[ 311 ]

GOVERNMENT OF PUDUCHERRY

LEGISLATIVE ASSEMBLY SECRETARIAT

No. 104-1/2017-LA(Legn).

Puducherry, the 19th May 2017.

Under rule 140 of Rules of Procedure and Conduct of Business

of the Puducherry Legislative Assembly, the following Bills, viz.,

The Puducherry Goods and Services Tax Bill, 2017

(Bill No. 10 of 2017);

which was introduced in the Legislative Assembly on May 17th 2017 is

published for the general information.

A. VINCENT RAYAR,

Secretary.

Registered with the Registrar

of Newspapers for India

under No. 10410



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The Gazette of Puducherry

PART - II

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19 {

No. 29

Poudouchéry

Vendredi

Mai

2017

No.

Puducherry

Friday

19th

May

2017

( 29 Vaisakha 1939 )

312

LA GAZETTE DE L'ETAT

[PART–II

THE PUDUCHERRY GOODS AND SERVICES TAX

BILL, 2017

(Bill No. 10 of 2017)

BILL

to make a provision for levy and collection of tax on intra-

State supply of goods or services or both by the Union

territory of Puducherry and the matters connected

therewith or incidental thereto.

BE it enacted by the Legislative Assembly of

Puducherry in the Sixty-eighth year of the Republic of India

as follows:-

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Puducherry Goods

and Services Tax Act, 2017.

(2) It extends to the whole of the Union territory

of Puducherry.

(3) It shall come into force on such date as the

State Government may, by notification in the Official

Gazette, appoint:

Provided that different dates may be appointed for

different provisions of this Act and any reference in any

such provision to the commencement of this Act shall be

construed as a reference to the coming into force of that

provision.

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

(1) "actionable claim" shall have the same meaning

as assigned to it in section 3 of the Transfer of

Property Act, 1882;

Short title,

extent and

commencement.

Definitions.

Central

Act 4

of 1882.

313

PART–II]

LA GAZETTE DE L'ETAT

(2) "address of delivery" means the address of

the recipient of goods or services or both indicated

on the tax invoice issued by a registered person

for delivery of such goods or services or both;

(3) "address on record" means the address of

the recipient as available in the records of the

supplier;

(4) "adjudicating authority" means any

authority, appointed or authorised to pass any

order or decision under this Act, but, does not

include the Commissioner, Revisional Authority,

the Authority for Advance Ruling, the Appellate

Authority for Advance Ruling, the Appellate

Authority and the Appellate Tribunal;

(5) "agent" means a person, including a factor,

broker, commission agent, arhatia, del credere

agent, an auctioneer or any other mercantile

agent, by whatever name called, who carries on

the business of supply or receipt of goods or

services or both on behalf of another;

(6) "aggregate turnover" means the aggregate

value of all taxable supplies (excluding the value

of inward supplies on which tax is payable by a

person on reverse charge basis), exempt

supplies, exports of goods or services or both

and inter-State supplies of persons having the

same Permanent Account Number, to be

computed on all India basis but, excludes central

tax, State tax, Union Territory tax, integrated tax

and cess;

(7) "agriculturist" means an individual or a

Hindu

Undivided

Family

who

undertakes

cultivation of land-

(a) by own labour, or

(b) by the labour of family, or

314

LA GAZETTE DE L'ETAT

[PART–II

or kind or by hired labour under personal

supervision or the personal supervision of any

member of the family;

(8) "Appellate Authority" means an authority

appointed or authorised to hear appeals as

referred to in section 107;

(9) "Appellate Tribunal" means the Goods and

Services Tax Appellate Tribunal referred to in

section 109;

(10) "appointed day" means the date on which

the provisions of this Act shall come into force;

(11) "assessment" means determination of tax

liability under this Act and includes self-

assessment, re-assessment, provisional assessment,

summary assessment and best judgement assessment;

(12) "associated enterprises" shall have the

same meaning as assigned to it in section 92A of

the Income-tax Act, 1961;

(13) "audit" means the examination of records,

returns and other documents maintained or

furnished by the registered person under this Act

or the rules made thereunder or under any other

law for the time being in force to verify the

correctness of turnover declared, taxes paid,

refund claimed and input tax credit availed, and

to assess his compliance with the provisions of

this Act or the rules made thereunder;

(14) "authorised bank" shall mean a bank or a

branch of a bank authorised by the Central

Government to collect the tax or any other amount

payable under this Act;

(15) "authorised representative" means the

representative as referred to under section 116;

Central

Act 43

of 1961.

315

PART–II]

LA GAZETTE DE L'ETAT

(16) "Board" means the Central Board of

Excise and Customs constituted under the Central

Boards of Revenue Act, 1963;

(17) "business" includes—

(a) any trade, commerce, manufacture,

profession, vocation, adventure, wager or any

other similar activity, whether or not it is for

a pecuniary benefit;

(b) any activity or transaction in

connection with or incidental or ancillary to

sub-clause (a);

nature of sub-clause (a), whether or not there

is volume, frequency, continuity or regularity

of such transaction;

(d) supply or acquisition of goods

including capital goods and services in connection

with commencement or closure of business;

(e) provision by a club, association,

society, or any such body (for a subscription

or any other consideration) of the facilities or

benefits to its members;

(f) admission, for a consideration, of

persons to any premises;

(g) services supplied by a person as the

holder of an office which has been accepted

by him in the course or furtherance of his

trade, profession or vocation;

(h) services provided by a race club by way

of totalisator or a licence to book maker in such

club; and

(i) any activity or transaction undertaken

by the Central Government, a State Government

or any local authority in which they are

engaged as public authorities;

Central

Act 54

of 1963.

316

LA GAZETTE DE L'ETAT

[PART–II

(18) "business vertical" means a distinguishable

component of an enterprise that is engaged in the

supply of individual goods or services or a group

of related goods or services which is subject to

risks and returns that are different from those of

the other business verticals.

Explanation.—For the purposes of this clause,

factors that should be considered in determining

whether goods or services are related include—

(a) the nature of the goods or services;

(b) the

nature

the

production

processes;

goods or services;

(d) the methods used to distribute the

goods or supply of services; and

(e) the nature of regulatory environment

(wherever applicable), including banking,

insurance or public utilities;

(19) "capital goods" means goods, the value of

which is capitalised in the books of account of

the person claiming the input tax credit and which

are used or intended to be used in the course or

furtherance of business;

(20) "casual taxable person" means a person

who occasionally undertakes transactions involving

supply of goods or services or both in the course

or furtherance of business, whether as principal,

agent or in any other capacity, in the taxable

territory where he has no fixed place of business;

(21) "central tax" means the central goods and

services tax levied under section 9 of the Central

Goods and Services Tax Act;

(22) "cess" shall have the same meaning as

assigned to it in the Goods and Services Tax

(Compensation to States) Act;

317

PART–II]

LA GAZETTE DE L'ETAT

(23) "chartered accountant" means a chartered

accountant as defined in clause (b) of sub-section (1)

of section 2 of the Chartered Accountants Act, 1949;

(24) "Commissioner" means the Commissioner

of State tax appointed under section 3 and

includes the Principal Chief Commissioner or

Chief Commissioner of State tax appointed under

section 3;

(25) "Commissioner in the Board" means the

Commissioner referred to in section 168 of the

Central Goods and Services Tax Act;

(26) "common portal" means the common

goods and services tax electronic portal referred

to in section 146;

(27) "common working days" shall mean such

days in succession which are not declared as

gazetted holidays by the Central Government or

the Government of Puducherry;

(28) "company secretary" means a company

secretary as defined in clause (c) of sub-section (1)

of section 2 of the Company Secretaries Act, 1980;

(29) "competent

authority"

means

such

authority as may be notified by the Government;

(30) "composite supply" means a supply made

by a taxable person to a recipient consisting of

two or more taxable supplies of goods or services

or both, or any combination thereof, which are

naturally bundled and supplied in conjunction

with each other in the ordinary course of business,

one of which is a principal supply;

Central

Act 38

of 1949.

Central

Act 56

of 1980.

318

LA GAZETTE DE L'ETAT

[PART–II

Illustration: Where goods are packed and

transported with insurance, the supply of goods,

packing materials, transport and insurance is a

composite supply and supply of goods is a

principal supply.

