Chapter IV

Returns, Assessment, Payment and Recovery of Tax

Section 23 Periodical Returns and Payment of Tax;

(1) Every dealer who is liable to pay tax under this Act shall submit such return or returns of his turnover at such intervals, within such period, in such form and verified in such manner as may be prescribed.

(2) Notwithstanding any thing contained in sub-section (1) every registered dealer and every dealer who is liable to get himself registered under Section 15, shall submit a return or returns relating to his turnover for such period and in such manner as may be prescribed;

(3) Every dealer or a person liable to pay tax shall also submit along with the return a list of purchases from registered dealers of goods in respect of which input tax credit is being claimed in the prescribed manner containing such particulars as may be prescribed;

(4) Every person making any payment to any contractor or sub-contractor in connection with the transfer of property in goods in pursuance of a works contract and responsible for deduction of tax at source, shall submit a return of such payment with their complete name, address and the amount paid and deduction made during the tax period, within such time and in such manner as may be prescribed;

(5) Notwithstanding anything contained in sub-section(1) or sub-section (2) or sub-section(4) above the Commissioner may, subject to such conditions and restrictions as may be prescribed, exempt any such dealer or class of dealers from furnishing such returns or permit any such dealer or class of dealers-

(i) to furnish them for such different periods; or

(ii) to furnish a consolidated return relating to all or any of the places of business of the dealer in the State of Uttaranchal for the said period or for such different periods and to such authority as he may direct;

(6) Every dealer required to file return under this Section shall pay the full amount of tax payable according to the return or the differential tax payable according to the revised return furnished, along with any such amount which has been wrongly realized in excess of an amount of tax due under this Act and also the amount of tax, if any, deducted at source as per the provisions under Section 35, in such manner as may be prescribed, and shall furnish along with the return or revised return, as the case may be, a receipt showing full payment of such amount;

(7) The assessing authority may in its discretion, for reasons to be recorded in writing, extend the date for submission of the return by any person or class of persons;

(8) Where as a consequence of the date for the submission of return being extended under sub-section (7), the deposit of tax under sub-section (1) or sub-section (2) is deferred, there shall be payable an interest at the rate of one and a half percent per month on such deposit from the date immediately following the last date prescribed for the submission of the return till the date of deposit of such amount;

(9) If any dealer discovers any omission or other error in any return submitted by him, he may, at any time before the time prescribed for submitting the next return, submit a revised return. If the revised return shows a greater amount of tax to be due than was shown in the original return, the dealer shall also deposit separately the difference of tax due and the interest payable and if the revised return shows lesser amount of tax to be due than was shown in the original return the dealer may adjust the excess amount toward the tax due for the subsequent periods;

(10) If goods sold or purchased by a dealer are returned within six months of the date of sale or purchase, and assessment for the year to which such sale or purchases relates is as yet to be made, he may within thirty days of the expiry of the month in which such goods are returned, submit for that purpose only a revised return for the period during which such sale or purchase was made;

(11) A registered dealer who ceases to carry on business shall file a final tax return with in sixty days from the date of cessation. He shall be required to comply with other provisions as applicable regarding filing of return under this Section;

(12) If the assessing authority has reason to believe that the turnover of sales or the turnover of purchases of any dealer is likely to exceed or has exceeded the taxable limit as specified in sub-section (9) of Section 3, it may, by notice served in the prescribed manner, require such dealer to furnish return as if he were a dealer liable to pay tax but tax shall be payable by him only if it is due under any provisions of this Act.

(13) For the purpose of this Act, any return signed by a person who is not authorised under the rules, shall be treated as if no return has been filed;

Section 24: Provisional Assessment

(1) The assessing authority may scrutinize any return or returns in relation to any tax period furnished by any dealer to verify the correctness of calculation, application of correct rate of tax and interest, and input tax credit claimed therein; and full payment of tax and interest payable by the dealer during such period;

(2) If any mistake is detected as a result of such scrutiny made as per provisions of sub-section (1) above, the assessing authority shall, without prejudice to any thing contained in Section 58 and Section 61, serve a notice in the prescribed form on the dealer to make payment of the extra amount of tax, if any, along with the interest as per the provisions of this Act;

(3) Where in case of a registered dealer or any dealer liable to pay tax or a dealer to whom notice has been issued by the assessing authority under sub-section (12) of Section 23, and in respect of any tax period during an assessment year-

(i) the return is not submitted with in the time prescribed or extended by the assessing authority; or

(ii) the return is submitted but not in the prescribed manner; or

(iii) the return submitted is, in the opinion of the assessing authority, incorrect or incomplete or contains wrong particulars; or

(iv) the return is submitted without payment of tax in the manner prescribed; or

(v) the return required under sub-section (11) of Section 23 is not filed within the prescribed time,

the assessing authority shall after making such inquiries as it considers necessary, determine the turnover of sales or of purchases or both, as the case may be, provisionally and assess the tax payable thereon.

