ASSAM ENTRY TAX ACT, 2001

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Whereas it is expedient to provide for the imposition of a tax on the entry of goods into any local area in Assam for consumption, use or sale therein and for matters connected therewith.

It is hereby enacted in the Fifty-second Year of the Republic of India as follows: —

S.1 Short title, extent and commencement

(1) This Act may be called the Assam Entry Tax Act, 2001.

(2) It extends to the whole of Assam.

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

S.2 Definitions

(1) In this Act, unless the context otherwise requires,—

(a) “Assessing Authority” in relation to any importer means the authority competent to assess such importer;

(b) “Entry of goods into a local area” with all its grammatical variation and cognate expressions means entry of the goods as specified in the Schedule into a local area from any place outside that local area including a place outside the State for consumption, use or sale therein;

(c) “Entry Tax” means a tax on the entry of goods into a local area for consumption, use or sale therein, levied and payable in accordance with the provisions of this Act;

(d) “Importer” means a person who brings the goods as specified in the Schedule into a local area from any place outside that local area including a place outside the State for consumption, use or sale therein including for consumption or use of such goods in works co

S.3 Levy of Tax

(1) There shall be levied and collected an entry tax on the entry of goods specified in the Schedule into any local area for consumption, use or sale therein at such rate, not exceeding twenty per centum, as the State Government may, by notification, fix in this behalf and different rates may be fixed for different class or classes of specified goods and such tax shall be paid by every importer of such goods, whether he imports such goods on his own account or on account of his principal or any other person or takes delivery or is entitled to take delivery of such goods on such entry:

Provided that in the case of specified Goods both old and new which are being imported into a local area for use therein for a specified period and are taken back after completion of their use, entry tax shall be payable on the purchase value of the Specified Goods as ascertained under the second proviso to clause (h) of sub-section (1) of Section 2.

S.3A Composition of tax authority

Notwithstanding anything contained in this Act, the State Government may, by notification published in the Official Gazette and subject to such conditions and restrictions, if any, as may be specified therein, permit any class of importer to pay in lieu of the tax payable under this Act, for any period, an amount linked with the volume or quantity of specified goods or some such other thing to be determined by the State Government by way of composition and to be paid at such intervals and in such manner, as may be specified in such notification.

S.4 Levy of Tax

(1) Notwithstanding anything contained in Section 3 above, there shall be levied and collected a tax on the entry of any motor vehicle into a local area for use or sale therein by an importer which-is liable for registration or assignment of a new registration mark in the State under the Motor Vehicles Act, 1988 (Central Act 59 of 1988).

(2) The tax shall be payable and paid by an importer within 30 days from the date of the entry of a motor vehicle into the local area or before an application is made for registration of the vehicle under the Motor Vehicles Act, 1988 (Central Act 59 of 1988), whichever is earlier.

Exemption of tax in certain Circumstances

(3) No tax shall be levied and collected in respect of a motor vehicle which is registered in any Union Territory or any other State under the Motor Vehicles Act, 1988 (Central Act 59 of 1988), fifteen months prior to the date on which a new regist

S.5 Exemption from tax

Notwithstanding anything contained in Section 3 and Section 4, and subject to production of documentary proof, no tax under this Act shall be levied in respect of specified goods which are also subject to levy of tax under the provisions of the Assam Value Added Tax Act, 2003 (Assam Act 8 of 2005):

(i) if the sales of such specified goods inside the State, made by the importer are sales within the meaning of clause (33) of Section 2 of the said Act, excepting sales falling under sub-clause (ii), (iii) and (iv) of the said clause and if he is liable to pay tax on such sales as a registered dealer under the Assam Value Added Tax Act, 2003;

(ii) if the sales of such specified goods are made by the importer in the course of interstate trade or commerce or in the course of export out of the territory of India or such goods are otherwise despatched outside the State by way of stock transfer and if he is a registered dealer un

S.5A Deductions

Where the specified goods, the sales of which are exempted under the Assam Value Added Tax Act, 2003, (Assam Act 8 of 2005), for reasons of such goods being included in Schedule I to the said Act, which after entry into a local area are sold by an importer in the course of interstate trade or commerce or in the course of export out of the territory of India or are despatched outside the State by way of stock transfer, the purchase value of such specified goods subsequently sold or sent out in the manner mentioned above shall, subject to production of proof, be deducted from the total purchase value of determine the taxable purchase value.

