Act No. 09 of 1939
13th June, 1939
An Act to provide for the levy of a general tax on the sale of goods in the Province of Madras. Whereas it is expedient to provide for the levy of a general tax on the sale of goods in the State of Madras; It is hereby enacted as follows:--
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(1) This Act may be called the Madras General Sales Tax Act, 1939.
(2) It extends to the whole of the 1[State] of Madras.
(3) This section shall come into force at once, and the rest of this Act shall come into force on such 2date as the 3[State] Government may, by notification in the Fort St. George Gazette, appoint.
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1. This word was substituted for the word "Province" by the Adaptation Order of 1950.
2. Came into force on the 1st October 1939.
3. This word was substituted for the word "Provincial" by the Adaptation Order of 1950.
In this Act, unless there is anything repugnant in the subject or context--
1[2[(1) The State Government shall appoint an Appellate Tribunal consisting of three members to exercise the functions conferred on the Appellate Tribunal by or under this Act. Of the three members, one shall be a judicial officer not below the rank of District Judge. He shall be the Chairman of the Tribunal. The other two members shall possess such qualifications as may be prescribed];
(2) Any vacancy in the membership of the Appellate Tribunal shall be filled up by the State Government.
3[(3) (a) The functions of the Appellate Tribunal may be exercised by a Bench consisting of all the members of the Tribunal or by a Bench consisting of two members constituted by the Chairman or, in the event of the office of a member other than the Chairman being vacant, by a Bench consisting of the Chairman and the other member: Provided that, if any case which comes up before a Bench (of which the Chairman is not a member) involves a question of law, the Bench may, in its discreti
1[ The State Government may appoint as many Deputy Commissioners of Commercial Taxes and Commercial Tax Officers as they think fit, for the purpose of performing the functions respectively conferred on them by or under this Act. Such officers shall perform the said functions within such local limits as the State Government or any authority or officer empowered by them in this behalf may assign to them.]
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1. Sections 2-A and 2-B were inserted by section 3 of the Madras General Sales Tax (Amendment) Act, 1951 (Madras Act VI of 1951) which came into force on the 15th May 1951.
1[2(1) Subject to the provisions of this Act, every dealer shall pay for each year a tax on his total turnover for that year calculated at 3[two per cent] of such turnover: Provided that if and to the extent to which such turnover relates to articles of food or drink or both sold in a hotel, boarding house, restaurant, stall or any other place, the tax shall be calculated at two and a half per cont of the turnover relating to those articles if that turnover is not less than twenty-five thousand rupees.]
4[(1-A) The tax for each year may be assessed, levied and collected in advance during the year in monthly or quarterly istalments, and for that purpose a dealer may be required to furnish either an advance estimate of his turnover for the year, or periodical returns of the actual turnover as may be prescribed. The assessing authority may determine the amount of tax payable in respect of any period and on such assessment the dealer shall pay the sum demanded within such time a
The provisions 1( ) of this Act shall not apply to the sale of electrical energy, motor spirit as defined in the Madras Sales of Motor Spirit Taxation Act, 1939 (Madras Act VI of 1939), 2[taxed tobacco as defined in section 2, clause (13), of the Madras Tobacco (Taxation of Sales and Registration) Act, 1953 (Madras Act IV of 1953)] and any goods on which duty is or may be levied under the Madras Abkari Act, 1886 (Madras Act I of 1886) 3(the Madras Prohibition Act, 1937 (Madras Act X of 1937 and Central Act I of 1878)), or the Opium Act, 1878.]
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1. The words and figure "of section 3" were omitted by section 5(i) of the Madras General Sales Tax (Amendment) Act, 1951 (Madras Act IV of 1951), which came into force on 15th May 1951.
2. This expression was substituted for the expression "manufactured tobacco as defined in the Madras Tobacco (Taxation of Sales and Licensing) Act, 1939" by section 2(i) of the Madras General Sales Tax and the Madras Tobac
1[ (1) Subject to such restrictions and conditions as may be prescribed, including conditions as to licences and licence fees--
1[ (1) The sale of the following goods shall be liable to tax under section 3, sub-section (1), only at the point of the first sale effected in the State of Madras by a dealer who is not exempt from taxation under section 3, sub-section (3), but at the rate specified against them:--
| Serial number. (i) | Description of goods (ii) | Rate of tax on the turnover. (iii) PER CENT. |
|---|---|---|
| (1) | Coal, including coke in all its forms ... ... ... ... | 2 |
| (2) | Iron and steel, that is to say-- (a) pig iron andiron scrap; (b) iron plates sold in the same form in which they are directly produced by the rolling mill; (c) steel scrap, steel ingots, steel billets, steel bars and rods; (d) (i) Steel plates, (ii) Steel sheets, (iii) Sheet bars and tin bars, (iv) Rolled steel sections, (v) Tool alloy steel; Sold in the same form in which they are directly produced by the rolling mill. | 2 |
1[The burden of proving that any dealer or any of his transactions is not liable to tax under section 5 or section 5-A shall lie on such dealer.
