CENTRAL SALES TAX ACT, 1956

(ACT NO. 74 OF 1956)

CHAPTER I
Preliminary
1 Short title, extent and Commen ement (1) This Act may be called the Central Sale! Tax A t, 1956. (2) It exte ds t! the "h!le !# I dia $%%%&. (') It shall c!me i t! #!(ce ! s)ch date as the Ce t(al *!+e( me t may, by !ti#icati! i the O##icial *a-ette, a..!i t, a d di##e(e t dates may be a..!i ted #!( di##e(e t .(!+isi! s !# this Act. " #e$inition! I this Act, ) less the c! text !the("ise (e/)i(es,0 (a) %a&&ro&riate State' mea s1 (i) i (elati! t! a deale( "h! has ! e !( m!(e .laces !# b)si ess sit)ated i the same 2tate, that 2tate3 (ii) i (elati! t! a deale( "h! has $%%%& .laces !# b)si ess sit)ated i di##e(e t 2tates, e+e(y s)ch 2tate "ith (es.ect t! the .lace !( .laces !# b)si ess sit)ated "ithi its te((it!(y3 $***& (aa) %()!ine!!' i cl)des1 (i) a y t(ade, c!mme(ce !( ma )#act)(e, !( a y ad+e t)(e !( c! ce( i the at)(e !# t(ade, c!mme(ce !( ma )#act)(e, "hethe( !( !t s)ch t(ade, c!mme(ce, ma )#act)(e, ad+e t)(e !( c! ce( is ca((ied ! "ith a m!ti+e t! ma4e 5ai !( .(!#it a d "hethe( !( !t a y 5ai !( .(!#it acc()es #(!m s)ch t(ade, c!mme(ce, ma )#act)(e, ad+e t)(e !( c! ce( 3 a d (ii) a y t(a sacti! i c! ecti! "ith, !( i cide tal !( a cilla(y t!, s)ch t(ade, c!mme(ce, ma )#act)(e, ad+e t)(e !( c! ce( 3 (ab) % ro!!in* the )!tom! $rontier! o$ India' mea s c(!ssi 5 the limits !# the a(ea !# a c)st!ms stati! i "hich im.!(ted 5!!ds !( ex.!(t 5!!ds a(e !(di a(ily 4e.t be#!(e clea(a ce by c)st!ms a)th!(ities. Explanation1 F!( the .)(.!ses !# this cla)se, 6c)st!ms stati! 7 a d 6c)st!ms a)th!(ities7 shall ha+e the same mea i 5s as i the C)st!ms Act, 1962 (52

!# 1962)3 (b) %dealer' mea s a y .e(s! "h! ca((ies ! ("hethe( (e5)la(ly !( !the("ise) the b)si ess !# b)yi 5, selli 5, s)..lyi 5 !( dist(ib)ti 5 5!!ds, di(ectly !( i di(ectly, #!( cash, !( #!( de#e((ed .ayme t, !( #!( c!mmissi! , (em) e(ati! !( !the( +al)able c! side(ati! , a d i cl)des1 (i) a l!cal a)th!(ity, a b!dy c!(.!(ate, a c!m.a y, a y c!!.e(ati+e s!ciety !( !the( s!ciety, cl)b, #i(m, 8i d) ) di+ided #amily !( !the( ass!ciati! !# .e(s! s "hich ca((ies ! s)ch b)si ess3 (ii) a #act!(, b(!4e(, c!mmissi! a5e t, del credere a5e t, !( a y !the( me(ca tile a5e t, by "hate+e( ame called, a d "hethe( !# the same desc(i.ti! as he(ei be#!(e me ti! ed !( !t, "h! ca((ies ! the b)si ess !# b)yi 5, selli 5, s)..lyi 5 !( dist(ib)ti 5, 5!!ds bel! 5i 5 t! a y .(i ci.al "hethe( discl!sed !( !t3 a d (iii) a a)cti! ee( "h! ca((ies ! the b)si ess !# selli 5 !( a)cti! i 5 5!!ds bel! 5i 5 t! a y .(i ci.al, "hethe( discl!sed !( !t a d "hethe( the !##e( !# the i te di 5 .)(chase( is acce.ted by him !( by the .(i ci.al !( a !mi ee !# the .(i ci.al. Explanation 1 1 9+e(y .e(s! "h! acts as a a5e t, i a y 2tate, !# a deale( (esidi 5 !)tside that 2tate a d b)ys, sells, s)..lies, !( dist(ib)tes, 5!!ds i the 2tate !( acts ! behal# !# s)ch deale( as1 (i) a me(ca tile a5e t as de#i ed i the 2ale !# *!!ds Act, 19': (' !# 19':), !( (ii) a a5e t #!( ha dli 5 !# 5!!ds !( d!c)me ts !# the title (elati 5 t! 5!!ds, !( (iii) a a5e t #!( the c!llecti! !( the .ayme t !# the sale .(ice !# 5!!ds !( as a 5)a(a t!( #!( s)ch c!llecti! !( .ayme t, a d e+e(y l!cal b(a ch !( !##ice i a 2tate !# a #i(m (e5iste(ed !)tside that 2tate !( a c!m.a y !( !the( b!dy c!(.!(ate, the .(i ci.al !##ice !( head/)a(te(s "he(e!# is !)tside that 2tate, shall be deemed t! be a deale( #!( the .)(.!ses !# this Act. Explanation 2 1 A *!+e( me t "hich, "hethe( !( !t i the c!)(se !# b)si ess, b)ys, sells, s)..lies !( dist(ib)tes, 5!!ds, di(ectly !( !the("ise, #!( cash !( #!( de#e((ed .ayme t !( #!( c!mmissi! , (em) e(ati! !( !the( +al)able c! side(ati! , shall exce.t i (elati! t! a y sale, s)..ly !( dist(ib)ti! !# s)(.l)s, ) se(+iceable !( !ld st!(es !( mate(ials !( "aste .(!d)cts !( !bs!lete !( disca(ded machi e(y !( .a(ts !( access!(ies the(e!#, be deemed t! be a deale( #!( the .)(.!ses !# this Act3 (c) %de lared *ood!' mea s 5!!ds decla(ed ) de( secti! 14 t! be !# s.ecial im.!(ta ce i i te(12tate t(ade !( c!mme(ce. (d) %*ood!' i cl)des all mate(ials, a(ticles, c!mm!dities a d all !the( 4i ds !# m!+able .(!.e(ty, b)t d!es !t i cl)de e"s.a.e(s, acti! able claims, st!c4s, sha(es a d sec)(ities3 (dd) %&la e o$ ()!ine!!' i cl)des 1 (i) i a y case "he(e a deale( ca((ies ! b)si ess th(!)5h a a5e t (by "hate+e( ame called), the .lace !# b)si ess !# s)ch a5e t3 (ii) a "a(eh!)se, 5!d!" !( !the( .lace "he(e a deale( st!(es his 5!!ds3 a d

(iii) a .lace "he(e a deale( 4ee.s his b!!4s !# acc!) t3 (e) %&re! ri(ed' mea s .(esc(ibed by ()les made ) de( this Act3 (#) %re*i!tered dealer' mea s a deale( "h! is (e5iste(ed ) de( secti! 73 (5) %!ale', "ith its 5(ammatical +a(iati! s a d c!5 ate ex.(essi! s, mea s a y t(a s#e( !# .(!.e(ty i 5!!ds by ! e .e(s! t! a !the( #!( cash !( de#e((ed .ayme t !( #!( a y !the( +al)able c! side(ati! , a d i cl)des,; (i) a t(a s#e(, !the("ise tha i .)(s)a ce !# a c! t(act, !# .(!.e(ty i a y 5!!ds #!( cash, de#e((ed .ayme t !( !the( +al)able c! side(ati! 3 (ii) a t(a s#e( !# .(!.e(ty i 5!!ds ("hethe( as 5!!ds !( i s!me !the( #!(m) i +!l+ed i the exec)ti! !# a "!(4s c! t(act3 (iii) a deli+e(y !# 5!!ds ! hi(e1.)(chase !( a y system !# .ayme t by i stalme ts3 (i+) a t(a s#e( !# the (i5ht t! )se a y 5!!ds #!( a y .)(.!se ("hethe( !( !t #!( a s.eci#ied .e(i!d) #!( cash, de#e((ed .ayme t !( !the( +al)able c! side(ati! 3 (+) a s)..ly !# 5!!ds by a y ) i c!(.!(ated ass!ciati! !( b!dy !# .e(s! s t! a membe( the(e!# #!( cash, de#e((ed .ayme t !( !the( +al)able c! side(ati! 3 (+i) a s)..ly, by "ay !# !( as .a(t !# a y se(+ice !( i a y !the( ma e( "hats!e+e(, !# 5!!ds, bei 5 #!!d !( a y !the( a(ticle #!( h)ma c! s)m.ti! !( a y d(i 4 ("hethe( !( !t i t!xicati 5), "he(e s)ch s)..ly !( se(+ice, is #!( cash, de#e((ed .ayme t !( !the( +al)able c! side(ati! , b)t d!es !t i cl)de a m!(t5a5e !( hy.!thecati! !# !( a cha(5e !( .led5e ! 5!!ds3 (h) %!ale &ri e' mea s the am!) t .ayable t! a deale( as c! side(ati! #!( the sale !# a y 5!!ds, less a y s)m all!"ed as cash disc!) t acc!(di 5 t! the .(actice !(mally .(e+aili 5 i the t(ade, b)t i cl)si+e !# a y s)m cha(5ed #!( a ythi 5 d! e by the deale( i (es.ect !# the 5!!ds at the time !# !( be#!(e the deli+e(y the(e!# !the( tha the c!st !# #(ei5ht !( deli+e(y !( the c!st !# i stallati! i cases "he(e s)ch c!st is se.a(ately cha(5ed3 <=O>I?9? that i the case !# a t(a s#e( !# .(!.e(ty i 5!!ds ("hethe( as 5!!ds !( i s!me !the( #!(m) i +!l+ed i the exec)ti! !# a "!(4s c! t(act, the sale .(ice !# s)ch 5!!ds shall be dete(mi ed i the .(esc(ibed ma e( by ma4i 5 s)ch ded)cti! #(!m the t!tal c! side(ati! #!( the "!(4s c! t(act as may be .(esc(ibed a d s)ch .(ice shall be deemed t! be the sale .(ice #!( the .)(.!ses !# this cla)se.3 (i) %!ale! tax la+' mea s a y la" #!( the time bei 5 i #!(ce i a y 2tate !( .a(t the(e!# "hich .(!+ides #!( the le+y !# taxes ! the sale !( .)(chase !# 5!!ds 5e e(ally !( ! a y s.eci#ied 5!!ds ex.(essly me ti! ed i that behal# a d i cl)des +al)e added tax la", a d 65e e(al sales tax la"7 mea s a y la" #!( the time bei 5 i #!(ce i a y 2tate !( .a(t the(e!# "hich .(!+ides #!( the le+y !# tax ! the sale !( .)(chase !# 5!!ds 5e e(ally a d i cl)des +al)e added tax la"3 (@) %t)rno,er' )sed i (elati! t! a y deale( liable t! tax ) de( this Act mea s the a55(e5ate !# the sale .(ices (ecei+ed a d (ecei+able by him i (es.ect !# sales !# a y 5!!ds i the c!)(se !# i te(12tate t(ade !( c!mme(ce made d)(i 5 a y .(esc(ibed .e(i!d a d dete(mi ed i acc!(da ce "ith the .(!+isi! s !# this Act a d the ()les

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made the(e) de(3 (@a) %+or-! ontra t' mea s a c! t(act #!( ca((yi 5 !)t a y "!(4 "hich i cl)des assembli 5, c! st()cti! , b)ildi 5, alte(i 5, ma )#act)(i 5, .(!cessi 5, #ab(icati 5, e(ecti! , i stallati! , #itti 5 !)t, im.(!+eme t, (e.ai( !( c!mmissi! i 5 !# a y m!+able !( imm!+able .(!.e(ty3 (4) %year', i (elati! t! a deale(, mea s the yea( a..licable i (elati! t! him ) de( the 5e e(al sales tax la" !# the a..(!.(iate 2tate, a d "he(e the(e is ! s)ch yea( a..licable, the #i a cial yea(.

