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Orissa Value Added Tax Act, 2004

(Orissa Act No. 4 of 2005)

Last Updated 4th February, 2020 [or872]

Chapter I

Preliminary

(1) "Appellate authority" means any authority prescribed for the purpose of section 77:

(2) "Appointed day" in relation to any provision of this Act, means the date on which such provision comes into force;

(3) "Assessee" means any dealer by whom tax or any other of money is payable under this Act, and includes every dealer in respect of whom any proceedings under this Act has been initiated for the assessment of tax payable by him;

(4) Assessing Authority" means any other appointed under sub-section (2) of section 3 who is authorised by the Commissioner to make assessment under this Act;

(5) "Assessment" means determination of tax liability under this Act and includes self assessment, provisional, assessment, audit assessment, assessment of escaped turnover, assessment of unregistered dealers liable to be registered, assessment of casual dealers and reassessment;

(6) "Audit Assessment" means an audit assessment made under section 42;

(7) "Business" includes-

(a) Any trade, commerce or manufacture;

(b) Any adventure or concern in the nature of trade, commerce or manufacture;

(c) Any transaction in connection with, or incidental or ancillary to, such trade, commerce, manufacture, adventure or concern;

(d) Any transaction in connection with or incidental or ancillary to, the commencement or closure of such trade, commerce, manufacture, adventure or concern;

(e) Any occasional transactions, whether or not there is volume, frequency, continuity or regularity of such transaction, in the nature of such trade, commerce, manufacture, adventure or concern,

(i) The activity of raising of man-made forest or rearing of seedlings or plants shall be deemed to be a business.

(ii) Transaction of sale or purchase of capital goods pertaining to any trade, commerce, manufacture, adventure, concern or transaction shall be deemed to be a transaction comprised in business.

(iii) Purchase of any goods, the price of which is debited to the business and sale of any goods, the proceeds of which are credited to the business shall be deemed to be transaction comprised in business;

(8) "Capital goods" means plants, machinery and equipments used directly in the process of manufacturing, but does not include such plant, machinery and equipments which are used for the purposes and in the circumstances specified in Schedule 'D';

(9) "Casual dealer" means any person, whether as principal, agent or in any other capacity, who has occasional transactions of buying, selling or supplying or distributing goods in the State without having a fixed place of business for cash or deferred payment or for commission, remuneration or other valuable consideration and includes, whether be has a fixed place of business in this State or not,-

(a) A transporter who, while carrying any goods in his goods vehicle, fails to disclose the name and address of the consignor or consignee in the State or fails to furnish copy of invoice, challan, transport receipt or consignment note or document of like nature in respect of such goods, or

(b) An owner or a lessee of a warehouse who fails to disclose the name and address of the owner of any goods stored at his warehouse or fails to satisfy the Commissioner that such goods are for his personal use or consumption;

(10) "Commissioner" means the Commissioner of Sales Tax appointed under sub-section (1) of section 3 or deemed to have been appointed under clause (a) of sub-section (2) of section 106;

(11) "Co-operative society" means a co-operative society registered under the Orissa Co-operative Societies Act, 1962 (Orissa Act 2 of 1963) and includes a Co-operative registered under the Orissa Self-Help Co-operative Act, 2001;

(12) "Dealer" means any person who carries on the business of buying, selling, supplying or distributing goods, executing works contract, delivering any goods on hire-purchase or any system of payment by instalments, transferring the right to use any goods or supplying by way of or as part of any service, any goods directly or otherwise, whether for cash or for deferred payment, or for commission, remuneration or other valuable consideration and includes :-

(a) A causal dealer;

(b) A commission agent, a broker or a del credere agent or an auctioneer or any other mercantile agent, by whatever name called;

(c) a non-resident dealer or an agent of a non-resident dealer, or a local branch of a firm or company or association or body of persons whether incorporated or not, situated outside the State;

(d) A person who, whether in the course of business or not,-

(i) Sells goods produced by him by manufacture, agriculture, horticulture or otherwise, or

(ii) Transfers any goods, including controlled goods whether in pursuance of a contract or not, for cash or for deferred payment or for other valuable consideration;

(iii) Supplies by way of or as part of any service or in any other manner whatsoever, goods, being food or any other articles for human consumption or any drink (whether or not intoxicating), where such supply or service is for cash, deferred payment or other valuable consideration;

(13) "Declared goods" means goods declared to be of special importance as specified under section 14 of the Central Sales Tax Act, 1956 (74 of 1956);

(14) "Documents" means title deeds, writing or inscription and includes electronic records and the like which is produced as documentary evidence;

(15) "Electronic Hardware Technology Park (EHTP) Unit" is a unit set up under the EHTP, which undertakes to export their entire production of goods outside the territory of India and is approved by the Development Commissioner of the Export Processing Zone or any other competent authority duly authorised by the Ministry of Industry, Government of India for the purpose;

(16) "Electronic record" means electronic record as defined in the Information Technology Act, 2000 (21 of 2000);

(17) "Exempted goods" means any goods exempted from tax under section 17;

(18) Export Oriented Unit (EOU)" means any industrial unit, which undertakes to export their entire production of goods and is approved as such by the Development Commissioner of the concerned Export Processing Zone or any other competent authority duly authorised for the purpose by the Ministry of Industry, Government of India;

(19) "Fixed place of business" means the place of business from which the dealer carries out his business activities, and includes-

(a) A place where the management of the business is undertaken, any of its branch, office, factory or workshop, godown or warehouse;

(b) A mine, oil or gas well, quarry, timberland or any other place form which natural resources are extracted; or

(c) A fixed place of business of another person (other than a broker, general commission agent or other independent agent acting in the normal course of business) who is carrying on business on behalf of the dealer in the State in ordinary course of business;

(20) "Fund" means the Orissa Consumer Welfare Fund referred to in section 53;

(21) "Goods" means every kind of movable property not being newspapers, actionable claims, money, stock, shares or securities, and includes all materials, commodities and articles (including goods as goods or in some other form) involved in the execution of any works contract or goods used in the fitting out, improvement or repair of movable property and growing crops, grass and trees, plants including the produce thereof and all other things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale;

(22) "Goods vehicle" means any motor vehicle constructed or adapted for use solely for carriage of goods, or any motor vehicle not so constructed or adapted but when used for carriage of goods solely or in addition to passengers, and includes any vessel, boat, animal or any other means of conveyance other than railway wagon or coach;

(23) "Government" means the Government of Orissa;

(24) "Gross turnover" in relation to any period, means the aggregate of the turnover of sales and the turnover of purchases made by a dealer during that period;

(25) "Input" means any goods purchased by a dealer in the course of his business for resale or for use in the execution of works contract, in processing or manufacturing, where, such goods directly goes into composition of finished products or packing of goods for sale, and includes consumables directly used in such processing or manufacturing;

(26) "Input tax" in relation to any registered dealer means the tax collected and payable under this Act in respect for sale to him of any taxable goods for use in the course of his business, but does not include tax collected on the sale of goods made to a commission agent purchasing such goods on behalf of such dealer;

(27) "Input tax credit" in relation to any tax period means the setting off of the amount of input tax or part thereof under section 20 against the output tax, by a registered dealer other then a registered dealer paying turnover tax under section 16;

(28) "Manufacture" means any activity that brings out a change in an article or articles as result of some process, treatment, labour and results in transformation into a new and different article so understood in commercial parlance having a distinct name, character and use, but does not include such activity of manufacture as may be notified;

(29) "Output tax" in relation to any registered dealer means the tax leviable and payable under this Act in respect of sale of any taxable goods made by that dealer in the course of his business, and includes tax payable by a commission agent in respect of sale of taxable goods on behalf of such dealer;

(30) "Passenger vehicle" means a motor vehicle constructed or adapted for the carriage of passengers;

(31) "Person" means any individual or association or body of individuals and includes a Hindu Undivided Family, a firm, a company whether incorporated or not, a society including a co-operation, other artificial or legal person, local authority, a department of Government, a Government enterprise and a Financial institution or Bank;

(32) "Place of business" means any place where a dealer carries on business and includes-

(a) Any warehouse, godown or other place where the dealer stores or processes his goods,

(b) Any place where a dealer produces or manufactures goods,

(c) Any place where a dealer keeps his books of account,

(d) In case where a dealer carries on business through an agent by whatever name called, the place of business of such agent, or

(e) Any vehicle or vessel or any other carrier wherein the goods are stored or used for transporting the goods;