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1. Sections 5-A, 5-B and 5-C were inserted by section 4 of the Madras General Sales Tax, Sales of Motor Spirit Taxation and Entertainments Tax (Amendment) Act, 1957 (Madras, Act I of 1957).
1[ (1) The tax under this Act shall be levied on any transaction of sale or purchase deemed to take place inside the State under this Act or any other law for the time being in force.
(2) The provisions of this Act relating to taxation of successive sales inside the State only at a single point or only at one or more stages apply only to the sales inside the State other than the sales in the course of inter-State trade or commerce and the tax under the Central Sales Tax Act, 1956 (Central Act 74 of 1956), shall be levied at the appropriate rate notwithstanding that a sale or purchase of the same goods has been taxed under this Act.]
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1. Sections 5-A, 5-B and 5-C were inserted by section 4 of the Madras General Sales Tax, Sales of Motor Spirit Taxation and Entertainments Tax (Amendment) Act, 1957 (Madras, Act I of 1957).
1[ (1) The 2(State) Government may, by notification in the Fort St.- George Gazette make an exemption, or reduction in rate, in respect of any tax payable under this Act--
(2) Any exemption from tax, or reduction in the rate of tax, notified under sub-section (1)--
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1. Sections 5, 6 and 6-A were substituted for original sections 5 and 6 by section 4 of the Madras General Sales Tax (Amendment) Act, 1947 (Madras Act XXV of 1
1[ 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.]
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1. Sections 5, 6 and 6-A were substituted for original sections 5 and 6 by section 4 of the Madras General Sales Tax (Amendment
1[* * * *]
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1. Section 7 was omitted by section 5 of the Madras General Sales Tax (Third Amendment) Act, 1956 (Madras Act XV of 1956) with effect from the 1st April 1951.
The 1[State] Government may, on application and on payment of such fee as may be prescribed in that behalf, licence 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 2[exempt from the tax or 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:
3[Provided further that the commission or brokerage agreed upon and specified in the accounts represents the entire rem
1[ (1) Every dealer whose turnover in any year is not less than seven thousand five hundred 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 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 cancelled, 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 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.]
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1. Sections 8-A and 8-B were inserted by section 6, ibid.
1[ (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 the 2[State] Government may exempt persons who are not registered dealers from the provisions of this sub-section until such date., not being later than the 1st day of April 1948, as the 2[State] Government may direct.
(2) Every portion who has collected or collects 3[any amount purporting to be by way of tax under this Act, on or after the 1st day of April 1947 (whether or not any tax is due from him under this Act in respect of the transaction in which he has collected or collects such amount)] shall pay over to the 2[State] Government within such time and in such manner as may be prescribed, all amounts so collected by him if they are in excess of the tax, if any, paid by him for the period during which the colle
1[ Notwithstanding anything contained in this Act, the State Government shall, in respect of any sale of goods effected by them, be entitled to collect by way of tax any amount which a registered dealer effecting such sale would have been entitled to collect by way of tax under this Act.]
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1. Section 8-C was inserted by section 7 of the Madras General Sales Tax (Amendment) Act, 1951 (Madras Act VI of 1951) which came into force on 15-5-1951.
(1) Every dealer whoso turnover is ton thousand rupees or more in a year shall submit such 5[return or returns relating to his turnover] in such manner, and within such periods as may be 1[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 2[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.
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1. These words were substituted for the words "return or returns of his turnover" and the word "pres
1[ (1) The tax assessed under this Act shall be paid in such manner and in such installments, 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 notice. If default is made in paying according to the notice of assessment, the whole of the amount outstanding on the date of default shall become immediately due and shall be a charge on the properties of the person or persons liable to pay the tax under this Act.
(2) Any tax assessed on, or any other amount due under this Act from a dealer and any fee due from him under this Act, may without prejudice to any other mode of collection, be recovered--
Provided that no proceeding for such recovery shall be taken or continued as long as he has, in regard to the payment of
1[ (1) The assessing authority may at any time or from time to time, by notice in writing (a copy of which shall be forwarded to the dealer at his last address known to the assessing authority) require any person from whom money is due or may become due to the dealer or any person who holds or may subsequently hold money for or on account of the dealer to pay to the assessing authority, either forthwith upon the money becoming due or being held at or within the time specified in the notice (not being before the money becomes due or is held) so much of the money as is sufficient to pay the amount due by the dealer in respect of arrears of tax or fee or the whole of the money when it is equal to or less than that amount.
