posts and all other provisions relating to the check-posts mentioned in sub-section (1) shall be applicable to such check-posts also.

(3) Subject to the provisions of sub-section (4), no person shall transport within the State across or beyond the notified area any consignment of goods, exceeding such quantity or value, as may be prescribed, by any vehicle or vessel, unless he is in possession of,—

(a) either a tax invoice or delivery note or certificate of ownership containing such particulars, as may be prescribed ; and

(b) a permit in such form, as may be prescribed and issued by the officer empowered in this behalf or the assessing authority, as the case may be, when notified goods, exceeding such quantity or value as may be prescribed, is transported into or out of the State :

Provided that in the case of notified goods, the consignment shall be accompanied by a delivery note notwithstanding that it is accompanied by any of the other documents specified in this sub-section.

Explanation I.—The term “goods” referred to in this sub-section shall not include luggage of persons who cross the notified area.

Explanation II.—For the purposes of this Act transport of goods commences at the time of delivery of goods to a carrier or bailee for transmission and terminates at the time when delivery is taken from such carrier or bailee.

(4) No person shall transport within the State, across or beyond the notified area or within two kilometres from the border area, by head load, or by animal load, any consignment of notified goods exceeding such quantity, as may be prescribed, unless he is in possession of the documents specified in sub-section (3).

47.  Procedure for inspection of goods in transit.—(1) The driver or other person in-charge of a vehicle or vessel shall stop the vehicle or vessel and any person referred to in sub-section (4) of section 46 shall stop or, as the case may be, stop the animal at any place within a notified area when so required by the officer-in-charge of that notified area, or at any other place when so required by any officer empowered by the Government in that behalf, for the purpose of enabling such officer to verify the documents required by sub-section (3) of section 46 to be in the possession of the person transporting the goods and to satisfy himself that there is no evasion of tax.

(2) If such officer has reason to suspect that the goods under transport are not covered by proper and genuine documents (in cases where such documents are necessary) or that any person transporting the goods is attempting to evade payment of the tax due under this Act, he may, for reasons to be recorded in writing, detain the goods and shall allow the same to be transported only on, the owner of the goods or his representative or the driver or other person in-charge of the vehicle or vessel on behalf of the owner of the goods, furnishing security for double the amount of tax likely to be evaded, as may be estimated by such officer :

Provided that such officer may, if he deems fit, having regard to the nature of the carrier or the goods and other relevant matters, allow such goods to be transported on the owner of the goods or his representative or the driver or other person in-charge of the vehicle or vessel executing a bond with or without sureties for securing the amount due as security :

Provided further that where the documents produced in support of the transport of goods evidence defects of a minor or technical nature only and the goods are owned by a dealer registered under this Act, such officer may allow the goods to be transported after realising the tax on the turnover of the goods under transport.

(3) Where the owner, driver or person in-charge of the vehicle or vessel carrying the goods detained under sub-section (2) is found in collusion for such carrying of goods, the vehicle or vessel shall also be detained and seized by the officer empowered under sub-section (1) and such vehicle or vessel shall be released only on the owner, driver or person-in-charge of it furnishing the security provided in sub-section (2). In case of failure to furnish the security as above, the officer detaining and seizing the vehicle shall have the power to order the vehicle or vessel being taken to the nearest Police Station or to any check-post or to the office of the Commercial Tax Department for safe custody of the goods or the vehicle or the vessel or both :

Provided that where the owner, driver or person-in-charge of a vehicle or vessel carrying goods is found guilty of the offence under this sub-section for a second or a subsequent time, such vehicle or vessel may be detained for a period not exceeding thirty days from the date of furnishing the security.

(4) If such officer has reason to believe that the tax exigible on the sale or purchase of goods under transport is not paid, or the dealer whose goods are transported is in default of payment of any tax or other amount due under this Act for any period, such officer may, notwithstanding anything to the contrary contained in this Act or the Rules made thereunder allow the goods to be transported after realising the tax in respect of the goods transported. If the driver or the person in-charge of the goods or the dealer whose goods are under transport refuses to pay such tax, the goods shall be detained by such officer and shall be dealt with in the manner provided in this section as if the transport of goods were an attempt to evade payment of tax due under this Act.

(5) The officer detaining the goods shall record the statements, if any, given by the owner of the goods or his representative or the driver or other person-in-charge of the vehicle or vessel and shall submit the proceedings along with the connected records to such officer not below the rank of Commercial Tax Officer as may be authorised in that behalf by the Government, for conducting necessary inquiry in the manner prescribed :

Provided that where tax is collected under the second proviso to sub-section (2) or under sub-section (4), no enquiry under this sub-section shall be necessary and the officer detaining the goods shall submit the proceedings along with the connected records to the concerned assessing authority.

(6) The officer authorised under sub-section (5) shall, before conducting the inquiry, serve notice on the owner of the goods and give him an opportunity of being heard and if, after the enquiry, such officer finds that there has been an attempt to evade the tax due under this Act, he shall, by order, impose on the owner of the goods a penalty not exceeding twice the amount of tax attempted to be evaded, as may be estimated by such officer.

(7) No action under sub-section (2) or sub-section (5) or sub-section (6) shall be taken in respect of goods already subjected to the proceedings under those sub-sections.

(8) If the owner of the goods or his representative or the driver or other person-in-charge of the vehicle or vessel does not furnish security or execute the bond as required under sub-section (2) within fourteen days from the date of stopping the vehicle or vessel under sub-section (1), the officer referred to in that sub-section may, by order, seize the goods, and in the event of the owner of the goods not paying the penalty imposed under sub-section (6) within thirty days from the date of the order imposing the penalty, the goods seized shall be liable to be sold for the realisation of the penalty in the manner provided in sub-section (11).

(9) When any goods are seized under sub-section (8), the officer seizing the goods shall issue to the owner of the goods if present or, if the owner of the goods is not present, to his representative or the driver or other person-in-charge of the vehicle or vessel, a receipt specifying the description and quantity of the goods so seized and obtain an acknowledgment from such person or, if such person refuses to give an acknowledgment, record the fact of such refusal in the presence of two witnesses.

(10) The notice under sub-section (6) to be served on the owner of the goods shall be given to the address as furnished in any of the documents referred to in sub-section (1) or to the address furnished by the driver or other person-in-charge of the vehicle or vessel, and if there are no such documents or if the address is not furnished, a notice giving the description of the goods, the approximate value thereof, the number and description of the vehicle or vessel in which the goods were carried and the date and time of detention and also indicating the provisions of the Act and the Rules made thereunder which have been violated shall be,—

(a) displayed on the notice board of the officer authorised under sub-section (5) ; and

(b) published in not more than two daily newspapers having wide circulation in the area in which the goods were detained, before conducting the inquiry under sub-section (6).

(11) The goods seized under sub-section (9) shall be sold by the officer who imposed the penalty by public auction to the highest bidder and the sale proceeds shall be remitted in the Government treasury. The auction purchaser shall pay the sale value of the goods in ready cash immediately after the sale and he will not be permitted to carry away any part of the property until he has paid for the same in full. Where the purchaser fails to pay the purchase money, the property will be re-sold at once and the defaulting purchaser will be liable for any loss arising from as well as the expenses incurred on the re-sale.

(12) If the goods seized are of a perishable nature or subject to speedy and natural decay, or when the expenses of keeping them in custody are likely to exceed their value, the officer-in-charge of the notified area or the other officer empowered under sub-section (1), as the case may be, shall immediately sell such goods or otherwise dispose of them and remit the sale proceeds of such goods, or the amount obtained by the disposal of such goods otherwise than by sale, in the Government treasury.

(13) If the order of imposition of penalty under sub-section (6) or of seizure of goods under sub-section (8) is set aside or modified in appeal or other proceedings, the appropriate authority shall also pass consequential orders for giving effect to the order in such appeal or other proceedings, as the case may be.

(14) The owner of the goods sold or otherwise disposed of under this section shall be liable to pay the expenses and other incidental charges for keeping the goods seized in custody until the sale or other disposal and the charges for publication in newspapers of the notice under sub-section (10).

(15) If the sale proceeds of any goods sold or the amount obtained on the disposal of any goods otherwise than by sale under provisions hereinbefore contained exceeds the penalty imposed in respect of such goods, such excess amount after deducting the expenses, incidental charges and charges for publication referred to in sub-section (14) shall be returned by the officer who conducted the sale or otherwise disposed of the goods to the owner of the goods on his establishing the ownership thereof.

(16) Notwithstanding anything contained in the foregoing provisions where any officer referred to in sub-section (1) finds on inspection of any goods under transport that such goods are transported or attempted to be transported in the name of bogus or unidentifiable person or under cover of bogus documents, such officer may, after giving notice to the owner or any person-in-charge of the vehicle, carrier of bailee in writing and after following such procedure as may be prescribed, seize the goods and sell the same in the public auction and the sale proceeds shall be remitted to Government.

48.  Transit of goods through the State and issue of transit pass.—(1) When a vehicle or vessel carrying goods from any place outside the State and bound for any place outside the State passes through the State, the owner or consignor of goods or owner or driver or person-in- charge of such vehicle or vessel shall obtain a transit pass in the prescribed form for such goods from the officer-in-charge of the first check-post after his entry into the State and deliver it to the officer-in-charge of the last check-post before his exit from the State.

(2) If the owner or consignor of goods or owner or driver or person- in-charge of such vehicle or vessel fails to deliver the transit pass for such goods referred to in sub-section (1) to the last check-post, it shall be presumed that such goods which are liable to tax under this Act and the goods have been delivered within the State for sale :

Provided that where the goods carried by such vehicle or vessel are, after their entry into the State, transported outside the State by any other vehicle or conveyance, the onus of proving that goods have actually moved out of the State, shall be on the owner or consignor of goods or owner or driver or person-in-charge of such vehicle or vessel, as the case may be.

(3) Where it is presumed under sub-section (2) that the goods carried in a vehicle or vessel have been delivered within the State for sale by the owner or consignor of goods or owner or driver or person-in-charge of such vehicle or vessel such owner or consignor of goods or owner or driver or person-in-charge of the vehicle or vessel shall be jointly or severally liable to pay tax which shall be assessed and recovered in accordance with the relevant provisions of this Act, irrespective of the limit of any turnover together with an amount of penalty not exceeding twice the amount of such tax as may be assessed, after having given to the person or persons aforesaid an opportunity of being heard by the assessing authority under whose jurisdiction the check-post is situate.

(4) Where any person consigns any goods or transports any goods from another State into the State and where the particulars furnished in the documents accompanying the goods are false or the consignor or purchaser stated therein is found to be bogus or non-existent or is not traceable or denies such purchase, it shall, unless the consignor or the owner or driver or the person-in-charge of the vehicle proves to the satisfaction of the assessing authority that the particulars furnished in the document are true, be presumed that such goods which are liable to tax under this Act have been sold in the State by the consignor or the owner of the goods or the owner or driver or person-in-charge of the vehicle or the person-in-charge of the goods or all of them jointly and they shall be jointly or severally liable to pay tax on such sales which shall be assessed and recovered in the manner provided in sub-section (3).

(5) For the purpose of this section, the owner or driver or person-in-charge of the vehicle or vessel shall, unless he is a registered dealer under this Act, be deemed to be a registered dealer for assessment of tax under this Act.

(6) Where the goods enter the State by way of import from foreign countries through any airport or sea port and the goods are transported to a place outside the State through a vehicle or vessel, the transit pass shall be obtained from the first check-post or from the office of the Commercial Taxes Department nearer to the airport or sea port, as the case may be, and the provisions in sub-sections (1) to (5) shall apply accordingly.

49.  Confiscation by authorised officers in certain cases.—(1) Any officer, not below the rank of a Commercial Tax Officer shall have the power to intercept and search the vehicle or vessel or any conveyance transporting notified goods at any place within the State for the purpose of enabling such officer to verify whether any notified goods are being smuggled into or out of the State.

(2) If on verification such officer has reason to suspect that the notified goods are being smuggled into or out of the State, he may, without any unreasonable delay, produce the goods and the vehicle before such officer authorised by the Government, by notification in the Gazette, not below the rank of an Assistant Commissioner.

(3) Where the authorised officer is satisfied that the driver or other person-in-charge of the vehicle or vessel or other conveyance is smuggling notified goods, the officer shall have the power to seize and detain the goods along with the vehicle or vessel :

Provided that before taking action to seize and detain the goods and the vehicle or vessel under this section, the officer shall give the person-in-charge of the goods and the owner, if ascertainable, and to the owner of the vehicle or the person-in-charge of the vehicle a notice in writing informing him the reason for the seizure and detention of the goods and vehicle or vessel and an opportunity of being heard :

Provided further that the authorised officer may release the goods and the vehicle or vessel seized and detained if the owner or the person-in-charge of the notified goods or the owner or person-in-charge of the vehicle or vessel files an option to pay in lieu of seizure and detention, a penalty equal to thrice the amount of tax due at the rate applicable to the goods liable to seizure and detention and twice the tax due or an amount of Rs.50,000 whichever is higher for the release of the vehicle or vessel in lieu of detention :

Provided further that if the owner of the vehicle produces the documents specified in sub-section (3) of section 46 and the owner of the goods proves the bona fides of the transport of goods within seven days of the seizure and detention the officer shall release the goods and the vehicle.

(4) Notwithstanding anything contained in the foregoing provisions, if the owner or person-in-charge of the notified goods or the owner or person-in-charge of the vehicle fails to prove the genuineness of the transport of the notified goods or to remit the penalty as specified in second proviso to sub-section(3), within thirty days from the seizure and detention of goods and the authorised officer has reason to believe that the owner or the person-in-charge of the vehicle or the driver has transported the notified goods to evade payment of tax with the knowledge or connivance of the owner of the goods, the officer may confiscate the vehicle or vessel along with the goods.

(5) No order confiscating any vehicle or vessel shall be made under sub-section (4), if the owner or the person-in-charge of the vehicle or vessel proves to the satisfaction of the authorised officer that it was used for carrying the notified goods without the knowledge or connivance of the owner himself, his agent, if any, or the person-in-charge of such vehicle or vessel and that each of them have taken all reasonable and necessary precautions against such use :

Provided that the authorised officer shall serve notice to the owner of the vehicle or the person-in-charge of the vehicle or the owner of the notified goods, if ascertainable, intimating the reason for the confiscation of the vehicle or vessel and an opportunity of being heard. The officer shall also afford an opportunity to pay a penalty equal to thrice the amount of tax attempted to be evaded by the owner of the goods and rupees one lakh by the owner or person-in-charge of the vehicle or vessel in lieu of confiscation of vehicle, if the owner of the notified goods is not ascertainable or not willing to remit the penalty specified, the owner of the vehicle or the person-in-charge of the vehicle or vessel shall pay three times of the tax sought to be evaded and an amount of rupees one lakh in lieu of confiscation of the goods and vehicle.

(6) Any person aggrieved by an order under sub-section (5) may, within thirty days from the date of communication to him of such order, file an application for revision in such manner and in such form as may be prescribed and accompanied by a fee of rupees five hundred before the Deputy Commissioner and the Deputy Commissioner may pass such orders thereon as he thinks fit :

Provided that the Deputy Commissioner may admit an application for revision preferred after the expiry of the said period if he is satisfied that the applicant had sufficient cause for not filing the revision petition within the said period.

(7) Any person aggrieved by an order under sub-section (6) may, within thirty days from the date of communication to him of such order, file a revision in such manner and in such form as may be prescribed and accompanied by a fee of rupees five hundred before the Commissioner and the decision of the Commissioner shall be final :

Provided that the Commissioner may admit an application for revision filed after the expiry of the said period if it is satisfied that the applicant had sufficient cause for not filing the application within the said period.

(8) Where an order of confiscation under this section has become final in respect of any goods/vessel such goods vehicle or vessels as the case may be shall vest in the Government free from all encumbrances.