(31) "consideration" in relation to the supply

of goods or services or both includes—

(a) any payment made or to be made,

whether in money or otherwise, in respect of,

in response to, or for the inducement of, the

supply of goods or services or both, whether

by the recipient or by any other person but

shall not include any subsidy given by the

Central Government or a State Government;

(b) the monetary value of any act or

forbearance, in respect of, in response to, or

for the inducement of, the supply of goods or

services or both, whether by the recipient or

by any other person but shall not include any

subsidy given by the Central Government or a

State Government:

Provided that a deposit given in respect of

the supply of goods or services or both shall

not be considered as payment made for such

supply unless the supplier applies such deposit

as consideration for the said supply;

(32) "continuous supply of goods" means

a supply of goods which is provided, or agreed

to be provided, continuously or on recurrent

basis, under a contract, whether or not by means

of a wire, cable, pipeline or other conduit, and

for which the supplier invoices the recipient on

a regular or periodic basis and includes supply of

such goods as the Government may, subject to

such conditions, as it may, by notification,

specify;

319

PART–II]

LA GAZETTE DE L'ETAT

(33) "continuous supply of services" means a

supply of services which is provided, or agreed

to be provided, continuously or on recurrent basis,

under a contract, for a period exceeding three

months with periodic payment obligations and

includes supply of such services as the

Government may, subject to such conditions, as

it may, by notification, specify;

(34) "conveyance" includes a vessel, an aircraft

and a vehicle;

(35) "cost accountant" means a cost accountant

as defined in clause (c) of sub-section (1) of

section 2 of the Cost and Works Accountants

Act, 1959;

(36) "Council" means the Goods and Services

Tax Council established under article 279A of the

Constitution;

(37) "credit note" means a document issued by

a registered person under sub-section (1) of

section 34;

(38) "debit note" means a document issued by

a registered person under sub-section (3) of

section 34;

(39) "deemed exports" means such supplies of

goods as may be notified under section 147;

(40) "designated authority" means such

authority as may be notified by the Commissioner;

(41) "document" includes written or printed

record of any sort and electronic record as defined

in clause (t) of

section

of the Information

Technology Act, 2000;

Central

Act 21

of 2000.

Central

Act 23

of 1959.

320

LA GAZETTE DE L'ETAT

[PART–II

(42) "drawback" in relation to any goods

manufactured in India and exported, means the

rebate of duty, tax or cess chargeable on any

imported inputs or on any domestic inputs or

input services used in the manufacture of such

goods;

(43) "electronic cash ledger" means the

electronic cash ledger referred to in sub-section

(1) of section 49;

(44) "electronic commerce" means the supply

of goods or services or both, including digital

products over digital or electronic network;

(45) "electronic commerce operator" means

any person who owns, operates or manages digital

or electronic facility or platform for electronic

commerce;

(46) "electronic credit ledger" means the

electronic credit ledger referred to in sub-

section (2) of section 49;

(47) "exempt supply" means supply of any

goods or services or both which attracts nil rate

of tax or which may be wholly exempt from tax

under section 11, or under section 6 of the

Integrated Goods and Services Tax Act, and

includes non-taxable supply;

(48) "existing law" means any law, notification,

order, rule or regulation relating to levy and

collection of duty or tax on goods or services or

both passed or made before the commencement

of this Act by the Legislature or any Authority or

person having the power to make such law,

notification, order, rule or regulation;

(49) "family" means,-

(i) the spouse and children of the

person, and

321

PART–II]

LA GAZETTE DE L'ETAT

(ii) the parents, grand-parents, brothers

and sisters of the person if they are wholly or

mainly dependent on the said person;

(50) "fixed establishment" means a place

(other than the registered place of business)

which is characterised by a sufficient degree of

permanence and suitable structure in terms of

human and technical resources to supply

services, or to receive and use services for its

own needs;

(51) "Fund" means the Consumer Welfare Fund

established under section 57;

(52) "goods'' means every kind of movable

property other than money and securities but

includes actionable claim, growing crops, grass

and things attached to or forming part of the land

which are agreed to be severed before supply or

under a contract of supply;

(53) "Government" means the Government of

the Union territory of Puducherry;

(54) "Goods and Services Tax (Compensation

to States) Act" means the Goods and Services Tax

(Compensation to States) Act, 2017;

(55) "goods and services tax practitioner"

means any person who has been approved under

section 48 to act as such practitioner;

(56) "India" means the territory of India as

referred to in article 1 of the Constitution, its

territorial waters, seabed and sub-soil underlying

such

waters,

continental

shelf,

exclusive

economic zone or any other maritime zone as

referred to in the Territorial Waters, Continental

Shelf, Exclusive Economic Zone and other

Maritime Zones Act, 1976, and the air space

above its territory and territorial waters;

Central

Act 15

of 2017.

Central

Act 80

of 1976.

322

LA GAZETTE DE L'ETAT

[PART–II

(57) "Integrated Goods and Services Tax Act"

means the Integrated Goods and Services Tax

Act, 2017;

(58) "integrated tax" means the integrated

goods and services tax levied under the Integrated

Goods and Services Tax Act;

(59) "input" means any goods other than capital

goods used or intended to be used by a supplier

in the course or furtherance of business;

(60) "input service" means any service used or

intended to be used by a supplier in the course

or furtherance of business;

(61) "Input Service Distributor" means an office

of the supplier of goods or services or both which

receives tax invoices issued under section 31

towards the receipt of input services and issues a

prescribed document for the purposes of

distributing the credit of central tax, State tax,

integrated tax or Union territory tax paid on the

said services to a supplier of taxable goods or

services or both having the same Permanent

Account Number as that of the said office;

(62) "input tax" in relation to a registered

person, means the central tax, State tax, integrated

tax or Union territory tax charged on any supply

of goods or services or both made to him and

includes—

(a) the integrated goods and services tax

charged on import of goods;

(b) the tax payable under the provisions

of sub-sections (3) and (4) of section 9;

of sub-sections (3) and (4) of section 5 of the

Integrated Goods and Services Tax Act; or

Central

Act 13

of 2017.

323

PART–II]

LA GAZETTE DE L'ETAT

(d) the tax payable under the provisions

of sub-sections (3) and (4) of section 9 of the

Central Goods and Services Tax Act,

but does not include the tax paid under the

composition levy;

(63) "input tax credit" means the credit of input

tax;

(64) "intra-State supply of goods" shall have

the same meaning as assigned to it in section 8

of the Integrated Goods and Services Tax Act;

(65) "intra-State supply of services" shall have

the same meaning as assigned to it in section 8

of the Integrated Goods and Services Tax Act;

(66) "invoice" or "tax invoice" means the tax

invoice referred to in section 31;

(67) "inward supply" in relation to a person,

shall mean receipt of goods or services or both

whether by purchase, acquisition or any other

means, with or without consideration;

(68) "job work" means any treatment or

process undertaken by a person on goods

belonging to another registered person and the

expression "job worker" shall be construed

accordingly;

(69) "local authority" means—

(a) a "Panchayat" as defined in clause (d)

of article 243 of the Constitution;

(b) a "Municipality" as defined in clause

(e) of article 243P of the Constitution;

Parishad, a District Board, and any other

authority legally entitled to, or entrusted by

the

Central

Government

any

State

Government with the control or management

of a municipal or local fund;

324

LA GAZETTE DE L'ETAT

[PART–II

(d) a Cantonment Board as defined in

section 3 of the Cantonments Act, 2006;

(e) a Regional Council or a District

Council constituted under the Sixth Schedule

to the Constitution;

(f) a Development Board constituted

under article 371 of the Constitution; or

(g) a Regional Council constituted under

article 371A of the Constitution;

(70) "location of the recipient of services"

means,-

(a) where a supply is received at a place

of business for which the registration has been

obtained, the location of such place of

business;

(b) where a supply is received at a place

other than the place of business for which

registration has been obtained (a fixed

establishment elsewhere), the location of such

fixed establishment;

than one establishment, whether the place of

business or fixed establishment, the location

of the establishment most directly concerned

with the receipt of the supply; and

(d) in absence of such places, the

location of the usual place of residence of the

recipient;

(71) "location of the supplier of services"

means,-

(a) where a supply is made from a place

of business for which the registration has been

obtained, the location of such place of

business;

Central

Act 41

of 2006.

