The Kerala General Sales Tax Act, 1963 (No.15 of 1963)

36 THE KERALA GENERAL SALES TAX ACT, 1963 (Act 15 of 1963) CONTEN1S Preamble. Sectiom. CHAPTER I Preli:minary I. Short title, extent and commencement. 2. Definition~. CHAPTER II Authorities and Appellate Tribunal 3. Sale~ taJo.. authorities. 4. Appellate Tribunal. III CHAPTER Incidence and Levy of Tax 5. Levy of tax on sale or purchase of goods. 6. Tax under this Act to be in addit1on to tax under Central Act 74 of 1956 or any othe1 law. 7. Payment of tax at compounded rates. 8. Stage of levy of taxes in respect of imported and exported goods. 9. ExemptiOn from tax. I 0. Power of Government to grant exemptiOn and reduction in rate of tax. II. L1ab1hty to tax of persons not observmg restnct10ns and condi I tiOns pt·escl!bed under sectton 9 or noufied under sectiOn 10. I 12. Burden of proof. ~ CHAPTER IV Registration and Permit 13. Regtstration of dealers. 14. Procedmc for rcgtstlation. 15. Issue of permits. 37 v CIIAPIER Assessment, Collection and Penalty I G. A~sessment of tax. 17. Procedure to be followed by the asses~ing authonty. ~ 18. ProvisiOnal asse~sment. o!.9. Asses~ment of escaped turnover. 20. A~sessment of legal teprcsentatlVes. 21. Liabthty of firms. · 22. Collectwn of tax by dealers. 23. Payment and recovery of tax. 24. Recovery of penalty. 25. Fw ther mode of recovet y. 26. Recovct y of tall. when business i~ trd.nsfet red. CHAPTER VI Inspection of Business places and Accounts and Establishment of Check Posts 27. Mamtenance of true d.nd correct accounts by dealers. 28. Powets to order productiOn of accounts and powers of entry, mspection, etc. 29. E~tabli~hment of check posts and impection of goods in transit. 30. Regulatton of tramport of notified good~. 31. Possession and submi~sion of certain recmds by owners', etc , of vehicles and vessels. 32. Forwarding agency, etc., to submtt t eturns. 33. Banks to submit returns. VII CHAPTER Appeals, Revisions and Refunds 34. Appeals to the Appellate Assistant Commi~~wner. 35. Powers of revision of the Deputy Commissioner ~uo motu. 36. Power~ of revi~ton of Deputy Commi~~wnet Oil apphcatwn. 37. Po wets of 1 eviswn of the Board of Revenue ~uo motu. 38. Powers of ti!Vt~ion of the Bo~ard of Revenue on apphcd.tton 39. Appeal to the Appellate Tnbunal. 40. Appeal to the H1gh Court. 41. Revision by the High Court. 42. Appeals, petitions and applications to the H1gh Court to be . heard by a Bench of not less than two Judges. 38 43. Powet to recttfy any enor apparent on the face of the recot d. 44. Refund~. 45. Refund or adjustment in certain cases. VIII CHAPTER Offences and renalties 46. Penalty for submittmg untrue return, etc. 47. Composition of offences. 4!.1. Offences by companies. IX CHAPTF.R Miscellaneous 49. Courts not to set astde or modify assessments except as pro- vided m this Act. 50. Assessment, etc., not to be questioned m prosecution. 51. Bar of certam proceedings. 52. Ltmttatton for certain suits and prosecutions. 53. Power to summon witnesses and cause production of docu ments. j4. Prohibition of disclosure of particulars produced before sales tax authonties. 55. Persons entttled to appear before authority. 56. Sale or purcha~e deemed to have taken place inside the Std.te in certain cases. 57. Power to make rules. 58. Power to amend Schedules. 59. Certain transactiOns deemed to be first sale. 60. Power to remove dtfficulties. 61. Repeal. The Fmt Schedule. The Second Schedule. The Tim cl Schedule. 39 ACT 15 OF 1963 "' THE KERALA GENERAL SALES TAX ACT, 1963 An Act to consoltdate a11d amend the law rclatzng to the leuy of a general tax on th~ sale 01 purchase of goods 111 the State of Kcrala. Preamblc.-\VHEREAS it is expedtent to consohdate and amend the law relatmg to the levy of a genet al tax on the sale or purchase of goods m the State of Kerala ; BE tt enacted in the Fourteenth Year of the Republic of Ind1a as follows:- I CHAP1ER Preliminary I. Sholl tztlc, CA/ent and commencement.-(1} Thi:, Act may be calletl the Ketala General Sales Tax Act, 1963. (2) It extends to the whole of the State of Kerala. (3) It shall come into force on such date as the Govet nmcnt may, by notification m the Gazette, appoint. 2. Dejzmtwns.-In this Act, unlcs:, the context othrt wtse reqUires,- (z) " Appellate As-,istant Commisswner" means any person appointed to be an Appellate Asststant Commtssioner under section 3 , (zt) "Appellate Tnbuna1 '' means the Appellate Tnbuna1 appointed under sectiOn 4 , (zzz) "assessee" means a person by whom tax or any other sum of money payable under this Act, and mcludes every person in respect IS of whom any proceedings under tlus Act have been taken for the assess ment of tax pavable by htm ; (zv) "assessmg authority" means any person authorised by the Government or by any authority empowered by them to make any assessm~nt under thts Act , (u) "Board of Revenue" means the Board of Revenue consti tuted under the Kerala Board of Revenue Act, 1957 , (vt) "business" includes any trade, commerce or manufactwe 01 any ddventure or concern m the nature of trade, commerce or manu factwe, wtth or without pro'1t motive in such tt ade, commerce, manu facture, adventure 01 concet n ; (vu) "casual tradet " means d person who hds, whether ct~ principal, agent 01 m any othet capactty, occaswnal transactions of a business nature mvolvmg the buymg, sellmg, supply of distributiOn of 7 goods ill the State, whether for cash or fot deferred paymeut, 01 lor commi~~ion, remunerdtion, or other valuable constderatton , * Received the assent of the Governot on the 5th day of March 1963 and pubhshed m the Gazette Extraordmary, dated the 6th Match 1963. ,r)' I 40 (vlll) "dec1let " meam dllY pet son who c.uries on the bmine~s ol buymg, sellmg, ~upplymg ot d1stnbuting good~, d1rectly 01 othet wtse, whether for cash or for deferred payment, or for commissiOn, 1 emune ration or other valuable consideratton and mcludes- (a) the Central Government, a State Government, local autho rity, company, a Hmdu undtvided family, a Marumakkathayam tat wad, a famtly govet ned by the Ketala Nambudin Act, I 958, an ~I Aliya~c1nthana family, a firm, a society, a club or an association whtch carnes ou ~uch busme~s ; (b) d. ca~ual tt auer , (c) a comnussion agent, a btoket or a del credere agent, or an auctwnecr or any other mercantile agent, by whatevet name caJied, who carnes on the busmess of buying, selltng, supplymg or dtstnbutmg good~ on behalf of any pt incipal , (d) ,1 non-re~tdent dealer or an agent of a non-restdeut dealet, or a Ioc.d IH auch of a firm ot company or as~ociatton ~ttuateu outstde the State ; (c) a persou who sells goods produceJ by him by manufacture, agnculture, horticulture or otherwi~e. E\plauatwn.-A soctety (111cluding a co-operattve society), club 01 f11 m 01 an assoctatton whtch, whether or not m the course of busmess, buys, sells, suppltes, or distnbutes goods from or to tts membets for cash, or for deferred payment, or for commtsswn, remuneratwn or other valuable COnstderattOn, shall be deemed to ue a dealer for the purposes of thts Act. ( 1.\) " declared good~ ·· means goods declared by section 14 of the Centtal Sales Tax Act, I 956 (Central Act 74 of 1956), to be of ~ i special un pot tdnce in m tct-Sta te trade or com met ce , I (A) " Deputy Commtssioner " means any person appomted to be a Deputy Commissioner of Sales Tax under sectton 3; ~ (xt) '' food grams " means paddy, nee, wheat, maize, jowat, ~ bajra, barley and ragt and includes such other articles as the Govern ) ment may, by nottficatwn in the Gazette, spectfy as such , (w) "goods" means all kinds of movable property (other than I I newspapers, actiOnable clatms, electnetty, stocks and shares and i I secunttes) and mcludes ltve-stock, all matet ials, commodtttes, and i arttcles (mcluGimg those to be· used in the fittmg out, tmprovement or repatr of movable property), and all growmg crops, grass or things I attached to, or formmg part of, the land which are agreed to be severed before sale 01 under the contract of sale; ( (xlll) "Inspectmg Asst~tant CommtSstoner" means any per~on { appomted to be au Iuspectmg Asststant Commtsstoner of Sales Tax undet ~ect10n 3, (xw) "local autho11ty" mea'lS a municipal counctl, a munictpal corporation, c1 townshtp conm1ittee or a panehayat, (Av) "motor sptrit" means any substance which by itself or m admixture wtth other substances tS ordinanly used dtrectly or indtrectly to provtde reasonably effic1ent fuel for automatJve or stationary internal combustiOn engmes and mcludes petrol, dresel oil and other mternal v 41 combustion oils, but does not include kerosene, furnace oil, coal or charcoal; (xvl) "permrt" means a perm1t granted under scct10n 15; (xvtt) "petrol" means dangerous petroleum havmg its flashing point below 24·4 degrees centigrade; · (xviu) "place of business" means any place where a dealer purchases or sells goods and includes- (a ) any warehouse, godown or other place where a dealer stores or processes his goods, (b) any place where a deale1 p10duces or manufacture goods; (c) any place where a dealer keeps his books of account; and (d) in any case where a dealer carnes on business through an agent (by whatever name called), the place of busmess of such agent, (..\t..\) "prescribed" means prescribed by rules made under th1s Act; ( xx) "regrstered dealer" means a dealer reg1stered under this Act; (x..\i) "sale" with all its grammatical variations and cognate expresswns means every transfer of the property in goods by one person to another in the c )Urse of trade or busmess for cash or for deferred payment or other valuable consideration, but does not mclude a mortgage, hypothecation, charge or pledge. Explanation (I) .-A transfer of the property 111 the following goods, namely, tea, coffee, rubber, cardamom or timber, whether in the course of trade or business or otherwrse, for cash or for deferred payment or other valuable consideration, by a person who produce~ the same, shall be deemed to be a sale for the purposes of this Act. Ex,blanatwn (2).-fhe transfer of propel ty mvolved in the supply or distributiOn of goods by a socrety ( includmg a co-operative society), club, firm, or any assocratwn torts members, for cash, or for deferred payment or other valuable consideration, whether or not m the course of business, shall be deemed to be a sale for the purposes of this Act. Explanatzon (3).-A transfer of goods on hrrc-purchase or other instalment system of payment shall, notw1thstandmg the fact that the seller retains the t1tle in the goods as secunty for payment of the price, be deemed to be a sale. E;>.planatzon (4).-(a) The sale or purchase of goods shall be deemed, for the purposes of tillS Act, to have taken place m the State, wherever the contract of sale or purchase mrght have been made, if the goods dre witlun the State,- (z) in the case of specrfic or ascertained goods, at the time the contract of sale or purchasers made, and (n) in the case of unascertamed or future goods, at the time of the1r appropnation to the contract of sale or purchase by the seller or by the purchaser, whether the assent of the other party is prior or subsequent to such appropri ation. r./ ./ 42 (b) Where there is a single contract of sale 01 purcha~e of goods situated at more places than one, the provi~ions of clause (a) shall apply as If there were separate contracts 111 respect of the goods at each of such places. Explanatzon (5).-Notwithstandmg anyth111g to the contrary contained 111 this Act or any other law fo, the tunc be111g m force, two independent sales or purchases shall, for the pu1 poses of this Act, be deemed to have taken place- (a) When the goods are transferred from a principal to his sellmg agent and from the sellmg agent to the purchaser, or (b) when the goods arc transferred from the seller to a buying agent and from the buying agent to Ius principal, If the agent is found either of the cases aforesaid- 111 (t) to have sold the goods at one rate and to have passed on the sale proceeds to his pnncipal at another rate; or (u) to have purchased the goods at one rate and to have passed them on to his principal at another rate, or (m) not to have accounted to his pnncipal for the entire collectwns or deductions made by him in the sales or purchases effected by him on behalf of his principal; or (w) to have acted for a fictitious or non-existent pnncipal, Provided that the deduction or additiOn, as the case may be, ~) of the commission agreed upon and specified m the accounts and .__ ' incidental charges 111curr<."d by the agent which are specified in the I accounts and which the assessing authonty considers legitimate shall not be deemed to be a difference m the rates referred to m sub-clauses : r (t) and (tt) ; l (xx!!) " Sales Tax Officer" mean~ any person appointed to be a Sales Tax Officer undei section 3 ; I i (xxw) " State" means the State of Kerala, (xxw) "tax" means the tax payable under this Act ; (xxv) " taxable turnover " means the turnover on which a dealer shall be hable to pay tax as determined after making such deductiOns ,, from his total turnover and such manner as may be prescnbed, but 111 shall not include the turnover of purchase or sale !11 the course of mtei , I State trade or commerce or in the course of export of the goods out of the tern tory of India or the course of import of the goods mto the Ill territory of India ; .. {uvt) " total turnovei ., means the aggregate turnover in all goods of a dealer at all places of busmess in the State, whether or not the whole or dny portwn of such turnover IS liable to tax, including the turnover of ourchase or sale HI the course of inter.State trade or com \..II merce or in. the course of export of the goods out of the ternto1 y of !:: India or in the course of import of the goods mto the territory of India; (xxvu) "turnover" means the aggregate amount for which goods are either bought or sold, or supplied or d1str1buted, by a dealer, either d1rectly or through another, on Ius own account or on account of others, LI ; I • 43 whether for cash or for deferred payment or other valuable considera tion, provided that the proceeds of the sale by a pe1 son of agricultural or horticultural produce, grown by himself or grown on any land m which he has an interest, whether as owner, usufructuary mortgagee, tenant, or otherwise, shall be excluded f10m h1s turnover. Explanatwn ( l ).-"Agricultural or horticultural produce" shall not include- (t) such produce as has been subjected to any physical, che mical or other process for bemg made fit for consumptiOn, save mere cleaning, gradmg, sortmg, drymg or dehuskmg , (u) tea, coffee, rubber, cardamom or timber. u E>.planatzon (2).