BENGAL FINANCE (SALES TAX) (WEST BENGAL AMENDMENT) ACT, 1950

Act No. 48 of 1950

05th November, 1950

An Act further to amend the Bengal Finance (Sales Tax) Act, 1941. Whereas it is expedient further to amend the Bengal Finance (Sales Tax) Act, 1941 (Ben. Act VI of 1941); It is hereby enacted as follows:--

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S.1 Short title and commencement

(1) This Act may be called the Bengal Finance (Sales Tax) (West Bengal Amendment) Act, 1950.

(2) This section shall come into force at once; sections 13 and 16 shall come into force immediately on the Bengal Finance (Sales Tax) (West Bengal Amendment) Ordinance, 1950 (West Ben. Ord. X of 1950) ceasing to operate; the remaining sections of the Act shall come into force on such date or dates as the State Government may, by notification in the Official Gazette, appoint and for this purpose different dates may be appointed for different sections.

S.2 Amendment of section 2 of Bengal Act VI of 1941

In section 2 of the Bengal Finance (Sales Tax) Act, 1941 (hereinafter referred to as the said Act),--

(a) in clause (b),--
- (i) for the words "cash or deferred payment or other valuable consideration" the words "money consideration" shall be substituted;
- (ii) in sub-clause (iii) after the words "motor vehicle" the words "or any sea-going vessel" shall be added;
(b) for clause (c) the following clause shall be substituted, namely:--
'(c) "dealer" means any person who carries on the business of selling goods in West Bengal and includes the Government.

Explanation 1.--A co-operative society or a club or any association which sells goods to its members is a dealer.

Explanation 2.--A factor, a broker, a commission agent, a del credere agent, an auctioneer or any other mercantile agent, by whatever name called, and whether of the same description as hereinbefore mentioned or not, who carries on th
S.3 Amendment of section 4

In section 4 of the said Act,--
- (a) in sub-section (1), for the words and figures Subject to the provisions of sections 5 and 6 and with the word With shall be substituted;
- (b) for sub-section (2) the following sub-section shall be substituted, namely:--
  (2) Every dealer to whom sub-section (1) does not apply, shall, if his gross turnover calculated from the commencement of any year exceeds the taxable quantum at any time within such year, be liable to pay tax under this Act, on the expiry of two months from the date on which such gross turnover first exceeds the taxable quantum, on all sales effected after such expiry.;
- (c) for sub-section (4) the following sub-section shall be substituted, namely:--
  (4) Every dealer whose liability to pay, tax under this Act has ceased under the provisions of subsection (3), shall, if his gross turnover calculated from the commencement of any year again exceeds the taxable quantum
  S.4 Amendment of section 5
  
  In sub-section (2) of section 5 of the said Act,--
  - (a) for sub-clause (ii) of clause (a), the following sub-clause shall be substituted, namely:--
    (ii) sales to a registered dealer--
    
    of goods of the class or classes specified in the certificate of registration of such dealer, as being intended for re-Bale by him, or for use by him in the manufacture of goods for sale or for use by him in the execution of any contract;
    
    and
    
    of containers or other materials for the packing of goods of the class or classes so specified:
    
    Provided that in the case of such sales a declaration duly filled up and signed by the registered dealer to whom the goods are sold and containing prescribed particulars on a prescribed form obtainable from the prescribed authority is furnished in the prescribed manner by the dealer who sells the goods.;
  - (b) after sub-clause (ii) of clause (a), the following sub-clause shall be inserted, namely:--
  S.5 Amendment of section 7
  
  In section 7 of the said Act,--
  - (a) in sub-section (1), for the words under this Act the words and figure under section 4 of this Act shall be substituted,
  - (b) for sub-section (6) the following sub-section shall be substituted, namely:--
    (6) When--
    - (a) any business in respect of which a certificate has been granted to a dealer on an application made, has been discontinued or transferred, or
    - (b) a dealer has ceased to be liable to pay tax under section 4 of this Act, the Commissioner shall cancel the registration..
  S.6 Amendment of section 8
  
  To sub-section (1) of section 8 of the said Act, the following explanation shall be added, namely:--
  
  Explanation.--A dealer may apply for registration under this section although he deals exclusively in one or more classes of goods specified in the first column of the Schedule,.
  
