MADHYA BHARAT SALES OF MOTOR SPIRIT TAXATION ACT, 1953

Act No. 20 of 1953

16th July, 1953

An Act to provide for the levy of a taxi on retail sales of motor spirit in the State of Madhya Bharat BE it enacted as follows:-

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S.1 Short title, extent and commencement

(1) This Act may be called "The Madhya Bharat Sales of Motor Spirit Taxation Act, 1953".

(a) It extends to the whole of Madhya Bharat.

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

S.2 Definitions

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

• (a) "Commissioner" means the Commissioner of Sales-tax;
• (b) "Appellate Authority" means any person authorised to hear appeals;
• (c) "Excise Officer" means a Collector or any officer or other person appointed or invested with powers under section 6 of the Madhya Bharat Excise Act. Samvat 2009;
• (d) "Sales-tax Officer" means a Sales tax Officer of a circle appointed by the Government to perform the duties and exercise the powers of an assessing authority in such circle;
• (e) "Government Treasury" means a treasury or sub-treasury of the Government and includes any office, branch or agency of the Reserve Bank of India, transacting treasury business for the Government;
• (f) "Importer" means any person who imports motor spirit into Madhya Bharat;
• (g) "Motor spirit" means any substance which by itself or in admixture with other substances is ordinarily
  

S.3 Payment of tax

(1) Subject to the provisions of this Act, there shall be levied on all re ail sales of motor spirit effected after the commencement of this Act, a tax

• in the case of petrol- at the irate of Re. 0-1-6 per rupee, subject to the condition that the selling price, inclusive of Sales Tax, does not exceed Rs. 3 per gallon, and
• In the case of any motor spirit other than petrol- at the rate of Re. 0-1-0 per rupee, and such tax shall be payable by the person effecting the sale

Provided that the Government may from time to time by notification fix any other by at which the tax shall be payable:

Provided further that 116 such notification shall come into force until approved by a resolution of the Legislative Assembly.

(2) Where any retail dealers obtain their supplies of motor spirit from an importer or wholesale dealer, it shall be open to the Government by agreement with the importer or wholesale dealer, to levy from him in advance the tax

S.4 Registration of importers and dealers

(1) No person shall, after the commencement of this Act, carry on business in motor spirit as an importer or as a wholesale or retail dealer at any place in Madhya Bharat unless he has been registered as such under this Act:

Provided that persons carrying on business at the commencement of this Act shall be allowed two months from such commencement to get themselves registered under this Act.

EXPLANATION-Where a person has more than one place of business, whether in the same town or village or in different towns and villages, he shall get himself registered separately in respect of each such place of business.

(2) (a) No importer or wholesale dealer shall, unless also registered as a retail dealer under this Act, sell motor spirit for consumption or sale in Madhya Bharat to any person other than an importer or a wholesale dealer or a retail dealer, registered as such under this Act.

(b) No retail dealer shall use or transfer for consumption any motor spi

S.5 Suspension or cancellation of registration

Any registration under sub-section (1) of section 4 may be suspended or cancelled by such authority for such reasons and in such manner as may be prescribed.

S.6 Delegation of powers and duties

The Government or, subject to the orders of Government, the Commissioner may invest any officer or person with such powers and impose upon him such duties under this Act, as the Government or the Commissioner, as the case may be, may deem fit and any such officer or person shall thereupon exercise the said powers and discharge the said duties.

S.7 Obligation of retail dealers to keep books of account and submit returns

Every retail dealer in motor spirit shall in respect of each place where he carries on business-

• (a) keep books of account in the prescribed form; and
• (b) submit every month to the Sales-tax Officer and to such other officers as may be prescribed, a return in the prescribed form and before the prescribed date, showing-
• (i) the quantity of motor spirit received by him during the preceding month;
• (ii) the quantity sold by him duping such month; and
• (iii) such other particulars as may be prescribed.

S.8 Receipt for payment of tax to be furnished along with the returns

Along with the return referred to in clause (b) of section 7, the retail dealer shall furnish a receipt from a Government treasury for the amount of the tax due in respect of motor spirit sold by him in retail during the preceding month, according to the return.

S.9 Determination of tax by Sales-tax Officers in certain cases and recovery thereof

(1) If no return is submitted by a retail dealer under clause (b) of section 7 in respect of any month before the date prescribed in that behalf, or if the return is submitted without a receipt for the full amount of the tax due as required by section 3, or if the return submitted appears to the Sales-tax Officer to be incorrect or incomplete, the Sales-tax Officer shall, after making such inquiry as he considers necessary, determine the amount of the tax due from such retail dealer in respect of such month and the amount so determined less the sum, if any, already paid by him shall be paid by the retail dealer into a Government treasury within fifteen days after demand is made therefor:

Provided that before taking action under this sub-section, the retail dealer shall be given a reasonable opportunity of proving the correctness and completeness of return.