CHAPTER II
.orm)lation o$ Prin i&le! $or determinin* +hen a Sale or P)r ha!e o$ *ood! ta-e! &la e in the o)r!e o$ inter/State trade or ommer e or o)t!ide a State or in the o)r!e o$ Im&ort or Ex&ort
0 1hen i! a !ale or &)r ha!e o$ *ood! !aid to ta-e &la e in the o)r!e o$ inter/State trade or ommer e A sale !( .)(chase !# 5!!ds shall be deemed t! ta4e .lace i the c!)(se !# i te(12tate t(ade !( c!mme(ce i# the sale !( .)(chase1 (a) !ccasi! s the m!+eme t !# 5!!ds #(!m ! e 2tate t! a !the(3 !( (b) is e##ected by a t(a s#e( !# d!c)me ts !# title t! the 5!!ds d)(i 5 thei( m!+eme t #(!m ! e 2tate t! a !the(. Explanation 1 1 Ahe(e 5!!ds a(e deli+e(ed t! a ca((ie( !( !the( bailee #!( t(a smissi! , the m!+eme t !# the 5!!ds shall, #!( the .)(.!ses !# cla)se (b), be deemed t! c!mme ce at the time !# s)ch deli+e(y a d te(mi ate at the time "he deli+e(y is ta4e #(!m s)ch ca((ie( !( bailee. Explanation 2 1 Ahe(e the m!+eme t !# 5!!ds c!mme ces a d te(mi ates i the same 2tate it shall !t be deemed t! be a m!+eme t !# 5!!ds #(!m ! e 2tate t! a !the( by (eas! me(ely !# the #act that i the c!)(se !# s)ch m!+eme t the 5!!ds .ass th(!)5h the te((it!(y !# a y !the( 2tate. 2 1hen i! a !ale or &)r ha!e o$ *ood! !aid to ta-e &la e o)t!ide a State (1) 2)b@ect t! the .(!+isi! s c! tai ed i secti! ', "he a sale !( .)(chase !# 5!!ds is dete(mi ed i acc!(da ce "ith s)b1secti! (2) t! ta4e .lace i side a 2tate, s)ch sale !( .)(chase shall be deemed t! ha+e ta4e .lace !)tside all !the( 2tates. (2) A sale !( .)(chase !# 5!!ds shall be deemed t! ta4e .lace i side a 2tate, i# the 5!!ds a(e "ithi the 2tate0 (a) i the case !# s.eci#ic !( asce(tai ed 5!!ds, at the time the c! t(act !# sale is made3 a d (b) i the case !# ) asce(tai ed !( #)t)(e 5!!ds, at the time !# thei(

a..(!.(iati! t! the c! t(act !# sale by the selle( !( by the b)ye(, "hethe( asse t !# the !the( .a(ty is .(i!( !( s)bse/)e t t! s)ch a..(!.(iati! . Explanation 1 Ahe(e the(e is a si 5le c! t(act !# sale !( .)(chase !# 5!!ds sit)ated at m!(e .laces tha ! e, the .(!+isi! s !# this s)b1secti! shall a..ly as i# the(e "e(e se.a(ate c! t(acts i (es.ect !# the 5!!ds at each !# s)ch .laces. 5 1hen i! a !ale or &)r ha!e o$ *ood! !aid to ta-e &la e in the o)r!e o$ im&ort or ex&ort (1) A sale !( .)(chase !# 5!!ds shall be deemed t! ta4e .lace i the c!)(se !# the ex.!(t !# the 5!!ds !)t !# the te((it!(y !# I dia ! ly i# the sale !( .)(chase eithe( !ccasi! s s)ch ex.!(t !( is e##ected by a t(a s#e( !# d!c)me ts !# title t! the 5!!ds a#te( the 5!!ds ha+e c(!ssed the c)st!ms #(! tie(s !# I dia. (2) A sale !( .)(chase !# 5!!ds shall be deemed t! ta4e .lace i the c!)(se !# the im.!(t !# the 5!!ds i t! the te((it!(y !# I dia ! ly i# the sale !( .)(chase eithe( !ccasi! s s)ch im.!(t !( is e##ected by a t(a s#e( !# d!c)me ts !# title t! the 5!!ds be#!(e the 5!!ds ha+e c(!ssed the c)st!ms #(! tie(s !# I dia. (') N!t"ithsta di 5 a ythi 5 c! tai ed i s)b1secti! (1), the last sale !( .)(chase !# a y 5!!ds .(ecedi 5 the sale !( .)(chase !ccasi! i 5 the ex.!(t !# th!se 5!!ds !)t !# the te((it!(y !# I dia shall als! be deemed t! be i the c!)(se !# s)ch ex.!(t, i# s)ch last sale !( .)(chase t!!4 .lace a#te(, a d "as #!( the .)(.!se !# c!m.lyi 5 "ith, the a5(eeme t !( !(de( #!( !( i (elati! t! s)ch ex.!(t. (4) The .(!+isi! s !# s)b1secti! (') shall !t a..ly t! a y sale !( .)(chase !# 5!!ds ) less the deale( selli 5 the 5!!ds #)( ishes t! the .(esc(ibed a)th!(ity i the .(esc(ibed ma e( a decla(ati! d)ly #illed a d si5 ed by the ex.!(te( t! "h!m the 5!!ds a(e s!ld i a .(esc(ibed #!(m !btai ed #(!m the .(esc(ibed a)th!(ity. (5) N!t"ithsta di 5 a ythi 5 c! tai ed i s)b1secti! (1), i# a y desi5 ated I dia ca((ie( .)(chases A+iati! T)(bi e F)el #!( the .)(.!ses !# its i te( ati! al #li5ht, s)ch .)(chase shall be deemed t! ta4e .lace i the c!)(se !# the ex.!(t !# 5!!ds !)t !# the te((it!(y !# I dia. Explanation. ; F!( the .)(.!ses !# this s)b1secti! , 6desi5 ated I dia ca((ie(7 mea s a y ca((ie( "hich the Ce t(al *!+e( me t may, by !ti#icati! i the O##icial *a-ette, s.eci#y i this behal#.

CHAPTER III
Inter/State Sale! Tax
6 Lia(ility to tax on inter/State !ale! (1) 2)b@ect t! the !the( .(!+isi! s c! tai ed i this Act, e+e(y deale( shall, "ith e##ect #(!m s)ch date as the Ce t(al *!+e( me t may, by !ti#icati! i the O##icial *a-ette, a..!i t, !t bei 5 ea(lie( tha thi(ty days #(!m the date !# s)ch !ti#icati! , be liable t! .ay tax ) de( this Act ! all sales !# 5!!ds !the( tha elect(ical e e(5y e##ected by him i the c!)(se !# i te(12tate t(ade !( c!mme(ce d)(i 5 a y yea( ! a d #(!m the date s! !ti#iedB <=O>I?9? that a deale( shall !t be liable t! .ay tax ) de( this Act ! a y

sale !# 5!!ds "hich, i acc!(da ce "ith the .(!+isi! s !# s)b1secti! (') !# secti! 5, is a sale i the c!)(se !# ex.!(t !# th!se 5!!ds !)t !# the te((it!(y !# I dia. (1A) A deale( shall be liable t! .ay tax ) de( this Act ! a sale !# a y 5!!ds e##ected by him i the c!)(se !# i te(12tate t(ade !( c!mme(ce !t"ithsta di 5 that ! tax "!)ld ha+e bee le+iable ("hethe( ! the selle( !( the .)(chase() ) de( the sales tax la" !# the a..(!.(iate 2tate i# that sale had ta4e .lace i side that 2tate. (2) N!t"ithsta di 5 a ythi 5 c! tai ed i s)b1secti! (1) !( s)b1secti! (1A), "he(e a sale !# a y 5!!ds i the c!)(se !# i te(12tate t(ade !( c!mme(ce has eithe( !ccasi! ed the m!+eme t !# s)ch 5!!ds #(!m ! e 2tate t! a !the( !( has bee e##ected by a t(a s#e( !# d!c)me ts !# title t! s)ch 5!!ds d)(i 5 thei( m!+eme t #(!m ! e 2tate t! a !the(, a y s)bse/)e t sale d)(i 5 s)ch m!+eme t e##ected by a t(a s#e( !# d!c)me ts !# title t! s)ch 5!!ds,1 (a) t! the *!+e( me t, !( (b) t! a (e5iste(ed deale( !the( tha the *!+e( me t, i# the 5!!ds a(e !# the desc(i.ti! (e#e((ed t! i s)b1secti! (') !# secti! C, shall be exem.t #(!m tax ) de( this Act B <=O>I?9? that ! s)ch s)bse/)e t sale shall be exem.t #(!m tax ) de( this s)b1secti! ) less the deale( e##ecti 5 the sale #)( ishes t! the .(esc(ibed a)th!(ity i the .(esc(ibed ma e( a d "ithi the .(esc(ibed time !( "ithi s)ch #)(the( time as that a)th!(ity may, #!( s)##icie t ca)se, .e(mit, 1 (a) a ce(ti#icate d)ly #illed a d si5 ed by the (e5iste(ed deale( #(!m "h!m the 5!!ds "e(e .)(chased c! tai i 5 the .(esc(ibed .a(tic)la(s i a .(esc(ibed #!(m !btai ed #(!m the .(esc(ibed a)th!(ity3 a d (b) i# the s)bse/)e t sale is made0 (i) t! a (e5iste(ed deale(, a decla(ati! (e#e((ed t! i cla)se (a) !# s)b1secti! (4) !# secti! C, !( (ii) t! the *!+e( me t, !t bei 5 a (e5iste(ed deale(, a ce(ti#icate (e#e((ed t! i cla)se (b) !# s)b1secti! (4) !# 2ecti! CB <=O>I?9? FD=T89= that it shall !t be ecessa(y t! #)( ish the decla(ati! !( the ce(ti#icate (e#e((ed t! i cla)se (b) !# the .(ecedi 5 .(!+is! i (es.ect !# a s)bse/)e t sale !# 5!!ds i#, 1 (a) the sale !( .)(chase !# s)ch 5!!ds is, ) de( the sales tax la" !# the a..(!.(iate 2tate, exem.t #(!m tax 5e e(ally !( is s)b@ect t! tax 5e e(ally at a (ate "hich is l!"e( tha #!)( .e( ce t ("hethe( called a tax !( #ee !( by a y !the( ame)3 a d (b) the deale( e##ecti 5 s)ch s)bse/)e t sale .(!+es t! the satis#acti! !# the a)th!(ity (e#e((ed t! i the .(ecedi 5 .(!+is! that s)ch sale is !# the at)(e (e#e((ed t! i cla)se (a) !( cla)se (b) !# this s)b1secti! . (') N!t"ithsta di 5 a ythi 5 c! tai ed i this Act, ! tax ) de( this Act shall be .ayable by a y deale( i (es.ect !# sale !# a y 5!!ds made by s)ch deale(, i the c!)(se !# i te(12tate t(ade !( c!mme(ce, t! a y !##icial, .e(s! el, c! s)la( !( di.l!matic a5e t !# ;

a y #!(ei5 di.l!matic missi! !( c! s)late i I dia3 !( the D ited Nati! s !( a y !the( simila( i te( ati! al b!dy, e titled t! .(i+ile5es ) de( a y c! +e ti! !( a5(eeme t t! "hich I dia is a .a(ty !( ) de( a y la" #!( the time bei 5 i #!(ce, i# s)ch !##icial, .e(s! el, c! s)la( !( di.l!matic a5e t, as the case may be, has .)(chased s)ch 5!!ds #!( himsel# !( #!( the .)(.!ses !# s)ch missi! , c! s)late, D ited Nati! s !( !the( b!dy. (4) The .(!+isi! s !# s)b1secti! (') shall !t a..ly t! the sale !# 5!!ds made i the c!)(se !# i te(12tate t(ade !( c!mme(ce ) less the deale( selli 5 s)ch 5!!ds #)( ishes t! the .(esc(ibed a)th!(ity a ce(ti#icate i the .(esc(ibed ma e( ! the .(esc(ibed #!(m d)ly #illed a d si5 ed by the !##icial, .e(s! el, c! s)la( !( di.l!matic a5e t, as the case may be. 6A 3)rden o$ &roo$, et 4, in a!e o$ tran!$er o$ *ood! laimed other+i!e than (y +ay o$ !ale (1) Ahe(e a y deale( claims that he is !t liable t! .ay tax ) de( this Act, i (es.ect !# a y 5!!ds, ! the 5(!) d that the m!+eme t !# s)ch 5!!ds #(!m ! e 2tate t! a !the( "as !ccasi! ed by (eas! !# t(a s#e( !# s)ch 5!!ds by him t! a y !the( .lace !# his b)si ess !( t! his a5e t !( .(i ci.al, as the case may be, a d !t by (eas! !# sale, the b)(de !# .(!+i 5 that the m!+eme t !# th!se 5!!ds "as s! !ccasi! ed shall be ! that deale( a d #!( this .)(.!se he may #)( ish t! the assessi 5 a)th!(ity, "ithi the .(esc(ibed time !( "ithi s)ch #)(the( time as that a)th!(ity may, #!( s)##icie t ca)se, .e(mit, a decla(ati! , d)ly #illed a d si5 ed by the .(i ci.al !##ice( !# the !the( .lace !# b)si ess, !( his a5e t !( .(i ci.al, as the case may be, c! tai i 5 the .(esc(ibed .a(tic)la(s i the .(esc(ibed #!(m !btai ed #(!m the .(esc(ibed a)th!(ity, al! 5 "ith the e+ide ce !# des.atch !# s)ch 5!!ds a d i# the deale( #ails t! #)( ish s)ch decla(ati! , the , the m!+eme t !# s)ch 5!!ds shall be deemed #!( all .)(.!ses !# this Act t! ha+e bee !ccasi! ed as a (es)lt !# sale.. (2) I# the assessi 5 a)th!(ity is satis#ied a#te( ma4i 5 s)ch i /)i(y as he may deem ecessa(y that the .a(tic)la(s c! tai ed i the decla(ati! #)( ished by a deale( ) de( s)b1secti! (1) a(e t()e, he may, at the time !#, !( at a y time be#!(e, the assessme t !# the tax .ayable by the deale( ) de( this Act, ma4e a !(de( t! that e##ect a d the(e).! the m!+eme t !# 5!!ds t! "hich the decla(ati! (elates shall be deemed #!( the .)(.!ses !# this Act t! ha+e bee !ccasi! ed !the("ise tha as a (es)lt !# sale. Explanation - I this secti! , 6assessi 5 a)th!(ity7, i (elati! t! a deale(, mea s the a)th!(ity #!( the time bei 5 c!m.ete t t! assess the tax .ayable by the deale( ) de( this Act. 5 Re*i!tration o$ dealer! (1) 9+e(y deale( liable t! .ay tax ) de( this Act shall, "ithi s)ch time as may be .(esc(ibed #!( the .)(.!se, ma4e a a..licati! #!( (e5ist(ati! ) de( this Act t! s)ch a)th!(ity i the a..(!.(iate 2tate as the Ce t(al *!+e( me t may, by 5e e(al !(