-Subject to such conditions and rest! ictions, any, as may be prescribed in this behalf,- (t) the amount for which goods are sold shallmclude any sums charged for anythmg done by the dealer m respect of the goods sold at the tune of, or before, the delivery thereof, (u) any cash or other discount.on the price allowed in respect of any sale and any amount refunded m respect of articles returned by customers shall not be included in the turnover ; and (m) where for accommodatmg a patticular customer, a dealer obtains goods from another dealer and 1mmed1ately d1sposcs of the same to the said customer, the sale in respect of such goods shall be included in tne turnover of the latter dealer but not in that of the former ; (xxvm) "vehicle" includes every wheeled conveyance used for the carriage of goods solely or m additiOn to passengers; (xxzx) " vessel" includes any ship, barge, boat, raft, timber, bamboos or floatmg materials propelled m any manner , (x>.x) " year " means the financial year. CHAP1ER II Authorities and Appellate Tribunal 3. Sales tax authorztzes.-(1) The Board of Revenue shall have and exercise all the powers and shall perfmm all the duties conferred or im posed upon it by or under th1s Act. (2) The Government shall appomt as many Deputy Commis sionet s, Appellate Asststant CommiSSioners, Inspectmg As~tstant Com nussioners, Sales Tax Officers and such other officers as they thmk fit for the purpose of perfm mmg the functiOns respectively assigned to them by or under this Act. Such officer~ shall perform the said functiOns w1thm such local lmuts as the Government 01 any authonty or officer empowered by them 111 tim behalf may assign to them. l ' (3) All officers and pcr~ons employed m the executton of this Act shall ob3erve and follow tilt: orders, instructiOns and directions of the officers superior to them : Provided that no such orders, instructions or directions shall be given so as to interfere w1th the disci etion of the Appellate Assistant Commissioner in the exc1cise of h1s appellate functions. • 44 4. Appellatf T11bunal. -(I) The Go vet nment shall appoint an Appellate Tnbunal consJstmg of a Cha1rman and two other members to perform the functions assigned to the Appellate Tnbunal by or under this Act. The Chairman shall be a person who is or has been a J udicJal Officet not below the rank of a Dt~tnct Judge and the other two members shall possess such qualifications ,ts may be prescribed. (2) Any vacancy in the office of a member of the Appellate Tri bunal shall be filled b}' the Government. (3) (a) The fuuctwns of the Appellate Tribunal may be per fmmed- (z) by a Bench consisting of all the members of the Tri bunal, or (n) by a Bench conststing of two members constituted by the Chairman, or (m) by a Bench consistmg of the Chairman and other member m the event of the office of a membet other than the Chatrman bemg vacant: Provided that, if any case which comes up before a Bench (ofwl11ch the Chaitman is not a member) involves a questton of law, the Bench may, m 1ts dtscretiOn, reserve such case for dcCI~ion by a Bench to be constituted under tillS clause of wluch the Chait man shall be a member. (b) Where an appeal or apphcation is heard by a Bench consisting of all the three mcmbets ol the Tnbunal and the members dtffcr m opmion on any pomt, the pomt shall be dec1ded m accordance with the opmwn of the majonty. (c) Whete an appeal or apphcation is heard by a Bench con sistmg of two members and the members arc dtvtded in their opmion on any pomt, th.e pomt shall be referred for decision to a Bench consist ing of all the members. (4) The Appellate Tnbunal shall, with the previous sanction of the Government, make tegulations conststcnt wtth the provisions of this I I • Act and the rules made thereunder for regulatmg its procedure and the I I dtsposal of its business. (5) The regulations made under sub-section (4) shall be publi· shed in the Gazette. III CIIAP'!ER Incidence and Levy of Tax 5. Levy of tax on sale pw chase of goods.-( l) Every dealer (other 01 than a casual trader or agent of a non-resident dealer) whose total turnover for a yeat ts not less than ten thousand rupees and every aasual tt ader or agent of a non-restdent dealer, whatever be his total Jti tum over for the yeat, shall pay tax on hts taxable tUt nover fur that year,- ( z) 111 the case of goods specified in the First or Second I Schedule, at the rates and only at the points spectfied agamst such goods m the said Schedules, and (u) m the case of )ther goods, at the rate of two per cent, ... .) 45 (2) Every dealer other than a dealer referred to in sub-section ( l) whose total turnover for a year in respect of the goods specified in the First or Second Schedule is not less than two thousand five hundted rupees shall pay tax at the rate and only at the pomt specified agamst the goods in the Ftrst or Second Schedule, as the case may be, on his taxable turnover in that year relatmg to such goods : Provided that where a tax has been levied under sub-section (I) or sub-section (2) m respect of the sale or purchase of goods specifictf in the Second Schedule and such goods are sold in the course of inter State trade or commerce, the tax so levied shall be refunded to such person in such manner and subject to such conditiOns as mliy b<' prescribed. (3) Notwithstanding anything contained in sub-~ection (I) or sub-section (2), the tax payable by a dealer m respect of any sale of the goods mentioned in the Ftrst Schedule by such dealer to another for use by the latter as component part of any other goods mentioned m the c;aid Schedule, which he mtends to manufacture m<;!de the State for sale, shall be at the rate of only one per cent on the taxable turnover relatmg to such sale : Provided that the provistons of this sub-section shall not apply to any sale unless the dealer selling the goods furnishes to the assessing authority in the prescnbed manner a declaration duly filled m and signed by the deale1 to whom the goods are sold contammg the prescri bed particulars in a prescnbed form. (4 ) Notwithstandmg anything con tamed in sub-section (I), every dealer registered under sub-section (3) of section 7 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956), shall whatever be the quantum of his total turnover, pay tax for each year m respect of the sale of the goods with reference to the purchase of whtch he has fur111shed a decla ration under sub-section (4) of section 8 of the aforesaid Central Act at the rate of two per cent of his taxable turnover in respect of the goods other than those specified m the Ftrst or Second Schedule · Provided that this sub-section shall not apply to any dealer m respect of the sale of the goods the purchase of wluch IS !1able to tax under sub-section (I). 6. Tax under this Act to be m addztion to tax under Central Act 74 of 1956 or any other law.-The provisions of this Act relating to taxa tion of successive sales or purchases mside the State, only at a single point or at one or more pomts, shall apply only to sales or purchases Imide the State (other than sales or purchases m the course of mter-State trade or commerce) . and the tax under th1s Act shall be levted m additiOn to any tax levied unde1 the Central Sales Tax Act, I956 (Central Act 74 of I956), or any other law for the time bemg m force. 7. Payment cif tax at comfJounded rates.-( I) Notw1thstandmg any thing contained m sub-sectiOn (I) of sectiOn 5,- ( z) every dealer (other than a dealer in coo ked food including coffee, tea and hke articles served a hotel, restaurant or any other 111 place) whose total turnover in a year is not less than ten thousand v-- 46 rupees but not more than twenty-five thousand rupees may, at his option m~tead of paymg the tax m accordance with the provisions of that aub sectiOn, pay tax at the followmg rates :- Rate of tax (a) Where the total turnover is not less One per cent on than ten thousand rupees but is less the taxable than fifteen thousand rupees turnover. (b) Where the total turnover is not less One and a half than fifteen thousand rupees but IS per cent on not more than t111 enty-five thousand the taxable rupees turnover. ( 11) every dealer m cooked food includmg coffee, tea and like articles served in a hotel, restaurant, or any other place, whose total turnover in respect of such food is not less than twenty thousand rupees but IS not mme than fifty thousand rupees, may, at his option, instead of paymg the tax m accordance with the provisions of that sub-section in respect of the turnover 1e latmg to such food, pay tax at the following rates:- Rs. (a) Where the total turnover is not less than twenty thousand rupees but is less than twenty-five thousand rupees 360 I (b) Wher<· the total turnover is not less than twenty- I I five thousand rupees but is less than thirty ~~~J thousand rupees 480 (c) Where the total turnover is not less than thirty - .-1 I I thousand rupees but is less than forty thousand I I ru~ ~ (d) Where the total turnover is not less than forty thousand rupees but is not more than fifty thousand rupees 720 (2) Any dealer whose estimated total turnover for a year is within the hmlts specified m clause ( z) or clause ( u) of sub-section ( l) may apply to the assessmg authonty to be permitted to pay the tax under this section and on bemg so permitted he shall pay the tax due m advance durmg the year m monthly or other prescribed instalments and for that purpose ~hall submit such returns and in such manner as may I I be pt escribed. The apphcat10n shall be submitted to the assessing authonty withm such time and m such manner as may be prescnbed: I Provided that the asse~sing authority may, for sufficient reasons, condone the delay 111 case of late apphcat10n. (3) It shall be open to the assessing authority to reject any such apphcat10n for permiSSIOn for good and sufficient reasons to be recorded in writmg after givmg the dealer a reasonable opportunity of bemg heard. ( 4) Notwithstanding anythmg contained m clau~e (i) of sub section(!), 1f under any of the other provisiOns of this Act the sale or pU! chase of any goods by a dealer is ~ubject to tax only at a lower rate, the tax payable under the sa1d sub-section on his turnover, in so far as 47 the turnover or any part thereof relates to the sale or purchase of such goods, shall be calculated only at such lower rates. (5) Notwithstanding anything contamed in clause (z) of sub section ( 1) ,- (i) a dealer whose total turnover in a year relates only to goods spectfied in the First or Second Schedule or a ca<;ual trader or agent--of a non-resident dealer shall not be entttled to exerctse the option under the said clause ; and ( u) a dealer whose turnover relates to the goods specified in the First or Second Schedule and also to goods other than those speCified in the satd Schedules shall be entttled to exerctse the optiOn under clause ( z) of sub-section (I) only m respect of the turnover relating to the goods other than those spectfied in the Ftrst or Second Schedule, and m respect of the turnover relating to the goods spectfied m the Ftrst or Second Schedule, he shall be lia 1)le to pay the tax under sectiOn 5. (6) The tax paid under sub-section (2) shall be subject to such adjustments as may be preset ibed on the completion of the final assess ment in the manner prescribed. 8. Stage of :evy of taxes zn respect of zmported and export!d goods. Where in the case of any goods tax 1s leviable at one pomt m a senes of sales or/purchases, mch senes shall,- ,_, ~(~) in the Cdse of goods imported into the State etther from o)ttstde the territory of Indm or from any other State m Indta, be .deemed to commence at the stage of the sale or purchase effected / 1mmedtately after the tmport of such goods; / (b) in the case of goods exported out of the State to any place outside the terntory of Indta or to any other State m Indta, be deemed to conclude at the stage of the sale or purchase effected 1mmedJately before the export of such goods. 9. Exemptionfrom tax.-Subject to such restrictions and conditions as may be prescribed, a dealer who deals m the goods specified in the Thtrd Schedule sha!J not be liable to pay any tax under th1s Act in respect of the sale or purchase of such goods. 10. Power of Government to grant exemptzon and 1educt·on liZ rate of lax.-( l) The Government may, tf they constder 1t necessary m the public intetest, by n_otJficatwn the Gazette, make an exemption, or reduction 111 in rate, in respect of any tax payable under this Act- (z) on the sale or purchase of any specified e-oods or class of goods, at all points or at a specified pomt or pomts in the series of sales or purchases by successiVe dealers, or (!!) by any spec1fied class of persons, in regard to the whole or any part of thetr turnover. (2) Any exemption from tax, or reductiOn m the rate of tax, notified under sub-sect10n ( l) ,- (a) may extend to the whole State or to any specified area or areas therein, (b) may be subject to such restnctions and conditions as may he specified m the notification. (3) The Government may, by notification in the Gazette, cancel or vary any notificatwn Issued under sub-section (1). 11. Lzabzlzty to tax of persons and not observzng restnctzons and conditions prescnbed under sectzon 9 notzjzed under sectiort I 0.-If any restriction or 01 conditwn prescnbed under sect1on 9 or notified under section 10 is contravened or 1s not observed by a dealer, the sales or purchases of such dealer may, With effect from the commencement of theoyear in ~ which such contraventwn or non-observance took place, be assessed to ~,; tax or taxes under the app10priate provisions of this Act as if the provi- swns of sectwn 9 or section l 0, as the case may be, did not apply to such sales or purchases. 12. Burden of proof.-The burden of proving that any transaction of a dealer IS not liable to tax under this Act shall he on such dealer. CHAPTER IV Registration and Permit 13. Regzstratzon of dealers.-( I) Every dealer whose total turnover in any year IS not less than seven thousand five hundred rupees shall, alild any other dealer may, get himself registered under this Act. (2) Notwithstandmg anything con tamed in sub-se<ztion (I), every ded ler carrymg on bus mess m all or any of the goods mentioned 111 the FirSt and the Second Schedules whose total turnover in re~pect of those goods in any year IS not less than two thousand five hundred )._ ;: rupees shall get himself Iegisteied. \ T,I : (3) Notwithstandmg anyth111g contained in sub-section ( 1) or sub- '\ ...... I " ' section (2) ,- ( z) every casual trader, (zz) every dealer registere<;l under sub-section (3) of section 7 of the Central Sales tax Act, 1956 (Central Act 74 of 1956); (m) every dealer residing outside the State, but carrying on business m the State; (zv) every agent of a non-resident dealer; and (v) every commission agent, broker, del credere agent, auctio neer or any other mercantile agent, by whatever name called, who carnes on the business of buying, selling, supplying or distubuting goods on behalf of any pnnCJpal, shall get himself registered under this Act, Irrespective of the quantum of his total turnovei 111 such goods. (4) Nothmg contamed in this section shall apply to any State Government, the Central Government or any local authority. I 4. Procedure for regzstratzon.