S.6 Principles governing the levy of entry tax

The entry tax payable by an importer shall be levied in accordance with the principles as stated below:

(a) Entry tax shall not be payable unless the importer effects entry of the goods specified in the Schedule into a local area.

(b) Where any such goods are consumed, used or sold in local area by the importer, it shall be presumed, until the contrary is proved by him, that such goods had entered into that local area for consumption, use or sale therein.

S.7 Registration, return, assessment, collection etc. of entry tax

Subject to the provisions of the Act and the Rules made thereunder, the administration of this Act in so far as it relates to registration submission of returns by the importers and collection of entry tax from them, shall vest in the authorities specified in or under the Assam Value Added Tax Act, 2003, (Assam Act 8 of 2005) and accordingly, the said authorities, empowered to register, receive returns, to assess or reassess and collect tax and enforce payment of any tax under the said Act shall register, receive returns, assess, re-assess and collect entry tax and enforce payment of entry tax, including imposition and realisation of any penalty payable by an importer under this Act as if the tax or penalty payable by such importer under this Act is a tax or penalty payable under the Law and for this purpose they may exercise all or any of the powers conferred upon them by or under that Law.

S.8 Provisions of the Assam Value Added Tax Act, 2003, (Assam Act 8 of 2005) to apply

Subject to the provisions of this Act and rules made thereunder, Sections 19, 21, 22, 23, 25, 27, 28, 29, 31, 32, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45,46,47,48,49, 50, 52, 53, 55,59, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 94, 95, 96, 97,98, 99,100,102,106, 109 and 110 of the Assam Value Added Tax Act, 2003 and the rules made thereunder, orders, notifications issued thereunder shall mutatis mutandis apply to an importer in respect of entry tax levied and payable under this Act, as if those sections were mutatis mutandis, incorporated in this Act and the rules framed and orders and notifications issued under those sections were mutatis mutandis issued under the relevant sections so incorporated under this Act.

S.8A Utilisation of the proceeds of the tax

Subject to such condition as may be prescribed such sum of the proceeds of the tax as may be determined by the State Government shall be spent by the State Government for the purpose of development of trading facilities, maintenance of roads and other infra#31;structures in the local area.

S.8B Presumption that the incidence of the tax has been passed on to the buyer

(1) Every importer who has paid the entry tax on any specified goods under this Act, shall, unless the contrary is proved by him, deemed to have passed on the full incidence of such tax to the buyer of such goods.

(2) If any claim arises for refund of any tax paid by an importer, he may make an application for refund of such tax to the Prescribed Authority before the expiry of ninety days from the date on which such claim arises in such form and in such manner as may be prescribed and the application shall be accompanied by such documentary evidence as may be required to establish that—

(a) there was no liability to pay tax under the Act;

(b) the amount of tax in relation to which the refund is claimed was collected from or paid by him; and

(3) If, on receipt of any such applica

S.9 Power to make rules

(1) The State Government may, by notification in the Official Gazette and subject to the condition of previous publication, make Rules for carrying out the purpose of this Act:

Provided that, if the State Government is satisfied that circumstances exist which render it necessary to take immediate actions, it may dispense with the condition of previous publication of any Rules to be made under this Act.

(2) All rules made and notifications issued by the State Government under this Act shall be laid, as soon as may be, after it is published, before the State Legislature while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions in which it is so laid or the sessions immediately following, and if the State Legislature agrees in making any modifications in the rule or notification or that the rule or notification should not be made, the rule or notific