(i) (ii)

s.ecial !(de(, s.eci#y, a d e+e(y s)ch a..licati! shall c! tai s)ch .a(tic)la(s as may be .(esc(ibed. (2) A y deale( liable t! .ay tax ) de( the sales tax la" !# the a..(!.(iate 2tate, !( "he(e the(e is ! s)ch la" i #!(ce i the a..(!.(iate 2tate !( a y .a(t the(e!#, a y deale( ha+i 5 a .lace !# b)si ess i that 2tate !( .a(t, as the case may be, may, !t"ithsta di 5 that he is !t liable t! .ay tax ) de( this Act, a..ly #!( (e5ist(ati! ) de( this Act t! the a)th!(ity (e#e((ed t! i s)b1secti! (1), a d e+e(y s)ch a..licati! shall c! tai s)ch .a(tic)la(s as may be .(esc(ibed. Explanation- F!( the .)(.!ses !# this s)b1secti! , a deale( shall be deemed t! be liable t! .ay tax ) de( the sales tax la" !# the a..(!.(iate 2tate !t"ithsta di 5 that ) de( s)ch la" a sale !( .)(chase made by him is exem.t #(!m tax !( a (e#) d !( (ebate !# tax is admissible i (es.ect the(e!#. (2A) Ahe(e it a..ea(s ecessa(y t! the a)th!(ity t! "h!m a a..licati! is made ) de( s)b1secti! (1) !( s)b1secti! (2) s! t! d! #!( the .(!.e( (ealisati! !# the tax .ayable ) de( this Act !( #!( the .(!.e( c)st!dy a d )se !# the #!(ms (e#e((ed t! i cla)se (a) !# the #i(st .(!+is! t! s)b1secti! (2) !# secti! 6 !( s)b1secti! (1) !# secti! 6A !( cla)se (a) !# s)b1secti! (4) !# secti! C, he may, by a !(de( i "(iti 5 a d #!( (eas! s t! be (ec!(ded the(ei , im.!se as a c! diti! #!( the iss)e !# a ce(ti#icate !# (e5ist(ati! a (e/)i(eme t that the deale( shall #)( ish i the .(esc(ibed ma e( a d "ithi s)ch time as may be s.eci#ied i the !(de( s)ch sec)(ity as may be s! s.eci#ied, #!( all !( a y !# the a#!(esaid .)(.!ses. (') I# the a)th!(ity t! "h!m a a..licati! ) de( s)b1secti! (1) !( s)b1secti! (2) is made is satis#ied that the a..licati! is i c! #!(mity "ith the .(!+isi! s !# this Act a d the ()les made the(e) de( a d the c! diti! , i# a y, im.!sed ) de( s)b1 secti! (2A), has bee c!m.lied "ith, he shall (e5iste( the a..lica t a d 5(a t t! him a ce(ti#icate !# (e5ist(ati! i the .(esc(ibed #!(m "hich shall s.eci#y the class !( classes !# 5!!ds #!( the .)(.!ses !# s)b1secti! (1) !# secti! C. ('A) Ahe(e it a..ea(s ecessa(y t! the a)th!(ity 5(a ti 5 a ce(ti#icate !# (e5ist(ati! ) de( this secti! s! t! d! #!( the .(!.e( (ealisati! !# tax .ayable ) de( this Act !( #!( the .(!.e( c)st!dy a d )se !# the #!(ms (e#e((ed t! i s)b1secti! (2A), he may, at a y time "hile s)ch ce(ti#icate is i #!(ce, by a !(de( i "(iti 5 a d #!( (eas! s t! be (ec!(ded the(ei , (e/)i(e the deale(, t! "h!m the ce(ti#icate has bee 5(a ted, t! #)( ish "ithi s)ch time as may be s.eci#ied i the !(de( a d i the .(esc(ibed ma e( s)ch sec)(ity, !(, i# the deale( has al(eady #)( ished a y sec)(ity i .)(s)a ce !# a !(de( ) de( this s)b1secti! !( s)b1secti! (2A), s)ch additi! al sec)(ity, as may be s.eci#ied i the !(de(, #!( all !( a y !# the a#!(esaid .)(.!ses. ('E) N! deale( shall be (e/)i(ed t! #)( ish a y sec)(ity ) de( s)b1secti! (2A) !( a y sec)(ity !( additi! al sec)(ity ) de( s)b1secti! ('A) ) less he has bee 5i+e a !..!(t) ity !# bei 5 hea(d. ('EE) The am!) t !# sec)(ity "hich a deale( may be (e/)i(ed t! #)( ish ) de( s)b1secti! (2A) !( s)b1secti! ('A) !( the a55(e5ate !# the am!) t !# s)ch sec)(ity a d the am!) t !# additi! al sec)(ity "hich he may be (e/)i(ed t! #)( ish ) de( s)b1 secti! ('A), by the a)th!(ity (e#e((ed t! the(ei , shall !t exceed1 (a) i the case !# a deale( !the( tha a deale( "h! has made a a..licati! , !( "h! has bee (e5iste(ed i .)(s)a ce !# a a..licati! , ) de( s)b1secti! (2), a s)m

e/)al t! the tax .ayable ) de( this Act, i acc!(da ce "ith the estimate !# s)ch a)th!(ity, ! the t)( !+e( !# s)ch deale( #!( the yea( i "hich s)ch sec)(ity !(, as the case may be, additi! al sec)(ity is (e/)i(ed t! be #)( ished3 a d (b) i the case !# a deale( "h! has made a a..licati! , !( "h! has bee (e5iste(ed i .)(s)a ce !# a a..licati! , ) de( s)b1secti! (2), a s)m e/)al t! the tax le+iable ) de( this Act, i acc!(da ce "ith the estimate !# s)ch a)th!(ity ! the sales t! s)ch deale( i the c!)(se !# i te(12tate t(ade !( c!mme(ce i the yea( i "hich s)ch sec)(ity !(, as the case may be, additi! al sec)(ity is (e/)i(ed t! be #)( ished, had s)ch deale( bee !t (e5iste(ed ) de( this Act. ('C) Ahe(e the sec)(ity #)( ished by a deale( ) de( s)b1secti! (2A) !( s)b1 secti! ('A) is i the #!(m !# a s)(ety b! d a d the s)(ety bec!mes i s!l+e t !( dies, the deale( shall, "ithi thi(ty days !# the !cc)((e ce !# a y !# the a#!(esaid e+e ts, i #!(m the a)th!(ity 5(a ti 5 the ce(ti#icate !# (e5ist(ati! a d shall "ithi i ety days !# s)ch !cc)((e ce #)( ish a #(esh s)(ety b! d !( #)( ish i the .(esc(ibed ma e( !the( sec)(ity #!( the am!) t !# the b! d. ('?) The a)th!(ity 5(a ti 5 the ce(ti#icate !# (e5ist(ati! may by !(de( a d #!( 5!!d a d s)##icie t ca)se #!(#eit the "h!le !( a y .a(t !# the sec)(ity #)( ished by a deale(, 1 (a) #!( (ealisi 5 a y am!) t !# tax !( .e alty .ayable by the deale(3 (b) i# the deale( is #!) d t! ha+e mis)sed a y !# the #!(ms (e#e((ed t! i s)b1 secti! (2A) !( t! ha+e #ailed t! 4ee. them i .(!.e( c)st!dy B <=O>I?9? that ! !(de( shall be .assed ) de( this s)b1secti! "ith!)t 5i+i 5 the deale( a !..!(t) ity !# bei 5 hea(d. ('9) Ahe(e by (eas! !# a !(de( ) de( s)b1secti! ('?), the sec)(ity #)( ished by a y deale( is (e de(ed i s)##icie t, he shall ma4e ). the de#icie cy i s)ch ma e( a d "ithi s)ch time as may be .(esc(ibed. ('F) The a)th!(ity iss)i 5 the #!(ms (e#e((ed t! i s)b1secti! (2A) may (e#)se t! iss)e s)ch #!(ms t! a deale( "h! has #ailed t! c!m.ly "ith a !(de( ) de( that s)b1 secti! !( s)b1secti! ('A), !( "ith the .(!+isi! s !# s)b1secti! ('C) !( s)b1secti! ('9), ) til the deale( has c!m.lied "ith s)ch !(de( !( s)ch .(!+isi! s, as the case may be. ('*) The a)th!(ity 5(a ti 5 a ce(ti#icate !# (e5ist(ati! may, ! a..licati! by the deale( t! "h!m it has bee 5(a ted, !(de( the (e#) d !# a y am!) t !( .a(t the(e!# de.!sited by the deale( by "ay !# sec)(ity ) de( this secti! , i# it is !t (e/)i(ed #!( the .)(.!ses !# this Act. ('8) A y .e(s! a55(ie+ed by a !(de( .assed ) de( s)b1secti! (2A), s)b1 secti! ('A), s)b1secti! ('?) !( s)b1secti! ('*) may, "ithi thi(ty days !# the se(+ice !# the !(de( ! him, b)t a#te( #)( ishi 5 the sec)(ity, .(e#e(, i s)ch #!(m a d ma e( as may be .(esc(ibed, a a..eal a5ai st s)ch !(de( t! s)ch a)th!(ity (he(ea#te( i this secti! (e#e((ed t! as the 6a..ellate a)th!(ity7) as may be .(esc(ibedB <=O>I?9? that the a..ellate a)th!(ity may, #!( s)##icie t ca)se, .e(mit s)ch .e(s! t! .(ese t the a..eal, 1

(a) (b)

a#te( the ex.i(y !# the said .e(i!d !# thi(ty days3 !( "ith!)t #)( ishi 5 the "h!le !( a y .a(t !# s)ch sec)(ity.

('I) The .(!ced)(e t! be #!ll!"ed i hea(i 5 a y a..eal ) de( s)b1secti! ('8), a d the #ees .ayable i (es.ect !# s)ch a..eals shall be s)ch as may be .(esc(ibed. ('F) The !(de( .assed by the a..ellate a)th!(ity i a y a..eal ) de( s)b1 secti! ('8) shall be #i al. (4) A ce(ti#icate !# (e5ist(ati! 5(a ted ) de( this secti! may1 (a) eithe( ! the a..licati! !# the deale( t! "h!m it has bee 5(a ted !(, "he(e ! s)ch a..licati! has bee made, a#te( d)e !tice t! the deale(, be ame ded by the a)th!(ity 5(a ti 5 it i# he is satis#ied that by (eas! !# the (e5iste(ed deale( ha+i 5 cha 5ed the ame, .lace !( at)(e !# his b)si ess !( the class !( classes !# 5!!ds i "hich he ca((ies ! b)si ess !( #!( a y !the( (eas! the ce(ti#icate !# (e5ist(ati! 5(a ted t! him (e/)i(es t! be ame ded3 !( (b) be ca celled by the a)th!(ity 5(a ti 5 it "he(e he is satis#ied, a#te( d)e !tice t! the deale( t! "h!m it has bee 5(a ted, that he has ceased t! ca((y ! b)si ess !( has ceased t! exist !( has #ailed "ith!)t s)##icie t ca)se, t! c!m.ly "ith a !(de( ) de( s)b1secti! ('A) !( "ith the .(!+isi! s !# s)b1secti! ('C) !( s)b1secti! ('9) !( has #ailed t! .ay a y tax !( .e alty .ayable ) de( this Act, !( i the case !# a deale( (e5iste(ed ) de( s)b1secti! (2) has ceased t! be liable t! .ay tax ) de( the sales tax la" !# the a..(!.(iate 2tate !( #!( a y !the( s)##icie t (eas! . (5) A (e5iste(ed deale( may a..ly i the .(esc(ibed ma e( !t late( tha six m! ths be#!(e the e d !# a yea( t! the a)th!(ity "hich 5(a ted his ce(ti#icate !# (e5ist(ati! #!( the ca cellati! !# s)ch (e5ist(ati! , a d the a)th!(ity shall, ) less the deale( is liable t! .ay tax ) de( this Act, ca cel the (e5ist(ati! acc!(di 5ly, a d "he(e he d!es s!, the ca cellati! shall ta4e e##ect #(!m the e d !# the yea(. 6 Rate! o$ tax on !ale! in the o)r!e o$ inter/State trade or ommer e (1) 9+e(y deale(, "h! i the c!)(se !# i te(12tate t(ade !( c!mme(ce1 (a) sells t! the *!+e( me t a y 5!!ds3 !( (b) sells t! a (e5iste(ed deale( !the( tha the *!+e( me t 5!!ds !# the desc(i.ti! (e#e((ed t! i s)b1secti! (')3 shall be liable t! .ay tax ) de( this Act, "ith e##ect #(!m s)ch date as may be !ti#ied by the Ce t(al *!+e( me t i the Official Gazette #!( this .)(.!se, "hich shall be t"! .e(ce t !# his t)( !+e( !( at the (ate a..licable t! the sale !( .)(chase !# s)ch 5!!ds i side the a..(!.(iate 2tate ) de( the sales tax la" !# that 2tate, !(, as the case may be, ) de( a y e actme t !# that 2tate im.!si 5 +al)e added tax, "hiche+e( is l!"e(B <=O>I?9? that the (ate !# tax .ayable ) de( this s)b1secti! by a deale( shall c! ti )e t! be #!)( .e( ce t !# his t)( !+e(, ) til the (ate !# t"! .e( ce t ta4es e##ect ) de( this s)b1secti! . (2) The tax .ayable by a y deale( ! his t)( !+e( i s! #a( as the t)( !+e( !( a y .a(t the(e!# (elates t! the sale !# 5!!ds i the c!)(se !# i te(12tate t(ade !( c!mme(ce