(9) The award of confiscation under this section shall not prevent the infliction of any punishment to which the person affected thereby is liable under the Act.

50.  Procedure as to perishable goods seized under section 49.— (1) Notwithstanding anything contained in section 49, the authorised officer may direct the sale of any goods seized under that section which is subject to speedy and natural decay and remit the sale proceeds into the Government Treasury.

(2) The authorised officer may deal with the proceeds of the sale of goods under sub-section (i) in the same manner as he might have dealt with the goods if it had not been sold.

51.  Possession and submission of certain records by owners etc., of vehicle and vessels.—The owner or other person-in-charge of a vehicle or vessel shall, while transporting any consignment of goods exceeding such quantity or value as may be prescribed under sub-section (3) of section 46, carry with him,—

(i) a tax invoice, delivery note or certificate of ownership ; and

(ii) such other documents as may be prescribed, relating to the goods under transport and containing such particulars as may be prescribed and shall submit the documents aforesaid or copies thereof to the prescribed authority, having jurisdiction over the area in which the goods are delivered, along with such return within such time as may be prescribed.

52. Forwarding agency, etc., to submit returns.—Every clearing or forwarding house or agency, transporting agency, shipping agency, shipping out agency, railway authorities, air cargo authorities or steamer agency in the State shall submit to the assessing authority of the area such returns and information as may be prescribed, of all goods cleared, forwarded, transported, or shipped by it. The assessing authority concerned shall have the power to call for and examine the books of account or other documents in the possession of such agency with a view to verify the correctness of the returns submitted and the agency shall be bound to furnish the books of account or other documents when so called for.

53.  Banks to submit returns.—Every bank, including any branch of a bank or any banking institution in the State, shall submit every month to the assessing authority of the area, a return in the prescribed form, of all bills relating to goods discounted, cleared or negotiated by or through it during the preceding month, in such manner as may be prescribed.

54.  Warehousemen and banks to furnish details.—Every warehouseman and every bank, including any branch of a bank or any banking institution in the State, shall, if so required by an officer not below the rank of an assessing authority, furnish such information, document or statement as he may consider necessary for the purpose of any proceedings under this Act.

Chapter VII

Appeals, revisions and settlement of cases

55.  Appeals to the Deputy Commissioner (Appeals).—(1) Any person aggrieved by any order issued or proceedings recorded other than those under sub-section (3), sub-section (8) or sub-section (9) of section 16, sub-section (8) of section 19, sub-section (3) of section 25, sub-section (8) or sub-section (9) of section 44, section 49, section 67, section 68, section 69 or section 70 passed by an authority empowered to do so under this Act, not being an authority above the rank of an Assistant Commissioner may, within a period of thirty days from the date on which the order was served on him, appeal against such order to the Deputy Commissioner (Appeals) :

Provided that the Deputy Commissioner (Appeals) may admit an appeal presented after the expiration of the said period if he is satisfied that the appellant had sufficient cause for not presenting the appeal within the said period :

Provided further that in the case of an order under sub-section (3) of section 22 or section 24, or section 25, no appeal shall be entertained under this sub-section unless it is accompanied by satisfactory proof of the payment of the tax or other amounts admitted by the appellant to be due or of such instalment thereof as might have become payable, as the case may be.

(2) Where an appeal lies against any order under sub–section (1), any order issued under section 66 to rectify any error in such order shall also be appealable under the said sub-section.

(3) The appeal shall be in such form and shall be verified in such manner as may be prescribed, and shall be accompanied by a fee of five hundred rupees.

(4) Notwithstanding that an appeal has been preferred under sub-section (1), the tax or other amounts shall be paid in accordance with the order against which the appeal has been preferred :

Provided that the Deputy Commissioner (Appeals) may, at his discretion, give such directions as he thinks fit in regard to the payment of the tax before the disposal of the appeal, if the appellant furnishes sufficient security to his satisfaction in such form and in such manner as may be prescribed.

(5) In disposing of an appeal, the Deputy Commissioner (Appeals) may, after giving the appellant a reasonable opportunity of being heard,—

(a) in the case of an order of assessment or penalty, either confirm, reduce, enhance or annul the assessment or the penalty or both ;

(b) set aside the assessment and direct the assessing authority to make a fresh assessment after such further enquiry as may be directed ;

(c) or pass such other orders as he may think fit ; or

(d) in the case of any other order, confirm, cancel or vary such order :

Provided that, at the hearing of any appeal against an order of the assessing authority, the assessing authority or the officer empowered by the Commissioner in this behalf shall be heard.

(6) The order of the Deputy Commissioner (Appeals) disposing of an appeal before it shall state the point for determination, the decision thereon and the reason for arriving at such decision.

(7) Where as a result of the appeal any change becomes necessary in the order appealed against, the Deputy Commissioner (Appeals) may, direct the assessing authority to amend such order accordingly and on such amendment being made, any amount paid in excess by the appellant shall be refunded to him or as the case may be the further amount of tax, if any, due from him shall be collected in accordance with the provisions of this Act, as the case may be.

56.  Powers of revision of the Deputy Commissioner suo motu.—(1) The Deputy Commissioner may, of his own motion, call for and examine any order passed or proceedings recorded under this Act by any officer or authority subordinate to him which in his opinion is prejudicial to the interest of the Revenue and may make such enquiry or cause such enquiry to be made and, subject to the provisions of this Act, may pass such order thereon as he thinks fit.

Explanation.—For the purpose of this section an order passed or proceedings recorded shall be deemed to be prejudicial to the interest of the revenue where the tax or other amount assessed or demanded is lower than what is actually due, either due to escapement of turnover or for any other reason.

(2) The Deputy Commissioner shall not pass any order under sub-section (1) if,—

(a) the time for appeal against the order has not expired ;

(b) the order has been made the subject-matter of an appeal to the Deputy Commissioner (Appeals) or the Appellate Tribunal or of a revision in the High Court ; or

(c) more than four years have expired from the year in which the order referred to therein was passed.

(3) Notwithstanding anything contained in sub-section (2), the Deputy Commissioner may pass an order under sub-section (1) on any point which has not been decided in an appeal or revision referred to in clause (b) of sub-section (2), before the expiry of a period of one year from the date of the order in such appeal or revision or before the expiry of the period of four years referred to in clause (c) of that sub-section, whichever is later.

(4) No order under this section adversely affecting a person shall be passed unless that person has had a reasonable opportunity of being heard.

57.  Power of revision of Deputy Commissioner on application.—(1) Any person objecting to an order passed or proceedings recorded under this Act for which an appeal has not been provided for in section 55 or section 60 may, within a period of thirty days from the date on which a copy of the order or proceeding was served on him in the manner prescribed, file an application for revision of such order or proceeding to the Deputy Commissioner :

Provided that the Deputy Commissioner may admit an application for revision presented after the expiration of the said period, if he is satisfied that the applicant had sufficient cause for not presenting the application within the said period.

(2) An application for revision shall be in the prescribed form and shall be verified in the prescribed manner, and be accompanied by a fee of five hundred rupees.

(3) On admitting an application for revision, the Deputy Commissioner may call for and examine the record of the order or proceeding against which the application has been preferred and may make such enquiry or cause such enquiry to be made and subject to the provisions of the Act, pass such order thereon as he thinks fit.

(4) Notwithstanding that an application has been preferred under sub-section (1), the tax, fee or other amount shall be paid in accordance with the order or proceeding against which the application has been preferred :

Provided that the Deputy Commissioner may, in his discretion, give such directions as he thinks fit in regard to the payment of such tax, fee or other amount, if the applicant furnishes sufficient security to his satisfaction, in such form and in such manner, as may be prescribed.

(5) No order under this section adversely affecting a person shall be passed unless that person has had a reasonable opportunity of being heard.

58.  Powers of revision of the Commissioner suo motu.—(1) The Commissioner may suo motu call for and examine any order passed or proceedings recorded under this Act by any officer or authority, subordinate to him other than that of the Deputy Commissioner (Appeals) which in his opinion is prejudicial to the interest of revenue and may make such enquiry or cause such enquiry to be made and subject to the provisions of this Act may pass such order thereon, as he thinks fit.

Explanation.—For the purpose of this section an order passed or proceedings recorded shall be deemed to be prejudicial to the interest of the revenue where the tax or other amount assessed or demanded is lower than what is actually due, either due to escapement of turnover or for any other reason.

(2) The Commissioner shall not pass any order under sub-section (1) if—

(a) the time for appeal against that order has not expired ;

(b) the order has been made the subject-matter of an appeal to the Deputy Commissioner (Appeals) or the Appellate Tribunal or of a revision in the High Court ; or

(c) more than four years have expired from the year in which the order referred to therein has passed.

(3) Notwithstanding anything contained in sub-section (2), the Commissioner may pass an order under sub-section (1) on any point which has not been decided in an appeal or revision referred to in clause (b) of sub-section (2), before the expiry of a period of one year from the date of the order in such appeal or revision or before the expiry of a period of four years referred in clause (c) of that sub-section, whichever is later.

(4) No order under this section adversely affecting a person shall be passed unless that person has had a reasonable opportunity of being heard.

59.  Power of revision of the Commissioner on application.—(1) Any person objecting to an order passed by the Deputy Commissioner, other than an order of the Deputy Commissioner (Appeals) under section 55 may, within a period of thirty days from the date on which a copy of the order was served on him file an application for revision of such order to the Commissioner :

Provided that the Commissioner may admit an application for revision filed after the expiry of the said period if he is satisfied that the applicant had sufficient cause for not filing the application within the said period.

(2) Such application for revision shall be in the prescribed form and shall be verified in the prescribed manner and be accompanied by a fee of seven hundred and fifty rupees.

(3) Notwithstanding that an application has been preferred under sub-section (1), the tax, fee or other amount shall be paid in accordance with the order against which the application has been preferred :

Provided that the Commissioner may in his discretion, give such directions as he thinks fit in regard to the payment of such tax, fee or other amount, if the applicant furnishes sufficient security to his satisfaction in such manner as may be prescribed.

(4) On admitting an application for revision, the Commissioner may call for and examine the record of the order against which the application has been preferred and may make such enquiry or cause such enquiry to be made and subject to the provisions of this Act pass such order thereon as he thinks fit.

(5) No order under this section adversely affecting a person shall be passed unless that person has had a reasonable opportunity of being heard.

60.  Appeal to the Appellate Tribunal.—(1) Any person objecting to an order passed by the Deputy Commissioner (Appeals) under sub-section (5) of section 55 or any officer empowered by the Government in this behalf may, within a period of sixty days from the date on which the order was served on him, in the manner prescribed, appeal against such order to the Appellate Tribunal :

Provided that the Appellate Tribunal may admit an appeal presented after the expiration of the said period if it is satisfied that the appellant had sufficient cause for not presenting the appeal within the said period.

(2) The officer authorised under sub-section (1) or the person against whom an appeal has been preferred, as the case may be, on receipt of notice that an appeal against the order of the Deputy Commissioner (Appeals) has been preferred under sub-section (1) by the other party, may, notwithstanding that he has not appealed against such order or any part thereof, file within thirty days of the receipt of the notice, a memorandum of cross objections, verified in the prescribed manner, against any part of the order of the Deputy Commissioner (Appeals) and such memorandum shall be disposed of by the Appellate Tribunal as if it were an appeal presented within the time specified in sub-section (1).

(3) The appeal or the memorandum of cross objections shall be in the prescribed form and shall be verified in the prescribed manner and, in the case of an appeal preferred by any person other than an officer empowered by the Government under sub-section (1), it shall be accompanied by a fee of one thousand rupees.

(4) In disposing of an appeal, the Appellate Tribunal may after giving the parties a reasonable opportunity of being heard either in person or by a representative,—

(a) in the case of an order of assessment or penalty,—

(i) confirm, reduce, enhance or annul the assessment or penalty or both ;

(ii) set aside the assessment and direct the assessing authority to make a fresh assessment after such further enquiry as may be directed ; or

(iii) pass such other orders as it may think fit ; or

(b) in the case of any other order, confirm, cancel or vary such order :

Provided that if the appeal involves a question of law on which the Appellate Tribunal has previously given its decision in another appeal and either a revision petition to the High Court against such decision or an appeal to the Supreme Court against the order of the High Court thereon is pending, the Appellate Tribunal may defer the hearing of the appeal before it, till such revision petition to the High Court or the appeal to the Supreme Court is disposed of.

(5) Where as a result of the appeal any change becomes necessary in the order appealed against, the Appellate Tribunal may authorise the assessing authority to amend such order accordingly and on such amendment being made any amount paid in excess by the appellant shall be refunded to him or the further amount of tax, if any, due from him shall be collected in accordance with the provisions of this Act.

(6) Notwithstanding that an appeal has been preferred under sub-section (1), the tax shall be paid in accordance with the order of assessment against which the appeal has been preferred :

Provided that the Appellate Tribunal may, in its discretion, give such directions as it thinks fit in regard to the payment of the tax before the disposal of the appeal, if the appellant furnishes sufficient security to its satisfaction in such form and in such manner as may be prescribed :

Provided further that where the Appellate Tribunal has passed an order of stay in an appeal it shall dispose of the appeal within a period of one hundred and eighty days from the date of such order :

Provided also that if such appeal is not so disposed of within the period specified in the second proviso the stay order shall stand vacated after the expiry of the said period.

(7) The Appellate Tribunal may, on the application of the appellant or the respondent review any order passed by it under sub-section (4) on the basis of the discovery of new and important facts which after the exercise of due diligence were not within the knowledge of the applicant or could not be produced by him when the order was made :

Provided that no such application shall be preferred more than once in respect of the same order.

(8) The application for review shall be preferred in the prescribed manner and within one year from the date on which a copy of the order to which the application relates was served on the applicant in the manner prescribed, and where the application is preferred by any person other than an officer empowered by the Government under sub-section (1), it shall be accompanied by a fee of rupees three hundred.

(9) Every order passed by the Appellate Tribunal under sub-section (4) or sub-section (7) shall be communicated in the manner prescribed to the appellant, the respondent, the authority on whose order the appeal was preferred, the Deputy Commissioner concerned, and the Commissioner.

61.  Filing of application for settlement of cases.—(1) Notwithstanding anything contrary contained in this Act an assessee may, at any stage of an appeal or revision pending before any authority under the Act or the High Court, make an application in such form and in such manner as may be prescribed, containing a full and true disclosure of his turnover which had not been disclosed before the assessing authority including the additional amount of tax payable on such turnover and such other particulars as may be prescribed, to the Settlement Commission to have the case settled and any such application shall be disposed of in the manner hereinafter provided :

Provided that no such application shall be made unless, the assessee has furnished the return of turnover, which he is or was required to furnish under any of the provisions of this Act :

Provided further that an application shall not be rejected under this sub-section unless an opportunity has been given to the applicant of being heard.

(2) Every application made under sub-section (1) shall be accompanied by such fees as may be prescribed.

(3) An application made under sub-section (1) shall not be allowed to be withdrawn by the applicant.

(4) On receipt of an application under sub-section (1), the Settlement Commission shall call for a report from the Deputy Commissioner and on the basis of the materials contained in such report and having regard to the nature and circumstance of the case or complexity of investigation involved therein, the Settlement Commission may, by order, allow the application to be proceeded, with or reject the application :

Provided that an application shall not be rejected under this sub-section unless an opportunity has been given to the applicant of being heard :

Provided further that the Deputy Commissioner shall furnish the report within a period of forty-five days of the receipt of communication from the Settlement Commission, and if the Deputy Commissioner fails to furnish the report within the said period, the Settlement Commission may make the order without such report.

(5) A copy of every order under sub-section (4) shall be sent to the applicant and to the Deputy Commissioner.

(6) Subject to the provisions of sub-section (7), the assessee shall, within thirty-five days of the receipt of a copy of the order under sub-section (4) allowing the applications to be proceeded with, pay the additional amount of tax or other amount payable on the turnover disclosed in the application and shall furnish proof of such payment to the Settlement Commission.