325

PART–II]

LA GAZETTE DE L'ETAT

(b) where a supply is made from a place

other than the place of business for which

registration has been obtained (a fixed

establishment elsewhere), the location of such

fixed establishment;

one establishment, whether the place of business or

fixed

establishment,

the

location

the

establishment most directly concerned with the

provisions of the supply; and

(d) in absence of such places, the

location of the usual place of residence of the

supplier;

(72) "manufacture" means processing of raw

material or inputs in any manner that results in

emergence of a new product having a distinct

name,

character

and

use

and

the

term

"manufacturer" shall be construed accordingly;

(73) "market value" shall mean the full amount

which a recipient of a supply is required to pay

in order to obtain the goods or services or both

of like kind and quality at or about the same time

and at the same commercial level where the

recipient and the supplier are not related;

(74) "mixed supply" means two or more

individual supplies of goods or services, or any

combination thereof, made in conjunction with

each other by a taxable person for a single price

where such supply does not constitute a composite

supply.

Illustration: A supply of a package consisting

of canned foods, sweets, chocolates, cakes, dry

fruits, aerated drinks and fruit juices when

supplied for a single price is a mixed supply.

Each of these items can be supplied separately

and is not dependent on any other. It shall not be

a mixed supply if these items are supplied

separately;

326

LA GAZETTE DE L'ETAT

[PART–II

(75) "money" means the Indian legal tender or

any foreign currency, cheque, promissory note,

bill of exchange, letter of credit, draft, pay order,

traveller cheque, money order, postal or electronic

remittance or any other instrument recognized by

the Reserve Bank of India when used as a

consideration to settle an obligation or exchange

with Indian legal tender of another denomination

but shall not include any currency that is held for

its numismatic value;

(76) "motor vehicle" shall have the same

meaning as assigned to it in clause (28) of

section 2 of the Motor Vehicles Act, 1988;

(77) "non-resident taxable person" means any

person who occasionally undertakes transactions

involving supply of goods or services or both,

whether as principal or agent or in any other

capacity, but who has no fixed place of business

or residence in India;

(78) "non-taxable supply'' means a supply of

goods or services or both which is not leviable

to tax under this Act or under the Integrated

Goods and Services Tax Act;

(79) "non-taxable territory" means the territory

which is outside the taxable territory;

(80) "notification" means a notification

published in the Official Gazette and the

expressions 'notify' and 'notified' shall be

construed accordingly;

(81) "other territory" includes territories other

than those comprising in a State and those referred

to in sub-clauses (a) to (e) of clause (114);

(82) "output tax" in relation to a taxable

person, means the tax chargeable under this Act

on taxable supply of goods or services or both

made by him or by his agent but excludes tax

payable by him on reverse charge basis;

Central

Act 59

of 1988.

327

PART–II]

LA GAZETTE DE L'ETAT

(83) "outward supply" in relation to a taxable

person, means supply of goods or services or

both, whether by sale, transfer, barter, exchange,

licence, rental, lease or disposal or any other

mode, made or agreed to be made by such person

in the course or furtherance of business;

(84) "person" includes—

(a) an individual;

(b) a Hindu Undivided Family;

(d) a firm;

(e) a Limited Liability Partnership;

(f) an association of persons or a body of

individuals, whether incorporated or not, in

India or outside India;

(g) any corporation established by or under

any Central Act, State Act or Provincial Act or

a Government company as defined in clause

(45) of section 2 of the Companies Act, 2013;

(h) any body corporate incorporated by or

under the laws of a country outside India;

(i) a co-operative society registered under

any law relating to co-operative societies;

(j) a local authority;

(k)

Central

Government

State

Government;

(l) society as defined under the Societies

Registration Act, 1860;

(m) trust; and

(n) every artificial juridical person, not falling

within any of the above;

Central

Act 18

of 2013.

Central

Act 21

of 1860.

328

LA GAZETTE DE L'ETAT

[PART–II

(85) "place of business" includes—

(a) a place from where the business is

ordinarily

carried

on,

and

includes

warehouse, a godown or any other place where

a taxable person stores his goods, supplies or

receives goods or services or both; or

(b) a place where a taxable person

maintains his books of account; or

engaged in business through an agent, by

whatever name called;

(86) "place of supply" means the place of

supply as referred to in Chapter V of the

Integrated Goods and Services Tax Act;

(87) "prescribed'' means prescribed by rules

made under this Act on the recommendations of

the Council;

(88) "principal" means a person on whose

behalf an agent carries on the business of supply

or receipt of goods or services or both;

(89) "principal place of business" means the

place of business specified as the principal place

of business in the certificate of registration;

(90) "principal supply" means the supply of

goods

services

which

constitutes

the

predominant element of a composite supply and

to which any other supply forming part of that

composite supply is ancillary;

(91) "proper officer" in relation to any

function to be performed under this Act, means

the Commissioner or the officer of the State tax

who

assigned

that

function

the

Commissioner;

(92) "quarter" shall mean a period comprising

three consecutive calendar months, ending on the

last day of March, June, September and December

of a calendar year;

329

PART–II]

LA GAZETTE DE L'ETAT

(93) "recipient" of supply of goods or services

or both, means—

(a) where a consideration is payable for the

supply of goods or services or both, the

person who is liable to pay that consideration;

(b) where no consideration is payable for

the supply of goods, the person to whom the

goods are delivered or made available, or to

whom possession or use of the goods is given

or made available; and

the supply of a service, the person to whom the

service is rendered,

and any reference to a person to whom a

supply is made shall be construed as a

reference to the recipient of the supply and

shall include an agent acting as such on behalf

of the recipient in relation to the goods or

services or both supplied;

(94) "registered person" means a person who

is registered under section 25 but does not

include a person having a Unique Identity

Number.

(95) "regulations" means the regulations made

by the Government under this Act on the

recommendations of the Council;

(96) "removal'' in relation to goods, means-

(a) despatch of the goods for delivery by the

supplier thereof or by any other person acting

on behalf of such supplier; or

(b) collection of the goods by the recipient

thereof or by any other person acting on

behalf of such recipient;

(97) "return" means any return prescribed or

otherwise required to be furnished by or under

this Act or the rules made thereunder;

330

LA GAZETTE DE L'ETAT

[PART–II

(98) "reverse charge'' means the liability to pay

tax by the recipient of supply of goods or services

or both instead of the supplier of such goods or

services or both under sub-section (3)

or sub-

section (4) of section 9, or under sub-section

(3) or sub-section (4) of section 5 of the Integrated

Goods and Services Tax Act;

(99) "Revisional Authority" means an authority

appointed or authorised for revision of decision

or orders as referred to in section 108;

(100) "Schedule" means a Schedule appended

to this Act;

(101) "securities" shall have the same meaning

as assigned to it in clause (h) of section 2 of the

Securities Contracts (Regulation) Act, 1956;

(102) "services" means anything other than

goods, money and securities but includes

activities relating to the use of money or its

conversion by cash or by any other mode, from

one form, currency or denomination, to another

form, currency or denomination for which a

separate consideration is charged;

(103) "State" means the Union territory of

Puducherry;

(104) "State tax" means the tax levied under

this Act;

(105) "supplier" in relation to any goods or

services or both, shall mean the person supplying

the said goods or services or both and shall

include an agent acting as such on behalf of such

supplier in relation to the goods or services or

both supplied;

Central

Act 42

of 1956.

331

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LA GAZETTE DE L'ETAT

(106) "tax period'' means the period for which

the return is required to be furnished;

(107) "taxable person" means a person who is

registered or liable to be registered under section

22 or section 24;

(108) "taxable supply'' means a supply of

goods or services or both which is leviable to tax

under this Act;

(109) "taxable territory'' means the territory to

which the provisions of this Act apply;

(110) "telecommunication service" means

service of any description (including electronic

mail, voice mail, data services, audio text

services, video text services, radio paging and

cellular mobile telephone services) which is

made available to users by means of any

transmission or reception of signs, signals,

writing, images and sounds or intelligence of any

nature,

wire,

radio,

visual

other

electromagnetic means;

(111) "the Central Goods and Services Tax Act"

means the Central Goods and Services Tax Act,

2017;

(112) "turnover in State" or "turnover in Union

territory" means the aggregate value of all taxable

supplies (excluding the value of inward supplies

on which tax is payable by a person on reverse

charge basis) and exempt supplies made within a

State or Union territory by a taxable person,

exports of goods or services or both and inter-

State supplies of goods or services or both made

from the State or Union territory by the said

taxable person but excludes central tax, State tax,

Union territory tax, integrated tax and cess;

Central

Act 12

of 2017.

