TRAVANCORE-COCHIN GENERAL SALES TAX ACT, 1125

Act No. 11 of 1125

17th January, 1950

WHEREAS it is expedient to provide for the levy of a general tax on the sale of goods in the a[State of Travancore-Cochin]; It is hereby enacted as follows:-- a. See Act XXIX of 1950. b. Published in the Gazette, dated 17th January 1950. For statement of Objects and Reasons see Gazette Extraordinary, dated 25th November 1949. For Report of the Select Committee see Gazette Extraordinary dated 9th December 1949. For debate in Assembly see Legislative Assembly Proceedings, (1949), Vol. III, Page 567. The Act was amended by Acts XXVIII of 1950 and XIII of 1952.

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S.1 Short title, extent and commencement

(1) This Act may be called the a[Travancore-Cochin] General Sales Tax Act, 1125.

(2) It extends to the whole of the a[State of Travancore-Cochin].

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

a. See Act XXIX of 1950.

b. The Act was brought into force on 30th May, 1950. see Notification No. SR;1-353-A/49/RD-dated 29th May, 1950, published in the Gazette. dated 30th May 1950, Part I, page 650.

S.2 Definitions

In this Act, unless there is anything repugnant in the subject or context:--

• (a) "agricultural or horticultural produce", shall not be deemed to include tea, coffee, rubber, cinchona or cardamom;
• (b) "assessing authority" means any person authorised by the Government to make any assessment under this Act;
• (c) "the Board of Revenue" means the Board of Revenue constituted under Ordinance No. XII of 1124;
• (d) "dealer" means any person who carries on the business of buying or selling goods;

Explanation. A co-operative society, a club, a firm or any association which sells goods to its members is a dealer within the meaning of this clause.

a[(dd) "food grains" means paddy/rice, wheat, maize, jowar, bajra, barley and ragi and includes such other articles as Government may, by notification in the Gazette, specify as such.]

• (e) "goods" means all kinds of movable property and include all materials, commodit
  

S.3 Levy of taxes on sales of goods

(1) Subject to the provisions of this Act:--

• (a) every dealer shall pay for each year a tax on his total turnover for such year; and
• (b) the tax shall be calculated at the rate of three pies for every Indian rupee in such turnover.

(2) Subject as aforesaid, the sale of any of the goods mentioned below shall be subject to a tax at the rate specified in respect thereof, at such single point in the series of sales by successive dealers as may be prescribed; and the tax shall be paid by the dealer concerned on his turnover in each year relating to such goods, and shall be in addition to the tax to which he is liable under sub-section (1) on his total turnover for the year-

(3) A dealer whose total turnover in any year is less than ten thousand Indian rupees shall not be liable to pay any tax for that year under sub-section (1) or sub-section (2),

(4) For the purposes of this Section and the other provisions of this Act, turnover shall b

S.4 Application of the Act

The provisions of Section 3 of this Act shall not apply to the sale of electrical energy and any goods other than arrack and foreign liquor on which duty is or may be levied under the Travancore or Cochin Abkari Act, or the Travancore or Cochin Opium Act

S.5 Exemptions and reductions of tax in certain cases

Subject to such restrictions and conditions as may be prescribed, including conditions as to licences and licence fees;

• (i) the sale of handspun yarn and of any cloth woven on handloorns wholly with handspun yarn and sold by persons dealing exclusively in such cloth, shall be exempt from taxation under Section 3, sub-section (1);
• (ii) the sale of cotton (including Kapas) and of cotton yarn other than handspun yarn shall be liable to tax under Section 3, sub-section (1), only at such single point in the series of sales by successive dealers as may be prescribed and only at the rate of one-half of one per cent of the turnover at that point;
• (iii) the sale of any cloth woven on handloorns wholly or partly with mill yam shall be exempt from taxation under Section 3, sub-section (1), if the sale is to a wholesale or retail dealer in the a[State of Travancore-Cochin] or if the sale is for delivery outside the a[State of Travancore-Coch
  

S.6 Power of Government to notify exemptions and reductions of tax

(1) Government may, by notification in the Gazette, make an 'exemption, or reduction in rate, in respect of any tax payable under this Act--

• (i) on the sale of any specified class of goods at all points or at any specified point or points in the series of sales by successive dealers; or
• (ii) by any specified class of persons, in regard to the whole or any part of their turnover.