(7) Where the additional amount of tax or other amount referred to in sub-section (6) is not paid by the assessee within the time specified under that sub-section, the Settlement Commission may, at its discretion, permit the assessee to pay the amount within a period not exceeding fifteen days.

(8) Where an application is allowed to be proceeded with under sub-section (4), the Settlement Commission may call for the relevant reports from the Deputy Commissioner and after examination of such records, if the Settlement Commission is of the opinion that any further enquiry or investigation in the matter is necessary, it may direct the Deputy Commissioner to make or cause to be made such further enquiry or investigation and furnish a report on the matter covered by the application and any other matter relating to the case.

(9) After examination of the records and the report of the Deputy Commissioner received under sub-section (4) or (8) and after giving an opportunity to the applicant and to the Deputy Commissioner to be heard, either in person or through a representative duly authorised in this behalf and after examining such further evidences as may be placed before it or obtained by it, the Settlement Commission may, in accordance with the provisions of this Act, pass such order as it thinks fit on the matters covered by the application and any other matter relating to the case not covered by the application, but referred to in the report of the Deputy Commissioner under sub-section (4) or sub-section (8).

(10) Every order passed under sub-section (9) shall provide for the terms of settlement including any demand by way of tax, penalty or interest, the manner in which any sum due under the settlement shall be paid and all other matters to make the settlement effective and shall also provide that the settlement shall be void if it is subsequently found by the Settlement Commission that it has been obtained by fraud or misrepresentation of facts.

(11) Where any tax payable in pursuance of an order under sub-section (9) is not paid by the assessee within thirty-five days of the receipt of a copy of the order by him, the assessee shall be liable to pay interest at the rate of one per cent for each month or part thereof, for the first three months after the date specified for its payment ; and at the rate of two per cent for each month or part thereof, subsequent to the first three months aforesaid, on the amount remaining unpaid from the date of expiry of the period of thirty-five days.

(12) Where a settlement become void as provided under sub-section (10), the proceedings with respect to the matters covered by the settlement shall be deemed to have been revived from the stage at which the application was allowed to be proceeded with by the Settlement Commission and the authority concerned may, notwithstanding anything contained in any other provision of this Act, complete such proceedings at any time before the expiry of two years from the end of the financial year in which the settlement became void.

(13) If the matter is settled under the provisions of this section the Deputy Commissioner shall intimate the fact of such settlement to the authority specified in sub-section (1) or to the High Court as the case may be.

62.  Appeal to the High Court.—(1) Any person objecting to an order affecting him passed under section 58 or section 94 may, within a period of ninety days from the date on which a copy of the order was served on him in the manner prescribed, appeal against such order to the High Court :

Provided that the High Court may admit an appeal preferred after the period of ninety days aforesaid if it is satisfied that the appellant had sufficient cause for not preferring the appeal within the said period.

(2) The appeal shall be in the prescribed form and shall be verified in the prescribed manner and shall be accompanied by a fee of one thousand five hundred rupees.

(3) In disposing of an appeal, the High Court may, after giving the parties a reasonable opportunity of being heard either in person or by a representative,

(a) in the case of an order of assessment or penalty,—

(i) confirm, reduce, enhance or annul the assessment or penalty or both ;

(ii) set aside the assessment and direct that a fresh assessment may be made after such further enquiry as may be directed ; or

(iii) pass such other orders as it may think fit ; or

(b) in the case of any other order, confirm, cancel or vary such order.

(4) Where as a result of the appeal any change becomes necessary in the order appealed against, the High Court may authorise the Commissioner to amend such order accordingly and on such amendment being made, any amount paid in excess by the appellant shall be refunded to him or the further amount of tax, if any, due from him shall be collected in accordance with the provisions of this Act, as the case may be.

(5) Every order passed in appeal under this section shall be final.

(6) Notwithstanding that an appeal has been preferred under sub-section (1), the tax shall be paid in accordance with the order of assessment against which the appeal has been preferred :

Provided that the High Court may, in its discretion, give such directions as it thinks fit in regard to the payment of the tax before the disposal of the appeal, if the appellant furnishes sufficient security to its satisfaction in such form and in such manner as may be prescribed.

(7) The High Court may, on the application of the appellant or the Commissioner, review any order passed by it under sub-section (3) on the basis of the discovery of new and important facts which after the exercise of due diligence were not within the knowledge of the applicant or could not be produced by the applicant, when the order was made.

(8) The application for review shall be preferred in the prescribed manner and within one year from the date on which a copy of the order to which the application relates was served on the applicant in the manner prescribed and shall, where it is preferred by any person other than the Commissioner, be accompanied by a fee of three hundred rupees.

(9) The High Court may, at its discretion, award the cost in an appeal under sub-section (1) or in a review under sub-section (7).

63.  Revision by the High Court.—(1) Any officer empowered by the Government in this behalf or any other person objecting to an order passed by Appellate Tribunal under sub-section (4) or sub-section (7) of section 60, or any person objecting to an order passed by the Commissioner under sub-section (4) of section 59 may, within ninety days from the date on which a copy of such order is served on him in the manner prescribed, prefer a petition to the High Court on the ground that the Appellate Tribunal or the Commissioner has either decided erroneously or failed to decide any question of law :

Provided that the High Court may admit a petition preferred after the period of ninety days aforesaid if it is satisfied that the petitioner had sufficient cause for not preferring the petition within the said period.

(2) The petition shall be in the prescribed form and shall be verified in the prescribed manner and where it is preferred by a person other than an officer empowered by the Government under sub-section (1) it shall be accompanied by a fee of one thousand five hundred rupees.

(3) If the High Court, on pursuing the petition, considers that there is no sufficient ground for interfering, it may dismiss the petition summarily :

Provided that no petition shall be dismissed unless the petitioner has had a reasonable opportunity of being heard.

(4) If the High Court does not dismiss the petition summarily, it shall, after giving both the parties to the petition a reasonable opportunity of being heard, determine the question of law raised and either reverse, affirm or amend the order against which the petition was preferred or remit the matter to the Appellate Tribunal with the opinion of the High Court on the question of law raised, or pass such order in relation to the matter as the High Court thinks fit.

(5) Where the High Court remits the matter under sub-section (4) with its opinion on the question of law raised, the Appellate Tribunal shall amend the order passed by it in conformity with such opinion.

(6) Before passing an order under sub-section (4) the High Court may, if it considers it necessary so to do, remit the petition to the Appellate Tribunal, and direct it to return the petition with its finding on any specific question or issue.

(7) Notwithstanding that a petition has been preferred under sub-section (1), the tax shall be paid in accordance with the order against which the revision has been preferred :

Provided that the High Court may, in its discretion, give such directions as it thinks fit in regard to the payment of the tax before the disposal of the petition, if the petitioner furnishes sufficient security to its satisfaction in such form and in such manner as may be prescribed.

(8) The High Court may, on the application of any party to a revision under this section, review any order passed by it on the basis of the discovery of new and important facts which after the exercise of due diligence were not within the knowledge of the applicant or could not be produced by him when the order was made.

(9) The application for review shall be preferred in the prescribed manner and within one year from the date on which a copy of the order to which the application relates was served on the applicant in the manner prescribed and, where it is preferred by a person other than an officer empowered by the Government under sub-section (1), it shall be accompanied by a fee of one thousand five hundred rupees.

(10) If, as a result of the revision or review, any change becomes necessary in any assessment, the High Court may direct the assessing authority to amend the assessment accordingly, and on such amendment being made any amount paid in excess by any person shall be refunded to him, or the further amount of tax due from him shall be collected in accordance with the provisions of this Act, as the case may be.

(11) The High Court may at its discretion, award the cost in a revision under sub-section (1) or in a review under sub-section (8).

64.  Appeals, petitions and applications to the High Court to be heard by a Bench of not less than two judges.—Every appeal preferred to the High Court under section 62, every petition under section 63 and every application under the said sections shall be heard by a Bench of not less than two judges, and in respect of such appeal, petition or application, the provisions of section 98 of the Code of Civil Procedure, 1908 (Central Act 5 of 1908) shall, so far as may be, apply.

65.  Fee for interlocutory petitions.—Every interlocutory application prescribed by the Government and filed before the authorities under this Act specified below, other than those filed by officers empowered by Government, shall be accompanied by the following fees, namely :—

(a) Before the Deputy Commissioner (Appeals)  :

      or the Deputy Commissioner

(b) Before the Commissioner or the Appellate

      Tribunal  :

66.  Power to rectify any error apparent on the face of the record.—(1) Any authority including Appellate Tribunal and Settlement Commission issuing any order or proceedings under this Act may, on application or otherwise, at any time within four years from the year in which the order is passed by it, rectify any error apparent on the face of the record :

Provided that no such rectification, which has the effect of enhancing an assessment or any penalty, shall be made unless such authority has given notice to the person affected and has allowed him a reasonable opportunity of being heard.

(2) Where such rectification has the effect of reducing an assessment or penalty, the assessing authority shall make any refund to the person entitled thereto.

(3) Where any such rectification has the effect of enhancing an assessment or penalty, the assessing authority shall give the dealer or other person, a revised notice of assessment or penalty and thereupon the provisions of this Act and the Rules made thereunder shall apply as if such notice has been given in the first instance.

Explanation.— The liability to pay the tax or other amount shall arise only from the date specified in the revised notice.

Chapter VIII

Offences and penalties

67.  Imposition of penalty by authorities.—(1) Notwithstanding anything contained in section 71 if any authority empowered under this Act is satisfied that any person,—

(a) being a person required to register himself as a dealer under this Act, did not get himself registered ; or

(b) has failed to keep true and complete accounts ; or

(c) has failed to submit any return as required by the provisions of this Act or the Rules made thereunder ; or

(d) has submitted an untrue or incorrect return ; or

(e) has made any bogus claim of input tax credit or refund ; or

(f) has continued the business during the period of suspension of registration ; or

(g) has failed to return the unused statutory Forms and Declarations under this Act after the cancellation or suspension of the registration ; or

(h) has not stopped any vehicle or vessel when required to do so ; or

(i) has failed to comply with all or any of the terms of any notice or summons issued to him by or under the provisions of this Act or the Rules made thereunder ; or

(j) has acted in contravention of any of the provisions of this Act or any Rule made thereunder, for the contravention of which no express provision for payment of penalty or for punishment is made by this Act ; or

(k) has abetted the commission of the above offences, or

(l) has abetted or induced in any manner another person to make and deliver any return or an account or a statement or declaration under this Act or Rules made thereunder, which is false and which he either knows to be false or does not believe to be true,

such authority may direct that such person shall pay, by way of penalty, an amount not exceeding twice the amount of tax or other amount evaded or sought to be evaded where it is practicable to quantify the evasion or an amount not exceeding twenty-five thousand rupees in any other case :

Provided that the authority empowered under this section shall dispose of the case within one year from the date of detection of offence mentioned under this section except where the extension of time is granted by the Deputy Commissioner.

(2) Notwithstanding anything contained in sub-section (1), where on completion of an assessment in relation to a dealer under sections 22, 23, 24 or 25, it is found that the tax so determined on such assessment was not paid by the dealer, the assessing authority may direct such dealer to pay, in addition to the tax so determined, a penalty, in the case of a dealer who has made part payment, at thrice the balance amount of tax so determined, and in the case of a dealer who has not paid any amount, thrice the complete amount so assessed.

Explanation.—The burden of proving that any person is not liable to the penalty under sub-section (1) shall be on such person.

(3) No order under sub-section (1) or (2) shall be passed unless the person on whom the penalty is proposed to be imposed is given an opportunity of being heard in the matter.

68.  Penalty for default of payment of tax.—(1) Where an assessee makes default in payment of tax or any other amount due under this Act within the time specified in the notice of demand, he shall, in addition to the tax or other amount in arrears and the amount of interest payable under sub-section (5) of section 31, be liable to pay, by way of penalty such amount and in the case of a continuing default, amount at such rate for every day during which the default continues, as the assessing authority may direct, so, however, that the total amount of penalty shall not exceed the amount of tax or other amount in arrears.

(2) No penalty under sub-section (1) shall be imposed without giving the assessee a reasonable opportunity of being heard.

69.  Penalty for transport of goods without records.—(1) If any officer empowered under sub-section (1) of section 47 finds on inspection of any vehicle or vessel that any transporting agency or contract carriage transporting any goods without the documents required under sub-section (3) of section 46, such officer may, without prejudice to any action that may be taken under section 47, impose by an order in writing on such transporting agency, or contract carriage, or the owner of the vehicle a penalty equal to twice the amount of the tax due on such goods subject to a minimum of ten thousand rupees.

(2) Where a transporting agency or contract carriage or the owner of the vehicle or vessel is subsequently found guilty of the offence under sub-section (1) for more than one occasion, the officer referred to in that sub-section may, in addition to the penalty that may be imposed under the said sub-section, by an order in writing detain the vehicle or vessel for a period of thirty days from the date of inspection of the vehicle or vessel, whether the vehicle or vessel used for the Commission of the offence on subsequent occasion is the same or not.

(3) The vehicle or vessel detained under sub-section (2) shall be kept in safe custody by the officer detaining the vehicle on a place notified by the Government.

(4) No order under sub-section (1) or sub-section (2) shall be passed unless such person affected by such order has been given an opportunity of being heard.

(5) The vehicle or vessel detained under this section shall, after the expiry of thirty days from the date of detention, to release to the person from whom it was detained.

Explanation.—Transporting agency for the purposes of this section shall include parcel agency.

70.  Penalty for prevention or obstruction of survey, inspection etc.—Any person who,—

(a) prevents or obstructs survey, inspection, entry, search, seizure or checking of invoices by an officer empowered under this Act, or

(b) prevents or obstructs inspection of any vehicle or vessel or goods transported, otherwise or seizure of goods by an officer-in-charge of a check-post or barrier or any officer empowered under this Act, or

(c) prevents or obstructs any other act of an officer which he is empowered to perform under this Act,

shall, pay by way of penalty an amount not exceeding fifty thousand rupees, as may be imposed by an officer not below the rank of an assessing authority :

Provided that no order under this shall be passed unless the person affected by such order is given an opportunity of being heard.

71.  Punishment for submitting untrue return etc.—Any person who,—

(a) knowingly submits an untrue return or fails to submit return as required by the provisions of this Act or the Rules made thereunder, or

(b) fails to keep true and complete accounts, or

(c) dishonestly objects to or fails to comply with the terms of a notice issued to him under sub-section (1) of section 35, or

(d) being a person obliged to register himself as a dealer under this Act does not get himself registered, or

(e) has made any bogus claim of input tax credit or refund, or

(f) has continued the business during the period of suspension of registration, or

(g) has not stopped any vehicle or vessel when required to do so, or

(h) prevents or obstructs survey, inspection, entry, search, checking of tax invoice or seizure by an officer empowered under this Act, or

(i) prevents or obstructs inspection of any vehicle or vessel or goods transported, otherwise or seizure of goods by an officer-in-charge of a check-post or barrier or any officer empowered under this Act, or

(j) fraudulently evades the payment of tax, fee or other amount due from him under this Act, or

(k) carries on business as a dealer without furnishing the security demanded under subsection (1) of section 17,

(l) wilfully acts in contravention of any of the provisions of this Act or the Rules made thereunder, for the contravention of which no express provision for punishment is made by this Act,

shall, on conviction by a Magistrate be punished with simple imprisonment for a period which shall not be less than six months but which may extend to one year and shall also be liable to fine not less than the tax or other amounts due but not exceeding fifty thousand rupees.

72. Penalty for illegal collection of tax.—(1) If any person collects any sum by way of tax or purporting to be by way of tax in contravention of sub-section (2) or sub-section (3) or sub-section (4) of section 30, he shall, in addition to the forfeiture of such illegal collection, be liable to pay penalty not exceeding five thousand rupees :

Provided that no penalty or forfeiture shall be ordered under this sub-section if the assessing authority is satisfied that the sum so collected has been returned to the person from whom it was collected.