1:

!t #alli 5 "ithi s)b1secti! (1)0 (a) i the case !# decla(ed 5!!ds, shall be calc)lated at t"ice the (ate a..licable t! the sale !( .)(chase !# s)ch 5!!ds i side the a..(!.(iate 2tate $%%%&3 (b) i the case !# 5!!ds !the( tha decla(ed 5!!ds, shall be calc)lated at the (ate !# te .e( ce t !( at the (ate a..licable t! the sale !( .)(chase !# s)ch 5!!ds i side the a..(!.(iate 2tate, "hiche+e( is hi5he(3 a d3 (c) i the case !# 5!!ds, the sale !(, as the case may be, the .)(chase !# "hich is, ) de( the sales tax la" !# the a..(!.(iate 2tate, exem.t #(!m tax 5e e(ally shall be il, a d #!( the .)(.!se !# ma4i 5 a y s)ch calc)lati! ) de( cla)se (a) !( cla)se (b), a y s)ch deale( shall be deemed t! be a deale( liable t! .ay tax ) de( the sales tax la" !# the a..(!.(iate 2tate, !t"ithsta di 5 that he, i #act, may !t be s! liable ) de( that la". Explanation - F!( the .)(.!ses !# this s)b1secti! , a sale !( .)(chase !# a y 5!!ds shall !t be deemed t! be exem.t #(!m tax 5e e(ally ) de( the sales tax la" !# the a..(!.(iate 2tate i# ) de( that la" the sale !( .)(chase !# s)ch 5!!ds is exem.t ! ly i s.eci#ied ci(c)msta ces !( ) de( s.eci#ied c! diti! s !( the tax is le+ied ! the sale !( .)(chase !# s)ch 5!!ds at s.eci#ied sta5es !( !the("ise tha "ith (e#e(e ce t! the t)( !+e( !# the 5!!ds. $%%%& (') The 5!!ds (e#e((ed t! i cla)se (b) !# s)b1secti! (1) 1 $%%%& (b) $%%%& a(e 5!!ds !# the class !( classes s.eci#ied i the ce(ti#icate !# (e5ist(ati! !# the (e5iste(ed deale( .)(chasi 5 the 5!!ds as bei 5 i te ded #!( (e1 sale by him !( s)b@ect t! a y ()les made by the Ce t(al *!+e( me t i this behal#, #!( )se by him i the ma )#act)(e !( .(!cessi 5 !# 5!!ds #!( sale !( i the telec!mm) icati! s et"!(4 !( i mi i 5 !( i the 5e e(ati! !( dist(ib)ti! !# elect(icity !( a y !the( #!(m !# .!"e( 3 (c) a(e c! tai e(s !( !the( mate(ials s.eci#ied i the ce(ti#icate !# (e5ist(ati! !# the (e5iste(ed deale( .)(chasi 5 the 5!!ds, bei 5 c! tai e(s !( mate(ials i te ded #!( bei 5 )sed #!( the .ac4i 5 !# 5!!ds #!( sale 3 (d) a(e c! tai e(s !( !the( mate(ials )sed #!( the .ac4i 5 !# a y 5!!ds !( classes !# 5!!ds s.eci#ied i the ce(ti#icate !# (e5ist(ati! (e#e((ed t! i $%%%& cla)se (b) !( #!( the .ac4i 5 !# a y c! tai e(s !( !the( mate(ials s.eci#ied i the ce(ti#icate !# (e5ist(ati! (e#e((ed t! i cla)se (c). (4) The .(!+isi! s !# s)b1secti! (1) shall !t a..ly t! a y sale i the c!)(se !# i te(12tate t(ade !( c!mme(ce ) less the deale( selli 5 the 5!!ds #)( ishes t! the .(esc(ibed a)th!(ity i the .(esc(ibed ma e(1 (a) a decla(ati! d)ly #illed a d si5 ed by the (e5iste(ed deale( t! "h!m the 5!!ds a(e s!ld c! tai i 5 the .(esc(ibed .a(tic)la(s i a .(esc(ibed #!(m !btai ed #(!m the .(esc(ibed a)th!(ity3 !( (b) i# the 5!!ds a(e s!ld t! the *!+e( me t, !t bei 5 a (e5iste(ed deale(, a ce(ti#icate i the .(esc(ibed #!(m d)ly #illed a d si5 ed by a d)ly a)th!(ised !##ice( !# the *!+e( me tB

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<=O>I?9? that the decla(ati! (e#e((ed t! i cla)se (a) is #)( ished "ithi the .(esc(ibed time !( "ithi s)ch #)(the( time as that a)th!(ity may, #!( s)##icie t ca)se, .e(mit. (5) N!t"ithsta di 5 a ythi 5 c! tai ed i this secti! , the 2tate *!+e( me t may ! the #)l#illme t !# the (e/)i(eme ts laid d!" i s)b1secti! (4) by the deale( i# it is satis#ied that it is ecessa(y s! t! d! i the .)blic i te(est, by !ti#icati! i the O##icial *a-ette, a d s)b@ect t! s)ch c! diti! s as may be s.eci#ied the(ei , di(ect,1 (a) that ! tax ) de( this Act shall be .ayable by a y deale( ha+i 5 his .lace !# b)si ess i the 2tate i (es.ect !# the sales by him, i the c!)(se !# i te(12tate t(ade !( c!mme(ce, t! a (e5iste(ed deale( !( the *!+e( me t #(!m a y s)ch .lace !# b)si ess !# a y s)ch 5!!ds !( classes !# 5!!ds as may be s.eci#ied i the !ti#icati! , !( that the tax ! s)ch sales shall be calc)lated at s)ch l!"e( (ates tha th!se s.eci#ied i s)b1 secti! (1) !( s)b1secti! (2) as may be me ti! ed i the !ti#icati! 3 (b) that i (es.ect !# all sales !# 5!!ds !( sales !# s)ch classes !# 5!!ds as may be s.eci#ied i the !ti#icati! , "hich a(e made, i the c!)(se !# i te(12tate t(ade !( c!mme(ce, t! a (e5iste(ed deale( !( the *!+e( me t by a y deale( ha+i 5 his .lace !# b)si ess i the 2tate !( by a y class !# s)ch deale(s as may be s.eci#ied i the !ti#icati! t! a y .e(s! !( t! s)ch class !# .e(s! s as may be s.eci#ied i the !ti#icati! , ! tax ) de( this Act shall be .ayable !( the tax ! s)ch sales shall be calc)lated at s)ch l!"e( (ates tha th!se s.eci#ied i s)b1secti! (1) !( s)b1secti! (2) as may be me ti! ed i the !ti#icati! . (6) N!t"ithsta di 5 a ythi 5 c! tai ed i this secti! , ! tax ) de( this Act shall be .ayable by a y deale( i (es.ect !# sale !# a y 5!!ds made by s)ch deale(, i the c!)(se !# i te(12tate t(ade !( c!mme(ce t! a (e5iste(ed deale( #!( the .)(.!se !# setti 5 )., !.e(ati! , mai te a ce, ma )#act)(e, t(adi 5, .(!d)cti! , .(!cessi 5, assembli 5, (e.ai(i 5, (ec! diti! i 5, (e1e 5i ee(i 5, .ac4a5i 5 !( #!( )se as .ac4i 5 mate(ial !( .ac4i 5 access!(ies i a ) it l!cated i a y s.ecial ec! !mic -! e !( #!( de+el!.me t, !.e(ati! a d mai te a ce !# s.ecial ec! !mic -! e by the de+el!.e( !# the s.ecial ec! !mic -! e, i# s)ch (e5iste(ed deale( has bee a)th!(ised t! establish s)ch ) it !( t! de+el!., !.e(ate a d mai tai s)ch s.ecial ec! !mic -! e by the a)th!(ity s.eci#ied by the Ce t(al *!+e( me t i this behal#. (7) The 5!!ds (e#e((ed t! i s)b1secti! (6) shall be the 5!!ds !# s)ch class !( classes !# 5!!ds as s.eci#ied i the ce(ti#icate !# (e5ist(ati! !# the (e5iste(ed deale( (e#e((ed t! i that s)b1secti! . (C) The .(!+isi! s !# s)b1secti! s (6) a d (7) shall !t a..ly t! a y sale !# 5!!ds made i the c!)(se !# i te(12tate t(ade !( c!mme(ce ) less the deale( selli 5 s)ch 5!!ds #)( ishes t! the .(esc(ibed a)th!(ity (e#e((ed t! i s)b1secti! (4) a decla(ati! i the .(esc(ibed ma e( ! the .(esc(ibed #!(m !btai ed #(!m the a)th!(ity s.eci#ied by the Ce t(al *!+e( me t ) de( s)b1secti! (6) d)ly #illed i a d si5 ed by the (e5iste(ed deale( t! "h!m s)ch 5!!ds a(e s!ld. Explanation 1 F!( the .)(.!ses !# s)b1secti! (6), the ex.(essi! 6s.ecial ec! !mic -! e7 has the mea i 5 assi5 ed t! it i cla)se (iii) t! 9x.la ati! 2 t! the .(!+is! t! secti! ' !# the Ce t(al 9xcise Act, 1944 (1 !# 1944).

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6A #etermination o$ t)rno,er (1) I dete(mi i 5 the t)( !+e( !# a deale( #!( the .)(.!ses !# this Act, the #!ll!"i 5 ded)cti! s shall be made #(!m the a55(e5ate !# the sale .(ices, amelyB 1 (a) the am!) t a((i+ed at by a..lyi 5 the #!ll!"i 5 #!(m)la1 (ate !# tax x a55(e5ate !# sale .(ices 1:: .l)s (ate !# tax <=O>I?9? that ! ded)cti! ! the basis !# the ab!+e #!(m)la shall be made i# the am!) t by "ay !# tax c!llected by a (e5iste(ed deale(, i acc!(da ce "ith the .(!+isi! s !# this Act, has bee !the("ise ded)cted #(!m the a55(e5ate !# sale .(ices. Explanation - Ahe(e the t)( !+e( !# a deale( is taxable at di##e(e t (ates, the a#!(esaid #!(m)la shall be a..lied se.a(ately i (es.ect !# each .a(t !# the t)( !+e( liable t! a di##e(e t (ate !# tax3 (b) the sale .(ice !# all 5!!ds (et)( ed t! the deale( by the .)(chase(s !# s)ch 5!!ds,1 (i) "ithi a .e(i!d !# th(ee m! ths #(!m the date !# deli+e(y !# the 5!!ds, i the case !# 5!!ds (et)( ed be#!(e the 14th day !# Gay, 19663 (ii) "ithi a .e(i!d !# six m! ths #(!m the date !# deli+e(y !# the 5!!ds, i the case !# 5!!ds (et)( ed ! !( a#te( the 14th day !# Gay, 1966B <=O>I?9? that satis#act!(y e+ide ce !# s)ch (et)( !# 5!!ds a d !# (e#) d !( ad@)stme t i acc!) ts !# the sale .(ice the(e!# is .(!d)ced be#!(e the a)th!(ity c!m.ete t t! assess !(, as the case may be, (e1assess the tax .ayable by the deale( ) de( this Act3 a d (c) s)ch !the( ded)cti! s as the Ce t(al *!+e( me t may, ha+i 5 (e5a(d t! the .(e+ale t ma(4et c! diti! s #acility !# t(ade a d i te(ests !# c! s)me(s, .(esc(ibe. (2) 2a+e as !the("ise .(!+ided i s)b1secti! (1), i dete(mi i 5 the t)( !+e( !# a deale( #!( the .)(.!ses !# this Act, ! ded)cti! shall be made #(!m the a55(e5ate !# the sale .(ices. 9 Le,y and olle tion o$ tax and &enaltie! (1) The tax .ayable by a y deale( ) de( this Act ! sales !# 5!!ds e##ected by him i the c!)(se !# i te(12tate t(ade !( c!mme(ce, "hethe( s)ch sales #all "ithi cla)se (a) !( cla)se (b) !# secti! ', shall be le+ied by the *!+e( me t !# I dia a d the tax s! le+ied shall be c!llected by that *!+e( me t i acc!(da ce "ith the .(!+isi! s !# s)b1secti! (2), i the 2tate #(!m "hich the m!+eme t !# the 5!!ds c!mme cedB <=O>I?9? that, i the case !# a sale !# 5!!ds d)(i 5 thei( m!+eme t #(!m ! e 2tate t! a !the(, bei 5 a sale s)bse/)e t t! the #i(st sale i (es.ect !# the same 5!!ds a d bei 5 als! a sale "hich d!es !t #all "ithi s)b1secti! (2) !# secti! 6, the tax shall be le+ied a d c!llected1 (a) "he(e s)ch s)bse/)e t sale has bee e##ected by a (e5iste(ed deale(, i the 2tate #(!m "hich the (e5iste(ed deale( !btai ed !(, as the case may be, c!)ld ha+e !btai ed, the #!(m .(esc(ibed #!( the .)(.!ses !# cla)se (a) !# s)b1secti! (4) !#

