THE BOMBAY SALES TAX ACT, 1959

(Bombay Act No. LI of 1959)[bst1] [bst1] *

An Act to consolidate and amend the law relating to the levy of tax on the sales or purchase of certain goods in the State of Bombay.

CHAPTER I

PREAMBLE

1. Short title, extent and commencement.-(1) This Act may be called the Bombay Sales Tax Act,1959.

(2)It extends to the whole of the ¹ [bst2] [bst2] [State of Maharashtra]

² [bst3] [bst3] [ * * * ]

THE BOMBAY SALES TAX ACT, 1959

(Bombay Act No. LI of 1959)

2. Definitions.-In this Act, unless the context otherwise requires,-

(1) "agriculture" with all its grammatical variations and cognate expressions, includes horticulture, the raising of crops, grass or garden produce, and also grazing; but does not include dairy farming, poultry farming, stock breeding or the mere cutting of wood or grass or gathering of fruit ¹ [bst4] [bst1][or raising of man-made forests or rearing of seedlings or plants];

² [bst5] [bst2][Explanation.-For the purposes of this clause and clause (5A), the expression "forest" means the forest to which the Indian Forests Act, 1927, in its application to the State of Maharashtra, applies;]

(2) ³ [bst6] [bst3]["agriculturist" means a person who cultivates land personally, for the purpose of agriculture.

(3) "appointed day" means ⁴ [bst7] [bst4][the 1st day of January 1960];

(4) "Authorization" means an authorization granted under section 24;

(5) "Authorized dealer" means a Registered dealer who holds an Authorization;

The Bombay Sales Tax Act, 1959

TCHAPTER II

Incidence and Levy of Tax

3. Incidence of Tax.-

(1) Every dealer whose turnover either of all sales or all purchases, made during-

(i) the year ending on the 31st day of ¹ [bst8] [bst1][March 1981], or

(ii) the year commencing on the 1st day of ² [bst9] [bst2][April 1981],

has exceeded or exceeds the relevant limit specified in sub-section (4), shall until such liability ceases under sub-section (3), be liable to pay tax under this Act on his turnover of sales, and on his turnover of purchases, made on or after the ³ [bst10] [bst3][notified day]:

Provided that, a dealer to whom sub-clause (i) does not apply but sub-clause (ii) applies ⁴ [bst11] [bst4][and whose turnover either of all sales or of all purchases] ⁵first exceeds the relevant limit specified in sub-section (4) after the ³ [bst12] [bst5][notified day] shall not be liable to pay tax in respect of sales and purchases which take place up to the time when his turnover of sales, or his turnover of purchases as computed from the 1st day of ²[bst13] [bst6][April 1981], first exceed the relevant limit applicable to him under sub-section (4).

(2) Every dealer whose turnover, either of all sales or of all purchases made during any year commencing on the 1st day of April, being a year subsequent to the years mentioned in sub-section (1) first exceeds the relevant limit, specified in sub-section (4), shall, until such liability ceases under sub-section (3), be liable to pay tax under this Act with effect from the said date :

Provided that, a dealer shall not be liable to pay tax in respect of such sales and purchases as take place during the period commencing on the 1st day of April of the said year up to the time when his turnover of sales or, turnover of purchases as computed from the 1st day of April of the said year, ⁵ [bst14] [bst7][does not exceed] the relevant limit applicable to him under sub-section (4).

(3) Every dealer who has become liable to pay tax under this Act, shall continue to be so liable until his registration is duly cancelled; and upon such cancellation his liability to pay tax, other than tax, already levied or leviable, shall until ⁶ [bst15] [bst8][his turnover of sales or turnover of purchases] again first exceeds the relevant limit specified in sub-section (4), ceases :

Provided that where the dealer becomes liable to pay tax again in the same year in which he ceased to be liable as aforesaid, then in respect of such sale and purchases as take place during the period commencing on the date of the cessation of liability to tax and ⁷ [bst16] [bst9][Upto the time when] his turnover of sales or of purchases ⁸ [bst17] [bst10][does not exceed] the relevant limit applicable to him under sub-section (4), not tax shall be payable.

The Bombay Sales Tax Act, 1959

CHAPTER II

Incidence and Levy of Tax

(4) for the purposes of this section the limits of turnover shall be as follows :-

(i) Limit of turnover ¹[bst18] [bst1][Rs. 1,00,000]

(a) in the case of a dealer who is an importer and the value of taxable goods sold or purchased by him during the year is not less than ²[bst19] [bst2][Rs. 10,000] and the value of any goods whether taxable or not brought by him into the State or dispatched to ³[bst20] [bst3][from outside the State during the year is not less than Rs. 25,000];

(b) in the case of a dealer who is a manufacturer and the value of taxable goods sold or purchased by him during the year is not less than ²[bst21] [bst4][Rs. 10,000] and the value of any goods whether taxable or not ⁴[bst22] [bst5][manufactured by him during the year is not less than Rs. 25,000].

⁵[bst23] [bst6][(ii) Limit of turnover Rs. 2,50,000.

In case of a dealer to whom clause (i) does not apply and who holds Liquor Vendor License in Form FL-I, FL-II, FL-III or FL-IV (including temporary club licences) under the Bombay Foreign Liquor Rules, 1953 or License in Form E under the Special Permits and license Rules, 1952, or license in Form CL-II, CL-III or CL/FL/TOD/III under the Maharashtra Country Liquor Rules, 1973.

(iii) Limit of turnover Rs. 5,00,000

In any case, including the case where a dealer has not become liable to pay tax under clause (i) or, as the case may be, clause (ii), where the value of taxable goods sold or purchased by the dealer during the year is not less than Rs. 10,000."]

(5)For the purpose of calculating the limit of turnover for liability of tax,-

(a) except as otherwise expressly provided the turnover of all sales or as the case may be, the turnover of all purchases shall be taken, whether such sales or purchases are taxable or not; and

(b) the turnover shall include all sales and purchases made by dealer on his own account and also on behalf of principals mentioned in his accounts.

Notes :- LEVY & INCIDENCE OF TAX: (Section 3): The limits of turnover is increased to give benefit to small dealers. The small dealers are relieved from the responsibilities of filing returns, assessments etc.

Sub-section (4) of Section 3 is amended to give necessary changes as follows.

(i) Limits of turnover Rs. 1,00,000 :

(a) In the case of a dealer, who is an importer, and the value of taxable goods sold or purchased by him during the year is not less than Rs. 25,000/- and the value of any goods whether taxable or not brought by him into the State or dispatched to him from outside the State during the year is not less than Rs. 25,000/-

(b) In the case of a dealer who is a manufacturer, and the value of taxable goods sold or purchased by him during the year is not less than Rs. 25,000/- and the value of any goods whether taxable or not manufactured by him during the year is not less than Rs. 25,000/-

(ii) Limit of Turnover Rs. 2,50,000 :

In case of a dealer to whom clause (i) does not apply and who holds Liquor Vendor License in Form FL-I, FL-LI, FL-III OR FL-IV (including temporary club licenses) under the Bombay Foreign Liquor Rules, 1953, 1952 or License in Form E under the Special Permits and License Rules, 1952, or License in Form CL-II, CL-III or CL/FL/TOD/III under the Maharashtra Country Liquor Rules, 1973.

(iii) Limit of Turnover Rs. 5,00,000 :

(Also Refer Tr. Cir. No. 11T of 2004, dated 8th July, 2004).

The Bombay Sales Tax Act, 1959

CHAPTER II

Incidence and Levy of Tax

4.Liability of dealer registered under Act No. 74 of 1956 to pay tax.-(1)Notwithstanding anything in section 3, a dealer who is registered under the Central Sales Tax Act, 1956, but who is not liable to pay tax under the said section 3, shall nevertheless be liable to pay tax-

(a) on sales of goods in respect of the purchase of which he has furnished a declaration under sub-section (4) of section 8 of the Central Sales Tax Act, 1956, and

(b) on sales of goods in the manufacture of which the goods so purchased have been used;

and accordingly, the provisions of ¹ [bst24] [bst1][sections 7, 8, 8A, 11 and 12] shall apply to such sales, as they apply to the sales made by a dealer liable to pay tax under section 3.

(2)Every dealer who is liable to pay tax under sub-section (1) shall for the purposes of sections 32, 33, 34, 35, 36, 37, 38, 46, 47 and 48 be deemed to be a registered dealer.

The Bombay Sales Tax Act, 1959

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Incidence and Levy of Tax

5.Sales and purchases of certain goods free from all taxes.-(1)Notwithstanding anything in this Act, but subject to the conditions or exceptions (if any) set out against each of the goods specified in column 3 of Schedule A, no tax shall be payable on the sales or purchases of any goods specified in that Schedule.

(2)The State Government may by notification in the Official Gazette add to, or enlarge, any entry in Schedule A, or relax or omit any condition or exception specified therein; and thereupon, the said Schedule shall be deemed to be ¹ [bst25] [bst1][amended accordingly; and the amendment so made shall take effect from the date of the publication of the notification in the Official Gazette or from such other date as may be mentioned therein].

The Bombay Sales Tax Act, 1959

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Incidence and Levy of Tax

6.Taxes payable by a dealer.-Subject to the provisions of this Act and to any rules made thereunder, there shall be paid by every dealer, who is liable to pay tax under this Act, the tax or taxes leviable in accordance with the provisions of this Chapter.

The Bombay Sales Tax Act, 1959

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Incidence and Levy of Tax

¹ [bst26] [bst1][7.² [bst27] [bst2][Levy] of sales tax or general sales tax on Declared goods specified in Schedule B.-(1)There shall be levied a sales tax, on the turnover of sales of Declared goods specified in Schedule B, at the rate set out against each of them in column (3) thereof, but after deducting from such turnover-

(i) resales of goods ³ [bst28] [bst3][* * *] on the purchase of which the dealer is liable to pay purchase tax under section 14;

(ii) resales of goods ³ [bst29] [bst4][* * *] purchased by the dealer on or after the appointed day from a Registered dealer, otherwise than on a declaration furnished under section 11 or 12, if the requirements of section 12A are satisfied;

(iii) resales of goods ³ [bst30] [bst5][* * *] purchased by the dealer on or after the appointed day from a dealer liable to pay tax under section 4, if a certificate as provided in sub-section (2) of section 12A is furnished; and

⁴ [bst31] [bst6][(iv) sales of goods to a Commission agent holding a Permit who purchases on behalf of a principal, upon such Commission agent furnishing a declaration as provided in section 12.]

⁵ [bst32] [bst7][(v) sales of goods to a dealer holding the Certificate of Entitlement, who purchases such goods by furnishing a declaration as provided in clause (g) of section 12.".

⁶ [bst33] [bst8][(2)*** deleted]

COMMENTS : By this section, the provisions of Section 7 of the Bombay Sales Tax Act were amended so as to clarify that in respect of the declared goods the deduction under Section 7(2) will be available only if the tax is levied at an earlier stage. (Refer Trade Circular No. 10T of 1994)

This section is amended so as to levy multipoint tax on the goods covered by entry 6 of schedule 'B' w.e.f. 1.10.2002 resale claim will not be allowed for any goods covered by entry No. 6 of schedule 'B'. Entry 6 of schedule 'B' covers Iron and Steel with sub-entry No. (i) to (xvi)

Notes :- LEVY OF TAX ON DECLARED GOODS: (Section 7): As we are aware that, the Government has levied VAT on Iron & Steel Goods for the period 01-10-2002 to 30-04-2003. The levy was withdrawn with effect from 01-05-2003 and it was through a notification entry Group A-154 but without amending Section itself Now the appropriate amendment is made to Section itself with effect from 01-05-2003 by deleting the words "other than those covered by Entry 6 of Schedule B". (Also Refer Tr. Cir. No. 11T of 2004, dated 8th July, 2004).

The Bombay Sales Tax Act, 1959

CHAPTER II

Incidence and Levy of Tax

¹ [bst34] [bst1][8 ² [bst35] [bst2][Single point levy of ] sales tax on goods specified in Schedule C.]- ³ [bst36] [bst3][(1)]There shall be levied a sales tax on the turnover of sales of goods specified in Schedule C at the rate set out against each of them in column 3 thereof, but after deducting from such turnover :-

(i) resales of goods on the purchase of which the dealer is liable to pay purchase tax under section 14;

(ii) resales of goods ⁴ [bst37] [bst4]["except those covered by ⁵ [bst38] [bst5][entries 20 and 22] of PART II of Schedule C,"] purchased by the dealer on or after the appointed day from a registered dealer, otherwise than on a declaration furnished under section 11 or 12, if the requirements of section 12A are satisfied :

⁶ [bst39] [bst6][Provided that, resales of goods purchased by the dealer from a registered dealer during the period commencing on the 1st July 1981 and ending on the day immediately preceding the date of commencement of the Maharashtra Tax Laws (Levy and Amendment) Act, 1988, on a declaration furnished under section 8A shall not be deducted from such turnover].

COMMENTS : The resales of Foreign liquor covered by C-II-22 are excluded from the resales admissible. Thus the resales of Foreign liquor will not be admissible as deduction of second sale.

⁷ [bst40] [bst7][* * * Proviso was deleted]

(iii) resales of goods purchased by the dealer on or after the appointed day from a dealer liable to pay tax under section 4, if a certificate as provided in sub-section (2) of section 12A is furnished; and

⁸ [bst41] [bst8][(iv) Sales of goods to a commission agent holding a Permit who purchases on behalf of a principal, upon such Commission agent furnishing a declaration as provided in section 12.]

⁹ [bst42] [bst9][(v)sales of goods to a dealer holding the Certificate of Entitlement, who purchases such goods by furnishing a declaration as provided in clause (g) of section 12.;]

¹⁰ [bst43] [bst10][(2) *** deleted w.e.f. 1-5-1998]

¹¹ [bst44] [bst11][Explanation:- For the purpose of this section the expression "resale of goods" means the resale of those goods on the sale of which tax was leviable under this section at the time of their purchase."]

COMMENTS : Now the resells of Country liquor will also be not admissible as resells. The sales of foreign liquor covered by C-II-22 and Country liquor covered by C-II-20 will be liable to tax at very stage. Amendment to rule 42L is expected to allow the set-off of the tax paid on purchases.

Departmental Views

Disallowance of Resale claim: Goods manufactured by KVIC units.

The Nagpur Bench of the Bombay High Court had held in an unreported case (of M/s.Friends Stores, Sales Tax Ref.No.24 of 1970, decided on 28.1.2) that before resale can be allowed to C Schedule goods under section 8 of the Act, the corresponding purchases should also be of Schedule-C goods. The court had held that if at the time of purchase the goods are covered by Schedule A, then resale will not be available under section 8 even if the goods are covered by Schedule-C at the time of sale. This view had been followed in certain judgements of the Sales Tax Tribunal in other cases where the first seller was a Unit certified by a Khadi and Village Industry Commission/Board. However, the Sales Tax Tribunal appears to have taken a contrary view in one case (M/s.Shoe Bazer Vs. State of Maharashtra S.A.No.188 of 1997). In order to remove any perceived ambiguity on this issue, the section has now been amended with retrospective effect so as to reiterate the ratio of the High Court judgement. (Sources T. C. No. 10-T of 1999 dt. 23.4.1999)

The Bombay Sales Tax Act, 1959

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Incidence and Levy of Tax

¹ [bst45] [bst1][8A. Power to specify points of sale at which goods may be taxed-. (1) Notwithstanding anything contained in this Act, but subject to the condition of previous publication, the State Government may, by notification in the Official Gazette, and subject to such conditions, if any, as may be stated therein, specify the point of sale at which any goods or class of goods, except Declared goods , may be taxed, and on the issue of any such notification, such goods or class of goods, shall be exempt from the levy of tax under section 8.

(2) There shall be levied a sales tax on the turnover of sales of goods specified in Schedule C and notified under sub-section (1), at the rate set out against each of them in column 3 of the said Schedule, but after deducting from such turnover,-

² [bst46] [bst2][(a) Sales of goods to a Commission agent holding a Permit, who purchases on behalf of a principal, upon such Commission agent furnishing a declaration as provided in section 12;]

(b) sales of goods or resales of goods to a Registered dealer, who certifies in the prescribed declaration that the goods purchased by him are intended for sale by him.

³ [bst47] [bst3][(3)*** deleted w.e.f. 1-5-1998.]

The Bombay Sales Tax Act, 1959

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Incidence and Levy of Tax

¹ [bst48] [bst1][8B.Provisions of section 8A not to apply to declared goods.-Nothing in section 8A as it existed before the commencement of the Maharashtra Tax Laws (Levy and Amendment) Act, 1988, shall apply or shall be deemed ever to have applied to Declared goods during the period commencing on the 1st July 1981 and ending on the day immediately preceding the date of such commencement.]

The Bombay Sales Tax Act, 1959

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Incidence and Levy of Tax

¹ [bst49] [bst1][12B. On and after specified dates certain prescribed forms to be obtained from prescribed authority.- The State Government may, by notification in the Official Gazette, direct that on and after such dates as may be specified therein, the form of ² [bst50] [bst2][any of the certificates or declarations under section 11 or section 12 or under any notification issued under section 41] ³ [bst51] [bst3][or under any rule] shall be obtained from the prescribed authority subject to the conditions prescribed in that behalf].

COMMENTS : By this Section, the provisions of section 12B of the B.S.T. Act were amended so as to empower the State Government to issue declarations prescribed under Rules. This amendment will continue in the same form, (Refer Circular No. 10T of 1994).

The Bombay Sales Tax Act, 1959

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Incidence and Levy of Tax

¹ [bst52] [bst1][13. Purchase tax payable on certain purchases of goods ² [bst53] [bst2][**].- (1) Where a dealer, who is liable to pay tax under the provisions of this Act, purchases any goods specified in Schedule B or C from a person or a Government, who or which is not a ³ [bst54] [bst3][dealer or a dealer who is not a registered dealer] and treats them as capital assets any time after such purchase, then there shall be levied, subject to the provisions of sub-section (2) of section 7, a purchase tax on the turnover of such purchases at the rate set out against each of such goods in the Schedules aforesaid.

(2) Subject to the provisions contained in sub-section (1), where a dealer, who is liable to pay tax under the provisions of this Act, purchases any goods specified in Schedule B or C from a person or Government, who or which is not a ⁴ [bst55] [bst4][dealer or a dealer who is not a registered dealer] then unless the goods so purchased are resold by the dealer, there shall be levied, subject to the provisions of sub-section (2) of section 7, a purchase tax on the turnover of such purchases at the rate set out against each of such goods in the Schedules aforesaid.

Explanation.- For the purposes of this section, the term "capital assets" shall have the same meaning as assigned to it in the income Tax Act,1961.].

COMMENTS : During the period from 15-1-1975 to 31-3-1989, the section 13 provided for levy of purchase tax on the purchases of goods which are purchased from a person who is not a registered dealer, when they are not resold. Bombay High Court, in case of M/s Billion Plastics (98 STC 184) had held that the car purchased from a person cannot be considered for levy of P.T. u/s 13 as it is not purchased from the dealer. According to the Bombay High Court section 13 does not provide for levy of PT on all purchases of goods made by a dealer who is liable to pay tax from any and every person other than a regd. dealer. Only the purchases made from the dealers (and not from the persons who are not dealers) can be taxed. To overcome this recent judgement of the Bombay High Court the old section 13 has been revived and is amended by adding the word 'dealer". Thus the purchases made from a person who is not a dealer will now attract PT on certain conditions. However the Sec. 16 of the Ordinance i.e. validation and savings clause, makes it clear that if PT is not paid on purchases made from persons who are not dealers and the levy of such PT was challenged in appeal in writing then inspite of the ordinance such PT will not be levied under the Ordinance. However the burden will be on the dealer claiming that no PT is payable to prove that the vendors from whom such purchases were made are not dealers. The effect and the purpose of this amendment is the same as of re-enactment of Sec. 13. This amendment is effective from 1-4-1989.

The Bombay Sales Tax Act, 1959

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Incidence and Levy of Tax

¹ [bst56] [bst1][13A.Levy of purchase tax in certain cases.-Where a dealer, holding a Certificate of Entitlement, purchases any goods on a declaration referred to in clause (g) of section 12, there shall be levied a purchase tax on the turnover of such purchases at such rate not exceeding four percent., as may be prescribed and different rates may be prescribed for different classes of dealers.]

Comments: E.C. Holders under deferral scheme can purchase the raw materials on declaration without payment of tax. However they have to pay P.T. u/s 13A at 4% on all purchases made against the declarations. (Refer Trade Circular No. 27T of 1996). [w.e.f. 15-5-1997]

The Bombay Sales Tax Act, 1959

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Incidence and Levy of Tax

¹ [bst57] [bst1][13B. Purchase tax payable on specified goods .- (1)Notwithstanding anything contained in this Act, but subject to the condition of previous publication, the State Government may, by notification in the Official Gazette, specify the goods or classes of goods (hereinafter referred to in this section as "the specified goods") in respect of which purchase tax shall be leviable on the turnover of purchase of the specified goods effected by a dealer liable to pay tax under this Act at the rate of purchase tax leviable in respect of the specified goods under schedule B or Schedule C, as the case may be, unless such purchased goods are resold by such dealer:

² [bst58] [bst2][*****]

(2) Where the specified goods are declared goods, the purchase tax leviable under sub-section (1) shall be subject to the provisions of sub-section (2) of section 7.

(3) On issue of the notification under sub-section (1), nothing in sections 7,8 ³ [bst59] [bst3] [or 13] shall apply to the sale or purchase, as the case may be, of the specified goods.]

The Bombay Sales Tax Act, 1959

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Incidence and Levy of Tax

¹ [bst60] [bst1][14. Liability to purchase tax for contravention of terms of declaration.- (1) Where any dealer or a Commission agent has purchased any taxable goods either before or after the notified day, under a certificate or declaration given by him under section 8A, 11 or 12 and the conditions, recitals and undertakings of such certificate or declaration are not complied with then such dealer shall be liable to pay purchase tax on the purchase price of such goods and the purchase tax shall be levied at the rate set out against each of such goods in column 4 of Schedules B and C and accordingly he shall include the purchase price thereof in his turnover of purchases in his return under section 32 which he is to furnish next thereafter :

² [bst61] [bst2][Provided that, where the dealer holding a Certificate of Entitlement has purchased goods directly or through a commission agent under the declaration given by him under section 12, and has used them in the manufacture, and contrary to the recital of such declaration, despatched the goods so manufactured to his own place of business or to his agent's place of business situated outside the State within India, where he or, as the case may be, his agent is registered under the Central Sales Tax Act, 1956, then, the rate of purchase tax shall be six per cent.]

Comments: When the E.C. holder purchases the goods against declarations and contravenes the recitals he is liable to pay purchase tax at the rate of 6%. Such purchase tax is attracted when the manufactured goods are despatched to the branch outside the State. [w.e.f. 15-5-1997].

Provided further that, where purchase tax is payable by a dealer under this sub-section by reason of the fact that he has failed to comply with the conditions, recitals or undertakings of a declaration issued under section 11 or 12, then an amount equal to the tax paid or payable under section 11 ³ [bst62] [bst3][or purchase tax paid or payable under section 13A or, as the case may be, under section 13AA] ⁴ [bst63] [bst4][***] shall be set off against purchase tax so payable.

⁵ [bst64] [bst5][(1A) Where any person or dealer not entitled to issue any declaration prescribed under the provisions of section 8A, 11 or 12, purchases any taxable goods by issuing such declaration, then without prejudice to the other provisions of this Act, such person or dealer shall be liable to pay purchase tax on the purchase price of such goods and the purchase tax shall be levied at the rate set out against each of such goods in column 4 of Schedules B and C ; and accordingly he shall include the purchase price in his turnover of purchases in his return under section 32 which he is to furnish next thereafter :

The Bombay Sales Tax Act, 1959

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Incidence and Levy of Tax

Provided that, if the dealer liable to pay purchase tax as aforesaid has been assessed to such purchase tax and if he has paid such tax, then the dealer from whom such goods are purchased shall be exempted from payment of tax on sales of such goods to the extent such purchase tax has been paid.]

(2) If, in respect of any transaction by a Commission agent made under a declaration given by him under section 11 or 12, the Commission agent-

(a) purchase the goods at one rate, and passes them on to his principal at an increased rate (such increase not being by reason only of his commission or packing, carriage, freight or insurance of the goods and other reasonable charges incidental to their despatch or charged according to trade practice); or

(b) acts for non-existent principal; or

¹ [bst65] [bst1][(c) fails to obtain from his principal a declaration as required under clause (2) or clause (4) or as the case may be, clause (6) of section 11 or under clause (e) of section 12;

the Commission agent shall be liable to pay purchase tax on the purchase price of the goods so purchased and the purchase tax shall be levied at the rate set out against each of such goods in column 4 of Schedule B and C accordingly he shall include the purchase price in his turnover of purchases in his return under section 32, which he is to furnish next thereafter :

² [bst66] [bst2][Provided that, where such purchases are made by furnishing a declaration issued under section 11, an amount equal to the tax paid under section 11 shall be set off against the purchase tax so payable.]

(3)If any question arises as to whether the purchase price of goods purchased under a declaration given under section 8A, 11 or 12 is or is not liable to be included, in the turnover of purchases of a dealer or Commission agent under this section the burden of proving that it shall not be liable to be so included shall be upon such dealer or, as the case may be, the Commission agent.]

Notes :By this Section, Section 14 of the B.S.T. Act was amended. Accordingly, where a person or a dealer, not being entitled to issue any declaration prescribed under Sections 8A, 11 or 12, issues such declaration while purchasing any goods, then such person or dealer becomes liable to pay purchase tax without prejudice to the other provisions of the Act. This amendment will continue with the modification that in such circumstances, where the purchasing person/dealer has paid the purchase tax, the selling dealer will be exempted from payment of tax on that particular transaction to the extent of the purchase tax paid by the purchaser. (Refer Circular No. 10T of 1994)

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Incidence and Levy of Tax

15.Liability to purchase tax on certain stocks of goods.-(1)Where a dealer, liable to pay tax under this Act,-

(a) dies, or

(b) transfers or otherwise disposes of his business, or effects any change in the ownership thereof, or

(c) is a firm, company, society or other association of persons, or a trust, which is dissolved, liquidated, wound-up, or revoked, or

(d) is a Hindu undivided family, and the family is partitioned, or

(e) discontinues his business,

and the stock of goods held by such dealer immediately before the death, transfer, disposal, change, dissolution, liquidation, winding up, revocation, partition or discontinuance, ¹ [bst67] [bst1][as the case may be, includes taxable goods purchased by him on a certificate given by him under section 11 or 12, then, there shall be levied a purchase tax on the purchase price of such taxable goods at the relevant rate or purchase tax applicable thereto as if such dealer had become liable to pay purchase tax on such goods under section 14 :]

Provided that, where the business carried on by such dealer is continued after such death, transfer, disposal, change, dissolution, liquidation, winding up, revocation or partition, as the case may be, the person carrying on such business shall be liable to pay purchase tax ² [bst68] [bst2][in respect of the stock of taxable goods, purchased by such dealer, under section 13 or, as the case may be, section 13AA,] if the goods are not resold by such person :

Provided further that, if the person carrying on such business shows to the satisfaction of the Commissioner that,-

(a) any taxable goods purchased by such dealer on a certificate given by him under section 11 or 12 have been used for the purpose certified or, as the case may be, resold or dispatched in the manner and within the period certified, or

³ [bst69] [bst3][(b) any goods purchased by such dealer have been resold by such person.]

(2) Where the certificate of registration issued to a dealer is cancelled on the ground that in the previous year his turnover of purchases or his turnover of sales did not exceed the relevant limit applicable to him under sub-section (4) of section 3,⁵[bst70] [bst4][or as provided in clause (a) of sub-section (8) of section 22] and the stock of goods held by him immediately before such cancellation includes taxable goods purchased by and the stock of goods held by him immediately before such cancellation includes taxable goods purchased by him on a certificate given under section 11 or 12, there shall be levied a purchase tax on the purchase price of such goods at the relevant rate of purchase tax applicable thereto, as if the dealer had become liable to pay purchase tax under ⁴ [bst71] [bst5][section 14].

NOTES :- PURCHASE TAXON Section 15 is being amended to levy of purchase tax on stock under certain situation. Now it also provided in Section 22, that Registration Certificates of small dealers shall be cancelled under circumstances mentioned there. To cover up situations of Section 22(8), wherein Registration Certificate shall be cancelled and stocks hold by such dealer, levy of purchase lax is provided. (Also Refer Tr. Cir. No. 11T of 2004, dated 8th July, 2004).

The Bombay Sales Tax Act, 1959

CHAPTER II

Incidence and Levy of Tax

¹ [bst72] [bst1][15-1A. Levy of surcharge :- In case of a dealer liable to pay tax under any provisions of this Act, the tax payable before adjustment of any set-off, drawback or refund on sales and purchases made by him at the rates of sales tax or purchase tax, as the case may be, shall be increased by the levy of surcharge at the rate of ten per cent. of the tax so payable:

Provided that, in calculating the surcharge payable by the dealer, the tax payable under the other provisions of this Act in respect of sales or purchases of declared goods shall not be taken into consideration.