(33) "Prescribed" means prescribed by rules;

(34) "Prevailing market price" in relation to any goods sold means the published price in force in the market at the time when the sale of such goods occasioned or, in the absence of any such published price, the price at which such goods were capable of being sold in the open market at that time;

(35) "Property" means any property, whether real or personal, movable or immovable, tangible or intangible, corporal or in corporal, and includes a right or interest of any kind, but does not include money;

(36) "Published" means published in any newspaper, journal or periodical or notified by a market committee established under the Orissa Agricultural Produce Markets Act, 1956 (Orissa Act 3 of 1956) or any such authority as the Government may, by notification, specify from time to time;

(37) "Purchase" with all its grammatical variations and cognate expressions shall be construed from the word sale;

(38) "Registered dealer" means a dealer registered under this Act;

(39) "Registered authority" means any officer appointed under sub-section (2) of section 3 who is authorised by the Commissioner to function as registering authority;

(40) "Resale" means a sale of goods in the same form in which they were purchased;

(41) "Retailer" means a dealer, not being a manufacture or a person selling or despatching goods outside the State, or purchases or receives goods other than by way of purchase from outside the State, who ordinarily effects sales to consumers;

(42) "Return" means any return prescribed or otherwise required to be furnished by or under this Act;

(43) "Reverse Tax" means the portion of input tax on the goods for which credit has been availed but such goods are used subsequently for any purpose other than resale or manufacture of taxable goods or execution of works contract or use as containers or packing materials;

(44) "Rules" means rules made under this Act;

(45) "Sale" with all its grammatical variations and cognate expressions, means every transfer of the property in goods, other than by way of mortgage, hypothecation, charge or pledge, by one person to another in the course of trade or business for cash, deferred payment or other valuable consideration, and includes-

(a) A transfer, otherwise than in pursuance of a contract, of property in goods for cash, deferred payment or other valuable consideration,

(b) Transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract,

(c) Delivery of goods on hire purchase or any other system of payment by instalments,

(d) A transfer of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or any other valuable consideration,

(e) A supply, by way of or as part of any service or in any other manner whatsoever, of goods being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service is for cash, deferred payment or other valuable consideration,

(f) A transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration,

(i) In the case of specific or ascertained goods, at the time the contract of sale is made, and

(ii) In the case of un ascertained or future goods, at the time of their appropriation to the contract of sale by the seller, or by the buyer, whether assent is prior or subsequent to such appropriation.

(b) Where there is a single contract of sale or purchase of goods situated in more than one place, the provisions of this Explanation shall apply as if there were separate contracts in respect of the goods at each of such places.

Note. - A sale or purchase of goods shall not be deemed to have taken place inside the State, if the goods are sold-

(i) In the course of inter-State trade or commerce, or

(ii) Outside the State, or

(iii) In the course of import into or export out of the territory of India;

(46) "Sale price" means the amount of valuable consideration received or receivable by a dealer as consideration for the sale of any goods less any sum allowed as cash discount or trade discount according to the practice normally prevailing in the trade but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before delivery thereof, and the expression "purchase price" shall be construed accordingly.

(b) In case of sale by hire purchase agreement, the prevailing market price of the goods on the date on which such goods are delivered to the purchaser under such agreement shall be deemed to be the sale price.

(c) In relation to transfer of right to use any goods for any purpose (whether or not for a specified period0 the consideration or the hire charges received or receivable for such transfer shall be the sale price.

(d) Amount of duties levied or leviable on the goods under the Central Excise Act, 1944, and the Customs Act, 1962 (52 of 1962) whether such duties are payable by the seller or any other person, shall be included in the sale price.

(e) Amount received or receivable by the seller by way of deposit, warranty (whether refundable or not) which has been received or is receivable whether by way of separate agreement or not, in connection with or incidental or ancillary to the sale of goods shall be deemed to be included in the sale price,

(f) The sale price shall not include the tax paid or payable under this Act;

(47) "Self assessment" means a true and correct determination of net tax liability by a dealer in relation to any tax period;

(48) "Software Technology Park (STP)" unit means a unit set up under the STP, which undertakes to export their entire production of goods outside the territory of India and is approved by the Development Commissioner of the concerned Export Processing Zone or any other competent authority duly authorised by Ministry of Industry, Government of India for the purpose;

(49) "Special Economic Zone (SEZ)" means any Special Economic Zone specified by the Government of India by notification under section 76A of the Customs Act, 1962 (52 of 1962);

(50) "State" means the State of Orissa;

(51) "Tax" means tax chargeable under this Act;

(52) "Tax invoice" means a document showing the goods sold with price, quantity and other details as required under section 62;

(53) "Tax period" means such period for which return is required to be furnished by or under this Act;

(54) "Taxable" goods" means goods liable to tax under this Act;

(55) "Taxable limit" , in relation to the business of a dealer is that part of the gross turnover of sales or purchases, as the case may be, specified in sub-section (4) of section 10;

(56) "Taxable turnover" means the turnover on which a dealer is liable to pay tax as determined after making such deduction from his gross turnover and in such manner as may be prescribed;

(57) "Transporter", "carrier" or "transporting agent" means the owner or nay person having possession or control of a goods vehicle, who transports on account of any other person for hire or on his own account, any goods from one place to another, and includes any person whose name is entered in the permit issued under the Motor Vehicles Act, 1988 (59 of 1988) as the holder thereof, the driver of any other person in-charge of such vehicle;

(58) "Tribunal" means the Orissa Sales Tax Tribunal constituted or deemed to have been constituted under section 4;

(59) "Turn over of purchases" means the aggregate of the amounts of purchase price paid and payable by a dealer in respect of the purchase or receipt of goods liable to tax under section 12 during a given period;

(60) "turn over sales" means the aggregate of the amounts of sale price received or receivable by a dealer in respect of sale or supply of goods effected or made during a given period;

(61) "Vehicle" includes every wheeled conveyance used for the carriage of goods or goods in addition to passengers;

(62) "Vessel" includes any ship, barge, boat, raft, timber, bamboos or floating materials propelled in any manner;

(63) "Works contract" means a contract for the construction, building, manufacture, processing, fabrication, erection, installation, fitting out, improvement, modification, repair or commissioning of any property;

(64) "Year" means the financial year.

Chapter II

Taxing Authorities and Tribunal

(a) To superintend and control all persons employed in the executive administration of tax;

(b) Subject to the provisions of this Act and the rules, to make rules of procedure and conduct of administration for the guidance of persons subordinate to him;

(c) To call for any record from any subordinate officer and also to call for any paper or document in connection with any assessment under this Act;

(d) To inspect the records and to superintend the work of officers subordinate to him and their officers.

(b) The Tribunal shall consist of six members, of whom three shall be appointed from among the members of the Orissa Superior Judicial Service (Senior Branch) (thereinafter called the Judicial members of the Tribunal) and the other three members shall be appointed from among the members of the Orissa Finance Service, Class-I (Upgraded Super time) (hereinafter called the Accounts members of the Tribunal).

(c) The Senior-most Judicial member of the Tribunal shall be the Chairman of the Tribunal, who shall constitute benches, allot cases to the benches and exercise supervision in respect of their disposal,

(d) THe Chairman of the Tribunal shall look to the overall administration of the Tribunal subject to regulations to be made by the Tribunal with the previous sanction of the Government consistent with the provisions of this Act and rules.

(e) Any vacancy in the membership of the Tribunal shall be filled up by the Government.

(a) The Chairman or any other single member, us may be constituted by the Chairman, when the total disputed amount of tax and interest and penalty, if any, involved in a case does not exceed rupees two lakhs;

(b) The Chairman or any other Judicial member and an Accounts member, as may be constituted by the Chairman, when the total disputed amount of tax and interest and penalty, if any, involved in a case exceeds rupees two lakhs, but does not exceed rupees ten lakhs; and

(c) Three members of the Tribunal, which shall include the Chairman or any other Judicial member and one Accounts member, when the total disputed amount of tax and interest and penalty, if any, involved in a case exceeds rupees ten lakhs and shall be presided over by the Chairman or, as the case may be, the senior Judicial member.

(b) Where an appeal or application is heard by three members of the Tribunal and the members are divided in opinion on any point or points, such point or points shall be decided in accordance with the opinion of the majority.

