Pre. No. Legislative 24/200

Haryana Act No. 13 of 2000

[Dated 19th September, 2000]

Legislative Department

The following Act of the Legislature of the State of Haryana received the assent of the Governor of Haryana on the 19th September, 2000 and is hereby published for general information :-

An Act [to provide for levy and collection of tax on the entry into a local area of the State of Haryana, of a motor vehicle for use or sale, and of other goods for use or consumption, therein and matters incidental thereto and connected therewith.]

Be it enacted by the Legislature of the State of Haryana in the Fifty-first Year of the Public of India as follows :-"

Cha.I Preliminary

S.1 Short title, extent and commencement

(1) This Act may be called the Haryana Local Area Development Tax Act, 2000.

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

(3) It shall be deemed to have come into force with effect from 5th May, 2000.

S.2 Definitions

In this Act, unless the context otherwise requires, -

(1) "appellate authority" means any person appointed by the State Government by notification in the Official Gazette to hear appeals under this Act;

(2) "assesee" means a person by whom tax is payable;

(3) "assessing authority" means any person appointed by the State Government by notification in the Official Gazette to act as an assessing authority under this Act;

(4) "Assistant Excise and Taxation Officer" means an officer appointed an such by the State Government, by notification, in the Official Gazette;

(5) "bring goods into a local area" means causing the entry of goods into a local area by bringing them inside the local area or causing the goods to be brought inside the local area from any place outside the local area;

(6) "business" includes any trade, commerce, manufacture, w

Cha.II Levy of Tax

S.3 Levy of tax

(1) There shall be levied and collected a tax on entry into a local area, of all goods, except those specified in Schedule A, for consumption or use therein, at such rates [not exceeding twenty per cent of the value of petroleum based fuels and not exceeding ten per cent of the value of the other goods], as may, by notification, be specified by the State Government, and different dates and different rates may be specified in respect of different goods or different classes of goods or for different local areas.

(2) The tax levied under sub-section (1) shall be paid by the importer :

Provided that an importer shall not be liable to pay tax so long so the aggregate value of taxable goods he brings into or receives on their entry into any local area does not, in a year, exceed ten lakh rupees or such other sum as the State Government may, by notification, specify :

Provided further that an importer who has

S.4 Registration

Every importer who is liable to pay tax under sub-section (2) of Section 3 of this act shall get himself registered under this Act in such manner on payment of such fee and within such period as may be prescribed :

Provided that an importer who is fully exempt from payment of tax by virtue of notification issued under Section 11 of this Act, shall not be required to obtain registration under this Act so long as such notification remains in force.

Cha.II(a) .

S.4(a) Definitions

In this Chapter, unless the context otherwise requires, -

"accessories" means air-conditioners, music system and any other articles fitted to a motor vehicle not included in the original invoice;

(b) "bring motor vehicle into a local area" means causing the entry of motor vehicle into a local area by bringing it inside the local area or causing it to be brought inside the local area from any place outside the local area;

(c) "entry of a motor vehicle into a local area" with all its grammatical variations and cognate expressions means entry to motor vehicle into a local area from any place outside it for use or sale therein;

(d) "importer of a motor vehicle" means a person who brings a motor vehicle into a local area from any place outside the local area for use or sale therein and who owns the motor vehicle at the time of its entry into a local area and includes a person who owns

S.4(b) Levy of tax

(1) Notwithstanding anything contained in Section 3 of this Act, there shall be levied and collected a tax on the entry of a motor vehicle into a local area for use or sale therein :

Provided that such motor vehicle is liable for registration or assignment of a new registration mark in the State under the Motor Vehicle Act, 1988 (59 of 1988):

Provided further that no tax shall be levied and collected in respect of a motor vehicle which was registered in any Union Territory or any other State under the Motor Vehicles Act, 1988 (59 of 1988), for a period of fifteen months or more before the date on which it is registered in the State under that Act.