Explanation.-For the purposes of this section, ‘tax payable’ means the aggregate of the following:-

(a) in case of sales or purchases of goods exempted in part or full from the payment of any tax under section 41, the sales tax and purchase tax paid or payable;

(b) in any other case, the sales tax and purchase tax levied or leviable, without adjustment of any drawback, set-off, or as the case may be, refund granted in accordance with the provisions of section 42 or the rules.]

Comments: Levy of Surcharge is provided by clause 7 of the Act No. 25 of 1999. As per declaration under the Maharashtra Provisional Collection Of Taxes Act, 1962 this provision comes in to effect immediately i.e. from 5.00 p.m. on 31-3-99. [See Trade Circular no. 8-T dated 1-4-99].

Old `Additional Tax' which was effective from 1-4-75 to 1-10-95 is revived under the name of "Surcharge". "Surcharge" is payable by the dealers whose annual tax liability exceed Rs. 1 lac. Earlier the Addl. Tax was payable by the dealers having turnover of more than Rs. 10 lacs. Now the liability is dependent on the total taxes payable and not on the volume of the turnover of sales and purchases. For limit of Rs. 1 lac tax payable under both B. S. T. and C.S.T. is to be considered. The tax under B.S.T. is to be taken gross before adjusting the set-off. For the limit of Rs. 1 lac tax payable by the dealer taxes payable for all his branches will have to be considered. Once the limit of Rs. 1 lac is exceeded the Surcharge is payable on the taxes payable from the beginning of the year and exemption for the Surcharge on the first 1 lac cannot be claimed. Once the limit is exceeded then the Surcharge is to be paid with the returns till the end of that year. The limit of Rs. 1 lac tax will have to be watched every year. The year in which it does not exceed Rs. 1 lac, the liability to pay Surcharge will not be attracted.

The rate of Surcharge is 10% of the sales tax and purchase tax payable before adjusting the set-off. The Surcharge is payable on the taxes payable on all the goods except declared goods. Surcharge is not payable on declared goods. Earlier the additional tax was at 15% of the tax payable and it was not to be paid on taxes payable on certain goods like agriculture implements, betelnuts, safety matches, vanaspati, footwear, vegetable oil etc.

The Surcharge can be collected from the customers. Earlier there was prohibition for collecting Addl. Tax.

Unlike the old provisions of Addl Tax, there is no legal allocation of funds out of the collection of surcharge for the benevolent purpose like Employment Guarantee Scheme.

There is no Surcharge on the T.O.T.

No set-off is admissible of the surcharge paid on the purchases.

The section 15-1A is substituted from 1-4-2001. Earlier Surcharge was payable only by big dealers i.e. dealers paying tax more than Rs. 1 lac. But now all dealers, irrespective of the turnover or the amount of tax payable, who are liable to pay tax have to pay 10% Surcharge on the Sales Tax and purchase tax payable by him. No Surcharge is payable on the Sales of declared goods. If the sales are exempted from payment of only Sales Tax by notification u/s 41, then unless specific exemption is granted for Surcharge also, the surcharge is attracted. For calculation of Surcharge the gross amount of Sales Tax and purchase tax, without reducing set-off is to be considered. There is no Surcharge on Turnover Tax or Resale Tax. [[Refer circular No.3T of 2001 dt. 16-4-2001]

The Bombay Sales Tax Act, 1959

CHAPTER II

Incidence and Levy of Tax

Departmental Views

1. No prohibition against collection of Surcharge :

Queries are received as to whether 'Surcharge' can be collected from customers. In this regard, the position is already clarified in para 2(iii) of Trade Circular No.8-T of 1999 dt. l.4.1999 that there is no prohibition against collection of `Surcharge'.

2. Surcharge collected separately in anticipation of liability will not be forfeited.

The liability for Surcharge starts from the point of time when the total gross tax liability of a dealer, before adjustment of any set-off including Central Sales Tax liability exceeds Rs.1 lakh in any year. Then such dealer is liable for Surcharge on his Bombay Sales Tax liability after excluding tax liability of declared goods on the sales effected from 1st April for that year onwards. As there is no prohibition of collection of Surcharge, if a registered dealer, in anticipation of his Surcharge liability, collects such tax from 1st April onwards and, subsequently during the same year his tax liability exceeds Rs.1 lakh, then the Surcharge collection made prior to such liability for that year will not be forfeited. However, if a dealer starts collecting Surcharge from 1st April of the Year onwards and if he is not li ` able for Surcharge during, that year, then such collection is liable for forfeiture as per the provisions of Law.

3. For the purpose of "the aggregate of taxes payable" appearing in Explanation to section 15-IA. shall not be construed as the tax nationally payable on the goods which are partially or fully exempted under section 41.

In this regard it is clarified that, when the goods are fully exempted or are subjected to reduced rate of tax by way of notification under section 41, then for the purpose of computing tax liability of Rs.1 lakh, the tax actually paid shall be considered. The tax notionally payable shall not be considered for computing "the aggregate of taxes payable".

C. Inter-State sales vis-a-vis liability for turnover tax and Surcharge.

Queries are received as to whether the rate of Central Sales Tax are required to be enhanced by Turnover Tax and Surcharge in respect of inter-State sales. In this regard, the points are clarified as under :-

1. Inter-State sales of Declared goods unaffected. (Whether supported by C/D Form declaration or not)

Levies of Turnover Tax and Surcharge are applicable only in respect of goods covered by Schedule-C. Declared goods covered by Schedule-B are out of the purview of these levies, Therefore, in respect of inter-State sales of declared goods, the position of rates-of Central Sales Tax remains unaffected even after introduction of these levies. Hence inter-State sales of `Declared goods (whether supported by C/D Form declaration or not) continue to attract Central Sales Tax rates as applicable prior to introduction of `Turnover Tax' and `Surcharge' i.e. under section 8(1) or under section 8(2)(a) of Central Sales Tax Act, as the case may be.

The Bombay Sales Tax Act, 1959

CHAPTER II

Incidence and Levy of Tax

2. Inter-State sales of non-declared goods supported with C/D Form declarations :

Such inter-State sales are covered by section 8(1) of the Central Sales tax Act and are liable for Central Sales Tax @4% Accordingly, rates of Central Sales Tax are not required to be enhanced in respect of `Turnover Tax' and `Surcharge'.

3. Inter-State sales of non-declared goods not supported with Form C/D declaration are covered by section 8(2)(b) of Central Sales Tax Act. In this regard, the following three situations may arise :

Situation I : Inter-State sales not supported with C/D Form declaration where local rate of tax is more than 4%, the element of Surcharge and Turnover Tax is required to be added for computing the rate of Central Sales Tax applicable for such inter-State sales.

The position can be clarified by the following two examples :-

Example 1 : In respect of the goods covered by residuary entry, the schedule rate of tax is 13%. After adding Turnover Tax of 1% and Surcharge of 1.3%, the effective rate becomes 15.3%. In respect of the inter-State sales of such goods not supported with C-Form declarations under section 8(2)(b) of Central Sales Tax Act, the Central Sales Tax rate will be 15.3%.

Example 2 : In respect of chemicals covered by Schedule Entry C-II-83, the schedule rate is 8%, After adding Turnover Tax of 1% and Surcharge of 0.8%, the effective rate becomes 9.8%. In respect of inter-State sales of such goods without C/D Form, covered by section 8(2)(b) of Central Sales Tax Act, the rate of Central Sales Tax will be 10%.

Situation II : In respect of inter-State sales of the goods not supported with C/D Form declarations, inter-State sales of the goods against whom rates of sales tax specified in the Schedule is 4% or less and such sales are not supported with C/D Form declaration, then by virtue of notification No.CST-1045/CR-62-C/Taxation-2, dt.2.2.96 is sued under section S(5), the rate of CST will be scheduled rate applicable to the impugned goods. In such case, rate of Central Sales Tax is not required to be enhanced by turnover tax and Surcharge.

For example, `Safety Matches' are covered under Schedule Entry C-1-6 liable for schedule rate of tax @4%. When such goods are sold inter-state which are not supported by Form C/D declarations, under section 8(2)(b) of Central Sales Tax Act read with CST Notification No.CST-1095/CR 62/C/Taxation-2, 2.2.96 issued under section

8(5) of CST Act; shall be liable for CST @4%. However, if the schedule rate of tax in respect of any other goods is say 2%, the CST rate applicable will be 2%.

Situation III : In respect of goods, where the goods are generally liable to tax @4% or less including Turnover Tax and Surcharge, because of any notification issued under section 41, or liable for payment of tax or less including Turnover Tax and Surcharge because of notification issued under section 41, such exemption is subject to only standard conditions at Sr. Nos. 1, 3 or 5 of Annexure-I to Schedule of notification issued under section 41.

If such goods are sold inter-State, then under section 8(2)(b) read with notification No.CST-1095/CR-62/C/Taxation-2 dt.2.2.96 issued under section 8(5) of the CST Act, the rate of CST is required to be enhanced by `Turnover Tax' and `Surcharge'.

For example `Edible Oils, covered by notification entry A-4 issued under section 41, effective rate, of tax including Turnover Tax and `Surcharge' is 2.1%. Therefore, as per notification No.CST-1095/CR-62'/C/Taxation-2, dt.2.2.96 issued under section 8(5) of CST Act, Central Sales Tax rate under section 8(2)(b) CST Act will be 2.1%. (Sources : T. C. No. 11T of 1999 dt. 10.5.1999)

The Bombay Sales Tax Act, 1959

CHAPTER II

Incidence and Levy of Tax

¹ [bst73] [bst1][15A. Rate of tax on packing materials.-Where any goods are sold or purchased and such goods are packed in any materials the tax shall be leviable on the sales or purchases of such packing materials (whether such materials are separately charged for or not) at the same rate of tax ² [bst74] [bst2]["at which tax is payable on the sales or purchases, as the case may be, of the goods so packed.]

Departmental Views on Amendments

Packing Materials

In many instances, goods are sold after packing the same. The conditions of contract may sometimes imply that the packing materials have not been delivered gratis but have in fact been sold along with the goods packed. In such instances, the question arises as to at what rate the sale of packing materials should be taxed. Section 15A of the Act provides an answer to this question. The existing section sometimes became cumbersome to operate if a notification u/s 41 was issued in respect of the goods packed. It has, therefore, been provided that the sales of packing materials shall be taxed at the same rate at which tax is payable on the sales of goods packed. If because of any notification, the state Govt. has exempted payment of tax wholly or partly on any class of sales, then the same exemption will operate in respect of the sales of packing materials. [Refer Trade Circular No. 20T of 1995]

COMMENTS : Tax on packing material

Section 15-A provided the levy of tax on the packing material at the rate which is prescribed for taxing the goods so packed. Such rate was Taken as a rate prescribed in the schedule. By Maharashtra Act No.16 of1995 the section is redrafted so that the rate will not be scheduled rate, but it will be rate at which tax is actually payable, i.e. the concessions given under notification issued U/s 41 can be taken into consideration. Recent Bombay High Court decision in case of M/s Shantilal Kuwarji (STR No. 42/1990 decided on 2-2-95) will now be applicable to cases covered by newly amended section 15-A. If packing material is used for packing the goods which were purchased from registered dealers, then as the packed goods are admissible as resells no tax will be payable u/s 15-A on the packing material.

The Bombay Sales Tax Act, 1959

CHAPTER II

Incidence and Levy of Tax

¹ [bst75] [bst1]^[15A-1 Levy of additional tax in the case of dealer whose turnover exceeds Rs 10,00,000 a year:- ² [bst76] [bst2] [ * * * ]

NOTES :- LEVY OF SURCHARGE: (Section 15A-1) : It is clarificatory amendment carried out to Section 15A-1 to mention the calculation of limit of Rs. 1 lakh, commencing with effect from 01-04-1999. Earlier it was mentioned that Rs. 1 lakh exceeded in any year. To overcome the confusion appropriate clarificatory amendment is being made. (Also Refer Tr. Cir. No. 11T of 2004, dated 8th July, 2004).

The Bombay Sales Tax Act, 1959

CHAPTER II

Incidence and Levy of Tax

16. Commission agent liable to tax for sales on behalf of principal. - (1) Where a Commission agent sells any taxable goods on behalf of his principal, such Commission agent and his principal shall both be jointly and severally liable to pay the tax or taxes on the turnover of such sales under section 6

(2) If the principal, on whose behalf the Commission agent has sold goods, shows to the satisfaction of the Commissioner that the tax has been paid by his Commission agent on such goods under sub-section (1), the principal shall not be liable to pay the tax again in respect of the same transaction.

¹[bst77] [bst1][(3) Where there is a sale by auction, the auctioneer and the principal shall both be jointly and severally liable to pay the tax or taxes on the turnover of such sale irrespective of whether the principal or the auctioneer is a dealer.

(4) On the principal satisfying the Commissioner that tax has been paid by the auctioneer on such sale, the principal shall not be liable to pay the tax in respect of such sale.]

NOTES :- COMMISSION AGENT LIABLE TO TAX: (Section 16) : With the amendment to the definition of dealer Section 2(11), Section 16 is also amended with effect from 22-04-1988. It is amended that, in case of sale by auction, the auctioneer and principal are jointly and severally liable to pay tax under this Act, on the turnover of such sale irrespective of whether the principal or the auctioneer is a dealer or not.

It is also provided at Sub-section (4) to Section 16 that principal shall not be liable to tax in respect of such sale if principal satisfying the Commissioner that tax has been paid by auctioneer on such sale. (Also Refer Tr. Cir. No. 11T of 2004, dated 8th July, 2004).

The Bombay Sales Tax Act, 1959

CHAPTER II Incidence and Levy of Tax

17. Power to reduce rate of tax and to amend Schedules.-The State Government may, by notification in the Official Gazette, reduce any rate of tax specified in Schedule B or C in respect of any entry (or part thereof) in the said Schedules, and may, by like notification-

(a) Omit or amend any entry (or part thereof), but not so as to enhance the rate of tax in any case;

(b) transpose any entry by deleting it from one of the Schedules and inserting it in or adding it to another;

and thereupon, the Schedule shall be deemed to have been amended accordingly

Provided that, no notification which transposes any entry from one Schedule to another as aforesaid, shall be issued by the State Government unless it has been laid in draft before the ¹ [bst78] [bst1][Maharashtra] Legislative Assembly and has been:

approved by resolution of that Assembly; and upon such approval, the notification may be issued and shall take effect in the form in which it is so approved.

[bst79] [bst2]2[Any notification issued under this section shall take effect from the date of the publication thereof in the Official Gazette, or from such other date as may be mentioned therein.]

The Bombay Sales Tax Act, 1959

CHAPTER II Incidence and Levy of Tax

18. Liability of firms.-Notwithstanding any contract to the contrary, where any firm is liable, to pay tax under this Act, the firm and each of the partners of the firm shall be jointly and severally liable for such payment :

Provided that, where any such partner retires from the firm, he shall be liable to pay ¹ [bst80] [bst1][the tax, the penalty and the interest] (if any) remaining unpaid at the time of his retirement and any tax due upto the date of retirement though unassessed at that date.

The Bombay Sales Tax Act, 1959

CHAPTER II Incidence and Levy of Tax

19. Special provision regarding liability to pay tax in certain cases.-(1) Where a dealer, liable to pay tax under this Act, dies then,-

(a) if the business carried on by the dealer is continued after his death by his legal representative or any other person, such legal representative or other person shall be liable to pay the tax ¹ [bst81] [bst1][(including any penalty and interest)] due from such dealer under this Act or under any earlier law ² [bst82] [bst2][in the like manner and to the same extent as the deceased dealer], and

(b) if the business carried on by the dealer is ³ [bst83] [bst3][discontinued whether before or after his death], his legal representative shall be liable to pay out of the estate of the deceased, ⁴ [bst84] [bst4][in the like manner and to the same extent as the deceased dealer would have been liable to pay if he had not died], the tax ⁵ [bst85] [bst5][(including any penalty and interest)] due from such dealer under this Act, or under any earlier law whether such tax ³[(including any penalty and interest)] has been assessed before his death but has remained unpaid, or assessed after his death.

⁶ [bst86] [bst6][Explanation.-In this sub-section, the expression "legal representative" has the meaning assigned to it in clause (11) of section 2 of the Code of Civil Procedure, 1908].

(2)Where a dealer liable to pay tax under this Act is a Hindu undivided family and the joint family property is partitioned amongst the various members or group of members, then each member or group of members shall be jointly and severally liable to pay the tax ³[including any penalty and interest)] due from the dealer under this Act or under any earlier law, upto the time of the partition, whether such tax ³[including any penalty and interest)] has been assessed before partition but has remained unpaid, or is assessed after partition.

(3)Where a dealer, liable to pay tax under this Act, is a firm, and the firm is dissolved, then every person who was a partner shall be jointly and severally liable to pay to the extent to which he is liable under section 18, the tax ³[including any penalty and interest)] due from the firm under this Act or under any earlier law upto the time of dissolution, whether such tax ³[(including any penalty and interest)] has been assessed before such dissolution but has remained unpaid, or is assessed after dissolution.

(4)Where a dealer, liable to pay tax under this Act, transfer or otherwise disposes of his business in whole or in part, or effects any change in the ownership thereof, in consequence of which he is succeeded in the business or part thereof by any other person, the dealer and the person succeeding shall jointly and severally be liable to pay the tax ³[including any penalty and interest)] due from the dealer under the Act or under any earlier law, upto the time of such transfer, disposal or changes, whether such tax including any penalty and interest has been assessed before such transfer disposal or change but has remained unpaid, or is assessed thereafter.

The Bombay Sales Tax Act, 1959

CHAPTER III

Sales Tax Authority and Tribunal

20. Sales Tax Authorities.-(1) For carrying out the purposes of this Act, the State Government shall appoint an officer to be called the Commissioner of Sales Tax.

(2) ¹ [bst87] [bst1][Likewise], the State Government may appoint Additional Commissioners of Sales Tax (if any), and such number of-

(a) Deputy Commissioners,

² [bst88] [bst2][(aa)] [Senior Assistant Commissioners]

(b) Assistant Commissioner,

(d) other officers and persons,

and give them such designations (if any), as that Government thinks necessary.

(3) The Commissioner shall have jurisdiction over the whole of the ³ [bst89] [bst3][State of Maharashtra]; and an Additional Commissioner of Sales Tax, if any, be appointed, shall have jurisdiction over the whole of the State, or where the State Government so directs, over any local area thereof. All other officers shall have jurisdiction over such local areas as the State Government may specify.

(4) The Commissioner shall have and exercise all the powers and perform all the duties, conferred or imposed on the Commissioner by or under this Act, and an Additional Commissioner if any be appointed, shall save as otherwise directed by the State Government, have and exercise within his jurisdiction all the powers and perform all the duties, conferred or imposed on the Commissioner by or under this Act.

(5) A Deputy Commissioner shall ⁴ [bst90] [bst4][save as otherwise directed by the State Government,] have and exercise in the area within his jurisdiction all the powers, and shall perform all the duties, conferred or imposed on the Commissioner, by or under this Act ⁵ [bst91] [bst5][* * *];

(6) ⁶ [bst92] [bst6][Senior Assistant Commissioners, Assistant Commissioners], Sales Tax Officers and other Officers shall, within their jurisdiction, exercise such of the powers and perform such of the duties of the Commissioner under this Act, as the Commissioner may, subject to such conditions and restrictions as the State Government may by general or special order impose, by order in writing delegate to them either generally, or as respects any particular matter or class of matters.

(7) The State Government may, subject to such restrictions and conditions (if any) as it may impose, by notification in the Official Gazette, delegate to the Commissioner the powers (not being powers relating to the appointment of Additional Commissioners or Deputy Commissioners) conferred on that Government by sub-sections (2) and (3).

⁷ [bst93] [bst7][(7A)No person shall be entitled to call in question the territorial jurisdiction of any officer or person appointed under sub-section (2), after the expiry of sixty days from the date of receipt by such person of any notice under this Act or under any earlier law, issued by such officer or person. If within the period aforesaid, ⁸ [bst94] [bst8][a separate application in writing exclusively raising an objection as to the jurisdiction of any such officer or person is made] to him, the officer or person shall refer the question to the Commissioner, who shall after giving the person raising the objection a reasonable opportunity of being heard, make an order determining the question. The order made by the Commissioner shall be final.]

(8)All officers and persons appointed under sub-section (2) shall be subordinate to the Commissioner; and the subordination of officers (other than the Commissioner), and of persons, amongst themselves shall be such as is prescribed.

The Bombay Sales Tax Act, 1959

CHAPTER III

Sales Tax Authority and Tribunal

[21.Tribunal.-¹ [bst95] [bst1][(1)There shall be a Tribunal to be called "the Maharashtra Sales Tax Tribunal". Subject to the provisions of this section, the Tribunal shall consist of such number of members appointed by the State Government as that Government may from time to time consider necessary for the proper discharge of the functions conferred on the Tribunal by or under this Act.]

(2)The State Government shall appoint one of the members of the Tribunal to be the President thereof ⁸[bst96] [bst2][on the basis of his seniority in the judicial service].

² [bst97] [bst3][(3) The qualifications and the term of office of the members of the Tribunal shall be as may be prescribed, and a member shall hold office for such period as prescribed or as the State Government may, by special order in his case, specify.]

Departmental Views on Amendments

By this clause, which seeks to substitute sub-section (3) of section 21 of the Bombay Sales Tax Act, 1959, power is taken to the State Government to prescribe the qualifications, term of office and tenure of the members of the Maharashtra Sales Tax Tribunal.

(4)Any vacancy in the membership of the Tribunal shall be filled up by the State Government as soon as practicable.

³ [bst98] [bst4][(5)The functions of the Tribunal may be discharged by any of the members sitting either singly, or in Benches of two or more members, as may be determined by the President.]

(6)⁴ [bst99] [bst5][If the members of a Bench] are divided, the decision shall be the decision of the majority, if there be a majority; but if the members are equally divided, they shall state the point or points on which they differ and the case shall be referred by the President of the Tribunal for hearing on such point or points to one or more of the other members of the Tribunal; and such point or points shall be decided according to the majority of the members of the Tribunal who heard the case including those who first heard it.

⁵ [bst100] [bst6][(6A) Subject to such conditions and limitations as may be prescribed the Tribunal shall have power to award costs, and the amount of such costs shall be recoverable from the person ordered to pay the same as an arrears of land revenue.]

⁶ [bst101] [bst7][(6AA) * * * *]

(7) Subject to the previous sanction of the State Government, the Tribunal shall for the purpose of regulating its procedure (including the place or places at which the Tribunal, ⁷ [bst102] [bst8][the Benches or the members] thereof shall sit) and disposal of its business, make regulations consistent with the provisions of this Act and the rules.

(8) The regulations made under sub-section (7) shall be published in the Official Gazette.

NOTES :- TRIBUNAL: (Section 21) : The Amendment seeks to substitute sub-section (3) of Section 21 of Bombay Sales Tax Act, 1959, and power is taken to the State Government to prescribe the qualifications, terms of office and tenure of the member of the Maharashtra Sales Tax Tribunal. (Also Refer Tr. Cir. No. 11T of 2004, dated 8th July, 2004).