332

LA GAZETTE DE L'ETAT

[PART–II

(113) "usual place of residence" means—

(a) in case of an individual, the place

where he ordinarily resides;

(b) in other cases, the place where the

person is incorporated or otherwise legally

constituted;

(114) "Union territory" means the territory of,-

(a) the Andaman and Nicobar Islands;

(b) Lakshadweep;

(d) Daman and Diu;

(e) Chandigarh; and

(f) other territory;

Explanation.—For the purposes of this Act,

each of the territories specified in sub-clauses

(a) to (f) shall be considered to be a separate

Union territory;

(115) "Union territory tax" means the Union

territory goods and services tax levied under the

Union Territory Goods and Services Tax Act;

(116) "Union Territory Goods and Services Tax

Act" means the Union Territory Goods and

Services Tax Act, 2017;

(117) "valid return" means a return furnished

under sub-section (1) of section 39 on which

self-assessed tax has been paid in full;

(118) "voucher" means an instrument where

there is

an obligation to accept it as

consideration or part consideration for a supply

of goods or services or both and where the goods

Central

Act 14

of 2017.

333

PART–II]

LA GAZETTE DE L'ETAT

or services or both to be supplied or the identities

of their potential suppliers are either indicated on

the instrument itself or in related documentation,

including the terms and conditions of use of such

instrument;

(119) "works contract" means a contract for

building, construction, fabrication, completion,

erection, installation, fitting out, improvement,

modification, repair, maintenance, renovation,

alteration or commissioning of any immovable

property wherein transfer of property in goods

(whether as goods or in some other form) is

involved in the execution of such contract;

(120) words and expressions used and not

defined in this Act but defined in the Integrated

Goods and Services Tax Act, the Central Goods

and Services Tax Act, the Union Territory Goods

and Services Tax Act and the Goods and Services

Tax (Compensation to States) Act shall have the

same meanings as assigned to them in those

Acts.

CHAPTER II

ADMINISTRATION

3. The Government shall, by notification, appoint

the following classes of officers for the purposes of

this Act, namely:—

(a) Principal Chief Commissioner of State tax,

(b) Chief Commissioner of State tax,

(d) Special Commissioner of State tax,

(e) Additional Commissioners of State tax,

(f) Joint Commissioners of State tax,

(g) Deputy Commissioners of State tax,

(h) Assistant Commissioners of State tax, and

(i) any other class of officers as it may deem

fit:

Officers

under this

Act.

334

LA GAZETTE DE L'ETAT

[PART–II

Provided that, the officers appointed under the

Puducherry Value Added Tax Act, 2007 shall be deemed

to be the officers appointed under the provisions of this

Act.

4. (1) The Government may, in addition to the

officers as may be notified under section 3, appoint

such persons as it may think fit to be the officers

under this Act.

(2) The Commissioner shall have jurisdiction

over the whole of the State, the Special Commissioner

and an Additional Commissioner in respect of all or

any of the functions assigned to them, shall have

jurisdiction over the whole of the State or where the

State Government so directs, over any local area

thereof, and all other officers shall, subject to such

conditions as may be specified, have jurisdiction over

the whole of the State or over such local areas as the

Commissioner may, by order, specify.

5. (1) Subject to such conditions and limitations

as the Commissioner may impose, an officer of State

tax may exercise the powers and discharge the duties

conferred or imposed on him under this Act.

(2) An officer of State tax may exercise the

powers and discharge the duties conferred or imposed

under this Act on any other officer of State tax who is

subordinate to him.

(3) The Commissioner may, subject to such

conditions and limitations as may be specified in this

behalf by him, delegate his powers to any other officer

who is subordinate to him.

(4) Notwithstanding anything contained in this

section, an Appellate Authority shall not exercise the

powers and discharge the duties conferred or imposed

on any other officer of State tax.

Act

No. 9

of 2007.

Appointment

of officers.

Powers of

officers.

335

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LA GAZETTE DE L'ETAT

6. (1) Without prejudice to the provisions of this

Act, the officers appointed under the Central Goods and

Services Tax Act are authorised to be the proper

officers for the purposes of this Act, subject to such

conditions

the

Government

shall,

the

recommendations of the Council, by notification,

specify.

(2) Subject to the conditions specified in the

notification issued under sub-section (1),-

(a) where any proper officer issues an order

under this Act, he shall also issue an order under

the Central Goods and Services Tax Act, as

authorised by the said Act under intimation to the

jurisdictional officer of central tax;

(b) where a proper officer under the Central

Goods and Services Tax Act has initiated any

proceedings on a subject matter, no proceedings

shall be initiated by the proper officer under this

Act on the same subject matter.

(3) Any proceedings for rectification, appeal and

revision, wherever applicable, of any order passed by

an officer appointed under this Act, shall not lie

before an officer appointed under the Central Goods

and Services Tax Act.

CHAPTER III

LEVY AND COLLECTION OF TAX

7. (1) For the purposes of this Act, the expression

"supply" includes—

(a) all forms of supply of goods or services or

both such as sale, transfer, barter, exchange,

license, rental, lease or disposal made or agreed

to be made for a consideration by a person in the

course or furtherance of business;

(b) import of services for a consideration

whether or not in the course or furtherance of

business;

Authorisation

of officers

of central tax

as proper

officer in

certain

circumstances.

Scope of

supply.

336

LA GAZETTE DE L'ETAT

[PART–II

or agreed to be made without a consideration; and

(d) the activities to be treated as supply of

goods or supply of services as referred to in

Schedule II.

(2) Notwithstanding anything contained in sub-

section (1),—

(a) activities or transactions specified in

Schedule III; or

(b) such activities or transactions undertaken

by the Central Government, a State Government

or any local authority in which they are engaged

as public authorities, as may be notified by the

Government on the recommendations of the

Council,

shall be treated neither as a supply of goods nor a

supply of services.

(3) Subject to the provisions of sub-sections (1)

and (2), the Government may, on the recommendations

the

Council,

specify,

notification,

the

transactions that are to be treated as-

(a) a supply of goods and not as a supply of

services; or

(b) a supply of services and not as a supply of

goods.

8. The tax liability on a composite or a mixed

supply shall be determined in the following manner,

namely:—

(a) a composite supply comprising two or more

supplies, one of which is a principal supply, shall

be treated as a supply of such principal supply;

and

Tax liability

on composite

and mixed

supplies.

337

PART–II]

LA GAZETTE DE L'ETAT

(b) a mixed supply comprising two or more

supplies shall be treated as a supply of that

particular supply which attracts the highest rate

of tax.

9. (1) Subject to the provisions of sub-section (2),

there shall be levied a tax called the Puducherry goods

and services tax on all intra-State supplies of goods

or services or both, except on the supply of alcoholic

liquor for human consumption, on the value

determined under section 15 and at such rates, not

exceeding twenty per cent., as may be notified by the

Government on the recommendations of the Council

and collected in such manner as may be prescribed and

shall be paid by the taxable person.

(2) The State tax on the supply of petroleum

crude, high speed diesel, motor spirit (commonly

known as petrol), natural gas and aviation turbine fuel,

shall be levied with effect from such date as may be

notified by the Government on the recommendations

of the Council.

(3) The Government may, on the recommendations

of the Council, by notification, specify categories of

supply of goods or services or both, the tax on which

shall be paid on reverse charge basis by the recipient

of such goods or services or both and all the

provisions of this Act shall apply to such recipient as

if he is the person liable for paying the tax in relation

to the supply of such goods or services or both.

(4) The State tax in respect of the supply of

taxable goods or services or both by a supplier, who

is not registered, to a registered person shall be paid

by such person on reverse charge basis as the recipient

and all the provisions of this Act shall apply to such

recipient as if he is the person liable for paying the

tax in relation to the supply of such goods or services

or both.

Levy and

collection.

