Act No. 06 of 1941
Whereas it is necessary to make an addition, to the revenues of Bengal, and for that purpose to impose a general tax on the sale of goods in Bengal;
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It is hereby enacted as follows:-
(1) This Act may be called the Bengal Finance (Sales Tax) Act, 1941.
(2) It extends to the whole of the Union territory of Delhi.
(3) It shall come into force on such date as the Chief Commissioner may, by notification in the Official Gazette, appoint.
In this Act, unless there is anything repugnant in the subject or context,-
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 the business of selling goods and who has, in the customary course of business, authority to sell goods belonging to principals is a dealer.
Explanation 3.-The manager or an agent in the Union territory of Delhi or a dealer who resides outside the Union territory o
(1) For carrying out the purposes of this Act, the Chief Commissioner may appoint a person to be Commissioner of Sales Tax, together with such other person to assist him as the Chief Commissioner thinks fit.
(2) Persons appointed under sub-section (1) shall exercise such powers as may be conferred, and perform such duties as may be required, by or under this Act.
(3) All persons appointed under sub-section (1) shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).
(1) With effect from such date as the Chief Commissioner may, by notification in the Official Gazette, appoint being not earlier than thirty days after the date of the said notification, every dealer whose gross turnover during the year immediately preceding the commencement of this Act exceeded the taxable quantum shall be liable to pay tax under this Act on all sales effected after the date so notified:
Provided that a dealer who deals exclusively in one or more classes of goods specified in the [Second Schedule] shall not be liable to pay any tax under this Act.
(2) Every dealer to whom sub-section (1) does not apply, shall, if his gross turnover calculated from 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.
Explanation.-In this sub-section,
(1) The tax payable by a dealer under this Act shall be levied-
Provided that the Chief Commissioner, with the previous approval of the Central Government, may, by notification in the Official Gazette, add to, or omit from, or otherwise amend the First and the Third Schedules:
Provided further that if in respect of any goods or class of goods the Chief Commissioner, is of opinion that it is expedient in the interest of the general public so to do, the Chief Commissioner, with the previous approval of the Central Government, may, by notification in th
[Notwithstanding anything to the contrary in this Act. The Chief Commissioner may, by notification in the Official Gazette, specify the point in the series of sales by successive dealers at which any goods or class of goods may be taxed.]
[The burden of proving that in respect of any sale effected by the dealer he is not liable to pay tax under this Act shall lie on him.]
(1) No tax shall be payable under this Act on the sale of goods specified in the [Second Schedule] subject to the conditions and exceptions, if any, set out therein.
(2) The Central Government, after giving by notification in the Official Gazette, [such previous notice as it considers reasonable] of its intention so to do, may by like notification add to or omit from or otherwise amend the "[Second] schedule, and thereupon the [Second] schedule shall be deemed to be amended accordingly.
(1) No dealer shall, while being liable to pay tax under section 4 of this Act, carry on business as a dealer unless he has been registered and possesses a registration certificate.
(2) Every dealer required by sub-section (1) to be registered shall make application in such behalf in the prescribed manner to the prescribed authority.
(3) If the said authority is satisfied that an application for registration is in order, he shall in accordance with such rules as may be prescribed, register the applicant and grant him a certificate of registration in the prescribed form which shall specify the class or classes of goods for the purposes of sub-clause (ii) of clause (a) of sub-section (2) of section 5.
(4) The Commissioner may from time to time amend any certificate of registration in accordance with information, furnished under section 16 or otherwise received.
(5) When any dealer has been convicted or has paid composition money under section 23, in respec
(1) Any dealer [other than a dealer who deals exclusively in one or more classes of goods specified in the [Second Schedule] whose gross turnover during a year exceeds 10,000 rupees may, notwithstanding that he may not be liable to pay tax under section 4, apply in the prescribed manner to the prescribed authority for registration under this Act.
(2) The provisions of sub-section (3), sub-section (4), clause (a) of sub-section (6) and sub-section (7) of section 7 shall apply in respect of applications for registration under this section.
(3) Every dealer who has been registered upon application made under this section shall, for so long as his registration remains in force be liable to pay tax under this Act.
(4) The registration of a dealer upon application made under this section shall be in force for a period of not less than three complete years and shall remain in force thereafter unless cancelled under the provisions of this Act.
(5) Subject to the
[The Commissioner, if it appears to him to be necessary so to do for the proper realisation of the tax levied under this Act, may impose for reasons to be recorded in writing as a condition of the issue of a registration certificate to a dealer or of the continuance, in effect, of such a certificate issued to any dealer a requirement that the dealer shall give security up to an amount and in the manner approved by the Commissioner for the payment of the tax for which he may be or become liable under this Act.]
(1) Any person who intends to establish a business in the Union territory of Delhi for the purpose of manufacturing or producing goods of a value exceeding ten thousand rupees per year, may, notwithstanding that he is not required to register himself under section 7 apply in the prescribed manner to the prescribed authority for provisional-registration under this Act.