The Bombay Sales Tax Act, 1959
CHAPTER III Sales Tax Authority and Tribunal
⁶ [bst103] [bst1][21A.Settlement Commission.-(1) The State Government may, by notification in the Official Gazette, constitute a Commission to be called the "Maharashtra Sales Tax Settlement Commission" for the settlement of tax liability (including interest & penalty) under the provisions of this Act. (2) The Commission shall consist of such number of members appointed by the State Government, as it may from time to time consider necessary for the proper discharge of the functions conferred on the Commission under this Act. (3) The State Government shall appoint one of the members of the Commission to be the Chairman thereof. (4) The qualifications of the members of the Commission shall be such as may be prescribed, and a member shall hold office for such period as the State Government may fix in his case. (5) The functions of the Commission may be discharged by the members sitting in Benches of two or more. (6) Subject to the previous sanction of the State Government, the Commission shall for the purpose of regulating its procedure and disposal of its business make regulations consistent with the provisions of this Act and the rules. (7) The regulations made under sub-section (6) shall be published in the Official Gazette.] COMMENTS : Establishing the Settlement Commission - Note -On the lines of Income Tax Act it is proposed by Maharashtra Act.No.16 of 1995 to establish the settlement commission for sales tax matters. This commission will try for settling the demands and arrears of tax, penalty, and interest etc. which are disputed in old appeals or where evasion is detected before assessment. The Commission will consist of members having qualification and experience as prescribed by the Rules. Their procedure of work will also be prescribed by Government.
The Bombay Sales Tax Act, 1959
CHAPTER IV Registrations, Licences, Authorizations, Recognitions and Permits
22. Registration.-(1)No dealer shall, while being liable to pay tax under section 3 or under sub-section (6) of section 19, carry on business as a dealer, unless he possesses a valid certificate of registration as provided by this Act : Provided that, the provisions of this sub-section shall not be deemed to have been contravened, if the ¹ [bst104] [bst1][dealer] having applied for such registration as in this section provided, within the prescribed time or, as the case may be, within the period specified in sub-section (6) of section 19, carries on such business. (2)Every dealer, required by sub-section (1) to possess a certificate of registration, shall apply in the prescribed manner, to the prescribed authority. ² [bst105] [bst2][(2A)A person or a dealer who intends to carry on the business of buying or selling of the goods, but is not liable to pay the tax under section 3 may, if he so desires, apply for the Certificate of registration in the prescribed manner to the prescribed authority; Provided that, the Certificate of registration shall not be granted unless the person or the dealer has deposited, an amount of Rs. ³ [bst106] [bst3][5,000] in Government Treasury as advance towards the tax, interest or penalty, if any, that may become due. The amount so deposited may be adjusted against the tax payable according to the return required to be filed in the year in which registration is granted or in the succeeding year. The amount of the deposit in excess of the amount due from him, by way of tax, interest or penalty shall be refunded as provided in section 43.] (3)If the prescribed authority is satisfied ⁴ [bst107] [bst4][after such inquiry as it deems fit] that an application for registration is in order,⁵[bst108] [bst5][and the conditions prescribed, if any, are fulfilled,]it shall register the applicant and issue to him a certificate of registration in the prescribed form. NOTES :- REGISTRATION: (Section 22): With the amendment to sub-section 3 of Section 22, now powers are taken to the State Government that, conditions shall be prescribed in Rules and on fulfillment of such conditions only, the Registration Certificate shall be issued to the applicant dealer. (Also Refer Tr. Cir. No. 11T of 2004, dated 8th July, 2004). . (4)The prescribed authority may, after considering any information furnished under any provisions of the Act or otherwise received, amend from time to time, any certificate of registration. ⁵ [bst109] [bst6][(5)Notwithstanding anything contained in this Act, every dealer who is registered under sub-section (2A) shall, so long as his registration is in force be liable to pay the tax under this Act.]
The Bombay Sales Tax Act, 1959
CHAPTER IV Registrations, Licences, Authorizations, Recognitions and Permits
¹ [bst110] [bst1][(5A)If a person or a dealer upon an application made by him has been registered under this section and thereafter it is found that he ought not to have been so registered under the provisions of this section, he shall be liable to pay tax during the period from the date on which his registration certificate took effect until it is cancelled, notwithstanding that he may not be liable to pay tax under this Act.] (6)Where- (a) any business, in respect of which a certificate of registration has been issued under this section, has been discontinued, ² [bst111] [bst2][or has been transferred or otherwise disposed of,] or ³ [bst112] [bst3][the place of such business is changed to a different local area, as may be prescribed, or,] (b) neither the turnover of sales nor the turnover of purchases of a registered dealer has during any year exceeded the relevant limit specified in sub-section (4) of section 3, ⁴ [bst113] [bst4][then in the case covered by clause (a), the dealer shall apply in the prescribed manner and within the prescribed time to the Commissioner and in the case covered by clause (b), the dealer may apply in the prescribed manner to the Commissioner; and thereupon the Commissioner may, after such inquiry as he deems fit and subject to rules, cancel the registration with effect from such date including any anterior date as he considers fit having regard to the circumstances of the case] : ⁵ [bst114] [bst5][Provided that, where the Commissioner is satisfied that any business in respect of which a certificate has been issued under this section has been discontinued ⁶ [bst115] [bst6][or transferred or disposed of ⁷ [bst116] [bst7]["or place of business is changed to a different local area, as may be prescribed"] and the dealer has failed to apply as aforesaid for cancellation of registration, the Commissioner may, after giving the dealer a reasonable opportunity of being heard, cancel the registration with effect from such date as he may fix to be the date from which the business has been discontinued] ⁸ [bst117] [bst8][or transferred or disposed of, as the case may be] : Comments: When the business is shifted from one local area to another, it in now compulsory for the dealer to apply for cancellation of registration certificate. The Commissioner can also cancel the registration certificate if the business is shifted to a different local area. The local areas will be prescribed by the rules. [w.e.f. 15.5.1997].
The Bombay Sales Tax Act, 1959
CHAPTER IV Registrations, Licences, Authorizations, Recognitions and Permits
¹ [bst118] [bst1][Provided further that, the cancellation of a certificate of registration on an application of the dealer or otherwise,] shall not affect the liability of the dealer to pay the tax ² [bst119] [bst2][including any penalty and interest] due for any period prior to the date of cancellation whether such tax ²[including any penalty and interest] is assessed before the date of cancellation but remains unpaid, or is assessed thereafter. ³ [bst120] [bst3][(7)If any certificate of registration has been cancelled under sub-section (6) with effect from a date anterior to the date of the order of cancellation, then the dealer shall, for all the purposes of this Act, be deemed to be an unregistered dealer from such anterior date and the purchases, if any, made or purported to have been made from such dealer on or after such anterior date shall, for all purposes including levy of tax, be deemed to be purchases made from an unregistered dealer : Provided that, where any dealer purporting to have purchased any goods from such dealer on a date falling during the period commencing on the date of the cancellation of his certificate of registration and ending on the date of passing the order of such cancellation, proves to the satisfaction of the Commissioner that the tax due has been paid in respect of sales to him of such goods, then it shall be deemed that such goods are purchased from a Registered dealer.] ⁴[bst121] [bst4][(8) Notwithstanding anything contained in this Act,— (a) the registration certificate of every Registered Dealer the effective date of which is 31st March 2004 or any earlier date, and which certificate is valid and in force on the 30th June 2004, shall unless,- (1) such dealer is a manufacturer or an importer during the period commencing on the 1st April 2003 and ending on the 31st March 2004; or (2) the turnover of sales or, as the case may be. purchases of such dealer has exceeded Rs.5,00,000 during the period commencing on the 1st April 2003 and ending on 31st March 2004 ; or (3) such dealer holds license in Form FL-I, FL-II, FL-III or FL-IV (including temporary club license) under the Bombay Foreign Liquor Rules, 1953 or a license in Form E under the Special Permits and License Rules, 1952 or license in Form CL-I, CL-II, CL-III or CL/FL/TOD/III under the Maharashtra Country Liquor Rules, 1973 at any time during the said period; or (4) such dealer holds an Authorisation or Permit or any other certificate issued by a Sales Tax Authority under any entry of the Schedule appended to the notification issued under section 41 at any time during the period commencing on the 1st April 2003 and ending on the 31st March 2004; or (5) such dealer is covered by the Explanation to clause (11) of section 2; stand cancelled for all the purposes of this Act with effect from the 1st July 2004. (b) The Registered dealer whose registration certificate is cancelled under clause (a) shall surrender the registration certificate so cancelled to the assessing authority in charge of the case before the 31st July 2004. The assessing authority shall deface its own copy of the registration certificate as also the copy surrendered to it and after defacement return the defaced copy to such dealer. (c) (i) Every Registered dealer whose certificate of registration is valid and effective or in force on the 31st March 2004 as also on the 30th June 2004, shall file a return by the 31st July 2004, for the period commencing on the 1st April 2003 and ending on the 31st March 2004, in such form and with such authority as may be prescribed. (ii) If such return is not filed by the dealer by the said date, the Commissioner shall, unless otherwise proved by the dealer, presume that the Registration Certificate of such dealer is liable to be cancelled under clause (a), and after giving such dealer a reasonable opportunity of being heard, cancel the registration certificate with effect from the 1st July 2004.] As per Trade Circular No. 13T of 2004 dated the 29th July 2004. Date extended from 31st July 2004 to 31st August 2004. Reference as below :- Trade Circular No. 13T of 2004, dated the 29th July 2004 No. AMD-1004/IA/Adm-3/ Mumbai, Dated 29th July, 2004 Trade Circular No. 13-T of 2004 Sub : Date for filing return of turnover for 2003-04 - Amendment to Section 22 of the Bombay Sales Tax Act, 1959. Sir, 1. By introduction of sub-section (8) of section 22 of the Bombay Sales Tax Act, 1959 a provision has been made for filing of return s of turnover of sales and purchases during the financial year 2003-04 by all dealers and also to surrender the registration certificate for cancellation in certain cases specified in the amendment Act. The Act also provides for filing of such returns by 31st July, 2004 and for cancellation of registration certificate of those dealers who fail to file the returns by the specified date; i.e. 31-7-2004. 2. On administrative grounds it has been decided that the last date for filing of returns regarding turnover of sales and purchases for the Financial Year 2003-04 is extended to 31-8-2004. Similarly date for surrendering the registration certificate for cancellation in specified cases as per the amendment Act has been extended to 31-8-2004. NOTES :- REGISTRATION: (Section 22) : Sub-section 8 of Section 22 is newly inserted provides that the registration certificate of every Registered Dealer the date of effective of which is 31-03-2004 or any earlier date and which certificate is valid and is in force on 30-06-2004 shall stand cancelled with effect from 01-07-2004, unless the following, (i) Such dealer is a manufacturer or an importer during the period commencing on the 01-04-2003 and ending on the 31-03-2004; or (ii) The turnover of sales or, as the case may be, purchases of such dealer has exceeded Rs. 5,00,000 during the period commencing on the 1st April 2003 and ending on 31st March 2004; or (iii) Such dealer holds license in Form FL-I, FL-II, FL-III OR FL-IV (including temporary club license) under the Bombay Foreign Liquor Rules, 1953 or a License in Form E under the Specia1 Permits and License Rules, 1952 or license in form CL-I, CL-II, CL-III or CL/FL/TOD/III under the Maharashtra Country Liquor Rules, 1973 at any time during the said period; or (iv) Such dealer holds an Authorisation or Permit or any other certificate issued by a Sales Tax Authority under any entry of the Schedule appended to the notification issued under section 41 at any time during the period commencing on the 1st April 2003 and ending on the 31st March 2004; or (v) Such dealer is covered by Explanation to clause(11) of section 2; (b) The Registered dealer whose registration certificate is cancelled under clause (a) shall surrender the registration certificate so cancelled to the assessing authority in charge of the case before the 31st July 2004. The assessing authority shall deface its own copy of the registration certificate as also the copy surrendered to it and after defacement return the defaced copy to such dealer. (c) (i) Every Registered dealer whose certificate of registration is valid and effective or in force on the 31st March 2004 as also on the 30th June 2004, in such from and with such authority as may be prescribed. (ii) If such return is not filed by the dealer by the said date, tic Commissioner shall, unless otherwise proved by the dealer, presume that the Registration Certificate of such dealer is liable to be cancelled under clause (a), and after giving such dealer a reasonable opportunity of being heard, cancel the registration certificate with effect from the 1st July 2004. This amendment shall increase the paperwork of every dealer. Every dealer has to file prescribed return (Yet to be notified by Government) by 31-07-2004 for the period 01-04-2003 to 31-03-2004. Non-filing of such return shall invite the proceeding of cancellation of Registration Certificate. Also a penalty of Rs. 2,000/- shall be imposed as per amended Section 36 (4A) and such penalty shall be without prejudice to any other penalty leviable under section 36. Also proceeding u/s. 63 may be instituted. (Also refer to circular no 11T of 2004 and 25T of 2004 Dated 01-09-2004 ) Departmental Views on Amendment By this clause, which seeks to amend section 22 of the Bombay Sales Tax, 1959, power is taken to the State Government,- (a) under sub-section (3) thereof, to prescribe conditions, if any, on fulfillment of which the prescribed authority shall register the applicant under the said sub-section (3) and issue him a certificate of registration; (b) under the new sub-section (8) thereof, to prescribe the Form of return and the Authority to whom such return shall be filed.
The Bombay Sales Tax Act, 1959
CHAPTER IV Registrations, Licences, Authorizations, Recognitions and Permits
¹ [bst122] [bst1][22A. Fresh registration of dealers.-(1) Every Registered dealer who holds, on such date as the State Government may, by notification in the Official Gazette, specify a valid certificate of registration (hereinafter referred to in this section as "the existing certificate of Registration) issued to him shall obtain, in lieu of the existing certificate of registration, a fresh certificate of registration as provided in this section. (2) Every dealer required by sub-section (1) to obtain a fresh certificate of registration shall apply in such form, manner, time and to such authority as may be prescribed and such application shall be accompanied by the existing certificate of registration together with all additional copies thereof, if any, issued to him. (3) On receipt of such application, the prescribed authority shall, subject to rules, issue to the applicant a fresh certificate of registration in the prescribed form; and thereupon the fresh certificate of registration so issued shall for all the purposes of this Act, be deemed to be a certificate of registration issued under section 22. (4) A dealer who has produced his existing certificate of registration with the application under this section shall not be deemed to have ceased to be in possession of the existing certificate of registration until a fresh certificate of registration is issued to him under sub-section (3) or, as the case may be, until such application is finally rejected. (5) Without prejudice to the provisions of sub-sections (6) and (7) of section 22, all existing certificates of registration shall stand cancelled with effect from such date as the State Government may notify in the Official Gazette. (6) Nothing in sub-section (5) shall affect the liability, if any, of any dealer for any payment of tax, penalty, interest or sum forfeited in respect of any period whether commenced before or after such date. (7) The provisions of this section shall, mutatis mutandis, apply in respect of all Authorizations ² [bst123] [bst2][*] and Permits issued under this Act, as they apply in respect of the registration.] Comments: (Refer Trade Circular No 25T of 2004 Dated 01-09-2004) Departmental Views on Amendment** By this Section, two new sections (namely, Section 22A and Section 22B) were inserted in the Section 22A is in respect of issue of fresh registration certificates in lieu of existing registration certificates, to dealers holding registration certificates as on 1.5.92. This Section 22A will continue with the modification that the Government will have to notify a base-date, and accordingly, fresh Registration Certificates will have to be issued in lieu of registrations existing as on such base-date. In view of this amendment, the Government/Department will have to decide a fresh the manner in which the programme of issuing fresh registrations shall be completed. (Refer Circular No.10T of 1994)

The Bombay Sales Tax Act, 1959

CHAPTER IV

Registrations, Licences, Authorizations, Recognitions and Permits

22B. Cancellation of certificate of registration for failure to file return ¹ [bst124] [bst1][* * *]

The Bombay Sales Tax Act, 1959

CHAPTER IV Registrations, Licences, Authorizations, Recognitions and Permits

¹ [bst125] [bst1][23. Licences deemed to be cancelled.-All licences issued under this Act shall be deemed to be cancelled from the notified day.]

The Bombay Sales Tax Act, 1959

CHAPTER IV

Registrations, Licences, Authorizations, Recognitions and Permits

24. Authorisations.-Where, during the previous or current year, the turnover of sales of a Registered dealer of goods.-

(a) Which are exported by him from the State outside the territory of India, or dispatched by him from the State to any place in India outside the State; and

(b) Which are sold by him to any Authorized dealer and exported or dispatched by that dealer to any destination referred to in clause (a);

exceeds ¹ [bst126] [bst1][one lakh rupees], he may apply for an Authorization to the Commissioner. Subject to the provisions of section 27 the Commissioner shall, if the Registered dealer satisfies such further requirements (including the furnishing of adequate security) as may be prescribed, issue to him an Authorisation in such form, and subject to such conditions, as may be prescribed.

Explanation.-Where a registered dealer has during the year ² [bst127] [bst2][ending on the 31st day of March 1959 or the year] commencing on the 1st day of April 1959 been a dealer registered under an earlier law, and the turnover of sales made by him during that year-

(i) of goods which were exported or dispatched by him to a destination referred to in clause (a), and

(ii) of goods which were sold by him to dealers registered under an earlier law who exported or dispatched them to any such destination, had exceeded ³ [bst128] [bst3][one lakh rupees], he may also apply under this section for an Authorisation to the Commissioner, and the Commissioner shall issue to him an Authorisation in the manner aforesaid.

The Bombay Sales Tax Act, 1959

CHAPTER IV

Registrations, Licences, Authorizations, Recognitions and Permits

¹ [bst129] [bst1][25. Recognitions deemed to be cancelled.- All Recognitions issued under this Act, shall be deemed to be cancelled from the date of the commencement of the Maharashtra Tax Laws (Levy & Amendment) Act, 1995"]

COMMENTS : Recognition abolished

Section 25 prescribes the conditions for grant of Recognition but by Maharashtra Act No. 16 of 1995 the Recognition is removed. All Recognitions held by the dealers at present will automatically stand cancelled from the date of commencement of Maharashtra Act 16 of 1995.

The Bombay Sales Tax Act, 1959

CHAPTER IV

Registrations, Licences, Authorizations, Recognitions and Permits

26. Permits .-A Registered dealer, who bonafide buys or sells for an agreed commission any goods on behalf of a principal mentioned in his account in respect of each transaction and whose turnover of such purchases during the previous year or current year exceeds ¹ [bst130] [bst1][one lakh rupees]; may apply for a Permit to the Commissioner. Subject to the provisions of section 27, the Commissioner shall, if the dealer satisfies such further requirements (including the furnishing of adequate security) as may be prescribed, issue to him a Permit in such form, and subject to such conditions, as may be prescribed.

The Bombay Sales Tax Act, 1959

CHAPTER IV

Registrations, Licences, Authorizations, Recognitions and Permits

¹ [bst131] [bst1][27. Commissioner may refuse Authorisation, etc.-The Commissioner may refuse to grant an Authorisation, ² [bst132] [bst2][**]or, as the case may be, Permit, to a dealer under any of the following circumstances, that is to say,-

(a) if an Authorisation, ² [bst133] [bst3][**] or as the case may be, Permit previously granted under this Act to such dealer, has been cancelled in the circumstances other than those referred to in sub-section (1) of section 28;

(b) during any period of suspension of the dealer's Authorisation,² [bst134] [bst4][**] or, as the case may be, Permit;

(i) has failed to pay any tax ³ [bst135] [bst5][including any penalty and interest] due from him by or under any provisions of this Act, or

(ii) has failed, without sufficient cause, to furnish any returns required to be furnished by or under the provisions of this Act (other than the provisions of section 51); or

(iii) is an undischarged insolvent; or

(iv) has been convicted of an offence under this Act;

(d) if the dealer is a firm, and any partner thereof is a person-

(i) whose Authorisation ⁴ [bst136] [bst6][**] or Permit, as the case may be, has been cancelled in the circumstances referred to in clause (a), or

(ii) to whom an Authorisation, ⁴ [bst137] [bst7][**] or Permit, as the case may be. was previously refused in the circumstances referred to in clause (c).]

The Bombay Sales Tax Act, 1959

CHAPTER IV

Registrations, Licences, Authorizations, Recognitions and Permits

¹ [bst138] [bst1][28. Cancellation or suspension of Authorisation, etc.-(1) If-

(a) the registration of an Authorised dealer, ² [bst139] [bst2][**] or Commission agent holding a Permit is cancelled; or

(b) in any year,-

(i) the turnover of sales of an Authorised dealer or, as the case may be, the turnover of purchases of a Commission Agent holding a permit fails to exceed the amount requisite for the grant of Authorisation or Permit ³ [bst140] [bst3][**]

(ii) ⁴ [bst141] [bst4][**]

(c) the Authorised dealer, ² [bst142] [bst5][**] or Commission Agent holding a permit does not wish to continue to have an Authorisation ⁵ [bst143] [bst6][**.] or Permit then, in the circumstances stated-

(i) in clause (a), the dealer shall forthwith,

(ii) in clause (b), the dealer shall within fifteen days from the end of such year,

(iii) in clause (c), the dealer may at any time.

surrender his Authorisation, ⁶ [bst144] [bst7][**] or permit to the Commissioner for cancellation, and the Commissioner shall cancel the Authorisation⁶ [bst145] [bst8][**.] or, as the case may be, the Permit, and accordingly in the circumstances stated in clause (a) the Authorisation, ⁶ [bst146] [bst9][**] or Permit shall stand cancelled from the date of the cancellation of the registration, and in any other case it shall cease to have effect from the date of surrender for cancellation.

(2) If an Authorised dealer, ⁶ [bst147] [bst10][**] or Commission agent holding a Permit-

(a) fails to pay any tax ⁷ [bst148] [bst11][(including any penalty and interest)] due from him under any provision of this Act, or of any earlier law, or

(b) contravenes or has contravened any provisions of this Act or any condition of his Authorisation, ⁸ [bst149] [bst12][**] or Permit, or

(d) has been convicted of an offence under this Act or any earlier law, then the Commissioner may, after giving the Authorised dealer, ⁶ [bst150] [bst13][**] or, as the case may be, Commission Agent a reasonable opportunity of being heard, suspend as the case may be, the Authorisation, ⁸ [bst151] [bst14][**] or as the case may be, the permit for such period as he thinks fit, or cancel it. Thereupon in either case such dealer shall within 7 days of receipt by him of the order of suspension or cancellation, surrender the Authorisation, ⁸ [bst152] [bst15][**] or Permit, as the case may be, to the Commissioner.]

The Bombay Sales Tax Act, 1959

CHAPTER IV

Registrations, Licences, Authorizations, Recognitions and Permits

29. Non-transferability of Registration,¹[bst153] [bst1][Authorization,] etc.- Save as otherwise provided in section 31, a Certificate of Registration, ² [bst154] [bst2][**] Authorization ³ [bst155] [bst3][**] or Permit shall be personal to the dealer to whom it is granted, and shall not be transferable.

The Bombay Sales Tax Act, 1959

CHAPTER IV

Registrations, Licences, Authorizations, Recognitions and Permits

30. Information to be furnished regarding changes in business, etc.-If any dealer liable to pay tax under this Act-

(a) sells or otherwise disposes of his business or any part thereof, or effects or knows of any other changes in the ownership of the business, or

(b) discontinues his business or change the place thereof or open a new place of business, or

(d) being a manufacturer, effects any change in the classes of goods sold or bought by him, or

(e) enters into a partnership or other association in regard to his¹ [bst156] [bst1][business]

(f) ² [bst157] [bst2][effects any change regarding the opening or closing of the Bank accounts of his business.]

(g) ³ [bst158] [bst3][**]

(h) ³ [bst159] [bst4][**]

(i) ⁴ [bst160] [bst5][***]

he shall, within the prescribed time, inform the prescribed authority accordingly; and where any such dealer dies, his executor, administrator or other legal representative, or where any such dealer is a firm and there is a change in the constitution of the firm or the firm is dissolved every person who was a partner thereof, shall in the like manner, inform the said authority of such death, change in the constitution or, as the case may be, dissolution.

The Bombay Sales Tax Act, 1959

CHAPTER IV

Registrations, Licences, Authorizations, Recognitions and Permits

31. Certificate of Registration , ¹[bst161] [bst1][Authorisation], etc. to continue in certain circumstances.- Where a Registered dealer-

(a) effect changed in the name of his business, or

(b) ² [bst162] [bst2][is] a firm, and there is a change in the constitution of the firm without dissolution thereof, or

(d) ² [bst164] [bst4][is] a guardian of a ward, and there is a change in the guardian, then, merely by reason of any of the circumstances aforesaid, it shall not be necessary for the dealer, or the firm with the changed constitution, or the new trustees, or new guardian to apply for a fresh certificate or registration and on information being furnished in the manner required by section 30, the certificate of registration shall, be amended; and any ³ [bst165] [bst5][**]Authorisation, ⁴ [bst166] [bst6][**] or Permit granted to the Registered dealer prior to any such change as is mentioned aforesaid shall, subject to the provisions of section 28, also continue to be valid, as ⁵ [bst167] [bst7][also any declarations] given under section 11 or 12 under such ³ [bst168] [bst8][***] Authorisation ⁴ [bst169] [bst9][**] or Permit.

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

32.Returns.-(1)Every Registered dealer shall ¹ [bst170] [bst1][furnish returns in such form] for such period, by such dates, and to such authority, as may be prescribed:

Provided that the Commissioner may, subject to such terms and conditions as may be prescribed ² [bst171] [bst2][exempt any such dealer from furnishing such returns or permit any such dealer]-

(a) to furnish them for such different periods, or

(b) to furnish a consolidated return ³ [bst172] [bst3][relating to all or any of the places of business] of the dealer in the State for the said period, or for such different period, to such authority, as he may direct.

(2)If the Commissioner has reason to believe-

(a) that the turnover of sales or the turnover of purchases of any dealer is likely to exceed the relevant limit specified in sub-section (4) of section 3 for liability to pay tax, or

(b) that either the turnover of sales or the turnover of purchases of any dealer has during any year exceeded-

(i)⁴ [bst173] [bst4][Rs. 40,000] in the case of a dealer who is an importer or manufacturer, or

(ii)⁵ [bst174] [bst5][Rs. 1,00,000] in the case of any other dealer,

he may, by notice served in the prescribed manner, require such dealer to furnish returns as if he were a Registered dealer, but no tax shall be payable by such dealer, unless his turnover exceeds the relevant limit specified in sub-section (4) of section 3, not otherwise than in accordance with the other provisions of this Act.

(3)If any dealer having furnished returns under sub-section (1) or (2), discovers any omission or incorrect statement therein, he may furnish a revised return before the expiry of three months next following the last date prescribed for furnishing the original return.

⁶ [bst175] [bst6][(4) ***]

The Bombay Sales Tax Act, 1959
CHAPTER V Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax
33. Assessment of taxes.- ¹ [bst176] [bst1][(1)] The amount of tax due from a dealer liable to pay tax shall be assessed separately for each year during which he is so liable : Provided that , the Commissioner may, subject to such conditions as may be prescribed and for reasons to be recorded in writing, assess the tax due from any dealer during a part of a year: Provided further that, when a Registered dealer fails to furnish any return relating to any period of any year, by the prescribed date, the Commissioner may, if he thinks fit, assess the tax due from such dealer separately for different parts of such year]. (2) If the Commissioner is satisfied that the returns furnished ² [bst177] [bst2][by a Registered dealer] in respect of any period are correct and complete, he shall assess the amount of tax due from the dealer on the basis of such returns. ³ [bst178] [bst3]["Provided that where a notice under sub-section (5) has been issued or served on the dealer on the ground that returns in respect of any period ending on or before the 31st March 1995 have not been filed by him and if the dealer proves to the satisfaction of the Commissioner that he has filed such returns on or before the 30th June 1995 and furnishes copies thereof, then, notwithstanding anything contained in the said notice, the Commissioner may, if he is satisfied that such returns are correct and complete, assess the amount of tax due from the dealer on the basis of such returns."] (3) If the Commissioner is not satisfied that the returns furnished ⁴ [bst179] [bst4][by a Registered dealer] in respect of any period are correct and complete, and he thinks it necessary to require the presence of the dealer or the production of further evidence, he shall serve on such dealer in the prescribed manner a notice requiring him on a date and at a place specified therein, either to attend and produce or cause to be produced all evidence on which such dealer relies in support of his returns, or to produce such evidence as is specified in the notice. On the date specified in the notice, or as soon as may be thereafter the Commissioner shall, after considering all the evidence which may be produced, assess the amount of tax due from the dealer. (4) ⁵ [bst180] [bst5][If a registered dealer] fails to comply with the terms of any notice issued under sub-section(3), the Commissioner shall assess, to the best of his judgement, the amount of tax due from him. ⁶[bst181] [bst6][(4A)] ⁷[bst182] [bst7][Where all the returns other than the annual return are filed by a Registered dealer for any year ending on or after the notified day within one month of the end of the year to which such returns relate;] no order of assessment under sub-section (3) or (4) in respect of that year shall be made after the expiry of three years from the end of the said year; and if for any reason such order is not made within the period aforesaid, then the returns so filed shall be deemed to have been accepted as correct and complete for assessing the tax due from such dealer.
The Bombay Sales Tax Act, 1959
CHAPTER V Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax
¹ [bst183] [bst1][Explanation I].-In the case of returns pertaining to the years ending prior to the notified day and filed on or before the notified day or on or before any such other date thereafter as the State Government may by notification in the Official Gazette specify in that behalf, the period of three years shall be computed from the notified day.] ¹ [bst184] [bst2][Explanation II-In the case of returns filed by a registered dealer referred to in sub-clause (b) of clause (37) of section 2 and who has not opted for the financial year, the period of three years shall be computed from the end of the financial year in which the year, by reference to which the accounts of that dealer are maintained in his books, ends :] Provided that, where a fresh assessment has to be made to give effect to any finding or direction contained in any order made under this Act or any earlier law or to any order of the Tribunal or the High Court or the Supreme Court, such assessment shall be made within thirty-six months from the date of ² [bst185] [bst3][communication to the Commissioner of] such finding, direction or order, as the case may be : Provided further that, in computing any period of limitation laid down in this section, the time during which the assessment remained stayed under the order of the Tribunal or of the High Court or of the Supreme Court shall stand excluded : Provided also that, the Commissioner may, in the interest of the revenue or at the instance of the dealer, issue directions not to proceed with the assessment of any particular dealer or class of dealers for any particular period, if such assessment involves a decision on a point which is concluded against the State by a judgment of the Tribunal or the High Court and State Government, or the Commissioner has initiated any proceedings against such judgment before an appropriate forum. ³ [bst186] [bst4][As soon as may be after the final conclusion of such proceedings or, as the case may be, after recording the reasons therefor in writing, the Commissioner may, at any time, revoke such directions.] NOTES :- ASSESSMENT : (Section 33) : There is an amendment in Section 33 (4A). As we are aware that Section 33(4A) prescribes time limit about completion of assessment.Now the time limit about completion of assessment is based on regular returns and not on annual returns. If regular return i.e. monthly, quarterly or yearly return are filed after the notified day within one month of the end of the year to which such returns relate, then the time limit of completing the assessment is three years. If assessment is not so completed then, the returns filed are deemed to have been accepted. ⁴ [bst187] [bst5][(4-1B)Notwithstanding anything contained in sub-section (4A), in respect of the returns relating to any period commencing on or after the 1st April 1999, and ending on the 31st March 2003, the period of limitation of three years laid down in sub-section (4A) for making assessment shall be of five years.]
The Bombay Sales Tax Act, 1959
CHAPTER V Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax
¹ [bst188] [bst1][(4B)Notwithstanding anything contained in this section, the assessment shall be completed within a period of eighteen months from the date of such order of revocation as referred to in the third proviso to sub-section (4A) and the period of limitation laid down in this section shall be deemed to be modified accordingly. (4C)Notwithstanding anything contained in this section or any other provisions of this Act, where the assessment involves a decision on the point which is concluded against the State by a judgment of the Tribunal and the State Government or the Commissioner has initiated any proceedings against such judgment before an appropriate forum, then the Commissioner may complete the assessment as if the point was not so decided against the State, but shall stay the recovery of such of the dues including interest and penalty if any, in so far as they relate to such point, until the decision by the appropriate forum and after such decision modify the assessment order, if found necessary.] ² [bst189] [bst2][(5)If a Registered dealer does not furnish returns in respect of any period by the prescribed date, the Commissioner shall, at any time within eight years from the end of the year in which such period occurs, after giving the dealer a reasonable opportunity of being heard proceed to assess, to the best of his judgment, the amount of the tax (if any) due from him. (6)If the Commissioner has reason to believe that a dealer is liable to pay tax in respect of any period, but has failed to apply for registration or failed to apply for registration within time as required by section 22, the Commissioner shall at any time, within eight years from the end of the year in which such period occurs, after giving the dealer a reasonable opportunity of being heard, proceed to assess, to the best of his judgment, the amount of tax (if any) due from the dealer in respect of that period, and any period or periods subsequent thereto. ³ [bst190] [bst3][(6A)Notwithstanding the foregoing provisions of this section, where the Commissioner is not satisfied about the correctness or the completeness of the accounts of a dealer, or where no method of accounting has been regularly employed by a dealer, the Commissioner may, after giving the dealer a reasonable opportunity of being heard, assess to the best of his judgment, the amount of tax (if any) due from him.] ⁴ [bst191] [bst4][(6B) (i) During the course of any proceedings under section 49, in case of any dealer or person, the Commissioner is satisfied that tax has been sought to be evaded in respect of any period by not recording or recording in an incorrect manner, any transaction of sale or of purchase, or that any claim or deduction has been incorrectly made, in such a case, notwithstanding that any notice for assessment has been issued under other provisions of this section or any other section of this Act, the Commissioner may, after giving such dealer or person a notice in the prescribed form and a reasonable opportunity of being heard, initiate assessment of tax, due from the dealer or person in respect of such transaction, deduction or claim. (ii) During the course of any proceedings under section 49 if the concerned authority is satisfied that the tax has been or is sought to be evaded, as provided under clause (i) by any dealer or person, such authority may, after issuing a notice in the prescribed form and after giving a reasonable opportunity of being heard to such dealer or person, start assessment of such dealer or person as provided in clause (i) in respect of any such transaction, claim or deduction relating to any period and such authority shall, notwithstanding anything contained in section 70, be deemed to have the requisite jurisdiction and power to assess such dealer or person in respect of such transaction of sale or purchase or any deduction or claim, covered by clause (i) and such assessment proceedings shall for all the purposes of this Act, be deemed to have been transferred to such authority. (iii) The assessment proceedings under this sub-section shall be without prejudice to the assessment proceedings under any other sub-section or under other sections of this Act by any authority who otherwise has the jurisdiction to assess such dealer or person in respect of other transactions of sales or purchases or any other claim or deductions which are not covered by clause (i) and clause (ii). (iv) The assessment under this sub-section shall be made separately in respect of the transaction, deduction or claim relating to any year or, as the case may be, for a part of a year, and irrespective of any assessment made under this sub-section, the dealer may be assessed under the other provisions of this section in respect of such year or, as the case may be, part of such year: Provided that, once the dealer is assessed under this sub-section, no tax on such transaction, deduction or claim and penalty and interest, if any, consequent upon such tax, shall be levied or demanded from such dealer or person, at the time of assessment of tax under the other provisions of this section in respect of the year or, as the case may be, part of the year relating such transaction, deduction or claim.] NOTES :- ASSESSMENT : (Section 33) : Sub-section (6B) of Section 33 is substituted: The said sub-section was inserted originally by Maharashtra Ordinance No II of 1999 dt. 06-02-1999. The Commissioner of Sales Tax, Maharashtra while clarifying the said provision vide Circular No. 6T of 1999 dt. 25-02-1999 had stated that "A new sub-section is inserted. It empowers Commissioner to assess a dealer separately in respect of transaction on which tax is evaded or is sought to be evaded." Now, the amendments are being made to this sub-section by substituting entirely new sub-section. The new sub-section is divided in four clauses and one proviso. Sub-Section (6B): Means that— (i) Provides the situation under which assessment can be made transaction wise, for any period, for any claim or any deduction under the proceeding under section 49. Before assessing in this sub-section 49, the Commissioner is satisfied that tax has been sought to be evaded in respect of any period by not recording or recording in an incorrect manner, any transaction of sales or of purchase or that any claim or deduction has been incorrectly made. The assessment under this sub-section is without prejudice to any other provision of assessment. Now this clause of sub-section also provides that a notice in prescribed form shall be issued to the dealer. Earlier there was no such form was prescribed. Now the Sales Tax Authorities shall have to record the reasons under which circumstances he has satisfied that the dealer or a person has been sought to evaded the tax by not recording the transaction or by recording in incorrect manner, any transaction of sale or of purchase as of that any claim or deduction has been made incorrectly. In my opinion these are good amendments. Earlier there was no such provisions. Earlier it was simply if the Commissioner on the basis of evidence available could initiate the proceeding. (ii) This Clause of sub-section provides that the jurisdiction shall stand transferred to such authority automatically and compliance of Section 70 is not necessary. This sub-section have a overriding effect on Section 70. This is another good move to administer this section in meaningful manner. (iii) This clause of sub-section provides that assessment proceeding under this subsection shall be without prejudice to the assessment proceedings under any other sub-section as under other section of this Act by any authority who otherwise has the jurisdiction to assess such dealer or person in respect of other transaction of sales or purchases or any other claim or deductions which are not covered by clause (i) & clause (ii). (iv) The assessment under this sub-section shall be made separately in respect of the transaction, deduction or claim relating to any year or, as the case may be, for a part of a year, and irrespective of any assessment made under this sub-section, the dealer may be assessed under the other provisions of this section in respect of such year or, as the case may be, part of such year: Provided that, once the dealer is assessed under this sub-section, no tax on such transaction, deduction or claim and penalty and interest, if any, consequent upon such tax, shall be levied or demanded from such dealer or person, at the time of assessment of tax under the other provisions of this section in respect of the year or, as the case may be, part of the year relating such transaction, deduction or claim. (Also Refer to circular no 11T of 2004)
The Bombay Sales Tax Act, 1959
CHAPTER V Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax
(7) Any assessment made under this section shall be without prejudice to any penalty,¹[bst192] [bst1][or liability to pay interest] or prosecution for an offence, under this Act. Comments : Transaction-wise assessment- Under section 49 the Commissioner is empowered to visit search & seize the documents from the business place of the dealer. If the Commissioner finds any evidence about evasion of taxes on certain transactions, then the Commissioner may take up the assessment for such transactions and need not make the full assessment. When the regular assessment is made, the tax and penalty/interest levied on the transactions assessed will not be demanded again. Departmental Views Separation of investigation function from assessment function (i) It happens in certain instances that a major case involving substantial turnover of sales and purchases is taken-up for investigation in the Enforcement Branch. In many instances the investigation in the Enforcement Branch is limited to very few specific points. However, it becomes difficult to assess the dealer in the Enforcement Branch, since all of his turnover including the turnover not under investigation is also required to be assessed. The dealer is required to attend before the Enforcement Officer even for the routine part of the assessment. The new provision provides that the Enforcement Officer will assess only those transactions which are under investigation and the other turnover will be assessed in a regular manner by the assessing Officer having the normal jurisdiction over the case. (ii) As a matter of administrative policy, it has also been decided that as far as the present provision is concerned, the investigating Officer in Enforcement Branch will not be assessing the dealer under the present provision. The assessment order will be passed by another Officer in the Enforcement Branch. These instructions shall apply only in respect of cases taken up for transaction-wise assessment. (Sources : T. C. No. 10-T of 1999 dated 23-4-1999)
The Bombay Sales Tax Act, 1959
CHAPTER V Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax
¹ [bst193] [bst1][33A. Special provisions for transitional accounting year.- (1) If, in order to comply with the requirements of the Income-tax Act, 1961, as amended by the Direct Tax Laws (Amendment) Act, 1987, any dealer has changed the year by reference to which the accounts of that dealer are ordinarily maintained in his books of accounts, and if the dealer has adopted a transitional accounting year of a duration longer than his earlier accounting year as an incident of such change, then notwithstanding anything in this Act or the rules made and notifications issued thereunder, but subject to such conditions as may be prescribed, the provisions of this Act, rules made and notifications issued thereunder, shall, in respect of the transitional accounting year, apply in the manner hereinafter provided in this section. (2) The amount of tax due from a dealer liable to pay tax may be assessed or re-assessed by a single order of assessment in respect of the transitional accounting year. (3) Except for the purposes of section 3 and except where the context require otherwise, the word "year", wherever it occurs, shall be deemed to include the transitional accounting year and the provisions of this Act, rules made and notifications issued thereunder shall be construed accordingly. (4) Except for the purposes of section 3, and except where the context require otherwise, any reference in this Act, the rules made and notifications issued under this Act to any amount or amounts in relation to a year shall be construed for the purposes of the transitional accounting year as a reference to the said amount or amounts as increased by multiplying each such amount by a fraction of which the numerator is the number of months in the transitional accounting year and the denominator is twelve: Provided that where the transitional accounting year includes a part of a month, then, if such part is of fifteen days or more, it shall be increased to one complete month and if such part is of less than fifteen days, it shall be ignored. (5) If any difficulty arises in giving effect to the provisions of this section, during the period of three years from the date of commencement of the Bombay Sales Tax (Amendment and Validating Provisions) Act, 1988, the State Government may, as occasion arises, by order published in the Official Gazette, do anything not inconsistent with such provisions which appears necessary or expedient for the purpose of removing the difficulty.