338

LA GAZETTE DE L'ETAT

[PART–II

(5) The Government may, on the recommendations

of the Council, by notification, specify categories of

services the tax on intra-State supplies of which shall

be paid by the electronic commerce operator if such

services are supplied through it, and all the provisions

of this Act shall apply to such electronic commerce

operator as if he is the supplier liable for paying the

tax in relation to the supply of such services:

Provided that where an electronic commerce

operator does not have a physical presence in the

taxable territory, any person representing such

electronic commerce operator for any purpose in the

taxable territory shall be liable to pay tax:

Provided further that where an electronic

commerce operator does not have a physical presence

in the taxable territory and also he does not have a

representative in the said territory, such electronic

commerce operator shall appoint a person in the

taxable territory for the purpose of paying tax and such

person shall be liable to pay tax.

10. (1) Notwithstanding anything to the contrary

contained in this Act but subject to the provisions of

sub-sections (3) and (4) of section 9, a registered

person, whose aggregate turnover in the preceding

financial year did not exceed fifty lakh rupees may opt

to pay, in lieu of the tax payable by him, an amount

calculated at such rate as may be prescribed, but not

exceeding,-

(a) one per cent. of the turnover in State in

case of a manufacturer,

(b) two and a half per cent. of the turnover in

State in case of persons engaged in making

supplies referred to in clause (b) of paragraph 6

of Schedule II, and

case of other suppliers,

subject to such conditions and restrictions as

may be prescribed:

Composition

levy.

339

PART–II]

LA GAZETTE DE L'ETAT

Provided that the Government may, by notification,

increase the said limit of fifty lakh rupees to such

higher amount, not exceeding one crore rupees, as may

be recommended by the Council.

(2) The registered person shall be eligible to opt

under sub-section (1), if—

(a) he is not engaged in the supply of services

other than supplies referred to in clause (b) of

paragraph 6 of Schedule II;

(b) he is not engaged in making any supply of

goods which are not leviable to tax under this Act;

outward supplies of goods;

(d) he is not engaged in making any supply of

goods through an electronic commerce operator

who is required to collect tax at source under

section 52; and

(e) he is not a manufacturer of such goods as

may be notified by the Government on the

recommendations of the Council:

Provided that where more than one registered

person are having the same Permanent Account

Number (issued under the Income-tax Act, 1961), the

registered person shall not be eligible to opt for the

scheme under sub-section (1) unless all such

registered persons opt to pay tax under that sub-

section.

(3) The option availed of by a registered person

under sub-section (1) shall lapse with effect from the

day on which his aggregate turnover during a financial

year exceeds the limit specified under sub-section (1).

(4) A taxable person to whom the provisions of

sub-section (1) apply shall not collect any tax from

the recipient on supplies made by him nor shall he be

entitled to any credit of input tax.

Central

Act 43

of 1961.

340

LA GAZETTE DE L'ETAT

[PART–II

(5) If the proper officer has reasons to believe that

a taxable person has paid tax under sub-section (1)

despite not being eligible, such person shall, in

addition to any tax that may be payable by him under

any other provisions of this Act, be liable to a penalty

and the provisions of section 73 or section 74 shall,

mutatis mutandis, apply for determination of tax and

penalty.

11. (1) Where the Government is satisfied that

it is necessary in the public interest so to do, it may,

on the recommendations of the Council, by notification,

exempt generally, either absolutely or subject to such

conditions as may be specified therein, goods or

services or both of any specified description from the

whole or any part of the tax leviable thereon with

effect from such date as may be specified in such

notification.

(2) Where the Government is satisfied that it is

necessary in the public interest so to do, it may, on

the recommendations of the Council, by special order

in each case, under circumstances of an exceptional

nature to be stated in such order, exempt from

payment of tax any goods or services or both on which

tax is leviable.

(3) The Government may, if it considers

necessary or expedient so to do for the purpose of

clarifying the scope or applicability of any notification

issued under sub-section (1) or order issued under

sub-section (2), insert an explanation in such

notification or order, as the case may be, by

notification at any time within one year of issue of the

notification under sub-section (1) or order under sub-

section (2), and every such explanation shall have

effect as if it had always been the part of the first such

notification or order, as the case may be.

(4) Any notification issued by the Central

Government, on the recommendations of the Council,

under sub-section (1) of section 11 or order issued

Power to

grant

exemption

from tax.

341

PART–II]

LA GAZETTE DE L'ETAT

under sub-section (2) of the said section of the Central

Goods and Services Tax Act shall be deemed to be a

notification or, as the case may be, an order issued

under this Act.

Explanation.—For the purposes of this section,

where an exemption in respect of any goods or

services or both from the whole or part of the tax

leviable thereon has been granted absolutely, the

registered person supplying such goods or services or

both shall not collect the tax, in excess of the effective

rate, on such supply of goods or services or both.

CHAPTER IV

TIME AND VALUE OF SUPPLY

12. (1) The liability to pay tax on goods shall arise

at the time of supply, as determined in accordance with

the provisions of this section.

(2) The time of supply of goods shall be the earlier

of the following dates, namely:-

(a) the date of issue of invoice by the supplier

or the last date on which he is required, under

sub-section (1) of section 31, to issue the invoice

with respect to the supply; or

(b) the date on which the supplier receives the

payment with respect to the supply:

Provided that where the supplier of taxable goods

receives an amount up to one thousand rupees in

excess of the amount indicated in the tax invoice, the

time of supply to the extent of such excess amount

shall, at the option of the said supplier, be the date of

issue of invoice in respect of such excess amount.

Explanation 1.—For the purposes of clauses (a)

and (b), "supply" shall be deemed to have been made

to the extent it is covered by the invoice or, as the case

may be, the payment.

Time of

supply of

goods.

342

LA GAZETTE DE L'ETAT

[PART–II

Explanation 2.—For the purposes of clause (b),

"the date on which the supplier receives the payment"

shall be the date on which the payment is entered in

his books of account or the date on which the payment

is credited to his bank account, whichever is earlier.

(3) In case of supplies in respect of which tax is

paid or liable to be paid on reverse charge basis, the

time of supply shall be the earliest of the following

dates, namely:—

(a) the date of the receipt of goods; or

(b) the date of payment as entered in the books

of account of the recipient or the date on which

the payment is debited in his bank account,

whichever is earlier; or

from the date of issue of invoice or any other

document, by whatever name called, in lieu

thereof by the supplier:

Provided that where it is not possible to

determine the time of supply under clause (a) or clause

(b) or clause (c), the time of supply shall be the date

of entry in the books of account of the recipient of

supply.

(4) In case of supply of vouchers by a supplier,

the time of supply shall be-

(a) the date of issue of voucher, if the supply

is identifiable at that point; or

(b) the date of redemption of voucher, in all

other cases.

(5) Where it is not possible to determine the

time of supply under the provisions of sub-section (2)

or sub-section (3) or sub-section (4), the time of

supply shall—

(a) in a case where a periodical return has to

be filed, be the date on which such return is to

be filed; or

343

PART–II]

LA GAZETTE DE L'ETAT

(b) in any other case, be the date on which the

tax is paid.

(6) The time of supply to the extent it relates to

an addition in the value of supply by way of interest,

late fee or penalty for delayed payment of any

consideration shall be the date on which the supplier

receives such addition in value.

13. (1) The liability to pay tax on services shall

arise at the time of supply, as determined in

accordance with the provisions of this section.

(2) The time of supply of services shall be the

earliest of the following dates, namely:—

(a) the date of issue of invoice by the supplier,

if the invoice is issued within the period

prescribed under sub-section (2) of section 31

or the date of receipt of payment, whichever is

earlier; or

(b) the date of provision of service, if the

invoice is not issued within the period prescribed

under sub-section (2) of section 31 or the date

of receipt of payment, whichever is earlier; or

receipt of services in his books of account, in a

case where the provisions of clause (a) or clause

(b) do not apply:

Provided that where the supplier of taxable

service receives an amount upto one thousand rupees

in excess of the amount indicated in the tax invoice,

the time of supply to the extent of such excess amount

shall, at the option of the said supplier, be the date of

issue of invoice relating to such excess amount.

Explanation.—For the purposes of clauses (a)

and (b)-

(i) the supply shall be deemed to have been

made to the extent it is covered by the invoice

or, as the case may be, the payment;

Time of

supply of

services.