-( I) An application for registration shall be made to such authonty, in such manner and within such penod as may be prescnbed and shall be accompanied by a fee of ten rupees. (2) If the prescnbed authonty after making such enquiries as it may consider necessary is satisfied that the application is in order and 49 that the particulars furnished therein are correct, it shall register the apphcant and issue to him a certificate in the prescnbed form. (3) Where a dealer has more than one place of business, the registration certificate shall cover all such places of business. The assessing authm ity shall issue cop1es of the reg1strat10n certificate to the dealer for exhibitiOn at each of his places of busmess and the dealer shall pay a fee of five rupees f01 each copy. (4, The prescnbed authority ~hall have power for good and sufficient reasons to demand from any dealer, who has been registered or has apphed for renewal of registration, secunty for the proper pay ment of tax by him for an amount not exceedmg one-half of the tax payable on the turnover of the dealer for the year as estimated by the prescribed authonty or three months' compounded rate in the case of applicants who have opted to pay tax under section 7: Provided that the assessing authority shall have power to demand at any time adqitional security 1f such authority has reason to beheve that the turnover estimated under this sub-sectiOn was too low. (5) A certificate issued under sub-section (2) shall be vahd for a year and shall be renewed from year to year on payment of the fee specified m sub-section (I). (6) A dealer registered under sub-section ( 1) or sub-section (2) of section 13 shall be entitled to have his registration cancelled if he is able to prove to the satisfaction of the prescribed authonty that Ius turnover m each of the two consecutive years Immediately precedmg the application was less than the lim1ts mentioned in the respective sub sectiOns. (7) The prescnbed authority shall have power, for good and sufficient reasons, to cancel, mod1fy or amend any registration cedifi cate issued by it. (8) No application for registration and no renewal under this section shall be refused and no order under sub-section (4) or sub section (7) shall be made, unless the dealer concerned has been given an opportunity of being heard. (9) When a dealer has ceased to do business in any year, and gives notice ol that fact to the prescnbed authonty, he shall not be liable to pay any registration fee from the commencement of the follow ing year unless he resumes business. (10) The dealer shall exhibit the certificate of registration granted under sub-section (2) at the place of busmess mentioned in the certificate. Where the dealer has more than one place of busmess, he shall exhibit the cert1ficate of registration at the prmcipal place of busmess mentioned in the certificate and a copy of such certificate granted under sub-section (3) at every other place of busmess wJthm the State mentioned m the certificate. 15. Issue of permzts.-( l) Every reg1stered dealer who transacts busmess at places other than his registered place or places of busmess 315-4 50 or employs a travelling salesman or representative to transact business as aforesatd, shall obtain a permit Issued under this Act authonsing himself 01, as the case may be, the travelling salesman or represent ative so to do. (2) Tne entire turnover of busmess carried on under the permit shall be included and accounted for by the registered dealer m his accounts and returns and shall be dealt wtth as tf it were the turnover of busmess done by the registered dealer himself at the re gistered place of business. (3) Every permit holder shall carry the penr.it wtth him and shall produce it on demand by any officer of the Sales Tax Depart ment empowered by the Government m thts behalf. He shall mam tain and produce on demand to any such officer a true and coirect account oJ all the transactions carried on under the perm1t and also a stock-book showmg the quantities of goods held by him, the quan tities disposed of from day to day by sale or otherwise and the balance on hand at the end of each day. (4) An application for the pt'rmit referred to in sub-section (I) shall be made to such authority, in such manner and withm such period as may be prescribed and shall be accompanied by such fee not exceeding ten rupees as may be prescnbed. Exp!anatzon.-A separate application with a separate fee shall be necessary for the registered dealer and for each travelling salesman or representative employed by htm. (5) If the prescribed authority is satisfied that the appl•cation is in order, and the particulars furnished therein are correct, it shall Issue the permit in the prescribed form. ; . I l (6) A permit issued under sub-section (5) shall be valid for : a ¥ear and shall be renewed from year to year on receipt of an I I J I application from the registered dealer accompanied by such fee not exceedmg ten rupees as may be prescribed. (7) The ptescnbed authority shall cancel a permit- (a; on requistion made in writmg by the registered dealer, or (b) on the cancellation of the certificate of registration. (8) The prescnbed authority may cancel a permit tf the permit huldet has contravened any of the terms or condttwns of the permit or any of the provisions of this Act or the rules made there under. (9) r\o pet mtt shall be cancelled under sub-section (8) unless the person affected has been gtven a reasonable opportunity of bemg heard. v CHAPTER A<isessment, Collection and Penalty 16. Assessment tJj ta.\.-(1) The tax under tht~ Act shall be d~<;essed, levied and collected m such manner as may he prescnbed. ! . '-- 51 (2) In the case of a dealer with more than one place of busi~ ness, the aggregate turnover of all such places of busmess shall be taken as the turnover of the business for the purposes of this Act. (3) Notwithstanding anything contamed in sub-section (2) or any of the other proviSions of this Act, the Board of Revenue may, with the consent of the dealer, treat each of s11ch places of business as a separate unit for the purposes of levy, assessment and collec tion of tax and thereupo'n all the provisions of this Act regardmg registration, filing of return~, assessment and collection of tax shall apply as If each of such place~ of busine~s IS a sepat ate unit. (4) Where any order IS passed by the Board of Revenue under sub-sectiOn (3), the turnover of each of such places of busine~s shall be l1able to tax respective of such turnover bemg below the mmimum 11 turnover mentwned m section 5: Provided that the total turnover in respect of all such places of bu~iness together is not less than the minimum turnover mentioned m sect•on 5. 17 . Procedure to be followed by the arsesszng authonty.- ( l) Every dealer who IS liable to pay tax under this Act shall submit such return or returns relating to his turnover in such manner and Within such penod as may be prescnbed. (2) Ifthe assessing authority is satisfied that any return sub mitted under sub-section ( 1) is correct and complete, it ~hall assess the dealer on the basis thereof. (3) If no return is submitted by the dealer under sub-sectiOn ( 1) within the prescnbed penod, or tf the return submitted by him appears to the assessmg authority to be incorrect or mcomplete, the assessmg authonty shall, after making such enquiry as it may con sider necessary and after taking into account all relevant matenals gather'ed by it, assess the dealer to the best of its judgment: Provided that before taking action under thts sub-section the dealer shall be gtven a reasonable opportum ty of bemg heard and, where a return has been submitted, to prove the correctness or com pleteness of such return. 18. Provzszonal assefSment.-(l) The tax for each year payable under any of the provistons of this Act may be assessed, levied and collected 1n advance dunng the year m monthly or other prescribed imtalments, and for that purpose a dealer may be required to furmsh withm the prescnbed penod either an advance esumate of his turnover fot the year, ot such penod1cal returns of the actual tllrnover as may be prescnbed. The assessing authority may determme the amount of - tax payable m respect of any penod and on such assessment the dealer shall pay the sum demanded within such t1me as may be fixed by such "' authority. (2) If no return is submttted by the dealer under sub-section ( i) within the prescnbed period, or if the return submitted by him appears to the assessing authonty to be incorrect or incomplete, the assessing authonty may dete;mme the amount of tax payable by the dealer m accordance w1th the pmvis10ns ofsub-sectJOn (3) of section 17. :it5-4,\ 52 (3) If the assessing authority has reason to believe that the provisional asses>ment made by it for any period was based on too low a turnover 01 was made at too low a rate or was based on too h1gh a turnover or was made at too high a rate, it may enhance or reduce, as the case may be, such proviswnal assessment: Provided that before making an enhancement of the provisional assessment as aforesa1d, the assessmg authority ~hall, except where such f'nhancement 1s based on the turnover finally determmcd for the prece ding year, g1ve a Ieasonable opportunity to the dealer to show cause agamst such enhancement and make such enquiry as 1t may consider n eccssa 1y . ( 4) The assessment, levy and collectron of tax under this 'ection shall be subject to such adjustment as may be prescribed on the com pletion of final assessment in the manner prescribed. 19. Assessment of escaped tumover .-(I) Where for any rea,on the whole or any pa1 t of the turnover of busmess of a dealer has escaped assessment to tax in any year or has been under-assessed or has been asse 'sed at a rate lower than the rate at wh1ch 1t is assessable, or any dedu ction has been wrongly made therefrom, the assessing autho11ty may, at any time w1thin four years from the exp1ry of the year to wh1ch the tax relates, proceed to determine to the best of its judgment the turnover which has escaped assessment to tax or has been under-assessed or has been a~sessed at a rate lower than the rate at which it 1s assessable or the deductiOn that has been wrongly made and assess the tax payable on :tl such turnover after issuing a notice on the dealer and after makmg such enqmry as 1t may consider necessary : Provided that before makmg an assessment under this sub-section the dealer shall be given a 1easonab1e opportunity of being heard. I (2) In makmg an assessment under sub-sectwn (I), the assessing I authority may, 1f it 1s satisfied that the escape from assessment 1' due to wJiful non-d1sclo5ure of assessable turnover by the dealer, direct the I dealer to pay, in additwn to the tax assessed under sub-sect10n (I), a I i penalty not exceedmg one and a half t1mes the tax so assessed : I : I !I Provided that no penalty under tl11S sub-section shall be Imposed unless the deale1 affected has had a reasonable opportumty of showing , I cause against such Impos1t10n. I 'I (3) The powers under sub-sectiOn (I) may be exerc1sed bv the ' \ assessmg auth011ty even though the 01 igmal 01 der of assessment, 1f any, I passed m tile matter, has been the subject matter of an appeal or I I revision. ~ (4) In computmg the penod of limllatlon for the purposes of I this sectwn, the time durmg wh1ch the proceedmgs for assessment remained stayed under the mders. of a civJ! court or other competent authority shall be excluded. 20. Assessment rif legal representatives.-Vvhere a dealer dies, his execu tor, admm1St1ator, or other legal rep1esentatlve shall be deemed to be the dealer for the purposes of this Act, and the p10visions of thi~ Act shall apply to him m 1espect of the busmess of the sa1d deceased dealer, I I L 53 provided that, in respect of any tax, fee or other amount asse~sccl ..t~ payable by any such dealer or levted on htm or any tax, fee or other amount which would have been payable by h1m under th1s Act 1f he had not d1ed, the executor, admmtstrator or other legal representa tive shall be liable only to the extent of the assets of the deceased in his hands. 21. Lzabzlzty off zrms.-( l) Where any firm IS liable to pay any tax, fee or other amount under this Act, the firm and each of the pa1 t ners of the firm shall be jomtly and severally hable for such payment. (2) Where a partner of a firm hablc to pay any tax, fcc or other amount under th1s Act retires, he shall, notwithstandmg any contract to the contrary, be liable to pay the tax, fee or other amount remaining . unpaid at the tunc of h1s rettrement and any tax, fee or other amount due up to the date of retirement, though unassessed. 22. Collcctwn of La:>.. by dealers.-( I) No per~on who IS not a 1e gt stet ed dealer shall collect any amount by way of tax under th1s Act ; nm shall a egtstered dealer make any such collection except m accord 1 ance with such condttions and restnctwns, 1f any, as may be pt escri bed: Provided that nothing cotamed in thts sub-section shall apply to the Central Government, a State Government or a local authonty. (2) If any dealer or person who is not liable 'to tax under th1s Act collects any amount purportmg to be by way of tax, such dealer or person shall, unless 1t IS established to the sat1sfact10n of the assessing authonty that the amount so collected has been refunded to the person '"'ho had ongmally patd the amount, pay over to the Govemmcnt w1thin such time and m such manner as may be prescribed all amounts so collected. (3) If any dealer or person collects tax on transactions not !table to tax under th1s Act or m exces~ of the tax leviable under th1s Act, such dealer or person shall, unless 1t is estabhshed to the satisfactiOn of the assessing authority that the tax so collected has been refunded to the person who had onginally pa1d the tax, pay over to the Govern ment, in addition to the tax payable, the amount so collected, withm such time and in such manner as may be prescnbed. (4) A local authority wh1ch collects any amount by way of tax under this Act shall pay over to the Government the amount so collect ed, and if any such amount 1s not so paid the Collector of the d1st11ct concerned shall, on requis1t1on by the asse~smg authollty, make an order directing the person having the custody of the fund'> of the local authority to pay 1t in puonty to any other charge against such fund e:-..ccpt charges for the service of authm ised loans; and such pe1 son shall be bound to comply w1th such order. 23. Payment and recovery of ta;..