(2) The tax shall be levied on purchase value of a motor vehicle at the rate equal to the difference between the sales tax rate applicable in the State and the sales tax or the central sales tax rate charged on the sale of the motor vehicle in the invoice rel

S.4(c) Computation and payment of tax

(1) The importer of a motor vehicle shall, before its registration under the Motor Vehicles Act, 1988 (59 of 1988), in the State, compute his liability to pay tax under this Ac t by multiplying the purchase value of a motor vehicle with the rate of tax levied under sub-section (2) of Section 4-B of this Act. He shall deposit the tax so computed in the Government treasury under the Head of the Account "0042-Taxes on Goods and Passengers (1) 106-Tax on entry of Goods into Local Areas; (3) Haryana Local Areas Development Tax" and shall produce the computation sheet along with the invoice relating to the purchase of the motor vehicle and the treasury receipt in respect of payment of tax before the assessing authority of the circle in which his business is situate. The assessing authority shall check the computation of tax liability and verify the payment of tax and shall issue a notice of assessment and demand to the importer of a motor vehicle in respect of the motor ve

S.4(d) Exemption of tax in certain circumstances

Where any person brings a motor vehicle into a local area for his personal use within a period of fifteen months from the date of its registration in any Union Territory or any other State under the Motor Vehicles Act, 1988 (59 of 1988), and that such entry is occasioned as a result of shifting the place of his residence from such Union Territory or State into this State, Commissioner may, by order in writing, on application made to him in this regard, exempt such person from the payment of entry tax on entry of such vehicle subject to production of proof in this regard by him.

Cha.III Return, Assessment, Payment, Recovery and Collection of Tax

S.5 Deduction from gross turnover

(1) In calculating the turnover liable to tax for a period, an importer may deduct from his gross turnover during that period -

(a) the value of goods specified in Schedule A;

(b) the value of goods which have, without use or consumption, been delivered outside the local area;

(c) the value of goods which have been subjected to tax once under this Act, either as such or in some other form;

(d) the value of goods on which sales tax has been paid or has become payable to the State;

[(e) the value of plant, machinery, equipment and tools, brought or received on lease for use in manufacture or processing of goods;]

(f) [the value of goods brought or received in a local area for resale or for use or consumption therein in the manufacture or processing of goods, left in stock whether as such or in different form, lying with him in the local ar

S.6 Returns and assessment

(1) (a) Every importer registered under this Act and every importer whose application for the registration under this Act is pending with the assessing authority shall every year or at such shorter intervals as may be prescribed, submit a return to the assessing authority within such period and in such manner containing such particulars as may be prescribed. The proforma of return, the interval of period at which and the time period within which a return is required to be filed may be prescribed differently for different class of importers, inter alia, depending upon the extent of business, annual tax liability and the class of goods usually dealt in :

Provided that an importer who has become liable to pay tax under this Act any day falling between 5th May, 2000 and 30th June 2000 (both days inclusive) shall file the return for the period from the date of liability to pay tax by him to 30th June, 2000 by 30th September, 2000 and shall pay the ta

S.7 Burden of proof and penalty for furnishing false evidence

(1) For the purpose of assessment of tax under this Act, the burden of proving that the turnover disclosed in any return filed under Section 6, or stock of any goods held by any person are not leviable to tax under this Act or exempt from tax or leviable to tax at a rate lower than the rate notified under sub-section (1) of Section 3, shall be on such person.

(2) If any authority under this Act, during the course of any proceeding before it, finds that any person has, with a view to claim that he or any other person is not liable to pay tax on entry of any goods into a local area or is liable to pay tax at a rate lower than the rate applicable, made, furnished or issued any cash-memorandum, bill of sale, delivery note, voucher, declaration, certificate or any other document produced before such authority in respect of such goods, which such authority has reason to believe that such person knows or has reason to believe to be false or incorrect,

S.8 Security deposit

(1) The assessing authority may, for good and sufficient reasons, demand from any assessee liable to pay tax under this Act, security for the timely discharge of his outstanding and anticipated tax liability, and on such demand such assessee shall furnish the same within one month from the date of receipt of an order demanding security from the aforesaid authority.

(2) The amount of security demanded under sub-section (1) for anticipated tax liability shall not, unless the assessee is in default of filing of return or payment of tax due according to the returns filed by him, exceed an amount equivalent to the tax anticipated to be payable by the assessee for a year :

Provided that the assessing authority shall have power to demand at any time additional security if it has reasons to believe that the security obtained was not sufficient after affording the assessee an opportunity of being heard.