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

¹ [bst194] [bst1][33B. Special Provisions for assessment for period shorter than a year.-Where a dealer is being assessed or re-assessed for a part of a year for any reason whatsoever, then for the purposes of levy of tax or exemption from the payment of whole or part of tax and for any purpose incidental or ancillary thereto, any reference to any specified amount or amounts in section 9, 15A-1 or in any notification issued under section 41 in relation to a year shall, for the purposes of such assessment or re-assessment, be construed as a reference to the said amount or amounts as reduced by multiplying each such amount or amounts by a fraction of which the numerator is the number of months in the part of the year for which such dealer is being assessed or re-assessed and the denominator is twelve :

Provided that, where such part of the year includes a part of a month, then if such part is of fifteen days or more, it shall be increased to one complete month and if such part is of less than fifteen days, it shall be ignored :

Provided further that, where such part of the year is of less than fifteen days it shall be increased to one complete month.]

Departmental Views on Amendment

By this section, a new Section 33B was inserted in the B.S.T. Act. Accordingly to this new section, where a dealer is being assessed or reassessed for a part of a year, then for the purposes of levy of tax or exemption from payment of whole or part of tax and for any purpose incidental or ancillary thereto, any reference to any specified amount or amounts in Section 9, 15A-1 or in any notification issued u/s 41 in relation to a year shall, for the purposes of such assessment or reassessment, be considered as a reference to the said amount or amounts as reduced by multiplying each such amount or amounts by a fraction, of which the numerator is the number of months in the part of the year and the denominator is twelve. In short, where a dealer is being assessed or reassessed for a period of less than 12 months, such specified amounts as reduced proportionately were to be taken into consideration for the purpose of levy, exemption, etc. This amendment continues in the same form. (Refer Circular No. 10T of 1994 & 8 of 1992).

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

¹ [bst195] [bst1][33C. Amalgamation of companies :- (1) When two or more companies are to be amalgamated by the Order of a court or of the Central Government and the Order is to take effect from a date anterior to the date of the said Order and any two or more of such companies have sold or purchased any goods to or from each other during the period commencing on the date from which the Order is to take effect and ending on the date of the Order, then notwithstanding anything contained in the said amalgamation Order, such transactions of sale and purchase shall be included in the turnover of sales or, as the case may be, purchases of the respective companies and shall be assessed to tax accordingly, and for the purposes of this Act, the said two or more companies shall be treated as distinct companies and shall be treated as such for the entire period up to the date of the said Order, and the registration certificates of the said companies shall be cancelled, or amended, where necessary, with effect from the date of the said amalgamation Order.

(2)Words and expressions used in this section, but not defined, shall have the respective meanings assigned to them in the Companies Act, 1956.]

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

¹[bst196] [bst1][33D. Cancellation of Assessment.- (1) Where a dealer is assessed at any time on or after such date as may be notified in this behalf by the State Government in the Official Gazette, in respect of any period whether ending before or after the said notified date, under section 33, and such dealer makes an application in the prescribed form to the Commissioner within thirty days from the date of service of the order of assessment for cancellation of the assessment on the ground that he had not been able to attend or remain present before the Commissioner at the time of hearing when the assessment order had been passed, the Commissioner shall, after verifying that the contention, of the applicant is correct and that the prescribed condition have been fulfilled, cancel by order in writing, the said assessment including any penalty and interest levied in relation to or in consequence of the said assessment and shall make a fresh assessment in accordance with the provisions of section 33 including levy of interest and penalty, as the case may be:

Provided that, only one application for cancellation shall be entertained under this sub-section in respect of any period of assessment.

As per Notification No. STA-1204/CR.66/Taxation-1, dated the 30th July 2004.

Date of Effect Reference as below :-

FINANCE DEPARTMENT

Mantralaya, Mumbai – 400 032, dated the 30th July 2004

No.STA-1204/CR.66/Taxation-1.— In exercise of the powers conferred by sub-section (1) of section 33D of Bombay Sales Tax Act, 1959 (Bom. LI of 1959) the Government of Maharashtra hereby appoints the 1st July 2004, to be the date for purposes of the said sub-section (1) of section 33D.

By order and in the name of the Governor of Maharashtra,

MURLIDHAR R. KOTNAKE

Under Secretary to Government

(2) Notwithstanding anything contained in section 33, the fresh order of assessment as provided under sub-section (1) may be passed at any time, within a period of eighteen months from the date of service of the cancellation order.]

Departmental View on Amendments

Where ex-parte orders are passed, a provision to enable the assessing officer to cancel the ex-parte assessment order on application by the dealer and restore the proceeding with that assessing officer is made by insertion of the new section 33D. Fresh assessment is to be made within a period of eighteen months from the date of service of the order canceling the assessment. The application for cancellation is to be made within thirty days from the date of service of the assessment order. For a given period of assessment only one application can be made. (Also Refer to circular no 11T of 2004). (Also refer STA.1204/CR-66/Taxation-1, dated 30th July 2004.)

The Bombay Sales Tax Act, 1959
CHAPTER V Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax
34. Applicability of all the provisions of this Act or earlier law to person liable to pay tax under section 19.-Where in respect of any tax ¹ [bst197] [bst1][including any penalty and interest] and interest due from a dealer under this Act or under any earlier law, any other person is liable for the payment thereof under section 19, all the relevant provisions of this Act or, as the case may be, of the earlier law, shall in respect of such liability applicable to such person also as if he were the dealer himself.
The Bombay Sales Tax Act, 1959
CHAPTER V Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax
35.Re-assessment of turnover escaping assessment under assessed, etc.-(1)¹ [bst198] [bst1][if, after a dealer has been assessed under section 33 or under section 4 or under section 41, for any year or part thereof, the Commissioner has reason to believe that any turnover of sales or turnover of purchases of any goods has in respect of that year or part thereof escaped assessment, or has been under-assessed or assessed at a lower rate, or that any deduction has been wrongly made or any draw-back, set-off or refund has been wrongly granted then the Commissioner may,-] ² [bst199] [bst2][*] (b) Where he has reason to believe that the dealer has concealed such sales or purchases or any material particulars relating thereto, or has knowingly furnished incorrect returns at any time within eight years, and (c) in any case, at any time within five years, ³ [bst200] [bst3][of the end of the year, after giving the dealer a reasonable opportunity of being heard, may proceed to assess or re-assess, to the best of his judgement, the amount of tax due from such dealer :] Provided that, the amount of tax shall be assessed at the rates at which it would have been assessed had there been no under assessment or escapement, but after making deductions (if any) permitted from time to time by or under this Act. ⁴ [bst201] [bst4][] : Provided further that, where in respect of such turnover an order has already been passed in appeal or revision under this Act ⁵ [bst202] [bst5][]. the Commissioner shall make a report to the appropriate appellate or revising authority under this Act, which shall thereupon after giving the dealer concerned a reasonable opportunity of being heard, pass such order as it deems fit. ⁶ [bst203] [bst6]["(IA) If, after assessment of a dealer is made under section 33, except under sub-section (2) thereof, in respect of any period, it is found that the total amount of tax paid with returns is less than eighty per cent of the tax so assessed and if the dealer has been assessed under sub-section(2) of section 33 in respect of any of the five periods immediately preceding the said period, then the Commissioner may at any time, within one year of the date of passing of the assessment order in which it has been found that the tax paid with returns is less than eighty per cent of the tax assessed, after giving the dealer a reasonable opportunity of being heard, proceed to assess or reassess, to the best of his judgement, the amount of tax due from such dealer, in respect of the period or periods, as the case may be, for which the dealer has been assessed under sub-section (2) of section 33."] (2) Nothing in sub-section ⁷ [bst204] [bst7][(I) or (IA)] shall apply to any proceeding (including any notice issued) under section ⁸ [bst205] [bst8][] 57 or 62. (3) Nothing in section 57 or 62 shall affect a proceeding under this section. Comments :* Section 35 [1A] gives power to the Commissioner to reopen the assessment cases of the dealers whose assessments are completed u/s 33[2] by accepting the returns, if in the assessment which is done on verification of account books has resulted in dues more than 20% of the tax paid with returns.
The Bombay Sales Tax Act, 1959
CHAPTER V Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax
36.Imposition of penalty in certain cases and bar to prosecution.- ¹ [bst206] [bst1][(1) Where any person, dealer or Commission Agent purchases any taxable goods under declaration given by him under section 8A, 11,12 or under any notification issued under section 41, and fails to comply with the conditions, recitals or undertakings of such declaration, then the Commissioner may, after giving such person, dealer or Commission Agent a reasonable opportunity of being heard by order in writing impose on him in addition to any tax payable a sum by way of penalty not exceeding twice the amount of tax. Provided that, no penalty under this sub-section shall be levied, if the person, dealer or the Commission Agent has included the purchase price of such goods in the turnover of purchases as required by sub-section (1) or (2) of section 14 or by sub-section (2) of section 41 and has paid the tax thereon.] ² [bst207] [bst2][(2)] If while assessing or reassessing the amount of tax due from a dealer under any provisions of this Act or while passing any order in any appeal, revision or rectification proceedings, it appears to the Commissioner or the Tribunal that such dealer has,-- (a) failed to apply for registration as required by section 22 or has carried on business as a dealer without being registered in contravention of section 22; or (b) failed without reasonable cause to comply with any notice in respect of the proceedings under sections 33,35, 49 or 57; or ³ [bst208] [bst3][(c)concealed the particulars of any transactions or knowingly furnished, inaccurate particulars of any transaction liable to tax.] then the Commissioner, or, as the case may be, the Tribunal, may, after giving the dealer an opportunity of being heard, by order in writing, impose upon the dealer by way of penalty, in addition to any tax assessed or reassessed or found due in the appeal or revision or rectification proceedings, as the case may be-- (i) in the case covered by clause (a), a sum not exceeding the amount of the tax payable by the dealer for the period during which he carried on business as a dealer without being registered in contravention of section 22; (ii) in the case covered by clause (b), a sum not exceeding rupees ten thousand; and Departmental Views Levy of penalty u/s 36(2)(c) : Section 36(2)(c) was amended in a major way in April 1987. At the same time, the provisions regarding levy of penalty for late payment of tax were substituted with levy of interest on such late payment. Interest is also levied on the differential dues resulting from assessment, etc. The levy of this interest is more or less automatic having been linked with late-payment or short-payment of taxes. It is attracted, irrespective of the fact whether default is intentional or otherwise. It has therefore become expedient to re-introduce section 36(2)(c), as it stood prior to its amendment in April 1987, so as to bring therein the element of mens-rea. The new provision takes effect from 1st October 1995. It will apply to all assessments after 1st October 1995. [Refer Trade Circular No. 20T of 1995] COMMENTS : 36(2)(c) (main clause) rigorously worded From 21-4-87 the section 36(2)(c) main clause was very loosely worded. Though it provides for severe penalty for suppression & concealment , the ingredient of "mens rea', was deleted and its scope was widened to include small and even inadvertent mistakes committed while accounting. As interest is also provided on the additional demand found due after assessment, it was the demand to draft Section 36(2)(c) (main clause) in precise words so that its misuse can be restricted. Now by Maharashtra Act 16 of 1995 the penalty u/s 36(2)(c) (main clause) is applicable to concealment. The burden to prove the same will be on the Department. (iii) in the case covered by clause (c), a sum not exceeding the amount of the tax found payable under the said clause.

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

Explanation I.- Where a dealer has been assessed under section 33 or under section 41, or reassessed under section 35, or in whose case an order has been passed under sections 55, 57 or 62 and the total amount of tax paid by the dealer with returns for any period is found to be less than eighty percent of the amount of tax so assessed or reassessed or found due in appeal or revision or rectification, then, for the purpose of clause (c) he shall be deemed to have ¹ [bst209] [bst1][concealed the particulars of the transactions or knowingly furnished inaccurate particulars of transactions liable to tax] unless he proves to the satisfaction of the Commissioner, or as the case may be, the Tribunal, that the payment of a lesser amount of tax was not due to neglect on his part;

Explanation II.- ² [bst210] [bst2][Where the dealer fails to furnish returns in respect of any period, then for the purpose of clause (c), he shall be deemed to have concealed the particulars of transactions or knowingly furnished inaccurate particulars of the transactions liable to tax as assessed or re-assessed or determined in an order passed under sections 55, 57 or 62, unless he proves to the satisfaction of the Commissioner that such failure was for sufficient cause."]

Comments : Section 36(2)(c) was amended with effect from 1-10-1995 by introducing the ingredients of mens rea. To bring the explanation in conformity with the main clause the wordings of the explanation I and II are now amended with retrospectively effect of 1-10-1995.

The amendment to explanation II is for overcoming the effect of the Bombay High Court judgement in case of M/s Indoswe Engineers (101 STC 172). It was held by the Bombay High Court in that case, that once the dealer shows that the books of accounts are accepted then the onus under the Expl. II is shifted on the Dept. to show that there is a concealment. Now the words "until contrary is proved" are removed from Expl. II. The penalty under Expl. II can be invoked by the Dept. if the returns for any period are not filed and there is no sufficient cause for such failure. This amendment is effective from 1-10-1995. (Refer Trade Circular No. 27T of 1996).

³ [bst211] [bst3][(2A) Where any ⁴ [bst212] [bst4][dealer or person knowingly] issues or produces a false bill, cash memorandum, voucher, declaration, certificate or other document by reason of which transaction of sale or purchase effected by him or by any other dealer is not liable to be taxed or is liable to be taxed at a reduced rate, then the Commissioner may, after giving ⁵ [bst213] [bst5][such dealer or, as the case may be, such person] a reasonable opportunity of being heard, by order in writing impose on him, in addition to any tax payable,-

(a) in the case of the first occasion of such issue or production, a sum by way of penalty not exceeding the amount of tax due in respect of the transaction; and

(b) in the case of the second or subsequent such occasion, a sum by way of penalty not exceeding twice the amount of tax due in respect of the transaction.

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

Comments : The person who may not be a dealer, is also liable for penalty for issuing or producing false bills or declarations relating to the defaults mentioned in sec.36(2A).

(2B) Where under the provisions of this Act or the rules made thereunder, a person furnishes a declaration or certificate by reason of which any tax is not leviable on any sale or purchase, and where such person knew or had reason to believe that such declaration or certiifcate was false, or such person fails to abide by, or acts in contravention of the recitals or terms of such declaration or certificate, the Commissioner may, after giving such person a reasonable opportunity of being heard, direct him to pay by way of penalty a sum not exceeding double the amount of tax which, in the opinion of the Commissioner, would have been leviable on such sale or purchase had such declaration or certificate not been furnished.]

¹ [bst214] [bst1][(3) (a) If a dealer or a person does not pay the tax within the time he is required by or under the provisions of this Act to pay it, then he shall be liable to pay by way of simple interest, in addition to the amount of such tax, a sum equal to ²[bst215] [bst2][one and a quarter per cent.] of the amount of such tax, for each month or for part thereof after the last date by which he should have paid such tax.

³[bst216] [bst3][ Provided that, in the case of tax referred to in sub-clauses (ii) and (iii) of clause (a) of sub-section (4) of section 38 no interest shall be payable under this clause for a period commencing on the date immediately following the date of order of assessment or, as the case may be, re-assessment and ending on the date specified in the notice served under the said sub-section (4).

Explanation.-- (A) For the purposes of this clause, in relation to the tax payable according to a return ⁴ [bst217] [bst4][or revised return] or as the case may be, to the payment of tax for a period covered by a return ⁵ [bst218] [bst5][or revised return] a dealer or a person shall, notwithstanding anything contained in section 38 or any other provision of this Act or the rules made thereunder, be deemed not to have paid the amount of such within the time he is required by or under the provisions of this Act to pay it, if he has not paid the full amount of such tax on or before the last date prescribed for furnishing of ⁶[bst219] [bst6][such return or revised return as provided by or under the provisions of this Act] and accordingly, if he has not paid the full amount of such tax or has tax or paid only the part of the amount of such tax by such date, he shall be liable under this clause for payment of interest after such date on the full or part, as the case may be, of the amount of such tax which has remained unpaid on such date.]

9. Sub-section 3 Clauses (c) and (d) were added and shall be deemed to have been added w.e.f. 21.4.1987 by Mah. Act No. 17 of 1999 dated 30.3.1999. s.8 (Refer T.C. No. 6-T and 10-T of 1999.) and again clauses (c) and (d) were deleted by the Mah. Act No. LI of 2000, dated 20.12.2000, w.e.f. 13.9.2000. s.7. (Refer T.C. No. 25-T of 2000 dated 16.9.2000). Prior to deleted to Clauses (c) and (d) stood as under :-

"(c) if a dealer or a person does not pay the tax within the time he is required, by or under the provisions of this Act, to pay, the Commissioner may, after giving the dealer or person an opportunity of being heard, by an order in writing, impose upon the dealer or person by way of penalty, in addition to the amount of such tax, a sum equal to two per cent of the amount of such tax, for each month or part thereof, after the last date by which he should have paid such tax :

Provided that, in the case of the tax referred to in sub-clauses (ii) and (iii) of clause (a) of sub-section (4) of section 38, no penalty shall be payable under this clause for the period commencing on the date immediately following the date of the order of assessment, or as the case may be reassessment and ending on the date specified in the notice served under the said sub-section (4).

Explanation.— For the purposes of this clause, in relation to the tax payable according to a return or revised return or, as the case may be, to the payment of tax for the period covered by a return or revised return, a dealer or a person shall, notwithstanding anything contained in section 38 or any other provision of this Act or the rules made thereunder, be deemed not to have paid the amount of such tax within the time he is required by or under the provisions of this Act to pay, if he has not paid the full amount of such tax on or before the last date prescribed for furnishing of such return or revised return as provided by or under the provisions of this Act and accordingly, if he has not paid the full amount of such tax or has paid only the part of the amount of such tax by such date, he shall be liable under this clause for payment of penalty after such date, on the full or part, as the case may be, of the amount of such tax which has remained unpaid on such date.

(d) If any tax, other than the tax on which penalty is leviable under clause (c), has remained unpaid ^*[for one month after the end] of any period of assessment, the Commissioner may, after giving the dealer an opportunity of being heard, by an order in writing, impose upon the dealer, by way of penalty, a sum equal to two per cent of such tax for each month or part thereof from the date immediately following the date on which the period for which the dealer or person has been assessed expires till the date of order of assessment and where any payment of such unpaid tax whether in full or in part is made on or before the date of order of assessment, the amount of such penalty shall be calculated by taking into consideration the amount of and the date of such payment. If as a result of any order passed under this Act, the amount of tax which had so remained unpaid is enhanced or reduced, as the case may be, the penalty shall be enhanced or reduced accordingly :

Provided that, in respect of any period of assessment starting on or after the 1st April ^**[2000], any tax referred to in this clause has remained unpaid and the dealer has filed all the returns in respect of the said period of assessment ^***[within one month from the end] of the said period of assessment, then, —

(i) no penalty under this clause shall be payable by the dealer or the person if the tax so remained unpaid is less than ten per cent of the amount of tax assessed, reassessed, or found due in appeal, revision or rectification; and

(ii) no dealer or person shall be liable to pay penalty under this clause for a period in excess of eighteen months, provided he has not concealed the particulars of any transactions or has not knowingly furnished inaccurate particulars of any transactions liable to tax :

Provided further that, no penalty under clauses (c) and (d) shall be payable by dealer to whom an Eligibility Certificate has been granted and for whom the due date of payment has been extended, moratorium has been granted or instalments have been granted under the second proviso to sub-section (4) of section 38 and the payments have been made in accordance with the provisions of this Act."]

*. These words were substituted for the words "on the date prescribed for filing the last return in respect" by the Mah. Tax Laws (Levy and Amendment) Act, 2000 (Mah. Act No. 28 of 2000) w.e.f. 1.5.2000. s.8(b)(i). (Refer T.Cr. No. 11-T of 2000, dt. 29-4-2000).

** These figures were substituted for the figures "1995" by the Mah. Tax Laws (Levy and Amendment) Act, 2000 (Mah. Act No. 28 of 2000) w.e.f. 1.5.2000. s.8(b)(ii)(I)(II). (Refer T.Cr. No. 11-T of 2000, dated 29-4-2000).

*** These words were substituted for the words "on or before the date prescribed for filing the last return in respect" by the Mah. Tax Laws (Levy and Amendment) Act, 2000 (Mah. Act No. 28 of 2000) w.e.f. 1.5.2000. s.8(b)(ii)(I)(II). (Refer T.Cr. No. 11-T of 2000, dated 29-4-2000).

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

¹ [bst220] [bst1][(b) If any tax, other than the tax on which interest is leviable under clause (a), has remained unpaid ² [bst221] [bst2][for one month after the end] of any period of assessment, then the dealer or the person shall be liable to pay by way of simple interest, a sum equal to ³[bst222] [bst3][one and a quarter per cent.] of such tax for each month or part thereof from the date immediately following the date on which the period for which the dealer or person has been assessed expires till the date of order of assessment and where any payment of such unpaid tax whether in full or part is made on or before the date of order of assessment, the amount of such interest shall be calculated by taking into consideration the amount of and the date of such payment. If as a result of any order passed under this Act, the amount of tax which had so remained unpaid is enhanced or reduced, as the case may be, the interest shall be enhanced or reduced accordingly]:

Provided that the Commissioner ⁴ [bst223] [bst4][or any appellate or revisional authority may, subject to the rules and] for reasons to be recorded in writing, remit the whole or any part of the interest payable in respect of any period:

⁵[bst224] [bst5][Provided also that, in respect of any period of assessment starting on or after the 1st April ⁶ [bst225] [bst6][2000], any tax referred to in clause (b) ⁷ [bst226] [bst7][has remained unpaid and the dealer has filed all the returns ⁸[bst8][bst227] [other than the annual return] in respect of the said period of assessment ⁹ [bst228] [bst9][within one month from the end] of the said period of assessment, then]

(a) No interest under that clause shall be payable by the dealer or the person if the tax so remained unpaid is less than ten percent. of the amount of tax assessed, reassessed, or found due in appeal, revision or rectification; and

(b) no dealer or person shall be liable to pay interest under that clause for a period in excess of eighteen months ¹⁰ [bst229] [bst10][only if he has not concealed the particulars of any transactions or has not knowingly furnished in accurate particulars of any transactions liable to tax]

Provided further that no interest under this section shall be payable by a dealer to whom an Eligibility Certificate has been granted and for whom due date of payment has been extended, moratorium has been granted or installments have been granted under the second proviso the sub-section (4) of section 38 and the payments have been made in accordance with the provisions of this Act.]