(4) If in respect of any one or more tax period, as the case may be-

(i) the tax payable as shown in the return appears to the assessing authority to be incorrect; or

(ii) the tax paid along with the return is less than the amount due under the Act or shown payable in the return; or

(iii) the input tax credit claimed in the return is not supported by the required information, as per sub-section(3) of Section 23;

the assessing authority shall provisionally assess the tax payable on the turnover of sales or purchases or both as the case may be, shown in the return at the rates prescribed under the Act;

(5) The provisional assessment under this Section shall be made on the basis of past returns, or past records or on the basis of information received by the assessing authority and the assessing authority shall direct the dealer to pay the amount of tax assessed in such manner and by such date as may be prescribed;

(6) Nothing contained in this Section shall prevent the assessing authority from making final assessment for the whole year under Section 25 or Section 26 and any tax paid against the provisional assessment shall be adjusted against tax, interest and penalty payable on final assessment under Sections referred to above

(7) No provisional assessment against a dealer shall be made without giving the dealer a reasonable opportunity of being heard.

Section 25: Assessment of Tax for the Assessment Year:

(1) There shall be an assessment of turnover of taxable purchases, taxable sales, amount of tax payable on such turnover and amount of input tax credit admissible to a dealer for each assessment year or where the dealer has carried on his business for a part of a assessment year, for such part of assessment year during which the dealer has carried on business;

(2) If the assessing authority, after such enquiry as he consider necessary is satisfied that the returns submitted under Section 23 are correct and complete, he shall assess the tax on the basis thereof;

(3) Tax Audit: - (i) The assessing authority or any other officer authorised by the Commissioner shall undertake audit of the records, stock in trade and related documents of the dealer, who are selected by the assessing authority in the manner as may be prescribed for the purpose.

(ii) For the purpose of tax audit under sub-section (1) the assessing authority or any other officer authorised by the Commissioner shall examine the correctness of return or returns filed and admissibility of various claims including input tax credit.

(iii) The tax audit may be taken up in the office, business premises or warehouse of the dealer. However, the assessing authority may, if he deems it necessary, require the dealer to either attend and produce or cause to be produced the books of accounts and other documents in his office or any other place which may be specified in the notice.

(iv) The dealer shall provide full cooperation and assistance to the assessing authority or the authorised officer to conduct the proceedings under this section at his business premises.

(v) If proceedings under this Section are conducted at the business premises of

the dealer and it is found that the dealer or his authorised representative is not available or not functioning from such premises, the assessing authority shall assess the dealer under this Section or, as the case may be, provisionally assess the dealer under Section 24 of this Act, to the best of his judgment the amount of turnover and tax due from the dealer.

(4) Where-

(i) a registered dealer has failed to furnish one or more returns under sub-section(1) of Section 23 in respect of any tax period within thirty days from the end of the period prescribed for furnishing the return; or

(ii) has furnished incomplete or incorrect returns for any tax period;

(iii) a registered dealer, if covered under the Self Assessment scheme under Section 26 and is selected for regular assessment by the assessing authority on the basis of any criteria or on the random basis; or

(iv) the assessing authority is not satisfied with the correctness of any return filed under Section 23; or bona fides of any claim of exemption, deduction, concession, input tax credit or genuineness of any declaration or evidence furnished by a registered dealer in support thereof; or

(v) the assessing authority has reason to believe that detailed scrutiny of the case is necessary in respect of any dealer,

the assessing authority may, notwithstanding the fact that the dealer may already have been provisionally assessed under Section 24, serve on such dealer in the prescribed manner a notice requiring him to appear on a date and place specified therein, to attend and produce or cause to be produced the books of account and all evidence on which the dealer relies in support of his returns including tax invoice, if any, or to produce such evidence as specified in the notice

(5) The assessing authority shall, after examination of returns, books, accounts and documents and after considering all the evidence produced in the course of proceedings including tax audit proceedings under sub-section (3) or collected by him otherwise and after making such enquiry, as it may deem fit-

(i) If the assessing authority is satisfied that turnover of sales and, or of purchases disclosed and amount of tax shown payable by the dealer in annual return is correct and worthy of credence, it shall assess the dealer to tax in accordance with the provisions of the Act, by an order in writing, on the turnover admitted by the dealer; and

(ii) where the dealer has failed to furnish the return or returns of his turnover or has furnished incomplete or incorrect return or returns and/or the assessing authority is of the opinion that the turnover disclosed and the amount of tax paid by the dealer does not appear to be correct, the assessing authority shall cause a notice to be served on the dealer, stating the reason, for non acceptance of the turnover of sales or purchases or both, as disclosed by him and shall give him a reasonable opportunity of being heard and if he is not satisfied with the reply submitted by the dealer he shall determine the turnover to the best of his judgment and the tax payable thereon, by an order in writing;

Provided that where the opportunity for production of books, accounts and

documents has been afforded to the dealer but for any reason he has not availed such opportunity and thereby the assessing authority could not examine the correctness and propriety of particulars shown in the returns, it shall not be necessary to issue show cause notice to such dealer before making as assessment order to the best of his judgment.

