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CHAPTER VIII LIABILITY TO PRODUCE ACCOUNTS AND SUPPLY OF INFORMATION G. VAT ACT

 

 

CHAPTER VIII.

 

 

LIABILITY TO PRODUCE ACCOUNTS AND SUPPLY OF INFORMATION.

 

 
 

 
 
 
 

 

 

Dealer to declare the name of manager of business.

 

 

 

 

 

 
Every registered dealer shall within the period prescribed, file a declaration in the manner prescribed stating the name of the person or
persons who shall be deemed to be the manager or managers of business of such dealer, for the purposes of this Act and in the event of change of manager, the dealer shall revise the declaration within thirty days from the date of such change.
 
Dealer to declare details of bank accounts.
 
66. Every dealer, who is liable to pay tax shall send a declaration in such form, within such period and to such authority as may be prescribed, stating therein the particulars of the Bank accounts operated by him in connection with his business and shall within the period prescribed, intimate to the authority the changes in the particulars in the declaration.
 
Production and inspection of accounts and documents and search of premises.
 
67. (1) The Commissioner may, subject to such conditions as may be prescribed, require any dealer or any other person —
(a) to produce before him such books of account, registers or documents;
(b) to furnish such information relating to the stock of goods, purchases, sales, deliveries of goods by the dealers or any other information relating to his business, as may be deemed necessary, for the purposes of this Act.
(2) All books of accounts, registers and documents relating to the stock of goods, purchases, sales and deliveries of goods by any dealer; and all goods kept in any place of business or warehouse of any dealer, or at any other place for and on behalf of a dealer, shall at all reasonable time be open to inspection by the Commissioner. The Commissioner may take or cause to be taken such copies or extracts of the said books of account, registers or documents and such inventory of the goods found as appear to him necessary for the purposes of this Act.
(3) Where the Commissioner, has reason to believe that—
(a) any person to whom a notice under this Act was issued to produce or cause to be produced, any books of account or other documents
has failed to produce or cause to be produced such books of account or other documents as required by such notice; or
(b) any person to whom a notice as aforesaid has been or might be issued, will not, or would not, produce or cause to be produced any books of account or other documents which will be useful for, or relevant to, any proceeding under the earlier law or under this Act; or
(c) books of account, registers or documents of any dealer may be destroyed, mutilated, altered, falsified or any sale or purchase by that dealer have been or may be suppressed, or any goods have not been or may not be accounted for in the books of account, registers or other documents required to be maintained under this Act, with a view to evade or attempt to evade payment of tax due under the earlier law or under this Act,-
the Commissioner or any other person appointed under sub-section (2) of section 16 if so authorised by him, may,-
(i) enter and search any building or place where he has reason to suspect that the books of account and other documents or the goods or
the sale proceeds are kept;
(ii) break open the lock of any door, box, locker, safe, or other receptacle for exercising the powers conferred by sub-clause (i) where the keys thereof are not available;
(iii) seize any such books of account or other documents or any inventory of goods or any goods as appear to him necessary for the purposes of this Act;
(iv) place marks of identification on any books of account or other documents or make or cause to be made extracts or copies therefrom;
(v) make a note or any inventory of any such money or goods found as a result of such search or place marks of identification on such goods;
(vi) seal the premises including the office, shop, godown, box, locker, safe, almirah or other receptacle if the owner or the person in occupation or in-charge of such office, shop, godown, box, locker, safe, almirah or other receptacle leaves the place or is not available or fails or refuses to open it when called upon to do so, or causes or attempts to cause obstruction to the Commissioner or the authorised officer in the discharge of his duties under this section.
(4) The Commissioner may requisition the services of any police officer or any public servant, or of both to assist him for all or any of the
purposes specified in sub-section (3).
(5) Where the Commissioner seizes any books of account or other documents or any goods, he shall give the dealer or the person present on his behalf a receipt for the same and obtain acknowledgement of the receipt so given to him:
Provided that if the dealer or person from whose custody the books of account or other documents or the goods are seized refuses to give an acknowledgement, the Commissioner may leave the receipt at the premises and record the fact:
(6) Where it is not feasible to seize the accounts or other documents or the goods under sub-section (3), the Commissioner or the
authorised officer, may serve on the owner or the person who is in immediate possession or control thereof, an order that he shall not remove or part with or otherwise deal with them except with the previous permission of the Commissioner or such authorized officer.
(7) The Commissioner shall keep in his custody the books of account, registers or documents seized under sub-section (3) for such period not later than the completion of all the proceedings under this Act in respect of the years for which those books of account, registers or documents are relevant, as he considers necessary, and thereafter shall return the same to the dealer or any other person from whose custody or power they were seized:
Provided that the Commissioner may, before returning such books of account or other documents as aforesaid, place or cause to be placed such marks of identification thereon as appear to him to be necessary:
Provided further that the Commissioner may, before returning the books of account and other documents, require that the dealer or the person, as the case may be, shall give written undertaking that the books of account and other documents shall be presented whenever required by any competent authority for any proceedings under this Act.
(8) Save as otherwise provided in this section, every search or seizure made under this section shall be carried out in accordance with the
provisions of the Code of Criminal Procedure, 1973 relating to searches or seizures made under that Code.
(9) The Commissioner may, for the purposes of this Act,--
(a)require any person, including a banking company, post office or any officer thereof, to furnish information in relation to such matters or to furnish statements of accounts and affairs verified in the manner specified by him, giving information in relation to such points or matters as in his opinion will be useful for, or relevant to, any proceeding under this Act;
(b)require any person—
(i) who transports or holds in custody, for delivery to or on behalf of any dealer any goods to give any information likely to be in his possession in respect of such goods or to permit inspection thereof, as the case may be;
(ii)who maintains or has in his possession any books of account, registers or documents relating to the business of a dealer to produce such books of account, registers or documents for inspection.
(10) If any person, who transports or holds in custody for delivery to or on behalf of any dealer any goods, on being required by the Commissioner under sub-clause (i) of clause (b) of sub-section (9) so to do, fails to furnish the information likely to be in his possession in respect of such goods or fails to permit inspection thereof the Commissioner may pass an order of detention or seizure of goods in his custody or possession in respect of which the default is committed.
(11)The order of detention or seizure passed under sub-section (10) shall remain in force so long as the person concerned does not furnish information required under sub-clause (i) of clause (b) of sub-section (9) or make proper arrangement for inspection of the goods under the said subsection.
(12) If any person, who transports or holds in custody for delivery to or on behalf of any dealer any goods, on being required by the Commissioner under sub-clause (i) of clause (b) of sub-section (9) so to do, fails to give any information likely to be in his possession in respect of such goods or fails to permit inspection thereof without prejudice to any other action which may be taken against such person, a presumption may be raised that the goods in respect of which he has failed to furnish information or permit inspection, were meant for sale by him and he is a dealer liable to pay tax under this Act and the provisions of this Act shall apply accordingly.
(13) If any person commits default under clause (a) or sub-clause (ii) of clause (b) of sub-section (9), the Commissioner may, without prejudice to any other action which may be taken against such person under any other provision of this Act, direct, after giving an opportunity of being heard to such person that such person shall pay by way of penalty a sum not exceeding rupees fifty thousand.
(14) If the Commissioner is satisfied that any person on being required by him so to do, has failed to furnish the information in respect of the goods in his custody for delivery to or on behalf of any dealer or to permit inspection thereof under sub-clause (i) of clause (b) of sub-section (9), the Commissioner may, by order in writing and after giving opportunity of being heard to such person, impose by way of penalty a sum not exceeding the amount of tax leviable under this Act on the goods in respect of which the default was committed.
(15) Where an order of detention or seizure of goods is made under the provisions of this section, the Commissioner or the officer authorised in this behalf may release the goods on such person exercising the option of paying by way of penalty such sum as may be directed, not exceeding two and a half times the amount of tax leviable on such goods under this Act.
(16) Where any premises including the office, shop, godown, box, locker, safe or other receptacle have been sealed under sub-section (3), the Commissioner, on an application made by the owner or the person in occupation or in-charge of such shop, godown, box, locker, safe, or other receptacle, may order de-sealing thereof on such terms and conditions, including furnishing of security for such sum in such form and manners as may be prescribed.
(17) Where an order of detention or seizure of goods is made under this section and no claim is lodged by any person with respect to such goods within a period of three months from the date of such order, the Commissioner may, by order in writing, direct the auction of such goods:
Provided that if the goods, in respect of which an order of detention or seizure is made, are of a perishable nature or subject to speedy and natural decay or when the expenses of keeping them in custody are likely to exceed their value, the same may be ordered to be auctioned as soon as it is practicable soon after an order of detention or seizure of such goods is made and the amount so realised by the auction of goods shall be remitted in the Government treasury immediately.
(18) Where an order imposing penalty is passed under sub-section (14) or an option of paying penalty is exercised under sub-section (15) and the person liable fails to pay the penalty within the prescribed period, the goods detained or seized may be sold by public auction and the sale proceeds deposited immediately in Government treasury.
(19) Auction of goods to be made under sub-section (17) or subsection (18) shall be carried out in the manner as may be prescribed.
(20) Any person entitled to the sale proceeds of goods auctioned under the provisions of this section shall, on application made to the
Commissioner and upon sufficient proof, be paid the sale proceeds of the goods auctioned, after deducting therefrom the expenses of the sales and other incidental charges and the amount of tax, interest and penalty leviable under this Act.
 