¹¹[(c) * * * deleted w.e.f. 13.9.2000]

¹¹[(d) * * * deleted w.e.f. 13.9.2000]

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

Departmental View

(1) By this amendment the rate of interest under sub-section (3) of section 36 on late payment of admitted tax and on additional demand of tax raised after assessment is reduced to ‘one and a quarter’ per cent. from ‘two’ per cent.

(2) For the purpose of section 36(3)(a), the old rates of interest will apply where the default starts and ends before the 1st July 2004. If the tax’ has become due before the 1st July 2004 and the default continues after the 1st July 2004 then for the period of default before the 30th June 2004, the old "rates of ‘interest shall apply and in so far as the default continues after the 1st July, 2004, the new rates will apply.

(3) For the purpose of section 36(3) (b) , the old rates of interest will apply where the orders are passed before the 1st July 2004. If the orders are passed after 1st July 2004 but they pertain to an assessment period ending on or before the 30th June 2004, then the old rates of interest will apply for the period upto 30th June 2004 and the new rates of interest shall apply for the period starting from the 1st July 2004 upto the date of order.

(4) An amendment is made to the third proviso of sub-section (3) to state that the concession regarding non-levy of interest available under clause (a) and (b) of that proviso will be available only if all the returns, in respect of that year except the annual return are filed within one month of the end of the year. The amendment is clarificatory and takes effect from the 1st April 2000. (Also Refer Tr. Cir. No. 11T of 2004, dated 8th July, 2004).

NOTES :-

(i) Rate of interest under Section 36(3) (a) & 36(3)(b) is reduced from 24% P.A. to 15% P.A.

(ii) There is an amendment to the third proviso and it is really a welcome amendment. The position before amendment was — The dealer were disentitled to claim benefit of the above proviso. The requirement was to file all returns within one month from the end of the period of assessment Annual return is also a return in respect of an assessment period and time limit for same is six months from end of period. Thus even if annual return is filed within prescribed time of six months, the same may not be within one month of end of period and benefit would not be available. However the Commissioner of Sales Tax in Trade Circular No. 11-T of 2000 dt. 29-04-2000 has mentioned that the return excluding annual return should filed within one month, but the same was not according to the requirement of the law. Therefore, there was demand to amend the said provision suitably.

Now the amendment is meaningful and give sigh of relief to the dealers. The benefit of the proviso will be available only if regular return other than annual return are filed within one month from the end of said period of assessment.

(iii) A penalty is provided of Rs. 2,000/- if dealer fails to file return as provided in Section 22(8)(c)(i). Such penalty shall be without prejudice to any other penalty leviable under this section.

(iv) Now penalty shall be imposed for non-filing of Annual Return within prescribed time. (Also Refer Tr. Cir. No. 11T of 2004, dated 8th July, 2004).

(4) If any dealer contravenes the provisions of section 47, the Commissioner may, after giving such dealer an opportunity of being heard, direct him to pay by way of penalty a sum not exceeding double the amount of such bill or cash memorandum in respect of which such contravention has occurred or one hundred rupees, whichever is more.

¹ [bst230] [bst1][(4A) Where a dealer has failed, without sufficient cause, to file within the prescribed time, a return as required by sub-clause (i) of clause (c) of sub-section (8) of section 22, the Commissioner may, after giving him a reasonable opportunity of being heard, impose upon him a penalty of rupees two thousand. Such penalty shall be without prejudice to any other penalty leviable under this section.

(4B) (i) Where a dealer has failed, without sufficient cause, to file within the prescribed time, an annual return in respect of any period, the Commissioner may, after giving such dealer a reasonable opportunity of being heard, impose upon him a penalty of,—

(a) rupees one thousand five hundred, in case such dealer’s annual tax liability for the period to which the annual return relates, does not exceed rupees twenty thousand;

(b) rupees ten thousand, in case such dealer’s annual tax liability for the period to which the annual return relates, exceeds rupees twenty thousand but does not exceed rupees four lakh;

(c) rupees twenty five thousand, in case such dealer’s annual tax liability for the period to which the annual return relates, exceeds rupees four lakh.

Explanation—For the purpose of this sub-section, the expression "tax liability" in relation to a Registered Dealer means,—

(a) in the case of a dealer holding an Eligibility Certificate and a Certificate of Entitlement under the relevant entry of the Schedule to the Notification issued under section 41, the cumulative quantum of the benefits availed of by such dealer calculated in accordance with the rules, in respect of the said year, and

(b) in any other case, the total of all taxes payable by such dealer in respect of all his places of business in the State under the Central Sales Tax Act, 1956 and the Bombay Sales Tax Act, 1959 less the amount of drawback, set-off, refund or remission claimed by him, if any.

(ii) Any penalty levied under this sub-section shall be without prejudice to any other penalty levied or leviable under this section.

NOTES :- Where a dealer has failed, without sufficient cause, to file within prescribed time, an annual return, in respect of any period, the Commissioner may, after giving such dealer a reasonable opportunity of being heard, impose upon him a penalty of,—

(a) If Dealer’s Annual tax liability for the period to which the annual return relates does not exceed Rs. 20,000/-	Rs. 1,500/-
(b) If Dealer’s Annual tax liability for the period to which the annual return relates exceeds Rs. 20,000/- but does not exceeds Rs. 4,00,000/-	Rs. 10,000/-
(c) If Dealer’s Annual tax liability for the Period to which the annual return relates exceeds Rs. 4,00,000/-	Rs. 25,000/-
Now question arises as whether penalty may be imposed where Annual Return are filed late and Assessments are pending? Explanation.- For the purpose of this sub-section, the expression "tax liability" in relation to a Registered Dealer means,- (a) In the case of a dealer holding an Eligibility Certificate and a Certificate of Entitlement under the relevant entry of the Schedule to the Notification issued under section 41, the cumulative quantum of the benefits availed of by such dealer calculated in accordance with the rules, in respect of the said year, and (b) In any other case, the total of all taxes payable by such dealer in respect of all his places of business in the State under the Central Sales Tax Act, 1956 and the Bombay Sales Tax Act, 1959 less the amount of drawback, set-off, refund or remission claimed by him, if any Any penalty levied under this sub-section shall be within prejudice to any other penalty levied or leviable under this section.(Also Refer Tr. Cir. No. 11T of 2004, dated 8th July, 2004).

(4C) On a dealer failing without sufficient cause, to file within the prescribed time, any return for any period, then in any case where sub-section (4A) or (4B) do not apply, the Commissioner may, after giving the dealer a reasonable opportunity of being heard, impose upon him, a penalty of rupees two thousand. Such penalty shall be without prejudice to any other penalty leviable under this section].

(5) No prosecution for an offence under this Act, shall be instituted in respect of the same facts on which a penalty has been imposed under this section.

(i) Interest will not be levied if the additional is less than 10% and

(ii) The interest will not be levied for the period in excess of 18 months.

However such interest can be levied on differential dues arising not only in assessment but also arising in reassessment, appeal, revision or rectification. Abovementioned two conditions will also apply to the dues arising out of such proceedings.

Comments: By amending the proviso, the restricted levy of post assessment interest u/s 36[3][b] for 18 months is made applicable in case of only those dealers who have filed all the returns before the date of filing the last return of that period and that there is no concealment or knowingly furnishing inaccurate returns. (Refer Trade Circular No. 27T of 1996.) [w.e.f. 15-5-1997].

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

¹ [bst231] [bst1][36A. Date from which penalty deemed to be payable under section 36(3) during certain period.- It is hereby declared that, for the purposes of sub-section (3) of section 36 as in force during the period commencing on the 1st January 1960 to 20th April 1987 (both days inclusive), in relation to the tax payable according to the return or, as the case may be, to the payment of tax for the period covered by a return, a dealer shall, notwithstanding anything contained in section 38 as in force during the period aforesaid or any other provision of this Act or the rules made thereunder, be deemed not to have paid the amount of such tax within the time he is required by or under the provisions of this Act to pay it, if he has not paid the full amount of such tax on or before the last date prescribed for furnishing of such return as required under the rules made under this Act; and accordingly, if he has not paid the full amount of such tax or has paid only the part of the amount of such tax by such date, he shall be deemed to have been liable under the said-sub-section (3) of section 36 for penalty after such date on the full or part, as the case may be, of the amount of such tax which has remained unpaid on such date.

Explanation.- For the purposes of the said sub-section (3) of section 36, the ground that a dealer is required to pay the tax payable according to a return, or as the case may be, for the period covered by a return, only when he receives a notice under sub-section (4) of section 38, or if such a notice is received till the expiry of the date specified therein, shall not be deemed to constitute a reasonable cause.]

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

37.Imposition of penalty for contravening certain Provisions.-

¹ [bst232] [bst1][(1) If any person-

(a) (i) not being a dealer liable to pay tax under this Act, collects any sum by way of tax, or

(ii)being a registered dealer, collects any amount by way of tax in excess of the tax payable by him, or

(ii-a-1)² [bst233] [bst2][* * * *]

(ii-a)³ [bst234] [bst3][* * * *]

(iii)otherwise collects tax in contravention of the provisions of section 46, or

(b) being a dealer liable to pay tax under this Act, or being a dealer who was required to do so by the Commissioner by a notice served on him fails in contravention of sub-section (1) of section 48 to keep a true account of the value of the goods purchased or sold by him, or fails when directed so to do under that section to keep any accounts or record in accordance with the direction,-

he shall be liable to pay in addition to any tax for which he may be liable, a penalty of an amount as follows :-

(i) Where there has been a contravention referred to in clause (a) (i) or (iii), a penalty of an amount ⁴ [bst235] [bst4][not less than rupees two thousand but not exceeding the amount collected by way of tax.]

(ii) Where there has been a contravention referred to in ⁵ [bst236] [bst5][clause (a) (ii) or clause (b), a penalty of an amount not exceeding two thousand rupees, and in addition, any sum collected by the person by way of tax in contravention of section 46] shall be forfeited to the State Government. When any order of forfeiture is made, the Commissioner shall publish or cause to be published a notice thereof for the information of the persons concerned giving such details and in such manner as may be prescribed.

(2) If the Commissioner in the course of any proceeding under this Act or otherwise has a reason to believe that any person has become liable to a penalty or forfeiture or both penalty and forfeiture or any sum under sub-section (1) he shall serve on such person a notice in the prescribed form requiring him on a date and at a place specified in the notice to attend and show cause why a penalty or forfeiture or both penalty and forfeiture of any sum as provided in sub-section (1) should not be imposed on him.

(3) the Commissioner shall thereupon hold an inquiry and shall make such order as he thinks fit.

(4) No prosecution for an offence under this Act shall be instituted in respect of the same facts on which a penalty has been imposed under this section.

Comments : The maximum penalty for excess collection is now reduced to the amount equal to the excess tax involved as against double the amount of such tax. The maximum penalty under old provisions was Rs. 2000, which will now be more than Rs. 2000 but not exceeding the amount of tax collected.

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

38. Payment of tax ¹[bst237] [bst1][and deferred payment of tax, etc.].-

(1) Tax shall be paid in the manner herein provided, and at such intervals as may be prescribed.

²[bst238] [bst2][(2) A Registered dealer furnishing returns as required by sub-section (1) of section 32, shall first pay into a Government treasury, in such manner and at such intervals as may be prescribed, the amount of tax due from him for the period covered by a return alongwith the amount of ³ [bst239] [bst3][penalty or interest or both] payable by him under section 36].

(3) A Registered dealer furnishing a revised return in accordance with sub-section (3) of section 32, which revised return shows that a larges amount of tax than already paid is payable, shall first pay into a Government treasury the extra amount of tax.

(4) (a) The amount of tax-

(i) ⁴[bst240] [bst4][* * *] due where returns have been furnished without full payment thereof, or

(ii) assessed or reassessed for any period under section 33 or section 35 less any sum already paid by the dealer in respect of such period, ⁵[bst241] [bst5][or

⁶[bst242] [bst6][(iii) assessed under sub-section (3) of section 41, and]

(b) the amount of ⁷[bst243] [bst7][penalty or interest or both] (if any) levied under section 36 or 37 ⁸[bst244] [bst8][* * *] and

(c) the sum (if any) forfeited to the State Government under section 37, ⁹[bst245] [bst9][and]

(d) the amount of fine (if any) imposed under sub-section (3) of section 53 ¹⁰[bst246] [bst10][and]

(e) any other dues under this Act

shall be paid by the dealer or the person liable therefor into a Government treasury ¹¹[bst247] [bst11][within thirty days from the date of service of the notice issued by the Commissioner in respect thereof] :

Provided that, the Commissioner ¹²[bst248] [bst12][* * *] may, in respect of any particular dealer or person and for reasons to be recorded in writing extend the date of payment or allow him to pay the tax or penalty ¹³[bst249] [bst13][or interest] (if any) or the sum forfeited, by instalments ¹⁴[bst250] [bst14][but such extension or grant of instalment to pay tax shall be without prejudice to the levy of penalty, interest, or both;]

¹⁵[bst251] [bst15][Provided further that, the Commissioner may, in respect of a dealer to whom an Eligibility Certificate has been granted ¹⁶[bst252] [bst16][* * *] extend the date of payments or grant a moratorium for payment of the dues or provide for payment of the dues thereafter in instalments, subject to such conditions as may be prescribed] :

¹⁷[bst253] [bst17][Provided also that, notwithstanding anything contained in this Act or in the rules made thereunder but subject to such conditions as the State Government or the Commissioner may by general or special order specify, where a dealer to whom incentive by way of deferment of sales tax or purchase tax or both ¹⁸[bst254] [bst18][under the 1979 Scheme, the 1983 Scheme or, as the case may be the Electronic Scheme falling under the Package Scheme of Incentives designed by the State Government or of the tax under ¹⁹[bst255] [bst19][the 1988 or the 1993 Package Scheme of Incentives designed by State Government] have been granted by virtue of Eligibility Certificate, and where a loan liability equal to the amount of any such tax payable by such dealer has been raised by the SICOM ²⁰[bst256] [bst20][or the Directorate of industries] or the relevant Regional Development Corporation ²¹[bst257] [bst21][or the District Industries Centre Concerned] then such tax shall be deemed in the public interest, to have been paid.

²²[bst258] [bst22][Provided also that, notwithstanding anything to the contrary contained in the Act or in the rules or in any of the Package Scheme of Incentives or in the Power Generation Promotion Policy 1998, the Eligible Unit to whom an Entitlement Certificate has been granted for availing of the incentives by way of deferment of sales tax, purchase tax, additional tax, turnover tax or surcharge, as the case may be, may, in respect of any of the periods during which the said certificate is valid, at its option, prematurely pay in place of the amount of tax deferred by it an amount, equal to the net present value of the deferred tax as may be prescribed, and on making such payments, in the public interest, the deferred tax shall be deemed to have been paid.]

(5) Any tax, penalty, ²³[bst259] [bst23][interest] or sum forfeited, which remains unpaid after the ²⁴[bst260] [bst24][service of notice under sub-section (4), or] any installment not duly paid, shall be recoverable as arrears of land revenue.

²⁵[bst261] [bst25][(6) Notwithstanding anything contained in this Act or in any other law for time being in force, where any sum collected by a person by way of tax in contravention of section 46, is forfeited to the State Government under section 37 and is recovered from him, such payment or recovery shall discharge him of the liability to refund the sum to the person from whom it was so collected. ²⁶[bst262] [bst26][A refund of such sum or any part thereof can be claimed from Government by the person from whom it was realised by way of tax, provided such person has not resold the goods within a period of two years from the date of purchase; and an application in writing in the prescribed form is made to the Commissioner, within two years from the date of the order of forfeiture.] On receipt of any such application, the Commissioner shall hold such inquiry as he deems fit, and ²⁷[bst263] [bst27][if the applicant proves to the satisfaction of the Commissioner that the goods are not resold by him as aforesaid and if the Commissioner] is satisfied that the claim is valid and admissible and that the amount so claimed as refund was actually paid in Government treasury or recovered, and no draw-back, set-off, refund or remission in respect of that amount was granted, he shall refund the same or any part thereof, which is found due to the person concerned.]

²⁸[bst264] [bst28][(6A)(i) On the commencement of the Maharashtra Tax Laws (Levy, Amendment and Repeal) Act, 1989, there shall be established a fund to be called the Maharashtra Consumer Protection and Guidance Fund (hereinafter, in this section, referred to as "the Fund"). From the amounts forfeited and recovered except for the amounts refunded as aforesaid to the purchasers and except for the amounts in respect of which a draw-back, set-off, refund or remission is granted, and after deducting the expenses of collection and recovery as determined by the State Government, the remaining amounts shall under appropriation duly made by law in this behalf, be entered into, and transferred to, that Fund.

(ii) No sum from the Fund shall be paid or applied for any purpose other than the one specified in clause (iii).

(iii) The fund shall be administered in the prescribed manner and the amount in the fund shall be utilised for meeting the expenses of any activities related to consumer protection and guidance as the State Government may direct, and for giving grant in the prescribed manner to any voluntary consumer organisation, society, association, body or institution engaged in providing for the better protection of the interests of the consumers and having such qualifications as may be prescribed.]

²⁹[bst265] [bst29][(7) Where any sum so forfeited is paid into the Government treasury or recovered as an arrears of land revenue at any time before the commencement of the Bombay Sales Tax (Amendment) Act, 1969, a claim for refund may be made by the person concerned to the Commissioner in accordance with sub-section (6) within one year from such commencement.]

Departmental Views on Amendments

The amendment provides now for a unit under the Package Scheme of Incentives to make re-payment of loans by a smaller sum today. The economic principle for recovery of future debts at Net Present Value suggests that they are in the interest of revenue. It also facilitates the units to discharge their liabilities in advance by paying a smaller sum. With a view to achieve this objective and provide a mechanism for the same, this amendment is carried out. [Refer Trade Circular No. 20T of 1995)

Comments : Advance payment deferred taxes

Maharashtra Government had introduced Various Package Schemes of Incentives for the benefit of Backward area. The beneficiaries of these schemes are either to defer the payment of taxes or they are treated as loans. Provision is now made by Maharashtra Act 16 of 1995 to allow them to discharge their liability before the repayment is due. Such liability can be discharged even by payment of reduced amount as per rules prescribed.

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

¹[bst266] [bst1][38A. Rounding off the tax, etc.- The amount of tax penalty, interest, composition money, fine or any other sum payable, and the amount of draw back, set-off or refund due under the provisions of this Act, shall be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee consisting of paisa, then, if such part is fifty paisa, or more it shall be increased to one Rupee and if such part is less than fifty paisa then it shall be ignored :

Provided that, nothing in this section shall apply for the purpose of collection by the dealer of any amount by way of tax under this Act.]

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

¹ [bst267] [bst1][38C. Liability under this Act to be first charge.- Notwithstanding anything contained in any contract to the contrary but subject to any provision regarding first charge in any Central Act for the time being in force, any amount of tax, penalty, interest or any other sum, payable by a dealer or any other person under this Act, shall be the first charge on the property of the dealer, or, as the case may be, person."]

COMMENTS : The section provided that the Sale Tax dues shall be the first charge on the property of the defaulter in certain circumstances.

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

39.Special mode of recovery.-Notwithstanding anything contained in any law or contract to the contrary, the Commissioner may, at any time or from time to time, by notice in writing, a copy of which shall be forwarded to the dealer at his last address known to the Commissioner, require,-

(a) any person from whom any amount of money is due, or may become due, to a dealer on whom notice has been served under sub-section (4) of section 38, or

(b) any person who holds or may subsequently hold money for or on account of such dealer

to pay to the Commissioner, either forthwith upon the money becoming due or being held or at or within the time specified in the notice (but not before the money becomes due or is held as aforesaid), so much of the money as is sufficient to pay the amount due by the dealer in respect of the arrears of tax, penalty, ¹ [bst268] [bst1][interest] and sum forfeited under this Act, or the whole of the money when it is equal to or less than that amount.

² [bst269] [bst2][***]

Explanation-For the purposes of this section the amount of money due to a dealer from, or money held for or on account of a dealer by, any person, shall be calculated after deducting there from such claims (if any) lawfully subsisting, as may have fallen due for payment by such dealer to such person.

The Commissioner may at any time, or from time to time, amend or revoke any such notice, or extend the time for making any payment in pursuance of the notice.

Any person making any payment in compliance with a notice under this section shall be deemed to have made the payment under the authority of the dealer, and the receipt of the Commissioner shall constitute a good and sufficient discharge of the liability of such person, to the extent of the amount referred to in the receipt.

Any person discharging any liability to the dealer after receipt of the notice referred to in this section shall be personally liable to the Commissioner to the extent of the liability discharged, or the extent of the liability of the dealer for tax, penalty, ³ [bst270] [bst3][interest], and sum forfeited, whichever is less.

Where a person to whom a notice under this section is sent proves to the satisfaction of the Commissioner that the sum demanded or any part thereof is not due to the dealer, or that he does not hold any money for or on account of the dealer, then, nothing contained in this section shall be deemed to require such person to pay any such sum or part thereof, as the case may be, to the Commissioner.

Any amount of money which a person is required to pay to the Commissioner, or for which he is personally liable to the Commissioner under this section shall, if it remains unpaid, be recoverable as an arrear of land revenue.

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

Comments : The powers u/s 39-IA can be exercised by the Additional Commissioner right from 1-4-1989. [w.e.f. 15-5-1997].

¹ [bst271] [bst1][(6) where a notice under sub-section (1) is served upon any person, provisionally attaching any money, then, such person shall be personally liable, so long as the attachment notice is not revoked, to pay to the Commissioner, the amount of money so attached.".]

Comments : The provisional attachment can be revoked by the Commissioner if security as prescribed is furnished by the dealer. Once notice of provisional attachment is issued by the Commissioner, then according to sub.sec (6) the dealer has to pay the amount indicated in the notice or has to give security as prescribed.

Departmental Views on Amendment

By this section, the provisions of Section 39-1A of the B.S.T. Act were amended, providing for a review by the Commissioner, on an application, of the notice of provisional attachment issued by a Deputy Commissioner. This amendment has been continued with the modification that if a person is aggrieved by the order passed by the Commissioner in the review, then he can make an application to the Tribunal and on the basis of this application, the Tribunal can call for and examine the relevant records and pass a just and proper order. The applications provided in Section 39 1A of the Commissioner and to the Tribunal are notwithstanding the fact that the notice/order u/s39-1A is not appealable u/s56. (Refer Circular No. 10T of 1994 & 8 of 1992)

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

¹ [bst272] [bst1][39-IA.Provisional attachment to protect revenue in certain cases.- (1) If during the course of inquiry in any proceedings of assessment or re-assessment or revision or of recovery of any tax or for recovery of any other sums recoverable under this Act from any person or dealer or during any inspection or search in relation to the business of any person or dealer under this Act, the Commissioner is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, then he may, notwithstanding anything contained in any law for the time being in force or any contract to the contrary, attach provisionally by notice in writing any money due or which may become due to such person or dealer from any other person or any money

which any person holds or may subsequently hold for or on account of such person or dealer.

² [bst273] [bst2][Provided that, the Commissioner may, by an order, revoke such notice if the dealer furnishes, to the Commissioner, in the prescribed manner and in such time such security, for such period, as may be specified, in the said order.;]

(2) Every such provisional attachment shall cease to have effect after the expiry of a period of six months from the date of the notice issued under sub-section (1):

Provided that, the Commissioner, may, for reasons to be recorded in writing extend the aforesaid period by such further period or periods as he thinks fit, so however, that the total period of extension shall not in any case exceed two years.

³ [bst274] [bst3][(3) Within a period of fifteen days of the service of any notice under sub-section (1) or, from the date of order, if any, extending the period under sub-section (2), as the case any be, the Commissioner shall, on an application in writing by such person or dealer, afford such person or dealer a reasonable opportunity of being heard; and the Commissioner may thereafter, having regard to the circumstances of the case, modify, cancel or confirm the said notice or order, as the case may be.

(4) The powers under this section shall be exercised by the ⁴ [bst275] [bst4]["Commissioner himself or Additional Commissioner or, as the case may be, by any Deputy Commissioner"] to whom such powers have been delegated, by order in writing, by the Commissioner.]

⁵ [bst276] [bst5][(5) Notwithstanding anything contained in section 56, a person aggrieved by an order passed under sub-section (3) may, within sixty days from the date of receipt of such order, make an application to the Tribunal in the prescribed form, and thereupon, the Tribunal may call for and examine the record of any such order and pass such order thereon as it thinks just and proper.]

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

² [bst277] [bst1][39A.Continuation and validation of certain recovery proceedings.- (1) Where any notice of demand in respect of any tax or penalty ³ [bst278] [bst2][or interest (hereinafter in this section referred to as "Government dues") is served upon a dealer or the person liable therefore under sub-section (4) of section 38, and any appeal, revision application or other proceedings is filed or taken in respect of such Government dues, then-

(a) Where such Government dues are enhanced in such appeal, revision or proceeding, the Commissioner shall serve upon the dealer or person, as the case may be, another notice only in respect of the amount by which such Government dues are enhanced and any recovery proceedings in relation to such Government dues as are covered by the notice or notices of demand served upon him before the disposal of such appeal, revision application or proceeding may, without the service of any fresh notice, be continued, from the stage at which such proceedings stood immediately before such disposal;

(b) where such Government dues are reduced in such appeal, revision or proceedings,-

(i) it shall not be necessary for the Commissioner to serve upon the dealer or person a fresh notice;

(ii) the Commissioner shall give intimation of the fact of such reduction to him;

(iii) any recovery proceedings initiated on the basis of the notice or notices of demand served upon him before the disposal of such appeal, revision application or proceeding may be continued in relation to the amount so reduced from the stage at which such proceedings stood immediately before such disposal.

(c) no recovery proceedings in relation to such Government dues shall be invalid by reason only that no fresh notice of demand was served upon the dealer or person after the disposal of such appeal, revision application or proceeding or that such Government dues have been enhanced or reduced in such appeal, revision or proceeding :

Provided that, where any Government dues are reduced in such appeal, revision or proceeding and the dealer or person is entitled to any refund thereof, such refund shall be made in accordance with the provisions of section 43.

(2) For the removal of doubts, it is hereby declared that no fresh notice of demand shall be necessary in any case where the amount of Government dues is not varied as a result of any order passed in appeal, revision or other proceeding under this Act.

(3) The provisions of this section shall apply and shall be deemed always to have applied, in relation to every notice of demand served by the Commissioner upon a dealer or any other person liable for any Government dues, whether such notice was or is served before or after the commencement of the Bombay Sales Tax (Amendment) Act, 1965.]

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

¹ [bst279] [bst1][40. Lump sum payment of tax.- (1)The Commissioner may, in such circumstances and subject to such conditions as may be prescribed permit any dealer to pay in lieu of the amount of tax payable by the said dealer under the provisions of this Act, in respect of any period, a lump sum determined in the prescribed manner by way of composition; and on payment of such lump sum by such date as may be prescribed for such purpose, the dealer shall be deemed to have been assessed under section 33 for that period.

(2) Where any such dealer contravenes any of the rules made under sub-section (1) and the Commissioner is of the opinion that such contravention has resulted into loss to revenue of an amount which is not less than the amount of the lump sum so payable, then the Commissioner may at any time within five years from the end of the year for which such lump sum amount were payable, after giving the dealer a reasonable opportunity of being heard, proceed to revoke the permission granted under sub-section (1) in so far as the permission relates to the said year and such revocation shall be effective from the first day of the year; and on such order of revocation being passed, it shall be deemed for all the purposes of this Act that the dealer has not been assessed as provided in sub-section (1) in respect of that said year and accordingly, the Commissioner may, notwithstanding anything to the contrary contained in sub-section (4A) of section 33, after giving the said dealer a reasonable opportunity of being heard, proceed to assess, levy and collect tax, penalty and interest, if any, from such dealer in respect of the said year.

(3) No dealer, who has been permitted to pay a lump sum shall, in respect of any sale made by him during the period covered by such permission issue or sign or authorise any person to sign a certificate as prescribed in sub-section (1) of section 12A or a certificate in Form 31 as prescribed under the rules and accordingly where any dealer so permitted issues any such certificate, it shall be invalid and shall be deemed to have been invalid on the date of such sale.