Chapter III

The Incidence, Levy and Rate of Tax

(a) A Value Added Tax hereinafter called VAT on the sale or purchase of goods by a dealer; and

(b) A turnover tax in lien of VAT on the taxable turnover of sales of every retailer registered under this Act, whose annual gross turnover does not exceed rupees ten lakh and dealers of any specific class or category as may be notified under section 16.

(i) Whose gross turnover of sales or purchases, as the case may be, during a period of twelve consecutive months immediately preceding the appointed day exceeded the taxable limit; or

(ii) Who is registered or liable to be registered under the Orissa sales Tax Act, 1947 (14 of 1947) or the Central Sales Tax Act, 1956 (74 of 1956); or

(iii) To whom clauses (i) and (ii) do not apply, but-

(a) whose gross turnover exceeds the taxable limit during any period of twelve consecutive months, or

(b) Who has become liable to pay tax under the Central Sales Tax Act, 1956, or

(c) Who is registered as a dealer under the Central Sales Tax Act, 1956 (74 of 1956) or under this Act at any time on and from the appointed day,

(a) In cases of clauses (i) and (ii), with effect from the appointed day,

(b) In case of sub-clause (a) of clause (iii), with effect from the date immediately following the day on which his gross turnover exceeded the taxable limit during a period of any twelve consecutive months, and

(c) In cases of sub-clauses (b) and (c) of clause (iii), with effect from the date on which he becomes so liable, or the date of registration, whichever is earlier.

(a) The turnover of sales of goods exempted from tax under section 17;

(b) The turnover of sales of goods which are shown to the satisfaction of the Commissioner to have taken place-

(i) In course of inter-State trade or commerce, or

(ii) Outside the State, or

(iii) In the course of import into or export out of the territory of India.

(c) In case of turnover of sales in relation to works contract, the charges towards labour, services and other like charges subject to such conditions and restrictions as may be prescribed:

(d) Such other sales on such conditions and restrictions as may be prescribed.

(b) Where, before the time applicable under clause (a), the dealer selling the goods issues a tax invoice in respect of such sale, the sale shall, to the extent it si covered by the invoice or payment, be deemed to have taken place at the time the invoice is issued or the payment is received, whichever is earlier.

(c) Where a dealer issues a tax invoice in respect of any sale not falling under clause (b) within fourteen days from the time specified under clause (a), the sale shall be deemed to have taken place at the time the invoice is issued.

(i) From a registered dealer, in the circumstances in which no tax under section 11 is payable by that registered dealer on such goods, or

(ii) From any person other than a registered dealer,

(a) sold or disposed of otherwise; or

(b) Consumed or used in the manufacture of goods declared to be exempt from tax under this Act, or

(c) After their use or consumption in the manufacture of goods, such manufactured goods are disposed of otherwise than by way of sale in the State or in the course of inter-State trade or commerce or export out of the territory of India; or

(d) Used or consumed otherwise,

(a) In course of inter-State trade or commerce; or

(b) In course of export out of the territory of India; or

(c) To a dealer having business under-

(i) A SEZ; or

(ii) A STP; or

(iii) A EHTP; or

(d) To an EOU

Net tax payable = (O+P) - 1

(a) Sale of resale by him in the State;

(b) Use as inputs or as capital goods in the manufacturing or processing of goods, other than those specified in Schedule A and Schedule C and Schedule D for sale;

(c) Sale of goods subject to levy of tax at zero rate under section 18;

(d) For use as containers for packing of goods, other than those exempt from tax under this Act, for sale or resale; or

(e) Transfer of stock of taxable goods other than by way of sale, to any place outside the State:

(a) The input tax credit on purchases intended for the purpose of clause (e) shall only be allowed in respect of the amount of tax paid or payable in excess of tax at the rate of four per centum;

(b) If goods purchased are used partially for the purposes specified in this sub-section, input tax credit shall be allowed proportionately to the extent they are used for such purposes; and

(c) Where a registered dealer sells or despatches goods, both taxable and exempt under this Act, the input tax credit shall be allowed proportionately only in relation to the goods which are not so exempt.

(b) Input tax credit under clause (a) of this sub-section shall be allowed in lump sum provided that value of such capital goods is rupees one lakh or less.

(c) Input tax credit on capital goods shall be allowed only on purchase of such goods made on or after the appointed day.

(d) In case of closure of business before the commencement of commercial production, no input tax credit on capital goods shall be allowed and input tax credit carried forward, if any, shall be forfeited.

(e) In case where there is production of both taxable goods and goods exempt from tax, the input tax credit admissible on capital goods shall be determined in the manner prescribed.

(f) Where the used capital goods are sold, the same shall be subject to tax under this Act.

(a) In respect of any taxable goods purchased by him from another registered dealer for resale but given away by way of free sample or gift;

(b) Who makes payment of turnover tax as provided in section 16;

(c) In respect of capital goods used for the purposes and in the circumstances as specified in Schedule 'D'.

(d) In respect of goods brought from outside the State against the tax paid in any other State;

(e) In respect of stock of goods remaining unsold at the time of closure of business;

(f) In respect of goods purchased on payment of tax, if such goods are not sold because of any theft, damage and destruction;

(g) Where the tax invoice is not available with the dealer or there is evidence that the same has not been issued by the selling registered dealer from whom the goods are purported to have been purchased;

(h) In respect of goods purchased from a dealer whose certificate of registration has been suspended;

(i) In respect of sale of goods specified in Schedule 'A';

(j) In respect of sale of goods specified in Schedule 'C';

(k) In respect of raw materials used in manufacture or processing of goods, where the finished products are exempt from tax; and

(l) Executing works contract, in relation to works contracts executed by him, where he has exercised option under sub-section (3) of section 11 to pay tax by way of composition; and

(m) In any other case as the Government may, by notification, specify,

(a) Are intended for any of the purposes specified under sub-section (3) but are subsequently used otherwise, or

(b) Are lost due to theft, damage or for any other reason, or

(c) Remain unsold at the time of closure of business,

Chapter IV

Registration of Dealers, Cancellation and Amendment of Registration Certificate

(a) The applicant has not paid any dues payable by him under this Act or under the Orissa Sales Tax Act, 1947 or under the Central Sales Tax Act, 1956 in respect of any business;

(b) Any person associated with the business for which the application for grant of registration is made is in arrears of any dues under the provisions of this Act or the Orissa Sales Tax Act, 1947 in respect of any business; or

(c) Any earlier certificate of registration granted to the applicant or any persons associated with the business for which the application for grant of registration is made, had been cancelled under the provisions of this Act or the Orissa Sales Tax Act, 1947 (Orissa Act 14 of 1947) and the circumstances and reasons for which the certificate was cancelled continue to exist; or

(d) For any other good and sufficient reasons to be recorded in writing.

(a) If the defaulter happens to be a registered dealer, cancel the certificate of registration granted to him; or

(b) If the defaulter is a dealer who has applied for registration, refuse to grant him such registration:

(a) For realising any amount of tax, penalty or interest payable by the dealer ; or

(b) If the dealer has misused any forms or has failed to keep them in proper custody:

(a) Fails to file the returns under this Act within the time prescribed; or

(b) Knowingly furnishes incomplete or incorrect particulars in his returns; or

(c) Fails to pay any tax including penalty or interest, if any, due from him under the provisions of this Act; or

(d) Having issued tax or retail invoices, fails to account for the said invoices in his books of account; or

(e) Holds, accepts or furnishes or causes to be furnished, a way bill which he knows or has reason to believe to be false; or

(f) Is found to have no business at the place declared in the application for registration as his place of business; or

(g) Contravenes any of the provisions of this Act; or

(h) Discontinues his business and fails to furnish information regarding such discontinuation,

(a) Any business in respect of which a certificate of registration has been granted to a dealer under this Act is discontinued ; or

(b) In the case of transfer of business by a dealer, the transferee already holds a certificate of registration under this Act; or

(c) An incorporated body is closed down or otherwise ceases to exist; or

(d) The owner of a proprietorship business dies leaving no successor, or

(e) In case of a firm or association of persons, if it is dissolved; or

(f) A dealer has ceased to be liable to pay tax under this Act,

(a) In case of clause (a) and clause (b) of sub-section (1), with effect from the date of discontinuance or transfer of the business, as the case may be;

(b) In case of clause (c), (d), (e) and (f) of sub-section (1), from the date on which the liability of the dealer to pay tax has ceased,

(a) Fails, without sufficient cause, to comply with the provisions of sub-section (3) or sub-section (6); or

(b) Fails to surrender his certificate of registration as required under sub-section (7); or

(c) Fails to surrender his registration certificate alongwith unused way bills and the statutory declaration forms and the account of utilisation of such way bills and declaration forms, for which no account has been rendered under sub-section (8),

(a) Seller or disposes of his business or any part thereof or the place of business, or discontinues his business; or

(b) Effects, or comes to know of, any other change is the ownership of the business, or changes the name, style, constitution or nature of business, or changes his place of business or warehouse, or opens a new place of business, or makes any addition or deletion in the class or classes of goods dealt in or manufactured.