Inspection of goods in transit, etc.
 
68. (1) If the State Government considers that with a view to preventing evasion of tax in any place or places in the State, it is necessary to so do; it may, by notification in the Official Gazette, direct that such number of checkposts shall be set up or such number of barriers shall be erected at such places as may be specified in the notification,
(2) At every check-post or barrier set up or erected under sub-section (1), the driver or any other person in-charge of any vehicle, boat or animal shall stop the same, and keep it stationary so long as may reasonably be necessary, and allow the officer-in-charge of the check-post or barrier to examine the contents in the vehicle or boat or on the animal and inspect all records relating to the goods carried in the vehicle or boat or on the animal which are in the possession of such driver or other person in-charge who shall, if so required, give his name and address and the names and addresses of the owner of the vehicle, boat or animal as well as of the consignor and consignee of such goods; and where any of the consignors or consignee is a dealer registered under this Act or the Central Sales Tax Act,
1956 or relevant Act in any other State, the driver or any other person incharge of the vehicle, boat or animal shall also give the number and place of issue of the certificate of registration, if any, of such dealer.
(3) The driver or other person in-charge of a vehicle, boat or animal carrying goods shall –
(a) carry with him a log book, a bill of sale or delivery note and such other documents relating to the goods carried in the vehicle or boat or on the animal and containing such particulars as may be prescribed and the driver or person in charge of a transport vehicle shall, in addition, carry a goods vehicle record and a trip sheet;
(b) produce the same when requested to do so by the office-in-charge of the check-post or barrier;
(c) give to the officer-in-charge of the check-post or barrier a declaration relating to particulars of the goods carried in the vehicle or boat or on the animal in such form as may be prescribed and keep one copy of declaration with him.
(4) If the officer-in-charge of the check-post or barrier is of the opinion that –
(i) goods under transport are not covered by goods vehicle record, trip-sheet or log book, or
(ii) goods under transport are not in accordance with the documents prescribed under clause (a) of sub-section (3), or
(iii) a declaration relating to particulars of goods as made under clause (c) of sub-section (3) is false, he may, after recording the reasons, seize such goods and vehicle and give receipt thereof to the person from whose possession or control, the goods or vehicles are seized.
(5) (a) The officer-in-charge of the check-posts or barrier may, after giving the owner, driver or person-in-charge of goods, a reasonable
opportunity of being heard and after holding such further inquiry, as he deems fit, impose on him penalty, in addition to tax payable under this Act, not exceeding one and one-half times of the tax for possession of goods or vehicles so seized.
(b) The officer-in-charge of the check-post or a barrier may release any of the goods, vehicle or documents so seized under sub-section (4) on payment of tax, interest and penalty or on furnishing such security in such form as may be prescribed.
(6) The officer-in-charge of the check post or barrier may, during inspection and verification of goods under transport including the documents and records relating thereto, direct the carrier not to part with the goods including re-transporting or re-booking until verification of goods, records and documents is done or inquiry, if any, is completed.
Explanation.-- In this section,-
(a) “goods vehicle record” means the documents required to be carried by the dealer of a transport vehicle under the Motor Vehicle Act, 1988 or the rules made thereunder;
(b) “log book” means a register, statement or other record containing particulars of the goods under transport;
(c) “trip sheet” means a sheet or other document containing particulars relating to the trip-wise use of a transport vehicle, required to be carried by the driver under the Act referred to in clause (a);
(d) “goods under transport” means goods which have been handed over to a carrier and complete delivery thereof has not been taken from such carrier;
(e) “carrier” means any person or agency who undertakes to carry or transport goods from one place to another.
 
Transit pass for transit of goods by road through the State.
 