(2) No penalty or forfeiture shall be ordered under this sub-section against any person unless such person is given an opportunity of being heard.

(3) Where any sum is forfeited to the Government under sub-section (1), any person from whom the amount was collected in contravention of the provisions of sub-section (2) or sub-section (3) or sub-section (4) of section 30 may apply to the assessing authority for reimbursement of such sum and the amount shall be reimbursed to such person in the prescribed manner.

(4) No prosecution for an offence under this Act shall be instituted in respect of the same facts on which a penalty has been imposed or forfeiture has been ordered under this section.

73.  Punishment for abetment.—Any person who,

(a) abets or induces in any manner another person to make and deliver any return or an account or a statement or declaration under this Act or Rules made thereunder, which is false and which he either knows to be false or does not believe to be true, or

(b) abets or induces in any manner another person or persons to prevent or obstruct survey, inspection, entry, search, checking of tax invoice or seizure by an officer empowered under this Act, or

(c) abets to act in contravention of any of the provisions of this Act or the Rules made thereunder,

shall, on conviction by a Magistrate be punished with simple imprisonment for a period which shall not be less than three months but which may extend to six months and shall also be liable to fine not exceeding fifty thousand rupees.

74.  Composition of offences.—(1) The assessing authority or other officer or authority authorised by the Government in this behalf may accept from any person who has committed or is reasonably suspected of having committed an offence against this Act, specified in clauses (a) to (e), (g) and (j) to (l) of section 71, by way of compounding of such offence,—

(a) where the offence consists of the evasion of any tax payable under this Act, in addition to the tax so payable a sum of money equal to the amount of tax so payable subject to a minimum of rupees five hundred and maximum of rupees two lakhs ; and

(b) in other cases, a sum of money not exceeding ten thousand rupees :

Provided that the Commissioner may by order authorise any officer to compound the offence under this section on payment of a reduced amount.

(2) On payment of such amount under sub-section (1), no further proceedings shall be taken against such person, in respect of that offence.

75.  Offences by companies.—(1) If the person committing an offence under this Act is a company, the company as well as every person-in-charge of, and responsible to, the company for the conduct of its business at the time of the commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly :

Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any neglect on the part of, any director, manager, managing agent or any other officer of the company, such director, manager, managing agent or any other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation.—For the purposes of this section,—

(a) “company” means anybody corporate and includes a firm or other association of individuals ; and

(b) “director” in relation to a firm, means a partner in the firm.

Chapter IX

Miscellaneous

76.  Courts not to set aside or modify assessments except as provided in this Act.—No suit or other proceeding shall, except as expressly provided in this Act, be instituted in any court to set aside or modify any assessment made under this Act or any proceedings under this Act for the recovery of any tax or other amount due under this Act or to stay any such proceedings or recovery.

77.  Bar against attachment in certain cases.—Notwithstanding anything contained in any other law in force or in any judgment, decree or order of any court, no court or any other authority shall pass any order attaching any amount due to Government from any person under the provisions of this Act.

78.  Assessment etc., not to be questioned in prosecution.—(1) Any order of assessment made under this Act shall be conclusive evidence in any prosecution or other proceeding.

(2) The validity of the assessment of any tax, or of the levy of any fee or other amount, made under this Act, or the liability of any person to pay any tax, fee or other amount so assessed or levied, shall not be questioned in any criminal court in any prosecution or other proceeding, whether under this Act or otherwise.

79.  Bar of certain proceedings.—(1) No suit, prosecution or other proceeding shall lie against any officer or servant of the Government for any Act done or purporting to be done under this Act, without the previous sanction of the Government.

(2) No officer or servant of the Government shall be liable in respect of any such act in any civil or criminal proceeding, if the act was done in good faith in the course of the execution of duties or the discharge of functions imposed by or under this Act.

80.  Limitation for certain suits and prosecutions.—No suit shall be instituted against the Government and no suit, prosecutions or other proceeding shall be instituted against any officer or servant of the Government in respect of any act done or purporting to be done under this Act, unless the suit, prosecution or other proceeding is instituted within six months from the date of the act complained of :

Provided that, in computing the period of limitation under this section, the time taken for obtaining sanction under the sub-section (1) of section 79 shall be excluded.

81.  Power to summon witnesses and cause production of documents.—An assessing authority or an appellate or revisional authority (including the Appellate Tribunal) shall, for the purposes of this Act, have all the powers conferred on a court by the Code of Civil Procedure, 1908 (Central Act 5 of 1908), in respect of the following matters, namely :—

(a) summoning and enforcing the attendance of any person and examining him on oath or affirmation ; and

(b) compelling the production of any document.

82. Notice to obtain information.—(1) Any officer, not below the rank of an assessing authority, may by notice in writing, require any person, whether or not liable to pay tax under the Act,—

(a) to furnish any information that may be required by the notice, or 

(b) to attend at the time and place designated in the notice, for the purpose of being examined on oath by such officer,concerning the tax affairs of that person or any other person and for that purpose such officer may require the person examined to produce any book, record or information stored in computer in the control of that person.

83.  Admissibility of micro films, facsimile copies of documents and computer print out as documents and as evidence.—(1) Notwithstanding anything contained in any other law for the time being in force,—

(a) a micro film of a document or the reproduction of the image or images embodied in such micro film (whether enlarged or not) ; or

(b) a facsimile copy of a document ; or

(c) a statement contained in a document and included in a printed material produced by a computer (hereinafter referred to as “a computer print out”), if the conditions mentioned in sub-section (2) and the other provisions contained in this section are satisfied in relation to the statement and the computer in question,

shall also be deemed to be a document for the purposes of this Act and the Rules made thereunder and shall be admissible in any proceedings thereunder, without further proof or production of the original, as evidence of any contents of the original or of any fact stated therein of which direct evidence would be admissible.

(2) The conditions referred to in sub-section (1) in respect of a computer print out shall be the following, namely :—

(a) the computer print out containing the statement was produced by the computer during the period over which the computer was used regularly to store or process information for the purposes of any activities regularly carried on over that period by the person having lawful control over the use of the computer ;

(b) during the said period, there was regularly supplied to the computer in the ordinary course of the said activities, information of the kind contained in the statement or of the kind from which the information so contained is derived ;

(c) throughout the material part of the said period, the computer was operating properly or, if not, then any respect in which it was not operating properly or was out of operation during that part of that period was not such as to affect the production of the document or the accuracy of the contents ; and

(d) the information contained in the statement reproduces or is derived from information supplied to the computer in the ordinary course of the said activities.

(3) Where, over any period, the function of storing or processing information for the purposes of any activities regularly carried on over that period as mentioned in clause (a) of sub-section (2) was regularly performed by computers, whether—

(a) by a combination of computers operating over that period ; or

(b) by different computers operating in succession over that period ; or

(c) by different combinations of computers operating in succession over that period ; or

(d) in any other manner involving the successive operation over that period, in whatever order, of one or more computers and one or more combinations of computers,

all the computers used for that purpose during that period shall be treated for the purposes of this section as constituting a single computer ; and references in this section to a computer shall be construed accordingly.

(4) In any proceedings under this Act and the rules made thereunder, where it is desired to give a statement in evidence by virtue of this section, a certificate doing any of the following things, that is to say,—

(a) identifying the document containing the statement and describing the manner in which it was produced ;

(b) giving such particulars of any device involved in the production of that document as may be appropriate for the purpose of showing that the document was produced by a computer ;

(c) dealing with any of the matters to which the conditions mentioned in sub-section (2) relate,

and purporting to be signed by a person occupying a responsible official position in relation to the operation of the relevant device or the management of the relevant activities (whichever is appropriate) shall be evidence of any matter stated in the certificate ; and for the purposes of this sub-section it shall be sufficient for a matter to be stated to the best of the knowledge and belief of the person stating it.

(5) For the purposes of this section,—

(a) information shall be taken to be supplied to a computer if it is supplied thereto in any appropriate form and, whether it is so supplied directly or (with or without human intervention) by means of any appropriate equipment ;

(b) whether in the course of activities carried on by any official, information is supplied with a view to its being, stored or processed for the purposes of those activities by a computer operated otherwise than in the course of those activities, that information, if duly supplied to that computer, shall be taken to be supplied to it in the course of those activities ;

(c) a document shall be taken to have been produced by a computer whether it was produced by it directly or (with or without human intervention) by means of any appropriate equipment.

Explanation.—For the purposes of this section,—

(a) “computer” means any device that receives, stores and processes data, applying stipulated processes to the information and supplying results of these processes ; and

(b) any reference to information being derived from other information shall be a reference to its being, derived therefrom by calculation, comparison or any other process.

84.  Presumption as to documents in certain cases.—Where any document,—

(i) is produced by any person or has been seized from the custody or control of any person, in either case, under this Act or under any other law, or

(ii) has been received from any place within or outside the State in the course of investigation of any offence alleged to have been committed by any person under this Act,

and such document is tendered by the prosecution in evidence against him or any other person who is tried jointly with him, the court shall,—

(a) presume, unless the contrary is proved, that the signature and every other part of such document which purports to be in the handwriting of any particular person or which the court may reasonably assume to have been signed by, or to be in the handwriting of, any particular person, is in that person’s handwriting and in the case of a document executed or attested, that it was executed or attested by the person by whom it purports to have been so executed or attested ;

(b) admit the document in evidence, notwithstanding that it is not duly stamped, if such document is otherwise admissible in evidence ;

(c) in a case falling under clause (i) also presume, unless the contrary is proved, the truth of the contents of such document.

85.  Prohibition of disclosure of particulars produced before commercial tax authorities.—(1) All particulars contained in any statement made, return furnished or accounts, registers or documents produced under the provisions of this Act or in the evidence given or affidavit or deposition made in the course of any proceeding under this Act or in any record of any proceeding relating to the recovery of a demand, prepared for the purposes of this Act, shall be treated as confidential and shall not be disclosed.

(2) Nothing contained in sub-section (1) shall apply to the disclosure of any such particulars,—

(i) to any officer of the Commercial Taxes Department of the State ;

(ii) for the purpose of prosecution under the Indian Penal Code (Central Act 45 of 1860), or under this Act in respect of any such statement, return, accounts, registers, documents, evidence affidavit or deposition ;

(iii) to any person enforcing the provisions of this Act where it is necessary to disclose the same to him for the purposes of this Act ;

(iv) occasioned by the lawful employment under this Act of any process for the recovery of any demand ;

(v) to a civil court in any suit to which the Government are party and which relates to any matter arising out of any proceeding under this Act ;

(vi) occasioned by the lawful exercise by a public servant of his powers under the Kerala Stamp Act, 1959 (Act 17 of 1959), or the Indian Stamp Act, 1899 (Central Act 2 of 1899), to impound an insufficiently stamped document ;

(vii) to an officer of the Government of India, or the Government of any State or Union Territory in India, if an agreement for disclosure on a reciprocal basis has been entered into between the Government and the Government of India or the Government of the State or Union Territory, as the case may be ;

(viii) to the Director of Statistics or any officer serving under him and authorised by him in this behalf, as may be necessary for conducting statistical survey ;

(ix) to the Director of the Centre for Taxation Studies or any person authorised by him in this behalf, as may be necessary for conducting any research or other studies ;

(x) to an officer of any Department of the Central Government or the Government of Kerala after obtaining,—

(a) the permission of the Deputy Commissioner of the district, where such particulars are to be furnished by an officer subordinate to the Deputy Commissioner ; and

(b) the permission of the Commissioner, where such particulars are to be furnished by an Assistant Commissioner or by a Deputy Commissioner (Appeals) or by a Deputy Commissioner :

Provided that such particulars shall be furnished under clause (x) only in exceptional cases and that any officer obtaining such particulars shall keep them as confidential and use them only in the lawful exercise of the powers conferred by or under any enactment.

86.  Persons entitled to appear before authority.—(1) Any person who is entitled or required to appear before any authority other than the High Court in connection with any proceedings under this Act may be represented before such authority,—

(a) by his relative or a person employed by him, if such relative or person is duly authorised by him in writing in this behalf ; or

(b) by a legal practitioner ; or

(c) by a chartered accountant or a cost accountant duly authorised by him in writing in this behalf ; or

(d) by a sales tax practitioner possessing the prescribed qualifications and duly authorised by him in writing in this behalf.

Explanation.—For the purpose of this sub-section the expression “a person employed by him” shall mean a person who is a full time employee under the person on whose behalf he is appearing.

(2) The authorisation referred to in sub-section (1) shall be in such form and accompanied by such fee as may be prescribed.

87.  Rounding off of turnover, tax etc.—(1) The amount of taxable turnover computed in accordance with the provisions of this Act shall be rounded off to the nearest multiple of ten rupees and for this purpose any part of a rupee consisting of paise shall be ignored and thereafter if such amount is not a multiple of ten, then, if the last figure in that amount is five or more, the amount shall be increased to the next higher amount which is a multiple of ten, and if the last figure is less than five, the amount shall be reduced to the next lower amount which is a multiple of ten, and the amount so rounded off shall be deemed to be the taxable turnover of the dealer for the purposes of this Act.

(2) The amount of tax or other amount due under this Act shall be rounded off to the nearest rupee and for this purpose, where such amount contains a part of a rupee consisting of paise, then, if such part is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise, it shall be ignored.

88.  Service of notice.—Any notice required to be served on, or given to, any person under this Act or the Rules made thereunder shall be deemed to be duly served or given,—

(a) if the notice is addressed to that person and is given or tendered to him ; or

(b) where that person cannot be found, if it is affixed on some conspicuous part of his last known place of residence or business or is tendered to some adult member of his family ; or

(c) if it is sent by registered post or by courier service to that person at his last known place of residence or business ; or

(d) by sending by FAX, if the FAX Number is known ; or

(e) by sending it by e-mail, if the e-mail address is given by the person ; or

(f) if none of the modes aforesaid is practicable, by affixing it in some conspicuous place at his last known place of business or residence or by publication in a newspaper.

89.  Refunds.—(1) When an assessing authority finds, on completion of annual assessment, that a dealer has paid tax in excess of what is due from him, it shall refund the excess to the dealer.

(2) When the assessing authority receives an order from any appellate or revisional authority to make a refund of tax or penalty paid by a dealer it shall effect the refund.

(3) Notwithstanding anything contained in sub-sections (1) and (2), the assessing authority shall have power to adjust the amount due to be refunded under sub-section (1) or sub-section (2), towards the recovery of any amount due, on the date of adjustment, from the dealer.

(4) In case refund under sub-section (1) or sub-section (2) or adjustment under sub-section (3) is not made within ninety days of the date of completion of assessment or, as the case may be, within ninety days of the date of receipt of the order in appeal or revision or the date of expiry of the time for preferring appeal or revision, the dealer shall be entitled to claim interest at the rate of ten per cent per annum on the amount due to him from the date of expiry of the said period up to the date of payment or adjustment.

90.  Power to withhold refund in certain cases.—(1) Where an order giving rise to refund is the subject-matter of appeal or any other proceedings under the Act and the assessing authority is of the opinion that the grant of refund is likely to prejudice the public revenue, it may, for good and sufficient reasons to be recorded in writing withhold the refund until such time as it deems proper.

(2) Where a refund is withheld and the matter is finally settled in favour of a dealer, a simple interest of six per cent per annum shall be paid for the period commencing from the first day of the order determined, in favour of the dealer and ending the date on which the refund is made, where the assessing authority fails to make the refund within ninety days from the date of receipt of such order by it.

91.  Appropriation of payment.—Where any tax or any other amount due or demanded under the Act is paid by any dealer or other person, the payments so made shall be appropriated first towards interest accrued on such tax or other amount under sub-section (5) of section 31 on such date of payment and the balance available shall be appropriated towards principal outstanding.