-( 1) The tax assessed or an)( other ~). amount demanded under th1s Act shall be paid in such manner and 111 ' such instalments, if any, and within such time, as may be specified in the notice of demand, not bemg less than twenty-one days from the date of service of the not1ce. If default is made in paying according to the notice of demand, the whole of the amount outstandmg on the 54 date of the default shall become Immediately due and shall be a charge on the properties of the person or persons hable to pay the tax or ether amount under thiS Act : Provided that the time-hmit of twenty-one days for a notice under this sub-sectiOn shall not apply to casual traders. (2) Any tax assessed or any other amount due under this Act from a dealer or other person may, without prejudice to any other mode of recovery, be recovered- (a) as if it were an a1 rear of land revenue ; (b) on application to any Magistrate, by such MagJ~tlate as 1f it were a fine 1mpo~ed by b1m : Provided that no proceeding> for such recove1 y shall be taken 01 contmucd as long as such deale! 01 other person has, 1e gard to the 111 payment of such tax or other amount, as the case may be, complied with an order by any of the authont1es to whom he has appealed or apphed for revision, under the prov1£10ns of th1s Act. (3) If the tall. assessed or any other amount due unde1 ti11S Act or any mstalment the1eof is not pa1d by any dealer or other person Withm the tune specified therefor in the notice of demand or 111 the order permittmg payment 111 mstalments or Within the time allowed for its payment by the appellate or revJsmg authority, the dealer or othe1 person shall pay, by way of penalty, 111 the manner prescnbed, m addition to the amount due a sum equal to- _Lj,ll (a) half per cent of ~uch amount for each month or part thereof J-:: f01 the first three months after the date specified for its payment, I (b) one per cent of such amount for each month or part thereof ~ubsequent to the first tluee months aforesaid. 2 t Recovery of penalry.-Penalty payable under this Act ~hall be deemed to be tax unde1 th1~ Act for the pm pose of collection and 1e . covery, and shall be recoverable Without prejudice to the imt1tution of any proceedmg for an offence under this Act. 25. Further mode of recovery.-( I) The assessmg authority may, at any time or from time to t1me, by notice m writmg (a copy of wh1ch 1 shall be forwarded to the dealer at his last address known to the assess- 111g authcnty), requne any officer of the Government or any local autho11ty, company, fi11n, society or association of per~ons from whom money 1s due or may IJecome due to the dealer, or any officer of the Gove111ment 01 any loc:al authonty, company, firm, society or associa tion of persom who hold~ 01 may subsequently hold money for 01 on :~ account of the dealer, to pay to the assess111g authonty, either fm th , wJth If the money has become due or IS 'iO held, or With111 the hme ' ' :-.pecified Jll the notice (not be111g before the money becomes due 01 is I held), so much of the money a~ IS sufficient to pay the amount due by the : i ~~:; dealer 111 respect of arrears of tax,· fee or penalty or the whole of the • ' j money when 1t 1s equal to or less than the arrears of tax, fee or penalty.

( (2) The assessmg authority may, at any time or from time to time, amend or revoke any such notice or extend the time for making any payment m pursuance of the notice. '-- 7 ' 55 (3) Any officer of the Government or any local authority, company, firm. society or association of persons making any payment in compliance With a notice under th1s section shall be deemed to have made the payment under the authority of the dealer, and the receipt of the assessing authonty shall con stitute a good and sufficient discharge of the hab1hty of such officer of the Government or such local authonty, company, firm, society or association of persons to the extent of the amount referred to the rece1pt. 111 (4) Any local authority, company, firm, society or association of persons makmg any payment to the deale! after rece1pt of the notice referred to in this section shall be liable to the assessing authority to the e\.tent of the payment made or to the extent of the liability of the dealer fm the amount due under this Act, whichever is lcs~. (5) Where any local authority, company, firm, society or asso ciation of persons to wh1ch a notice under this sectwn IS sent objects to 1t on the ground that the sum demanded or any part thereof IS not due by 1t to the dealer, or that 1t does not hold any money for or on account of the dealer, then, nothmg con tamed in th1s sectiOn shall be deemed to require such local authority, company, firm, society or associatiOn of pe1sons to pay the sum demanded or any part thereof of the assessing authority. (6) Any amount which a local authority, company, firm, society or association of persons is required to pay to the assessing authority or for which it is liable to the assessing authority under tlus section shall, if it remams unpaid, be a charge on the properties of the said local authoritv, company, firm, society or association of persons, as the case may be, and may be recovered as if it were an an ear of land revenue. E>..planatwn.-For the purpo~es of this section, the amount due to a deale1 or money held for or on account of a dealer by any officer of the Government or any local authority, company, firm, society or asso· ciation of persons shall be computed after taking mto account such claims, if any, as may have fallen due for payment by such dealer to such officer or such local authonty, company, firm, society or associa tion of persons, as the case may be, and as may be lawfully subsisting. 26. Recovery if ta>. when busuzess zs l1ansjcrrcd.-\Vhere the owner shi:.p of the business of a dealer liable to pay tax or other amount is transferred, any tax or other amount payable under this Act in respect of such bussiness and remammg unpaid at the time of the transfer and any tax or other amount due up to the date of the transfer, though unassessed, m<~y, Without prejudice to any action that may be taken for 1ts recovery from the transfe10r, be recovered from the t1ansfe1ee "V as if he were the dealer liable to pay such tax or other amount: Provided that the recovery from the transferee of the arrears of tax due for the period prior to the date of the transfer shall be limited to the value of the assets he obtained by transfer. CHAPTER VI inspection of business places and accounts and establishment of check posts 27. !11azntenance of true and correct accounts by dcalers.-Every person Iegistered under this Act, every dealer liable to get himself registered under this Act and every other dealer who is required so to do by the prescnbed authonty by notice served m the prescribed manner, shall k<'ep and mamtain true and correct accounts and such other records a~ may be prescnbed m Malayalam, Tamil, Kannada, GuJarathi or Enghsh, relatmg to his busines, showing such particulars as may be prescnbed. Dlflerent parucula1s may be prescnbed for dtff1!1ent classes of dealers. 28. PoweiS to order productton of accounts and powers of entry, znspectwll, etc.-( I) Any officer empowered by the Government m tillS behalf may for the purpo~es of th1s Act, requ1re any dealer ca1rying on busmess in any kind of goods to produce before h1m the accounts, reg1sters and other documents and to furnish any other mformation relating to his busmess, and such dealer shall produce his accounts, reg1sters and other documents and shall furnish any such information m accordance with such requisition. (2) All accounts, registe1s and other documents mamtained by a dealer the goods in lu~ possession and h1s offices, shops, godowns, vessels or vehicles shall be open to inspection at all reasonable tJmes by such officers as may be authonsed by the Govei nment m th1s behalf. (3) (a) If any officer not below the rank of an assessing autho rity has reason to suspect that any dealer attemptmg to evade JS payment of any t<tx or fee due from him under th1s Act, he may, for reasons to be recorded 111 wnting, se1ze such accounts, registers and documents of the de<tler as he may consider necessary and shall g1ant a receipt for the same. The officer who se1zes such accounts, registers or documents shall return them within thirty days from the date of ~eizure unless they are required for a prosecution. ; I I (h) (t) Any such officer shall have power to enter and search, l for purposes referred to in sub-sect1on (2) or clause I j (a), any office, shop, god own, vessel, receptacle, vehi cle or any other place of business or any building or place where such officer has reason to believe that the 1 i dealer keeps, or 1s for the t1me being keepmg, any I accounts, registers or documents of his business: I Provided that no residential accommodatiOn (not being a I shop-cum-residence) ~hall be entered into and searched by such officer I I except on the authonty of a search-warrant Issued by a Magist1ate havmg jun~d1ctwn over that area, and all searche~ under tins sub I sectiOn shall, so fa1 as may be, be made Ill accordance w1th the v·. i provi~1om of the Code of Crimmal Procedure, 1898 (Central Act 5 of 1898), subject to the rules, 1f any, made m this behalf. . '~ (1 1) The power conferred by sub-claus:: (l ) shall include the power to break open any box or receptacle in which I I l, any accounts, registers, or other documents of the dealer I I 57 may be kept or any place where the accounts are rea sonably suspected to be k:::pt or to break open the door of any premises where any such accounts, regtsters or documents may be kept or reasonably suspected to be kept: Provided that the power to break open the door shall be exercised only after the owner or any other person m occupation of the premises If he is present therem fails or refuses to open the door on bemg called upon to do so. (m) The power conferred by sub-clause (z) shall also include the power to seal any box or receptacle, godown or butlding where accounts arc suspected to be kept or goods are stort·d, if the owner or any other person ·in occupatiOn leaves the premises or refuses to open any box or receptacle, godown or building or is not availa ble, and then to break open such hox, receptacle, godown or butlding on the authority of a warrant issued by a Magistrate having junsdtction over that area. (4) (a) Any officer authoris.::d in thts behalf by the Government shall have power to se•ze any goods the sale or purchase of which IS liable to tax and which are found in any office, shop, godown, vehicle, vessel or in any other place of busmess or in any bmldmg of the dealer but not accounted for by the dealer in hts accounts, registers and other documents maintamed m the course of his busmess or m any other satisfactory manner : Provided that a list of all thmgs seized under this sub-sect1on shall be prepared by such officer and Signed by two respectable witnesses: .. Provided further that no rcstdenti.? I accommodatiOn shall be entered into by such officer except on the au•hority of a search war- 1 ant issued by a Magistt ate havmg junsdtction over the area. (b) Any goods seized under clause (a) shall be released on payment of a penalty not exceedmg double the amount of the tax on the sale or purchase of such goods as may be fixed by such officer : Provided that the officer may release the goods on cash security being furnished by the person concerned to the extent of the penalty levtable if, m the opm10n of the officer, further time ts required to arrive at a correct findmg as to whether a penalty is to be tmposed or not and that the secunty so furnished shall be adjusted towards the penalty m case tf it I~ p,tyable or returned to the party, 1f otherwise. (c) The good~ so seized under clau~c (a) and not released under clause (b) may, on the report of such officer, be tonfiscated by the Inspecting Assistant Comm•sstoner, provtded that before taking action for the confiscatiOn of goods under this sub-sectiOn, the officer shall by notice gtve the person affected an opportunity of being heard and make an enquiry in the prescribed manner. (;:) A Magistrate of the first class may, on application from an officer empowered by sub-section (3) to search any place within the - ' ) 58 jurisdiction of such Magtstrate or to seize goods under sub-section (4) in any place wahin his JUriSdictiOn and on bemg satisfied that any restdential accommodation has to be entered into and searched or ente· red mto, as the case may be, for the purpose of the aforesaid sub-section (3) or sub-section (4), issue a search warrant authorismg such officer to enter and search or to enter such restdential accommodatiOn or on being satisfied that any box, receptacle, godown or butld111g ha~ to be broken open under sub-clause (m) of clause (b) ofsub.section (3), ISsue a war rant authorising the officer to break open such box, receptacle, godown or buildmg. (6) It shall be open to the Government to authonse different clas~es of officer~ for the purpose of takmg actiOn under sub-section (I), 1>ub-section (2) and clause (a) of sub-section (4). 29. Establzshmcnt of chccl. jJosts and znspcctzon of goods zn transzt. (I) If the Government constder that With a v1ew to prevent or check evasiOn of tax under this Act in any place or places m the State it is necessary so to do, they may, by notification m the Gazette, direct the setting up of check posts at such place or places, and define the bounda nes of such check posts and nottfy the area of the check posts included within such boundanes, hereinafter referred to as the notified area, and demarcate such boundaries by means of barners or otherwise for the purpose of regulating the passage of goods across the notified anta. (2) No person shall transport within the State across or beyond the notified area any consignment of goods exceed111g such quantity or -~ value as may be prescnbed by any vehicle or vessel, unless he is in - pos~ession of- -- (a) either a bill of sale or delivery note or way-bill or cet tifi cate of ownership con taming such particulars as may be prescnbed, and (b) a declaration in such form and containing such particulars a~ may be prescribed, when the vehicle or vessel enters or leaves the State hmits. Explanatzon.