  S.7 Substitution of new section for section 9
  
  For section 9 of the said Act, the following section shall he substituted, namely:--
  
  9. List of registered dealers to be published.-
  
  The Commissioner shall, as soon as may be after the commencement of the Bengal Finance (Sales Tax) (West Bengal Amendment) Act, 1950, publish in the Official Gazette a list of the names and addresses of the registered dealers together with a description of the goods covered by the certificate of the registration, and thereafter shall in like manner from time to time publish--
  - (a) such particulars of any dealer who is subsequently registered or whose registration certificate is amended or whose registration is cancelled as soon as may be after such registration or cancellation, and
  - (b) a consolidated list embodying the modification made in the first list published under this section,.
  S.8 Amendment of section 10
  
  In section 10 of the said Act, the proviso to sub-section (2) shall be omitted.
  
  S.9 Amendment of section 11
  
  In section 11 of the said Act,--
  - (a) in sub-section (2),--
    - (i) for the words twelve months the words eighteen months shall be substituted,
    - (ii) for the words to submit a return in respect of any period by the prescribed date the words to submit in respect of any period, a return accompanied by a receipt from a Government Treasury or the Reserve Bank of India, as required under sub-section (3) of section 10, by the prescribed date shall be substituted;
  - (b) in sub-section (2), for the words who imports for sale any goods into West Bengal or himself manufactures or produces any goods for sale, has been liable to pay tax under this Act in respect of any period and has nevertheless failed to apply for registration, the Commissioner shall, at any time within three calendar years from the commencement of this Act and thereafter within twelve months from the expiry of such period the words who has been liable to pay tax under
  S.10 Substitution of new section for section 12
  
  For section 12 of the said Act, the following section shall be substituted, namely:--
  
  12 Refunds.-
  
  (1) The Commissioner shall, in the prescribed manner, refund to a dealer applying in this behalf any amount of tax or penalty paid by such dealer in excess of the amount due from him under this Act, either by cash payment or, at the option of the dealer, by deduction of such excess from the amount of tax due in respect of other period:
  
  Provided that no refund shall be made unless the claim for refund is made within twelve months from the date of the assessment of tax or the date of the imposition of penalty or within six months from the date of any final order passed on appeal, revision or review under section 20 or reference under section 21, whichever period expires later.
  
  (2) Nothing in sub-section (1) shall be deemed to empower the Commissioner to amend, vary or rescind any assessment or to amend, vary or rescind any order passed on appeal, revision or
  S.11 Amendment of section 14
  
  In section 14 of the said Act,--
  - (a) for sub-section (1), the following sub-section shall be substituted, namely:--
    (1) The Commissioner may, subject to such conditions as may be prescribed, require any dealer--
    - (a) to produce before him any accounts, registers or documents,
    - (b) to furnish any information, relating to the stock of goods of, or purchases, sales or deliveries of goods by, the dealer or relating to any other matter,
    as may be deemed necessary for the purposes of this Act.;
  - (b) for sub-section (2), the following sub-section shall be substituted, namely:--
    (2) (a) All accounts, registers and documents relating to the stocks of goods of, or purchases, sales and deliveries of goods by, any dealer; and
    
    (b) all goods kept in any place of business of any dealer shall at all reasonable times be open to inspection by the Commissioner.;
  - (c) at the end of sub-section
  S.12 Amendment of section 15
  
  In section 15 of the said Act the words and figures section 18 and shall be omitted.
  
  S.13 Amendment of section 16
  
  In section 16 of the said Act,--
  - (a) in clause (a) after the words any place of business the words or effects or comes to know of any other change in the ownership of the business shall be inserted;
  - (b) for clause (c) the following clause shall be substituted, namely:--
    (c) changes the name or nature of his business or effects any change in the class or classes of goods in which he carries on his business and which is or are specified in his certificate of registration..
  S.14 Substitution of new section for section 17
  
  For section 17 of the said Act, the following section shall be substituted, namely:--
  
  17. Transfer of business.-
  
  Where the ownership of the business of a registered dealer is entirely transferred and the transferee carries on such business either in its old name or in some other name, the transferee shall for all the purposes of this Act (except for liabilities under this Act already discharged by such dealer) be deemed to be and to have always been registered as if the certificate of registration of such dealer had initially been granted to the transferee; and the transferee shall on application to the Commissioner be entitled to have the registration certificate amended accordingly..
  