69. (1) Where a vehicle, boat or animal carrying goods coming from any place outside the State is bound for any other place outside the State, the driver or any other person in-charge of such vehicle, boat or animal shall obtain in the prescribed manner a transit pass for such vehicle, boat or animal from the officer-in-charge of the first check-post or barrier after his entry into the State and deliver the same to the officer-in-charge of the last check-posts or barrier before his exit from the State.
(2) If the driver or person-in-charge of such vehicle, boat or animal fails to deliver such transit pass, or goods in vehicle, boat or animal are not found in accordance with the transit pass, at the place of exit from State, it shall be presumed that goods carried thereby are sold within the State and he 59 of 1988. shall be liable to pay tax and penalty not exceeding one and one-half times the amount of tax as may be determined, after giving a reasonable opportunity of being heard, on such sale in accordance with provisions of this Act.
 
Furnishing of information by owners of cold storage, warehouses, godowns, etc.
 
70. (1)Notwithstanding anything to the contrary contained in any law for the time being in force every owner or lessee of a cold storage, warehouse, godown or any such place, who stores therein taxable goods for hire or reward shall maintain or cause to be maintained a correct and complete account indicating the full particulars of the person whose goods are stored in such places and the quantity, value and date of delivery of such goods.
(2) Such accounts shall, on demand, be produced before the Commissioner or any officer authorised in this behalf who may take or cause to be taken such extracts therefrom or require such extracts to be furnished as he may
consider necessary.
(3) If any owner or lessee of a cold storage, warehouse, godown or any other such place, who stores goods for hire or reward, contravenes any of the provisions of sub-section (1) or sub-section (2) in a manner likely to lead to evasion of any tax payable under this Act, the Commissioner may, without prejudice to any other action which may be taken against such owner or lessee under any other provision of this Act direct, after giving an opportunity of being heard, that such owner or lessee shall pay by way of penalty not exceeding the amount of tax leviable on the goods in respect of which default is committed under sub-section (1) or (2).
 
Power to collect statistics.
 
71. (1) If the Government considers that for the purposes of better administration of this Act, it is necessary so to do, it may by notification in the Official Gazette, direct that statistics be collected relating to any matter dealt with, by or under this Act.
(2) Upon such direction being made, the Commissioner may, by notice in any newspaper or in such other manner as he deems fit to bring to the notice of dealers, call upon any class of dealers to furnish such information or statements as may be stated in such notice relating to any matter in respect of which statistics are to be collected. The form in which, the persons to whom or, the authorities to which, such information or returns should be furnished and the intervals at which such information or returns should be furnished, shall be such as may be prescribed.
(3) Without prejudice to the generality of the provisions of this Act, the State Government may by rules provide that every registered dealer or any class of registered dealer shall furnish such statements as may be prescribed.
 
Special powers for reconstitution of records in  certain circumstances.
 
72. (1) If the Commissioner is satisfied that any records pertaining to a dealer have been destroyed as a result of fire or any natural or other calamity or event, he may by notice in writing, require the dealer to appear before him on a date and at such place specified in the notice, or to produce before him any accounts or registers or documents or copies thereof or to furnish fresh returns under this Act or arlier law for such period, by such dates and to such authority as may be specified in the notice (being returns for a period for which the dealer has not yet been assessed), or to furnish true copies of or extracts from any documents already submitted to the Commissioner, on or before the date specified in the notice, or to furnish any other information relating to the business of the dealer as may be specified in the notice, being information which the Commissioner considers necessary for facilitating the work of assessment or reassessment or the collection of the tax from such dealer under this Act or under earlier law.
(2) Without prejudice to the generality of the powers conferred by subsection
(1), the Commissioner may require the dealer to produce for inspection to or furnish copies of or extracts from all or any of the following,
namely:-
(a) application for the issue of a certificate of registration made under this Act;
(b) certificate of registration granted to the dealer;
(c) returns furnished by the dealer;
(d) proof of payment of tax and penalty by the dealer;
(e) a certified copy of the assessment order given to the dealer;
(f) any notice of demand served on the dealer;
(g) specimen signature furnished by a dealer;
(h) any nomination made by a dealer.
(3) For securing compliance with any notice given under this section, the Commissioner shall have all the powers specified in section 67.
(4) Where any person is prosecuted for failure to comply with any requirement made of him under this section, the burden of proving that he had reasonable excuse for such failure shall be on him.

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