92.  Power to make rules.—(1) The Government may, by notification in the Gazette, make rules to carry out the purposes of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for,—

(a) all matters expressly required or allowed by this Act to be prescribed ;

(b) determining the total turnover, taxable turnover or turnover of a dealer for the purposes of this Act ;

(c) the assessment to tax under this Act of business which is discontinued or the ownership of which has changed ;

(d) the assessment to tax under this Act of business owned by minors and other incapacitated persons or by persons residing outside the State ;

(e) the assessment of a business owned by any person whose estate or any portion of whose estate is under the control of the Court of Wards, the Administrator General, the Official Trustee, or any Receiver or Manager appointed by or under any order of a court ;

(f) the administration of the notified areas and the barriers erected and the check-posts set up under this Act and the regulation of the work therein ;

(g) the disposal of goods confiscated under this Act and the procedure for dealing with the proceeds thereof ;

(h) requiring the submission of returns ;

(i) the form in which and the particulars to be contained in any declaration to be given under this Act, the authority from whom, the conditions subject to which and the fees subject to payment of which such form of declaration may be obtained, the manner in which such form shall be kept in custody and records relating thereto maintained, the manner in which any such form may be used and any such declaration may be furnished ;

(j) the duties and powers of officers appointed for the purpose of enforcing the provisions of this Act ;

(k) the term of office, and conditions of service of the members of the Appellate Tribunal and the Settlement Commission ;

(l) the manner in which and the extent to which, tax paid may be refunded ;

(m) the issue of bills or cash memoranda, the class or classes of dealers who should maintain counterfoils for the same and the particulars to be shown in and the manner of maintenance of such counterfoils and the time for which they should be preserved ;

(n) the maintenance of purchase bills or accounts of purchases and sales by dealers and the time for which they should be preserved ;

(o) the issue of delivery notes or way-bills in respect of goods delivered or transferred to retail dealers in pursuance of sales effected to them, the form and manner of their issue and the time for which they should be preserved ;

(p) the extent of liability of commission agent, broker, del credare agent, auctioneer or any other mercantile agent, who carries on the business of buying, selling, supplying or distributing goods on behalf of any principal ;

(q) generally regulating the procedure to be followed and the forms to be adopted in proceedings under this Act ;

(r) any other matter for which there is no provision or on sufficient provision in this Act and for which provision is, in the opinion of the Government necessary for giving effect to the purposes of this Act.

(3) Every rule made under this Act shall be laid, as soon as may be, after it is made before the Legislative Assembly while it is in session for a total period of fourteen days which may be comprised in one session or in two successive sessions and if before the expiry of the session in which it is so laid or the session immediately following, the Legislative Assembly makes any modification in the rules or decides that this rule should not be made, the rule 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 without prejudice to the validity of anything previously done under that Rules.

93.  Power to amend Schedules.—(1) The Government may, by notification in the Gazette add, omit or amend any entry in any of the Schedule to this Act, but not so as to enhance the rate of tax in any case.

(2) Where a notification has been issued under sub-section (1), there shall, unless the notification is in the meantime rescinded, be introduced in the Legislative Assembly, as soon as may be, but in any case during the next session of the Assembly following the date of the issue of the notification a Bill on behalf of the Government, to give effect to the addition, omission or amendment of the entries in the Schedules specified in the notification, and the notification, shall cease to have effect when such Bill is passed into a law, whether with or without modifications, but, without prejudice to the validity of anything previously done thereunder :

Provided that, if a notification under sub-section (1) is issued when the Legislative Assembly is in session, such a Bill shall be introduced in the Legislative Assembly during that session itself :

Provided further that where for any reason a Bill as aforesaid could not be passed into a law within six months from the date of its introduction in the Legislative Assembly, the notification shall, without prejudice to anything previously done thereunder cease to have effect on the expiration of the said period of six months.

(3) All references made in this Act to any Schedule shall be construed as references to that Schedule as for the time being amended in exercise of the powers conferred by this section.

94.  Power of Commissioner to issue clarification.—(1) If any dispute arises, otherwise than in a proceedings before any appellate or revisional authority or in any court or Tribunal, as to whether, for the purpose of this Act,—

(a) any person is a dealer ; or

(b) any transaction is a sale ; or

(c) any particular dealer is required to be registered ; or

(d) any tax is payable in respect of any sale or purchase, or if tax is payable, the point and the rate thereof ; or

(e) any activity carried out in any goods amounts to or results in the manufacture of goods ;

such dispute shall be decided by the Commissioner on application by a dealer or any other person.

(2) The Commissioner shall decide the question after giving the parties to the dispute a reasonable opportunity to put forward their case and produce evidence and after considering such evidence and hearing the parties.

(3) Every application by a dealer or any other person other than an officer acting on behalf of the Government under sub-section (1) shall be in such form as may be prescribed and shall be accompanied by a fee of five hundred rupees.

(4) Where any question arises from any order already passed or any proceedings recorded under this Act, or any earlier law no such question shall be entertained for determination under sub-section (1).

(5) Every order issued by the Commissioner under sub-section (1) shall, subject to the provisions of section 62, be final and binding on the applicant and all authorities subordinate to the Commissioner including Deputy Commissioner (Appeals) :

Provided that the decision of the Commissioner shall not affect the liabilities of any person under this Act as respects any sale or purchase effected prior to such determination.

95.  Change of an incumbent of an office.—Whenever in respect of any proceedings under this Act, any prescribed authority ceases to exercise jurisdiction and is succeeded by another who has and exercised jurisdiction, the authority or officer so succeeding may continue the proceeding from the stage at which the proceeding was left by his predecessor :

Provided that before proceeding under this section the authority shall give the person affected thereby an opportunity of being heard.

96.  Time-limit for disposal of appeal or revision.—Every appeal or revision filed under the provisions of this Act, shall be disposed of within one year from the date of filing of such appeal or revision as the case may be :

Provided that the period during which the proceedings are stayed by any competent authority shall be excluded for the purpose of computing the period of one year.

97.  Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of this Act, the Government may, as occasion may require, by order, do anything which appears to them necessary for the purpose of removing the difficulty.

(2) All orders made under sub-section (1) shall, as soon as may be after they are made, be laid before the Legislative Assembly for a period of not less than fourteen days and shall be subject to such modifications as the Legislative Assembly may make during the session in which they are so laid or the session immediately following.

98. Repeal and saving.—(1) The Kerala General Sales Tax Act, 1963 (15 of 1963) is hereby repealed :

Provided that such repeal shall not affect the previous operation 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, notification, notice, order, rule, form, regulation, certificate, licence or permit, in the exercise of any power conferred by or under the said Act, shall be deemed to have 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 recovered as if they had accrued under this Act and any reference in the said Act to an officer, authority, Tribunal or Court shall be construed as reference to the corresponding Officer, authority, Tribunal or Court appointed or constituted under this Act, and if any doubt arises as to who is such corresponding officer, authority, Tribunal or Court, the decision of the Government thereon shall be final :

Provided further that in respect of industrial undertakings claiming exemption or deferment under the Industrial Policy of the State under any notification issued under the said Act, the rights accruing to them for any period subsequent to the date of commencement of this Act shall be governed by the provisions of section 32.

(2) Notwithstanding anything contained in sub-section (1), any application, appeal, revision or other proceeding made or preferred to any officer 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 officer or authority who would have had jurisdiction to entertain such application, appeal, revision or other proceeding under this Act as if it had been in force on the date on which such application, appeal, revision or other proceeding was made or preferred.

(3) Nothing contained in sub-section (1) shall affect the right to initiate and complete any proceedings pending at the commencement of this Act regarding the assessment, levy, collection and recovery of the tax chargeable under the said Act including that of escaped turnover or affect the liability of any person to pay any sum due from him or any existing right of refund under the said Act.

(4) Notwithstanding such repeal of the Kerala General Sales Tax Act, 1963 (15 of 1963), any proceedings pending before any authority under the said Act, or High Court at the commencement of this Act, shall be continued and finally decided or determined under the provisions of that Act as if it had not been repealed.

(5) Notwithstanding such repeal of the Kerala General Sales Tax Act, 1963 (15 of 1963) Government may permit the use of the registration certificates issued under the provisions of the said Act and also of such forms issued under the rules made under the said Act till such time, as may be notified by Government.

(6) Any arrears of tax or other amount pending and any recovery proceedings initiated or continued shall be continued as if the levy, collection and recovery are made or is continuing under the provisions of this Act and provisions of this Act relating to penalty and interest shall apply to such arrears of tax, or other amount which are in arrears at the commencement of this Act.

First Schedule

Goods exempted from tax under section 6

Sl.   Sub-                   Description of goods               HSN Code

No. entry

(1)  (2)                                (3)                               (4)

1              Agricultural implements manually operated or animal driven

2              Aids and implements used by handicapped persons

3              Aquatic feed, Poultry feed and Cattle feed including grass, hay and straw

4              Betel leaves

5              Books, periodicals and journals

6              Cart driven by animals

7              Charka, ambar charka, handlooms and handloom fabrics and Gandhi Topi

8              Charcoal

9              Coarse grains other than rice and wheat

10             Condoms and contraceptives

11             Cotton and silk yarn in hank

12             Curd, Lassi, butter milk and separated milk

13             Earthen pot

14             Electrical energy

15             Firewood

16             Fresh milk and pasteurised milk

17             Fish net and fish net fabrics

18             Fresh plants, saplings and fresh flowers

19             Fresh vegetables and fruits

20             Garlic and Green Ginger

21             Glass bangles

22             Handmade safety matches

23             Human blood and blood plasma

24             Indigenous handmade musical instruments

25             Kumkum, bindi, alta and sindur

26             Meat, fish, prawn and other aquatic products when not cured or frozen, eggs and livestock other than poultry and animal hair

27             National flag

28             Non-judicial stamp paper sold by Government Treasury, Postal items like envelope, post card etc., sold by Government, rupee note when sold to the Reserve Bank of India and cheques, loose or in book form

29             Organic manure

30             Paddy

31             Prasadam by Religious institutions

32             Raw wool

33             Seeds sold not under a brand name

34             Semen including frozen semen

35             Silk fabrics                                               50.07

36             Silk worm laying, cocoon and raw silk

37             Slate and slate pencils

38             Sugar and khandasari

39             Raw Tapioca

40             Tender green coconut

41             Textiles fabric

42             Toddy, Neera

43             Tobacco

       1       Unmanufactured tobacco (whether or not threshed or similarly processed) ; tobacco refuse ;

       2       Beedi, cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes ;

       3       Other manufactured tobacco and manufactured tobacco substitutes ; “homogenized” or “reconstituted : tobacco ;

44             Unbranded bread

45             Unprocessed and unbranded salt

46             Water other than (i) aerated, mineral, distilled, medicinal, ionic, battery, de-mineralised water and (ii) water sold in sealed container

Second Schedule

Goods in respect of which tax is leviable at all points of sale at the rate of 1% under sub-section (1) of Section 6

Sl.   Sub-                   Description of goods               HSN Code

No. entry

(1)  (2)                                (3)                               (4)

1      1       Bullion, Specie and other precious metals      71.01

                and stones

       2       Rice and Wheat                              7.13.10.01

Third Schedule

Goods in respect of which tax is leviable at all points of sale at the rate of 4% under sub-section (1) of Section 6

Sl.   Sub-                   Description of goods               HSN Code

No. entry

(1)  (2)                                (3)                               (4)

1              Agricultural implements not operated manually or not  driven by animal

2              All equipments for communications such as Private  Branch Exchange (P.B.X.) and Electronic Private Automatic Branch Exchange (E.P.A.B.X.) etc.

3          All intangible goods like copyright, patent, REP licence, etc.

4          All kinds of bricks including fly ash bricks, refractory bricks and asphaltic roofing, earthen tiles

      1   Articles of cement, of concrete or artificial stone,  whether or not reinforced : Tiles, flagstones, bricks and similar articles

      2   Bricks, blocks, tiles and other ceramic goods of siliceous fossil meals (for example, kieselguhr, tripolite or diatomite) or of similar siliceous earths

      3   Refractory bricks, blocks, tiles and similar refractory ceramic constructional goods, other than those of siliceous fossil meals or similar siliceous earths

      4   Ceramic building bricks, flooring blocks, support or filler tiles and the like

5          All types of yarn other than cotton and silk yarn in hank and sewing thread

      1   Preparations for oral or dental hygiene, including denture fixative pastes and powders ; yarn used to clean between the  teeth (dental floss), in individual retail packages

      2   Yarn of carded wool, not put up for retail sale

      3   Yarn of combed wool, not put up for retail sale

      4   Yarn of fine animal hair (carded or combed), not put up for retail sale

      5   Yarn of wool or fine animal hair, put up for retail sale

      6   Yarn of coarse animal hair or of horsehair (including gimped horsehair yarn), whether or not put up for retail sale

      7   Flax yarn

      8   Yarn of jute or of other textile bast fibers of heading 5303 

      9   Yarn of other vegetable textile fibers ; paper yarn 

     10   Fabricated asbestos fibers ; mixtures with a basis of asbestos or with a basis of asbestos and magnesium carbonate ; articles of such mixtures or of asbestos (for example, thread, woven fabric, clothing, headgear, footwear, gaskets), whether or not reinforced, other than goods of heading 6811 or 6813

     11   Glass fibers (including glass wool) and articles thereof (for example, yarn, woven fabrics) : Slivers, rovings, yarn and chopped strands

6          Aluminium utensils and enamelled utensils 

7          Arecanut powder and betel nut

8          Bamboo 

9          Bearings

      1   Parts suitable for use solely or principally with the engines of heading 8407 or 8408

      2   Ball or roller bearings, and parts thereof 

      3   Transmission shafts (including camshafts and crankshafts) and cranks ; bearing housins, housed bearings and plain shaft bearings ; gears and gearing ; ball or roller screws ; gear boxes and other speed changers, including torque converters ; flywheels and pulleys, including pulley blocks ; clutches and shaft couplings (including universal joints) ; parts thereof

10        Beedi leaves

11        Beltings 

      1   Other articles of plastics and articles of other materials of  headings 3901 to 3914

      2   Conveyor or transmission belts or belting of vulcanized rubber

      3   Articles of leather or of composition leather of a kind used in machinery or mechanical appliances or for other technical  uses

      4   Transmission or conveyor belts or belting, of textile material ; whether or not impregnated, coated, covered or laminated with plastics, or reinforced with metal or other material

12        Bicycles, tricycles, cycle rickshaws & parts

13        Bitumen

14        Bone meal 

15        Branded bread 

16        Bulk drugs

      1   Ketones and quinones, whether or not with other oxygen function, and their halogenated, sulfonated, nitrated or nitrosated derivatives

      2   Oxygen-function amino-compounds Amino-alcohols, their ethers and esters, other than those containing more than one kind of oxygen function ; salts thereof :

      3   Organic derivatives of hydrazine or of hydroxylamine

      4   Other organo-inorganic compounds 

      5   Heterocyclic compounds with oxygen hetero-atom(s) only : Compounds containing an unfused furan ring (whether or not hydrogenated) in the structure

      6   Heterocyclic compounds with nitrogen hetero-atom(s) only : Compounds containing an unfused pyrazole ring (whether or not hydrogenated) in the structure

      7   Nucleic acids and their salts, other heterocyclic compounds

      8   Sulfonamides

17        Capital goods

18        Castings 

      1   Pig iron and spiegeleisen in pigs, blocks or other primary forms

      2   Tubes, pipes and hollow profiles, of cast iron 

      3   Tube or pipe fittings (for example couplings, elbows, sleeves), of iron or steel

      4   Table, kitchen or other household articles and parts thereof, of iron or steel ; iron or steel wool ; pot scourers and scouring or polishing pads, gloves and the like, of iron or steel