Chapter V

Return and Return Defaults

(a) Returns for such different periods; or

(b) Separate return for each or any branch or place of business inside the State, where such registered dealer has more than one branch or place of business in the State.

(a) In case of an individual, by the individual himself, and where the individual is absent, by any person duly authorised by him in the behalf;

(b) In the case of a Hindu Undivided Family, by the Kara.

(c) In the case of a company or local authority; by the principal officer thereof;

(d) In the case of a firm, by any partner thereof not being a minor;

(e) In the case of any other association, by any person competent to act in that behalf.

(a) Fails without sufficient cause to pay the amount of tax due as per the return for any tax period; or

(b) Makes voluntary disclosure under sub-section (5) of section 33 showing a higher amount of tax to be due than was shown by him in the original return; or

(c) Fails to furnish return,

(i) The tax, which he fails to pay according to the return; or

(ii) The difference of the amount of tax according to the voluntary disclosure; or

(iii) The tax payable for the period for which he has failed to furnish return;

(a) Fails to comply with the requirements under sub-section (2) or (3) of section 33; or

(b) Fails to furnish, the proof of payment in relation to any voluntary disclosure made in accordance with sub-section (5) of section 33, or

(c) Fails to furnish the proof of payment as required under sub-section (6) of section 33,

Chapter VI

Assessment, Refund and Recovery of Tax

(a) Escaped Assessment, or

(b) Been under-assessed, or

(c) Been assessed at a rate lower than the rate at which it is assessable;

(i) Wrongly any deduction from his turnover, or

(ii) Input tax credit, to which he is not eligible.

(a) Sales, within the State, of taxable goods purchased or received by him; and

(b) Purchases of taxable goods within the State, which are liable to be taxed under section 12,

(a) Tax due where return have been filed without full payment of tax due: or

(b) Tax assessed under section 39, 40, 42, 43, 44, or 45 less the sum already paid in respect of any tax period, together with interest required to be paid and the penalty, if any, imposed under section 42, 43 or section 44; or

(c) Penalty imposed under any provision of this Act not covered by clause (b); or

(d) Any other dues under this Act,

(i) Such penalty shall be payable from the date so specified on the amount ultimately found due from the dealer; and

(ii) If the tax or penalty, if any, is enhanced in such appeal or revision, such penalty on the excess amount shall be payable from the date by which the dealer is required to pay such excess amount.

(a) Any person from who any money is due or may become due to a dealer, who has failed to comply with notice served under sub-section (4) or sub-section (5) of section 50 of section 50 or has failed to pay any interest due from him under this Act; or

(b) Any person who holds or may subsequently hold any money for or on account of such dealer, to pay into Government Treasury in the manner specified in the notice issued under this sub-section either forthwith or upon the money becoming due or being held, or 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 of tax due from the dealer with the interest or penalty or both, as the case may be, as payable under this Act or the whole or the money when it is equal to or less than that amount.

(a) Not being a registered dealer, collects any sum by way of tax; or

(b) Being a registered dealer, collects any amount by way of tax in excess of the tax payable by him.

(b) When any such order of forfeiture is made, the assessing authority shall publish a notice in the prescribed manner specifying the names and addresses of the persons from whom tax was collected in contravention of section 35 and other details, if any, relating thereto as may be prescribed and giving such persons an opportunity to file their claims, accompanied by such documentary or other evidence as each such person may furnish to establish his claim, within sixty days from the date of publication of the notice, for refund of the amount collected from them.

(c) If, on receipt of any such claim, the assessing authority is satisfied that the whole or any part of the amount of such claim is refundable, he shall refund such amount to the person concerned within one month after the amount is collected or recovered from the person or dealer who collected the amount in contravention of section 35.

(a) The Central Government or any State Government, or

(b) Any local authority, or

(c) Any authority or corporation established by or under a statute, or

(d) Any company incorporated under the Companies Act, 1956 (1 of 1956) including any State or Central Government undertaking, or

(e) Any co-operative society, or any other association registered under the Societies Registration Act, 1860 (21 of 1860),

(b) Where such a certificate is produced by a contractor before the deducting authority, until such certificate is cancelled by the assessing authority, the deducting authority shall either make no deduction of tax or make the deduction of the tax, as the case may be, in accordance with the said certificate.

(b) As soon as may be, on receipt of the application for such refund, the assessing authority shall direct a tax audit under sub-section (2) of section 41 of the transactions pertaining to such refund as covered under the return referred to in clause (a) which shall be competent within a period of one month from the date of issue of such direction, to establish the correctness of such claim:

(c) Where, on assessment based on tax audit under clause (b), the amount of refund claimed is found to be inadmissible or more than what is admissible, then, the claim of refund of excess amount shall be disallowed and if, in consequence thereof, any amount is found due from the dealer, he shall be liable to pay interest at the rate of two per centum per month on that amount from the date of filing of the return giving rise to the refund till the date of the assessment.

(d) The dealer may, by application made in this behalf, exercise option for grant of provisional refund pending audit, investigation and assessment.

(e) Subject to the provisions of clause (b) and (c), the assessing authority may require a dealer exercising option under clause (d) to furnish Bank guarantee to the satisfaction of the assessing authority for an amount equal to the amount of refund claimed;

(f) On receipt of such Bank guarantee, the assessing authority shall, subject to the procedure prescribed, grant the dealer a provisional refund of such amount as may be determined to be refundable;

(g) Where a provisional refund has been granted, the assessing authority may, after an audit under section 41 and assessment under section 42 when so required as a result of such audit, grant final refund, and the excess amount, if any, allowed by provisional refund may be recovered as if it is a tax payable under this Act and, thereafter, release the Bank guarantee furnished by the dealer at the time of grant of provisional refund, in the manner prescribed:

(i) The dealer is found to have made an incorrect claim of refund against which payment has already been made; or

(ii) The dealer fails to produce evidence in support of the claim of refund; or

(iii) The refund claim is reduced by any reason whatsoever and the dealer fails to pay the excess amount of refund provisionally allowed, to such extent and in such manner as may be prescribed, and, where the refund claim is reduced, the dealer shall be liable to pay interest at the rate of two per centum on the excess amount of refund so granted from the date of such grant to the date of its recovery.

(h) Where any refund claimed is found to be admissible under this sub-section, it shall be granted within a period of ninety days from the date of application for such refund.

(b) Any person, who is authorised by the body referred in clause (a), entitled to refund thereunder, may apply to the assessing authority for such refund in the manner and within the time as may be prescribed.

(b) Any refund covered under clause (a) shall be granted in such manner and subject to such conditions and restrictions as may be prescribed.

(b) Where a dealer opts for refund under clause (a), he shall make an application to that effect to the assessing authority within such time and in such manner as may be prescribed.

(c) Any refund covered under this sub-section shall be granted in such manner and subject to such conditions and restrictions as may be prescribed.

(b) The interest payable under clause (a) shall be calculated on the amount of refund as due after deducting therefrom any tax, interest, penalty or nay other dues payable by the dealer under this Act.

(c) If, as a result of any order passes under this Act, the amount of such refund is enhanced or reduced, such interest shall be enhanced or reduced accordingly, and where the interest is reduced, the excess amount of interest granted, if any, shall be recovered as if it is an arrear of tax under this Act.

(a) Found to be not due or not defaulted, the interest paid, if any, on that account shall be refunded; or

(b) Reduced, the interest payable on that account shall be calculated accordingly and the excess amount of interest paid, if any, shall be refunded:

Chapter VII

Accounts and Records

(i) A tax invoice shall not be issued by a registered under to a retailer registered under this Act who is paying turnover tax under section 16; and

(ii) Not more than one tax invoice shall be issued for any taxable sale.

(a) Any information or additional information including a return under this Act, or

(b) Any document including electronic records.