(2) In default of payment within the period aforesaid, the amount of tax due shall be recovered from the person f

S.10 Obligations of importers and wholesale dealers to keep books of account and submit return

Every importer or wholesale dealer shall-

• (a) keep books of account in the prescribed form; and
• (b) submit every month to the Sales-tax Officer and to such other officer as may be prescribed, a return in the prescribed form and before the prescribed date, showing:-
• (i) the quantity of motor spirit received by him in the preceding month;
• (ii) the quantities of motor spirit supplied by him during such month to other importers, wholesale dealers or retail dealers, specifying the name and address of each importer, wholesale dealer or retail dealer, the quantities supplied to him, and the dates on which the supplies were made; and
• (iii) such other particulars as may be prescribed;

S.11 Penalties

Any person who-

• (a) carries on business in motor spirits as an importer, a wholesale dealer or a retail dealer at any place without getting himself registered as required by sub-section (1) of section 4 or when his registration in respect of such place is not in force; or
• (b) fails to keep books of account as required by clause (a) of section 7 or of section 10; or
• (c) fails to submit any return as required by clause (b) of section 7 or of section 10 on or before the prescribed date, or submits an incorrect or incomplete return, or fails to submit a receipt for the full amount of the tax due as required by section 8; or
• (d) fails to pay within the time allowed any tax demanded from him under sub-section (1) of section 9; or
• (e) fraudulently evades the payment of any tax due under this Act; or
• (f) acts in contravention of any of the provisions of this Act;

shall on conviction by a Magistrate of first class, be l

S.12 Punishment for vexatious search or arrest

Any officer or person exercising powers under this Act, who-

• (a) without reasonable ground of suspicion, enters or searches, or causes to be entered or searched, any building, vessel, or place; or
• (b) vexatiously and unnecessarily seizes the property of any person on the pretence of seizing or searching for anything liable to confiscation under this Act; or
• (c) vexatiously and unnecessarily detains, searches or arrests any person;

shall on conviction be punishable with fine which may extend to five hundred rupees.

S.13 Punishment for vexatious delay

Any officer or person exercising powers under this Act who vexatiously and unnecessarily delays forwarding to a Magistrate any person arrested under this Act and not released by him on bail shall on conviction be punishable with fine which may extend to two hundred rupees .

S.14 Motor spirit liable to confiscation in certain cases

The motor spirit in respect of which an offence against this Act is committed and any receptacle in which such spirit is contained shall be liable to confiscation .

S.15 Confiscation how ordered

(1) When in any case tried by a Magistrate, the Magistrate decides that anything is liable to confiscation under section 14, he may after hearing the person, if any, claiming any right thereto and the evidence, if any, which he produces in support of his claim, order confiscation or may give the owner an option to" pay such fine as the Magistrate deems fit in lieu of confiscation.

(2) When an offence against this Act has been committed but the offender is not known, or cannot be found, or when anything liable to confiscation under this Act and not in the possession of any person cannot be satisfactorily accounted for, the case shall be inquired into and determined by the prescribed officer who may order such confiscation:

Provided that no such order shall be made until the expiration of one month from the date of seizure of the things intended to be confiscated or without hearing the person, if any, claiming any right thereto, and the evidence, if any, which they prod

S.16 Issue of warrants for arrest

(1) Any officer of the Government specially empowered by them in this behalf may issue a warrant for the arrest of any person whom he has reason to believe to have committed an offence against this Act.

(2) All warrants issued under this section shall be executed in accordance with the provisions of the Code of Criminal Procedure, 1898, by a police officer, or if the officer issuing the warrant deems fit, by any other person.

S.17 Power of inspection, entry and search without warrant

Any officer of the Government specially empowered by them in this behalf may-

• (a) inspect all accounts and vouchers relating to stock, purchases, sales and deliveries of motor spirit kept by importers, wholesale dealers and retail dealers;
• (b) enter and search any building, vessel, vehicle or place in which he has reason to believe that any motor spirit liable to confiscation under this Act is kept or concealed;
• (c) seize any motor spirit and any receptacle which he has reason to believe to be liable to confiscation under this Act; and
• (d) detain, search and arrest any person whom he has reason to believe to be guilty of any offence under this Act.

S.18 Procedure for arrest without warrant

The provisions of section 61 of the Code of Criminal Procedure, 1898, shall apply to all arrests without warrant made under Section 17.