19        Centrifugal, monobloc and submersible pumps and parts thereof

20        Coffee beans and seeds, cocoa pod, green tea leaf and chicory

      1   Coffee, whether or not roasted or decaffeinated ; coffee husks and skins ; coffee substitutes containing coffee in any proportion

      2   Tea, whether or not flavored

      3   Locust beans, seaweeds and other algae, sugar beet and sugar cane, fresh, chilled, frozen or dried, whether or not ground ; fruit stones and kernels and other vegetable products (including unroasted chicory roots of the variety Cochorium intybus sativum) of a kind used primarily for human consumption, not elsewhere specified or included :

      4   Cocoa beans, whole or broken, raw or roasted

21        Chemical fertilizers, pesticides, weedicides and insecticides

      1   Diphosphorus pentaoxide ; phosphoric acid and polyphosphoric acids

      2   Organo-sulfur compounds 

      3   Other organo-inorganic compounds

      4   Heterocyclic compounds with oxygen heteroatom (s) only : Compounds containing an unfused furan ring (whether or not hydrogenated) in the structure:

      5   Hetrocyclic compounds with nitrogen heteroatom (s) : Compounds containing an unfused pyrazole ring (whether or not hydrogenated) in the structure

      6   Animal or vegetable fertilizers, whether or not mixed together or chemically treated ; fertilizers produced by the mixing or chemical treatment of animal or vegetable products

      7   Mineral or chemical fertilizers, nitrogenous

      8   Mineral or chemical fertilizers, phosphatic

      9   Mineral or chemical fertilizers, potassic

     10   Mineral or chemical fertilizers containing two or three of the fertilizing elements nitrogen, phosphorus and potassium ; other fertilizers ; goods of this chapter in tablets or similar forms or in packages of a gross weight not exceeding 10kg (22lbs.) :

     11   Insecticides, rodenticides, fungicides, herbicides, antisprouting products and plant-growth regulators, disinfectants and similar products, put up in forms or packings for retail sale or as preparations or articles (for example, sulphur-treated bands, wicks and candles and flypapers) ;

22        Coir and coir products excluding coir mattresses

23        Cotton and cotton waste

24        Crucibles

25        Declared goods as specified in section 14 of the Central Sales Tax Act, 1956.

      1   Cereals, that is to say.—

           (i) jowar, or milo (Sorghum wigare Pers) ;

           (ii) bajra (Pennisetum typhoideum . L.) ;

           (iii) maize (Zea mays L.) ;

           (iv)   ragi (Eleusine coracana Gaertn) ;

           (v) kodon (Paspalum scrobiculatum L.) ;

           (vi)   kutki (Panicum miliare L.) ;

           (vii) barley (Hordeum wigare L.) ;

      2   Coal, including coke in all its forms, but excluding char coal ;

      3   Cotton, that is to say, all kinds of cotton (indigenous or imported in its unmanufacture state, whether ginned or unginned, baled, pressed otherwise, but not including cotton waste

      4   Cotton yarn, but not including cotton yarn waste

      5   Oil, that is to say, crude petroleum oils and crude oils obtained from bituminous minerals (such as shale, calcureous rock, sand), whatever their composition whether obtained from normal or condensation oil-deposits or by the destructive distillation or bituminous minerals and whether or not subjected to all or any of the following process :—

           (1)                     decantation ;

           (2)                      de-salting ;

           (3)                     dehydration ;

           (4) stablisation in order to normalise the vapour pressure ;

           (5) elimination of very light fractions with a view to returning them to the oil-deposits in order to improve the drainage and maintain to pressure ;

           (6) the addition of only those hydrocarbons previously recovered by physical methods during the course of the above mentioned processes ;

           (7) any other minor processes (including addition of you point depressants or flow improves) which does not change the essential character of the substance] ;

      6   Hides and skins, whether in a raw or dressed state

      7   Iron and steel, that is to say,—

           (i) pig iron and cast iron including ingots moulds bottom plates ; iron scrap, cast iron scrap, runner scrap and iron skull scrap ;

             (ii) steel semis (ingots, slabs, blooms and billets of all qualities, shapes and sizes) ;

             (iii) skelp, bars, tin bars, sheet bars, hoe bars and sleeper bars ;

            (iv) steel bars (rounds, rods, squares, flats octagons and hexagons, plain and ribbed or twisted, in coil form as well as straight lengths) ;

             (v) steel structurals (angles, joints, channels, tees, sheetpiling sections, Z sections or any other rolled sections) ;

            (vi) sheetshoops, strips and skelp, both black and galvanised, hot and cold rolled, plain and corrugated, in all qualities, in straight length and in coil form, as rolled and in rivetted condition ;

            (vii) discs, rings, forgings and steel castings ;

           (viii) tool, alloy and special steels of any of the above categories ;

            (ix) steel melting scrap in all forms including steel skull, turnings and borings ;

             (x) steel tubes, both welded and seampless, of all diameters and lengths, including tube fittings ;

            (xi) tin-plates, both hot dipped and electrolytic and tin free plates ;

            (xii) fish plate bars, bearing plate bars, crossing sleeper bars, fish plates, bearing plates, crossing sleepers and prossed steel sleepers, raised heavy and light crane trails ;

           (xiii) wheels, tyres, axles and wheels sets ;

           (xiv) wire rods and wires-rolled, drawn, galvanised, aluminised, tinned, or coated such as by copper ;

           (xv) defectives, rejects, cuttings or end pieces of any of the above categories ;

      8   Jute, that is to say, the fibre extracted from plants belonging to the species Corchorus capsularis and Corchorus olitorius and the fibre known as mesta or bimli extracted from plants of the species Hibiscus cannabinus and Hibiscus sabdariffa_ Varaltissima and the fibre known as Sunn or Sunn-hemp extracted from plants of the species Crotalariajuncea whether baled or otherwise]. Oil seeds, that is to say :—

              (i) Groundnut or Peanut (Arachis hypogaea) ;

             (ii) Sesamum or Til (Sesamum orientale) ;

             (iii) Cotton seed (Gossypium Spp.) ;

            (iv) Soyabean (Glycine seja) ;

             (v) Rapseed and Mustard—

                  (1) Toria (Brassica campestris var toria) ;

                  (2) Rai (Brassica juncea) ;

                  (3) Jamba_Taramira (Eruca Satiya) ;

                  (4) Sarson, yellow and brown (Brassica campestris var sarson) ;

                  (5) Bannarasi Rai or True Mustard (Brassica nigra) ;

            (vi) Linseed Linum usitatissimum ;

            (vii) Castor (Ricinuscommunis) ;

           (viii) Coconut (i.e., Copra excluding tender coconuts) (Cocosnucifera) ;

            (ix) Sunflower (Helianthus annus) ;

             (x) Nigar seed (Guizotia abyssinica) ;

            (xi) Neem, vepa (Azadirachta indica) ;

            (xii) Mahua, Illupai, lppe (Madhuca indica M. Latifoha, Bassia, Latifolia and Madhaca longifolia syn. M. Longifolia) ;

           (xiii) Karanja, Pongam, Honga (Pongamia ipinnata syn. P. Glabra) ;

           (xiv)  Kusum (Schleichera oleosa, syn. S. Trijuga) ;

           (xv) Punna, Undi (Calophyllum inophyllum) ;

           (xvi) Kokum (Carcma indica) ;

          (xvii) Sal (Shorea robusta) ;

          (xviii) Tung (Aleurites frodh and A. moritana) ;

           (xix) Redpaim (Elaeisguinensis) ;

            (xx) Safflower (Carthanus tinctorius) ;

      9   Pulses, that is to say,—

              (i) gram or gulabi gram (Cicerarietinum L.) ;

             (ii) tur or arhar (Cajanus cajan) ;

             (iii) moong or green gram (Phaseolus aureus) ;

            (iv) masur or lentil (Lens esculenta Moench, Lens culinaris Medic) ;

             (v) urad or black gram (Phaseolus mungo) ;

            (vi) moth (Phaseolus aconitifolius Gacq) ;

            (vii) lakh or khesari (Lathyrays Sativus L.) ;

26        Edible oils, oil cake and de-oiled cake

      1   Soyabean oil and its fractions, whether or not refined, but not chemically modified

      2   Peanut (ground-nut) oil and its fractions, whether or not refined, but not chemically modified

      3   Olive oil and its fractions, whether or not refined, but not chemically modified

      4   Other oils and their fractions, obtained solely from olives, whether or not refined, but not chemically modified, including blends of these oils and fractions with oils or fractions of heading 1509

      5   Palm oil and its fractions, whether or not refined, but not chemically modified

      6   Sunflower-seed, safflower or cottonseed oil, and fractions thereof, whether or not refined, but not chemically modified: Sunflower-seed or safflower oil and fractions thereof

      7   Coconut (copra), plam kernel or babassu oil and fractions thereof, whether or not refined, but not chemically modified: Coconut (copra) oil and its fractions

      8   Rapeseed, coiza or mustard oil, and fractions thereof,  whether or not refined, but not chemically modified

      9   Other fixed vegetable fats and oils (including jojoba oil) and their fractions, whether or not refined, but not chemically modified

     10   Oil cake and other solid residues, whether or not ground           or in the form of pellets, resulting from the extraction of soyabean

     11   Oil cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of peanut (groundnut) oil

     12   Oil cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of vegetable fats or oils, other than those of heading 2304 or 2305

27        Electrodes

28        Exercise book, graph book and laboratory note book

29        Ferrous and non-ferrous metals and alloys ; non-metals such as aluminium, copper, zinc and extrusion of those

      1   Pig iron and spieleleisen in pigs, blocks or other primary forms

      2   erroalloys : Felt manganese

      3   ferrous products obtained by direct reduction of iron ore and other spongy ferrous products, in lumps, pellets or similar forms ; iron having a minimum purity by weight of 99.94 per cent, in slumps, pellets or similar forms

      4   Ferrous waste and scrap ; remelting scrap ingots of iron or steel

      5   Granules and powders, of pig iron, spiegeleisen, iron or steel

      6   Iron and non-alloy steel in ingots or other primary forms (excluding iron of heading 7203)

      7   Semifinished products of iron or non-alloy steel: Containing by weight less than 0.25 per cent or carbon

      8   Flat-rolled products of iron or non-alloy steel, of a width of 600 mm (23.6 inches) or more, hot-rolled, not clad, plated or coated

      9   Flat-rolled products of iron or non-alloy steel, of a width of 600 mm (23.6 inches) or more, colled-rolled, (cold reduced), not clad, plated or coated: In coils, not further worked than cold-rolled (cold reduced)

     10   Flat-rolled products of iron or non-alloy steel, of a width 600 mm (23.6 inches) or more, clad, plated or coated with tin

     11   Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm (23.6 inches) not clad, plated or coated : Not further worked than hot -rolled

     12   Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm (23.6 inches) clad, plated or coated

     13   Bars and rods, hot rolled, in irregularly wound coils, of iron or non-alloy steel

     14   Other bars and rods of iron or non-alloy steel, not further worked than forged, hot -rolled, hot-drawn or hot extruled but including those twisted after rolling

     15   Other bars and rods, of iron or non-alloy steel 

     16   Angles, shapes and sections of iron or non-alloy steel

     17   Wire of iron or non-alloy steel 

     18   Stainless steel in ingots or other primary forms ; semi finished products of stainless steel

     19   Flat-rolled products of stainless steel, of a width of 600 mm (23.6 inches) or more : Not further worked than hot rolled in coils

     20   Flat-rolled products of stainless steel, of a width of less than 600 mm (23.6 inches) : Not further worked than hot tilled

     21   Bars and rods, hot rolled in irregularly wound coils, of stainless steel

     22   Other bars and rods stainless steel ; angles, shapes and sections of stainless steel. Bars and rods, not further worked than hot-rolled, hot drawn or extruded

     23   Wire of stainless steel

     24   Other alloy steel in ingots or other primary forms ; semifinished products of other alloy steel

     25   Flat-rolled products of other alloy steel, of a width of  600 mm (23.6 inches) or more : Of silicon-electrical steel

     26   Flat-rolled products of other alloy steel, of a width of less than 600 mm (23.6 inches) or more : Of silicon-electrical steel

     27   Bars and rods, hot -rolled, in irregularly wound coils, of other alloy steel

     28   Other Bars and rods of other alloy steel ; angles, shapes and sections, of other alloy steel ; hollow drill bars and roads of alloy or non-alloy steel 

     29   Wire of other alloy steel

     30   Sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements ; welded angles, shapes and sections, of iron or steel

     31   Railway or tramway track construction material of iron or steel, the following rails, check-rails and rack rails ; switch blades crossing frogs, point rods and other crossing pieces, sleepers (cross-ties ) fish plates, chairs, chair wedges, sole plates (base plates), fail clips, bedplates, ties and other material specialised for jointing of fixing rails

     32   Tubes, pipes and hollow profiles if cast iron 

     33   Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel

     34   Other tubes and pipes (for example, welded, riveted or similarly closed) having circular cross sections, the external diameter of which exceeds 406.4 mm (16 inches) of iron or steel

     35   Other tubes, pipes and hollow profiles (for example, open seamed or welded, riveted or similarly closed) of iron or steel

     36   Tube or pipe fitting (for example couplings, elbows, sleeves), of iron or steel. Cast fittings

     37   Copper matters cement copper (precipitated copper)

     38   Unrefined copper ; copper anodes for electrolytic refining copper content

     39   Refined copper and copper alloys, unwrought (other than master alloys of heading 7405) : Refined copper

     40   Copper waste and scrap

     41   Master alloys of copper

     42   Copper powders and flakes

     43   Copper bars rods and profiles

     44   Copper wire

     45   Copper plates, sheets and strip, of a thickness exceeding 0.15 mm (0.006 inch)

     46   Copper foil (whether or not printed or backed with paper, paper board, plastics or similar backing materials of a thickness (excluding any backing) not exceeding 0.15 mm (0.006 inch)

     47   Copper tubes and pipes 

     48   Copper tube or pipe fittings (for example, coupling, elbows, sleeves)

     49   Stranded wire, cables, plaited bands and the like, including slings and similar articles, of copper, not electrically insulated

     50   Nickel mattes, nickel oxide sinters and other intermediate products of nickel metallurgy

     51   Unwrought nickel 

     52   Nickel waste and scrap 

     53   Nickel powders and flakes 

     54   Nickel bars, rods, profiles and wire 

     55   Nickel plates, sheets, strip and foil

     56   Unwrought Aluminium 

     57   Aluminium waste and scrap 

     58   Aluminium powders and flakes

     59   Aluminium bars, rods and profiles

     60   Aluminium wire

     61   Aluminium plates, sheets and strip, of a thickness exceeding 0.2mm (0.0079 inch)

     62   Aluminium plates, sheets and strip, (whether or not printed or backed with paper, paper board, plastics or similar backing materials of a thickness (excluding any backing) not exceeding 0.2mm (0.0079 inch)

     63   Aluminium tubes and pipes

     64   Aluminium tube or pipe fittings (for example coupling, elbows, sleeves)

     65   Unwrought lead

     66   Lead waste and scrap

     67   Lead bars, rods, profiles and wire

     68   Lead plates, sheets, strip and foil, lead powders and flakes

     69   Lead tubes, pipes and tube or pipe fittings (for example couplings)

     70   Unwrought zinc

     71   Zinc waste and scrap

     72   Zinc dust, powders and flakes 

     73   Zinc bars, rods, profiles and wire

     74   Zinc plates, sheets, strip and foil 

     75   Zinc tubes, pipes and tube or pipe fittings (for example couplings, elbows, sleeves)

     76   Unwrought tin 

     77   Tin waste and scrap 

     78   Tin bars, rods, profiles and wire 

     79   Tin plates, sheets and strip, of a thickness exceeding  0.2mm (0.008 inch)

     80   Tin foil (whether or not printed or backed with paper, paper board, plastics or similar backing materials), of a thickness (excluding any backing) not exceeding 0.2mm (0.008 inch), tin powders and flakes