-Th~ term ·'goods" referred to in this sub-section shall not include luggage of persons who cross the notified area. (3) At any place with111 the notified area or at any other place when so required by any officer empowered by the Government in this behalf, the driver or any other person 111 charge of any vehicle or vessel shall stop the vehicle or vessel and keep the vehicle or vessel, a~ the case may be, stationary as long as may be reqUired by the officer in charge of the notified area or the officer empowered as aforesaid, and allow and enable such officer to mspect the goods unrler transport and to examme the btU of sale or delivery note or way-blll or certificate of ownership relating to the goods, which are in the possessiOn of such dnver or person Ill charge of the goods who shall, 1f so reqUired, give his name and address, the name and address of the owner of the velucle or vessel and the name and address of the owner of the goods and 111 the case of a vehicle or vessel entenng or leaving the State limits the declaration also. S9 (4) Where the goods transpmted exceed the quantity or value prescribed under sub-section (2), the officer in charge of the notified area or the officer empowered m the precedmg sub section shall have power to detam or seize and confiscate the goods- ( a) which are bemg transported by a vehicle or vessel and not covered by a bill of sale or dehvery note or way-bill or certificate of ownership and where the vehicle or vessel enters or leaves the State hmtts, the declaratiOn referred to m clause (b) of sub-section (2) also, or (b) where the declaration is false or is reasonably suspected to be false in respect of the particulars furmshed therem: Provided that before taking action for the confiscation of good~ under this sectwn, the officer shall gtvc the person m charge of the goods and the owne1, 1f ascertainable, an opp01 tumty of being heard and make an enquiry m the manner ptesc11bed. (5) Whenever wnfiscation is auth01 ised by th1s section, the officer adjudging it shall gtve the owner or the person m charge of the goods an optwn to pay, m lieu of confiscation, a penalty not exceeding double the amount of tax calculated at the rates apphcable to the goods liable to confiscation : Provided that the officer may relea~e the goods on cash secunty being furnished by the person concerned to the extent of the penalty leviable if, in the opmwn of the officer, further t1me is required to arnve at a correct finding as to whether a penalty IS to be Imposed or not and that the security so furnished shall be adjusted towards the penalty in case it is payable or returned to the party, 1f otherwise. (6) Nothing contained in sub-section (4) or sub-section (5) shall apply in the case of goods transported which a1e exempted from tax under any of the proviswns of thts Act without any conditiOn or restriction. 30. Regulatwn of transport of notifzed goods.-( I) No person shall transport from or to any railway statwn or steamer station or any other place of similar nature notified in tillS behalf by the Government any consignment of such goods as may be notified by the Government m the Gazette exceeding such quantity or value as may be prescnbed, except in accordance with such conditions as may be prescnbed. Such condi tions shall be prescribed w1th a view to ensure that there is no evaswn of the tax imposed by tillS Act. (2} Any ofl'icet authorised by the Government in th1s behalf shall have power, subject to such restrictwns as may be prescnbed,- ( a) to mtercept and search any vehtcle or vessel for the purpose ofveufymg whether any goods a1e bemg transported m contravention ofsub-sectwn (1); (b) to seize and confiscate any good~ wluch he has reason to believe are being transported in contraventiOn of sub-sectJOn (I): Provided that before taking action for the confiscation of goods under this section the officer shall give the person m charge of the goods and the owner, If ascertamable, an opportumty of bemg heard and make an enquiry in the manner prescnbed. 'I 60 (3) Whenevet confiscation is authorised by th1s section, the officer adjudging tt shall g1ve the owner or the person 10 charge of the goods an opt10n to pay, m lieu of confiscatiOn, a penalty not exceeding double the amount of tax calculated at the rates applicable to the goods hable to confiscatiOn : Prov1ded that the officer may release the goods on cash seeUJtty being furmshed by the person concerned to the extent of the penalty lev1able tf, in the opimon of the officer, fUJther hme 1s requtred to arrive at a correct findmg as to whether a penalty ts to be tmposed 01 not and that the secunty so fUJ mshed shall be adjusted towards the penalty m case tt is payable or returned to the party, tf otherwise. (4) T\othing conta10ed in sub-section (2) or sub-section (3) shall apply m the case of goods transported wh1ch are exempted from tax under any of the provts1ons of tillS Act without any condition or restnct10n. 31. Possesszon and submtsston of certam records by owners, etc., of r,ehzcles and vessels.-The owner other person m charge of a vehicle or vessel 01 shall, while transporting any consignment of goods exceedmg such quant1ty or value as may be prescnbed under sub-section (2) of sec tiOn 29, carry With him- (z) a bill of sale, dehvery note, way-bill or a certificate of ownershtp, and (ll) such other documents as may be prescribed, relatmg to the goods under transport and contaming such partictdars as may be prescnbed, and shall submtt to the prescnbed authonty, having -~-i junsdictton over the area 10 wh1ch the goods are delivered, the docu --I ments aforesaid or coptes thereof wtthin such time as may be prescnbed. 32. Forwarding agency, etc., to submtt returns.- Every clearmg or fm wardmg house or agency, transporting agency, shipping agency, shippmg out-agency or steamer agency in the State shall submtt to the asse~sing authonty of the area such returns as may be prescnbed of all goods cleared, forwarded, transpm ted, or shtpped by It. The assessmg authonty concerned shall have the power to call for and examme the books of account or other documents m the possessiOn of such agency wtth a view to venfy the correctness of the returns submttted, and the agency shall be bound to fun:tsh the books of account or other docu ments when so called for. 33. Banks to submtt retums.-Every bank, mcludmg any branch of a bank or any bankmg mstitutton m the State, shall submtt every month to the assessmg authonty of the area a return m the prescribed form of all bills relatmg to goods dtscounted, cleared or negotiated by or through tt durmg the precedmg month, m such manner as may be pres cribed. VII CHAPTER ~.- · Appeals, Revisions and Refunds ' 34. Appeals to the Appellate Asststant Commzsstoner.-( 1) Any person objectmg to an ordet affecting htm passed by an appropnate authonty under sub-section (6) or sub-fectton ( 7) of section 14, sub-section (2) , __ 61 or sub-section (3) of section 17, sub section ( 1), sub-section (2) or sub section (3) of sectiOn 18, sub-section (I) or sub-section (2) of sectiOn 19, section 26, section 29, section 30 or sub-sectwn (2) ofsectwn 47 may, Within a period of th1rty days from the date on wh1ch the order was served on !urn, appeal agamst such order to the Appellate .'\s~Js­ tant Comm1sswner: Provided that the Appellate Ass1stant CommiSSioner may admit an appeal presented after the expiration of the sa1d pe110d 1f he IS satisfied that the appellant had sufficient cause for not presentmg the appeal within the sa1d penod: Piov1ded further that in the case of an order under sub-sectwn (2) or sub-section (3) of section 17, sub-section (I), ~ub-sectwn (2) or sub-section (3) of section 18 or sub-section (I) or sub-sect1on (2) of section 19, no appeal shall be entertamed under this sub-sectiOn unless it IS accompamed by satisfactory proof of the payment of the tax or other amounts admitted by the appellant to be due or of such instal ment thereof as m1ght have become payable, as the case may be. (2) The appeal shall be in the prescnbed form and shall be veri fied in the prescnbed manner. (3) In disposing of an appeal, the Appellate Ass1~tant Commis sioner may, after g1vmg the appellant a reasonable opportunity of bemg heard,- (a) m the case of an order of assessment or penalty,- (t ) confirm, reduce, enhance or annul the assessment or the penalty or both; (u) set aside the assessment and direct the assessing authority to make a fresh a~sessment after such further enquiry as may be directed; or (iu) pass such other orders as he may think fit, or (b) in the case of any other order, confirm, cancel or vary such order: Provided that, at the hearing of any appeal against an order of the assessmg authority the assessing authority shall have the ight to be 1 heard e1ther m pe1 son or by a representative. (4) Where as a result of the appeal any change becomes neces sary in the order appealed agamst, the Appellate Assistant Commissioner may d1rect the assessmg authority to amend such orde1 accordingly and, on such amendment being made, any amount overpa1d by the appellant shall be refunded to h1m or the further amount of tax, 1f any, due from him shall be collected in accordance vv~th the provisions of this Act, as the case may be. ~·. (5) NotwJthstandmg that an appeal has been preferred under sub-section (I), the tax or other amounts shall be pa1d in accordance with the order against which the appeal has been preferred: Provided that the Appellate Assistant Commissioner may, m his disGretion, give such directions as he thinhs fit m regard to the payment 62 of the tax before the disposal of the appeal, if the appellant furnishes sufficient secunty to his satisfaction in such form and in such manner as rna y be presci i bed. of 35. Powers of rcvzswn the Depu~" Commzssioner suo motu.-( I) The Deputy CommiSSioner may, of h1s own motion, call for and examine any order passed or proceedmgs recorded under this Act by the Inspectmg Assistant Commissioner or any officer or authority of rank below that of an Inspecting Assistant Commissioner and may make such enquiry or cause such enqmry to be made and, subject to the provisions of thiS Act, may pass such order thereon as he tlunks fit. (2) The Deputy Commissioner shall not pass any order under sub-section (I) If- (a) the hme for appeal against the order has not expired; (b) the order has been made the subject of an appeal to the Appellate Assistant Commissioner or the Appellate Tnbunal or of a revision m tile H1gh Court; or (c) More than four years have expired after the passing of the order referred to therein. ( 3) No order under this section adversely affecting a person shall be passed unless that person has had a reasonable opportunity of being heard. 36. Powers rf revwon of Deputy Commzsszon£r on app!uation.-( 1) Any person objectmg to an order passed or proceedmg recorded under this \.. . I Act for which an appeal has not been provided for in section 34 or }~ I section 39 may, w1thm a penod of thirty days from the date on which a I copy ofthe order or proceedmg was served on him m the manner pres cnbed, file an application for revision of such order or proceeding to the Deputy Commissioner . Prov1ded that the Deputy Commissioner may admit an applica tion for revisiOn presented after the expiration of the said penod, 1f he is satisfied that the appl1cant had sufficient cause for not presenting the apphcatwn withm the said penod. (2) An apphcat10n for revis1on shall be in the prescribed form and shall be veuficd in the prescnbed mannei. (3) On admittmg an application for revision, the Deputy Commissioner may call for and examme the record of the order or proceedmg against which the application has been prefe~red and may make such enqu1ry or cause such enqu1ry to be made and subject to the provisions of this Act pass such o1der the1eon as he tlunks fit. ( 4) NotwJthstandmg that an apphcatwn has been preferred under sub-section (I), the tax, fee or other amount shall be pa1d m accordance with the mder or proceedmg agamst wh1ch the applicatiOn has been prefen ed : Provided that the Deputy Commissioner may, in h1s discretion, giVe such directions as he thmks fit in regard to the payment of such tax, fee or other amount, 1f the applicant fur11Jshes suffiCient security to h1s satJsfachon in such form and m such manner as may be prescnbed. I I I L .J - - ____.-' 63 (5) No order under this section adversely affecting a person shall be passed unless that person has had a reasonable opportumty of bemg heard. 37. Powers of revzszon of the Board of Revenue suo motu.-( I) The Board ofRevenue may suo motu call for and examine any order passed or proceedmg recorded under this Act by the Deputy Commissioner, Inspecting A~sistant Commzssioner or any officer or authority of rank below that of an Inspectmg Assistant Commzssioner and may make such enquiry or cause such enquiry to be made and subject to the provi~wns of this Act may pas~ ~uch order the1 eon as it thmks fit. (2) The Board of Revenue shall not pass any order under sub-section ( 1) If- (a) the time for appeal against that order has not expired; (h) the order has been made the subject matter of an appeal to the Appellate Assistant Comm1sszoner or the Appellate Tribunal or of a revision m the Hzgh Court ; or (c) more than four yeaiS have expired after the passing of the order referred to therem. (3) No order under this section adversely affecting a person shall be passed unless that person has had a reasonable opportunity of being heard. 38. Powers of reviszon of the Board of Revenue on applzcation.-( I) Any person objecting to an order passed by the Deputy Commis~ioner under sub-section (I) of sect JOn 35 or sub-section (3) of section 36 may, within a penod of thzrty days from the date on which copy of the .1 order was served on him~in the manner prescnbed, file an application for revision of such order to the Board of Revenue : Provided that the Board of Revenue may admit an application presented after the exp1ry of the said period, if 1t is satzsfied that the applicant had sufficient cause for not presenting the application withm the said penod. (2) Such apphcation for revision shall be in the prescribed form and shall be venfied in the prescnbed manner. (3) On admittmg an application for revzsion, the Board of Revenue may call for and examme the record of the order agamst which the applicatiOn has oeen preferred and may make such enquzry or cause such enquiry to be made and subject to the provisions of this Act pass such order thereon as it thinks fit. ( 4) Notwithstandmg that an apphcation has been preferred under sub~sectlon (I), the tax, fee or other amount shall be paid in accordance wlth the order agamst which the applicatlon has been preferred . Provided that the Board of Revenue may, in its dzscretwn, give such directwns as It thinks fit m regard to the payment of such tax, fee or other amount, 1f the applicant furmshes sufficient security to its satisfaction m such manner as may be prescnbed. (5) No order under this sectiOn adversely affecting a person shall be passed unless that person ha~ had a reasonable oppoctumty of being heard. r~ I 64 39. Appdal to tne Appellate Tribunal.