S.19 Offences to be reported, etc

Every officer employed by the Government or by any local authority shall be bound to give immediate information at the nearest Police Station or if so required by any general or special order issued by the Government ,to the nearest Excise Officer of rank not below that of Sub-Inspector of all breaches of any of the provisions of this Act which may come to his knowledge ;and all such officers shall be bound to take all reasonable measures in their power to prevent the commission of any such breaches which they may know or have reason to believe are about or likely to be committed .

S.20 Power of investigation

(1) Every officer of the Sales-tax, Police or Revenue Departments, not below such rank as may be prescribed, shall, within the area for which he is appointed ,have power to investigate all offences under this Act .

(2) Every such officer shall, in the conduct of such investigation, exercise the powers conferred by the Code of Criminal Procedure, 1898, upon an officer-in-charge of a Police Station for the investigation of a cognisable offence:

Provided that if such officer is of opinion that there is not sufficient evidence or reasonable ground of suspicion to justify the forwarding of an accused to a Magistrate, or that the person arrested may be discharged with a warning, such officer shall release him on his executing a bond, with or without sureties, to appear if and when so required before a Magistrate and shall make a full report of the case to the Sales-tax Officer.

S.21 Offences to be bailable

(1) All offences against this Act shall be bailable.

(2) Any officer empowered under section 20 shall have power to grant bail in accordance with the provisions of the Code of Criminal Procedure, 1898, to any person arrested without warrant for an offence against this Act.

S.22 Procedure on seizure

When anything has been seized by an officer exercising powers under section 20, such officer, after such inquiry as he considers necessary-

• (a) if it appears that such thing is required as evidence in the case of any person arrested, shall forward the thing to the Magistrate to whom such person forwarded or for his appearance before whom bail has been taken;
• (b) if it appears that such thing is liable to confiscation but is not required as evidence as aforesaid, shall send the thing with a report of the particulars of the seizure to the prescribed authority; and
• (c) if no offence appears to have been committed, shall return the thing to the person from whose possession it was taken and shall report to the prescribed authority accordingly.

S.23 Powers to compound offences

(1) 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 a sale of motor spirit in contravention of this Act or of the evasion of any tax payable under this Act, in addition to the tax payable by him under section 3, a sum of money not exceeding five hundred rupees or double the amount of the tax payable, whichever is greater; and
• (b) in other cases, a sum of money not exceeding five hundred rupees.

(2) On the payment of such sum of money and the tax, if any, payable under section 3, to the prescribed authority, the accused person shall be discharged, the property seized, if any, shall be released and no further proceedings shall be taken against such person or property in respect of such offence.

S.24 Cognizance of offences

(1) No Magistrate shall take cognizance of any offence against this Act-

• (i) except upon the complaint or report of the Sales-tax Officer or other prescribed authority; or
• (ii) except upon his own knowledge or suspicion.

(2) Except with the sanction of the Government, no Magistrate shall take cognizance of any offence against this Act, unless the prosecution is instituted within six months from the date on which the offence is alleged to have been committed:

Provided that nothing contained in this sub-section shall apply to any case governed by section 26.

S.25 Bar of certain proceedings

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

(2) No officer or servant of the 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.26 Limitations for certain suits and prosecutions

No suit shall be instituted against the Government and no suit ,prosecution or other proceeding shall be instituted against any officer or servant of the 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 .

S.27 Appeals

(1) Any person aggrieved by any order passed under this Act, not being on order passed by any Court or Magistrate, may appeal-

• (a) in case such order is passed by a Sales-tax Officer to the appellate authority; and
• (b) in any other case, to the Sales-tax Officer.

(2) The appellate authority may, after giving the appellant an opportunity of being heard, pass such order on the appeal as such authority thinks fit.

(3) Every order passed in appeal under this section shall, subject to the [towers of revision conferred by section 28, be final.

S.28 Revision

The Commission may at any time ,call for and examine the record of any order passed by ,or any proceedings recorded by ,any officer or person under this Act ,for the purpose of satisfying himself as to the legality or propriety of such order ,or as to the regularity of such proceedings ,and may pass such order in reference thereto as he thinks fit .

Nothing contained in this section shall apply to the orders or proceedings of any Court or Magistrate.

S.29 Power to make rules

(1) The 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 regulation of the sale of motor spirit for the purpose of enforcing the provisions of this Act;
• (c) the duties and powers of inspecting and other officers appointed or authorised to exercise any powers under this Act, and the procedure to be followed by such officers;
• (d) the form in which, and the time within which, appeals under section 27 may be preferred; and
• (e) any other matter for which there is no provision or no sufficient provision in this Act and for which provision is, in the opinion of the Government, necessary for giving effect to the purposes of this Act.

(3) In making a rule under sub-section (1) or sub-section (2), the Government may

S.30 Publication of rules and notifications

All rules made and notifications issued under this Act shall be published in the Gazette and upon such publication, shall have effect as if enacted in this Act.