1'

secti! C i c! ecti! "ith the .)(chase !# s)ch 5!!ds3 a d (b) "he(e s)ch s)bse/)e t sale has bee e##ected by a ) (e5iste(ed deale(, i the 2tate #(!m "hich s)ch s)bse/)e t sale has bee e##ected. (2) 2)b@ect t! the !the( .(!+isi! s !# this Act a d the ()les made the(e) de(, the a)th!(ities #!( the time bei 5 em.!"e(ed t! assess, (e1assess, c!llect a d e #!(ce .ayme t !# a y tax ) de( the 5e e(al sales tax la" !# the a..(!.(iate 2tate shall, ! behal# !# the *!+e( me t !# I dia, assess, (e1asses, c!llect a d e #!(ce .ayme t !# tax, i cl)di 5 a y i te(est !( .e alty, .ayable by a deale( ) de( this Act as i# the tax !( i te(est !( .e alty .ayable by s)ch a deale( ) de( this Act is a tax !( i te(est !( .e alty .ayable ) de( the 5e e(al sales tax la" !# the 2tate3 a d #!( this .)(.!se they may exe(cise all !( a y !# the .!"e(s they ha+e ) de( the 5e e(al sales tax la" !# the 2tate3 a d the .(!+isi! s !# s)ch la", i cl)di 5 .(!+isi! s (elati 5 t! (et)( s, .(!+isi! al assessme t, ad+a ce .ayme t !# tax, (e5ist(ati! !# the t(a s#e(ee !# a y b)si ess, im.!siti! !# the tax liability !# a .e(s! ca((yi 5 ! b)si ess ! the t(a s#e(ee !#, !( s)ccess!( t!, s)ch b)si ess, t(a s#e( !# liability !# a y #i(m !( 8i d) ) di+ided #amily t! .ay tax i the e+e t !# the diss!l)ti! !# s)ch #i(m !( .a(titi! !# s)ch #amily, (ec!+e(y !# tax #(!m thi(d .a(ties, a..eals, (e+ie"s, (e+isi! s, (e#e(e ces, (e#) ds, (ebates, .e alties, cha(5i 5 !( .ayme t !# i te(est, c!m.!) di 5 !# !##e ces a d t(eatme t !# d!c)me ts #)( ished by a deale( as c! #ide tial, shall a..ly acc!(di 5lyB <=O>I?9? that i# i a y 2tate !( .a(t the(e!# the(e is ! 5e e(al sales tax la" i #!(ce, the Ce t(al *!+e( me t may, by ()les made i this behal# ma4e ecessa(y .(!+isi! #!( all !( a y !# the matte(s s.eci#ied i this s)b1secti! . (2A) All the .(!+isi! s (elati 5 t! !##e ces, i te(est a d .e alties (i cl)di 5 .(!+isi! s (elati 5 t! .e alties i lie) !# .(!sec)ti! #!( a !##e ce !( i additi! t! the .e alties !( .) ishme t #!( a !##e ce b)t excl)di 5 the .(!+isi! s (elati 5 t! matte(s .(!+ided #!( i secti! s 1: a d 1:A) !# the 5e e(al sales tax la" !# each 2tate shall, "ith ecessa(y m!di#icati! s, a..ly i (elati! t! the assessme t, (eassessme t, c!llecti! a d the e #!(ceme t !# .ayme t !# a y tax (e/)i(ed t! be c!llected ) de( this Act i s)ch 2tate !( i (elati! t! a y .(!cess c! ected "ith s)ch assessme t, (e1assessme t, c!llecti! !( e #!(ceme t !# .ayme t as i# the tax ) de( this Act "e(e a tax ) de( s)ch sales tax la". (2E) I# the tax .ayable by a y deale( ) de( this Act is !t .aid i time, the deale( shall be liable t! .ay i te(est #!( delayed .ayme t !# s)ch tax a d all the .(!+isi! s #!( delayed .ayme t !# s)ch tax a d all the .(!+isi! s (elati 5 t! d)e date #!( .ayme t !# tax, (ate !# i te(est #!( delayed .ayme t !# tax a d assessme t a d c!llecti! !# i te(est #!( delayed .ayme t !# tax, !# the 5e e(al sales tax la"s !# each 2tate, shall a..ly i (elati! t! d)e date #!( .ayme t !# tax, (ate !# i te(est #!( delayed .ayme t !# tax, a d assessme t a d c!llecti! !# i te(est #!( delayed .ayme t !# tax ) de( this Act i s)ch 2tates as i# the tax a d the i te(est .ayable ) de( this Act "e(e a tax a d a i te(est ) de( s)ch sales tax la". (') The .(!ceeds i a y #i a cial yea( !# a y tax, i cl)di 5 a y i te(est !( .e alty, le+ied a d c!llected ) de( this Act i a y 2tate (!the( tha a D i! Te((it!(y) ! behal# !# the *!+e( me t !# I dia shall be assi5 ed t! that 2tate a d

14

shall be (etai ed by it3 a d the .(!ceeds att(ib)table t! D i! Te((it!(ies shall #!(m .a(t !# the C! s!lidated F) d !# I dia. 9A Colle tion o$ tax to (e only (y re*i!tered dealer! N! .e(s! "h! is !t a (e5iste(ed deale( shall c!llect i (es.ect !# a y sale by him !# 5!!ds i the c!)(se !# i te(12tate t(ade !( c!mme(ce a y am!) t by "ay !# tax ) de( this Act, a d ! (e5iste(ed deale( shall ma4e a y s)ch c!llecti! exce.t i acc!(da ce "ith this Act a d the ()les made the(e) de(. 93 Ro)ndin* o$$ o$ tax, et 4 The am!) t !# tax, i te(est, .e alty, #i e !( a y !the( s)m .ayable, a d the am!) t !# (e#) d d)e, ) de( the .(!+isi! s !# this Act shall be (!) ded !## t! the ea(est ().ee a d, #!( this .)(.!se, "he(e s)ch am!) t c! tai s a .a(t !# a ().ee c! sisti 5 !# .aise, the , i# s)ch .a(t is #i#ty .aise !( m!(e, it shall be i c(eased t! ! e ().ee a d i# s)ch .a(t is less tha #i#ty .aise, it shall be i5 !(edB <=O>I?9? that !thi 5 i this secti! shall a..ly #!( the .)(.!se !# c!llecti! by a deale( !# a y am!) t by "ay !# tax ) de( this Act i (es.ect !# a y sale by him !# 5!!ds i the c!)(se !# i te(12tate t(ade !( c!mme(ce. 17 Penaltie! I# a y .e(s! 0 (a) #)( ishes a ce(ti#icate !( decla(ati! ) de( s)b1secti! (2) !# secti! 6 !( s)b1secti! (1) !# secti! 6A !( s)b1secti! (4) !( s)b1secti! (C) !# secti! C, "hich he 4 !"s, !( has (eas! t! belie+e, t! be #alse 3 !( (aa) #ails t! 5et himsel# (e5iste(ed as (e/)i(ed by secti! 7 !( #ails t! c!m.ly "ith a !(de( ) de( s)b1secti! ('A) !( "ith the (e/)i(eme ts !# s)b1secti! ('C) !( s)b1 secti! ('9) !# that secti! 3 !( (b) bei 5 a (e5iste(ed deale(, #alsely (e.(ese ts "he .)(chasi 5 a y class !# 5!!ds that 5!!ds !# s)ch class a(e c!+e(ed by his ce(ti#icate !# (e5ist(ati! 3 !( (c) !t bei 5 a (e5iste(ed deale(, #alsely (e.(ese ts "he .)(chasi 5 5!!ds i the c!)(se !# i te(12tate t(ade !( c!mme(ce that he is a (e5iste(ed deale( 3 !( (d) a#te( .)(chasi 5 a y 5!!ds #!( a y !# the .)(.!ses s.eci#ied i cla)se (b) !( cla)se (c) !( cla)se (d) !# s)b1secti! (') !( s)b1secti! (6) !# secti! C #ails, "ith!)t (eas! able exc)se, t! ma4e )se !# the 5!!ds #!( a y s)ch .)(.!se3 !( (e) has i his .!ssessi! a y #!(m .(esc(ibed #!( the .)(.!se !# s)b1secti! (4) !( s)b1secti! (C) !# secti! C "hich has !t bee !btai ed by him !( by his .(i ci.al !( by his a5e t i acc!(da ce "ith the .(!+isi! s !# this Act !( a y ()les made the(e) de(3 !( (#) c!llects a y am!) t by "ay !# tax i c! t(a+e ti! !# the .(!+isi! s c! tai ed i secti! 9A, he shall be .) ishable "ith sim.le im.(is! me t "hich may exte d t! six m! ths, !( "ith #i e !( "ith b!th3 a d "he the !##e ce is a c! ti )i 5 !##e ce, "ith a daily #i e "hich may exte d t! #i#ty ().ees #!( e+e(y day d)(i 5 "hich the !##e ce

15

c! ti )es. 17A Im&o!ition o$ &enalty in lie) o$ &ro!e )tion (1) I# a y .e(s! .)(chasi 5 5!!ds is 5)ilty !# a !##e ce ) de( cla)se (b) !( cla)se (c) !( cla)se (d) !# secti! 1:, the a)th!(ity "h! 5(a ted t! him !(, as the case may be, is c!m.ete t t! 5(a t t! him a ce(ti#icate !# (e5ist(ati! ) de( this Act may, a#te( 5i+i 5 him a (eas! able !..!(t) ity !# bei 5 hea(d, by !(de( i "(iti 5, im.!se ).! him by "ay !# .e alty a s)m !t exceedi 5 ! e1a d1a1hal# times the tax "hich "!)ld ha+e bee le+ied ) de( s)b1secti! (2) !# secti! C i (es.ect !# the sale t! him !# the 5!!ds, i# the sale had bee a sale #alli 5 "ithi that s)b1secti! .B <=O>I?9? that ! .(!sec)ti! #!( a !##e ce ) de( secti! 1: shall be i stit)ted i (es.ect !# the same #acts ! "hich a .e alty has bee im.!sed ) de( this secti! . (2) The .e alty im.!sed ).! a y deale( ) de( s)b1secti! (1) shall be c!llected by the *!+e( me t !# I dia i the ma e( .(!+ided i s)b1secti! (2) !# secti! 91 (a) i the case !# a !##e ce #alli 5 ) de( cla)se (b) !( cla)se (d) !# secti! 1:, i the 2tate i "hich the .e(s! .)(chasi 5 the 5!!ds !btai ed the #!(m .(esc(ibed #!( the .)(.!ses !# cla)se (a) !# s)b1secti! (4) !# secti! C i c! ecti! "ith the .)(chase !# s)ch 5!!ds 3 (b) i the case !# a !##e ce #alli 5 ) de( cla)se (c) !# secti! 1:, i the 2tate i "hich the .e(s! .)(chasi 5 the 5!!ds sh!)ld ha+e (e5iste(ed himsel# i# the !##e ce had !t bee c!mmitted. 11 Co*ni8an e o$ o$$en e! (1) N! c!)(t shall ta4e c!5 i-a ce !# a y !##e ce .) ishable ) de( this Act !( the ()les made the(e) de( exce.t "ith the .(e+i!)s sa cti! !# the *!+e( me t "ithi the l!cal limits !# "h!se @)(isdicti! the !##e ce has bee c!mmitted !( !# s)ch !##ice( !# that *!+e( me t as it may, by 5e e(al !( s.ecial !(de(, s.eci#y i this behal#3 a d ! c!)(t i #e(i!( t! that !# a .(eside cy ma5ist(ate !( a ma5ist(ate !# the #i(st class shall t(y a y s)ch !##e ce. (2) All !##e ces .) ishable ) de( this Act shall be c!5 i-able a d bailable. 1" Indemnity N! s)it, .(!sec)ti! !( !the( le5al .(!ceedi 5 shall lie a5ai st a y !##ice( !# *!+e( me t #!( a ythi 5 "hich is i 5!!d #aith d! e !( i te ded t! be d! e ) de( this Act !( the ()les made the(e) de(. 10 Po+er to ma-e r)le! (1) The Ce t(al *!+e( me t may, by !ti#icati! i the O##icial *a-ette, ma4e ()les .(!+idi 5 #!( 0 (a) the ma e( i "hich a..licati! s #!( (e5ist(ati! may be made ) de( this