(6) Any provisional assessment order in respect of any tax period under Section 24 shall not prevent the assessing authority to make final assessment and the provisional assessment order shall stand merged in the final assessment order passed under this Section;

(7) If the assessing authority, upon information which has come to his possession, is satisfied that any dealer who is liable to pay tax under this Act in respect of any period, has failed to get him self registered, and has not filed any retun the assessing authority shall proceed in such manner as may be prescribed to assess to the best of his judgment the amount of tax due from the dealer in respect of such period and all subsequent periods and in making such assessment shall give the dealer a reasonable opportunity of being heard;

(8) In cases of the following dealers or class of dealers in respect of different transactions more than one assessment may be made for the same assessment year and will be treated as part of one assessment year-

(i) dealers who have obtained more than one authorisation for transit of goods through the State; in respect of each authorisation for transit of goods to the State;

(ii) casual traders who has not obtained registration certificate and has no fixed place of business; by different assessing officers in whose jurisdiction he has carried on business;

(iii) unregistered dealers who import taxable goods on each occasion they import goods;

(iv) unregistered dealers who either execute works contracts or effect transfer of right to use any goods for any purpose in jurisdiction of more than one assessing officer and have no fixed place of business, by each assessing officer in respect of business done in his jurisdiction;

Provided that more than one assessment shall not be made in respect of the

same turnover of sales or turnover of purchases.

(9) Where during the course of an assessment year the rate of tax on the turnover of any goods or class of goods is varied or an exemption in respect thereof is granted or cancelled the assessment, so far as it relate to the portion of such turnover for the period after the date of variation, exemption or cancellation shall be made on the basis of the rate so varied or the exemption so granted or cancelled.

Section 26: Self-Assessment:

(1) The State Government may by notification in the official Gazette, direct that any registered dealer who has filed the prescribed returns along with the tax due thereon, and the returns so filed are found to be in order, and whose taxable turnover during an assessment year does not exceed the amount so notified for this purpose, shall, subject to the conditions and restrictions as may be prescribed therein, be accepted for self assessment for such assessment year on the turnover of taxable sale and taxable purchases and amount of tax payable by the dealer on such turnover admitted in returns submitted by him for such assessment year, subject to adjustment of any arithmetical error apparent on the face of the said returns, and the assessing authority shall direct the dealer to pay within such time and in such manner as may be prescribed, the amount of tax, if any, that may become due.

Provided that from amongst the dealers covered under the scheme of Self Assessment a certain percentage, as may be specified in the notification, of dealers may be selected for regular assessment by the assessing authority on the basis of any criteria or on the random basis, and such dealer shall be deemed to be not covered under the scheme of Self Assessment for all proposes.

(2) Every dealer covered in self assessment under sub-section (1) above shall, subject to such conditions and restrictions as may be notified, submit to the assessing authority in addition to the returns for the tax period filed, an annual return of his turnover for the assessment year in the prescribed form, containing such particulars and accompanied by supporting documents, including

(a) particulars of turnover of purchase, sale and other transactions and value of opening and closing stocks; and

(b) such declaration, certificates, and such other evidence on which such dealer relies in support of his returns; and

© computation of his own assessment of amount of tax due form him on the basis of such returns including claim for input tax credit; and

(d) proof of payment of the additional tax admitted as due and interest due as per his own calculation; and

(e) such other particulars, documents and statements as may be prescribed.

(3) If for the amount of deductions (including deduction on the basis of input tax credit) exemptions and any other concessions or rebates, claimed by the dealer in the return no supporting declarations, certificates, or evidence required under this Act or the Central Sales Tax Act, 1956 is furnished, he shall be self-assessed by disallowing such deductions, exemptions and other claims and by levying the appropriate rate of tax as if the sales were taxable, after giving the dealer a notice in writing to explain and to make good the short comings mentioned within the time prescribed;

(4) If the assessing authority is satisfied that the returns for the tax period and annual return for his turnover for the assessment year for self assessment are prima facie correct, consistent and complete, he shall accept the self assessment filed by the dealer and shall assess the amount of tax and interest due from the dealer on the basis of such returns after making prima-facie adjustments in the nature of arithmetical errors, if any, in the returns and self-assessment;

(5) If the self assessment statement has not been filed within the time prescribed or if filed, the assessing authority is not satisfied that the returns and self assessment statement are prima facie correct, consistent and complete and the dealer has failed to explain and make good the short comings as per provisions of sub-section (3) above, the assessing authority shall proceed to make regular assessment under the provisions of Section 25, notwithstanding the provisions of this Section.

(6) No assessment under this section shall be made for the same period for which an order has been passed to make audit assessment under Section 25.

Section 27: Assessment in case of Price Variation:

Where a dealer receives in any year any amount due to price variation which would have been in his turnover for any previous tax period if it had been received by him during that period, it shall be deemed to be turnover during the tax period in which such amount was received and he shall, during the tax period in which such amount was received, include such amount in the return separately for the tax period, to the assessing authority and the assessing authority shall assess the tax payable on such amount as his turnover for the tax period in which such amount is received.