     81   Tin tubes, pipes and tube or pipe fittings (for example,  couplings, elbows, sleeves)

     82   Tungsten (wolfram) and articles thereof, including waste and scrap

     83   Molybdenum and articles thereof, including waste and  scrap

     84   Tantalum and articles thereof, including waste and scrap 

     85   Magnesium and articles thereof, including waste and  scrap

     86   Cobalt mattes and other intermediate products of cobalt metallurgy, cobalt and articles thereof, including waste and scrap

     87   Bismuth and articles thereof, including waste and scrap 

     88   Cadmium and articles thereof, including waste and scrap

     89   Titanium and articles thereof, including waste and scrap

     90   Zirconium and articles thereof, including waste and scrap

     91   Antimony and articles thereof, including waste and scrap

     92   Manganese and articles thereof, including waste and scrap

     93   Berylium, chromium, germanium, vanadium, gallium, hafnium, indium, niobium (columbium), rhenium and thallium, and articles of these metals, including waste and scrap

     94   Cermets and articles thereof, including waste and scrap

30        Fibres of all types and fibre waste

      1   Composition leather with a basis of leather or leather fibre, in slabs, sheets or strip, whether or not in rolls

      2   Jute and other textile bast fibres (excluding flax, true hemp and ramie) raw or processed but not spun ; tow and waste of these fibers including yarn waste and gametted stock

      3   Sisal and other textile fibres of the genus Agave, raw or processed but not spun ; tow and waste of these fibers (including yarn waste and gametted stock)

      4   Coconut, abaca (Manila hemp or Musa textilis Nee),  ramie and other vegetable textile fibers, not elsewhere specified or included, raw or processed but not spun ; tow, noils and waste of these fibers (including yarn waste and gametted stock)

      5   Synthetic staple fibers, not carded, combed or otherwise processed for spinning

      6   Waste (including noils, yarn waste and gametted stock) of manmade fibers

      7   Synthetic staple fibers, carded, combed or otherwise  processed for spinning

      8   Artificial staple fibers carded, combed or otherwise processed for spinning

      9   Fabricated asbestos fibers ; mixtures with a basis of asbestos or with a basis of asbestos and magnesium carbonate ; articles of such mixtures or of asbestos (for example, thread, wovenfabric clothing, headgear, footwear, gaskets) whether or not reinforced, other than goods of heading 6811 or 6813

     10   Glass fibres (including glass wool) and articles thereof  (for example, yarn, woven fabrics) ; Slivers, rovings, Yarn and chopped strands ;

     11   Optical fibers and optical fiber bundles ; optical fiber  cables other than those of heading 8544 ; sheets and plates of polarizing materials ; lenses (including contact lenses), prisms, mirrors and other optical elements of any meterial, unmounted, other than such elements of glass not optically worked.

31       Flour, atta, maida, suji, besan, etc. 

      1   Wheat or meslin flour

      2   Cereal flours other than of wheat or meslin

      3   Flour, meal and powder of the dried leguminous vegetables of heading 0613, of sago or of roots or tubers of heading (0714 or of the products of chapter 8)

32        Fried grams 

33        Gur, jaggery, and edible variety of rub gur

      1   Cane or beet sugar and chemically pure sucrose, in soild form : Raw sugar not containing added flavouring or coloring matter :

      2   Other sugars, including chemically pure lactose, maltose, glucose (dextrose) and fructose, in soild form ; sugar syrups not containing added flavouring or coloring matter, artificial honey, whether or not mixed with natural honey ; caramel :

34        Hand pumps, and spare parts

35        Herb, bark, dry plant, dry root, commonly known as jari booti and dry flower, Plants and parts of plants (including seeds and fruits), of a kind used primarily in perfumery, in pharmacy or for insecticidal, fungicidal or similar purposes, fresh or dried, whether or not cut, crushed or powdered

36        Hose pipes

37        Hosiery goods 

38        Husk and bran of cereals

           Cereal straw and husks, unprepared, whether or not chopped, ground, pressed, or in the form of pellets Bran, sharps (middlings) and other residues, whether or not in the form of pellets, drived from the sifting, milling or other working of cereals or of leguminous plants

39        Ice 

40        Incense sticks commonly known as, agarbatti, dhupkathi or dhupbagti

41        Industrial cables (High Voltage cables, XLPE

           Cables, jelly filled cables, optical fibers)

      1   Insulated (including enameled or anodized) wire, cable (including coaxial cable) and other insulated electrical conductors, whether or not fitted with connectors, optical fiber cables, made up of individually sheathed fibers, whether or not assembled with electric conductors or fitted with connectors :

      2   Optical fibers and optical fiber bundles ; optical fiber cables other than those of heading 8544 ; sheets and plates of polarizing material ; lenses (including contact lenses), prisms, mirrors and other optical elements, of any materials, unmounted, other than such elements of glass not optically worked :

42        Industrial inputs and packing materials as detailed in part A of this schedule

43        IT Products including computers, telephone and parts thereof, teleprinter and wireless equipment and parts thereof

44        Jewellery made up of gold, silver and platinum group of metals 

45        Kerosene oil sold through PDS 

46        Leaf plates and cups

47        Murmuralu, pelalu, atukulu, puffed rice, muri 

48        Newars

49        Napa Slabs (Rough flooring stones)

50        Ores and minerals

      1   Iron ores and concentrates, including roasted iron pyrites ; Iron ores and concentrates, other than roasted iron pyrites

      2   Manganese ores and concentrates, including ferrug- inous managanese ores and concentrates with a mang- anese content of 20 per cent or more, calculated on the dry weight

      3   Copper ores and concentrates

      4   Nickel ores and concentrates

      5   Cobalt ores and concentrates

      6   Aluminium ores and concentrates

      7   Lead ores and concentrates

      8   Zinc ores and concentrates 

      9   Tin ores and concentrates 

     10   Chromium ores and concentrates

     11   Tungsten ores and concentrates

     12   Uranium or thorium ores and concentrates 

     13   Molybdenum ores and concentrates

     14   Titanium ores and concentrates 

     15   Niobium, tantalum, vanadium or zirconium ores and concentrates

     16   Precious metal ores and concentrates 

     17   Other ores and concentrates

51        Paper and newsprint

      1   Recovered (waste and scrap) paper and paperboard

      2   Newsprint, in rolls or sheets 

      3   Uncoated paper and paperboard, of a kind used for writing, printing or other graphic purposes, and punch card stock and punch tape paper, in rolls or sheets, other than paper of heading 4801 or 4803 ; handmade paper and paper and paperboard

      4   Toilet or facial tissue stock, towel or napkin stock and similar paper of a kind used for household or sanitary purposes, cellulose wadding and webs of cellulose fibers, whether or not creped, crinkeled, embossed, perforated, surface-colored, surface-decorated or printed in roll or sheets

      5   Uncoated craft paper and paperboard, in rolls or  sheets, other than that of heading 4802 or 4803 ; handmade paper and paperboard

      6   Other uncoated paper and paperboard, in rolls or  sheets, not further worked or processed (than as spe- cified in note 2 to this chapter)

      7   Vegetable parchment, greaseproof papers, tracing papers and glassine and other glazed transparent or translucent papers

52        Pipes of all varieties including G.I. Pipes, C.I. Pipes, ductile pipes and PVC Pipes

      1   Tubes, Pipes and hoses, and fittings therefor (for example, joints, elbows, flanges), of plastics

      2   Tubes, Pipes and hollow profiles, of cast iron

      3   Tubes, Pipes and hollow profiles, seamless, of iron (other than cast iron) or steel

      4   Other tubes and pipes (for example, welded, riveted or similarly closed), having circular cross sections, the external diameter of which exceeds 406.4mm (16 inches) of iron or steel

      5   Other tubes, pipes and hollow profiles (for example, open seamed or welded, riveted or similarly closed), of iron or steel ;

      6   Tube or pipe fittings (for example coupling, elbows,  sleeves), of iron or steel ; Cast fittings

53        Plastic footware

54        Printed material including diary, calendar, etc.

      1   Music, printed or in manuscript, whether or not bound or illustrated

      2   Maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes, printed

      3   Printed or illustrated postcards ; printed cards bearing personal greetings, messages or announcements, whether or not illustrated, with or without envelopes or trimmings

      4   Calendars of any kind, printed, including calendar blocks

      5   Other printed matter, including printed pictures and photographs

55        Printing ink excluding toner and cartridges 

56        Processed and branded salt

57        Pulp of bamboo, wood and paper

      1   Mechanical woodpulp

      2   Chemical woodpulp, dissolving grades

      3   Chemical woodpulp, soda or sulfate, other than dissolving grades

      4   Chemical woodpulp, sulfite, other than dissolving grades

      5   Pulps of fibers derived from recovered (waste and scrap paper or paperboard or of other fibrous cellulosic meterial)

58        Pulses other than declared goods 

59        Rail coaches engines and Wagons

      1   Rail Locomotives powered from an external source of electricity or by electric accumulators (batteries)

      2   Other rail Locomotives ; Locomotive tenders 

      3   Self-propelled railway or tramway coaches, vans and  trucks, other than those of heading 8604

      4   Railway or tramway maintenance or service vehicles,  whether or not self-propelled (for example, workshops, cranes, ballast tampers, trakliners, testing coaches and track inspection vehicles)

      5   Railway or tramway passenger coaches, not self-  propelled ; luggage vans, post office coaches and other special railway or tramway coaches, not self-propelled (excluding those of heading 8604)

      6   Railway or tramway freight cars, not self- propelled

60        Raw Cashew

61        Readymade garments

      1   Men’s or boy’s overcoats, carcoats, capes, cloaks,  anoraks (including ski-jackets), and similar articles, knitted or crocheted, other than those of heading 6103

      2   Women’s or girls’ overcoats, carcoats, capes, cloaks, anoraks (including ski-jackets), and similar articles, knitted or crocheted, other than those of heading 6104

      3   Men’s or boys’ suits, ensembles, suit-type jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear), knitted or crocheted

      4   Women’s or girls’ suits, ensembles, suit-type jackets, blazers , dresses, skirts, devided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear) knitted or crocheted

      5   Men’s or boys’ shirts, knitted or crocheted

      6   Women’s or girls’ blouses and shirts, knitted or  crocheted

      7   Men’s or boys underpants, briefs, nightshirts, pajamas, bathrobes, dressing gowns and similar articles, knitted or crocheted

      8   Women’s, girls’ slips, petticoats, briefs, panties night dresses, pajamas, negligees, bathrobes, dressing gowns and similar articles, knitted or crocheted

      9   T-shirts, singlets, tank tops and similar garments, knitted or crocheted

     10   Sweaters, Pullovers, sweatshirts waistcoats (vests), and similar articles knitted or crocheted

     11   Babies garments and clothing accessories, knitted or  crocheted

     12   Track suits, ski-suits and swimwear, knitted or  crocheted

     13   Garments, made up of knitted or crocheted fabrics of  heading 5903, 5906 or 5907: Having an outer surface impregnated, coated, cogered, or laminated with rubber or plastic materiel which completely obscures the underlying fabric

     14   Other garments, knitted or crocheted

     15   Men’s or boys’ overcoats, raincoats, carcoats, capes, cloaks, anoraks (including ski-jackets), windbreakers and similar articles (including padded , sleeveless jackets, other than those of heading 6203)

     16   Women’s or girls’ overcoats, raincoats, carcoats, capes,  cloaks, anoraks (including ski-jackets), windbreakers and similar articles (including padded, sleeveless jackets, other than those of heading 6204)

     17   Men’s or boys’ suits, ensembles, suit-type jackets,  blazers, trousers, bib and brace overalls, breeches and shorts other than swimwear

     18   Women’s or girls’ suits, ensembles, suit-type jackets, blazers, dresses, skirts divided skirts, trousers, bib and brace overalls, breeches and shorts other than swimwear

     19   Men’s or boys’ shirts 

     20   Women’s or girls’ blouses, shirts and shirt-blouses

     21   Men’s or boy’s singlets and other undershirts, under- pants, briefs, nightshirts, pajamas, bathrobes, dressing gowns and similar articles

     22   Women’s or girls’ singlets and other undershirts, slips,  petticoats, briefs, panties, nightdresses, pajamas, negligees, bathrobes, dressing gowns and similar articles

     23   Babies garments and clothing accessories 

     24   Garments, made-up of fabrics of heading 5602, 5903, 5906 or 5907

     25   Track suits, ski-suits and swimwear, other garments

     26   Brassiers, girdles, corsets, braces, suspenders, garters and similar articles and parts thereof, whether or not knitted or crocheted

62        Renewable energy devices and spare parts 

63        Safety matches

64        Seeds

65        Sewing machines

66        Ship and other water vessels

      1   Cruise ships, excursion boats, ferry boats, cargo ships,  barges and similar vessels for the transport of persons or goods

      2   Fishing vessels ; factory ships and other vessels for processing or preserving fishery products

      3   Yachts and other vessels for pleasure or sports ; row boats and canoes:

      4   Tugs and pusher craft 

      5   Light-vessels, fire-floats, dredgers, floating cranes, and other vessels the navigability of which is subsidiary to their main function ; floating docks ; floating or submersible drilling or production platforms

      6   Other vessels, including warships and lifeboats other than row boats

      7   Other floating structures (for example, rafts, tanks, cofferdams, landing-stages, buoys and beacons)

      8   Vessels and other floating structures for scrapping

67        Skimmed milk powder 

68        Solvent oils other than organic solvent oil

69        Spices of all varieties and forms including cumin seed, aniseed, turmeric and dry chillies

      1   Pepper of the genus Piper, dried or crushed or ground fruits of the genus Capsicum (Peppers or of the genus Piments (e.g., allspice) :

      2   Cinnamon and cinnamon-tree flowers 

      3   Cloves (whole fruit, clovers and stems)

      4   Nutmeg, mace and cardamoms

      5   Seeds of anise, badian, fennel, coriander, cumin or caraway ;

      6   Dried Ginger, saffron, turmeric (curcuma), thyme, bay leaves, curry and other spices

70        Sports goods excluding apparels and footwear

      1   Articles for arcade, table or parlour games, including pinball machines, bagatelle, billiards and special tables for casino games ; automatic bowling alley equipment ; parts and accessories thereof :

      2   Articles and equipment for general physical exercise, gymnastics, athletics, other sports (including table- tennis) or outdoor games, not specified or included elsewhere in this chapter ; swimming pools and wading pools ; parts and accessories thereof : Snow- skis and other snow-ski equipment ; parts and accessories thereof :

      3   Fishing rods, fish-hooks and other line fishing tackle ; fish landing nets, butterfly nets and similar nets ; decoy : “birds” (other than those of heading 9208 or 9705) and similar hunting or shooting equipment ; parts and accessories thereof :

71        Starch

72        Tamarind

73        Tractors, harvesters and attachments and parts  thereof

74        Transmission towers

75        Umbrella except garden umbrella 

76        Vanaspati (Hydrogenated vegetable oil)

77        Vegetable oil including gingili oil and bran oil

      1   Other fixed vegetable fats and oils (including jojoba oil) and their fractions, whether or not refined, but not chemically modified :

      2   Animal or vegetable fats and oils, and their fractions, partly or wholly hydrogenated, intere-sterified reesterified or elaidinized, whether or not refined, but not further prepared :

78        Writing instruments 

79        Environment friendly recycled products as may be notified by Government from time to time

           HSN Code means the Harmonised system of Nomenclature

 

Part A

 (See Serial No. 42)

 (List of Industrial inputs and packing materials)

 

Sl.    HSN              Description of Goods                          Sub HSN

No. Code                                                                     Code

 (1)   (2)                           (3)                                         (4)

1    15.01 Animal (Including fish) fats and oils, crude, refinded or purified.