(2) If the said authority, after making such inquiries as it may consider necessary is satisfied as to the bona fide intention of the person making the application, it may grant a provisional certificate of registration on such person furnishing such security as it may consider necessary and shall specify in such certificate the class or classes of goods, for the purposes of sub-clause (ii) of clause (a) of sub-section (2) of section 5.
(3) Every person who has been granted a provisional certificate of registration under this section shall, for so long as such certificate is in force, be liable to pay ta
(1) No dealer shall, while being liable to pay tax under sub-section (4A) of section 4, carry on business as a dealer unless he has obtained a special certificate of registration.
(2) Every dealer required by sub-section (1) to be registered shall make an application in this behalf in the prescribed manner to the prescribed authority.
(3) If the said authority is satisfied that the application for special certificate is in order, it shall, in accordance with such rules as may be prescribed, grant a special certificate to the applicant in the prescribed form:
Provided that the special certificate shall not specify the class or classes of goods for the purposes of sub-clause (ii) of clause (a) of sub-section (2) of section 5.
(4) The Commissioner may from time to time amend any special certificate in accordance with the information furnished under section 16 or otherwise received by him.
(5) The provisions of sub-section (3) of section 4, sub-sectio
The Commissioner shall, as soon as may be after the commencement of this Act 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-
(1) Tax payable under this Act shall be paid in the manner hereinafter provided at such intervals as may be prescribed.
(2) Such dealers as may be required so to do by the Commissioner by notice served in the prescribed manner and every registered dealer shall furnish such returns by such dates and to such authority as may be prescribed.
(3) Before any registered dealer furnishes the returns required by sub-section (2), he shall, [pay into a Government treasury or the Reserve Bank of India or in such other manner as may be prescribed] the full amount of tax due from him under this Act according to such returns, and shall furnish along with the returns a receipt from such Treasury or Bank showing the payment of such amount.
(4) If any dealer discovers any omission or other error in any return furnished by him, he may at any time before the date prescribed for the furnishing of the next return by him furnish a revised return; and if the revised return shows a gre
[No person who is not a registered dealer shall collect in respect of any sale by him of goods in the Union territory of Delhi any amount by way of tax under this Act, and no registered dealer shall make any such collection except in accordance with this Act and the rules made thereunder.]
(1) If no returns are furnished by a registered dealer in respect of any period by the prescribed date, or if the Commissioner is not satisfied that the returns furnished are correct and complete, the Commissioner shall, within eighteen months after the expiry of such period, proceed in such manner as may be prescribed to assess to the best of his judgment the amount of the tax due from the dealer and in making such assessment shall give the dealer a reasonable opportunity of being heard; and in the case of failure by a registered dealer to submit in respect of any period, a return accompanied by receipt from a Government Treasury or Reserve Bank of India as required under sub-section (3) of section 10, by the prescribed date, the Commissioner may, if he is satisfied that the default was made without reasonable cause, direct that the dealer shall pay by way of penalty in addition to the amount of the tax so assessed a sum not exceeding one and a half times that amount.
(2) I
[If in consequence of definite information which has come into his possession the Commissioner is satisfied that the turnover of the business of a dealer has escaped assessment or has been under-assessed in any year, the Commissioner may, at any time within the period of three years following the close of the year for which the turnover is proposed to be assessed or re-assessed, as the case may be, send a notice to the dealer, and after hearing him and making such inquiry as he considers necessary may proceed to assess or re-assess, as the case may be, the tax payable on the turnover which has escaped assessment or has been under-assessed, and all the provisions of this Act, and the rules made thereunder shall, so far as may be, apply accordingly for the purpose of the assessment or re-assessment of the tax, as the case may be.]
(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 review under section 20 or reference under section 21, or to confer on a dealer any relief in addition to what he
Every registered dealer or other dealer on whom a notice has been served to furnish returns under sub-section (2) of section 10, shall keep a true account of the value of goods bought and sold by him, and if the Commissioner considers that such account is not sufficiently clear and intelligible to enable him to make a proper check of the returns referred to in that sub-section, he may require such dealer by notice in writing to keep such accounts (including records of sales) as may be prescribed.
(1) The Commissioner may, subject to such conditions as may be prescribed, require any dealer-
as may be deemed necessary for the purposes of this Act.
(2) (a) All accounts, registers and documents relating to the stocks of goods of, or purchases, skies 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.
(3) If the Commissioner has reason to suspect that any dealer is attempting to evade payment of any tax under this Act, he may, for reasons to be recorded in writing, seize such accounts, registers or documents of the dealer as may be necessary, and shall grant a receipt for the same, an
Subject to such restrictions and conditions as may be prescribed, the Commissioner may by order in writing delegate any of his powers under this Act except those under, sub-section (2) of section 22 to any person appointed under section 3 to assist him.