(4) If such dealer does not pay the lump sum amount on the prescribed date, then he shall be liable to pay, by way of simple interest, in addition to such amount a sum equal to two per cent, of such amount, for each month or part thereof after such date.]

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

¹ [bst280] [bst1][40A. Levy and collection of tax on lottery.- (1) Notwithstanding anything contained in any other provisions of this Act, the dealer, who is a first seller of lottery tickets in the State (hereinafter, in this section, referred to as "the lottery dealer"), shall be liable to pay tax on sale of lottery tickets as provided in the table hereunder :—

TABLE

Turnover of sale of lottery tickets per draw of a particular scheme	Quantum of tax
(1)	(2)
(a) Upto Rs. 2.5 lakh	60 per cent., of taxable turnover plus surcharge levied under section 15-lA or Rs. 5,000, whichever is higher;
(b) Above Rs. 2.5 lakh but up to Rs. 5 lakh	60 per cent., of taxable turnover plus surcharge levied under section 15-1A or Rs. 6,000, whichever is higher;
(c) Above Rs. 5 lakh but up to Rs. 10 lakh	60 per cent., of taxable turnover plus surcharge levied under section 15-1A or Rs. 8,000, whichever is higher;
(d) Above Rs. 10 lakh but up to Rs. 50 lakh	60 per cent., of taxable turnover plus surcharge levied under section 15-1A or Rs. 15,000, whichever is higher;
(e) Above Rs. 50 lakh but up to Rs. 1 Crore	60 per cent., of taxable turnover plus surcharge levied under section 15-1A or Rs. 25,000, whichever is higher;
(f) Above Rs. 1 Crore but up to Rs. 5 Crore	60 per cent., of taxable turnover plus surcharge levied under section 15-1A or Rs. 200,000, whichever is higher;
(g) Above Rs. 5 Crore	60 per cent., of taxable turnover plus surcharge levied under section 15-1A or Rs. 5,00,000, whichever is higher :

Provided that, where a lottery dealer has paid the tax under this sub-section, no tax shall be payable in respect of the subsequent sale of such lottery tickets by any other dealer or any person in the State.

Explanation.— For the purposes of this section,—

(a) "turnover of sale of lottery tickets" means the aggregate of the tickets sold by a lottery dealer of a draw under a particular scheme multiplied by the maximum retail price (M.R.P.) of the tickets;

(b) "taxable turnover" means the aggregate of the total number of tickets sold by a lottery dealer of a draw under a particular scheme multiplied by ²[bst281] [bst2][the selling price at which the lottery dealer has sold such tickets in the State], minus the amount of prizes actually paid in respect of the said tickets under such draw by the concerned State;

(c) "lottery" means the lottery as defined in clause (b) of section 2 of the Lotteries (Regulation) Act, 1998 (17 of 1998);

(d) "scheme" means a scheme or plan brought in the market with specific name under which combination of prizes are offered to the public purchasing a lottery ticket and details like the price of the ticket, the number of series, the prize structure, the date and time of draw, the size of the scheme, the method or procedure of drawing prizes being offered, the commission and bonus, if any, offered under such a scheme or plan, are specified;

(e) "first seller" means the dealer who sells the lottery tickets of Maharashtra State or any other lottery selling State or any other entity in the State of Maharashtra for the first time;

(f) "lottery officer" means the State Lottery Officer appointed by the Commissioner, by notification in the Official Gazette, issued under section 20 of this Act.

(2) (a) Notwithstanding anything contained in any other provisions of this Act, the lottery dealer shall pay provisionally in the State Treasury Office, not less than seven days before the date of the declaration of the result of each draw of a lottery under a scheme, the amount of tax payable under sub-section (1), worked out on the basis of the provisional turnover calculated by applying the formula given below and shall submit a copy of the chalan as a proof of the payment of provisiona1 tax in the prescribed form to the lottery officer alongwith a true copy of the agreement between the wholesale distributor from whom the lottery dealer has procured the lottery tickets of that draw and the concerned State Government, and a copy of the authority letter from the said distributor authorizing the lottery dealer to market the lotteries in the State of Maharashtra.

Formula :-
(I) In case of paper lottery,—

Total number of tickets of a particular draw under a scheme to be kept for sale or to be sold in the State.	x	Maximum Retail Price of a ticket.	=	Provisional Turnover of sales of tickets.
(II) In case of existing on-line lottery,—
Total number of tickets sold in the Previous week, incase of weekly schemes/fortnight, in case of fortnightly schemes/month, in case of monthly schemes, for a particular scheme in the State	x	Maximum Retail Price of a ticket.	=	Provisional Turnover of sales of tickets.
(III) In case of new on-line lottery,—
The projected sale of total number of tickets for that draw in a week, in case of weekly schemes/fortnight, in case of fortnightly schemes/month, in case of monthly schemes for a particular scheme in the State.	x	Maximum Retail Price of a ticket.	=	Projected Provisional Turnover of sales of tickets.

Provided that, the true copy of the agreement shall be required to be filed for a lottery scheme only once during the validity period of the said agreement:

Provided further that, if, at any time the agreement is terminated or revoked for any reason by the concerned Government, it shall be incumbent on the concerned dealer to intimate in writing to the lottery officer of such termination or revocation:

Provided also that, non-disclosure of such termination or revocation shall attract the operation of sub-section (4).

(b) After every draw, the lottery dealer shall adjust the provisional amount of tax, already paid as provided under clause (a), against the actual amount of tax payable as provided in sub-section (1), and after such adjustments pay the remaining amount of tax, if any, payable, in the State Treasury Office and then, submit to the lottery officer the actual return in the prescribed form, time and manner.

(c) The lottery dealer shall also furnish to the lottery officer, fortnightly, a statement, in the prescribed form, manner and time, and by the prescribed dates in respect of all the lottery tickets sold by such lottery dealer in the State of a particular draw under a particular scheme, for the concerned Government.

(d) On the basis of the returns, chalans and the statement filed as provided in clauses (b) and (c), the lottery officer shall assess the actual amount of tax payable by the lottery dealer and after such assessment, if any tax, in addition to the tax already paid under clause (b) becomes due to be paid by the lottery dealer for a particular draw under a particular scheme, the same shall forthwith be demanded in writing from such lottery dealer and on such demand, the said dealer shall pay the same within seven days from the date of receipt of the demand notice:

Provided that, any amount found to have been paid in excess of the tax payable by the lottery dealer shall be refunded to him by the lottery officer within one week from the date of the final assessment or shall be adjusted by the lottery officer against the provisional tax to be paid under clause (a) for the draws to be held subsequent to the date of filing of the return and the determination of the refund amount.

(3) Notwithstanding anything contained in any other provisions of this Act, appeal against the assessment order carried out by the lottery officer under clause (d) of sub-section (2) may be filed, within a period of fifteen days from the date of service of demand notice, from the lottery officer, to the appellate officer, as may be notified by the Government, and the second appeal against the order of the appellate officer, may be filed within a period of thirty days from the date of the order of the first appellate authority, to the Maharashtra Sales Tax Tribunal:

Provided that, the officer appointed as the first appellate officer by the Government shall not be below the rank of Deputy Director of State Lotteries:

Provided further that, the period of limitation for filing first and second appeal may be relaxed by the concerned appellate authority for sufficient reasons to be recorded in writing.

(4) If a lottery dealer fails to pay in advance, the provisional amount of tax as provided under sub-section (1) within the time specified in sub-section (2), for any draw under any scheme, the lottery officer shall, seize all the tickets of that draw in case of paper lottery and seize the terminal or, as the case may be, the server in the ease of on-line lottery/Internet Lottery and may also, after giving such dealer a reasonable opportunity of showing cause, impose upon such lottery dealer a penalty of rupees 25,000 or three times the sales tax amount payable by such dealer under such draw, whichever is higher:

Provided that, no such penalty shall be imposed on any dealer for failure to pay the advance provisional tax under sub-section (1) for any draw under any scheme, held within a period of seven days from the date of commencement of section 25 of the Maharashtra Tax Laws (Levy, Amendment and Validation) Act, 2004 (Mah. XIII of 2004) and any payment of tax for the draws held within the said period of seven days may be made by the lottery dealer, within seven days from the said date of commencement.

(5) (a) The dealer who is liable to pay tax under this section on sales of lottery tickets, shall not be liable for payment of sales tax and turnover tax under any other provisions of this Act.

(b) Notwithstanding anything contained in this Act, the said dealer shall not be entitled to claim deduction from the turnover of sales, to pay tax at a reduced rate or claim exemption from the full or part of the tax payable on the sales of lottery tickets on account of any declaration or certificate provided by or under this Act or under any entry of the Schedule to the notification issued under section 4l of the Act.

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

41. Exemptions.-¹ [bst282] [bst1][(1)Subject to such conditions as it may impose, the State Government may, if it is necessary so to do in the public interest, by notification in the Official Gazette, exempt any specified class of sales or purchases from payment of the whole or any part of any tax payable under the provisions of this Act ² [bst283] [bst2]["any notification issued under this section may be issued so as to be retrospective to any date not earlier than the 1st January 1960."]

Comments : The Government is now empowered to issue the notification u/s 41 with retrospective effect.

³ [bst284] [bst3][(2)Where any dealer or person has purchased any goods under a declaration given by him under any of the notifications issued under this section and--

(a) any of the conditions subject to which such exemption was granted, or

(b) any of the recitals or the conditions of the declaration, are not complied with, for any reason whatsoever, ⁴ [bst285] [bst4][or, in any other case, where such dealer or person was not entitled to issue ⁵ [bst286] [bst5][such declaration, then without prejudice to the other provisions of this Act] such dealer or person shall be liable to pay purchase tax on the purchase price of the goods so purchased, and the purchase tax shall be levied at the rate set out against each of such goods in column 4 of Schedule B and C, notwithstanding that such dealer or person was not liable to pay tax under section 3, and accordingly the dealer or the person who has become liable to pay purchase tax under this sub-section shall file a return in the prescribed form to the prescribed authority within a prescribed time and shall include the purchase price of such turnover in his return, and pay the tax in the prescribed manner. The tax due from any such dealer or person shall be assessed or reassessed under section 33 or 35, as the case may be :

Provided that, the amount of tax (if any) paid by the dealer or such person to a Registered dealer on such purchases, on which he has become liable to pay purchase tax under this sub-section, shall be set-off against the purchase tax so liable :]

⁶ [bst287] [bst6][Provided further that, if the dealer or the person liable to pay purchase tax as aforesaid has been assessed to purchase tax and if he has paid such tax, then the dealer from whom such goods are purchased shall be exempted from payment of tax on sales of such goods to the extent such purchase tax has been paid.]

⁷ [bst288] [bst7][(3)If the Commissioner has reason to believe that any person is liable to pay tax under sub-section (2), the Commissioner shall, after giving him a reasonable opportunity of being heard, assess the amount of tax so due.]

Departmental Views on Amendment

By this section, the provisions of Section 41 of the B.S.T. Act were amended.. Where a person, not being entitled to issue a declaration, issues such declaration while effecting purchases, then such person is liable to pay purchase tax u/s 41 (2). A clarified amendment was made to the effect that this liability of the purchasing person to pay purchase tax is without prejudice to the other provisions of the Act. In other words, the liability of the purchasing person to pay purchase tax in such circumstances is without prejudice to the seller's liability to pay sales tax on the very transaction on the ground of its being not supported by valid declaration.

This amendment will continue with the modification that, in such circumstances, to the extent the purchasing person has paid purchase tax the seller would be exempted from payment of sales tax on the very transaction. (Refer Circular No. 10T of 1994 & 8 of 1992)

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

¹ [bst289] [bst1][41-A1. Refund of tax.- The State Government may, if satisfied that it is necessary in the public interest to grant refund of any tax levied and collected from any class or classes of dealers or persons or, as the case may be, charged on the purchases or sales made by any class or classes of dealers or persons, by notification in the Official Gazette, and subject to such terms and conditions as may be specified in the notification, grant refund of any such tax, or part of such tax for any such period and to such class of dealers or persons, as may be specified in such notification :

NOTES :- REFUND OF TAX: (Section 41-A-1): By this clause, which seeks to insert new Section 41-A-1 in the Bombay Sales Tax Act, 1959, power is taken to the State Government to grant refund in the public interest, by notification in the official Gazette and subject to such terms and conditions as may be specified in the notification, in respect of any tax levied and collected from any class or classes of dealer or persons as also to prescribe the forms of application to be made for getting the refund and the power to issue such notification with retrospective effect so powers that, the effective date is not earlier than the appointed date.(Also Refer Tr. Cir. No. 11T of 2004, dated 8th July, 2004).

Departmental View on Amendments

By this clause, which seeks to insert new section 41-A1 in the Bombay Sales Tax Act, 1959, power is taken to the State Government to grant refund in the public interest, by notification in the Official Gazette and subject to such terms and conditions as may be specified in the notification, in respect of any tax levied and collected from any class or classes of dealers or persons as also to prescribe the form of application to be made for getting the refund and the power to issue such notification with retrospective effect so however that, the effective date is not earlier than the appointed date.

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

¹ [bst290] [bst1][41A.Edible Oil Unit not to be eligible for exemption from payment of tax.-Notwithstanding anything contained in this Act or in any judgment, decree or order of any Court or Tribunal to the contrary, on and after the date of commencement of the Bombay Sales Tax (Amendment) Act, 1985 (hereinafter in this section referred to as "the commencement date"), the Eligibility Certificate granted to any Registered dealer of an Edible Oil Unit in accordance with the provisions of any Package Scheme of Incentives shall ceased to have any effect in relation to the exemption from payment of tax under this Act or under the Central Sales Tax Act, 1956, and the Certificate of Entitlement issued in favour of such Registered dealer by the Commissioner under entry 136 of the Schedule to the notification issued under section 41 shall stand automatically cancelled on the commencement date and such Registered dealer shall not be entitled to claim any further benefit of exemption from payment of such tax under the Eligibility Certificate or the Certificate of Entitlement on and after the commencement date, and he shall surrender the Certificate of Entitlement together with all the unused Form BC which have been attested by the Sales Tax authorities to the Commissioner forthwith and in any case on or before the 31st day of August 1985, unless he has already surrendered the same earlier]:

² [bst291] [bst2][Provided that nothing in this section shall apply to the eligible units covered under the 1993 Package Scheme of Incentives.]

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

¹ [bst292] [bst1][41B. Calculation of cumulative quantum of benefits under Package Scheme of Incentives.- (1) In order to determine whether the cumulative quantum of benefits received by any dealer to whom a Certificate of Entitlement has been granted by the Commissioner under entry 136 ² [bst293] [bst2]["or,³[bst294] [bst3][entry E-3, E-11, E-12 or, as the case may be, E-13] of the schedule to the notification issued under section 41, has at any time after the 1st January 1980 exceeded the relevant monetary ceiling under any Package Scheme of Incentives for any period whether before or after the date of commencement of the Maharashtra Tax Laws (Levy and Amendment) Act, 1994 (hereinafter in this section, referred to as "the commencement date"), the Commissioner shall calculate the cumulative quantum of benefits in the manner prescribed in respect of all the relevant periods and the Package Scheme of Incentives.

(2) If it is found that the cumulative quantum of benefits so calculated in respect of any eligible unit has exceeded the relevant monetary ceiling where such ceiling is provided in the Package Scheme of Incentives, then the Commissioner shall, require the dealer by order in writing to pay the tax, interest or penalty in respect of each relevant period and shall for the purpose of recovery of such tax, interest or penalty, serve on the dealer a notice :

Provided that, no order under this section shall be passed without giving the dealer a reasonable opportunity of being heard.

(3) The notice so issued, shall be deemed to be a notice issued under sub-section (4) of section 38 and the relevant provisions of this Act shall apply to such notice as they apply to a notice issued under sub-section (4) of section 38.]

NOTES :- CUMULATIVE QUANTUM BENEFIT (CQB) & CANCELLATION OF ENTITLEMENT CERTIFICATE: (Section 41B ) : Consequential amendments are made to add entries E 11, E 12, E 13 regarding wind Power Generation, industrial Units set up in Development region, Tourism Projects respectively.(Also Refer Tr. Cir. No. 11T of 2004, dated 8th July, 2004).

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

¹ [bst295] [bst1][41BA.Certificate of Entitlement :-Where an Eligibility Certificate has been recommended to an Eligible Unit by the implementing agency under any of the Package Schemes Incentives declared by the Government such Eligible Unit may apply for grant of Certificate of Entitlement to the Commissioner.

Subject to provisions of section 41BB and any rules that may be made in this behalf, the Commissioner shall, if the Eligible Unit satisfies such further requirements as may be prescribed or notified, issue to the unit a Certificate of Entitlement in such form, and subject to such conditions as may be prescribed.

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

¹ [bst296] [bst1][41BB.Proportionate incentives to an Eligible Unit in certain contingencies:-(1) Notwithstanding anything to the contrary contained in any Package Scheme of Incentives, any Eligible Unit, to whom the Eligibility Certificate has been granted, shall be eligible to draw the benefits in the current year or in any year, whether preceding or succeeding the date of commencement of section 12 of the Maharashtra Tax Laws (Levy and Amendment) Act, 2001, only on that part of its turnover of sales or purchases as may be arrived at by applying the ratio as may be prescribed by the State Government to the total turnover of sales and purchases of the said unit in that year and different ratios may be prescribed for different classes of dealers and different schemes.

(2)The benefits availed of by an Eligible Unit in contravention of sub-section (1), if any, shall be and shall be deemed to have been withdrawn and such unit shall be liable to pay tax in respect of the turnover of sales and purchases in excess of the turnover arrived at under sub-section (1) and accordingly any benefit which is withdrawn shall be recovered as arrears of tax as provided in sub-section (3).

(3)For recovery of arrears of tax as provided in sub-section (2), the Commissioner shall require the unit, by order in writing, to pay the tax, interest and penalty on such turnover on which the benefits are not available and serve on the dealer notice of demand accordingly:

Provided that, no order under this section shall be passed without giving the dealer a reasonable opportunity of being heard.

Explanation.-For the purposes of the provisions contained in sections 41BA and 41BB, the terms "Existing Unit, Eligible Unit, implementing agency, Eligibility Certificate and Certificate of Entitlement" shall have the same meaning as provided in the relevant Package Scheme of Incentives.]

COMMENTS : This new section is introduced to regulate the incentives for the expansion of the existing units. The Commissioner of Sales Tax had issued the guidelines for calculating the quantum of cumulative benefits for expansion on ratio basis, vide Circular No. T3 of 93 dt. 30-3-93 and No. T2 of 98 dt. 17-1-98. Now the rules will prescribe the ratios for the benefits under Package Scheme of Incentives. If benefits are given in excess, they will be withdrawn and demand notice for recovery of excess benefits along with interest and penalty ,can be issued by the Commissioner, after hearing the dealer. [[Refer circular No.3T of 2001 dt. 16-4-2001]

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

¹ [bst297] [bst1][41C. Cancellation of Certificate of Entitlement .- (1) Notwithstanding anything contained in this Act, or in any judgement, decree or order of any Court or Tribunal to the contrary, the Certificate of Entitlement issued in favour of an Eligible Unit by the Commissioner in respect of any Package Scheme of Incentives--

(a) shall be deemed to have been automatically cancelled on the date on which-

² [bst298] [bst2][(i) the cumulative quantum of benefits received by such unit :-

(A) being a Small Scale industrial unit governed by the 1979 Package Scheme of Incentives ³ [bst299] [bst3][as calculated from the 1st October 1995 exceeds] the approved gross fixed capital investment of such unit at the time of grant of the Eligibility Certificate, or

(B) not being an Unit referred to in entry (A) above, exceeds at any time, whether before or after, the date of commencement of Maharashtra Tax Laws (Levy, Amendment and Validation) Act, 1995, the monetary ceiling as provided in the relevant Package Scheme of Incentives.

(ii) the period for which a Certificate of Entitlement was granted to an Eligible Unit expires; or

(iii) the Certificate of Registration granted to an Eligible Unit has been cancelled;

(b) shall be cancelled by the Commissioner, after giving the Eligible unit an opportunity of being heard, if it is noticed that the grant of Certificate of Entitlement is inconsistent with any of the provisions of this Act, rules and notifications framed or issued under the Act or any of the relevant Package Scheme of Incentives.

(2) On and from the date of such cancellation, such unit shall cease to be eligible to claim any exemption from payment of tax under entry 136 ⁴ [bst300] [bst4][entry E-3, E-11, E-12 or, as the case may be, E-13] as the case may be, under entry E-3"]of the Schedule to the notification issued under section 41 and such unit shall surrender to the Commissioner, the Certificate of Entitlement, together with all declarations in Form 'BC', within fifteen days from the date of such cancellation.]

NOTES :- CUMULATIVE QUANTUM BENEFIT (CQB) & CANCELLATION OF ENTITLEMENT CERTIFICATE: (Section 41B ) : Consequential amendments are made to add entries E 11, E 12, E 13 regarding wind Power Generation, industrial Units set up in Development region, Tourism Projects respectively (Also Refer Tr. Cir. No. 11T of 2004, dated 8th July, 2004).

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

¹ [bst301] [bst1][41D. Annual ceiling on benefits to be availed of under Package Scheme of Incentives.- (1) Notwithstanding anything contrary contained in any of the Package Scheme of Incentives, no eligible Unit to whom the Eligibility Certificate has been granted shall be eligible to draw the benefits in any year, whether preceding or succeeding the date of commencement of the Maharashtra Tax Laws (Levy and Amendment) Act, 1995, in respect of the production in excess of the annual production capacity of that unit as may be prescribed by the State Government, having regard to licensing provisions of the Industries (Development and Regulation) Act, 1951.

(2) The benefits availed of by any eligible unit in contravention of sub-section (1) shall be and shall be deemed to have been withdrawn and such Unit shall be liable to pay the tax in respect of sales or purchases, in so far as they relate to such excess production referred to in sub-section (1)]

The Bombay Sales Tax Act, 1959

CHAPTER V

Returns, Assessment, Payment, Penalty, Recovery and Refund of Tax

42.Draw-back, set-off, refund, etc.-¹ [bst302] [bst1][(1)The State Government may by rules provide, that--

(a) in such circumstances and subject to such conditions as may be specified in the rules a draw-back, set-off or refund of the whole or any part of the tax.-

(i) paid or levied or leviable under any earlier law in respect of any earlier sales or purchase of goods which are held in stock by a dealer at the commencement of this Act, be granted to such dealer, or

(ii) paid or levied or leviable in respect of any earlier sale or purchase of goods under this Act or any earlier law, be granted to the ² [bst303] [bst2][Purchasing dealer, or]

³ [bst304] [bst3][(iii) paid or levied or leviable under the Maharashtra Tax on Entry of Motor Vehicles into Local Areas Act, 1987, be granted to a dealer whose principal business is of buying or selling motor vehicles.]

⁴[bst305] [bst4][(iv) paid or levied or leviable under the Maharashtra Tax on Entry of Goods into Local Areas Act, 2003 (Mah. IV of 2003) be granted to a dealer,]

NOTES :- DRAWBACK, SET-OFF, REFUND ETC.: Consequential amendment is made to eligible the dealer to get drawback, set-off, & refund etc. in case of Entry Tax.

Clause (iv) to sub-section (1) of section 42 is added with effect from 01-10-2002
"Paid or levied or leviable under the Maharashtra Tax on Entry of Goods into Local Areas Act, 2003 be granted to a dealer." (Also Refer Tr. Cir. No. 11T of 2004, dated 8th July, 2004).

(b) for the purpose of the levy of tax under any of the provisions of this Act the sale price or purchase price shall in the case of any class of sales or purchases be reduced to such extent, and in such manner, as may be specified, in the rules.

⁵[bst306] [bst5][(2)Where no tax has been charged separately, the rate of tax applicable for the purposes of calculating the amounts of draw-back, set-off or refund in respect of any earlier sale or purchase of goods, or for the purposes of reduction of sale or purchase price for levy of tax, or for the purposes of calculating the amount of reimbursement under section 44, shall be the rate set-out against the goods in the relevant Schedule :

Provided that, where, under any notification issued under this Act, any of the sales or purchases of goods has been exempted from the payment of whole of sales tax (or purchase tax), the rate of tax applicable shall be nil; and where it is exempted from payment of any part of sales tax (or purchase tax), the rate of tax applicable shall be the rate at which the payment of tax is to be made by virtue of such exemption.]

⁶[bst307] [bst6][(3)Notwithstanding anything contained in this Act or the Rules made thereunder, the amount of draw-back, set-off or as the case may be, refund shall not exceed the amount of tax received in respect of any sale or purchase of same goods, into the Government Treasury, except where purchase tax is payable by the claimant dealer on the purchase of same goods effected by him:

Provided that, where tax levied or leviable under the Act, is deferred or deferrable under any Package Scheme of Incentives implemented by the State Government, then it shall be deemed to have been received in the Government Treasury for the purpose of this sub-section.".

[bst1]

* For Statement of Objects and Reasons, See Bombay Government Gazette, 1959, Part V, pps. 469-74; for Report of the Select Committee, see Bombay Government Gazette, 1969, Part V, pps. 661-69.

[bst2]

1. These words were substituted for the words "State of Bombay" by the Maharashtra Adaptation Act.

[bst3]

2. Sub-Sections (3) and (4) were deleted by Mah. 21 of 1962, but such deletion shall not affect anything done thereunder including the operation of any notification issued thereunder which has already brought the other provisions of the Act into force and accordingly, those provisions as amended from time to time shall continue to be in force.

1. Substituted for the word and figures "March 1959" by Mah. Act No. 32 of 1981 w.e.f. 1-7-1981.

[bst9]

2. Substituted for the word and figures "April 1959", by Mah. 32 of 1981.

[bst10]

3. Substituted for the words "appointed day", by Mah. 32 of 1981 w.e.f. 1-7-1981.

[bst11]

4. This portion was inserted, by Mah. 32 of 1981 w.e.f. 1-7-81.

[bst12]

3. Substituted for the words "appointed day", by Mah. 32 of 1981 w.e.f. 1-7-1981.

[bst13]2. Substituted for the word and figures "April 1959", by Mah. 32 of 1981.

[bst14]

5. For the words 'first exceeds' the words 'does not exceed' substituted by Mah. 9 of 1989, dated 31-3-89 w.e.f. 1-4-89.

[bst15]

6. These word were substituted for the words "the limit of his turnover" by Bom. Act No. 69 of 1959 s. 2(2).

[bst16]

7. These words were substituted for the words "ennding on the date on which" by Mah. Act No. 9 of 1989 w.e.f. 1-4-1989.

[bst17]

8. Substituted for the words "first exceeds" by Mah. Tax Laws (Levy, Amendment and Repeal) Act 1989, 9 of 1989 dated 31-3-1989 w.e.f. 1-4-1989.

[bst18]1.Substituted for the letters and figures "Rs. 30,000" by Mah. Act No. 28 of 1986 w.e.f. 13.7.1986 and again substituted for the letters and figures “Rs. 50,000” w.e.f. 1-5-1998 by the Maharashtra Tax Laws (Levy and Amendment) Act No. XXI of 1998 dated 11-8-1998. s.10(a). (Refer T. Cr. No. 7-T of 1998 dated 5-5-1998)

[bst19]2. Substituted for the letters and figures "Rs. 2,500" by Mah. Act No. 32 of 1981 w.e.f. 1-7-81 and again substituted for the letters and figures “Rs. 5,000” w.e.f. 1-5-1998 by the Maharashtra Tax Laws (Levy and Amendment) Act No. XXI of 1998 dated 11-8-1998. s.10(c). (Refer T. Cr. No. 7-T of 1998 dated 5-5-1998).

[bst20]3. These words, letters and figures were substituted for the words, letters and figures "from outside the State during the year is not less than ^*

1. These words figures were substituted for the words and figures "sections 7, 8, 11 and 12" by Mah. Tax Laws (Levy and Amendment) Act 1988 Act No. 9 of 1988 w.e.f. 22-4-1988.

[bst25]

1. These words were substituted for the words "amended accordingly" by Mah. Act No. 29 of 1965.

[bst26]

1. Section 7 was substituted by Mah. Act No. 32 of 1981.

[bst27]

2. These words were substituted for the words "single point levy" by the Mah. Act No. 20 of 2002, dated 4th May, 2002 s.13(c) w.e.f. 1st October 2002 by Notification No. STA.-11.02/CR-123/Taxation-1, dated 8th August 2002 (Refer Trade Circular No. 24T of 2002, dated 7th August 2002)

[bst28]

3. These words were inserted by the Mah. Act No. 20 of 2002, dated 4th May, 2002 s.13(a)(i)(ii)(iii) w.e.f. 1st October 2002 by Notification No. STA.-11.02/CR-123/Taxation-1, dated 8th August 2002 (Refer Trade Circular No. 24T of 2002, dated 7th August 2002)then again these words were deleted and shall be deemed to have been deleted w.e.f. 1st May, 2003 for the words "other than those covered by entry 6 of Schedule B" by Mah. Act No. 13 of 2004, dated 29th June 2004. s.12. (Refer T. Cr. No. 11T of 2004, dt. 8-7-2004)

[bst29]

[bst30]

[bst31]

4. "Sub Clause iv" was Substituted by Mah. 29 of 1994 w.e.f. 1-5-1994

[bst32]

5. "Sub-clause v" was added and shall be deemed to have been added w.e.f. 15-5-1997 by the Maharashtra Tax Laws (Levy and Amendment) Act No. XXI of 1998 dated 11-8-1998. s.11. (Refer T. Cr. No. 7-T of 1998 dated 5-5-1998).