(2) Any exemption from tax, or reduction in the rate of tax notified under sub-section (1)--

• (a) may extend to the whole of the a[State of Travancore Cochin] or to any specified area or areas therein;
• (b) may be subject to such restrictions and conditions as may be specified in the notification, including conditions as to licences and licence fees.

a. See Act XXIX of 1950.

S.7 Liability to tax of persons not observing conditions of licence, etc

If any restrictions or conditions prescribed under Section 5 or notified under Section 6 are contravened or are not observed by a dealer, or in case a condition so prescribed or notified requires that a licence shall be taken out or renewed, if a licence is not taken out or renewed by the dealer or if any of the conditions of a licence taken out or renewed by him are contravened or are not observed, the sales of the dealer, with effect from the commencement of the year in which such contravention or non-observance took place, may be assessed to tax or taxes under Section 3, as if the provisions of Section 5 or of the notification under Section 6, as the case may be, did not apply to such sales and notwithstanding that a licence, if any, taken out or renewed by the dealer continued or continues to be in force during the year.

S.8 Sales of certain goods for delivery outside the United State

In respect of such finished articles of industrial manufacture as may be notified by Government and subject to such restrictions and conditions as may be prescribed, a rebate shall be allowed of one half of the tax levied on sales of such articles for delivery outside the a[State of Travancore-Cochin], if such articles are actually so delivered.

a. See Act XXIX of 1950.

S.9 Licensing and exemption of agents

Government may on application and on payment of such fee as may be prescribed in that behalf; license any person under this Section who for an agreed commission or brokerage buys or sells on behalf of known principals specified in his accounts in respect of each transaction and may exempt from the tax or the taxes payable under Section 3 such of his transactions as are carried Out in accordance with the terms and conditions of his licence:

Provided always that, save where the transaction consists of a sale by a grower of produce grown by him, or on his land, no such exemption shall be given unless the amounts for which the goods concerned in such transactions are sold, are included in the turnover of the principals or of the dealers from whom purchases were made, or would have been so included but for an exemption provided under this Act:

Provided further that the commission or brokerage agreed upon and specified in the accounts represents the entire remuneration paya

S.10 Registration

(1) Every dealer whose turnover in any year is not less than seven thousand five-hundred Indian rupees shall, and any other dealer may, get himself registered under this Act, and for that purpose, shall submit an application for registration, to such person, in such manner, within such period, and accompanied by such fee not exceeding six Indian rupees, as may be prescribed.

(2) A dealer who has got himself registered in pursuance of sub-section (1) is entitled to have his registration canceled if he is able to establish to the satisfaction of the prescribed authority that his turnover in each of two consecutive years was less than seven-thousand five-hundred Indian rupees.

(3) A dealer shall, until his registration is cancelled, be liable to pay the fee prescribed, as aforesaid, for every year subsequent to that in which he applied for registration.

S.11 Collection of tax by dealers

(1) No person who is not a registered dealer shall collect any amount by way of tax under this Act; nor shall a registered dealer make any such collection except in accordance with such conditions and restrictions, if any, as may be prescribed:

Provided that Government may exempt persons who are not registered dealers from the provisions of this sub-section until such date as may be prescribed.

(2) Every person who has collected or collects any amount by way of tax under this Act on or after the date prescribed under the proviso to sub-clause (I) shall pay over to Government all amounts so collected by him if they are in excess of the tax, if any, paid by him for the period during which collections were made; and in default of such payment, the amounts may be recovered as if they were arrears of land revenue.