Chapter VIII

Liability in Special Cases

(a) Who is a liquidator of any company liable for any dues under this Act which is being wound up, whether under the orders of a Court or otherwise; or

(b) (b) Who has been appointed as the receiver of any assets of a company liable for any dues under this Act (hereinafter referred to as liquidator),

(a) The tax payable by such firm, association or Family up to the date of such discontinuance may be assessed as if no such discontinuance had taken place: and

(b) Every person who was at the time of such discontinuance a partner of such firm or a member of such association or Family, shall, notwithstanding such discontinuance, be liable jointly and severally for the payment of tax penalty and interest, if any, payable by such firm, association or Family, whether such tax has been assessed and penalty imposed prior to or after such discontinuance.

(a) If the business carried on by the dealer is continued after his death by his legal representative or any other person, he shall be liable to pay tax including penalty due from the dealer under this Act, whether such tax has been assessed, penalty imposed and interest levied before his death but has remained unpaid, or is assessed, imposed and levied after his death; and

(b) If the business carried on by the dealer is discontinued after his death, his legal representative shall be liable to pay, out of the estate of the deceased, to the extent the estate is capable of meeting the charge, the tax including penalty and interest due from the dealer under this Act, whether such dues have been determined before his death but has remained unpaid, or is determined after his death.

(b) Where the commission agent has hold or purchased any goods on behalf of the principal and it is shown to the satisfaction of the Commissioner that the tax has been paid by such commission agent on such goods the principal shall not be liable to pay the tax again in respect of the same transaction.

(c) Where a manager or agent of a non-resident dealer sells or purchases any goods on behalf of that non-resident dealer in the State, the non-resident dealer and the manager or agent residing in the State shall be jointly and severally liable to pay tax on the turnover of such sales or purchases, as the case may be:

(b) Notwithstanding anything contained in the said order, for the purposes of this Act, the said two or more companies shall be treated as distinct companies and shall also be treated as such for all periods upto the date of the said order, and the registration certificate of the company, which merged, shall be cancelled with effect form the date of the said order.

Chapter IX

Liability to Produce Accounts and Supply of Information

(a) by general or special notice, require any dealer or class of dealers to furnish the names, addresses and such other particulars as he may fund necessary relating to the persons and dealers who have purchased any goods from or sold any goods to such dealer or class of dealers during any given period;

(b) Call for details and particulars regarding the services provided by public utilities or any person which, in his opinion, are relevant and useful and cause the results of the survey to be published, from time to time, in any manner as he deems fit; and

(c) Enter any place where a person is engaged in business, but is not registered or has not applied for grant of certificate of registration under this Act, whether such place is the principal place of business or not and require any person, whether the owner of the business or not, including any employee or any other person who at the time and place be attending in any manner to, or helping in, the business-

(i) To afford him the necessary facility to inspect such books of account or other documents as the Commissioner may require from him and which he may be maintaining in course of business at such place, and

(ii) To furnish such information as he may require as to any matter which according to him is useful for, or relevant to, any proceeding under this Act.

(a) Produce before him such books of account, registers and documents:

(b) Furnish such information relating to the stock of goods or purchases, sales or deliveries of goods, or any other information relating to his business, as may be deemed necessary for the purpose of this Act;

(c) Allow access to the electronic records, if maintained by the dealer.

(a) Any person, to whom a notice under this Act was issued to produce or cause to be produced any books of account or other documents, has failed to produce or cause to be produced such books of account or other documents as required by or under such notice; or

(b) Any person, to whom a notice as aforesaid has been or may be issued, may not produce or cause to be produced any books of account or other documents considered to be useful for, or relevant to, any proceeding under this Act; or

(c) Books of account, registers or documents of any dealer may be destroyed, mutilated, altered, falsified or secreted or nay sales by that dealer have been or may be suppressed, or any goods have not been or may not be accounted for in the books of account, registers or other documents required to be maintained under this Act, with a view to evading or attempting to evade payment of tax due under this Act,

(i) Inspect or survey the place of business of a dealer or any other place where it is believed by the Commissioner or the person so authorised that business is being carried on or accounts and documents are being kept by such dealer;

(ii) Direct such dealer to produce accounts, registers and documents relating to his business activities for examination;

(iii) Inspect the goods in the possession of the dealer or in the possession of anybody else on behalf of such dealer, wherever such goods are placed:

(iv) Make search of such places including the search of the person found there, where concealment of facts relating to the business is suspected;

(v) break open the door of any premises or break open any almirah box, receptacle in which any goods, amounts, registers or documents of the dealer are expected to be concealed, where access to such premises, almirah, box or receptacle is denied;

(vi) Record the statement of the dealer or his manager, agent or servant or take extracts from the record and put identification marks on accounts, registers or documents and on any door, almirah, box or receptacle.

(i) Who transports or holds in custody any goods of a dealer, to give any information in his possession in respect of such goods or to allow inspection thereof; and

(ii) Who maintains or has in his possession any accounts, registers or documents relating to the business of a dealer, to produce such accounts, registers or documents for inspection.

(b) If the officer authorised under sub-section (6) has reason to suspect that any transporter, bailee, or the owner or lessee of a warehouse to whom the goods are delivered for transportation is attempting to contravene the provisions of clause (a), or evade payment of any tax due from him under this Act, he may, for reasons to be recorded in writing, seize any accounts, registers or documents as referred to in sub-clause (ii) of the said clause, of the transporter, bailee or, as the case may be, the owner or lessee of the warehouse as may be necessary, granting a receipt for the same and, on such seizure, he shall retain the same as long as may reasonably be necessary for examination thereof or for appropriate legal action.

(c) The powers conferred under clause (b) shall include the power to break open any almirah or box or receptacle in which in account, register or other documents of the transporter, bailee or the owner ow lessee of a warehouse are believed to have been kept, or to break open the doors of any premises where any such account, register or documents of any goods referred to in the said clause are believed to have been kept.

(d) The powers under clause (c) shall not be exercisable by an officer below the rank of a Sales Tax officer appointed under this Act.

(e) The Commissioner shall have the power to seize any goods vehicle or seize and confiscate any goods of any transporter, bailee or owner or lessee of a warehouse, which are found in any officer, shop, godown, vehicle or vessel or any other place while in transit but not accounted for by the transporter, bailee, or the owner or lessee of the warehouse, as the case may be, in his accounts, registers and other documents maintained in respect of such goods:

(a) Carry with him the records of the goods including "Challan" and "Billies" bills of sale or despatch memos and prescribed declaration form or way bill duly filled in and signed by the consignor of goods carried;

(b) Stop the vehicle or carrier at every check-post or barrier set up under sub-section (1) or at any other place when so required by an officer authorised by the Commission in this behalf:

(c) Produce all the documents, including the prescribed way bill relating to the goods, before the officer-in charge of the check-post or barrier or the authorised officer,

(d) Give all the information in his possession relating to the goods" and

(e) Allow the inspection of the goods or search of the vehicle by the officer-in-charge of the check-post or barrier or the authorised officer.

(a) Direct the driver or the person in charge of the goods or carrier of the goods not to part with the goods in any manner including transportation or re-booking the same till a verification of, or an enquiry into such goods is made, which shall be completed within a period of seven days: and

(b) Seize the goods for reasons to be recorded in writing giving receipt for the goods so seized to the person from whose possession or control the goods are seized.

(a) Declare, in such from and manner before the officer-in-charge of the first check-post or barrier, as the case may be, after his entry into the State, that the goods under transport shall not be unloaded, delivered or sold inside the State;

(b) Obtain, in the prescribed manner, a transit pass in such form containing such particulars as may be prescribed, from the said officer; and

(c) Deliver the transit pass so obtained to the officer-in-charge of the last check-post or barrier before his exist from the State, failing which, it shall be presumed that the goods carried thereby have been sold within the State by the owner or person in charge of the vehicle or boat:

(a) It is presumed under clause (c) of sub-section (10) that the goods carried by the vehicle or boat, as the case may be, has been sold inside the State; or

(b) The driver or the other person-in-charge of the vehicle or boat, as the case may be, fails, without reasonable cause, to produce or deliver the transit pass required under sub-section (10); or

(c) He has reason to believe that the goods carried by the vehicle or boat, as the case may be, has been unloaded, delivered or sold inside the State in contravention of the declaration furnished under sub-section (10).