(3) The

S.9 Payment and recovery of tax

(1) The amount of any tax or interest assessed and penalty imposed under this Act by any authority shall be paid by the assessee in the manner prescribed by such date as may be specified in the notice of demand served upon the assessee and the date to be specified shall not be less than fifteen days but not more than thirty days from the date of service of such notice :

Provided that the prescribed authority, may, in the manner and subject to such conditions, as may be prescribed, in respect of any assessee, for reasons to be recorded in writing, extend the date of payment, specified in the notice of demand, or allow such importer to pay the amount due by instalments against an adequate security, subject to payment of interest for the extended period/periods of instalments till the actual date of payment at the rate specified in sub-section (5) of Section 6 of this Act.

(2) The amount of any tax, interest and penalty impose

S.10 Power to withhold refund in certain cases

(1) Where an order giving rise to refund is the subject-matter of an appeal, revision, reference or re- assessment and the authority competent to grant such refund is of the opinion that the grant of refund is likely to adversely affect the revenue, such authority may, with the prior approval of the Commissioner, withhold the refund till such time as the Commissioner may determine which may determine which may at the most extend to finalisation of the pending proceeding :

Provided that if the affected person at any time furnishes security equal to the amount of refund due him in the form of either guarantee from a Scheduled Bank or deposit in post office saving bank account or saving certificates or bonds of the Government of India, pledged to the assessing authority, he shall forthwith be allowed refund to the amount due to him.

S.11 Power of State Government to exempt or reduce tax.

(1) The State Government may, if in its opinion it is necessary in public interest so to do, by notification and subject to such restrictions and conditions and for such period as may be specified in the notification, exempt or reduce the tax payable by any class of importers under this Act.

(2) Where any restriction or condition specified under a notification issued under sub-section (1) is contravened or is not observed by an importer or where a declaration, if any, specified under the said notification for observance of any condition or restriction imposed therein, furnished is found to be wrong, then such importer shall, in additional to tax calculated at the full rate, notified under sub-section (1) of Section 3, on the value of such goods in respect of which such contravention or non-observation has taken place or a wrong declaration has been furnished, be liable to pay interest in terms of sub-section (5) of Section 6 of this Act :

S.12 The authorities and the admission of tax

(1) Subject to other provisions of this Act and the rules framed thereunder, the authorities for the time being empowered to assess, collect and enforce payment of tax, interest and penalty under the [under the Haryana Value Added Tax Act, 2003] (hereinafter called the "Sales Tax Act"), shall assess, collect and enforce payment of tax, interest and penalty, payable by an assessee under this Act as if tax, interest and penalty payable by such an assessee under this Act is a tax, interest or penalty payable under the Sales Tax Act, and for this purpose they may exercise all or any of the powers they have under the Sales Tax Act, and the provisions of the Sales Tax Act relating to registration of the transferee of any business, imposition of the tax liability of a person carrying on business on the transferee of, or successor to such business, transfer of liability of any firm or Hindu Undivided Family to pay tax in the event of the dissolution of such firm or partition

Cha.V Maintenance of Accounts, Inspection of Business Premises and Accounts, Checking of Goods in Movement, etc.

S.13 Maintenance of accounts by importers, issue of sale bills or cash memorandum

(1) Every importer registered under this Act and every importer who is liable for registration shall maintain and keep true and complete accounts relating to his business as well as such other registers or records as may be prescribed in this regard. All such accounts, registers or record shall be retained by the importer in his safe custody till his assessment or re-assessment for the relevant year is completed or in cases where any appeal, revision, reference or other proceedings in respect of such year has been filed and is pending, the same is disposed of, or for a period of at least six years from the end of the year to which these relate, whichever is later.

(2) Every importer registered under this Act and every importer whose application for registration under this Act is pending with the assessing authority shall, save as specified in sub-section (3) of this Section, issue -

(i) in respect of all goods sold by him,

S.14 Power to order production of accounts and power of entry, inspection and seizure

(1) The Commissioner or an officer not below the rank of Assistant Excise and Taxation Officer may, for the purposes of this Act, require any importer carrying on business in any goods to produce before him the accounts and other documents, and to furnish any information relating to the stocks of the goods or purchase, sales, receipts and deliveries of the goods by the importer and also any other information relating to his business.