-(!) Any officer empowered by the Government m this behalf or any other person objecting to an order passed by the Appellate Assistant Commissioner under sub-section (3) of section 34 and any pe1son objectmg to an order passed by the Deputy Commisstonei under sub-sectiOn (I) of section 35 and any person obJectmg to an o1der passed by the Inspecting Assistant Commissloner unde1 clause (c) of sub-sectiOn (4) of section 28 may, w1thm a period I ~--! of Sixty days from the date on which the order was served on " h1m in the manner prescnbed, appeal against such order to the Appe I llate Tribunal : Provided that the Appellate Tribunal may admit an appeal presented after the expiration of the said period if it is satisfied that the appellant had sufficient cause for not presenting the appeal w1thm the said penod. (2) The officer authonsed under sub-sectiOn (I) or the person against whom an appeal has been preferred, as the case may be, on rece1pt of notice that an appeal agamst the order of the Appellate Assi stant Comm•ssioner has been perefer1 ed under sub-section (I) by the other party, may, notwithstandmg that he has not appealed agamst such der or any part thereof, file, within thirty days of the receipt of 01 the notice, a memorandum of cross-obJeCtiOns, venfied, in the prescri bed manner, against any part of the order of the Appellate Assistant CommisSioner, and such memorandum shall be disposed of by the Appellate Tnbunal as 1f 1t were an appeal presented Within the time specified in sub-section (I). (3) The appeal or the memorandum of cross-objections shall be in the prescribed form and shall be venfied in the prescribed manner and, in d.e case of an appeal preferred by any person other than an officer empowered by the Government under sub-section (I), it shall be accomparued by such fee not exceedmg one hundred rupees as may be prescr 1b ed. (4) In disposing of an appeal, the Appellate Tribunal may, after giving the parties a reasonable opportunity of being heard either in person or by a representative,- (a) m the case of an order of assessment or penalty,- (z) confirm, reduce, enhance or annul the assessment or penalty or both , (ll) set aside the assessment and dnect the assessmg authority to make a f1·esh assessment after such further enquiry as may be directed ; or (tit) pass such other orJers as it may thmk fit ; or (b) m the ca~e of any other order, confirm, cancel or vary such order. Provided that, 1f the appeal mvolves a questiOn of law on which the Appellate Tnbunal has prevwmlv g1ven its decision in another appeal and either a revision peht1on m the High Court against such decision or an appeal in the Supreme Court agamst the order of the H1gh Court thereon IS pendmg, the Appellate Tribunal may defer the hea1 mg of the appeal before It, till such revision petitiOn in the High Court or the appeal m the ~upreme Court 1s disposed of. I ! ' :· r II I L-, ~-- I ../ 65 (5) Where as a result of the appeal any change becomes neces· sary in the order appealed against, the Appellate Tribunal may authonse the assessing authority to amend such order 1 accordingly and on such amendment being made any amount overpaid by the appellant shall be refunded to him or the further aMount of tax, if any, due from him shall be collected in accordance with the provisions of this Act. (6) Notwithstanding that an appeal has been preferred under sub-section ( 1), the tax shall be paid in accordance with the order of assessment against which the appeal has been preferred : Provided that the Appellate Tnbunal may, in its discretion, give such d1rections as it thinks fit in regard to the payment of the tax before the disposal of the appeal, if the appellant furnishes sufficient security to its sahsfactwn in such form and in such manner as may be prescribed. (7) (a) The appellant or the respondent may apply for review of any order passed by the Appellate Tribunal under sub-section (4) on the basis of the discovery of new and important facts which after the exercise of due diligence were not within his knowledge or could not be produced by him when the order was made : Provided that no such application shall be preferred more than once in respect of the same order. -- ~ (b) The application for review shall be preferred in the pres cribed manner and within one year from the date on which a copy of the order to which the applicatwn relates was served on the apphcant in the manner prescribed, and, where the applicatwn is preferred by any person other than an officer empowered by the Government under sub-section ( 1), it shall be accompanied by such fee not exceedmg one hundred rupees as may be prescribed. (8) Every order passed by the Appellate Tribunal under sub section (4) or sub-sectwn (7) shall be commumcated in the manner prescribed to the appellant, the respondent, the authority from whose order the appeal was preferred, the Deputy Commiss10ner concerned if he is not such authority and the Board of Revenue. 40. Appeal to the Htgh Court.-( I) Any person objecting to an order affecting him passed by the Board of Revenue under section 37 may, within a period of ninety days from the date on which a copy of the order was served on him m the manner prescnbed, appeal against such order to the High Court : Provided that the High Court may admit an appeal preferred after the period of ninety days aforesaid if it is satisfied that the appellant had sufficient cause for not preferrmg the appeal within the said period. (2) The appeal shall be in the prescribed form and shall be verified in the prescnbed manner and shall be accompanied by a fee of one hundred rupees. 3/5-5 (/ 66 (3) In disposing of an appeal, the High Court may, after giving the parties a reasonable opportunity of being heard either in person or by a representative,- (a) in the case of an order of assessment or penalty,- (t) confirm, reduce, enhance or annul the assessment or penalty or both ; -fr; (ti) set aside the assessment and direct that a fresh asses- ' sment may be made after such further enquiry as may be directed ; or (iii) pass such other orders as it may think fit ; or (b) in the case of any other order, confirm, cancel or vary such order. (4) Where as a result of the appeal any change becomes neces sary in the order appealed against, the High Court may authorise the Board of Revenue to amend such order accordingly and, on such amendment being made, any amount overpaid by the appellant shall be refunded to him or the further amount of tax, if any, due from him, shall be collected in accordance with the provisions of this Act, as the case may be. ( 5) Every order passed in appeal under this section shall be final. I (6) Notwithstanding that an appeal has been preferred under ',I sub-section (I), the tax shall be paid in accordance with the order of i I assessment against which the appeal has been preferred : \. i I p-1' Provided that the High Court may, m its discretiOn, give such directions as it thinks fit in regard to the payment of the tax before the -I disposal of the appeal, if the appellant furnishes sufficient security to its satisfaction in such form and in such manner as may be prescnbed. (7) (a) The High Court may, on the application of the appellant or the Board of Revenue, review any order passed by 1t under sub section (3) on the basis of the di~covery of new and important facts which after the exerc1se of due diligence were not within the knowledge of the appellant or the Board of Revenue or could not be produced by him or it when the order was made. (b) The application for review shall be preferred in the prescribed manner and within one year from the date on which a copy of the order to which the application relates was served on the applicant in the manner prescribed and shall, where it is preferred by any person other than the Board of Revenue, be accompamed by a fee of one hundred rupees. (8) The cost of an appeal under sub-section (I) or of a review under sub· section (7) shall be in the discretiOn of the High Court. 41. Revmon by the Hlgh Court.-( I) Any officer em powered by the Government in this behalf or any other person who objects to an order passed by the Appellate Tribunal under sub-sect tOn (4) or sub-section (7) of section 39 may, within ninety days from the date on which a copy of such order is served on h1m in the manner prescribed, prefer a petition to the High Court on the ground that the Appellate Tribunal has either decided erroneously or failed to dec1de any question of law : ,_ 67 Provided that the High Court may admit a petition preferred after the period of ninety days aforesaid if it is satisfied that the petitioner had sufficient cause for not preferring the petition within the said period. (2) The petition shall be in the prescribed form and shall be verified in the prescribed manner and, where it is preferred by a person qy other than an officer empowered the Government under sub-sec tion (I), it shall be accompanied by a fee of one hundred rupees. (3) If the High Court, on perusing the petition, considers that there is no sufficient ground for interfering, it may dismiss the petition summarily: Provided that no petition shall be dismissed unless the petitioner has had a reasonable opportunity of being heard. (-4) (a) If the High Court does not dismiss the petition sum marily, it shall, after giving both the parties to the petition a reasonable opportunity of bemg heard, determine the question of law raised and either reverse, affirm or amend the order against which the petition was preferred or remit the matter to the Appellate Tnbunal with the opinion of the High Court on the question of law raised, or pass such order in relation to the matter as the High Court thinks fit. (b) Where the High Court remits the matter under clause (a) with its opinion on the question of lliw raised, the Appellate Tribunal -- shall amend the order passed by 1t in conformity with such opinion. -~ (5) Before passing an order under sub-section ( 4), the High Court may, if it considers it necessary so to do, remit the petition to the Appellate Tribunal, and direct it to return the petition with its finding on any specific question or issue. · (6) Notwithstandmg that a petition has been preferred under sub-section ( 1), the tax shall be paid in accordance with the order against which the revision has been preferred : Provided that the High Court may, in its discretion, give such directions as it thinks fit in regard to the payment of the tax before the disposal of the petition, if the petitioner furnishes sufficient security to its sati~faction in such form and in such manner as may be prescribed. · (7) (a) The High Court may, on the application of any party to a revision under this section, review any order passed by it on the basis of the discovery of new and important facts which after the exercise of due diligence were not within the knowledge of the applicant or could not be produced by him when the order was made. (b) The application for review shall be preferred in the pres cribed manner and within one year from the date on which a copy of the order to which the application relates was served on the applicant in the manner prescribed and, where it is preferred by a person other than an officer empowered by the Government under sub-section (I), 1t shall be accompanied by a fee of one hundred rupees. (8) If, as a result of the revision or review, any change becomes necessary in any assessment, the High Court may direct the assessing 3/5 -5a. 68· authority to amend the assessment accordingly, and, on such amend ment being made, any amount overpaid by any person shall be refund ed to him, or the further amount of tax due from him shall be collected in accordance with the provisions of this Act, as the case may be. (9) The cost of a revision under sub-section (I) or of a rev1ew under sub-section (7) shall be in the discretion of the High Court. 42. Appeals, petitions and applzcations to the Htgh Court to be heard by a Bench of not less than two Judges.-Every appeal preferred to the High Court under sect1on 40, <'Very petition under section 41 and every application under sectiOn 40 or section 41 shall be heard by a Bench of not less than two Judges, and in respect of such appeal, petition or application, the provisions of section 98 of the Code of Civil Procedure, 1908 (Central Act 5 of 1908), shall, so far as may be, apply. 43. Power to rectify any error apparent on the (ace of the record.-(!) An assessing authonty or an appellate or revising authority (including the Appellate Tnbunal) may, on applicatiOn or otherwise, at any time within three yean from the date of any orde1· passed by it, rectify any error apparent on the face of the record : Provided that no such rectification which has the effect of en hancing an assessment or any penalty shall be made unless such authority has g1ven notice to the person affected and has allowed him a reasonable opportunity of being heard. (2) Where such rectification has the effect of reducing an assess ment or penalty, the assessing authority shall make any refund to the person entitled thereto. (3) Where any such rectification has the effect of enhancing an assessment or penalty, the assessing authority shall give the dealer or other person a revised notice of assessment or penalty, and thereupon the provisions of this Act and the rules made thereunder shall apply as if such notice had been given in the first mstance. Explanation.-The liability to pay the tax or other amount Will arise only from the date specified in the revised notice. 44. Refunds.-( I) When an assessing authority finds, at the time of final assessment, that the: dealer has pa1d tax in excess of what is due from him, it shall refund the excess to the dealer. (2) When the assessing authority receives an order from any appellate or revisional authority to make refund of tax or penalty paid by a dealer, it shall effect the refund. • (3) Notwithstandmg anything con tamed in ~ub-sections (I) and (2), the assessing authority shall have power to adjust the amount due to be refunded under sub-sect1on (I) or sub-section (2) towards the recovery of any amount due, on the date of adJUStment, from the dealer. (4) In case refund under sub-sectiOn (I) or sub-section (2) or ad JUStment under sub-section (3) not made w1thm ninety days of the IS date of final assessment or, as the case may be, within nmety days of the date of receipt of the order in appeal or revision or the date of expiry of the time for preferring appeal or revision, the dealer shall be entitled ·- ,_ 69 to-claim interest at the rate of slX per cent per annum on the amount due to h1m from the date of expiry of the said period up to the date of payment or adjustment. 45. Refund or adjustment in certain cases.