16

Act, the .a(tic)la(s t! be c! tai ed the(ei , the .(!ced)(e #!( the 5(a t !# s)ch (e5ist(ati! , the ci(c)msta ces i "hich (e5ist(ati! may be (e#)sed a d the #!(m i "hich the ce(ti#icate !# (e5ist(ati! may be 5i+e 3 (aa) the ma e( !# dete(mi ati! !# the sale .(ice a d the ded)cti! s #(!m the t!tal c! side(ati! #!( a "!(4s c! t(act ) de( the .(!+is! t! cla)se (h) !# secti! 23 (ab) the #!(m a d the ma e( #!( #)( ishi 5 decla(ati! ) de( s)b1secti! (C) !# secti! C 3 (b) the .e(i!d !# t)( !+e(, the ma e( i "hich the t)( !+e( i (elati! t! the sale !# a y 5!!ds ) de( this Act shall be dete(mi ed, a d the ded)cti! s "hich may be made ) de( cla)se (c) !# s)b1secti! (1) !# secti! CA i the .(!cess !# s)ch dete(mi ati! 3 (c) the cases a d ci(c)msta ces i "hich, a d the c! diti! s s)b@ect t! "hich, a y (e5ist(ati! 5(a ted ) de( this Act may be ca celled 3 (d) the #!(m i "hich a d the .a(tic)la(s t! be c! tai ed i a y decla(ati! !( ce(ti#icate t! be 5i+e ) de( this Act the 2tate !# !(i5i !# s)ch #!(m !( ce(ti#icate a d the time "ithi "hich a y s)ch ce(ti#icate !( decla(ati! shall be .(!d)ced !( #)( ished3 (e) the e )me(ati! !# 5!!ds !( class !# 5!!ds )sed i the ma )#act)(e !( .(!cessi 5 !# 5!!ds #!( sale !( i mi i 5 !( i the 5e e(ati! !( dist(ib)ti! !# elect(icity !( a y !the( #!(m !# .!"e( 3 (#) the matte(s i (es.ect !# "hich .(!+isi! may be made ) de( the .(!+is! t! s)b1secti! (2) !# secti! 9 3 (5) the #ees .ayable i (es.ect !# a..licati! s ) de( this Act 3 (h) the .(!.e( #) cti! i 5 !# the A)th!(ity c! stit)ted ) de( secti! 193 (i) the sala(ies a d all!"a ces .ayable t!, a d the te(ms a d c! diti! s !# se(+ice !#, the Chai(ma a d Gembe(s ) de( s)b1secti! (') !# secti! 19 3 (@) a y !the( matte( as may be .(esc(ibed. (2) 9+e(y ()le made by the Ce t(al *!+e( me t ) de( s)b1secti! (1) shall be laid, as s!! as may be a#te( it is made, be#!(e each 8!)se !# <a(liame t, "hile it is i sessi! , #!( a t!tal .e(i!d !# thi(ty days "hich may be c!m.(ised i ! e sessi! !( i t"! !( m!(e s)ccessi+e sessi! s, a d i#, be#!(e the ex.i(y !# the sessi! immediately #!ll!"i 5 the sessi! !( the s)ccessi+e sessi! a#!(esaid, b!th 8!)ses a5(ee i ma4i 5 a y m!di#icati! i the ()le !( b!th 8!)ses a5(ee that the ()le sh!)ld !t be made, the ()le shall the(ea#te( ha+e e##ect ! ly i s)ch m!di#ied #!(m !( be !# ! e##ect, as the case may be3 s!, h!"e+e(, that a y s)ch m!di#icati! !( a )lme t shall be "ith!)t .(e@)dice t! the +alidity !# a ythi 5 .(e+i!)sly d! e ) de( that ()le. (') The 2tate *!+e( me t may ma4e ()les, !t i c! siste t "ith the .(!+isi! s !# this Act a d the ()les made ) de( s)b1secti! (1), t! ca((y !)t the .)(.!se !# this Act. (4) I .a(tic)la( a d "ith!)t .(e@)dice t! the .!"e(s c! #e((ed by s)b1secti! ('), the 2tate *!+e( me t may ma4e ()les #!( all !( a y !# the #!ll!"i 5 .)(.!ses, amely B1

17

(a) the .)blicati! !# lists !# (e5iste(ed deale(s, !# the ame dme ts made i s)ch lists #(!m time t! time, a d the .a(tic)la(s t! be c! tai ed i s)ch lists3 (aa) the ma e( i "hich sec)(ity may be #)( ished ) de( s)b1secti! (2A) !( s)b1secti! ('A) !( s)b1secti! ('C) !# secti! 7 a d the ma e( i "hich a d the time "ithi "hich a y de#icie cy may be made ). ) de( s)b1secti! ('9) !# that secti! 3 (b) the #!(m a d ma e( i "hich acc!) ts (elati 5 t! sales i the c!)(se !# i te(12tate t(ade !( c!mme(ce shall be 4e.t by (e5iste(ed deale(s 3 (c) the #)( ishi 5 !# a y i #!(mati! (elati 5 t! the st!c4s !# 5!!ds !# .)(chases, sales a d deli+e(ies !# 5!!ds by, a y deale( !( a y !the( i #!(mati! (elati 5 t! his b)si ess as may be ecessa(y #!( the .)(.!ses !# this Act 3 (d) the i s.ecti! !# a y b!!4s, acc!) ts !( d!c)me ts (e/)i(ed t! be 4e.t ) de( this Act, the e t(y i t! a y .(emises at all (eas! able times #!( the .)(.!ses !# sea(chi 5 #!( a y s)ch b!!4s, acc!) ts !( d!c)me ts 4e.t !( s)s.ected t! be 4e.t i s)ch .(emises a d the sei-)(e !# s)ch b!!4s, acc!) ts !( d!c)me ts 3 (e) the a)th!(ity #(!m "h!m, the c! diti! s s)b@ect t! "hich a d the #ees s)b@ect t! .ayme t !# "hich a y #!(m !# ce(ti#icate .(esc(ibed ) de( cla)se (a) !# the #i(st .(!+is! t! s)b1secti! (2) !# secti! 6 !( !# decla(ati! .(esc(ibed ) de( s)b1secti! (1) !# secti! 6A !( s)b1secti! (4) !# secti! C may be !btai ed, the ma e( i "hich s)ch #!(ms shall be 4e.t i c)st!dy a d (ec!(ds (elati 5 the(et! mai tai ed a d the ma e( i "hich a y s)ch #!(m may be )sed a d a y s)ch ce(ti#icate !( decla(ati! may be #)( ished 3 (ee) the #!(m a d ma e( i "hich, a d the a)th!(ity t! "h!m, a a..eal may be .(e#e((ed ) de( s)b1secti! ('8) !# secti! 7, the .(!ced)(e t! be #!ll!"ed i hea(i 5 s)ch a..eals a d the #ees .ayable i (es.ect !# s)ch a..eals 3 (#) i the case !# a D di+ided 8i d) Family, ass!ciati! , cl)b, s!ciety, #i(m !( c!m.a y !( i the case !# a .e(s! "h! ca((ies ! b)si ess as a 5)a(dia !( t()stee !( !the("ise ! behal# !# a !the( .e(s! , the #)( ishi 5 !# a decla(ati! stati 5 the ame !# the .e(s! "h! shall be deemed t! be the ma a5e( i (elati! t! the b)si ess !# the deale( i the 2tate a d the #!(m i "hich s)ch decla(ati! may be 5i+e 3 (5) the time "ithi "hich, the ma e( i "hich a d the a)th!(ities t! "h!m a y cha 5e i the !" e(shi. !# a y b)si ess !( i the ame, .lace !( at)(e !# a y b)si ess ca((ied ! by a y deale( shall be #)( ished. (5) I ma4i 5 a y ()le ) de( this secti! the Ce t(al *!+e( me t !(, as the case may be, the 2tate *!+e( me t may di(ect that a b(each the(e!# shall be .) ishable "ith #i e "hich may exte d t! #i+e h) d(ed ().ees a d "he the !##e ce is a c! ti )i 5 !##e ce, "ith a daily #i e "hich may exte d t! #i#ty ().ees #!( e+e(y day d)(i 5 "hich the !##e ce c! ti )es.

CHAPTER I9
:ood! o$ !&e ial im&ortan e in inter/State trade or ommer e
12 Certain *ood! to (e o$ !&e ial im&ortan e in inter/State trade or

1C

ommer e It is he(eby decla(ed that the #!ll!"i 5 5!!ds a(e !# s.ecial im.!(ta ce i i te(12tate t(ade !( c!mme(ceB1 (i) ce(eals, that is t! say,1 (i) .addy (Oryza sativa L.)3 (ii) (ice (Oryza sativa L.)3 (iii) "heat (Triticu vul!are" T. #o pactu " T. sp$aerococcu " T. duru " T. aestivu L." T. dicoccu )3 (i+) F!"a( !( mil! (%or!$u vul!are &ers)3 (+) ba@(a (&ennisetu typ$oideu L.)3 (+i) mai-e ('ea ays L.)3 (+ii) (a5i (Eleusine coracana Gaertn)3 (+iii) 4!d! (&aspalu scro(iculatu L.)3 (ix) 4)t4i (&anicu iliare L.)3 (x) ba(ley ()ordeu vul!are L.)3 (ia) c!al, i cl)di 5 c!4e i all its #!(ms, b)t excl)di 5 cha(c!alB <=O>I?9? that d)(i 5 the .e(i!d c!mme ci 5 ! the 2'(d day !# Feb()a(y, 1967 a d e di 5 "ith the date !# c!mme ceme t !# secti! 11 !# the Ce t(al 2ales Tax (Ame dme t) Act, 1972 (61 !# 1972) this cla)se shall ha+e e##ect s)b@ect t! the m!di#icati! that the "!(ds 6b)t excl)di 5 cha(c!al7 shall be !mitted3 (ii) c!tt! , that is t! say, all 4i ds !# c!tt! (i di5e !)s !( im.!(ted) i its ) ma )#act)(ed state, "hethe( 5i ed !( ) 5i ed, baled, .(essed !( !the("ise, b)t !t i cl)di 5 c!tt! "aste3 (iia) c!tt! #ab(ics c!+e(ed ) de( headi 5 N!s. 52.:5, 52.:6, 52.:7, 52.:C, 52.:9, 52.1:, 52.11, 52.12, 5C.:1, 5C.:2, 5C.:', 5C.:4, 5C.:5, 5C.:6, 59.:1, 59.:', 59.:5, 59.:6 a d 6:.:1 !# the 2ched)le t! the Ce t(al 9xcise Ta(i## Act, 19C5 (5 !# 19C6)3 (iib) c!tt! ya( , b)t !t i cl)di 5 c!tt! ya( "aste3 (iic) c()de !il, that is t! say, c()de .et(!le)m !ils a d c()de !ils !btai ed #(!m bit)mi !)s mi e(als (s)ch as shale, calca(e!)s (!c4, sa d), "hate+e( thei( c!m.!siti! , "hethe( !btai ed #(!m !(mal !( c! de sati! !il1de.!sits !( by the dest()cti+e distillati! !# bit)mi !)s mi e(als a d "hethe( !( !t s)b@ected t! all !( a y !# the #!ll!"i 5 .(!cessesB1 (1) deca tati! 3 (2) de1salti 5 3 (') dehyd(ati! 3 (4) stabilisati! i !(de( t! !(malise the +a.!)( .(ess)(e 3 (5) elimi ati! !# +e(y li5ht #(acti! s "ith a +ie" t! (et)( i 5 them t! the !il de.!sits i !(de( t! im.(!+e the d(ai a5e a d mai tai the .(ess)(e 3 (6) the additi! !# ! ly th!se hyd(!ca(b! s .(e+i!)sly (ec!+e(ed by .hysical meth!ds d)(i 5 the c!)(se !# the ab!+e me ti! ed .(!cesses 3

19

(7) a y !the( mi !( .(!cess (i cl)di 5 additi! !# .!)( .!i t de.(essa ts !( #l!" im.(!+e(s) "hich d!es !t cha 5e the esse tial cha(acte( !# the s)bsta ce 3 A+iati! T)(bi e F)el s!ld t! a T)(b!1<(!. Ai(c(a#t 3 Explanation1 F!( the .)(.!ses !# this cla)se, 6T)(b!1<(!. Ai(c(a#t7 mea s a ai(c(a#t de(i+i 5 th()st, mai ly #(!m .(!.elle(, "hich may be d(i+e by eithe( t)(bi e e 5i e !( .ist! e 5i e3 (iii) hides a d s4i s, "hethe( i a (a" !( d(essed state3 (i+) i(! a d steel, that is t! say,1 (i) .i5 i(! , s.! 5e i(! a d cast i(! i cl)di 5 i 5!t the m!)lds, b!tt!m .lates, i(! sc(a., cast i(! sc(a., () e( sc(a. a d i(! s4)ll sc(a. 3 (ii) steel semis (i 5!ts, slabs, bl!!ms a d billets !# all /)alities, sha.es a d si-es) 3 (iii) s4el. ba(s, ti ba(s, sheet ba(s, h!e1ba(s a d slee.e( ba(s 3 (i+) steel ba(s ((!) ds, (!ds, s/)a(es, #lats, !cta5! s a d hexa5! s, .lai a d (ibbed !( t"isted, i c!il #!(m as "ell as st(ai5ht le 5ths) 3 (+) steel st()ct)(als (a 5les, @!ists, cha els, tees, sheet .ili 5 secti! s, H secti! s !( a y !the( (!lled secti! s) 3 (+i) sheets, h!!.s, st(i.s a d s4el. b!th blac4 a d 5al+a ised, h!t a d c!ld (!lled, .lai a d c!(()5ated, i all /)alities, i st(ai5ht le 5ths a d i c!il #!(m, as (!lled a d i (i+etted c! diti! 3 (+ii) .lates b!th .lai a d che/)e(ed i all /)alities 3 (+iii) discs, (i 5s, #!(5i 5s a d steel casti 5s 3 (ix) t!!l, all!y a d s.ecial steels !# a y !# the ab!+e cate5!(ies 3 (x) steel melti 5 sc(a. i all #!(ms i cl)di 5 steel s4)ll, t)( i 5s a d b!(i 5s 3 (xi) steel t)bes b!th "elded a d seamless, !# all diamete(s a d le 5ths, i cl)di 5 t)be #itti 5s 3 (xii) ti 1.lates, b!th h!t di..ed a d elect(!lytic a d ti #(ee .lates 3 (xiii) #ish .late ba(s, bea(i 5 .late ba(s, c(!ssi 5 slee.e( ba(s, #ish .lates, bea(i 5 .lates, c(!ssi 5 slee.e(s a d .(essed steel slee.e(s, (ails1hea+y a d li5ht c(a e (ails 3 (xi+) "heels, ty(es, axles a d "heels sets 3 (x+) "i(e (!ds a d "i(es1(!lled, d(a" , 5al+a ised, al)mi ised, ti ed !( c!ated s)ch as by c!..e( 3 (x+i) de#ecti+e, (e@ects, c)tti 5s !( e d .ieces !# a y !# the ab!+e cate5!(ies 3 (+) @)te, that is t! say, the #ib(e ext(acted #(!m .la ts bel! 5i 5 t! the s.ecies #orc$orus capsularis a d #orc$orus olitorius a d the #ib(e 4 !" as mesta !( bimli ext(acted #(!m .la ts !# the s.ecies )i(iscus canna(inus a d )i(scus su(dariffa ; *ar altissi a a d the #ib(e 4 !" as %unn !( %unn-$e p ext(acted #(!m .la ts !# the s.ecies #rotalaria +uncea "hethe( baled !( !the("ise 3 (va) Li,uefied petroleu !as for do estic use(iid)