[bst33]

6. Sub-section (2) was deemed to have been substituted w.e.f. 1-7-1981 by Mah. Act No. 9 of 1988 and again the Sub-section (2) was deleted by the Mah. Act No. 20 of 2002 , dated 4th May, 2002 s.(b) w.e.f. 1st October 2002 by Notification No. STA.-11.02/CR-123/Taxation-1, dated 8th August 2002 (Refer Trade Circular No. 24T of 2002, dated 7th August 2002). Prior to deleted the sub-section (2) read as under :-
"(2)In order to ensure that after the date of coming into force of section 15 of the Central Sales Tax Act, 1956, tax shall not be levied on the sales or purchases of declared goods at more than one stage, it is hereby provided that if under this Act or any earlier law, *[any tax is levied] on the sale or purchase of such goods, then no further tax shall be levied under this Act on any subsequent sale or purchase thereof; and accordingly, for the purpose of arriving at the taxable turnover of sales, or as the case may be of purchases, of a dealer, they shall be deducted from his total turnover of sales, or as the case may be, of purchases, such sales or purchases of such Declared goods on which **[tax has been levied] at any earlier stage."

*. These words were substituted for the words "any tax is liable" by Maharashtra Act No. 11 of 1992 in force from 1-5-1992 to 8-9-1992 and again w.e.f. 1-4-94 by Maharashtra Act No. 18 of 1994.

**. These words were substituted for the words "tax has become liable" by Maharashtra Act No. 11 of 1992 in force from 1-5-1992 to 8-9-1992 and again w.e.f. 1-4-1994 by Maharashtra Act No. 18 of 1994.

[bst34]

1. 'Section 8' was substituted by Maharashtra Act No. 32 of 1981 w.e.f. 1-7-1981

[bst35]

2. These words were substituted for the words "Single point levy" by Mah. tax laws (Levy & Amendment) Act, 1995 (16 of 1995) dated 18-8-1995 w.ef. 1-10-1995. Now again substituted for the words "Levy of value added" by Mah. Act No. 25 of 1999 dt. 23.4.1999 w.e.f. 31.3.1999 after 5 p.m. s8(b) (Refer T.C. No. 8-T of 1999 dt. 1.4.1999).

[bst36]

3. This section was renumbered as Sub-section (1) by Maharashtra Act No. 22 0f 1997

[bst37]

4. These words were inserted by Mah.Act No.25 of 1999 dated 23.4.1999 w.e.f. 31.3.1999 after 5 p.m.s3(b) (Refer T.C. No. 8-T of 1999 dated 1.4.1999).

[bst38]

5. These word & figures were substituted for the word & figures "entry 22" by the Mah. Act No. 22 of 2001, dated 26th April 2001. s. 8 w.e.f. 1.5.2001 (Refer T.C. No. 3-T of 2001, dated 16.4.2001).

[bst39]

6. This proviso was inserted by Mah. Tax Laws (Levy & Amendments) Act, 1988, Act No. 9 of 1988 w.e.f. 22.4.1988

[bst40]

7. The Proviso was originally added by Mah. Act No. IX of 1997 dated 6-1-1997. s.29. and deleted by Mah. Act No. 22 of 1997 dt. 24-4-1997 s.2(1), and the Amendment will be come in to force w.e.f. 1-7-1997. Prior to its deleted the second proviso stood as under :- "Provided further that, if the sale price in respect of such turnover or, as the case may be, part of the turnover is paid or payable through a credit card, then- (a)no deduction as provided under clauses (i), (ii), (iii) or (iv) shall be made from the turnover of sales; and

(b)the rate of sales tax for the purpose of levy shall be increased by one percent.

Explanation.-For the purposes of this section a credit card means a card, which entitles the purchaser, on presentation, to purchase goods and services on credit, on the understanding that the issuer of the card will reimburse the said dealer, and includes a charge card and a debit card."

[bst41]

8. Clause (iv) was substituted by Mah. Act No. 29 of 1994 w.e.f. 1-5-1994.

[bst42]

9. Clause (v) was added and shall be deemed to have been added w.e.f. 15-5-1997 by the Maharashtra Tax Laws (Levy and Amendment) Act No. XXI of 1998 dated 11-8-1998. s.12(a). (Refer T. Cr. No. 7-T of 1998 dated 5-5-1998).

[bst43]

10. The sub-clause (2) was added by Mah. Act No. 22 of 1997 w.e.f. 1-7-1997 s.2(2) vide notification No.STA.1196/CR-113/Taxation-1, dated 14-5-1997 and now deleted w.e.f. 1-5-1998 by the Maharashtra Tax Laws (Levy and Amendment) Act No. XXI of 1998 dated 11-8-1998. s.12(b). (Refer T. Cr. No. 7-T of 1998 dated 5-5-1998) Prior to its deleted the sub-clause (2) stood as under :-

"(2)Notwithstanding anything contained in sub-section (1), if the sale price in respect of any sale is paid or payable by a credit card then, there shall be levied a Sales Tax at the rate of one per cent in addition to the tax, if any, levied under sub-section (1), on the aggregate of the amounts of such sale prices.

Explanation.-For the purposes of this section, "a credit card" means a card, which entitles the purchase, on presentation, to purchase goods or services on credit, on the understanding that the issuer of the card will reimburse the said dealer, and includes a charge card and a debit card."

[bst44]

11. Explanation was added and shall be deemed always have been added w.e.f. 1.7.1981 by Mah. Act No. 17 of 1999 dated 30-3-1999 s4.

[bst45]

1. Section 8A was substituted by Mah. Act No. 9 of 1988 w.e.f. 22-4-1988.

[bst46]

2. Clause 2 sub clause (a) was substituted by Maharashtra Act No. 29 of 1994 w.e.f. 1.5.1994

[bst47]

3. Sub-section (3) was added by The Maharashtra Tax Laws (Levy, Amendment and Validation) Act, 1997. (Act No. 30 of 1997). w.e.f. 1.7.1997 vide Notification No.BUD-3197/CR-5/Taxation-1, dated 14-5-1997. s.20 and now deleted w.e.f. 1-5-1998 by the Maharashtra Tax Laws (Levy and Amendment) Act No. XXI of 1998 dated 11-8-1998. s.13. (Refer T. Cr. No. 7-T of 1998 dated 5-5-1998) Prior to deleted its stood as under :-

(3)Notwithstanding anything contained in sub-section (1) or sub-section (2), if the sale price in respect of any sale is paid or payable by a credit card then, there shall be levied a sales tax at the rate of one per cent. in addition to the tax, if any, levied under sub-section (2) on the aggregate of the amounts of such sale prices.

Explanation.-For the purpose of this section, "a credit card" shall have the same meaning as assigned to it in the Explanation to section 8.".]

[bst48]

1. Section 8B was inserted by Maharashtra Act No. 9 of 1988 w.e.f. 22-4-1988.

[bst49]

1. 'Section 12B' was inserted by Maharashtra Act No. 29 of 1965.

[bst50]

2. These words and figures were substituted by Maharashtra Act No. 11 of 1991 w.e.f.1-4-91.

[bst51]

3. These words were inserted by Maharashtra Act No. 11 of 1992 in force from 1-5-1992.

[bst52]

1. Section 13 substituted by Mah. Act No. 9 of 1989.

[bst53]

2. These words "from unregistered dealers" were deleted by Mah. Ordinance No. XI of 1996 w.e.f. 1-4-1989. (Refer T.Cr. No. 18-T of 1996)

[bst54]

3. These words deemed to have been substituted w.e.f. from 1-4-1989 for the word "Registered dealer"by Mah. Act No. 19 of 1996. (Refer T.Cr. No. 18-T of 1996).

[bst55]

4. These words deemed to have been substituted w.e.f. from 1-4-1989 for the word "Registered dealer"by Mah. Act No. 19 of 1996.

[bst56]

1. Section 13A was deleted by Mah. Act No. 29 of 1994 w.e.f. 1-5-1994 and again Section 13A was inserted by The Maharashtra Tax Laws (Levy, Amendment and Validation) Act, 1997. (Act No. 30 of 1997) w.e.f. 15.5.1997. s.23.

[bst57]

1. 'Section 13 B' was inserted by Mah. Act. No. 16 of 1982 w.e.f. 1.5.1982

[bst58]

2. The proviso was deleted by Mah. Tax Laws (Levy and Amendment) Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995.

[bst59]

3. These figures were substituted for the figure "13 or 13A" by the Mah. Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995.

[bst60]

1. 'Section 14' was substituted by Mah. Act No. 32 of 1981 w.e.f. 1.7.1981

[bst61]

2. The first Proviso was deleted by Mah. Tax Law (Levy and Amendment) Act 1995 (No. 16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995 and again The first proviso was inserted by The Maharashtra Tax Laws (Levy, Amendment and Validation) Act, 1997 (Act No. 30 of 1997) w.e.f. 15.5.1997. s.25.

[bst62]

3. These words, figures and letter were inserted and shall be deemed to have been inserted w.e.f. 15-5-1997 by the Mah. Tax Laws (Levy and Amendment) Act, 2000 (Mah. Act No. 28 of 2000). s.5. (Refer T.Cr. No. 11-T of 2000, dated 29-4-2000). then again these words, figures and letter were substituted and shall be deemed to have been substituted w.e.f. 1st October 1995 for the words, figures and letter "or, as the case may be, the purchase tax paid or payable under section 13A" by Mah. Act No. 13 of 2004, dated 29th June 2004, s.15. (Refer T. Cr. No. 11T of 2004, dt. 8-7-2004)

[bst63]

4. These words were deleted for the words "or as the case may be, the purchase tax levied or leviable under section 13A" by Mah. Act No. 29 of 1994 w.e.f. 1.5.1994.

[bst64]

5. Sub-section (1A) was substituted by Mah. Act No. 18 of 1994 Sub-section (1A) was inserted by Mah. Act No. 11 of 1992 w.e.f. 1.5.1992 ti 8.9.1992 as under--

"(IA) Where any person or dealer not entitled to issue any declaration prescribed under the provisions of sections 8A, 11 or 12, purchases any taxable goods by issuing such declaration, then without prejudice to the other provisions of this Act such person or dealer shall be liable to pay purchase tax on the purchase price of such goods and the purchase tax shall be levied at the rate set out against each of such goods in column 4 of Schedules B & C; and accordingly he shall include the purchase price in his turnover of purchases in his return under section 32 which he is to furnish next thereafter."

[bst65]

1. Clause (c) was substituted by Maharashtra 29 of 1994 w.e.f. 1.5.1994.

[bst66]

2. Proviso was substituted by Mah. Act No. 29 of 1994 w.e.f. 1-5-1994.

[bst67]

1. This portion was substituted for the portion beginning with the words "as the case may be includes" and ending with the words" no purchase tax shall be levied under this section" by Mah. Act No. 29 of 1965.

[bst68]

2. Substituted for the portion beginning with the words "under-section" and ending with the words "Registered dealer" by Maharashtra Act No. 24 of 1990 w.e.f. 1-9-1990.

[bst69]

3. Clause (b) was substituted by Maharashtra Act No, 24 of 1990 w.e.f. 1-9-1990.

[bst70]5. These words were inserted by Mah. Act No. 13 of 2004, dated 29th June 2004 w.e.f. 1st July 2004. s.16. (Refer T. Cr. No. 11T of 2004, dt. 8-7-2004)

[bst71]

4. Substituted for the word and figures "section 13" by Maharashtra Act No. 16 of 1963.

[bst72]

1.. Section 15-IA was inserted by Mah. Act No. 25 of 1999 dated 23.4.1999 w.e.f. 31.3.1999 after 5 p.m. s7 (Refer T.C. No. 8-T of 1999 dated 1.4.1999) and again Section "15-1A" shall be deemed to have been so amended w.e.f. 1.4.1999 by Mah. Act No. 51 of 2000 and now again this Section modify by the Mah. Tax Laws (Levy, Amendment and Validation) Act, 2004 deemed to have been inserted commencing on the 31st March 1999 and ending on the 31st March 2001. After modification the Section "15-1A" read as under :-

"15-1A. Levy of surcharge:– (1) Where the aggregate of taxes payable by a dealer has exceeded rupees one lakh rupees in any year, #[commencing from the 1st April 1999] the tax payable before adjustment of any set-off, draw back or refund] on sales and purchases made by him at the rates of sales tax or purchase tax, as the case may be, shall be increased by the levy of surcharge at the rate of ten per cent of the tax so payable. Such surcharge shall be paid by the dealer in addition to the tax levied and payable by him under the other provisions of this Act :

Provided that, in calculating the surcharge payable by the dealer, the tax payable under the other pro-visions of this Act in respect of sales or purchases of declared goods shall not be taken into consideration.

(2) The surcharge shall be paid by the dealer before furnishing the return for the period in which the aggregate of the taxes payable by the dealer as computed from the commencement of the year, first exceeds rupees one lakh. The tax so payable shall be for the period from the commencement of the year, to the end of the period covered by such return and the dealer shall continue to be liable to pay the surcharge for that year for all the subsequent periods till the end of that year.

Explanation :– For the purpose of this section "the aggregate of taxes payable" means the aggregate of the followings :–

(a) in the case of sales or purchases of goods exempted from the payment of any tax under section 41, the [sales tax and purchase tax paid] or payable;

(b) in any other case, the sales tax and purchase tax levied or leviable, without adjustment of any draw-back, set-off, or as the case may be, refund granted in accordance with the provisions of section 42 or the rules; and

and now again ection 15-1A was substituted and shall be deemed to have been substituted w.e.f. 1st April 2001 by the Mah. Act No. 22 of 2001, dated 26th April 2001. s.10. (Refer T.C. No. 3-T of 2001, dated 16.4.2001). Prior to substitution the Section "15-1A" read as under :-

"15-1A. Levy of surcharge:– (1) Where the aggregate of taxes payable by a dealer has exceeded rupees one lakh in any year, the *[tax payable before adjustment of any set-off, draw back or refund] on sales and purchases made by him at the rates of sales tax or purchase tax, as the case may be, shall be increased by the levy of surcharge at the rate of ten per cent of the tax **[so payable]. Such surcharge shall be paid by the dealer in addition to the tax levied and payable by him under the other provisions of this Act :

Explanation :– For the purpose of this section "the aggregate of taxes payable" means the aggregate of the followings :–

(a) in the case of sales or purchases of goods exempted from the payment of any tax under section 41, the ***[sales tax and purchase tax paid] or payable;

*. These words were substituted for the words "tax levied" by the Mah. Tax Laws (Levy and Amendment) Act, 2000 (Mah. Act No. 28 of 2000) w.e.f. 1.5.2000. s.6(1)(a). (Refer T.Cr. No. 11-T of 2000, dated 29-4-2000).

**. These words were substituted for the words "so levied" by the Mah. Tax Laws (Levy and Amendment) Act, 2000 (Mah. Act No. 28 of 2000) w.e.f. 1.5.2000. s.6(1)(b).

*** These words were substituted for the words "tax paid" by the Mah. Tax Laws (Levy and Amendment) Act, 2000 (Mah. Act No. 28 of 2000) w.e.f. 1.5.2000. s.6(2). (Refer T.Cr. No. 11-T of 2000, dated 29-4-2000).

# These words, figures and letters were inserted by the by Mah. Act No. 13 of 2004, dated 29th June 2004. (Refer T. Cr. No. 11T of 2004, dt. 8-7-2004)

[bst73]

1. Section 15A was inserted by Maharashtra Act No. 21 of 1962.

[bst74]

2. These words were substituted for the words ["if any"] as is set out in the relevant Schedule against such goods packed" by Maharashtra Tax Laws (Levy & Amendment) Act, 1995 (16 of 1995).

[bst75]

1. 'Section 15A-I' was substituted by Mah. Act No. 7 of 1983 w.e.f. 1-12-1982 and was deleted by Mah. Act No. 16 of 1995 Dated 18-8-1995 w.e.f. 1-10-1995.

[bst76]

2. Section 15A-1 was deleted w.e.f. by Maharashtra Tax Law (Levy and Amendment) Act No. 16 of 1995 Dated 18-8-1995 w.e.f. 1-10-1995.

These "sub-section (3) & (4)" were added and shall be deemed to have been added w.e.f. 22nd April, 1988 by Mah. Act No. 13 of 2004, dated 29th June 2004. s.18. (Refer T. Cr. No. 11T of 2004, dt. 8-7-2004)

[bst78]

1.This word was substituted for the word "Bombay"by the Maharashtra Adaptation of Laws (State and Concurrent Subjects) Order, 1960

[bst79]

2. This portion was added by Maharashtra Act No. 29 of 1965.

[bst80]

[bst81]

1. Inserted by Maharashtra Act No. 11 of 1987 w.e.f. 21-4-1987.

[bst82]

2. Inserted by Maharashtra Act No. 42 of 1971 w.e.f. 1-12-1971.

[bst83]

3. Substituted for the words "discontinued after his death" by Maharashtra Act No 42 of 1971 w.e.f. 1-12-1971.

[bst84]

4. These words were Substituted by Maharashtra Act No 42 of 1971 w.e.f. 1-12-1971.

[bst85]

5. These words were Substituted through out the section for the brackets and words "(including any penalty)" by Maharashtra Act No. 11 of 1987 w.e.f. 21-4-1987.

[bst86]

6. Substituted by Mah. Act No. 42 of 1971 w.e.f. 1-12-1971.

[bst87]

1. This words was Substituted for the words "To assist the Commissioner in the execution of his function under this Act, "by Maharashtra Act. No. 21 of 1970 w.e.f. 1.5.1970.

[bst88]

2. Clause '(aa)' was deemed to have been inserted w.e.f. 17.8.92 by Maharashtra Act No. 12 of 1995 Dated 8.6.1995.

[bst89]

3. These words were substituted for the words "State of Bombay" by the Maharashtra Adaptation of Laws (state and Concurrent Subjects) Order, 1960.

[bst90]

4. Inserted by Maharashtra Act No. 1 of 1970 w.e.f. 1.5.1970

[bst91]

5. The portion beginning with the words "but the Commissioner may," and ending with the "restored to him or them" was deleted, by Maharashtra Act No. 21 of 1970 w.e.f. 1.5.1970.

[bst92]

6. These words were substituted for the words "Assistant Commissioners" and shall be deemed to have been substituted w.e.f. 17.8.1992 by the Mah. Act No. LI of 2000, dated 20.12.2000. s.5. (Refer T.C. No. 25-T of 2000 dated 16.9.2000).

[bst93]

7. Sub-Section (7A) was inserted by Mah. Act No. 21 of 1962.

[bst94]

8. Substituted for the portion beginning with the words "an objection" and ending with the words "a memorandum" by Mah 24 of 1990.

[bst95]

1. Substituted by Mah. Act No. 40 of 1969.

[bst96]8. These words were added by Mah. Act No. 13 of 2004, dated 29th June 2004 w.e.f. 1st July 2004. s.19(a). (Refer T. Cr. No. 11T of 2004, dt. 8-7-2004)

[bst97]

2. The "sub-section (3)" was substituted by Mah. Act No. 13 of 2004, dated 29th June 2004 w.e.f. 1st July 2004. s.19(b). (Refer T. Cr. No. 11T of 2004, dt. 8-7-2004). Prior to substituted the sub-section (3) read as under :-

"(3) The qualifications of the member constituting the Tribunal shall be such as may be prescribed and a member shall hold office for such period as the State Government may fix in his case"

[bst98]

3. Sub-section (5) was substituted by Mah. Act No. 44 of 1964 w.e.f. 1964.

[bst99]

4. Substituted for the words "If the members of the Tribunal or a Bench thereof" by Mah. Act No. 40 of 1969 w.e.f. 1-9-1969.

[bst100]

5. Sub-section (6A) was inserted by Maharashtra Act No. 16 of 1963 w.e.f. 1.4.1963.

[bst101]

6. Sub-section (6AA) was deleted, by Maharashtra Act No. 40 of 1969 w.e.f. 1.9.69.

[bst102]

7. Substituted for the words "or the Benches" by Maharashtra Act No. 44 of 1964 w.e.f. 24.12.64

[bst103]

6. 'Section 21A' was inserted by the Maharashtra Tax Laws (Levy & Amendment) Act, 1995.(16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995.

[bst104]

1. This word was substituted for the word "person" by Bom. Act No. 69 of 1959.

[bst105]

2. Sub-section (2A) was inserted w.e.f. 1-5-1998 by the Maharashtra Tax Laws (Levy and Amendment) Act No. XXI of 1998 dated 11-8-1998. s.14(a). (Refer T. Cr. No. 7-T of 1998 dated 5-5-1998).

[bst106]

3. These figures were substituted for the figures "30,000" by the Mah. Act No. 22 of 2001, dated 26th April 2001 w.e.f. 1st May 2001. s.11. (Refer T.C. No. 3-T of 2001, dated 16.4.2001).

[bst107]

4. These words were inserted by Mah. Act No. 29 of 1965 w.e.f. 1-7-1965.

[bst108]5. These words were inserted by Mah. Act No. 13 of 2004, dt. 29-6-2004 w.e.f. 1st July 2004. s.20(a). (Refer T. Cr. No. 11T of 2004, dt. 8-7-2004)

[bst109]

5. Sub-section (5) was inserted w.e.f. 1-5-1998 by the Maharashtra Tax Laws (Levy and Amendment) Act No. XXI of 1998 dated 11-8-1998. s.14(b). (Refer T. Cr. No. 7-T of 1998 dated 5.5.1998).

[bst110]

1. Sub-section (5A) was deemed to have been substituted w.e.f. 1-7-1981 by Mah. Act No. 22 of 1988.

[bst111]

2. Inserted by Mah. Act No. 40 of 1969.

[bst112]

3. These words were added by the Maharashtra Tax Laws (Levy, Amendment and Validation), Act 1997. (Act No. 30 of 1997) w.e.f. 15.5.1997. s.26(a)

[bst113]

4. These words were Substituted by Mah. Act No. 11 of 1992 in force from 1-5-1992 to 8-9-1992 and again w.e.f. 1-4-1994 by Mah. No. 18 of 1994.

[bst114]

5. The proviso was inserted by Mah. Act No. 21 of 1962 w.e.f. 15-7-1962.

[bst115]

6. These words were Inserted by Mah. Act No. 40 of 1969 w.e.f. 1-9-1969.

[bst116]

7. These words were added by the Maharashtra Tax Laws (Levy, Amendment and Validation), Act 1997. (Act No. No. 30 of 1997) w.e.f. 15.5.1997. s.26(b)

[bst117]

8. These words were Inserted by Mah. Act No. 40 of 1969 w.e.f. 1-9-1969.

[bst118]

1. These words were substituted for the words "provided that the cancellation of a certificate of registration" by Mah. Act No. 21 of 1962 w.e.f. 15-7-1962.

[bst119]

2. These words were substituted at both the places for the words "including any penalty" by Mah. Act No. 11 of 1987 w.e.f. 21-4-1987.

[bst120]

3. Sub-section (7) was added by Mah. Act No. 11 of 1992 w.e.f. 1-5-1992 to 8-9-1992 and again amended by Mah. Act No. 18 of 1994 with effect from such date as the State Govt. may be notification in the Official Gazette appoint.

[bst121]4. The "sub-section (8)" was added by Mah. Act No. 13 of 2004, dated 29th June 2004 w.e.f. 1st July 2004. s.20(b). (Refer T. Cr. No. 11T of 2004, dt. 8-7-2004)

[bst122]

1. Section 22A was inserted by Maharashtra Act No.11 of 1992 in force from 1.5.92 to 8.9.92 and again w.e.f.1.4.94 by Maharashtra Act No.18 of 1994.

[bst123]

2. The word 'Recognition' was deleted by Maharashtra Tax Laws (Levy & Amendment) Act, 1995. (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995.

[bst124]

1. Section '22B' was Inserted by Maharashtra Act No. 11 of 1992 operated during the period from 1-5-92 to 8.9.92 only and deleted w.e.f. 1-4-94 by Maharashtra Act No.18 of 1994.

[bst125]

1. This section was substituted for the original by Maharashtra Act No.32 of 1981 w.e.f. 1-7-1981.

[bst126]

1. These words were substituted for the words "sixty thousand rupees" by Maharashtra Act No. 9 of 1988 w.e.f. 22-4-88.

[bst127]

2. This words was inserted by Bombay Act No.69 of 1959,

[bst128]

3. Substituted for the words "sixty thousand rupees" by Maharashtra Act No.9 of 1988 w.e.f. 22.4.1988.

[bst129]

1. 'Section 25' was substituted by Maharashtra Tax Laws (Levy & Amendment) Act, (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995.

[bst130]

[bst131]

1. This section was substituted by Maharashtra Act No. 32 of 1981 w.e.f. 1-7-1981.

[bst132]

2. The word 'recognition' was deleted wherever it occurs by Maharashtra Tax Law (Levy & Amendment) Act, 1995(16 of 1995) dated 18-8-1995 w.e.f. 1-10-1995.

[bst133]

2. The word 'recognition' was deleted & wherever it occurs by Maharashtra Tax Law (Levy & Amendment) Act, 1995(16 of 1995) dated 18-8-1995 w.e.f. 1-10-1995.

1. This section was substituted by Maharashtra Act No. 32 of 1981 w.e.f. 1.7.1981.

[bst139]

2. The word "Recognised dealer" was deleted by Maharashtra Tax Laws (Levy & Amendment) Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995.

[bst140]

3. The word 'or' was deleted by the Maharashtra Tax Laws (Levy and Amendment) Act,1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995.

[bst141]

4. 'Sub clause (ii) was deleted by Maharashtra Tax Laws (Levy and Amendment) Act,1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995.

[bst142]

3. The word "Recognised dealer" was deleted by Maharashtra Tax Laws (Levy & Amendment) Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995.

[bst143]

5. The word 'recognition' was deleted wherever it occurs by Mah. Tax Laws (Levy and Amendment) Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995.

[bst144]

6. The word 'recognition' was deleted wherever it occurs by Mah. Tax Laws (Levy and Amendment) Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995.

[bst145]

6. The word 'recognition' was deleted wherever it occurs by Mah. Tax Laws (Levy and Amendment) Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995.

[bst146]

6. The word 'recognition' was deleted wherever it occurs by Mah. Tax Laws (Levy and Amendment) Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995.

[bst147]

6. The words "Recognition dealer" were deleted by Mah.Tax Law (Levy and Amendment) Act,1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995. [Refer Trade Circular No. 20T of 1995]

[bst148]

7. These were substituted for the brackets and words "(including any penalty,)" by Maharashtra Act No. 11 of 1987 w.e.f. 21-4-1987.

[bst149]

8. The word "recognition" was deleted wherever it occurs by the Maharashtra Tax Laws (Levy and Amendment) Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995. [Refer Trade Circular No. 20T of 1995]

1. The word "authorisation", was substituted for the word " Licence" by Maharashtra Act No. 32 of 1981 w.e.f. 1.7.1981

[bst154]

2. The word "Licence" was deleted by Maharashtra Act No. 32 of 1981 w.e.f. 1-7-1981.

[bst155]

3. The word "recognition" was deleted wherever it occurs by the Maharashtra Tax Laws (Levy and Amendment) Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995. [Refer Trade Circular No. 20T of 1995]

[bst156]

1. The word was substituted for the words 'business or' by the Maharashtra Tax Laws (Levy & Amendment) Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995. [Refer Trade Circular No. 20T of 1995]

[bst157]

2. 'Clause (f)' was deleted by the Maharashtra Tax Laws (Levy & Amendment) Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995. [Refer Trade Circular No. 20T of 1995]. Now again added by Mah. Act No. 17 of 1999 w.e.f. 6.2.1999 s5 (Refer T.C. No. 6-T of 1999.)

[bst158]

3. 'Clauses (g) and (h) were deleted by the Maharashtra Tax Laws (Levy & Amendment) Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995. [Refer Trade Circular No. 20T of 1995]

[bst159]

3. 'Clauses (g) and (h) were deleted by the Maharashtra Tax Laws (Levy & Amendment) Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995. [Refer Trade Circular No. 20T of 1995]

[bst160]

4. Clause. (i) was inserted by Maharashtra Act No. 11 of 1992 w.e.f. 1.5.92 to 8.9.92 as under-" or (i) fails to file any return in respect of any period starting on or after the 1st April 1992, before the expiry of three months next following the last date prescribed for furnishing such return."