-Where a dealer proves to the satisfaction of the assessing authority- (i) that he has been assessed to tax under the General Sales Tax Act, 1125 ( Act XI of 1125 ) or under this Act, as the case may be, m respect of the turnover of the goods in his possession on the last day of the financial year ending on the 31st day of March, 1960, or on the last day of any subsequent financial year, which' is taxable only at the point of last purchase m the State ; (ti) that he has paid the tax so assessed ; and (tii) that- (a) he has sold such goods to a dealer in the State who is liable to tax under section 3 of the General Sales Tax Act, 1125 or under sec tion 5 of this Act, as the case may be, in respect of such goods, before the expiry of the subsequent financial year, or (b) the case of co1r or aloe yarn such goods were used by 111 him in the manufacture within the State of coir products or aloe yarn products, as the case may be, in the subsequent year, he shall be en titled to the refund of th~. tax paid by h1m or to its adj ust ment in such manner and subject to such conditions as may be pres- cribed : · Provided that the provisiOns of this section shall apply to the refund of the tax paid on the turnover' relatmg to the purchase of aloe yarn used in the manufactme of aloe yarn products under sub-clause (b) of clause (m) only where the purchase took place in the year 1961-62 or any subsequent year. CHAPTER VIII Offences a~d penalties 46. Penalty for submztting untrue return, etc.-(IJ Any.person who (a) knowingly submits an untrue return or fails to submit a return as required by the provisions of this Act or the rules made there under, or (b) collects any amount by way of tax in contravention of sub section ( 1) of section 22, or (c) fails to keep true and complete accounts, or (d) dishonestly objects to or fails to comply with the terms of a notice issued to him under sub-section ( 1) of section 25, or (e) being a person obliged to register himself as a dealer under this Act does not get himself registered, or (f) wilfully acts in contraventiOn of any of the provisions of this Act or the rules made thereunder, for the contravention of which no express provision for punishment is made by this Act, 70 shall, on conviction by a Magistrate not below the rank of a Magistrate of the First Class, be liable to fine which may extend to one thousand rupees. (2) Any person who- (a) prevents or obstructs inspection, entry, search or seizure "t; by an officer empowered under this Act, or (b) prevents or obstructs inspection of any vehicle or vessel or · " goods transported otherwise or seizure of goods by an officer in charge of a check post or barrier or any officer empowered under this Act, or (c) fraudulently evades the payment of tax, fee or other amount due from him under this Act, or (d) after purchasing any goods in respect of which he has made a declaration under the prov1so to sub-section (3) of section 5 fails with· out reasonable excuse to make use of the goods for the declared purpose, or (e) carnes on business as a dealer without furnishing the secu rity demanded under sub-section (4) of section 14, shall, on conviction bv a Magistrate not below the rank of a Magistrate of the First Class, be liable to simple imprisonment which may extend to SIX months or to fine not less than the tax or other amounts due but not exceeding two thousand rupees, or to both. 47. CompoSitiOn of offences.-The assessing authority or other officer or authority authorised by the Government in thiS behalf may accept ~, from any person who has committed or is reasonably suspected of hav- - ing committed an offence against this Act, by way of composition of such offence.- ( a) where the offence consists of the evasion of any tax recove- rable under this Act, m addition to the tax so recoverable, a sum of money not exceeding one thousand rupees or double the amount of the tax recoverable whichever is greater, and (b) in other cases, a sum of money not exceeding one thousand rupees. (2) If any person purchasing goods is guilty of an offence under clause (d) of sub-section (2) of section 46, the assessing authority may, after giving him a reasonable opportumty of being heard, by order in writmg, impose upon him by way of penalty a sum not exceeding one and a half times the tax payable on the turnover relating to the sale of such goods at a rate wh1ch is equal to the rate prescribed in the First Schedule less one per cent: ' Provided that no prosecution for an offence under section 46 shall be instituted in respect of the same facts on which a penalty has been imposed under this sub-section. 48. Offences by companies.-( 1) If the person committing an offence under th1s Act is a company, the company as well as every person in charge of, and responsible to, the company for the conduct of its business at the time of the commission of the offence shall be deemed to be guilty 71 of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due dili gence to prevent the commission of such offence. (2) Notwithstandmg anything contained in sub-seetion (I), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commissiOn of the offence is attributable to any neglect on the part of, any director, manager, managing agent or any other officer of the company, such director, manager, managing agent or such other officer shall also be deemed to be guilty of that offence and shall be hable to be prod:eded against and punished accor dingly. Explanation.-For the purposes of this section,- (a) "company" means any body corporate and includes a firm or other association of individuals; and ' (b). "director" in relation to a firm, means a partner in the firm. IX CHAPTER Miscellaneous 49. Courts not to set astde or modify assessments except as provided tn thts Act.-No suit or other proceedmg shall, except as expressly provided in this Act, be instituted m any court to set aside or modify any assess ment made und<>r this Act. 50. Assessment, etc., not to be questioned in prosecution.-( I) Any order of assessment made under this Act shall be conclusive evidence m any prosecution or other proceeding. (2) The validity of the assessment of any tax, or of the levy of any fee or other amount, made under th1s Act, or the liability of any person to pay any tax, fee or other amount so assessed or levied, shall not be questioned many CIJminal court m any prosecution or other proceedmg, whether under this Act or otherwise. 51.

Bar of certain proceedings.-( 1) No suit, prosecution or other proceeding shall lie against any officer or servant of the Government for any act done or purportmg to be done under this Act, without the previous sanction of the Government. (2) No officer or servant of the Government shall be liable in respect of any such act m any civil or cnminal proc~ding, 1f the act was done in good faith in the course of the execution of-duties or the discharge of functions imposed by or under this Act. 52. Ltmttatzon for certazn suzts and prosecutwns.-No suit shall be instituted against the Government and nJ suit, prosecution or other pro ceeding shall be instituted against any office1 or servant of the Govern ment in respect of any act done or purporting to be done under th1s 72 bAct, unless the suit, prosecution or other proceeding is instituted within six months from the date of the act complained of: Provided that, in computing the period of limitation under th1s section, the time taken for obtaming sanction under sub-section ( 1) of section 51 shall be excluded. 53. Power to summon wztnesses and cause productzon of documents.-An assessing authonty or an appellate or revismg authority (including the Appellate Tnbunal) shall, for the purposes of this Act, have all the powers conferred on a court by the Code ofCivil Procedure, 1908 (Cen tral Act 5 of 1908), in respect of the followmg matters, namely,- (a) summoning and enforcing the attendance of any person and examinmg him on oath or affirmation; and (b) compelling the producticn of any document. 54. Prohzbitzon of dzsclosure of particulars produced before sales-tax ' I authorztus.-( 1) All particulars contained m any statement made, j I return furnished or accounts, registers or docurrents produced under the provisions of this Act or in the evidence given or affidavit or deposi tion made in the course of any proceeding under this Act or in any record of any proceeding relating to the recovery of a demand, prepared for the purposes of this Act, shall be treated as confidential and shall not be disclosed. I I (2) Nothing contained m sub-section ( 1) shall apply to the l disclosure of any such particulars- (t) to any othcer of the Sales Tax Department of the State; ~I (zi) for the purpose of prosecution under the Indian Penal Code (Central Act 45 of 1860), or under this Act in respect of any such I statement, return, accounts, registers, documents, evidence, affidavit or I deposition ; (m) to any person enforcing the provisions of this Act where it Is necessary to disclose the same to him fm the purposes of this Act ; (iv) occrunoned by the lawful employment under this Act of any process for the recovery of any demand ; (v) to a civil court in any suit to which the Government are party and wh1ch relates to any matter arising out of any proceeding under this Act ; (vt) occasioned by the lawful exercise by a public servant of his powers under the Kerala Stamp Act, 1959 (Act 17 of 1959), or the Indian Stamp Act, 1899 (Central Act 2 of 1899), to impound an insufficiently stamped document ; (vzi) to an officer of the Government of India or the Govern ment of any State or Union Territory in India, if an agreement for disclosure on a reciprocal basis has been entered into between the Government and the Government of India or the Government of the State or Union Territory, as the case may be; (vm) to the Director of Statistics or any officer serving under him and authorised by h!ID in this behalf, as may be necessary for conducting statistical survey; s I,I I I ' l 73 (ix) to an officer of any Department of the Government after obtaining- ( a) the permission of the Inspecting Assistant Commissioner of the district, where such particulars are to be furnished by an officer subordinate to the Inspecting Assistant Commissioner; and ·:-t (b) the permission of the Board of Revenue, where such particulars are to be furnished by an Inspecting Assis tant Commissioner or an Appellate Assistant Commis sioner or a Deputy Commissioner : Provided that such particulars shall be furnished under clause (z).) only in exceptional cases and that any officer obtaining such particulars shall keep them as confidential and use them only in the lawful exercise of the powers conferred by or under any enactment. 55. Persons entttled to appear before authorzty.-Any person who is entitled or required to appear before any authority other than the High Court in connection with any proceedings under this Act may be represented before such authority- (a) by his relative or a person employed by him, if such relative or person is duly authorised by him in writing m this behalf; or (b) by a legal practitioner ; or (c) by a chartered accountant duly authorised by him in writmg in this behalf ; or -. (d) by a sales-tax practllioner possessing the prescttbed qualifica tions and duly authorised by him in writing m this behalf. 56. Sale or purchase deemed to have taken place mside the State zn certazn cases.-( I) Notwithstandmg anything con tamed in th1s Act, any sale or purchase which took place on or before the 6th day of September, 1955, shall be deemed to have taken place inside the State if the goods have actually been delivered as a direct result of such sale or purchase for the purpose of consumption in the State, notwithstanding the fact that under the general law relating to sale of goods the property in the goods has by reason of such sale or purchase passed in another State, and be subject to tax under this Act accordingly. (2) The provisions of this section shall not affect the liability to tax of any sale or purchase under any other provision of this Act. 57. Power to make rules.-( I) The Government may, by notifica• tion in the Gazette, make rules to carry out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for- (a ) all matters expressly required or allowed by this Act ta> be prescribed ; - (b) determining the total turnover, taxable turnover or tum• over of a dealer for the purposes of this Act ; (c) the assessment to tax under this Act of business which is discontinued or the ownership of which has changed; 74 (d) the assessment to tax under this Act of business owned by mmors and other mcapacitated persons or by persons res1ding outside the State, (e) the assessment of a business owned by any person whose estate or any port1on of whose estate 1s under the control of the Court of Wards, the Administrator-General, the Official Trustee, or any receiVer or manager appomted by or under any order of a court ; (j) the admmistration of the not1fied areas and the barriers erected and the check posts set up under th1s Act and the regulation of the work therein ; (g) the disposal of good~ confiscated under this Act and the proceeds thereof ; (h) requiring the submissiOn of returns ; (z) the form m which and the particulars to be contained in any declaration to be given under this Act, the authority from whom, the conditiOns subject to which and the fees subject to payment of wh1ch such form of declaration may be obtained, the manner in which such form shall be kept in custody and records relating thereto maintained, the manner in which any such form may be used and any such declara tion may be furnished ; ;I (J ) the duties and powers of officers appointed for the purpose of enforcing the provisions of this Act ; I (k) the term of office, and conditions of service, of the mem }y-1 bers of the Appellate Tribunal ; (l) the circumstances Ill wh1ch, and the extent to which, f<"es '" -Ii .' pa1d in pursuance of section 39 may be refunded , (m) the issue of bills or cash memoranda, the clas~ or classes of dealers who should mamtain counterfoils for the same and the parti culars to be shown m and the manner of maintenance of such counter foils and the time for wh1ch they should be preserved ; (n) the maintenance of purchase-bill~ or accounts of purchases and sales by dealers and the time for which they should be p1ese1ved ; (n) the issue of delivery notes or way-bills in respect of goods delivered or transfe1 red to retail dealers in pursuance of sales effected to them, the form and manner of their 1ssue and the time for which they should be preserved ; (p) the extent of liability of commission agent, broker, del credere agent, auctioneer or any other mercantile agent, who carries on the business of buymg, selling, supplying or d1stributmg goods on behalf of any principal ; (q) generally regulating the procedure to be followed and the forms to be adopted in proceedings under . this Act ; (r) any other matter for which there is no provision or no tl sufficient provision in this Act and for which prov1sion is, in the opinion of the Government, necesary for giving effect to the purposes of this Act. (3) Every rule made under this Act shall be laid as soon as may be after it is made oefore the Legislative Assembly wh1le it is in session ~- ) 75 for a total period of fourteen days which may be comprised il\ one ses sion or in two successive sessions and, if before the expiry of the session in which it is so laid or the session immediately following, the Legisla~ tive Assembly agrees that the rule should be either modified or annulled, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however that any such modification or annulment shall be Without preJudice to the validity of anything pre viously done under that rule. 58. Power to amend Schedules.