S.12 Procedure to be followed by assessing authority

(1) Every dealer whose turnover is ten-thousand Indian rupees or more in a year shall submit such return or returns relating to his turnover, in such manner, and within such periods as may be prescribed.

(2) (a) If the assessing authority is satisfied that any return submitted under sub-section (1) is correct, and complete, he shall assess the dealer on the basis thereof,

(b) If no return is submitted by the dealer under sub-section (1) before the date prescribed or specified in that behalf or if the return submitted by him appears to the assessing authority to be incorrect or incomplete the assessing authority shall assess the dealer to the best of his judgment:

Provided that before taking action under this clause, the dealer shall be given a reasonable opportunity of proving the correctness and completeness of any return submitted by him.

S.13 Payment and recovery of tax

The tax assessed under this Act shall be paid in such manner, and in such instalments, if any, and within such time, as may be specified in the notice of assessment, not being less than fifteen days from the date of service of the. notice. In default of such payment, the whole of the amount then remaining due may be* recovered as if it were an arrear of land revenue.

S.14 Appeals

(1) Any assessee objecting to an assessment made on him may, within thirty days from the date on which he, was; served with notice of the assessment, appeal to such authority as may be prescribed:

Provided that no appeal shall be entertained under this subsection unless it is accompanied by satisfactory proof of the payment of the tax admitted by the appellant to be due or of such instalments thereof as might have become payable, as the case may be.

(2) The appeal shall be in the prescribed form and shall be verified in, the prescribed manner,

(3) The appellate authority may, after giving the appellant an opportunity of being heard, pass such orders on the appeal as such authority may think fit.

(4) Every order passed in appeal under this Section shall, subject to the powers of revision conferred by section 15, be final

S.15 Revision

(1) The Board of Revenue may in its discretion call for and examine the record of any order passed or proceeding recorded by any authority, officer or person under the provisions of this Act, including sub-section (2), for the purpose of satisfying itself as to the legality or propriety of such order, or as to the regularity of such proceeding and may pass such order, in reference thereto as it thinks fit.

(2) Powers of the nature referred to in sub-section (1) may also be exercised by such authority or officer and in such class of cases as may be prescribed, including cases where an inferior authority or officer has exercised its or his powers under this subsection.

(3) The powers conferred by sub-sections (1) and (2) may be exercised by the Board of Revenue or by the authority or officer concerned, as the case may be, suo moto at any time, or on application preferred within six months of the passing or recording of the order or proceeding in question.

(4) Not

S.16 Registered dealer to keep accounts

Every registered dealer and every person license under this Act shall keep and maintain a true and correct account in Malayalam, Tamil or English, showing the goods sold and bought by him and the value thereof, goods of each of the kinds specified in section 3, sub-section (2), being shown separately; and in case the accounts maintained in the ordinary course do not show the same in an intelligible form, he shall maintain a true and correct account in such form as may be prescribed in this behalf.

S.17 Powers to order production of accounts and powers of entry and inspection

(1) Any officer empowered by Government in this behalf, may for the purposes of this Act, require any dealer carrying on business in any kind of goods to produce before him the accounts and other documents and to furnish any other information relating to such business.

(2) All accounts and registers maintained by dealers in the ordinary course of their business, the goods in their possession and their offices, shops, godowns, vessels or vehicles shall be open to inspection at all reasonable times by such officers as may be authorised in this behalf.

(3) Any such officer shall have power to enter, for the purpose referred to in sub-section (2), any office, shop, godown, vessel, Vehicle or any other place in which business is done.