Provided that the tax shall be charged at the rate at which it would has been charged had such turnover been assessed for the assessment year to which such turnover belongs.

Section 28: Protective Assessment:

Where the assessing authority has reason to believe that any person, with a view to evade the payment of tax or in order to claim any input tax credit which he otherwise is not eligible for, or was carrying on business in the name of, or in association with any other person either directly or indirectly, whether as an agent, employee, manager, partner or power of attorney holder, guarantor, relative or sister concern or in any other capacity such person and the person in whose name the registration certificate, if any, is taken , shall jointly and severally be liable for payment of the tax , interest or penalty or other amount due under this Act which shall be assessed, levied and recovered from all or any such person as if such person or persons are dealer under the Act. However before taking action under this Section the person concerned shall be given a reasonable opportunity of being heard.

Section 29: Assessment of Escaped Turnover:

(1) Where after a dealer is assessed under Section 25 or Section 26 for any year or part thereof, the assessing authority has reason to believe that the whole or any part of turnover of the dealer in respect of any tax period has-

(i) escaped assessment; or

(ii) been under assessed, or

(iii) been assessed at a rate lower than the rate at which it is assessable; or

(iv) been wrongly allowed any exemption or deduction therefrom; or

(v) been wrongly allowed any tax credit therein,

the assessing authority shall, serve a notice on the dealer and after giving the dealer a reasonable opportunity of being heard and making such enquiries as he considers necessary, he shall assess or re assess the turnover of the dealer and tax according to law and the provisions of this Act shall as far as may be, apply accordingly.

Provided that the tax shall be charged at the rate at which it would have

been charged had the turnover not escaped assessment or full assessment as the case may be.

Explanation 1 nothing in this Section shall be deemed to prevent the assessing authority from making an assessment to the best of its judgment.

Explanation 2 for the purposes of this Section and of Section 30,"assessing authority” means the officer who passed the earlier assessment order, if any, and includes the officer having jurisdictions for the time being to assess the dealer.

Explanation 3 Notwithstanding the issuance of notice under this sub-section, where an order of assessment or re assessment is in existence from before the issuance of such notice it shall continue to be effective as such, until varied by an order of assessment or reassessment made under this Section in pursuance of such notice.

(2) Except as otherwise provided in Section 27 or under this Section, no order of assessment or reassessment shall be made under sub-section (1) after the expiry of three years form the end of the year in respect of which or part of which the tax is assessable.

(3) Assessment or reassessment in respect of turnover escaped from assessment may be passed at any time within three years and nine months ending on 31st December after the expiry of assessment year for which assessment is to made, provided that notice under this section has been served within a period of three years and six months ending on 30th September after the expiry of the assessment year for which assessment is to be made.

(4) If the commissioner on his own or on the basis of reasons recorded by the assessing authority is satisfied that it is just and expedient so to do, he may authorise the assessing authority in that behalf, and then such assessment or reassessment may be made after the expiration of the period aforesaid but not after the expiration of six years form the end of such assessment year, notwithstanding that such assessment or reassessment may involve a change of opinion.

Section 30: Rectification of Mistakes:

(1) Any officer or authority, or the Tribunal or the High Court may, on its own motion or on the application of the dealer or any other interested person, rectify any mistake in any order passed by him or it under this Act apparent on the face of the record, with in three years from the date of the order sought to be rectified;

Provided that where an application under this sub-section has been made

with in such period of three years, it may be disposed of even beyond such period;

Provided further that no such rectification as has the effect of enhancing the assessment, penalty, fee or other dues shall be made unless a reasonable opportunity of being heard has been given to the dealer or other person likely to be affected by such enhancement.

(2) Where such rectification has the effect of enhancing the assessment, the assessing authority concerned shall serve on the dealer a revised notice of demand in the prescribed form and therefrom all the provisions of the Act and the Rules framed thereunder shall apply as if such notice had been served in the first instance.

Section 31: Power to set aside an Order of Assessment:

(1) In any case in which an order of assessment or reassessment or order of penalty is passed ex-parte, the dealer may apply to the assessing authority with in thirty days of the service of the order to set aside such order and reopen the case; and if such officer is satisfied that the applicant did not receive notice or was prevented by sufficient cause form appearing on the date fixed, he may set aside the order and re open the case for hearing;

Provided that no such application for setting aside as ex-parte assessment order shall be entertained unless it is accompanied by satisfactory proof of the payment of the amount of tax admitted by the dealer to be due.

(2) Where an assessment order under Section 24 is passed ex-parte, the dealer may apply to the assessing authority within 30 days of the service of the order , to set aside such order and if such authority is satisfied that the dealer has filed the return and deposited the tax due according to the return with in 30 days from the last day prescribed for filing such return, it may modify or set aside such order and also the demand notice, if any, issued thereunder.

Provided that where the application under this sub-section has been made

by the dealer with in the period aforesaid, it may be disposed of even beyond such period.