(i) Before taking any action for confiscation of the goods, the officer shall give the driver or the person in charge of the vehicle or boat, as the case may be, an opportunity of being heard and, if necessary, may make an enquiry in the manner prescribed ; and

(ii) Where the goods under transport are not available at the time of seizure of the vehicle or boat, as the case may be; the officer may detain the vehicle or boat until such penalty and tax are paid and shall take or cause to be taken any steps he may consider proper for the temporary safe custody of the vehicle or boat, and the registered owner or the person having possession or control of such vehicle of boat and the driver or boatmen, as the case may be, thereof shall be bound to comply with orders and directions as the said officer may, in respect of the movement of such vehicle or boat, issue for giving effect to such seizure.

(a) Rupees two thousand for contravention of the provision of sub-section (1); and

(b) An amount equal to three times of the tax payable in respect of the goods involved in the transactions of a dealer which appears to have been evaded by such dealer, if the contravention pertains to the provisions of sub-section (2).

(i) "Clearing, forwarding, booking agent or broker" referred to in sub-section (1) shall include a person who renders his services for clearing, forwarding or booking of or taking delivery of consignment of goods at railway premises, air cargo complex, container depot, booking agency, goods transport company officer or any place of loading or unloading of goods or contrives, makes and concludes, bargains and contracts for or on behalf of any dealer for a fee, reward, commission, remuneration or other valuable consideration or otherwise; and

(ii) "Person transporting goods" referred to in sub-section (1) shall include the owner, the manager, agent, driver and employee of the owner, a person who is in charge of a place of loading or unloading of goods, or of goods carrier carrying such goods for despatch to other places, or who gives delivery of any consignment of such goods to the consignee.

Chapter X

Appeal, Revision and Rectification

(a) A notice issued under this Act calling upon a dealer for assessment or any person to show cause as to why he shall not be prosecuted for an offence under this Act; or

(b) An order pertaining to the seizure or retention of any books of account, registers and other documents of a dealer; or

(c) An order sanctioning prosecution of a dealer under this Act; or

(d) An interim order passed in the course of any proceeding under this Act.

(a) Confirm, reduce or annual the assessment of tax, or the imposition of interest or levy of penalty, if any; or

(b) Enhance the assessment including any part thereof whether or not such part is the subject matter in the appeal; or

(c) set-aside the assessment and direct the assessing authority to make a fresh assessment after such further enquiry as may be directed.

(a) Period for filing of appeal against the order as provided under section 77 or 78 has not expired; or

(b) The order has been made a subject matter of appeal under section 77 or 78; or

(c) More than five years have expired after the order sought to be revised was passed.

(a) If the order is passed by the Commissioner, to the High Court; and

(b) If the order is passed by any authority subordinate to the Commissioner, to the Commissioner.

(b) Where the High Court remits the matter to the Tribunal under clause (a) with its opinion on the question or questions of law raised, the latter shall amend the order passed by it in conformity with such opinion.

(b) The application for review shall be preferred within such time and in such manner as may be prescribed and shall, where it is preferred by any person other than the Commissioner, be accompanied by a fee of rupees one hundred.

Chapter XI

Offences, Prosecution and Composition of Offences

(a) Knowingly furnishes a false return; or

(b) Not being a registered dealer, falsely represents that he is a registered dealer at the time when he sells or purchases goods; or

(c) Knowingly produces false bill, invoice, cash memorandum, voucher, declaration, certificate or other documents for evading tax payable under this Act; or

(d) Knowingly keeps false account of the value of the goods purchased or sold by him in contravention of the provisions of this Act; or

(e) Knowingly produces false accounts or documents, or furnishes false information; or

(f) Issues to any person, certificate, declaration or tax invoice under this Act or any false bill, cash-memorandum, voucher, delivery challan, lorry receipt or other document which he knows or has reasons to believe to be false; or

(g) Wilfully attempts, in any manner whatsoever, to evade any tax, interest or penalty payable under this Act,

(i) Where the amount of tax, interest or penalty, or all of them together involved is less than rupees fifty thousand in a year, with imprisonment of either description for a term which shall not be less than three months but which may extend to one year and with fine; and

(ii) In any other case, with imprisonment of either description for a term which shall not be less than six months but which may extend to two years and with fine.

(a) Is engaged in any business as a dealer without being registered in wilful contravention of section 24; or

(b) Fails, without sufficient cause, to keep any accounts or record as directed in accordance with the provisions of this Act; or

(c) Fails, without sufficient cause, to keep such records as required by the Commissioner under sub-section (3) of section 61; or

(d) Fails, without sufficient cause, to comply with any requirements made of him under section 73; or

(e) Voluntarily obstructs any officer making inspection or search or seizure under section 73, 74 or 75,

(a) Rupees two thousand, if the tax due for the period covered by the return, not so furnished, does not exceed rupees twenty thousand;

(b) Rupees five thousand, if the tax due for the period covered by the return, not so furnished, exceeds rupees twenty thousand but does not exceed rupees one lakh;

(c) Rupees ten thousand, if the tax due for the period covered by the return, not so furnished, exceeds rupees one lakh.

(a) "Company" means any body corporate and includes a firm or other association of individuals; and

(b) "Director", in relation to the firm, means partner in the firm.

Chapter XII

Miscellaneous

(a) Any of the particulars referred to in sub-section (1) for the purpose of investigation or prosecution under this Act or the Indian Penal Code, 1860 or any other enactment for the time being in force; or

(b) Such facts to an officer of the Central Government or any State Government as may be necessary for verification of such facts or for the purposes of enabling that Government to levy or realise any tax imposed by it; or

(c) Any such particulars when such disclosure is occasioned by the lawful employment under this Act of any process for the service of any notice or the recovery of any demand; or

(d) Any such particulars to a Civil Court in any suit or proceeding to which the Government or nay authority under this Act is a party and which relates to any matter arising out of any proceeding under this Act or under any other law for the time being in force authorising any such authority to exercise any powers thereunder ; or

(e) Any such particulars by any public servant when the disclosure is occasional by the lawful exercise by him of his powers under the Indian Stamp Act, 1899 to impound an insufficiently stamped document; or

(f) Any such particulars to the Reserve Bank of India as are required by that Bank to enable it to compile financial statistics ; or

(g) Any such particulars to any officer appointed by the Comptroller and Auditor General of India for the purpose of audit of tax receipts or refunds ; or

(h) Any such particulars relevant to any inquiry into to charge of misconduct in connection with income tax proceedings against a legal practitioner or chartered Accountant, to the authority empowered to take disciplinary action against members of the profession to which he belongs; or

(i) Such particulars to the officer of the Central Government or any State Government for such other purposes, as the State Government may, by general or special order direct; or

(j) Any information relating to any class of dealers or class of transactions for publication if, in the opinion of the Commissioner, it is desirable in the public interest, to publish such information.

(a) By a person, who is entitled or required to appear before any authority in connection with any proceeding under this Act, may attend-

(b) By a legal practitioner or chartered Accountant or a cost Accountant who is not disqualified by or under sub-section (2); or

(c) By a tax practitioner who possesses the prescribed qualification and is enrolled by the Commissioner for the purpose and who is not disqualified by or under sub-section (2).

(a) Who has been removed or dismissed from Government service, or

(b) Who, being a legal practitioner or chartered Account or cost Accountant, is found guilty of misconduct is connection with any proceeding under this Act by an authority empowered to take disciplinary action against the members of the profession to which he belongs; or

(c) Who, being a tax practitioner enrolled by the Commissioner, is found guilty of any misconduct.

(a) Enforcing attendance of any person and examining him on oath or affirmation;

(b) Compelling the production of accounts and documents; and

(c) Issuing summons for the examination of witnesses.