344

LA GAZETTE DE L'ETAT

[PART–II

(ii) "the date of receipt of payment" shall be the

date on which the payment is entered in the

books of account of the supplier or the date on

which the payment is credited to his bank

account, whichever is earlier.

(3) In case of supplies in respect of which tax is

paid or liable to be paid on reverse charge basis, the

time of supply shall be the earlier of the following

dates, namely:—

(a) the date of payment as entered in the books

of account of the recipient or the date on which

the payment is debited in his bank account,

whichever is earlier; or

(b) the date immediately following sixty days

from the date of issue of invoice or any other

document, by whatever name called, in lieu

thereof by the supplier:

Provided that where it is not possible to

determine the time of supply under clause (a) or clause

(b), the time of supply shall be the date of entry in the

books of account of the recipient of supply:

Provided further that in case of supply by

associated enterprises, where the supplier of service

is located outside India, the time of supply shall be the

date of entry in the books of account of the recipient

of supply or the date of payment, whichever is earlier.

(4) In case of supply of vouchers by a supplier,

the time of supply shall be—

(a) the date of issue of voucher, if the supply

is identifiable at that point; or

(b) the date of redemption of voucher, in all

other cases.

345

PART–II]

LA GAZETTE DE L'ETAT

(5) Where it is not possible to determine the

time of supply under the provisions of sub-section (2)

or sub-section (3) or sub-section (4), the time of

supply shall—

(a) in a case where a periodical return has to

be filed, be the date on which such return is to

be filed; or

(b) in any other case, be the date on which the

tax is paid.

(6) The time of supply to the extent it relates to

an addition in the value of supply by way of interest,

late fee or penalty for delayed payment of any

consideration shall be the date on which the supplier

receives such addition in value.

14. Notwithstanding

anything contained in

section 12 or section 13, the time of supply, where

there is a change in the rate of tax in respect of goods

or services or both, shall be determined in the

following manner, namely:—

(a) in case the goods or services or both have

been supplied before the change in rate of tax,—

(i) where the invoice for the same has been

issued and the payment is also received after

the change in rate of tax, the time of supply

shall be the date of receipt of payment or the

date of issue of invoice, whichever is earlier;

(ii) where the invoice has been issued prior

to the change in rate of tax but payment is

received after the change in rate of tax, the

time of supply shall be the date of issue of

invoice; or

(iii) where the payment has been received

before the change in rate of tax, but the

invoice for the same is issued after the change

in rate of tax, the time of supply shall be the

date of receipt of payment;

Change in

rate of tax in

respect of

supply of

goods or

services.

346

LA GAZETTE DE L'ETAT

[PART–II

(b) in case the goods or services or both have

been supplied after the change in rate of tax,—

(i) where the payment is received after the

change in rate of tax but the invoice has been

issued prior to the change in rate of tax, the

time of supply shall be the date of receipt of

payment; or

(ii) where the invoice has been issued and

payment is received before the change in rate

of tax, the time of supply shall be the date of

receipt of payment or date of issue of invoice,

whichever is earlier; or

(iii) where the invoice has been issued after

the change in rate of tax but the payment is

received before the change in rate of tax, the

time of supply shall be the date of issue of

invoice:

Provided that the date of receipt of payment shall

be the date of credit in the bank account if such credit

in the bank account is after four working days from the

date of change in the rate of tax.

Explanation.—For the purposes of this section,

"the date of receipt of payment" shall be the date on

which the payment is entered in the books of account

of the supplier or the date on which the payment is

credited to his bank account, whichever is earlier.

15. (1) The value of a supply of goods or

services or both shall be the transaction value, which

is the price actually paid or payable for the said supply

of goods or services or both where the supplier and

the recipient of the supply are not related and the price

is the sole consideration for the supply.

(2) The value of supply shall include—

(a) any taxes, duties, cesses, fees and charges

levied under any law for the time being in force

other than this Act, the Central Goods and

Value of

taxable

supply.

347

PART–II]

LA GAZETTE DE L'ETAT

Services Tax Act and the Goods and Services Tax

(Compensation to States) Act, if charged separately

by the supplier;

(b) any amount that the supplier is liable to pay

in relation to such supply but which has been

incurred by the recipient of the supply and not

included in the price actually paid or payable for

the goods or services or both;

and packing, charged by the supplier to the

recipient of a supply and any amount charged for

anything done by the supplier in respect of the

supply of goods or services or both at the time

of, or before delivery of goods or supply of

services;

(d) interest or late fee or penalty for delayed

payment of any consideration for any supply; and

(e) subsidies directly linked to the price

excluding subsidies provided by the Central

Government and State Governments.

Explanation.—For the purposes of this sub-

section, the amount of subsidy shall be included

in the value of supply of the supplier who

receives the subsidy.

(3) The value of the supply shall not include any

discount which is given—

(a) before or at the time of the supply if such

discount has been duly recorded in the invoice

issued in respect of such supply; and

(b) after the supply has been effected, if-

(i) such discount is established in terms of

an agreement entered into at or before the time

of such supply and specifically linked to relevant

invoices; and

348

LA GAZETTE DE L'ETAT

[PART–II

(ii) input tax credit as is attributable to the

discount on the basis of document issued by

the supplier has been reversed by the recipient

of the supply.

(4) Where the value of the supply of goods or

services or both cannot be determined under

sub-section (1), the same shall be determined in such

manner as may be prescribed.

(5) Notwithstanding anything contained in

sub-section (1) or sub-section (4), the value of such

supplies as may be notified by the Government on the

recommendations of the Council shall be determined

in such manner as may be prescribed.

Explanation. —For the purposes of this Act,-

(a) persons shall be deemed to be "related

persons'' if -

(i) such persons are officers or directors

of one another's businesses;

(ii) such persons are legally recognised

partners in business;

(iii) such persons are employer and

employee;

(iv) any person directly or indirectly

owns, controls or holds twenty-five per cent.

or more of the outstanding voting stock or

shares of both of them;

(v) one of them directly or indirectly

controls the other;

(vi) both of them are directly or

indirectly controlled by a third person;

(vii) together they directly or indirectly

control a third person; or

(viii) they are members of the same

family;

349

PART–II]

LA GAZETTE DE L'ETAT

(b) the term "person" also includes legal

persons.

of one another in that one is the sole agent or

sole distributor or sole concessionaire, howsoever

described, of the other, shall be deemed to be

related.

CHAPTER V

INPUT TAX CREDIT

16. (1) Every registered person shall, subject to

such conditions and restrictions as may be prescribed

and in the manner specified in section 49, be entitled

to take credit of input tax charged on any supply of

goods or services or both to him which are used or

intended to be used in the course or furtherance of his

business and the said amount shall be credited to the

electronic credit ledger of such person.

(2) Notwithstanding anything contained in this

section, no registered person shall be entitled to the

credit of any input tax in respect of any supply of

goods or services or both to him unless,—

(a) he is in possession of a tax invoice or debit

note issued by a supplier registered under this

Act, or such other tax paying documents as may

be prescribed;

(b) he has received the goods or services or

both.

Explanation.—For the purposes of this

clause, it shall be deemed that the registered

person has received the goods where the goods

are delivered by the supplier to a recipient or any

other person on the direction of such registered

person, whether acting as an agent or otherwise,

before or during movement of goods, either by

way of transfer of documents of title to goods

or otherwise;

Eligibility

and

conditions

for taking

input tax

credit.

350

LA GAZETTE DE L'ETAT

[PART–II

tax charged in respect of such supply has been

actually paid to the Government, either in cash

or through utilisation of input tax credit

admissible in respect of the said supply; and

(d) he has furnished the return under section 39:

Provided that where the goods against an invoice

are received in lots or instalments, the registered

person shall be entitled to take credit upon receipt of

the last lot or instalment:

Provided further that where a recipient fails to

pay to the supplier of goods or services or both, other

than the supplies on which tax is payable on reverse

charge basis, the amount towards the value of supply

along with tax payable thereon within a period of one

hundred and eighty days from the date of issue of

invoice by the supplier, an amount equal to the input

tax credit availed by the recipient shall be added to his

output tax liability, along with interest thereon, in such

manner as may be prescribed:

Provided also that the recipient shall be entitled

to avail of the credit of input tax on payment made by

him of the amount towards the value of supply of goods

or services or both along with tax payable thereon.