(3) If a dealer is granted an eligibility certificate under Section 4-A of the Uttaranchal Trade Tax Act,1948, for the period for which an order of assessment or reassessment or an order in appeal has been passed prior to the grant of eligibility certificate, such order may be set aside either on its own or on the application of the dealer, by assessing or appellate authority having jurisdiction within one year of receipt by him of the copy of the order granting such eligibility certificate and a fresh order may be passed according to law:

Provided that where the application under this sub-section has been made

by the dealer within the period aforesaid, it may be disposed of even beyond such period.

Section 32: Period of Limitation for making Assessment or Reassessment:

(1) No order of assessment under Section 24 for any tax period of an assessment year shall be made after the dealer has submitted annul return for such assessment year and where annual return has not been submitted by the dealer, assessment shall not be made after the expiry of the period prescribed or time allowed, if extended, for submission of annual return for such period.

(2) Except as otherwise provided in Section 27 or Section 29 no order of assessment or reassessment under any provisions of this Act for any assessment year shall be made after expiration of 3 years from the end of such assessment year.

(3) Assessment or reassessment order under the provisions of Section 29 may be made with in the time prescribed therein.

(4) If an order of assessment is set aside and the case is remanded for reassessment by any authority under the provisions of this Act or by a competent Court, the order of reassessment may be made within one year from the date of receipt by the assessing authority of the copy of the order remanding the case.

(5) If an order of assessment is quashed on the ground of want of jurisdiction of the assessing authority or due to improper service of any notice or due to service of improper notice or any other like ground, by any competent authority or Court, fresh order of assessment may be made by the assessing authority having jurisdiction with in one year form the date of receipt by the assessing authority whose order is so quashed, of the copy of the order of such authority of Court;

Provided that where any assessment or reassessment order made earlier

has been quashed for want of proper service of notice or for want of jurisdiction or for want of service of proper notice, fresh order of assessment or reassessment may be made by the assessing authority after serving notice properly and after affording reasonable opportunity of being heard to dealer with in the time prescribed.

(6) If an order of assessment or reassessment for any assessment year is set aside under Section 31, a fresh order of assessment or reassessment for that year may be made with in one year from the date on which such earlier order was set aside.

(7) Where the proceeding for assessment or reassessment for any assessment year remain stayed under the orders of any Court or authority, the period commencing from the date of stay order and ending with the date of receipt by the assessing authority concerned of the order vacating the stay, shall be excluded in computing the period of limitation provided in this Section:

Provided that if in so computing, the period of limitation comes to less than one year, such assessment or reassessment may be made within one year from the date of receipt by the assessing authority of the order vacating the stay.

(8) The period during which any appeal or other proceedings in respect of any other assessment or reassessment or any other matter of assessee remain pending before the High Court or the Supreme Court, involving a question of law having direct bearing on the assessment or reassessment in question, shall be excluded in computing the period of limitation provided in this Section.

(9) Where in the assessment or reassessment of a dealer for any assessment year, any assessing authority,-

(a) has included any turnover and any superior authority or Court has, in exercise of the powers law fully vested in it, held such turnover to relate to the assessment -

(i) of such dealer for any other assessment year, or

(ii) of such dealer under the Central Sale Tax Act,1956, or

(iii) of any other dealer, whether under this Act, or under the Central Sales Tax Act, 1956,

(b) has not included any turnover on the ground that it relates to assessment under the Central Sales Tax Act,1956, and any superior authority or Court has, in exercise of the powers lawfully vested in it, held such turnover to relate to the assessment of the dealer under this Act, whether for such assessment year, or any other assessment year,

then nothing contained in this Section limiting the time shall apply to assessment or reassessment whether under this Act or under the Central Sales Tax Act,1956, of such dealer or such other dealer relating to such assessment year or such other assessment year, as the case may be.

(10) Where any order passed by the assessing authority in respect of a dealer for any period is found to be erroneous or prejudicial to the interest of revenue consequent to, or in the light of any judgment or order of any Court or Tribunal which has become final, then notwithstanding any thing contained in this Act, the assessing authority may, with the permission of the Commissioner or any officer authorised by him for this purpose, proceed to reassess the tax payable by the dealer in accordance with the judgment or order, at any time within a period of three years from the date of the judgment or order.

(11) Notwithstanding any thing contained in this Section, where the State Govt. is of the opinion that due to any extra-ordinary circumstances prevalent at the time in the State or any part of it, it will be difficult to complete assessment or reassessment in any case or class of cases within the time prescribed under this Section, it may, by notification in the Gazette extend the time limit prescribed under this Section for making assessment or reassessment in such a case or class of cases.

(12) Where any dealer claims refund of any amount deposited by him as tax or any amount deducted by him as tax under provisions of sub-section (1) of Section 35 or of any amount recovered from him as tax and where no assessment has been made with in the time prescribed under this Section, notwithstanding any things contained in this Section, the assessing authority may, with the prior permission of the Commissioner in writing, make an assessment of turnover and tax beyond the time prescribed under this Section for such assessment year towards tax liability of which such amount has been deposited or deducted or recovered.