2:

(+i) !ilseeds, that is t! say,1 (i) *(!) d )t !( <ea )t (.rac$is $ypo!aea)3 (ii) 2esam)m !( Til (%esa u orientale)3 (iii) C!tt! seed (Gossypiu %pp.)3 (i+) 2!yabea (Glycine se+a)3 (+) =a.eseed a d G)sta(d1 (1) T!(ia (/rassica ca pestris var toria)3 (2) =ai (/rassica +uncea)3 (') Famba1Ta(ami(a (Eruca %atiya)3 (4) 2a(s! , yell!" a d b(!" (/rassica ca pestris var sarson)3 (5) Ea a(si =ai !( T()e G)sta(d (/rassica ni!ra)3 (+i) Ii seed (Linu usitatissi u )3 (+ii) Cast!( (0icinus co unis)3 (+iii) C!c! )t (i.e., C!.(a excl)di 5 te de( c!c! )ts) (cocosnucifera)3 (ix) 2) #l!"e( ()eliant$us annus)3 (x) Ni5a( seed (Guizotia a(yssinica)3 (xi) Neem, +e.a (.zadirac$ta indica)3 (xii) Gah)a, Ill).ai, I..e (1ad$uca indica 1. Latifolia" /assia" Latifolia and 1ad$uca lon!ifolia syn. 1. Lon!ifolia) 3 (xiii) Ja(a @a, <! 5am, 8! 5a (&on!a ia pinnata syn. &. Gla(ra)3 (xi+) J)s)m (%c$leic$era oleosa" syn. %. Tri+u!a) 3 (x+) <) a, D di (#alop$yllu inop$yllu ) 3 (x+i) J!4)m (#arcinia indica)3 (x+ii) 2al (%$orea ro(usta)3 (x+iii) T) 5 (.leurites fordii and .. ontana)3 (xix) =ed .alm (Elaeis !uinensis)3 (xx) 2a##l!"e( (#art$anus tinctorius)3 (+ia) .)lses, that is t! say,1 (i) 5(am !( !ula( 5(am (#icerarietinu L.) 3 (ii) tur !( ar$ar (#a+anus ca+an) 3 (iii) oon! !( 5(ee 5(am (&$aseolus aureus) 3 (i+) asur !( le til (Lens esculenta 1oenc$" Lens culinaris 1edic) 3 (+) urad !( blac4 5(am (&$aseolus un!o) 3 (+i) ot$ (&$aseolus aconitifolius 2ac,) 3 (+ii) la3$ !( 3$esari (Lat$yrus sativus L.) 3 (+ii) ma made #ab(ics c!+e(ed ) de( headi 5 N!s. 54.:C, 54.:9, 54.1:, 54.11, 54.12, 55.:7, 55.:C, 55.:9, 55.1:, 55.11, 55.12, 5C.:1, 5C.:2, 5C.:', 5C.:4, 5C.:5, 5C.:6, 59.:1, 59.:2, 59.:', 59.:5, 59.:6 a d 6:.:1 !# the 2ched)le t! the Ce t(al 9xcise Ta(i## Act, 19C5 (5 !# 19C6)3 (+iii) s)5a(, c!+e(ed ) de( s)b1headi 5 N!s. 17:1.2:, 17:1.'1, 17:1.'9 a d 17:2.11 !# the 2ched)le t! the Ce t(al 9xcise Ta(i## Act, 19C5 (5 !# 19C6)3

21

(ix) ) ma )#act)(ed t!bacc! a d t!bacc! (e#)se c!+e(ed ) de( the s)b1 headi 5 N!. 24:1.:: ci5a(s a d che(!!ts !# t!bacc! c!+e(ed ) de( headi 5 N!. 24.:2, ci5a(ettes a d ci5a(ill!s !# t!bacc! c!+e(ed ) de( s)b1headi 5 N!s. 24:'.11 a d 24:'.21 a d !the( ma )#act)(ed t!bacc! c!+e(ed ) de( s)b1headi 5 N!s. 24:4.11, 24:4.12, 24:4.1', 24:4.19, 24:4.21, 24:4.29, 24:4.'1, 24:4.'9, 24:4.41, 24:4.5: a d 24:4.6: !# the 2ched)le t! the Ce t(al 9xcise Ta(i## Act, 19C5 (5 !# 19C6)3 (x) "!+e #ab(ics !# "!!l c!+e(ed ) de( headi 5 N!s. 51.:6, 51.:7, 5C.:1, 5C.:2, 5C.:' a d 5C.:5 !# the 2ched)le t! the Ce t(al 9xcise Ta(i## Act, 19C5 (5 !# 19C6)3 (xi) $!mitted& 15 Re!tri tion! and ondition! in re*ard to tax on !ale or &)r ha!e o$ de lared *ood! +ithin a State 9+e(y sales tax la" !# a 2tate shall, i s! #a( as it im.!ses !( a)th!(ises the im.!siti! !# a tax ! the sale !( .)(chase !# decla(ed 5!!ds, be s)b@ect t! the #!ll!"i 5 (est(icti! s a d c! diti! s, amelyB (a) the tax .ayable ) de( that la" i (es.ect !# a y sale !( .)(chase !# s)ch 5!!ds i side the 2tate shall !t exceed #!)( .e(ce t !# the sale !( .)(chase .(ice the(e!#, $%%%& 3 (b) "he(e a tax has bee le+ied ) de( that la" i (es.ect !# the sale !( .)(chase i side the 2tate !# a y decla(ed 5!!ds a d s)ch 5!!ds a(e s!ld i the c!)(se !# i te(1 2tate t(ade !( c!mme(ce, a d tax has bee .aid ) de( this Act i (es.ect !# the sale !# s)ch 5!!ds i the c!)(se !# i te(12tate t(ade !( c!mme(ce, the tax le+ied ) de( s)ch la" shall be (eimb)(sed t! the .e(s! ma4i 5 s)ch sale i the c!)(se !# i te(1 2tate t(ade !( c!mme(ce i s)ch ma e( a d s)b@ect t! s)ch c! diti! s as may be .(!+ided i a y la" i #!(ce i that 2tate3 (c) "he(e a tax has bee le+ied ) de( that la" i (es.ect !# the sale !( .)(chase i side the 2tate !# a y .addy (e#e((ed t! i s)b1cla)se (i) !# cla)se (i) !# secti! 14, the tax le+iable ! (ice .(!c)(ed !)t !# s)ch .addy shall be (ed)ced by the am!) t !# tax le+ied ! s)ch .addy 3 (ca) "he(e a tax ! sale !( .)(chase !# .addy (e#e((ed t! i s)b1cla)se (i) !# cla)se (i) !# secti! 14 is le+iable ) de( that la" a d the (ice .(!c)(ed !)t !# s)ch .addy is ex.!(ted !)t !# I dia, the , #!( the .)(.!se !# s)b1secti! (') !# secti! 5, the .addy a d (ice shall be t(eated as a si 5le c!mm!dity 3 (d) each !# the .)lses (e#e((ed t! i cla)se (+i1a) !# secti! 14, "hethe( "h!le !( se.a(ated, a d "hethe( "ith !( "ith!)t h)s4, shall be t(eated as a si 5le c!mm!dity #!( the .)(.!ses !# le+y !# tax ) de( that la".

CHAPTER 9
Lia(ility in S&e ial Ca!e!

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16

#e$inition! I this Cha.te(, 0 (a) %a&&ro&riate a)thority', i (elati! t! a c!m.a y, mea s the a)th!(ity c!m.ete t t! assess tax ! the c!m.a y3 (b) % om&any' a d %&ri,ate om&any' ha+e the mea i 5s (es.ecti+ely assi5 ed t! them by cla)ses (i) a d (iii) !# s)b1secti! (1) !# secti! ' !# the C!m.a ies Act, 1956 (1 !# 1956). 15 Com&any in li;)idation (1) 9+e(y .e(s! 0 (a) "h! is the li/)idat!( !# a y c!m.a y "hich is bei 5 "!) d )., "hethe( ) de( the !(de(s !# a c!)(t !( !the("ise3 !( (b) "h! has bee a..!i ted the (ecei+e( !# a y assets !# a c!m.a y, (he(ei a#te( (e#e((ed t! as the li/)idat!() shall, "ithi thi(ty days a#te( he has bec!me s)ch li/)idat!(, 5i+e !tice !# his a..!i tme t as s)ch t! the a..(!.(iate a)th!(ity. (2) The a..(!.(iate a)th!(ity shall, a#te( ma4i 5 s)ch i /)i(y !( calli 5 #!( s)ch i #!(mati! as it may deem #it, !ti#y t! the li/)idat!( "ithi th(ee m! ths #(!m the date ! "hich he (ecei+es !tice !# the a..!i tme t !# the li/)idat!( the am!) t "hich, i the !.i i! !# the a..(!.(iate a)th!(ity "!)ld be s)##icie t t! .(!+ide #!( a y tax "hich is the , !( is li4ely the(ea#te( t! bec!me, .ayable by the c!m.a y. (') The li/)idat!( shall !t .a(t "ith a y !# the assets !# the c!m.a y !( the .(!.e(ties i his ha ds ) til he has bee !ti#ied by the a..(!.(iate a)th!(ity ) de( s)b1secti! (2) a d ! bei 5 s! !ti#ied, shall set aside a am!) t e/)al t! the am!) t !ti#ied a d, ) til he s! sets aside s)ch am!) t, shall !t .a(t "ith a y !# the assets !# the c!m.a y !( the .(!.e(ties i his ha ds B <=O>I?9? that !thi 5 c! tai ed i this s)b1secti! shall deba( the li/)idat!( #(!m .a(ti 5 "ith s)ch assets !( .(!.e(ties i c!m.lia ce "ith a y !(de( !# a c!)(t !( #!( the .)(.!se !# the .ayme t !# the tax .ayable by the c!m.a y ) de( this Act !( #!( ma4i 5 a y .ayme t t! sec)(ed c(edit!(s "h!se debts a(e e titled ) de( la" t! .(i!(ity !# .ayme t !+e( debts d)e t! *!+e( me t ! the date !# li/)idati! !( #!( meeti 5 s)ch c!sts a d ex.e ses !# the "i di 5 ). !# the c!m.a y as a(e i the !.i i! !# the a..(!.(iate a)th!(ity (eas! able. (4) I# the li/)idat!( #ails t! 5i+e the !tice i acc!(da ce "ith s)b1secti! (1) !( #ails t! set aside the am!) t as (e/)i(ed by, !( .a(ts "ith a y !# the assets !# the c!m.a y !( the .(!.e(ties i his ha ds i c! t(a+e ti! !# the .(!+isi! s !# s)b1 secti! ('), he shall be .e(s! ally liable #!( the .ayme t !# the tax "hich the c!m.a y "!)ld be liable t! .ayB <=O>I?9? that i# the am!) t !# a y tax .ayable by the c!m.a y is !ti#ied ) de( s)b1secti! (2), the .e(s! al liability !# the li/)idat!( ) de( this s)b1 secti! shall be t! the exte t !# s)ch am!) t. (5) Ahe(e the(e a(e m!(e li/)idat!(s tha ! e, the !bli5ati! s a d liabilities attached t! the li/)idat!( ) de( this secti! shall attach t! all the li/)idat!(s @!i tly a d se+e(ally.

2'

(6) The .(!+isi! s !# this secti! shall ha+e e##ect !t"ithsta di 5 a ythi 5 t! the c! t(a(y c! tai ed i a y !the( la" #!( the time bei 5 i #!(ce. 16 Lia(ility o$ dire tor! o$ &ri,ate om&any in li;)idation N!t"ithsta di 5 a ythi 5 c! tai ed i the C!m.a ies Act, 1956 (1 !# 1956), "he a y .(i+ate C!m.a y is "!) d ). a#te( the c!mme ceme t !# this Act, a d a y tax assessed ! the c!m.a y ) de( this Act #!( a y .e(i!d, "hethe( be#!(e !( i the c!)(se !# !( a#te( its li/)idati! , ca !t be (ec!+e(ed, the , e+e(y .e(s! "h! "as a di(ect!( !# the .(i+ate c!m.a y at a y time d)(i 5 the .e(i!d #!( "hich the tax is d)e shall be @!i tly a d se+e(ally liable #!( the .ayme t !# s)ch tax ) less he .(!+es that the ! 1(ec!+e(y ca !t be att(ib)ted t! a y 5(!ss e5lect, mis#easa ce !( b(each !# d)ty ! his .a(t i (elati! t! the a##ai(s !# the c!m.a y.