(3) Where the registered person has claimed

depreciation on the tax component of the cost of

capital goods and plant and machinery under the

provisions of the Income-tax Act, 1961, the input tax

credit on the said tax component shall not be allowed.

(4) A registered person shall not be entitled to

take input tax credit in respect of any invoice or debit

note for supply of goods or services or both after the

due date of furnishing of the return under section 39

for the month of September following the end of

financial year to which such invoice or invoice relating

to such debit note pertains or furnishing of the relevant

annual return, whichever is earlier.

Central

Act 43

of 1961.

351

PART–II]

LA GAZETTE DE L'ETAT

17. (1) Where the goods or services or both are

used by the registered person partly for the purpose

of any business and partly for other purposes, the

amount of credit shall be restricted to so much of the

input tax as is attributable to the purposes of his

business.

(2) Where the goods or services or both are used

by the registered person partly for effecting taxable

supplies including zero-rated supplies under this Act

or under the Integrated Goods and Services Tax Act and

partly for effecting exempt supplies under the said

Acts, the amount of credit shall be restricted to so

much of the input tax as is attributable to the said

taxable supplies including zero-rated supplies.

(3) The value of exempt supply under sub-section

(2) shall be such as may be prescribed, and shall

include supplies on which the recipient is liable to pay

tax on reverse charge basis, transactions in securities,

sale of land and, subject to clause (b) of paragraph 5

of Schedule II, sale of building.

(4) A banking company or a financial institution

including a non-banking financial company, engaged in

supplying services by way of accepting deposits,

extending loans or advances shall have the option to

either comply with the provisions of sub-section (2),

or avail of, every month, an amount equal to fifty per

cent. of the eligible input tax credit on inputs, capital

goods and input services in that month and the rest

shall lapse:

Provided that the option once exercised shall not

be withdrawn during the remaining part of the financial

year:

Provided further that the restriction of fifty per

cent. shall not apply to the tax paid on supplies made

by one registered person to another registered person

having the same Permanent Account Number.

Apportionment

of credit and

blocked

credits.

352

LA GAZETTE DE L'ETAT

[PART–II

(5) Notwithstanding anything contained in sub-

section (1) of section 16 and sub-section (1) of

section 18, input tax credit shall not be available in

respect of the following, namely:—

(a) motor vehicles and other conveyances

except when they are used—

(i) for making the following taxable

supplies, namely:—

(A) further supply of such vehicles or

conveyances; or

(B) transportation of passengers; or

flying, navigating such vehicles or

conveyances;

(ii) for transportation of goods;

(b) the following supply of goods or services

or both:-

(i) food and beverages, outdoor catering,

beauty treatment, health services, cosmetic

and plastic surgery except where an inward

supply of goods or services or both of a

particular category is used by a registered

person for making an outward taxable supply

of the same category of goods or services or

both or as an element of a taxable composite

or mixed supply;

(ii) membership of a club, health and

fitness centre;

(iii) rent-a-cab, life insurance and health

insurance except where -

(A) the Government notifies the

services which are obligatory for an

employer to provide to its employees

under any law for the time being in

force; or

353

PART–II]

LA GAZETTE DE L'ETAT

(B) such inward supply of goods or

services or both of a particular category

is used by a registered person for making

an outward taxable supply of the same

category of goods or services or both or

as part of a taxable composite or mixed

supply; and

(iv)

travel

benefits

extended

employees on vacation such as leave or home

travel concession;

construction of an immovable property (other

than plant and machinery) except where it is an

input service for further supply of works contract

service;

(d) goods or services or both received by a

taxable person for construction of an immovable

property (other than plant and machinery) on his

own account including when such goods or

services or both are used in the course or

furtherance of business;

Explanation.—For the purposes of clauses (c)

and (d), the expression "construction" includes re-

construction, renovation, additions or alterations or

repairs, to the extent of capitalisation, to the said

immovable property;

(e) goods or services or both on which tax has

been paid under section 10;

(f) goods or services or both received by a non-

resident taxable person except on goods imported

by him;

(g) goods or services or both used for

personal consumption;

(h) goods lost, stolen, destroyed, written off

or disposed of by way of gift or free samples;

and

354

LA GAZETTE DE L'ETAT

[PART–II

(i) any tax paid in accordance with the

provisions of sections 74, 129 and 130.

(6) The Government may prescribe the manner in

which the credit referred to in sub-sections (1) and (2)

may be attributed.

Explanation.— For the purposes of this Chapter

and Chapter VI, the expression "plant and machinery"

means apparatus, equipment, and machinery fixed to

earth by foundation or structural support that are used

for making outward supply of goods or services or both

and includes such foundation and structural supports

but excludes-

(i) land, building or any other civil

structures;

(ii) telecommunication towers; and

(iii) pipelines laid outside the factory

premises.

18. (1) Subject to such conditions and

restrictions as may be prescribed—

(a) a person who has applied for registration

under this Act within thirty days from the date on

which he becomes liable to registration and has

been granted such registration shall be entitled

to take credit of input tax in respect of inputs

held in stock and inputs contained in semi-

finished or finished goods held in stock on the

day immediately preceding the date from which

he becomes liable to pay tax under the provisions

of this Act;

(b) a person who takes registration under sub-

section (3) of section 25 shall be entitled to

take credit of input tax in respect of inputs held

in stock and inputs contained in semi-finished or

finished goods held in stock on the day

immediately preceding the date of grant of

registration;

Availability

of credit in

special

circumstances.

355

PART–II]

LA GAZETTE DE L'ETAT

tax under section 10, he shall be entitled to take

credit of input tax in respect of inputs held in

stock, inputs contained in semi-finished or

finished goods held in stock and on capital goods

on the day immediately preceding the date from

which he becomes liable to pay tax under section 9:

Provided that the credit on capital goods shall

be reduced by such percentage points as may be

prescribed;

(d) where an exempt supply of goods or

services or both by a registered person becomes

a taxable supply, such person shall be entitled to

take credit of input tax in respect of inputs held

in stock and inputs contained in semi-finished or

finished goods held in stock relatable to such

exempt supply and on capital goods exclusively

used for such exempt supply on the day

immediately preceding the date from which such

supply becomes taxable:

Provided that the credit on capital goods shall

be reduced by such percentage points as may be

prescribed.

(2) A registered person shall not be entitled to

take input tax credit under sub-section (1) in respect

of any supply of goods or services or both to him after

the expiry of one year from the date of issue of tax

invoice relating to such supply.

(3) Where there is a change in the constitution

of a registered person on account of sale, merger,

demerger, amalgamation, lease or transfer of the

business with the specific provisions for transfer of

liabilities, the said registered person shall be allowed

to transfer the input tax credit which remains

unutilised in his electronic credit ledger to such sold,

merged, demerged, amalgamated, leased or transferred

business in such manner as may be prescribed.

356

LA GAZETTE DE L'ETAT

[PART–II

(4) Where any registered person who has availed

of input tax credit opts to pay tax under section 10 or,

where the goods or services or both supplied by him

become wholly exempt, he shall pay an amount, by way

of debit in the electronic credit ledger or electronic

cash ledger, equivalent to the credit of input tax in

respect of inputs held in stock and inputs contained in

semi-finished or finished goods held in stock and on

capital goods, reduced by such percentage points as

may be prescribed, on the day immediately preceding

the date of exercising of such option or, as the case

may be, the date of such exemption:

Provided that after payment of such amount, the

balance of input tax credit, if any, lying in his

electronic credit ledger shall lapse.

(5) The amount of credit under sub-section (1)

and the amount payable under sub-section (4) shall be

calculated in such manner as may be prescribed.

(6) In case of supply of capital goods or plant and

machinery, on which input tax credit has been taken,

the registered person shall pay an amount equal to the

input tax credit taken on the said capital goods or plant

and machinery reduced by such percentage points as

may be prescribed or the tax on the transaction value

of such capital goods or plant and machinery

determined under section 15, whichever is higher:

Provided that where refractory bricks, moulds and

dies, jigs and fixtures are supplied as scrap, the taxable

person may pay tax on the transaction value of such

goods determined under section 15.