Section 33: Rounding off of Turnover and Tax etc:

(1) The amount of turnover, determined in prescribed manner shall if such amount is in the multiple of ten be rounded off to the nearest multiple of ten rupees, that is to say, a part of ten rupees which is less than five rupees shall be ignored and any other part shall be counted as ten rupees. The amount so rounded off shall be deemed to be the turnover of the assessee for the purpose of assessment of tax under this Act.

(2) The amount of tax, fee, interest, penalty or any other sum payable or the amount of refund due under the provisions of this Act shall, where such amount contains part of a rupee be rounded off to the nearest rupee, that is to say a part of rupee which is less than 50 paisa shall be ignored and any other part shall be counted as one rupee.

Section 34: Payment and Recovery of tax:

(1) Amount of tax admittedly payable shall be deposited in the prescribed manner along with the return of the respective tax period. Amount assessed as tax shall be deposited in the manner specified in and within 30 days of the service of order of assessment and notice of demand. Amount imposed by way of penalty shall be deposited in the prescribed manner and within 30 days of service of the order imposing such amount by way of penalty. Any other amount except the amount of tax admittedly payable or assessed and penalty imposed, that may be determined as payable under any provisions of this Act, shall be paid in the prescribed manner and with in the prescribed time;

Provided that where no such time has been prescribed, the period to deposit the due amount shall be deemed to be 30 days of the service of the order by which such amount has been determined.

(2) A registered dealer furnishing return under Section 23 shall pay into the Govt. treasury, in such manner and at such interval as may be prescribed, the amount of tax due from him for the period covered under the return along with the amount of penalty or interest or both payable by him under Section 23 and shall furnish a receipt from the Treasury showing the payment of such amount.

(3) A registered dealer furnishing a revised return in accordance with sub-section (9) or sub-section (10) of Section 23 which shows that a greater amount of tax is due than was paid or payable in accordance with the original return, shall furnish along with the return a receipt showing the payment of the differential amount in the manner provided in sub-section (2).

(4) The tax admittedly payable shall be deposited with in the time prescribed failing which simple interest at the rate of one and a half percent per mensem shall become due and be payable on the unpaid amount with effect from the date immediately following the last date prescribed till the date of payment of such amount;

Explanation (1)- for the purpose of this sub-section, the tax admittedly payable means the tax which is payable under this Act on the turnover of sales, or as the case may be, the turnover of purchases or of both, as disclosed in the accounts maintained by the dealer or admitted by him in any return or proceeding under this Act, whichever is greater,

Explanation (2)- “Month” shall mean thirty days and the interest payable in respect of period of less than one month shall be computed proportionately.

(5) The amount of tax assessed under this Act in excess of amount of tax already deposited along with the interest payable according to the provisions of this Act shall be deposited in the manner specified in and with in 30 days of service of notice of assessment and demand.

(6) If the tax (other than the tax admittedly payable to which sub-section (2) applies) assessed, reassessed or enhanced by any authority or Court remains unpaid for three months after expiration of the period specified in the order of assessment and demand notice simple interest at the rate of one and half percent per mensem on unpaid amount calculated from the date of such expiration shall become due and be payable:

Provided that the amount of interest under the sub-section shall be re

calculated if the amount of tax is varied on appeal or revision or by any order of a competent Court.

(7) The amount of interest payable under sub-section (2), (3), (4) and (5) shall be, without prejudice to any other liability or penalty that the dealer may incur under this Act or under any other law for the time being in force added to the amount of the tax and be also deemed for all purposes to be part of the tax.

(8) Where an order of assessment or reassessment referred to in sub-section (4) of Section 32 or an order of assessment or reassessment referred to in sub-section (6) of Section 32 has been made and tax payable is enhanced the dealer shall be liable to pay interest on such enhanced tax as if it was enhanced in the order of assessment made for the first time and for this purpose the date of service of the order of assessment and demand notice shall be deemed to be amended accordingly.

(9) Where realisation of any tax remain stayed by order of any Court or authority and such order of stay is subsequently vacated, the interest referred to in sub-section shall be payable also for any period during which such order remained in operation.

(10) Any tax or other dues payable to the State Govt. under this Act, any amount of money which a person is required to pay to the assessing authority under sub-section (14) for which he is personally liable to the assessing authority under sub-section (17) shall, not withstanding any thing contained in any other law for the time being in force and subject to any special or general order of the State Govt. be recoverable as arrears of Land Revenue, or in the prescribed manner by the assessing authority or any other officer authorised by the State Govt. in that behalf and such authority or officer shall, for the purposes of such recovery-

(i) have all the powers which a
Civil Court has under the Code of Civil Procedure, 1908 for the purpose of recovery of an amount due under a decree;

(ii) have the power to require the assessing authority or such authorised officer having jurisdiction in any other area to make such recovery if the defaulter is or has property within the area of such other assessing authority and there upon such other assessing authority shall proceed to make recovery in the prescribed manner.