(2)(a) All accounts and registers maintained by an importer in the course of his business and documents relating to stock, purchase, sale, receipt and delivery of goods, the goods in his possession and all offices, shops, godowns, vessels, receptacles and vehicles used by him in relation to his business, shall be open to inspection at all reasonable times by the Commissioner or an officer not below the rank of Assistant Excise and Taxation Officer.

(b) For the purpose of inspection referred to

S.15 Checking of goods in movement

(1) That owner or person incharge of the goods and, when the goods are carried by a goods carrier, the driver or any other person-in-charge of the goods carrier, shall carry with him in respect of the goods carrier-

(i) record of ownership of the goods carrier;

(ii) trip sheet or log-book, containing such particulars, as may be prescribed;

and in respect of the goods being carried -

(i) goods receipt;

(ii) delivery-note or cash-memorandum or bill of sale/purchase, as the case may be, containing such particulars as may be prescribed;

(iii) declaration duly filled and signed by the consignor or consignee obtained from such authority on payment of such fee and containing such particulars, as may be prescribed,

and produce the same before any officer of the department not below the rank of an Assistant Excise and Taxati

S.16 Forwarding agency, etc. to submit returns

Every clearing or forwarding house or agency, transporting agency, railway out-agency, shipping out-agency, courier service in the State shall submit to the assessing authority of the area such returns as may be prescribed in respect of all goods cleared, forwarded, transported or shipped by it into the concerned local area. The assessing authority concerned shall have the power to all for and examine the books of accounts or other documents in the possession of such agency with a view to verify the correctness of the return submitted.

S.17 Submission of certain records by owners, etc., of goods carriers

The owner or other person incharge of a goods carrier shall, in respect of the goods transported by him in such goods carriers submit to the assessing authority having jurisdiction over the local area in which the goods are delivered, such particulars thereof within such time and manner as may be prescribed.

Cha.IV Miscellaneous

S.18 Collection of tax by registered importer

(1) No person, who is not a registered importer, shall collect any amount by way of tax under this Act on entry of any goods into a local area and no registered importer shall make any collection except in accordance with this Act and the rules made thereunder.

(2) Where any amount is collected by way of tax or purporting to be by way of tax by any person in contravention of sub-section (1), such person shall pay the amount so collected to the assessing authority as if the said amount has been collected as tax payable under this Act and if the said person fails to make the payment, he shall, in addition to making the payment of the said amount, be liable to pay, by order of the assessing authority passed after giving him opportunity of being heard, a penalty which may extend equal to the said amount.

(3) Any amount collected by any person considering the same to be tax payable under this Act, to the extent it is not due as

S.19 Offences and penalties

(1) Whosoever contravenes, or fails to comply with any of the provisions of this Act or the rules made thereunder or any order or direction made or given thereunder, shall, if no interest, penalty or best judgment assessment is provided under this Act for such contravention or failure, be liable to imposition of a penalty, not exceeding two thousand rupees or such other higher amount which shall not be more than five thousand rupees, as may be prescribed, and where such contravention or failure is a continuing one, to a daily penalty not exceeding fifty rupees or such other higher amount which shall not be more than two hundred rupees, as may be prescribed, during the period of continuance of the contravention or failure.

(2) An assessing authority or an officer not below the rank of an Assistant Excise and Taxation Officer may, after affording to the person concerned a reasonable opportunity of being heard, impose the penalty mentioned in sub-

S.20 Investigation of offences

An officer not below the rank of Assistant Excise and Taxation Officer shall, for the purpose of any proceeding, assessment, inquiry or checking under this Act or rules framed thereunder, exercise the powers conferred by the Code of Criminal Procedure, 1973 (Act 2 of 1974), upon an officer-in-charge of a police station for the investigation of a cognizable offence.