(2) The assessing authority may at any time or from time to time amend or revoke any such notice or extend the time for making any payment in pursuance of the notice.
(3) Any person making any payment in compliance with a notice under this section shall
1[ Where a dealer dies, his executor, administrator, or other legal representative shall be deemed to be the dealer for the purposes of this Act and the provisions of this Act shall apply to him in respect of the business of the said deceased dealer, provided that, in respect of any tax or fee assessed as payable by any such dealer or any tax or fee which would have been payable by him under this Act if he had not died, the executor, administrator or other legal representative shall be liable only to the extent of the assets of the deceased in his hands.]
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1. Sections 10-A and 10-B were inserted by section 9 of the Madras General Sales Tax (Third Amendment) Act, 1956 (Madras Act XV of 1956).
(1) Any assessee objecting to an assessment made on him 1[under section 9, sub-section (2)] 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:
2[Provided that the appellate authority may admit an appeal preferred after the period of thirty days aforesaid, if the authority is satisfied that the assessee had sufficient cause for not preferring the appeal within that period: Provided 3[further] that no appeal shall be entertained under this sub-section unless it is accompanied by satisfactory proof of the payment of the tax admitted by the appellant to be due or of such installments 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 thin
1[ (1) The Commercial Tax Officer may-- (i) suo motu, or (ii) in cases in which an appeal does not he to him under section 11, on application, call for and examine the record of any order passed or proceeding recorded under the provisions of this Act by any officer subordinate to him, for the purpose of satisfying himself as to the legality or propriety of such order, or as to the regularity of such proceeding, and may pass such order with respect thereto as he thinks fit.
(2) The Deputy Commissioner may-- (i) suo motu, or (ii) in respect of any order passed or proceeding recorded by the Commercial Tax Officer under sub-section (1) or any other provision of this Act and against which no appeal has been preferred to the Appellate Tribunal under section 12-A, on application, call for and examine the record of any order passed or proceeding recorded under the provisions of this Act, by any officer subordinate to him, for the purpose of satisfying himself as to the legality or p
1[ (1) Any assessee objecting to an order relating to the assessment passed-- (i) by the Commercial Tax Officer whether on appeal under section 11, or suo motu under section 12, sub-section (1), or (ii) by the Deputy Commissioner suo motu under section 12, sub-section (2), may, if the assessee has not preferred an application for revision of the order under section 12, sub-section (2), or under sub-section (3) of that section, as the case maybe, appeal to the Appellate Tribunal within sixty days from the date on which the order was communicated to the assessee.
(2) The Appellate Tribunal may admit an appeal preferred after the period of sixty days referred to in subsection (1) if it is satisfied that the assessee had sufficient cause for not preferring the appeal within that period.
(3) The appeal shall be in the prescribed form, shall be verified in the prescribed manner, and shall be accompanied by such fee not exceeding one hundred rupees as may be prescribed.
1[ (1) Within sixty days from the date on which an order under section 12-A, sub-section (4) or (6), was communicated to him, the assessee or the Deputy Commissioner may prefer a petition to the High Court against the order on the ground that the Appellate Tribunal has either decided erroneously, or failed to decide, any question of law : Provided that the High Court may admit a petition preferred after the period of sixty days aforesaid if it is satisfied that the petitioner had sufficient cause for not preferring the petition within that period.
(2) The petition shall be in the prescribed form, shall be verified in the prescribed manner, and shall, where it is preferred by the assessee, be accompanied by a fee of one hundred rupees.
(3) If the High Court, on perusing the petition, considers that there is no sufficient ground for interfering, it may dismiss the petition summarily : Provided that no petition shall be dismissed unless the petitioner has had a reasonabl
1[ (1) Any assessee objecting to an order relating to assessment passed by the Board of Revenue suo motu under section 12, Sub-section (3), may appeal to the High Court within sixty days from the date on which the order was communicated to him : Provided that the High Court may admit an appeal preferred after the period of sixty days aforesaid if it is satisfied that the assessee had sufficient cause for not preferring the appeal within that period.
(2) The appeal shall be in the prescribed form, shall be verified in the prescribed manner, and shall be accompanied by a fee of one hundred rupees.