  S.15 Repeal of section 18
  
  (1) Section 18 of the said Act shall be deemed to have been repealed as from the commencement of the Bengal Finance (Sales Tax) (West Bengal Amendment) Ordinance 1950 (West Ben. Ord. X of 1950).
  
  (2) All proceedings which, were pending before the Commissioner of Commercial Taxes immediately before the commencement of the Bengal Finance (Sales Tax) (West Bengal Amendment) Ordinance, 1950 (West Ben. Ord. X of 1950), under section 18 of the said Act shall be deemed to have been discharged as from the date of such commencement.
  
  (3) No order passed before the commencement of the Bengal Finance (Sales Tax) (West Bengal Amendment) Ordinance, 1950, by a person appointed under sub-section (1) of section 3 of the said Act to assist the Commissioner of Commercial Taxes shall be deemed to be or to have been invalid merely on the ground that such order determined or purported to determine directly or incidentally any question which the Commissioner of Commercial Taxes should have d
  S.16 Amendment of section 20
  
  In section 20 of the said Act,--
  - (a) in sub-section (1), after the words within sixty days the words or such further period as may be allowed by the Commissioner for cause shown to his satisfaction shall be inserted;
  - (b) in sub-section (3),--
    - (i) for the words order passed the words assessment made or order passed shall be substituted,
    - (ii) the following further proviso shall be added at the end, namely:--
      Provided further that no application for revision shall lie to the Commissioner in respect of any assessment if an appeal lies under sub-section (1) to the Commissioner in respect of such assessment.;
  - (c) for sub-section (4), the following sub-section shall be substituted, namely:--
    (4) Subject to such rules as may be prescribed, any assessment made or order passed under this Act or the rules made there under by any person appointed under section 3 may be reviewed by th
    S.17 Insertion of new section after section. 21
    
    After section 21 of the said Act, the following section shall be inserted, namely:--
    
    21A. Power of Commissioner to take evidence on oath, etc.-
    
    The Commissioner or any person appointed to assist him under sub-section (1) of section 3 shall, for the purposes of this Act, have the same powers as are vested in a Court under the Code of Civil Procedure, 1908 (Act V 1908), when trying a suit, in respect of the following matters, namely:--
    - (a) enforcing the attendance of any person and examining him on oath or affirmation;
    - (b) compelling the production of documents; and
    - (c) issuing commissions for the examination of witnesses;
    and any proceeding under this Act before the Commissioner or any person appointed to assist him under sub-section (1) of section 3 shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196 of the Indian Penal Code (Act XLV of 1860).
    
    S.18 Amendment of section 22
    
    In sub-section (1) of section 22 of the said Act, for the words shall be punishable with fine not exceeding one thousand rupees the words shall be punishable with simple imprisonment which may extend to six months or with fine or with both shall be substituted.
    
    S.19 Substitution of new section for section 23
    
    For section 23 of the said Act, the following section shall be substituted, namely:--
    
    23. Compounding of offences.-
    
    (1) Subject to such conditions as may be prescribed, the Commissioner may accept, from any person alleged to have committed an offence under subsection (2) of section 22 or under any rules made under this Act, either before or after the commencement of any proceedings against such person in respect of such offence, by way of composition for such offence, a sum not exceeding five thousand rupees or where the offence alleged to have been committed is under clause (a) or clause (b) of that sub-section, not exceeding double the amount of the tax which would have been payable by such person had he complied with the provisions of the Act, whichever is greater.
    
    (2) On payment in full of such sum as may be determined by the Commissioner under sub-section (1)--
    - (a) no proceedings shall be commenced against such person as aforesaid; and
    S.20 Amendment of section 26
    
    In sub-section (2) of section 26 of the said Act,--
    - (a) for clause (a), the following clause shall be substituted, namely:--
      (a) the portion referred to in sub-clause (i) of clause (ii) of section 2.;
    - (b) after clause (a), the following clause shall be inserted namely:--
      (aa) the authority referred to in the proviso to clause (j) of section 2.;
    - (c) after clause (b), the following clause shall be inserted, namely:--
      (bb) the particulars to be contained in a declaration under sub-clause (ii) of clause (a) of sub-section (2) of section 5, the form of such declaration, the authority from which such form shall be obtainable and the manner in which such declaration is to be furnished;;
    - (d) after clause (s), the following clause shall be inserted, namely:--
      (t) any other matter required to be prescribed..