[bst161]

1. The word "Authorisation", was substituted for the word "licence", by Maharashtra Act No. 32 of 1981.S.27(c).

[bst162]

2. This word was substituted for the word "being" by Bombay Act No.69 of 1959.

[bst163]

2. This word was substituted for the word "being" by Bombay Act No.69 of 1959.

[bst164]

2. This word was substituted for the word "being" by Bombay Act No.69 of 1959.

[bst165]

3. The word "Licence", was deleted by Maharashtra Act No. 32 of 1981 w.e.f. 1.7.1981.

[bst166]

4. The word 'Recognition' was deleted at both the places where it occurs by Maharashtra Tax Law (Levy and Amendment) Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995.

[bst167]

5. These words were Substituted for the words "also any certificates" by Maharashtra Act No. 32 of 1981 w.e.f. 1.7.1981.

[bst168]

3. The word "Licence", was deleted by Maharashtra Act No. 32 of 1981 w.e.f. 1.7.1981.

[bst169]

4. The word 'Recognition' was deleted both the place where it occurs by Maharashtra Tax Law (Levy and Amendment) Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995.

[bst170]

1. These words were substituted for the words "furnish returns" by Mah. Act No. 11 of 1992 w.e.f. 1-5-1992 to 8-9-1992 and again substituted for the words "furnish return complete in all respects" by Mah. Act No. 18 of 1994 w.e.f. 1-4-1994.

[bst171]

2. These words were substituted for the words "exempt any dealer required to furnish returns under this section" by Bom. Act No. 69 of 1959.

[bst172]

3. These words were substituted for the words "relating to all the places of business" by Mah. Act No. 21 of 1962 w.e.f. 15-7-1962.

[bst173]

4. Substituted for the words and figures "Rs. 16,000" by Mah. Act No. 11 of 1987 w.e.f. 21-4-1987.

[bst174]

5. This words and figures were substituted for the letters and figures "Rs. 50,000" by Mah. Act No. 11 of 1987 w.e.f. 21-4-1987.

[bst175]

6. Sub-section (4) was added by 11 of 1992 w.e.f. 1-5-1992 to 8-9-1992 as under-

"(4)Notwithstanding anything contained in this section or in the rules, the Commissioner may, for reasons to be recorded in writing, direct any dealer or Registered dealer or any class of dealers or Registered dealers to file returns for such periods, by such dates and to such authority as he may direct; and any such direction issued by the Commissioner shall be in addition to and not in derogation of any requirement to file returns under any other provisions of this Act or the rules made thereunder."

[bst176]

1. Sub-section (1) was substituted by Mah. Act. No. 32 of 1972 w.e.f. 13-9-1972

[bst177]

2. These words were inserted by Mah. Act. No. 32 of 1972 w.e.f. 13-9-1972

[bst178]

3. The proviso was added by the Mah. Tax Law (Levy and Amendment) Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995.

[bst179]

4. These words were inserted by Mah. Act. No. 32 of 1972 w.e.f. 13-9-1972

[bst180]

5. Substituted for the words "If a dealer", by Mah. Act. No. 32 of 1972 w.e.f. 13-9-1972

[bst181]

6. This sub-section was inserted by Mah. Act. No. 32 of 1972 w.e.f. 13-9-1972.

[bst182]This portion was substituted by Mah. Act No. 13 of 2004, dated 29th June 2004 w.e.f. 1st July 2004. s.21(1). (Refer T. Cr. No. 11T of 2004, dt. 8-7-2004). Prior to substituted the "portion" read as under :-

"Where all the returns are filed by a registered dealer for any year ending on or after the notified day ^*[within six months from the end of the year to which such returns relate,"

*. These words were substituted for the words “by the prescribed dates, or on or before the date prescribed for filing the last return of that year,” by the Mah. Tax Laws (Levy and Amendment) Act, 2000 (Mah. Act No. 28 of 2000) w.e.f. 1.5.2000. s.7. (Refer T.Cr. No. 11-T of 2000, dated 29-4-2000).

[bst183]

1. Explanation was renumbered as Explanation I and Explanation II was inserted by Mah. Act No. 24 of 1985 w.e.f. 16-8-1985.

[bst184]

1. Explanation was renumbered as Explanation I and Explanation II was inserted by Mah. Act No. 24 of 1985 w.e.f. 16-8-1985.

[bst185]

2. These words were inserted by the Mah. Act No. LI of 2000, w.e.f. 13.9.2000, dated 20.12.2000. s.6. (Refer T.C. No. 25-T of 2000 dated 16.9.2000).

[bst186]

3. These words were substituted for the words "The period covered by such direction to stay the assessment proceeding shall be excluded in computing the period of limitation laid down in this section" by Mah. Act No. 11 of 1992 in force from 1-5-1992 to 8-9-1992 and again w.e.f. 1-4-1994 by Mah. Act. No. 18 of 1994.

[bst187]

4. Section "(4-1B)" was inserted and shall be deemed to have been inserted w.e.f. 1st April 1999 by the Mah. Act No. VIII of 2003, dated 29th March 2003. (Refer T.Cr. Nos. 11T of 2003 dt. 31.3.2003 & 19T of 2003 dt. 6.8.2003)

[bst188]

1. Sub-section (4B) was added by Mah. Act No. 11 of 1992 w.e.f. 1-5-1992 to 8-9-1992 as under-

"(4B)Notwithstanding anything contained in this section, the assessment shall be completed within a period of eighteen months from the date of such order of revocation as referred to in the third proviso to sub-section (4A) and the period of limitation laid down in this section shall be deemed to be modified accordingly.".

[bst189]

2. Sub-sections (5), (6) and (7) were substituted and deemed to have always been substituted by Mah. Act No. 32 of 1972 w.e.f. 13-9-1972.

[bst190]

3. Sub-section (6A) was inserted by Mah. Act No. 62 of 1974 w.e.f. 15-1-1975.

[bst191]

4. Sub-section "6B" inserted by Mah. Act No. 17 of 1999 dated 30.3.1999 w.e.f. 6.2.1999 (Refer T.C. No. 6-T and 10-T of 1999.) then again the "sub-section (6B)" was substituted by Mah. Act No. 13 of 2004, dated 29th June 2004 w.e.f. 1st July 2004. s.21(2). (Refer T. Cr. No. 11T of 2004, dt. 8-7-2004). Prior to substituted the sub-section "(6B)" read as under :-
"(6B) If, during the course of any proceedings under section 49, in case of any dealer or person, the Commissioner, on the basis of evidence available to him, is of the opinion that tax is sought to be evaded in respect of any period by not recording or recording in an incorrect manner, any transaction of sale or transaction of purchase, or that any deduction has been incorrectly claimed on any transaction; then, notwithstanding that any notice for assessment has been issued under other provisions of this section, the Commissioner may, after giving the dealer or the person a reasonable opportunity of being heard, proceed to assess, without prejudice to any assessment which may be made in respect of the said period under other provisions of this section, to the best of his judgement, the amount of tax, if any, due from him on such transaction :
Provided that, tax on such transaction and penalty and interest, if any, consequent upon such tax, will not be levied or demanded when the dealer or person is assessed to tax under the other provisions of this section in respect of the same period.

[bst192] 1. These words were inserted by Mah. Act No. 11 of 1987, s.11

[bst193]

1. Section 33A was deemed to have been inserted w.e.f. 1.4.1988, by Mah. Act No. 22 of 1988.

[bst194]

1. Section 33B was Inserted by Mah. Act No. 11 of 1992 w.e.f. 1.5.1992 to 8..9.1992 and again w.e.f. 1.4.1994 by Mah. Act No. 18 of 1994

[bst195]

1. Section 33C was inserted and shall be deemed to have been inserted w.e.f. 1st July 1981 by the Mah. Act No. 20 of 2002 , dated 4th May, 2002 s.16. (Refer Tr. Cir. No. 11-T of 2002, dated 4.5.2002)

[bst196]1. Section "33D" was inserted by Mah. Act No. 13 of 2004, dated 29th June 2004 w.e.f. 1st July 2004. s.22. (Refer T. Cr. No. 11T of 2004, dt. 8-7-2004)

[bst197]

1. These words were substituted for the brackets and words "(including any penalty)" by Mah. Act No. 11 of 1987 w.e.f. 21-4-1987.

[bst198]

1. This portion was deemed always to have been substituted by Mah. Act No. 32 of 1972 w.e.f. 13-9-1972.

[bst199]

2. Clause (a) was deemed always to have been deleted by Mah. Act No. 21 of 1962 w.e.f. 15-7-1962.

[bst200]

3. Substituted and deemed always to have been substituted by Mah. Act No. 32 of 1972 w.e.f. 13-9-1972.

[bst201]

4. The words "or as the case may be, any earlier law" were deemed always to have been deleted by Mah. Act No. 21 of 1962.

[bst202]

5. The words "or the relevant earlier law" were deemed always to have been deleted, by Mah. Act No. 21 of 1962 w.e.f. 15-7-1962.

[bst203]

6. Sub-section"IA" was inserted by Mah. Act No. 17 of 1999 dated 30.3.1999 w.e.f. 6.2.1999 s7(a) (Refer T.C. No. 6-T and 10-T of 1999.)

[bst204]

7. These brackets and figures [(I) or (IA)] were substituted by Mah. Act No. 17 of 1999 dated 30.3.1999 w.e.f. 6.2.1999 s7(a) (Refer T.C. No. 6-T and 10-T of 1999.)

[bst205]

8. The figures and word "33 or" were deemed always to have been deleted by Mah. Act No. 32 of 1972.

[bst206]

1. Sub-section (1) was substituted by Mah. Act. No. 32 of 1982 w.e.f. 1-7-1981.

[bst207]

2. Sub-section (2) was substituted by Mah. Act. No. 11 of 1987 w.e.f. 21.4.1987.

[bst208]

3. 'Clause (c) was substituted by the Mah. Tax Laws (Levy and Amendment) Act, 1995 (16 of1995) Dated 18-8-1995 w.e.f. 1-10-1995. [Refer Trade Circular No. 20T of 1995]

[bst209]

1. These words were deemed to have been substituted w.e.f. 1-10-1995 for the words "failed to disclose such transaction of sale or purchase" by Mah. Act No. 19 of 1996.

[bst210]

2. Explanation II was deemed to have been substituted w.e.f. 1-10-1995 by Mah. Act No. 19 of 1996.

[bst211]

3. Sub-section (2A) and (2B) were inserted by Mah. Act No. 42 of 1971.

[bst212]

4. These words were substituted for the words "dealer knowingly" by Mah. Act No. IX of 1997 w.e.f. 1-10-1996. s.31.

[bst213]

5. These words were substituted for the words "such dealer" by Mah. Act No. IX of 1997 w.e.f. 1-10-1996. s.31.

[bst214]

1. Sub-section (3) was deemed to have been substituted w.e.f. 21-4-1987 by Mah. Act No. 22 of 1988.

[bst215]2. These words were substituted for the words "two per cent." by Mah. Act No. 13 of 2004, dated 29th June 2004 w.e.f. 1st July 2004. s.23(a)(i). (Refer T. Cr. No. 11T of 2004, dt. 8-7-2004).

[bst216]

3. The Proviso and Explanation were added by Mah. Act No. 20 of 1990, w.e.f. 21.4.1987.

[bst217]

4. These words were inserted and deemed to have been inserted w.e.f. 21-4-1987 by Mah. Act No. 11 of 1992. and again Mah. Act No. 18 of 1994.

[bst218]

5. These words were inserted and deemed to have been inserted w.e.f. 21-4-1987 by Mah. Act No. 11 of 1992. and again Mah. Act No. 18 of 1994.

[bst219]

6. Substituted and deemed to have been substituted for the words "such returns as required under the rules made under this Act" w.e.f. 21-4-1987 by Mah. Act No. 11 of 1992 and Mah, Act No. 18 of 1994.

[bst220]

1. 'Clause (b) was substituted by Mah. 11 of 1992 w.e.f. 1-5-1992 to 8-9-1992 and again w.e.f. 1-4-1994 by Mah. Act No. 18 of 1994.

[bst221]

2. These words were substituted for the words "on the date prescribed for filing the last return in respect" by the Mah. Tax Laws (Levy and Amendment) Act, 2000 (Mah. Act No. 28 of 2000) w.e.f. 1.5.2000. s.8(a)(i). (Refer T.Cr. No. 11-T of 2000, dated 29-4-2000).

[bst222]

3. These figure & words were substituted for the words "two per cent." by Mah. Act No. 13 of 2004, dated 29th June 2004 w.e.f. 1st July 2004. s.23(a)(ii)(A). (Refer T. Cr. No. 11T of 2004, dt. 8-7-2004)

[bst223]

4. Substituted for the words "or any appellate or revisional authority may" by Mah. Act No.11 of 1992 w.e.f. 1-5-1992 to 8-9-1992 and again substituted for the word "may, subject to rules and" by Mah. Act No. 18 of 1994 w.e.f. 1-4-1994.

[bst224]

5. The proviso was added by Mah. Tax Laws (Levy and Amendment) Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995. [Refer Trade Circular No. 20T of 1995]

[bst225]

6. These figures were substituted for the figures "1995" by the Mah. Tax Laws (Levy and Amendment) Act, 2000 (Mah. Act No. 28 of 2000) w.e.f. 1.5.2000. s.8(a)(ii)(I).

[bst226]

[bst227]

7. These words were substituted for the words "has remained unpaid, then" by the Maharashtra Tax Laws (Levy , Amendment and Validation) Act, 1997 (Act No 30 of 1997) w.e.f. 15.5.1997. s.27(a).

[bst228]

9. These words were substituted for the words "on or before the date prescribed for filing the last return in respect" by the Mah. Tax Laws (Levy and Amendment) Act, 2000 (Mah. Act No. 28 of 2000) w.e.f. 1.5.2000. s.8(a)(ii)(II).

[bst229]

10. These words were inserted by the Maharashtra Tax Laws (Levy , Amendment and Validation) Act, 1997 (Act No 30 of 1997) w.e.f. 15.5.1997. s.27(b)

[bst230]

Sub-section (4A) was inserted by Mah. Act No. 15 of 1985(w.e.f. 24-5-1985) then again the sub-section (4A) was substituted by Mah. Act No. 13 of 2004, dated 29th June 2004 w.e.f. 1st July, 2004, s.23(b). (Refer T. Cr. No. 11T of 2004, dt. 8-7-2004). Prior to substituted the "sub-section (4A)" read as under :-

"(4A) If a dealer fails without sufficient cause, to file within the prescribed time a return for any period the Commissioner may, after giving an opportunity to the dealer of being heard, impose upon him by way of a penalty a sum not exceeding two thousand rupees, such penalty shall be without prejudice to any penalty leviable under clause (c) of sub-section (2) of this section.

Provided that this sub-section shall not apply to such class or classes of dealer as the Commissioner may, from time to time, specify in the Official Gazette."

[bst231]

1. Section 36A was inserted by Mah. Act. No. 20 of 1990 w.e.f. 25.4.1990

[bst232]

1. This sub-section was Substituted by Mah. Act No. 40 of 1969

[bst233]

2. Sub-clause '(ii-a1) was Inserted w.e.f.13.7.1986 and deleted by Maharashtra Tax Laws (Levy and Amendment) Act,1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995.

[bst234]

3. Sub-clause (ii-a) was Inserted w.e.f. 10.6.1975 and deleted by Maharashtra Tax Laws (Levy and Amendment) Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995.

[bst235]

4. These words were substituted by Mah. Act No. 19 of 1996 w.e.f 29 June 1996

[bst236]

5. These words were substituted by the Mah. Tax Laws (Levy and Amendment) Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995

1. These words were substituted by the Mah. Tax Laws (Levy and Amendment) Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995 [bst237]

2. Sub-section (2) was substituted for the original by Mah. Act No.9 of 1984 w.e.f. 1-4-1984.

[bst239] 3. These words were inserted by Mah. Act No. 11 of 1987 w.e.f. 21-4-1987

[bst240]4. The word “ assessed” was deleted by Bom. Act No.69 of 1959

5. This word was substituted for the word "and" by Mah. Act No. 21 of 1962 w.e.f. 15-7-1962.

6. Sub-clause (iii) was inserted, by Mah. Act No. 21 of 1962 w.e.f. 15-7-1962.

7. These words were Inserted by Mah. Act No. 11 of 1987 w.e.f. 21-4-1987.

8. These words were Inserted for the words "or interest, reduced, if any, under section 43A" by Mah. Act No. 11 of 1992 and deemed to have been deleted w.e.f. 1-5-1992 by Mah. Act No. 18 of 1994.

9. This words was inserted by Mah. Act No. 62 of 1974 w.e.f. 15-1-1975.

10. The word 'and' and clause '(e)' were Inserted by Mah. Act No. 11 of 1992 w.e.f. 1-5-1992 to 8-9-1992 and again w.e.f. 1-4-1994 by Mah. Act No. 18 of 1994

11. These words were Substituted for the words "such date as may be specified in notice by the Commissioner, for this purpose, being a date not earlier than thirty days from the date of service of the notice" by Mah. Act No. 11 of 1992 w.e.f. 1-5-1992 to 8-9-1992 and again w.e.f. 1-4-1994 by Mah. Act No. 18 of 1994.

12. The words "or an appellate authority in an appeal under section 55" were deleted by Mah. Act No. 11 of 1992 w.e.f. 1-5-1992 to 8-9-1992 and again deleted by Mah. Act No. 18 of 1994 w.e.f. 1-4-1994.

13. These words were inserted, by Mah. Act No. 11 of 1987 w.e.f. 21-4-1987.

14. Added by Mah. Act No. 24 of 1990 w.e.f. 1-9-1990.

15. This proviso was inserted by Mah. Act No. 32 of 1981 w.e.f. 1-7-1981.

16. The portion beginning with the words "by the State Industrial" and ending with the words "Maharashtra State" was deleted by Mah. Act No. 15 of 1985 w.e.f. 24-5-1985.

17. This proviso was added by Mah. Act No. 11 of 1987 w.e.f. 21-4-1987.

18. These words and figures were inserted by Mah. Act No. 2 of 1989 dated 9-1-1989.

[bst255]19. These words and figures were substituted for the figure "1988" by Mah. Act No. 29 of 1994, w.e.f. 1.10.1993.

[bst256]20. These words were inserted and shall be deemed to have been inserted w.e.f. 26th February 2003 by Mah. Act No. 13 of 2004, dated 29th June 2004. s.24. (Refer T. Cr. No. 11T of 2004, dt. 8-7-2004).

21. These words were inserted and deemed to be inserted w.e.f. 1.10.1993 by Mah. Act No. 29 of 1994.

22. The proviso was added by the Mah. Tax Laws (Levy and Amendment) Act, 1995(16 of 1995) Dated 18.8.1995 w.e.f. 1-10-1995 and again the proviso was substituted by the Mah. Act No. 20 of 2002 , dated 4th May, 2002 w.e.f. 1st May 2002 s.17. (Refer Tr. Cir. No. 11-T of 2002, dated 4.5.2002) Prior to substituted the Proviso read as under :-

"Provided also that the dealer referred to in the third proviso may, at this option discharge his loan liability in respect of any period by payment of such reduced amount as may be prescribed."

23. This word was inserted by Mah. Act No. 11 of 1987

24. These words were substituted for the words "dates specified in the notice for payment or after the extended date of payment and" by Mah. Act No. 11 of 1992 w.e.f. 1-5-1992 to 8.9.1992 and again w.e.f. 1.4.1994 by Mah. Act No 18 of 1994.

25. Sub-section (6) was deemed always to have been added by Mah. Act No. 40 of 1969 w.e.f. 1.9.1969.

26. This portion was substituted by Mah. Act No 9 of 1989 w.e.f. 1-4-1989.

27. These words were substituted for the words "if the commissioner" by Mah.Act No. 9 of 1989 w.e.f. 1-4-1989.

28. Sub-section (6A) was inserted by Mah. Act No.9 of 1989 w.e.f. 1-4-1989

29. Sub-section (7) was added by Maharashtra Act No. 40 of 1969 w.e.f. 1-9-1969

[bst266]

[bst267]

1. Section 38C was inserted by Mah. Act No. 17 of 1999 dated 30.3.1999 w.e.f. 6.2.1999 s.9 (Refer T.C. No. 6-T and 10-T of 1999.)

[bst268]

1. This word was inserted by Mah. Act No. 11 of 1987 w.e.f. 21-4-1987.

[bst269]

2. The Proviso was inserted by Mah. Act No. 11 of 1992 w.e.f. 1-5-1992 to 8-9-1992 and deleted w.e.f. 1-4-1994 by Mah Act No. 18 of 1994.

[bst270]

3. This word was inserted by Mah. Act No. 11 of 1987 w.e.f. 21-4-1987.

[bst271]

1. Sub-section (6) was added by Mah. Act No. IX of 1997 dated 6-1-1997. s.32(b) w.e.f 1-10-1996

[bst272]

1. Section 39-1A was inserted by Mah. Act No. 9 of 1989 w.e.f. 1-4-1989.

[bst273]

2. The proviso was added by Mah. Act No. IX of 1997. s.32(a). w.e.f. 1-10-1996.

[bst274]

3. Sub-sections (3) and (4) were substituted by Mah. 11 of 1992 w.e.f. 1-5-1992 to 8-9-1992 and again w.e.f. 1-4-1994 by Mah. Act No. 18 of 1994.

[bst275]

4. These words were substituted and deemed to have been substituted w.e.f. 1-4-1989 for the words "Commissioner himself or by any Deputy Commissioner" by the Maharashtra Tax Laws (Levy, Amendment and Validation) Act, 1997 (Act No. 30 of 1997). s. 28.

[bst276]

5. Sub-section (5) was added by Mah. Act No. 18 of 1994 w.e.f. 1-4-1994

[bst277]

2. 'Section 39A' was inserted by Mah. Act No. 29 of 1965 w.e.f. 1-7-1965.

[bst278]

3. These words were inserted by Mah. Act No. 11 of 1987 w.e.f. 21-4-1987.

[bst279]

1. Section 40 was substituted by Mah. Act No. 17 of 1993 w.e.f. 1-5-1993.

[bst280]

1. Section "40A" was inserted by the Mah. Act No. XVI of 2002, dated 15.4.2002 w.e.f. 26th February, 2002. s.3 and again Section "40A" was substituted by Mah. Act No. 13 of 2004, w.e.f. 29th June 2004. s.25. (Refer T. Cr. No. 11T of 2004, dt. 8-7-2004). Prior to substituted the Section "40A" read as under :-

[40A.Lump-sum payment in lieu of tax on Lottery tickets :-(1) Notwithstanding anything contained in any other provisions of this Act, any dealer dealing in Lottery tickets may, at his option, pay, in lieu of the amount of tax payable by him, in respect of turnover of sales of tickets of a passive lottery (i.e. a lottery in which the lottery tickets of fixed value are pre-printed and sold), a lumpsum as stated in the Table hereunder:-

Serial No.	Type of Draw	Rate per Draw
1	Weekly Draw	Rupees Ten thousand (Rs. 10,000)
2	Fortnightly draw, including any draw the period of which is more than a week but less than a fortnight.	Rupees Fifty thousand (Rs. 50,000)
3	Monthly draw, including Monthly Bumper Draw and any draw the period of which is more than a fortnight but less than a month.	Rupees One lakh (Rs. 1,00,000)
4	Special Bumper Draw or Festival Bumper Draw including any other draw not covered by any other category and any draw the period of which is more than a month.	Rupees Two lakhs (Rs. 2,00,000)

Provided that, where a dealer has paid the tax under this sub-section in respect of the sale of lottery tickets of a particular name and type of lottery ticket of a particular State and for a particular draw, no tax shall be payable in respect of the sale of such lottery tickets by any other dealer or any person in this State who is liable to pay tax under this Act.

(2) Notwithstanding anything contained in any other provisions of this Act, tax payable under sub-section (1) shall be paid ten days prior to the date of the draw.]

[bst281]2. These words were substituted for the words, brackets and letters "the maximum retail price (M.R.P.) of such tickets sold" by Bombay Sales Tax (Amendment) Ordinance, 2004, w.e.f. 29-6-2004. s.2.

[bst282]

1. Section 41 was re-numbered as sub-section (1) of that section by Mah. Act No. 21 of 1962 w.e.f. 15-7-1962.

[bst283]

2. This portion was substituted by Mah. Act No. 22 of 1997 w.e.f. 28-1-97. s.3.

[bst284]

3. Sub-section (2) was substituted by Mah. Act No. 32 of 1981 w.e.f. 1-7-1981.

[bst285]

4. These words deemed to have been inserted w.e.f. 1-7-1981 by Mah. 9 of 1988.

[bst286]

5. These words were substituted for the words "such declaration, then" by Mah. Act No. 11 of 1992 w.e.f. 1-5-1992 to 8-9-1992 and again w.e.f. 1-4-1994 by Mah. Act No. 18 of 1994.

[bst287]

6. The Second proviso was added by Mah. Act No. 18 of 1994 w.e.f. 1-4-1994.

[bst288]

7. Sub-section (3) was inserted by Mah. Act No.. 21 of 1962 w.e.f. 15-7-1962.

[bst289]

1. <font SIZE="2" face="Verdana" ">The Section "41-A1" was inserted by Mah. Act No. 13 of 2004, dated 29th June 2004 w.e.f. 1st July 2004. s.26. (Refer T. Cr. No. 11T of 2004, dt. 8-7-2004)

[bst290]

1. Section 41A was inserted by Mah. Act No. 15 of 1985, dt. 24-5-1985.

[bst291]

2. The proviso was added by Mah. Act No. 29 of 1994 w.e.f. 1-5-1994.

[bst292]

1. Section 41B was inserted by Mah. Act No. 29 of 1994 w.e.f. 1.5.1994.

[bst293]

2. These words were inserted, and shall be deemed to have been inserted, w.e.f. 1-10-1995 by Mah. Act No. 19 of 1996.

[bst294]3. These words, letter and figure were substituted for the words, letter and figure "as the case may be, under entry E-3" by Mah. Act No. 13 of 2004, dated 29th June 2004 w.e.f. 1st July 2004. s.27. (Refer T. Cr. No. 11T of 2004, dt. 8-7-2004)

[bst295]

1. Section "41BA" was inserted by the Mah. Act No. 22 of 2001, dated 26th April 2001 w.e.f. 1st May 2001. s.12 (Refer T.C. No. 3-T of 2001, dated 16.4.2001).

[bst296]

1. Section "41BB" was inserted by the Mah. Act No. 22 of 2001, dated 26th April 2001 w.e.f. 1st May 2001. s.12 (Refer T.C. No. 3-T of 2001, dated 16.4.2001).

[bst297]

1. Section '41C' was inserted by Mah.Act No. 12 of 1995 w.e.f. 8.6.1995 (Refer Tr. Cir. No. 9T of 1995)

[bst298]

2. Sub-clause (i)' was Substituted by Maharashtra Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995.

[bst299]

3. These words were substituted, and shall be deemed to have been substituted, w.e.f. 1-10-1995 by Mah. Act No. 19 of 1996.

[bst300]

4. <font SIZE="2" face="Verdana" ">These words were inserted, and shall be deemed to have been inserted, w.e.f. 1-10-1995 by Mah. Act No. 19 of 1996 then again these words, letter and figure were substituted for the words, letter & figure "or as the case may be, under entry E-3," by Mah. Act No. 13 of 2004, dated 29th June 2004 w.e.f. 1st July 2004. s.28. (Refer T. Cr. No. 11T of 2004, dt. 8-7-2004)

[bst301]

1. Section '41D' was inserted by Mah. Act, 1995 (16 of 1995) Dated 18-8-1995 w.e.f. 1-10-1995

[bst302]

1. Original Section 42 Re-numbered as Sub-section (1) by Mah. Act No. 10 of 1991. dt. 27-3-1991 restrospectively w.e.f. 1-1-1960.

[bst303]

2. These words were Substituted for the words "purchasing dealer" by Mah. Act No. 9 of 1988 w.e.f. 22-4-1988.

[bst304]

3. Sub-clause (iii) was Added by Mah. Tax Laws (Levy & Amendment Act) Mah. Act No. 9 of 1988 w.e.f. 28-4-1988.

[bst305]

4. The sub-clause (iv) was added and shall be deemed to have been added w.e.f. 1st October 2002 by Mah. Act No. 13 of 2004, dated 29th June 2004. s.29. (Refer T. Cr. No. 11T of 2004, dt. 8-7-2004)

[bst306]

5. Sub-sections (2) & (3) were Inserted by Mah. Act No. 10 of 1991 w.e.f. 1-1-1960.

[bst307]

6. Sub-section (3) was substituted and shall be deemed always to have been substituted by the Maharashtra Tax Laws (Levy and Amendment) Act No. XXI of 1998 dated 11-8-1998. s.15. (Refer T. Cr. No. 7-T of 1998 dated 5-5-1998). Prior to substituted Sub-section (3) stood as under :-

"(3)For the removal of doubt it is hereby declared that, in no case the amount of draw-back, set-off or refund shall exceed the amount of tax in respect of the same goods paid, if any, into Government treasury"