(11) Notwithstanding any thing contained in sub-section (4) and (5) and notwithstanding any judgment, decree or order of any Court, Tribunal or other authority, where any notice of assessment and demand in respect of any tax or other dues under this Act, is served upon the dealer by an assessing authority and an appeal, revision or other proceeding is filed in respect of such tax or dues then -

(i) where as a result of such appeal, revision or other proceeding the amount of such tax or other dues is enhanced , the assessing authority shall serve upon the dealer a fresh notice in respect of the amount by which such tax or other dues are enhanced, and any proceeding in relation to the amount specified in the notice already served upon him before the disposal of such appeal, revision or other proceeding may be continued from the stage at which it stood immediately before such disposal ;

(ii) where as a result of such appeal, revision or other proceeding the amount of such tax or other dues is reduced-

(a) it shall not be necessary to serve upon the dealer a fresh notice but only the reduced amount shall be realised;

(b) if any recovery proceedings are pending before any

officer or authority other than the assessing authority, the assessing authority shall intimate such reduction to such officer or authority;

© any proceeding initiated on the basis of notice or notices served upon the dealer before the disposal of such appeal, revision or other proceeding, including any recovery proceeding may be continued in relation to amount so reduced from the stage at which it stood immediately before such disposal.

(iii) no fresh notice shall be necessary in any case where amount of the tax or other dues is not enhanced ( with reference to the amount assessed by the assessing authority) as a result of such appeal revision or other proceedings.

(12) In respect of any sum recoverable under this Act as arrears of Land Revenue the assessing officer may forward to the Collector under his signature specifying the sum due. Such certificate shall be conclusive evidence of the existence of the liability of this amount on the person who is liable and the Collector on receipt of the certificate shall proceed to recover from such person the amount specified therein as if it were an arrear of land revenue:

Provided that without prejudice to the powers conferred by this Section the

Collector shall, for the purpose of recovering the amount specified in the certificate shall have also all the powers which-

(i) a Collector has under the Revenue Recovery Act 1890; and

(ii) a
Civil Court has under the Code of Civil Procedure, 1908 for the purpose of recovery of an amount due under a decree.

Explanation: The expression Collector includes an Additional Collector or any

other officer authorised to exercise the powers of Collector under the law relating to land revenue for the time being in force in the State.

(13) Where any amount of tax or penalty is recoverable under this Act from the owner of a vehicle and recovery certificate has been issued the officer competent to execute the recovery certificate may take the assistance of police and other officer or officials of the State Govt. in locating such vehicle or other vehicles of the same owner. If so required by the recovery officer such other officer or officials shall be empowered to detain such vehicle. Whenever any such vehicle is detained by any officer or official he shall give the cause of detention in writing to the person in charge of the vehicle at the time of detention and shall immediately inform the officer executing the recovery certificate. Officer executing the recovery certificate shall proceed with according to law to realise arrears against such owner of vehicle.

Provided that if amount recoverable is paid after detention of vehicle, the

vehicle shall be set free.

Provided further that if at the time of detention if some goods are loaded on

it and owner of such goods is a person other than the owner of the vehicle the owner or the person in charge of the goods shall be allowed to remove such goods from such vehicle if he so desires.

(14) Notwithstanding any thing contained in any law or contract to the contrary, the assessing authority may, at any time or from time to time, by notice in writing the copy of which shall be forwarded to the dealer at his last address known to the assessing authority, require-

(i) any person form whom any amount is due or may become due to the dealer, or

(ii) any person who holds or may subsequently hold money for or on account of the dealer,

to pay to the assessing officer-

(a) forthwith upon the money becoming due or being held, or

(b) at or within the time specified in the notice not being before the money becomes due or is held,

so much of the money as is sufficient to pay the amount due from the dealer in respect of arrears of tax or other dues under this Act, or the whole of the money when it is equal to or less than that amount.

Explanation: For the purpose of this sub-section, the amount due to a dealer or money held for or on account of a dealer by any person shall be computed after taking in to account such claim if any, as may have fallen due for payment by such dealer to such person and as may be legally subsisting.

(15) The assessing authority may at any time or from time to time amend or revoke such notice.

(16) Any person making any payment incompliance with notice under sub-section (14) shall be deemed to have made the payment under the authority of the dealer and the receipt of the assessing officer shall constitute a good and sufficient discharge of the liability of such person to the dealer to the extent the amount referred to in the receipt.

(17) Any person discharging any liability to the dealer after the receipt of notice referred to in sub-section (14) shall be personally liable to the assessing authority to the extent of the liability discharged or to the extent of the amount mentioned in such notice, whichever is less.

(18) Where a person, to whom a notice under sub-section (14) is sent, proves to the satisfaction of the assessing authority that sum demanded or any part of thereof is not due by him 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 the sum demanded or any part thereof, as the case may be, to the assessing authority.

(19) Notwithstanding any thing to the contrary contained in any law for the time being in force, any tax payable under the provisions of this Act together with interest or penalty, shall be due for payment immediately when it becomes payable or assessed in the manner provided in this Act or the rules made thereunder and any such amount payable by a dealer on account of tax, penalty or interest or any amount which a person is required to pay under this Act shall be a first charge on the property of the dealer or such person.