S.21 Refund

(1) The assessing authority or an officer not below the rank of Assistant Excise and Taxation Officer shall, in the prescribed manner, refund to an importer or to any other person the amount of tax or penalty or interest paid by him in excess of the amount due from him under this Act, either by a refund voucher, or, at the option of the importer by adjustment of the amount so paid against the amount due from him in respect of any other period :

Provided that the assessing authority referred to in sub-section (1) shall first adjust the amount to be refunded towards the recovery of any amount due, on the date of adjustment from the importer and shall then refund the balance, if any.

(2) Where an amount required to be refunded by the assessing authority to any person by virtue of an order issued under this Act is not so refunded to him within the period as may be prescribed, such person shall be entitled to interest at such ra

S.22 Utilisation of proceeds of tax

The tax collected under this Act shall be distributed by the State Government amongst the local bodies to be utilised for the development or local areas.

["Explanation. - In this section "the development of local areas" means developing and maintaining infrastructure facilities useful for free flow of trade and commerce.]

S.23 Protection of action taken in good faith

No suit, prosecution or other legal proceedings shall lie against any officer of Government for anything which is in good faith done or intended to be done under this Act or the rules made thereunder.

S.24 Rounding off of tax

The amount of tax, penalty, interest or any other sum payable, and the amount of refund due, under the provisions of 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:

Provided that nothing in this section shall apply for the purposes of collection by an importer of any amount by way of tax under this Act.

S.25 Power to amend Schedule

The State Government may, after giving by notification, a reasonable notice, ordinarily of not less than ten days of its intention to do so, by notification, add to, or omit, or otherwise amend Schedule and the Schedule shall be deemed to be amended accordingly.

S.26 Power to make rules

(1) The State Government may, subject to the condition of previous publication, make rules by notification 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) the assessment to tax in respect of a business which is discontinued or the ownership of which has changed;

(c) the assessment to tax in respect of a business owned by minors and other incapacitated persons residing outside the State of Haryana;

(d) the assessment of tax under this Act of any goods which have escaped assessment;

(e) procedure for registration of importers;

(f) refund of tax collected if the goods have not been consumed or used within the local area;

Every rule made under this Act and notification issued under the provisions of this Act shall be laid as soon as may be after it is published before the State Legislative Assembly while it is in session, for a total period of fourteen days which may be comprised in one session or two or more successive sessions, and if before the expiry of the session in which it is so laid or the session immediately following, the Legislative Assembly agrees that the rules should be either modified or annulled, 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 rule.

S.28 Power to remove difficulties

If any difficulty arises in giving effect to the provisions of this Act, the State Government may, by notification, make such provision as appears to it to be necessary or expedient for removing the difficulty.

S.29 Repeal and saving

(1) The Haryana Local Area, Development Tax Ordinance, 2000 (Haryana Ordinance No. 10 of 2000), is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance, shall be deemed to have been done or taken under this Act.

Sch.A .

[See Sections 3(1) and 5(1)(a)]

1. Bajra, Jowar and Maize.

2. Cattle feed and poultry feed.

3. Celery seeds.

4. Common salt.

5. Cotton seed.

6. Electric energy.

7. Flowers.

8. Fresh vegetables, fruits, milk, meat including meat on hoof, poultry, fish and eggs.

9. Gram.

10. Hand spun yarn.

11. Kikar bark.

12. Newsprint and other materials used in the printing of newspapers, periodicals, magazines etc. registered with Registrar of Newspaper of India.

13. Sugarcane.

14. Textiles, tobacco and sugar on which additional excise duty in lieu of sales tax is leviable notwithstanding that the rate of such duty is nil.

15. Tyres, tubes and flaps of anima

Anne. .

A. Ordinary Agriculture Implements

1. Hand Hoe or Khurpa

2. Sickle

3. Spade

4. Baguri

5. Hand-wheel Hoe

6. Horticultural tools like budding, grafting knife secateur, Pruming shear or hook, hedge shear, sprinkler, rake

7. Sprayer, duster and sprayer-cum-duster

8. Soil Injector

9. Jandra

10. Wheel barrow

11. Winnowing fan or winnower

12. Dibbler

13. Gandasa

14. Puddler

15. Fertilizer seed broadcaster

16. Maize sheller

17. Groundnut decorticator

18. Manure or seed screen

19. Flame gun

20. Seed grader

21. Hand driven