S.18 Act to apply to non-resident dealers with, certain modifications and additions

In the case of any person carrying on the business of buying or selling goods in the a[State of Travancore-Cochin] but residing outside it (hereinafter in this Section referred to as a "non-resident"), the provisions of this Act shall apply subject to the following modifications and additions, namely:--

• (i) In respect of the business of the non-resident, his agent residing in the a[State of Travancore-Cochin] shall be deemed to be the dealer.
• (ii) The agent of a non-resident shall be assessed to tax or taxes under this Act at the rate or rates leviable thereunder irrespective of the business of such non-resident in which the agent is concerned, irrespective of the amount of the turnover of such business being less than the minimum specified in Section 3, sub-section (3).
• (iii) Without prejudice to his other rights, any agent of a non-resident who is assessed under this Act in respect of the business of such non-resident may retai
  

S.19 Offences and penalties

Any person who,

• (a) wilfully submits an untrue return or fails to submit a return as required by the provisions of this Act or the rules made thereunder, or
• (b) fails to pay within the time allowed, any tax assessed on him or any fee due from him, under this Act, or
• (c) prevents or obstructs inspection or entry by any officer authorised under Section 17, in contravention of the terms thereof, or
• (d) fraudulently evades the payment of any tax assessed on him, or any fee due from him under this Act, or
• (e) fails to submit an application for registration as required by Section 10, sub-section (1), or
• (f) collects any amount by way of tax under this Act in contravention of the provisions of Section 11, sub-section (1) or
• (g) fails to pay the amounts specified in Section 11, subsection (2) within the prescribed time, or
• (h) wilfully acts in contravention of any of the provisions of this Act, shall on conviction
  

S.20 Composition of offences

The prescribed authority may accept from any person who has committed or is reasonably suspected of having committed an offence against this Act, by way of composition of such offence.--

• (a) where the offence consists of the failure to pay, or the evasion of, any tax recoverable under this Act, in addition to the tax so recoverable, a sum of money not exceeding double the amount of the tax recoverable, and
• (b) in other cases, a sum of money not exceeding one thousand Indian rupees.

S.21 Assessment, etc., not to be questioned in prosecutions

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.

S.22 Bar of certain proceedings

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

(2) No officer or servant of 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.

S.23 Limitation for certain suits and prosecutions

No suit, shall be instituted against Government and no suit, prosecution or other proceeding shall be instituted against any officer or servant of 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 sub-section (1) of Section 22 shall be excluded.

S.24 Ower to make rules

(1) Government may 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) the licensing of persons engaged in the sale of goods and the imposing of conditions in respect of the same for the purpose of enforcing the provisions of this Act and fees for licences;
• (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 a[State of Travancore-Cochin];
• (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 rece
  

S.25 Power to remove difficulties

If any difficulty arises in giving effect to the provisions of this Act, Government may, as occasion may require, by order, do anything which appears to them necessary for the purpose of removing the difficulty,

S.26 Tax not leviable in certain cases

a[26. Tax not leviable in certain cases

(1) Notwithstanding anything contained in this Act,--

• (a) a tax on the sale or purchase of goods shall not be imposed under this Act--
• (i) where such sale or purchase takes place outside the State of Travancore-Cochin; or
• (ii) where such sale or purchase takes place in the course of import of the goods into, or export of the goods out of, the territory of India;
• (b) a tax on the sale or purchase of any goods shall not, after the 31st day of March 1951, be imposed where such sale or purchase takes place in the course of inter-State trade or commerce except in so far as Parliament may by law otherwise provide.

(2) The Explanation to clause (1) of Article 286 of the Constitution of India shall apply for the interpretation of sub-clause (i) of clause (a) of sub-section (1)]

a. Inserted by S. 2, Act XII of 1951 which repealed Ordinance IV of 1951, Section

S.27 Repeal

a[27.] Repeal

The Travancore General Sales-tax Act, 1124 (XVIII 1124), the Cochin Sales-tax Act, XV of 1121 and the United State of Travancore-Cochin Sales-tax (Amendment) Act, 1125 (III of 1125) are here by repealed,

a. Original S. 26 renumbered by S. 3, Act XII of 1951.