(20) Notwithstanding any thing contained in this Act, no tax, fee, interest or penalty under this Act shall be recovered and no refund shall be allowed if the amount involved for any assessment year is less than 10 rupees.

Section 35: Recovery of Tax by way of Tax Deduction at Source:

(1) Notwithstanding anything contained in sub-section (1) of Section 22, every person responsible for making payment to any dealer (hereinafter in this Section referred to as the contractor) for discharge of any liability on account of valuable consideration payable for the transfer of property in goods (whether as goods or in any other form) in pursuance of a works contract, not being a building contract of such class or value as may be notified by the State Govt. in public interest in this behalf, shall, at the time of making such payment to the contractor, either in cash or in any other manner, deduct an amount equal to four percent of such sum towards part or, as the case may be, full satisfaction of the tax payable under this Act on account of such works contract:

Provided that the assessing authority may, if satisfied that it is expedient in the public interest so to do and for reasons to be recorded in writing, order that in any case or class of cases no such deduction shall be made or, as the case may be, such deduction shall be made at a lesser rate:

Provided further that where any deduction has been made by a contractor from the payment made to his sub-contractor in accordance with sub-section (3), the amount of such payment shall be deducted from the amount on which deduction is to be made under this sub-section.

(2) Where under an agreement of transfer of right to use any goods for any purpose (whether or not for a specified period) the lessee to whom the right to use any goods is transferred, is-

(i) a registered dealer, or

(ii) the Central Govt. or any State Govt.; or

(iii) any local authority, any corporation or undertaking constituted by or under a Central Act or a State Act; or

(iv) any Co-operative society or any other society, club, firm or other association of persons or a company, whether incorporated or not,

the person responsible for making such payment to the lessor (who is transferring the right to use any goods) for discharge of liabilities under such agreement, shall at the time of making such payment to the lessor, either in cash or by credit or any other manner, deduct an amount at the rate of two percent of such sum towards part or, as the case may be, full satisfaction of the tax payable under this Act on account of such transfer of right to use any goods.

(3) Any contractor responsible for making any payment or discharge of any liability to any sub-contractor in pursuance of a contract with the sub-contractor, for the transfer of property in goods (whether as goods or in any other form) involved in the execution, whether wholly or in part, of the work undertaken by the contractor, shall, at the time of such payment or discharge, in cash or by cheque or draft or by any other mode, deduct an amount equal to four percent of such payment or discharge, purporting to be a part of full amount of tax payable under this Act on such transfer from the bills or invoices raised by the sub-contractor as payable by the contractor:

Provided that no deduction under this sub-section shall be made on the amount

on which deduction has already been made under sub-section(1).

(4) The amount deducted under sub-section (1) or sub-section (2) or sub-section (3) shall be deposited into the Govt. Treasury by the person making such deduction before the expiry of the month following that in which deduction is made.

(5) The person making such deductions under sub-section(1) or sub-section(2) or sub-section(3) shall, at the time of payment or discharge furnish to the person from whose bills or invoices such deduction is made, a certificate is such form and manner and within such period as may be prescribed.

(6) The person responsible for making the payment to the contractor or sub-contractor shall submit such return of such payments at such intervals, within such period, and in such manner as may be prescribed, but the assessing authority may, in its discretion, for reasons to be recorded extend the date for the submission of the return by such person.

(7) Any deduction made in accordance with the provisions of this Section and credited in the Govt. Treasury shall be treated as payment of tax on behalf of the person from whose bills or invoices the deduction has been made, and credit shall be given to him for the amount so deducted on the production of the certificate referred to in sub-section (5), in the assessment made for the relevant assessment year.

(8) If any such person as is referred to in sub-section (1) or in sub-section (2) or in sub-section (3), fails to make the deduction or after deducting fails to deposit the amount so deducted as required in sub-section (4), the assessing authority may, after giving such person an opportunity of being heard, by order in writing, direct that such person shall pay, by way of penalty, a sum not exceeding twice the amount deductible under this Section but not so deducted and, if deducted, not so deposited into Govt. Treasury.

(9) Without prejudice to the provisions of sub-section (8), if any such person fails to make the deduction or, after deducting, fails to deposit the amount so deducted, he shall be liable to pay simple interest at the rate of eighteen percent per annum on the amount deductible under this Section but not so deducted and, if deducted, not so deposited from the date on which such amount was deductible to the date on which such amount is actually deposited.

(10) Where the amount has not been deposited after deduction, such amount together with interest referred to in sub-section (9) shall be a charge upon all the assets of the person concerned.

(11) Payment by way of deduction in accordance with sub-section (1) or in sub-section (2) or in sub-section (3) shall be without prejudice to any other mode of recovery of tax due under this Act from the contractor or the sub-contractor, as the case may be.

Explanation: For the purpose of this Section, “assessing authority ” means the officer having jurisdiction over the place where the place of business or residence of the person is located.

(12) Nothing contained in this Section shall prevent the assessing authority from making an assessment of tax payable by the dealer in accordance with other provisions of the Act and notwithstanding any thing contained in this Section the dealer shall be liable to pay tax according to other relevant provisions of the Act.