(a) The receipt or despatch of any goods made by him is otherwise than by way of purchase or sale of such goods by him;

(b) Any sum of money received or paid by him in the course of business is otherwise than by way of sale of purchase of goods by him;

(c) Any purchase or sale of goods made by him is not liable to tax by reason of such purchase or sale being outside the State or in the course of inter-State trade or commerce or in the course of the import of the goods into or the export of the goods out of the territory of India;

(d) Any purchase or sale of goods made by him is exempt from tax or leviable to tax at a particular rate;

(e) Any purchase or sale of goods make by him is not taxable because of return of goods;

(f) Any purchase, sale, import or export of goods made by him is not part of his gross turnover;

(g) Any part of the gross turnover declared by him in the returns filed is not table;

(h) Any tax paid under this Act relates to the goods purchased by him, for which, it is part of the input tax in respect of the purchase of such goods by him;

(i) Input tax in respect of any purchase of goods made by him is part of the input tax credit admissible to him;

(j) Any amount has been paid by him as tax, interest or penalty under this Act; or

(k) Any book, document or account kept or found in his business premises or any place including a godown, warehouse, vehicle or vessel over which he has ultimate control does not relate to his business,

Chapter XIII

Repeal and Savings, Adoptation and Transitional Provisions

(a) Revive anything not in force or existing at the time at which the repeal takes effect; or

(b) Affect the previous operation of the repealed Act or anything duly done or suffered thereunder; or

(c) Affect any right, privilege, obligation, or liability acquired, accrued or incurred under the repealed Act; or

(d) Affect any tax, surcharge, penalty, interest as are due or may become due or any forfeiture or punishment incurred or inflicted in respect of any offence or violation committed under the provisions of the repealed Act; or

(e) Affect any investigation, enquiry, assessment proceeding, any other legal proceeding or remedy in respect of any such tax, surcharge, penalty, interest, right, privilege, obligation, liability, forfeiture of punishment, as aforesaid,

(a) Any person appointed by the Government as the Commissioner of Sales Tax under sub-section (1) of section 3 of the repealed Act and continuing in office as such on the day immediately before the appointed day shall, on and from the appointed day, be deemed to have been appointed as the Commissioner of Sales Tax under sub-section (1) of section 3 of this Act and he shall exercise such powers and discharge such functions as are or may be conferred or imposed by or under the provisions of this Act;

(b) Such other persons who have been appointed by the Government under sub-section (3) of section 3 of the repealed Act as Additional Commissioner of Sales Tax, Special Additional Commissioner of Sales Tax, Assistant Commissioner of Sales Tax, Sales Tax Officer, Assistant Sales Tax Officer and Inspector of Sales Tax to assist the Commissioner under the said Act and continuing as such in office on the day immediately before the appointed days shall, on and form the appointed day, be deemed to have been, respectively, so appointed under sub-section (2) of section 3 of this Act.

(c) All such power and duties, as have been conferred or imposed by or under the provisions of the repealed Act or the rules made and notifications issued thereunder or the persons appointed under any designation prescribed under the said Act to assist the Commissioner, and are exercised and performed on the day immediately before appointed days within or over a Circle or a Range or the State, as have been assigned to them by the Commissioner, shall, on and from the appointed day, for all intents and purposes, be deemed to have been conferred or imposed by or under the corresponding provisions of this Act on the persons who, under clause (b) are deemed to have been appointed under such designation to assist the Commissioner under this Act and shall be exercised and performed by them within or over the same circle or Range or the State as the case may be, as if such area has been assigned to them by the Commissioner in accordance with the provisions of this Act for purpose of exercising their jurisdiction.

(d) The Chairman or any member of the Orissa Sales Tax Tribunal constituted under the repealed Act and continuing in office as such immediately before the appointed day, shall, on and from the appointed day, be deemed to have been respectively appointed as the Chairman or member of the Tribunal and shall exercise such powers and perform such functions as are conferred or imposed by or under the provisions of this Act;

(e) All forms including way bill and transit pass prescribed under the repealed Act or the rules made or notifications issued thereunder and in force and use for any purpose on the day immediately before the appointed day, shall be used for the same purpose under the provisions of this Act.

(f) Any application for issue of way bill, pending on the day immediately before the appointed day, shall for all intent and purposes of this Act be deemed to have been made under this Act and shall be disposed of in accordance with the provisions of this Act;

(g) Any way bill referred to in clause (e) which is valid on the day immediately before the appointed day and endorsed for the transport of goods into or outside the State shall continue to be valid for all intends and purposes of this Act on and from the appointed day if the period of validity of such way bill has not expired;

(h) A dealer, required to furnished a return for any period by a specific date to the prescribed authority under the provisions of the repealed Act or the rules made or notice issued thereunder, shall furnish such return under this Act by the said date to the corresponding authority as if he is so required to furnish the return under the provisions of this Act;

(i) For the purposes of clauses (a) to (b), all rules made or notification or notices issued or orders passed under or in pursuance of the provisions of the repealed Act shall be deemed to have been made, issued or passed under or in pursuance of the corresponding provisions of this Act, unless they are inconsistent with this Act:

(j) A registered dealer, who was eligible to the benefit of deferment of tax in terms of a notification issued under the repealed Act on the day immediately before the appointed day and who would have continued to be so eligible on appointed day under the repealed Act had this Act not come into force, shall be allowed the benefit of such deferment in respect of tax payable by him under this Act, by the Commissioner, for the balance unexpired period subject to the limit of such percentage of gross value of the fixed capital investment to which such dealer would have been entitled and the same restrictions and conditions as specified in such notification:

(k) Nothing contained in clause (j) shall prevent the Commissioner from withdrawing the benefit of deferment of tax, if the registered dealer eligible for such deferment violates the restrictions and conditions subject to which such deferment was allowed:

(l) A registered dealer, who was eligible to the benefit of, or was entitled to exemption from payment of tax on purchase of raw materials, spare parts, packing materials and sale of its finished products under the repealed Act on the day immediately before the appointed day, shall, on and from the appointed day, be allowed the benefits of deferment of tax, in lieu of such exemption subject to such restrictions and conditions as the Government may, by notification, specify in this behalf.

Schedule A

(See section 17)

List of Goods Exempted From Value Added Tax

Schedule B

(See section 14)

List of Goods Subject to Value Added Tax on Turnover of Sales or Purchases

Part I

Goods Taxable at The Rate of 1%

Part II

Goods Taxable at the Rate of 4%

Part III

Goods Taxable at The Rate of 12.5%

(All other goods except those specified in Schedule C)

Schedule C

(See section 14)

List of Goods Subject to Tax at a Single Point on Turnover of Sales or Purchases

Schedule D

(See sub-section (8) of section 2 and sub-section (5) of section 20)

Schedule E

Procedure for Recovery of Tax

[See sub-section (7) of section 50]

Part I

General Provisions

(a) "Certificate" means a certificate received by the Tax Recovery Officer under rule 2:

(b) "Defaulter" means the assessee or dealer or any other person mentioned in the certificate;

(c) "Execution" in relation to a certificate, means recovery of arrears in pursuance of the certificate;

(d) "Form" means a form given in the Annexure to this Schedule;

(e) "Movable property" includes growing crops;

(f) "Rule" means a rule contained in this Schedule;

(g) "Share in a company" includes stock, debentures or bonds; and

(h) "Tax Recovery Officer" means any Officer of the Government not below the rank of Sales Tax Officer who may be authorised by the Government, by general of special notification, to exercise the powers of a Tax Recovery Officer and Government may appoint more than one such Officer and specify their local jurisdiction;

(a) Is not able to recover the entire amount by the sale of the property, whether movable or immovable or both, within his jurisdiction; or

(b) Is of the opinion that, for the purpose of expediting or securing the recovery of the whole or any part of the amount under this Schedule, it is necessary so to do.

(a) By attachment and sale of the defaulter's moveable property;

(b) By attachment and sale of the defaulter's immovable property; or

(c) By arrest of the defaulter and his detention in prison.

(a) Interest at the rate of eighteen per centum per annum from the day commencing after the end of the period specified in rule 3; and

(b) All charges incurred in respect of-

(i) The service of notice upon the defaulter to pay the arrears and of warrants and other processes; and

(ii) All other proceedings taken for realising the arrears.

(a) There shall first be paid to the assessing authority the costs incurred by him;

(b) There shall, in the next place, be paid to the assessing authority the amount due under the certificate in execution of which the assets were realised;

(c) If there remains a balance after payment of the sums referred to in clauses (a) and (b), there shall be paid to the assessing authority therefrom any other amount recoverable under the procedure provided by this Act which may be due on the date on which the assets were realised; and

(d) The balance, if any, remaining after the payment of the amount, if any, referred to in clause (c) shall be paid to the defaulter.

(a) In the case of immovable property, at the date of the service of notice issued under this Schedule to pay the arrears; or

(b) In case of movable property, all the date of the attachment, he had some interest in, or was possessed of, the property in question.

(a) The amount due with costs and all charges and expenses resulting from the attachment of any property or incurred in order to hold a sale, are paid to the Tax Recovery Officer; or

(b) The certificate is cancelled.