If any dealer to whom the provisions of subsection (2) of section 10 apply,-
[he shall within the prescribed time inform the prescribed authority accordingly; and if any such dealer dies, his legal representative shall in like manner inform the said authority.]
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.
Save as is provided in section 21, no assessment made and no order passed under this Act or the rules made thereunder by the Commissioner or any person appointed under section 3 to assist him shall be called into question in any Civil Court, and save as is provided in section 20, no appeal or application for revision or review shall lie against any such assessment or order.
(1) Any dealer may in the prescribed manner appeal to the prescribed authority against any assessment within sixty days or such further, period as may be allowed by the Commissioner for cause shown to his satisfaction from the receipt of a notice issued under sub-section (3) of section 11 in respect thereof:
Provided that no appeal shall be entertained by the said authority unless he is satisfied that such amount of the tax as the appellant may admit to be due from him has been paid.
(2) Subject to such rules of procedure as may be prescribed by the appellate authority, in disposing of any appeal under sub-section (1), may-
(3) Subject to such rules as may be prescribed and for reasons to be recorded in writing, the Commissioner upon appli
(1) Within sixty days from the passing by the Chief Commissioner of any order under sub-section (3) of section 20 affecting any liability of any dealer to pay tax under this Act, [such dealer or the Commissioner may, by application in writing, and accompanied in the case of an application by a dealer by a fee of one hundred rupees], require the Chief Commissioner to refer to the High Court any question of law arising out of such order.
(2) If, for reasons to be recorded in writing, the Chief Commissioner refuses to make such reference, the applicant may, within thirty days of such refusal, either-
(3) If upon the receipt of an application under clause (b) of sub-section (2), the High Court is not satisfied of the correctness of the Chief Commissioner's decision, it may require the Chief Commissioner to stat
(1) 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, when trying a suit, in respect of the following matters, namely-
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.
(2) Subject to any rules made in this behalf, any authority referred to in sub-section (1) may impound and retain in its custody for such period as it thinks fit, any books of account or
(1) Whoever-
(1) If the Commissioner or any person appointed under sub-section (1) of section 3 to assist him, in the course of any proceedings under this Act is satisfied that a dealer has concealed the particulars of his sales or has furnished inaccurate particulars of his sales and has thereby returned figures below the real amount, he may, after giving the dealer a reasonable opportunity of being heard, direct that the dealer shall, in addition to the tax payable by him under this Act, pay, by way of penalty, a sum not exceeding one and a half times the amount of tax which would have been avoided if the figures returned by the dealer were accepted as correct.
(2) If any person purchasing goods is guilty of an offence under clause (c) or clause (d) of sub-section (1) of section 22, the authority which granted to him or as the case may be, is competent to grant to him a certificate of registration under this Act may, after giving him a reasonable opportunity of being heard, by order in
(1) Subject to such conditions as may be prescribed, the Commissioner may accept, from any person alleged to have committed an offence under sub-section (1) 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)-
(1) The Chief Commissioner may, by notification in the Official Gazette, set up check-posts or barriers at any place in the Union territory of Delhi with a view to preventing evasion of sales tax and other dues payable under this Act.
(2) Every person transporting such goods as may be notified shall, at any check-post or barrier referred to in sub-section (1), file before such officer as may be authorised by the Chief Commissioner in this behalf a declaration in such form and in such manner as may be prescribed.
(3) The officer authorised by the Chief Commissioner under sub-section (2) or any other officer who may be authorised in this behalf may, for the purpose of satisfying himself that the provisions of sub-section (2) are not being contravened, and subject to such restrictions as may be prescribed, intercept and search any vehicle which may be suspected of contravening the said provisions.
No suit, prosecution or other legal proceedings shall lie against any servant of the Government for anything which is in good faith done or intended to be done under this Act or the rules made thereunder.
(1) All particulars contained in any statement made, return furnished or accounts or documents produced in accordance with this Act, or in any record of evidence given in the course of any proceedings under this Act other than proceedings before a Criminal Court, shall, save as provided in sub-section (3), be treated as confidential, and notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872), no Court shall, save as aforesaid, be entitled to require any servant of the Government to produce before it any such statement, return, account, document or record or any part thereof, or to give evidence before it in respect thereof.
(2) If save as provided in sub-section (3), any servant of the Government discloses any of the particulars referred to in sub-section (1), he shall be punishable with imprisonment which may extend to six months, and shall also be liable to fine.
(3) Nothing in this section shall apply to the disclosure:-
(1) The Chief Commissioner may, subject to the condition of previous publication, make rules for carrying out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may prescribe:-
[Nothing in this Act or the rules made thereunder shall be deemed to impose, or authorise the imposition of a tax on any sale or purchase of any goods when such sale or purchase takes place-
Explanation.-Sections 3, 4 and 5 of the Central Sales Tax Act, 1956 (4 of 1956), shall apply for determining whether or not a particular sale or purchase takes place in the manner indicated in clause (i), clause (ii) or clause (iii).
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