2    15.06 Glycerol, crude, glycerol waters and glycerol lyes

3    15.07 Vegetable waxes (other than triglycerides) beeswax, other insect waxes and spermaceti, whether or not refined or coloured ; degrasl residues resulting from the treatment of fatty substances or animal or vegetable waxes

4    15.08 Animal or vegetable fats boiled, oxidised, dehydrated, sulphurised, blown, polymersied by heat in vacuum or in inert gas or otherwise chemically modified ; inedible mixtures or preparations of fats and oils

5    17.02 Liquid glucose (non-medicinal)

6           Denatured ethyl alcohol of any strength         2204.1

7    26.02 Manganese ores and concentrates, including ferru- ginous manganese ores and concentrate with a manganese content of 20% or more ; calculated on the dry weight.

8    26.03 Copper ores and concentrates

9    26.04 Nickel ores and concentrates

10 26.05 Cobalt ores and concentrates

11 26.06 Aluminium ores and concentrates

12 26.07 Lead ores and concentrates

13 26.08 Zinc ores and concentrates

14 26.09 Tin ores and concentrates

15 26.10 Chromium ores and concentrates

16 26.11 Tungsten ores and concentrates

17 26.12 Uranium or Thorium ores and concentrates

18 26.13 Molybdenum ores and concentrates

19 26.14 Titanium ores and concentrates

20 26.15 Niobium, Tantalum, Vanadium or Zirxinium ores and concentrates

21 26.16 Precious Metal ores and concentrates

22 26.17 Other ores and concentrates

23 26.18 Granulated slag (slag sand) from the manufacture of iron or steel

24            Benzol                 2707.1

25            Toluole                2707.2

26            Xylote                 2707.3

27            Naphthalene         2707.4

28            Phenols               2707.5

29            Creosote oil          2707.6

30            Normal paraffil       2710.9

31            Butadine             2711.12

32 27.14 Bitumen

33 28.01 Fluorine, Chlorine, Bromine and lodine

34 28.02 Sulphur, sublimed or precipitated, colloidal sulphur

35 28.03 Carbon (Carbon blacks and other forms of carbon not elsewhere specified or included.)

36 28.04 Hydrogen, rare gases and other non-metals

37 28.05 Alkali or alkaline earth metals ; rare-earth metals, scandium and ytrium, whether or not intermixed or inter slloyed mercury

38 28.06 Hydrogen chloride (hydrochloric acid) ; chlorosul- phuric acid

39 28.07 Sulphuric acid and anhydrides therof, Olcum

40 28.08 Nitric acid ; sulphonitric acids

41 28.09 Diphosphorus pentaoxide, phosphoric acid and polyphosphoric acid

42    28.1 Oxides or boron, boric acids

43 28.12 Halidas and halide oxides of non metals

44 28.13 Sulphides of non metals ; commercial phosphorus trisulphide

45 28.14 Ammonia, anhydrous or in aqueous solution

46 28.15 Sodium hydroxide, (caustic soda) ; potassium hydroxides (caustic potash) peroxides of sodium or potassium

47 28.16 Hydroxide and peroxide of magnesium ; oxides hydroxides and peroxides of strontium or barium

48            Aluminium Hydroxides 2818.1

49 28.19 Chromium oxides and hydroxides

50 28.20 Manganese oxides

51            Iron oxides and hydroxides       2821.1

52 28.22 Cobalt oxides and hydroxides ; commercial cobalt oxides

53 28.23 Titanium dioxide

54 28.25 Hydrazine and hydroxylamine and their inorganic salts ; other inorganic bases ; other metal oxides, hydroxides and peroxides

55 28.26 Fluorides Flurosilicates, fluoroaluminates and other complex fluorine salts

56 28.27 Chlorides, chloride oxides and chloride hydroxides, bromides and bromide oxides ; iodides and iodide oxides

57 28.29 Chlorates and Perchlorates ; Bromates and Perbromates ; iodates and Periodates

58    28.3 Sulphides, Polysulphides

59 28.31 Dithionites and sulphoxylates

60 28.32 Sulphides, thiosulphates

61            Copper sulphat      2833.1

62 28.34 Nitrites, nitrates

63 28.35 Phosphites (hypophosphites) phosphonates (Phosphites) ; Phosphates and polyphosphates

64 28.36 Carbonates ; peroxocarbonates (per carbonates) ; commercial ammonium carbonates containing ammonium carbonate

65 28.37 Cyanides, cyanide oxides and complex cyanides

66 28.38 Fulminates, cyanates and thiocynates

67 28.40 Borates ; Peroxoborates (perborates)

68            Sodium dichromate 2841.1

69            Potasium dichromate 2841.2

70 28.44 Radioactive chemical elements and radioactive isotopes (including the fissile chemical elements and isotopes) and their compounds ; mixtures and residues containing these products

71 28.45 Isotopes other than those of heading No. 28.44 Compounds, inorganic or organic of such isotopes, whether or not chemically defined

72 28.46 Compounds, inorganic or organic of rare earth metals of yttrium or scandium or of mixtures of these metals

73 28.48 Phosphides, whether or not chemically defined, excluding ferrophosphorus

74            Calcium Carbide     2849.1

75            Ethylene Propylene 2901.9

76 29.02 Cyclic Hydrocarbons

77 29.03 Halogenated derivatives of Hydrocarbons

78 29.04 Sulponated, nitred or nitrosated derivatives of hydrocarbons, whether or not halogenated

79            Methanol             2905.1

80            Di-Ethylene Glycol, Mono Ethylene Glycol, Trio Ethylene Glycol, Ethylene Glycol, Heavy Ethylene Glycol

81 29.06 Cyclic alcohols and their halogenated, sulphonated, nitrated or nitrosated derivatives

82 29.08 Halogenated, sulphonated, nitrated or nitrosated derivatives of phenols or phenol-alcohols

83 29.09 Ethers, ether-alcohols, peroxides, ether peroxides, ketone peroxides (whether or not chemically defined) and their halogenates, sulphonated, nitrated or nitrosated derivatives

84 29.10 Epoxides, Epoxyalcohols, epoxyphenols and epoxyethers with a three membered ring and their halogenated, sulphonated, nitrated or nitrosated derivatives

85            Eyhylene Oxide       2910

86 29.11 Acetals and hemiacetals, whether or not with other oxygen function and their halogenated, sulponated, nitrated or nitrosated derivatives

87 29.12 Aldehydes, whether or not with other oxygen function ; cyclic polymers of aldehydes, paraformaldehyde.

88 29.13 Halogenated, sulphonated, nitrated or nitrosated derivatives of products of heading No. 29.12

89 29.15 Saturated acyclic monocarboxylic acids and their anhydrides, halides, peroxides and peroyacides ; their halogenated, sulphonated, nitrated or nitrosated derivatives

90 29.16 Unsaturated acyclic monocarboxylic acids, cyclic monocarboxylic acids, their anhydrides, halides, peroxides and peroxyacid, their halogenated, sulphonated, nitrated or nitrosated derivatives

91     29.17  Polycarboxylic acids, their anhydrides, halides, peroxides and peroxyacids ; their halogenated sulponated, nitrated or nitrosated derivatives

92 29.18 Carboxylic acids with additional oxygen function and their anhydrides, halides, peroxides and ; peroxyacids ; their halogenated, sulphonated, nitrated or nitrosated derivatives

93 29.19 Phosphoric esters and their salts including lactophospates ; their halogenated, sulphonated, nitrated or nitrosated derivatives

94           29.2            Esters of other inorganic acids (excluding esters of hydrogen halides) and salts, their halogenated, sulphonated, nitrated or nitrosated derivatives

95    29.21 Amine function compounds

96    29.22 Oxygen function amino compounds

97    29.23 Quaternery ammonium salts and hydroxides ; lecithins and other phosphominolipids

98    29.24 Carboxyamide function compounds ; amide function compounds of carbonic acid

99    29.25 Carboxyamide function compounds (including saccharin and its salts) and imine function compounds

100 29.26 Nitrile function compounds

101 29.27 Diazo Azo or azoxy compounds

102 29.28 Organic derivatives of hydrazine or of hydroxylamine

103 29.30 Organo sulphur compounds

104 29.31 Ethylene Diamine Tetra Acetic Acid, Nitrillo Triacetric Acid and their derivatives

105 29.32 Heterocyclic Compounds with oxygen heteroatom(s) only

106 29.33 Heterocyclic compounds with nitrogen heteroatom (s) only

107 29.34 Nucleic acids and their salts ; other heterocyclic compounds

108 29.35 Sulphonamides

109 29.38 Glycosides, natural or reproduced by synthesis and their salts, ethers, esters and other derivatives

110 29.39 Vegetable alkaloids, natural or reproduced

111         29.42    Ethylene Diamine Tetra Acetic Acid, Nitrillo Triacetric Acid and their derivatives

112  32.01 Tanning extracts of vegetable origin ; tannis and their salts, either esters and other derivatives

113 32.02 Synthetic organic tanning substances ; inorganic tanning substances ; tanning preparations, whether or not containing natural tanning substances ; enzymatic preparations for pretanning

114 32.03 Colour matter of vegetable or animal origin (including dyeing extracts but excluding animal black) whether or not chemically defined ; preparations based on colouring matter or vegetable or animal origin

115 32.04 Synthetic organic colouring matter, whether or not chemically defined ; preparations based on synthetic organic colouring matter synthetic organic products of a kind used as fluorescent brightening agents or as luminophores whether or not chemically defined

116 32.05 Colour lakes ; preparations based on colour lakes,

117            Glass frit and other glass, in the form of powder, granules or flakes

118            Others

119 32.11 Prepared dries      3207.9

120             Printing ink whether or not concentrated or solid         3215.9

121 35.01 Casein, Cascinates and other Casein derivatives, casein glues

122 35.07 Enzymers ; prepared enzymes not elsewhere specified or included.

123 38.01 Artificial graphite ; colidial or semicollofial graphite ; preparations based on graphite or other carbon in the form of pastes, blocks, pasters or other semi manufacturers

124 38.02 Activated carbon, activates natural mineral products, animal black, including spent animal black.

125 38.04 Residual lyes from the manufacture of wood pulp, whether or not concentrated desugared or chemically treated, including lignin sulphonates, but excluding tall oil of heading No. 38.03.

126 38.06 Rosin and resin acids and derivatives thereof, rosin spirit and rosin oil, run gums.

127 38.07 Wood tar, wood tar oils, wood creosote, wood naphtha, vegetable pitch, brewers pitch and similar preparations based on rosin, resin acids or on vegetable pitch.

128 38.09 Finishing agents, dye carriers to accelerate to dying or fixing of due stuffs and other products and preparations (for example, dressings and mordants) of a kind used in textile, paper, leather or like industries, not elsewhere specified or included.

129 38.12 Prepared rubber accelerators, compounded plasticisers for rubber or plastics, not elsewhere specified or included ; antioxidising preparations and other compound stabilisers for rubber or plastics.

130 38.14 Reducers and blanket wash/roller wash used in the printing industry

131 38.15 Reaction initiators, reaction accelerators and catalytic preparations, not elsewhere specified or included.

132 38.17 Mixed alkylbenzenes and mixed alkyinaphthalenes, other than those of heading No. 27.07 or 29.02.

133 38.18 Chemical elements doped for use in electronic, in the form of discs, wafers or similar forms, chemical compounds doped for use in electronics

134 38.23 Industrial monocarboxylic fatty acids, acids oil from refining, industrial fatty alcohols

135            Retarders used in the printing industry         3824.9

136            LLDPE/LDPE        3901.1

137            HDPE                 3901.2

138 39.02 Polymers of propylene or of other olefins, in primary forms

139            PVC                          3904.1

140 39.06 Acrylic polymers in primary forms

141 39.07 Polycetals other polythers and epoxide resins in primary forms, polycarbonates, alkyd resins polyallylesters and other polysters in primary forms

142            Polyethylene Terephthalate Chips      3907.6

143 39.08 Polymides in primary forms

144 39.09 Amino-resins, polyphenylene oxide, phenolic resins and polyurethanes in primary forms

145 39.01 Silicones in primary forms

146 39.11 Petroleum resins, coumarone-indene resins, polyterpenes, polysulphides, polysulphones not elsewhere specified or included in primary forms

147 39.12 Cellulose and its chemical derivatives and cellulose ether, not elsewhere specified or not included in primary forms

148 39.13 Natural polymers (for example, alginic acid) and modified natural polymers (for example hardened proteins, chemical derivatives of natural rubber) not elsewhere specified or included, in primary forms

149 39.14 Ion-exchangers based on polymers of heading Nos. 39.01 to 49.13 in primary forms

150 39.19 Self adhesive plates, sheers, film foil, tape, strip of plastic whether or not in roll

151            Flexible plain films        3920.32

152 39.23 Articles for the packing of goods of plastics ; namely boxes, cases, crates, containers, carboys bottles ; jerry cans and their stoppers, lids, caps of plastics (but not including insulated ware)

153 40.01 Natural Rubber, natural gums, in primary forms or in plates, sheets or strips

154 40.02 Synthetic rubber and factice derived from oils in primary forms or in plates, sheets or strip ; mixtures of any product of heading No. 40.01 with any product of this heading in primary forms or in plates, sheets or strip

155 40.03 Reclaimed rubber in primary forms or in plates, sheets or strip

156 40.05 Compounded rubber, unvulcanised, in primary forms or in plates, sheets or strip other than the forms and articles of unvulcanised rubber described in heading No. 40.06

157 47.01 Mechanical wood pulp, chemical wood pulp, semi-chemical wood pulp and pulp and pulps of other fibrous cellulosic materials

158 48.19 Cartons (including flattended or folded cartons) boxes (including flattened or folded boxes) cases, bags and other packing containers of paper, paperboard, whether in assembled or unassembled condition

159 48.21 Paper printed labels and paperboard printed labels

160 48.23 Paper self adhesive tape and printed wrappers used for packing

161            Partially Oriented Yarn, Polyester Texturised 5402.42

                 Yarn and waste thereof

162            Polyester Staple Fibre and Polyester Staple   5503.2

                 Fibre Fill

163            Polyester Staple Fibre waste            5505.1

164            Sacks and bags of a kind used for the packing        6305.1

                 of goods of jute or of other textile based fibres of heading No. 53.03

165 70.07 Carboys bottles, jars, phials of glass, of a kind used for the packing of goods ; stoppers, lids and other closures of glass

166 83.09 Stoppers, caps and lids, (including crown corks, screw caps and pouring stoppers) capsules for bottles, threaded bungs, bund covers, seals and other packing accessories of base metal.

167            Any other industrial input or packing material as Government may notify from time to time

Fourth Schedule

Goods in respect of which tax is leviable at first point of sale under sub-section (1) of section 6 (Out side VAT)

Sl.     Sub-    Description of Goods Rate

No.   entry                                 of tax                                                              per cent

1.             Petroleum Products,—

      1.      Aviation Turbine Fuel                                           34

      2.      Compressed Natural Gas                                      28

      3.      High Speed Diesel Oil                                           24

      4.      Kerosene distributed other than through Public

               Distribution System (PDS)                                    20

      5.      Motor spirit (including light diesel oil but

               excluding petrol, aviation turbine fuel and high

               speed diesel oil)                                                 41

      6.      Naphtha                                                           22

      7.      Petrol other than Naphtha                                    28

      8.      Other petroleum products not elsewhere men-

               tioned in the schedule or in the Third

               Schedule.                                                         30

      9.      L.P.G.                                                               16

      10.     Lubricating Oil, Grease, Brake Fluid, trans-

               former oil and other quenching oils                         24

2.             Foreign Liquor,—

      1.      Beer and Wine                                                   60

      2.      Other than Beer and Wine                                    90

      3.      Ganja and Opium                                                85

Fifth Schedule

Goods in repect of which tax is leviable at all points of sale at the rate of 12.5% under sub-section (1) of section 6

Sl.             Description of Goods                                   Rate of tax

No.                                                                                                                          per cent

1.    Goods not coming under the First Schedule                   12.5

      to the Fourth Schedule