-( I) The Government may, by notification in the Gazctte,- (a) add, omit or amend any entry in the F1rst Schedule or the Second Schedule, but not so as to enhance the rate of tax in any case ; (b) transpose any entry by deleting It from the First Schedule or the Second Schedule and inserting it in or addmg it to the other Schedule. (2) Where a notification has been issued under sub-section (I), there !>hall, unless the notification is in meantime rescinded, be intro duced in the Legislative Assembly, as soon as may be, but in any case during the next sess1on of the Assembly following the date of the issue of the notification, a Bill on behalf of the Government, to gtve effect to the additiOn, omission, amendment or transposition, as the case may be, of the entries in the Schedules specified m the notification, and the notification shall cease to have effect when such Bill becomes law, ---.-.{ whether With or without modifications, but without prejudice to the vahdity of anythmg previOusly done thereunder : Provided that, If the notification under sub-section ( 1) is issued when the Legislative Assembly is m session, such a Bill shall be intro duced m the Assembly durmgthat session : Provided further that where for any reason a Bill as aforesaid does not become law within six months from the date of 1ts introduc tiOn m the Legislative Assembly, the notification shall cease to have effect on the expiration of the said perwd of six months. (3) All references· made in this Act to the First Schedule or the Second Schedule shall be construed as references to that Schedule as for the time bemg amended m exercise of the powers conferred by this section. 59. Certam transactzons deemed to be first sale.-Notwithstanding anything con tamed in this Act, the first sale of such of those goods- (i) as were not liable to tax only at the point of first sale before the commencement of this Act ; and (it) as are liable to tax only at the pomt of first sale under sub-section ( 1) or sub-section (2) of section 5 of this Act, effected Within the State after the commencement of this Act shall be deemed to be the first sale for the purposes of this Act, although any sale of such goods has taken place within the State before such com mencement. (/ 76 60. Power to remove difftculttes.-(I) If any difficulty arises in giving effect to the provisions 0f this Act, the Government may, as occasion may require, by order, do anything which appears to them necessary fot the purpose of rcmovmg the difficulty. (2) All orders made under su b-sect10n (I) shall, as soon as may be after they arc made, be laid before the Legislative Assembly for a period of not less than fourteen days, and shall be subject to such modi- ~ fie 1t1ons as the Legisiative Assembly may make durmg the session in - v.hich they ate so laid or the sessiOn immediately following. 61. Repeal.-(I) The General Sales Ta" Act, 1125 (Act XI of 1125), is hereby repealed . Provided that such repeal shall not affect the previous operation of the said Act or any nght, title, obligation or liability already acq•Iired, accrued or incurred thereunder, and subject thereto, anything done or any action taken, mcluding any appointment, notification, notice, order, rule, form, regulation, certificate, licence or permit, in the exercise of any power conferred by or under the said Act, shall be deemed to have been done or taken in the exercise of the powers con- , fen-ed by or under this Act, as if this Act were in force on the date on which such thmg was done or action was taken, and all arrears of tax and other amounts due at the commencement of this Act may be 1ecovered as if they had accrued under this Act. (2) Notwithstanding anythmg contained in sub-section ( 1) , any application, appeal, revision or other proceeding made or preferred to any officer or authonty under the said Act and pending at the com mencement of this Act, shall, after ~uch commencement, be tram ferred to and disposed of by the officer or authonty who would have had jurisdiction to entertam such application, appeal, I . revision or other proceedmg under this Act if it had been in force on I I the date on which such applicatiOn, appeal, revision or other proceeding II was made or preferred. ! ~I I ;- 1 '- 77 THE FIRST SCHEDULE Goods in respect of which single point tax is leviable under sub-section (l) or sub-section (2) of section 5 Sl. No. Desmptwn of the goods Point of levy Rate of lax (Per cent) -f (1) (2) (3) (4) I. Liquors other than toddy At the pomt of first 50 sale in the State by a dealer who IS liable to tax under section 5 Explanatwn.-" Liquor" means and includes wine, brandy, Cham pagne, sherry, rum, gin, whisky, beer, cider, coco-brandy, arrack and all other disulled or spirituous or fermented beverages brought into or produced or manufactured m the State. 2. Motor spirit other than petrol do. 20 3. Petrol do. 15 4. Fire works includmg coloured do. 7 matches I 5. Rubber products other than cycle do. 7 tyres and tubes and rubber acces do. 7 - l sories of cycles -4 6. Foamed rubber sheets, cushions, do. 7 pillows and other articles off oamed rubber 7. All varieties of tractors and bull do. 7 dozers 8. Motor vehicles including chassis of do. 7 motor vehicles, motor tyres and tubes and spare parts of motor vehicles including batteries, motor cycles and cycle combmations, motor scooters, motorettes and tyres, tubes and spare parts of motor cycles, motor scooters and motorettes 9. Refrigerators and a1r conditionmg do. 7 plants and component parts there of 10. Gramaphones and component parts do. 7 thereof and records II. Clocks, time-pieces and watches and do. 7 parts thereof --\ I 2. Wireless reception instruments and do. 7 apparatus, radios and radio grama phones, electrical valves, accumula tors, amplifiers and loudspeakers and spare parts and accessones thereof ~ I / ./ I 78 SCHEDULE-(cont.) St. No. DeJcriptzon of the goods Point of levy Rate of tax "-., I , (Per cent) (1) (2) (3) (4) I 3. Sound transmittmg cquipments in At the point of first 7 ---~ cluding telephones and loud sale in the State speakers and spare parts thereof by a dealer who 1s liable to tax under section 5 14. Cinematographic equipments inclu do. 7 ding cameras, projectors and sound t: recording and reproducing equip ! • ments, lenses, films and parts and accessories required for use there with 15. Photographic and other cameras do. 7 and enlargers, lenses, films and plates, paper and cloth and other parts and accessories required for use therewith I I 6. Binoculars, telescopes and opera do. 7 glasses - I ~I I 7. Safes, almirahs and furniture made do. 7 of iron and steel 18. All arms mcluding nfles, revolvers, do. 7 pistols and ammunitions for the same 19. C1garette cases and lighters do. 7 20. Dictaphone and similar apparatus do. 7 for recording sound and spare parts thereof 21. Typewriters, tabulatmg machines, do. 7 calculating machines and duplica ting machines and parts thereof 22. Vacuum flasks of all kinds do. 7 23. Glassware, bottles and phials, fun do. 7 nels, globes, glass parts of lamps, sheets and plates and photo and other frames and mirrors 24. Crockery and cutlery, !ncluding do. 7 knives, forks and spoons, other -p. than stainless steel products, arti cles made of glass, china porcelain or glazed earthenware adopted for domestic use 25. Cement do. 7 _) \,._ 79 SCHEDVLE-(cont.) St. No. Desmption of the goods Point of levy Rate of to.t (Per cent) (I) (2) (3) (4) 26. All electrical goods, instruments, At the point of first 7 apparatus, appliances and all such sc1le m the State articles the use of wh1ch cannot be by a dealer who had except wtth the application of i~ hable to tax electrical energy, including fans under section 5 and lighting bulbs, electrical earthenwares and porcelain and all other accessories and component parts either sold as a whole or m parts 27. Paints, colours, lacquers and var do. 7 nishes 28. Cosmetics mcludmg scents and per do. 7 fumes, powders, snows, scented hair oils, scented sticks, and toliet requisites except soaps 29. Lubricating oils and greases do. 7 30. Foldmg umbrellas do. 5 31. Soaps do. 5 ) -A 32. Leather goods of all kinds (other do. 5 than hand-made foot-wear when sold at a pnce not exceedmg Rs. 5) 33. Plywood and hard board do. 5 34. Beedi leaves do. 5 35. Water supply and sanitary fittings do. 5 36. Manufactured tea do. 5 37. Coffee do. 5 38. Chicory do. 5 39. Bicycles, tandem cycles and cycle do. 5 combinations and tyres, tubes and accessories and parts thereof 40. Upholstered furniture, sofa sets, do. 5 dressing tables and furnitme of all types made oftimber 41. Bricks and tiles (kiln burnt) . do. 5 42. Paper (other than newsprmt), card do. 5 boards, straw boards and their products 43. Food stuffs sold in sealed containers do. 5 44. Vegetable products, that is to say, do. 5 ~ vegetable oil or fat, which whether ~ by itself or m admixture w1th any other substances, has by hydro- genation or by any other process been hardened for human consump tion • 80 SCHEDULE-(cont.) St. No. Descnptzon of the goods Pomt of levy Rate of tax (Per cent) ( 1) (2) (3) (4) 45. Any pen, pencil, or pen and pencil At the point of first 5 set sold for ten rupees or more sale in the State by a dealer who 1s liable to tax un der section 5 46. Precious stones, namely, diamonds, do. 5 emeralds, rubies, real pearls and saphires, synthetic or artificial pre cious stones, pearls artificial or cultured 47. Stainless steel products do. 5 48. Dried or canned fruits do. 5 49. Sewing machines do. 5 50. Kerosene do. 4 1 51. Confectionery (tinned, packed or otherwise) do. 2 52. Biscuits and cakes (packed, tinned or otherwise) do. 2 53. Matches do. 2 54-. Chemical fert1hsers including bone- meal do. 2 55. Firewood do. 1 56. Bullion and specie do. 1 57. Foodgrains do. I 58. Pepper At the point of last 5 purchase in the State by a dealer who is hable to tax under section 5 59. Dried ginger do. 5 60. Lemongrass oil do. 5 61. Turmeric do. 5 62. Arecanut do. 5 63. Nuxvomica do. 5 64. Laurel oil do. 5 65. Kacholam do. 5 I y~ 66. Cashewnut with or without shells do. 4 . I Explanatzon.-Where a tax has been levied m respect of cashewnut I without shell (cashewnut kernel), the tax, if any, levied and collected in respect of the cashewnut with shell from which sucl-t kernel is produced shall be refunded. 0 ) 81 SCHEDULE-(cont.) St. No. Desmptwn of the goods Pomt of lrrry Rate of lax (Per cent) (I) (2) (3) (4) G7. Coconut fibre, coir yarn and their At the point of last 2 products purchase in the State by a dealer who liable to IS tax under sec- tiOn 5 68. Aloe yarn and Its product~ do. 2 69. Prawns and lob~ters do. 2 70. Sugar cane do. 2 71. Rubber do. 2 72. Dried fish do. l THE SECOND SCHEDULE Declared goods in respect of which a single point tax only is leviable under sub-section (1) or sub-section (2) of section 5 ' · St. No. DescrijJtzon ofthr goods Pom' of levy Rate of tax (Per cent) (l) (2) (3) (4) l . Car.damom At the pomt of first sale in the State by a dealer who is hable to tax under sec tion 5 2 2. Oil seeds as defined in section 14 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956), other than coconut and copra, gmundnut and cardamom do. 2 3. (z) Coal, mcludmg LOke all Its 111 1 forms do. 2 (1i) Iron and steel, that is to say- (a) P1g iron and iron scrap; (h) Iron plates sold in the ~arne fo1 m in which they are dire ctly produced by the rolling I mill ; (c) Steel scrap, steel· ingot~, steel 1 billet~, steel bars and rods ; 1 (d) (z) Steel plates, ( Sold in the ~~ do 2 ( iz) Steel sheets, I same form (ui) Sheet bars I in which I and tin bars, }-they . are I (w) Rolled steel directly I sections, Jp roduced 1 (v) Tool alloy by the rol-J steel ling mill 3!5-6 -- 82 SCHEDULE-(c ont.) Sl • .No. Description of the goods Pomt of levy Rate of tax (Per cent) (I) (2) (3) (4) (zti) Jute, that is to say, the fibre ex At the point of tracted from plants belonging to first sale in the species corchorus capsularis and the State by a corchorus olztonous and the fibre dealer who is known as mesta or bzmlz extracted hable to tax from plants of the spec1es hzbiscus under sec cannapmus and hzbiscus sabdariffavar tion 5 2 altzsstma, whether baled or other WISe 4. (z) Cotton, that is to say, all kinds of cotton (indigenous or imported) in its unmanufactured.state, whether gmned or ungmned, baled, pressed or otherwise, but not mcludmg cotton waste do. (zt) Cotton yarn, other than handspun -yarn, but not includmg cotton yarn waste do. 5. Hides and skins whether in a raw or At the point of dressed state last purchase in the State by a dealer who is liable to tax under section 5 2 6. Coconut and copra do. 2 ExjJlanatwn.-Where a tax has been levied m respect of copra, the tax, if any, levied and collected m respect of the coconut from which such copra is produced shall be refunded. 7. Groundnut do. 2 I THE THIRD SCHEDULE Goods exempted from tax under section 9 1. Salt. 2. Handspun yarn and any cloth woven on handloom wholly with handspun yarn. i 3. Cloth woven on handlooms wholly or partly with mill yarn, I whether fringed or hemmed. )>- 4. Rice issued from Central or State Government depots for sale through fair price shops declared as such by the Government I by notification in the Gazette. 5. Sugar as defined m item No. 1 of the First Schedule to the Central Excises and Salt Act, 1944. I ·1 83 SCHEDULE-(c ont.) 6. Tobacco as defined in item No. 4 of the Fxrst Schedule to the Central Excises and Salt Act, 1944. 7. Cotton fabrics, silk fabrics, woollen fabrics and rayon or arti ficial silk fabrics as defined in items Nos. 19, 20, 21 and 22 respectively of the First Schedule to the Central Excises and ~ Salt Act, 1944. 8. Green tea leaves. 9. Plantain frmts, bananas, mangoes, jack fruits, and oranges. 10. Vegetables (other than green gmger), whether roots, green fruits or leaves, used for human consumption including tapioca, yam, potatoes, lime, sabola and tomatoes, except their manufactured products. E:rpla11atzon.-The term "vegetables" shall not include any goods ofthe descnption specified in the First or Second Schedule. II. Toddy. Explanatzon.-" Toddy" means the fermented or unfermented JUice drawn from coconut, palmyra, date or any other kind of palm tree, but shall not include juice drawn into receptacles freshly coated inter nally with lime or otherwise treated so as to prevent any fermentatiOn. 12. Cooked food including coffee, tea and like articles served in a hotel, restaurant or any other place by a dealer whose total turnover in respect of such food is less than twenty thousand rupees in a year. 13. Cloth woven on power loom. 14. Lime and limcshell. 15. Eggs. ) 3f5-6a