CHAPTER 9I
A)thority to !ettle di!&)te! in o)r!e o$ inter/State trade or ommer e
19 Central Sale! Tax A&&ellate A)thority

(1) The Ce t(al *!+e( me t shall c! stit)te by !ti#icati! i the O##icial *a-ette, a A)th!(ity t! settle i te(12tate dis.)tes #alli 5 ) de( secti! 6A (ead "ith secti! 9 !# this Act, t! be 4 !" as 6the Ce t(al 2ales Tax A..ellate A)th!(ity (he(ei a#te( (e#e((ed t! as the A)th!(ity)7. (2) The A)th!(ity shall c! sist !# the #!ll!"i 5 Gembe(s a..!i ted by the Ce t(al *!+e( me t, amelyB1 (a) a Chai(ma , "h! is a (eti(ed F)d5e !# the 2).(eme C!)(t, !( a (eti(ed Chie# F)stice !# a 8i5h C!)(t3 (b) a !##ice( !# the I dia Ie5al 2e(+ice "h! is, !( is /)ali#ied t! be, a Additi! al 2ec(eta(y t! the *!+e( me t !# I dia3 a d (c) a !##ice( !# a 2tate *!+e( me t !t bel!" the (a 4 !# 2ec(eta(y !( a !##ice( !# the Ce t(al *!+e( me t !t bel!" the (a 4 !# Additi! al 2ec(eta(y, "h! is a ex.e(t i sales tax matte(s. (2A) N!t"ithsta di 5 a ythi 5 c! tai ed i s)b1secti! (2), the Chai(ma !( a Gembe( h!ldi 5 a .!st as s)ch i the a)th!(ity #!( Ad+a ce =)li 5s a..!i ted ) de( cla)se (a) !( cla)se (c), as the case may be, !# s)b1secti! (2) !# secti! 2451O !# the I c!me1tax Act, 1961 (4' !# 1961) may, i additi! t! his bei 5 the Chai(ma !( a Gembe( !# that a)th!(ity, be a..!i ted as the Chai(ma !( a Gembe(, as the case may be, !# the a)th!(ity ) de( this Act. (') The sala(ies a d all!"a ces .ayable t!, a d the te(ms a d c! diti! s !#

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se(+ice !# the Chai(ma a d Gembe(s shall be s)ch as may be .(esc(ibed. (4) The Ce t(al *!+e( me t shall .(!+ide the A)th!(ity "ith s)ch !##ice(s a d sta## as may be ecessa(y #!( the e##icie t exe(cise !# the .!"e(s !# the A)th!(ity ) de( this Act. 19A 9a an ie!, et 4, not to in,alidate &ro eedin*! N! .(!ceedi 5 be#!(e the a)th!(ity shall be /)esti! ed !( shall be i +alid ! the 5(!) d me(ely !# the existe t !# a y +aca cy !( de#ect i the c! stit)ti! !# the a)th!(ity. "7 A&&eal! (1) The .(!+isi! s !# this cha.te( shall a..ly t! a..eals #iled by a y a55(ie+ed .e(s! a5ai st a y !(de( !# the hi5hest a..ellate a)th!(ity !# a 2tate, made ) de( secti! 6A (ead "ith secti! 9. 9x.la ati! . 0 F!( the .)(.!ses !# this secti! a d secti! s 21, 22 a d 25 6hi5hest a..ellate a)th!(ity !# a 2tate7 mea s a y a)th!(ity !( T(ib) al !( c!)(t (exce.t the 8i5h C!)(t) established !( c! stit)ted ) de( the *e e(al 2ales Tax Ia" !# a 2tate, by "hate+e( ame called. (2) N!t"ithsta di 5 a ythi 5 c! tai ed i the 5e e(al sales tax la" !# a 2tate, the a)th!(ity shall ad@)dicate a a..eal #iled ) de( s)b1secti! (1). (') A a..eal ) de( s)b1secti! (1) may be #iled "ithi i ety days #(!m the date ! "hich the !(de( (e#e((ed t! i that s)b1secti! is se(+ed ! a y a55(ie+ed .e(s! B <=O>I?9? that the a)th!(ity may e te(tai a y a..eal a#te( the ex.i(y !# the said .e(i!d !# i ety days, b)t !t late( tha ! e h) d(ed a d #i#ty days #(!m the date !# s)ch se(+ice, i# it is satis#ied that the a..ella t "as .(e+e ted by s)##icie t ca)se #(!m #ili 5 the a..eal i time B <=O>I?9? FD=T89= that the a)th!(ity may e te(tai a y a..eal #(!m a a55(ie+ed .e(s! "ithi sixty days #(!m the c!mme ceme t !# the Ce t(al 2ales Tax (Ame dme t) Act, 2::5, "he(e s)ch a55(ie+ed .e(s! had the (i5ht t! #ile a a..eal a5ai st the !(de( !# the hi5hest a..ellate a)th!(ity !# the 2tate ) de( s)b1secti! (1) as it st!!d immediately be#!(e the c!mme ceme t !# the said Act, b)t has !t a+ailed !# the (i5ht t! #ile the a..eal d)(i 5 the .e(i!d c!mme ci 5 ! a d #(!m the '(d day !# ?ecembe(, 2::1 a d e di 5 "ith the 16th day !# Ga(ch, 2::5. (4) The a..licati! shall be made i /)ad().licate a d be acc!m.a ied by a #ee !# #i+e th!)sa d ().ees. "1 Pro ed)re on re ei&t o$ a&&li ation (1) O (ecei.t !# a a..eal, the A)th!(ity shall ca)se a c!.y the(e!# t! be #!("a(ded t! the assessi 5 a)th!(ity c! ce( ed as "ell as t! each 2tate *!+e( me t c! ce( ed "ith the a..eal a d t! call ).! them t! #)( ish the (ele+a t (ec!(dsB <=O>I?9? that s)ch (ec!(ds shall, as s!! as .!ssible, be (et)( ed t! the assessi 5 a)th!(ity !( s)ch 2tate *!+e( me t c! ce( ed, as the case may be. (2) The A)th!(ity shall ad@)dicate a d decide ).! the a..eal #iled a5ai st a

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!(de( !# the hi5hest a..ellate a)th!(ity. (') The A)th!(ity, a#te( exami i 5 the a..eal a d the (ec!(ds called #!(, by !(de(, eithe( all!" !( (e@ect the a..eal B <=O>I?9? that ! a..eal shall be (e@ected ) less a !..!(t) ity has bee 5i+e t! the a..ella t !# bei 5 hea(d i .e(s! !( th(!)5h a d)ly a)th!(ised (e.(ese tati+e, a d als! t! each 2tate *!+e( me t c! ce( ed "ith the a..eal !# bei 5 hea(d.B <=O>I?9? FD=T89= that "hethe( a a..eal is (e@ected !( acce.ted, (eas! s #!( s)ch (e@ecti! !( acce.ta ce shall be 5i+e i the !(de(. (4) The A)th!(ity shall ma4e a e dea+!)( t! .(! !) ce its !(de( i "(iti 5 "ithi six m! ths !# the (ecei.t !# the a..eal. (5) A c!.y !# e+e(y !(de( made ) de( s)b1secti! (') shall be se t t! the a..ella t, assessi 5 a)th!(ity, (es.! de t a d hi5hest a..ellate a)th!(ity !# the 2tate *!+e( me t c! ce( ed. "" Po+er! o$ the A)thority (1) The A)th!(ity shall ha+e the same .!"e(s as a(e +ested i a c!)(t ) de( the C!de !# Ci+il <(!ced)(e, 19:C (5 !# 19:C), "hile t(yi 5 a s)it i (es.ect !# the #!ll!"i 5 matte(s, amelyB1 (a) e #!(ci 5 the atte da ce !# a y .e(s! , exami i 5 him ! !ath !( a##i(mati! 3 (b) c!m.elli 5 the .(!d)cti! !# acc!) ts a d d!c)me ts3 (c) iss)i 5 c!mmissi! #!( the exami ati! !# "it esses3 (d) the (ece.ti! !# e+ide ce ! a##ida+its3 (e) a y !the( matte( "hich may be .(esc(ibed. (1A) The a)th!(ity may 5(a t stay !# the !.e(ati! !# the !(de( !# the hi5hest a..ellate a)th!(ity a5ai st "hich the a..eal is #iled be#!(e it !( !(de( the .(e1de.!sit !# the tax be#!(e e te(tai i 5 the a..eal a d "hile 5(a ti 5 s)ch stay !( ma4i 5 s)ch !(de( #!( the .(e1de.!sit !# the tax, the a)th!(ity shall ha+e (e5a(d, i# the assessee has made .(e1de.!sit !# the tax ) de( the *e e(al 2ales Tax Ia" !# the 2tate c! ce( ed, t! s)ch .(e1de.!sit !( .ass s)ch a..(!.(iate !(de( as it may deem #it. (2) 9+e(y .(!ceedi 5 be#!(e the A)th!(ity shall be deemed t! be a @)dicial .(!ceedi 5 "ithi the mea i 5 !# secti! s 19' a d 22C !# the I dia <e al C!de (45 !# 1C6:) a d the A)th!(ity shall be deemed t! be a ci+il c!)(t #!( the .)(.!ses !# secti! 195 a d Cha.te( KK>I !# the C!de !# C(imi al <(!ced)(e, 197' (2 !# 1974). "0 Pro ed)re o$ A)thority The A)th!(ity shall, s)b@ect t! the .(!+isi! s !# this Cha.te(, ha+e .!"e( t! (e5)late its !" .(!ced)(e i all matte(s, i cl)di 5 stay !# (ec!+e(y !# a y dema d a(isi 5 !)t !# the exe(cise !# .!"e(s ) de( this Act.

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"2 A)thority $or ad,an e r)lin*! to $)n tion a! A)thority )nder thi! A t (1) N!t"ithsta di 5 a ythi 5 c! tai ed i a y !the( la" #!( the time bei 5 i #!(ce a d i secti! 19 !# this Act, the A)th!(ity #!( Ad+a ce =)li 5s c! stit)ted ) de( secti! 2451O !# the I c!me1Tax Act, 1961 (4' !# 1961) shall be !ti#ied by the Ce t(al *!+e( me t i the O##icial *a-ette, "ith s)ch m!di#icati! s as may be ecessa(y, t! ma4e its c!m.!siti! i c! #!(mity "ith secti! 19 !# this Act, as the A)th!(ity ) de( this Act till s)ch time a A)th!(ity is c! stit)ted ) de( that secti! . (2) O a d #(!m the date !# the c! stit)ti! !# the A)th!(ity i acc!(da ce "ith the .(!+isi! s !# secti! 19 !# this Act, the .(!ceedi 5s .e di 5 "ith the A)th!(ity #!( Ad+a ce =)li 5s shall sta d t(a s#e((ed t! the A)th!(ity c! stit)ted ) de( that secti! #(!m the sta5e at "hich s)ch .(!ceedi 5s st!!d be#!(e the date !# c! stit)ti! !# the said A)th!(ity. "5 Tran!$er o$ &endin* &ro eedin*!

(1) O a d #(!m the c!mme ceme t !# the Ce t(al 2ales Tax (Ame dme t) Act, 2::5, all a..eals (exce.t a..eals a5ai st !(de(s !# the hi5hest a..ellate a)th!(ity !# the 2tate) .e di 5 be#!(e the a)th!(ity !ti#ied ) de( s)b1secti! (1) !# secti! 24 shall sta d t(a s#e((ed t!5ethe( "ith the (ec!(ds the(e!# t! the hi5hest a..ellate a)th!(ity !# the c! ce( ed 2tate. (2) 2)ch hi5hest a..ellate a)th!(ity !# the 2tate t! "hich s)ch a..eal has bee t(a s#e((ed ) de( s)b1secti! (1) ! (ecei.t !# s)ch (ec!(ds shall .(!ceed t! deal "ith s)ch a..eal s! #a( as may be i the same ma e( as i the case !# a a..eal #iled be#!(e s)ch hi5hest a..ellate a)th!(ity !# the 2tate acc!(di 5 t! the 5e e(al sales tax la" !# the a..(!.(iate 2tate, #(!m the sta5e "hich "as (eached be#!(e s)ch t(a s#e( !( #(!m a y ea(lie( sta5e !( de !+! as s)ch hi5hest a..ellate a)th!(ity !# the 2tate may deem #it B <=O>I?9? that "he(e the hi5hest a..ellate a)th!(ity #i ds that the a..ella t has !t a+ailed !# the !..!(t) ity !# #ili 5 #i(st a..eal be#!(e a..ellate a)th!(ity, s)ch case shall be #!("a(ded t! s)ch a)th!(ity. "6 A&&li a(ility o$ order &a!!ed

A !(de( .assed by the A)th!(ity ) de( this Cha.te( shall be bi di 5 ! each 2tate *!+e( me t c! ce( ed, the assessi 5 a)th!(ities a d !the( a)th!(ities c(eated by !( ) de( a y la" (elati 5 t! 5e e(al sales tax, i #!(ce #!( the time bei 5 i a y 2tate L%%%M.

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