Part II

Attachment and Sale of Movable Property

(a) Where such produce is growing crop, on the land on which such crop has grown; or

(b) Where such produce has been cut or gathered on the threshing floor or place for treading out grain or the like, or fodder-stack, on or in which it is deposited.

(a) A debt not secured by a negotiable instrument,

(b) A share in a company, or

(c) Other movable property not in the possession of the defaulter except property deposited in, or in the custody of any court.

(i) In the case of debt, the creditor from recovering the debt and debtor from making payment thereof until further order of the Tax Recovery Officer,

(ii) In the case of a share, the person in whose name the share may be standing from transferring the same or receiving any dividend thereon, and

(iii) In case of any other movable property (except as aforesaid), the person in possession of the same from giving it over to the defaulter.

(i) The Tax Recovery Officer cancels the notice; or

(ii) The assessing authority or the defaulter applies to the Court receiving such notice to execute the decree.

(a) In the case of property attached by actual seizure.-

(i) In the village in which the property was seized, or, if the property was seized in the town or city, then in the locality in which it was seized, and

(ii) At such other places as the Tax Recovery Officer may direct, and

(b) In the case of property attached otherwise than by actual seizure, in the office of the Tax Recovery Officer.

(a) If such produce is a growing crop, on or near the land on which such crop has grown, or

(b) If such produce has been cut or gathered, at or near the threshing floor or place for treading out grain or the like, or fodder-stack on or in which it is deposited.

(a) A fair price, in the estimation of the Tax Recovery Officer. is not offered for it; and

(b) The owner of the produce or a person authorised to act on his behalf, applies to have the sale postponed till the next day or, if a market is held at the place of sale, till the next market day,

Part III

Attachment and Sale of Immovable Property

(a) The property to be sold;

(b) The Revenue, if any, assessed upon the property or any part thereof;

(c) The amount for the recovery of which the sale is ordered; and

(d) Any other thing which the Tax Recovery Officer considers it material for a purchaser to know, in order to judge the nature and value of the property.

(a) For the payment to the assessing authority, the amount specified in the proclamation of sale as that for the recovery of which the sale was ordered, with interest thereon at the rate of twelve per centum per annum calculated from the date of proclamation of sale to the date when the deposit is made; and

(b) For the payment to the purchaser, as penalty, a sum equal to five per centum of the purchase money, but not less than one rupee.

(a) No sale shall be set aside on any such ground, unless the Tax Recovery Officer is satisfied that the applicant has sustained substantial Recovery Officer is satisfied that the applicant has sustained substantial injury by reason of the non-service or irregularity; and

(b) An application made by a defaulter under this rule shall be disallowed unless the applicant deposits the amount recoverable from him in execution of the certificate.

Part IV

Arrest and Detention of the Defaulter

(a) That the defaulter, with the object or effect of obstructing the execution of the certificate has, after the receipt of the certificate in the officer of the Tax Recovery Officer, dishonestly transferred, concealed, or removed any part of his property; or

(b) That the defaulter has, or had since the receipt of the certificate in the office of the Tax Recovery Officer, the means to pay the arrears of some substantial part thereof and refuses or neglects or has refused or neglected to pay the same.

(a) Where the certificate is for a demand of an amount exceeding two hundred and fifty rupees, for a period of six months; and

(b) In any other case, for a period of six weeks;

(i) On the amount mentioned in the warrant for his detention being paid to the officer-in-charge of the civil prison, or

(ii) On the request of the assessing authority who has issued the certificate or of the Tax Recovery Officer on any ground other than the grounds mentioned in rules 73 and 74:

(a) No dwelling house shall be entered after sun-set and before sunrise:

(b) No outer door of a dwelling house shall be broken open, unless such dwelling house or a portion thereof is in the occupancy of the defaulter and he or any other occupant of the house refuses or in any way prevents access thereto, but when the person executing any warrant has duly gained access to any dwelling house, he may break open the door of any room or apartment if he has reason to believe that the defaulter is likely to be found there; and

(c) no room which is in the actual occupancy of a woman who, according to the customs of the country, does not appear in public, shall be entered into, unless the officer authorised to make the arrest has given notice to her that she is at liberty to withdraw and has given her reasonable time and facility for withdrawing.

(a) A woman, or

(b) Any person who, in his opinion, is a minor or of unsound mind.

Part V

Miscellaneous

Annexure

Form 1

(See rule 2)

Certificate of tax, etc., due

The Tax Recovery Officer.

.............................................................

.............................................................

Table

Yours faithfully.

Assessing Authority

Form 2

(See rule 3)

Notice

Table

Tax Recovery Officer

Form 3

(See rule 21)

Warrant of attachments

Table

Schedule

Tax Recovery Officer

Form 4

(See rule 26)

...........................

...........................

Whereas Shri......................................... has failed to pay Rs.................... being the tax/ penalty/ interest, it is ordered that said Shri ............................... be and is hereby prohibited and restrained, until further order by the undersigned.

*(i) From receiving from you the debt alleged now to be due from you to the said Shri........................................ and that you are hereby prohibited and restrained until further order by the undersigned from making payment of the said debt or any part thereof to any person whomsoever or otherwise than to the undersigned.

*(ii) From making any transfer of shares in ...................... company or from receiving payment of any dividend thereon, and you are hereby prohibited and restrained from permitting any such transfer or making any such payment.

*(iii) From receiving you the following property in your possession to which defaulter Shri................................ is entitled and you are hereby prohibited and restrained until further order by the undersigned from delivering the said property to any person or persons whomsoever.

Description of property

...........................

Tax Recovery Officer

*Strike off whichever is not applicable.

Form 5

(See rule 27)

Attachment of a decree

The Munsif/................................

Judge of the Court of.............................

I have the honour to inform you that the decree obtained in your Court on the day of ................20.................... by Shir......................... in Suit No....................................... of 20 .............................. has been attached by the undersigned in execution of a certificate issued by the assessing authority. You are therefore requested to stay the execution of the decree of your court until you receive an intimation from the undersigned that the present notice has been cancelled or until execution of the said decree is applied for by the assessing authority, i.e....................... or by Sri.......................

Yours faithfully,

Tax Recovery Officer

Form 6

(See rule 28)

Attachment of the share or interest in movable property

Shri................................

..........................................

Whereas you have failed to pay Rs.................................. being the tax/ penalty/ interest, you are hereby prohibited and restrained until further order by the undersigned from transferring the share or interest you have in the property specified below or from charging it in any way.

Description of the property.................................................

Tax Recovery Officer

Form 7

(See rule 30)

Prohibitory order

.....................................

....................................

The assessing authority, i.e.............................. has issued a certificate under rule 2 of Schedule E to the Orissa Value Added Tax Act, 2004 for recovery of Rs.................... from Shri................... It is stated that Rs.................... is due by you to said Shri......................... on account of ................................ (Specify how much money is due and on what account) .......................... I request that you will hold the said money subject to the further order by me.

Yours faithfully,

Tax Recovery Officer

Form 8

(See rules 37 and 51)

Proclamation of sale

Name and address of the defaulter .......................................

Schedule

Tax Recovery Officer

Form 9

(See rule 47)

Notice of attachment of immovable property

Part 1

....................................

...................................(Defaulter)

Table

Part II

The General Public

A copy of the notice of attachment issued to Shri..................................... is enclosed herewith. The immovable property mentioned therein have been attached by the undersigned in exercise of the powers conferred by sub-section (7) of section 50 of the Orissa Value Added Tax Act, 2004 and the rules made thereunder. The said owner of the property has been prohibited from transferring or charging the said property in any way. Notice is hereby given to the general public that any transfer or delivery of the said property or of any interest therein and any payment to the said defaulter of the debt, dividend or other moneys contrary to such attachment shall be void against all claims enforceable under the attachment.

Tax Recovery Officer

Form 10

(See rule 64)

Sale certificate

Tax Recovery Officer

Form 11

(See rule 68)

Notice to show cause why a warrant of arrest should not be issued

.........................................

.........................................

Tax Recovery Officer

Form 13

(See sub-rule (3) of rule 68)

Warrant of arrest

_________________

_________________

Tax Recovery Officer

Form 13

Warrant of detention in Civil Prison

The Superintendent/ Officer-in-charge

________________________________________Jail.

Tax Recovery Officer

Form 14

(See sub-rule (5) of rule 74)

Order of release

The Superintendent/ Officer-in-charge

______________________________________Jail.

Tax Recovery Officer