(3) The High Court shall, after giving both parties to the appeal a reasonable opportunity of being heard, pass such order thereon as it thinks fit.
(4) The provisions of section 12-B, sub-sections (6) to (8), shall apply in relation to appeals preferred under sub-section (1) as they apply in relation to petitions preferred under section 12-B, Sub-section (1).]
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1[ Every petition, application or appeal preferred to the High Court under sections 12-B and 12-C shall be heard by a Bench of not less than two Judges, and in respect of such petition, application or appeal, the provisions of section 98 of the Code of Civil Procedure, 1908 (Central Act V of 1908), shall, so far as may be, apply.]
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1. Sections 12, 12-A, 12-B, 12-C and 12-D were substituted for section 12 by section 9 of the Madras General Sales Tax (Amendment) Act, 1951 (Madras Act VI of 1951), which came into force on 15th May 1951, as substituted for original section 12 by section 8 of the Madras General Sales Tax (Amendment) Act, 1947 (Madras Act XXV of 1947.)
1[Every registered dealer, 2[every dealer who is under an obligation to get himself registered under section 8-A, sub-section (1)], and every person licensed under this Act] shall keep and maintain a 3[true and correct account in one of the languages of the 4[State], namely, Tamil, Telugu, Malayalam, Kannada or Hindustani or in 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.
5[ * * * * ]
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1. These words were substituted for the words and figure "Every dealer and every person licensed under section 8" by section 9(i) of the Madras General Sales Tax (Amendment) Act, 1947 (Madras Act XXV of 1947), which came into force on 1st January 194
(1) Any officer empowered by the 1[State] 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 authorized 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.
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1. This word was substituted for the word "Provincial" by the Adaptation Order of 1950.
2[ In the case of any person carrying on the business of buying or selling goods in the 1[State] 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 :--
1[ (1) Any person who--
(2) Any person who--.
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--
1[ 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.]
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1. Section 16-A was inserted by section 12 of the Madras General Sales Tax (Amendment) Act, 1947 (Madras Act XXV of 1947), which came into force on 1st January 1948.
(1) No suit, prosecution or other proceeding shall lie against any officer or servant of the 1[State] Government, for any act done or purporting to be done under this Act, without the previous sanction of the 1[State] Government.
(2) No officer or servant of the 1[State] 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 the functions imposed by or under this Act.
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1. This word was substituted for the word "Provincial" by the Adaptation Order of 1950.
No suit shall be instituted against the 2[Government] and no suit, prosecution or other proceeding shall be instituted against any officer or servant of the 1[State] 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.
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1. This word was substituted for the word "Provincial" by the Adaptation Order of 1950.
2. This word was substituted for the word "Crown" by ibid.
1[ No suit or other proceeding shall, except as expressly provided in this Act, be instituted in any Court to set aside or modify any assessment made under this Act.]
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1. Section 18-A was inserted by section 10 of the Madras General Sales Tax (Amendment) Act, 1951 (Madras Act VI of 1951), which came into force on 15th May 1951.
1[ Any person who is entitled to appear before any authority other than the High Court in connexion with any proceedings under this Act, may be represented before such authority--
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1. Section 18-B was inserted by section 15 of the Madras General Sales Tax (Third Amendment) Act, 1956 (Madras Act XV of 1956).
(1) The 1[State] 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--
1[ * * * *].
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1. This section was omitted by section 13 of the Madras General Sales Tax (Amendment) Act, 1947 (Madras Act XXV of 1947) which came into force on 1st January 1948 as having become spent.
If any difficulty arises in giving effect to the provisions of this Act, the 1[State] Government may, as occasion may require, by order, do anything which appears to them necessary for the purpose of removing the difficulty.
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1. This word was substituted for the word "Provincial" by the Adaptation Order of 1950.
1[ (1) Any sale or purchase which took place on or before the 6th day of September 1955 shall be deemed to have taken place inside the State if the goods have actually been delivered as a direct result of such sale or purchase for the purpose of consumption in the State, notwithstanding the fact that under the general law relating to sale of goods the property in the goods has by reason of such sale or purchase passed in another State and be subject to tax under this Act accordingly.
(2) The provisions of this section shall not affect the liability to tax of any sale or purchase under any other provision of this Act.]
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1. This section was substituted by section 8(2) of the Madras General Sales Tax, Sales of Motor Spirit Taxation and Entertainments Tax (Amendment) Act, 1957 (Madras Act I of 1957 for section 22 inserted by the Adaptation of Laws (Fourth Amendment) Order, 1952, and shall be deemed to have come into effect on the 26th January 1950.
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