19. (1) The principal shall, subject to such

conditions and restrictions as may be prescribed, be

allowed input tax credit on inputs sent to a job-worker

for job-work.

Taking input

tax credit in

respect of

inputs and

capital goods

sent for job

work.

357

PART–II]

LA GAZETTE DE L'ETAT

(2) Notwithstanding anything contained in clause

(b) of sub-section (2) of section 16, the principal shall

be entitled to take credit of input tax on inputs even if

the inputs are directly sent to a job-worker for job-work

without being first brought to his place of business.

(3) Where the inputs sent for job-work are not

received back by the principal after completion of job-

work or otherwise or are not supplied from the place

of business of the job-worker in accordance with

clause (a) or clause (b) of sub-section (1) of section

143 within one year of being sent out, it shall be

deemed that such inputs had been supplied by the

principal to the job-worker on the day when the said

inputs were sent out:

Provided that where the inputs are sent directly

to a job-worker, the period of one year shall be

counted from the date of receipt of inputs by the job-

worker.

(4) The principal shall, subject to such

conditions and restrictions as may be prescribed, be

allowed input tax credit on capital goods sent to a job-

worker for job-work.

(5) Notwithstanding anything contained in clause

(b) of sub-section (2) of section 16, the principal shall

be entitled to take credit of input tax on capital goods

even if the capital goods are directly sent to a job-

worker for job-work without being first brought to his

place of business.

(6) Where the capital goods sent for job-work

are not received back by the principal within a period

of three years of being sent out, it shall be deemed that

such capital goods had been supplied by the principal

to the job-worker on the day when the said capital

goods were sent out:

358

LA GAZETTE DE L'ETAT

[PART–II

Provided that where the capital goods are sent

directly to a job-worker, the period of three years shall

be counted from the date of receipt of capital goods

by the job-worker.

(7) Nothing contained in sub-section (3) or sub-

section (6) shall apply to moulds and dies, jigs and

fixtures, or tools sent out to a job-worker for job-

work.

Explanation.— For the purpose of this section,

"principal" means the person referred to in section 143.

20. (1) The Input Service Distributor shall

distribute the credit of State tax as State tax or

integrated tax and integrated tax as integrated tax or

State tax, by way of issue of document containing the

amount of input tax credit being distributed in such

manner as may be prescribed.

(2) The Input Service Distributor may distribute

the credit subject to the following conditions,

namely:—

(a) the credit can be distributed to the

recipients

credit

against

document

containing such details as may be prescribed;

(b) the amount of the credit distributed shall

not exceed the amount of credit available for

distribution;

attributable to a recipient of credit shall be

distributed only to that recipient;

(d) the credit of tax paid on input services

attributable to more than one recipient of credit

shall be distributed amongst such recipients to

whom the input service is attributable and such

distribution shall be pro rata on the basis of the

turnover in a State or turnover in a Union

Manner of

distribution

of credit by

Input

Service

Distributor.

359

PART–II]

LA GAZETTE DE L'ETAT

territory of such recipient, during the relevant

period, to the aggregate of the turnover of all

such recipients to whom such input service is

attributable and which are operational in the

current year, during the said relevant period;

(e) the credit of tax paid on input services

attributable to all recipients of credit shall be

distributed amongst such recipients and such

distribution shall be pro rata on the basis of the

turnover in a State or turnover in a Union

territory of such recipient, during the relevant

period, to the aggregate of the turnover of all

recipients and which are operational in the

current year, during the said relevant period.

Explanation.—For the purposes of this

section,—

(a) the "relevant period" shall be—

(i) if the recipients of credit have turnover

in their States or Union territories in the

financial year preceding the year during which

credit is to be distributed, the said financial

year; or

(ii) if some or all recipients of the credit

do not have any turnover in their States or

Union territories in the financial year

preceding the year during which the credit is

to be distributed, the last quarter for which

details of such turnover of all the recipients

are available, previous to the month during

which credit is to be distributed;

(b) the expression "recipient of credit" means

the supplier of goods or services or both having

the same Permanent Account Number as that of

the Input Service Distributor;

registered person engaged in the supply of

taxable goods as well as goods not taxable under

this Act, means the value of turnover, reduced by

360

LA GAZETTE DE L'ETAT

[PART–II

the amount of any duty or tax levied under entry

84 of List I of the Seventh Schedule to the

Constitution and entry 51 and 54 of List II of the

said Schedule.

21. Where the Input Service Distributor

distributes the credit in contravention of the

provisions contained in section 20 resulting in excess

distribution of credit to one or more recipients of

credit, the excess credit so distributed shall be

recovered from such recipients along with interest, and

the provisions of section 73 or section 74, as the case

may

be,

shall,

mutatis

mutandis,

apply

for

determination of amount to be recovered.

CHAPTER VI

REGISTRATION

22. (1) Every supplier making a taxable supply of

goods or services or both in the State shall be liable

to be registered under this Act if his aggregate

turnover in a financial year exceeds twenty lakh rupees:

Provided that where such person makes taxable

supplies of goods or services or both from any of the

special category States, he shall be liable to be

registered if his aggregate turnover in a financial year

exceeds ten lakh rupees.

(2) Every person who, on the day immediately

preceding the appointed day, is registered or holds a

licence under an existing law, shall be liable to be

registered under this Act with effect from the

appointed day.

(3) Where a business carried on by a taxable

person registered under this Act is transferred, whether

on account of succession or otherwise, to another

person as a going concern, the transferee or the

successor, as the case may be, shall be liable to be

registered with effect from the date of such transfer

or succession.

Manner of

recovery of

credit

distributed in

excess.

Persons

liable for

registration.

361

PART–II]

LA GAZETTE DE L'ETAT

(4) Notwithstanding anything contained in sub-

sections (1) and (3), in a case of transfer pursuant to

sanction of a scheme or an arrangement for

amalgamation or, as the case may be, de-merger of two

or more companies pursuant to an order of a High

Court, Tribunal or otherwise, the transferee shall be

liable to be registered, with effect from the date on

which the Registrar of Companies issues a certificate

of incorporation giving effect to such order of the

High Court or Tribunal.

Explanation.—For the purposes of this section,—

(i) the expression "aggregate turnover" shall

include all supplies made by the taxable person,

whether on his own account or made on behalf

of all his principals;

(ii) the supply of goods, after completion of

job-work, by a registered job-worker shall be

treated as the supply of goods by the principal

referred to in section 143, and the value of such

goods shall not be included in the aggregate

turnover of the registered job-worker;

(iii) the expression "special category States"

shall mean the States as specified in sub-clause

(g) of clause (4) of article 279A of the

Constitution.

23. (1) The following persons shall not be liable

to registration, namely:—

(a) any person engaged exclusively in the

business of supplying goods or services or both

that are not liable to tax or wholly exempt from

tax under this Act or under the Integrated Goods

and Services Tax Act;

(b) an agriculturist, to the extent of supply of

produce out of cultivation of land.

Persons not

liable for

registration.

362

LA GAZETTE DE L'ETAT

[PART–II

(2) The Government may, on the recommendations

of the Council, by notification, specify the category

of persons who may be exempted from obtaining

registration under this Act.

24. Notwithstanding anything contained in

sub-section (1) of section 22, the following categories

of persons shall be required to be registered under this

Act,-

(i) persons making any inter-State

taxable supply;

(ii) casual taxable persons making

taxable supply;

(iii) persons who are required to pay tax

under reverse charge;

(iv) persons who are required to pay tax

under sub-section (5) of section 9;

(v) non-resident taxable persons making

taxable supply;

(vi) persons who are required to deduct

tax under section 51, whether or not separately

registered under this Act;

(vii) persons who make taxable supply of

goods or services or both on behalf of other

taxable persons whether as an agent or

otherwise;

(viii) Input Service Distributor, whether

or not separately registered under this Act;

(ix) persons who supply goods or

services or both, other than supplies specified

under sub-section (5) of section 9, through

such electronic commerce operator who is

required to collect tax at source under section 52;

(x) every electronic commerce operator;

Compulsory

registration

in certain

cases.

363

PART–II]

LA GAZETTE DE L'ETAT

(xi) every person supplying online

information and data base access or retrieval

services from a place outside India to a person

in India, other than a registered person; and

(xii) such other person or class of

persons as may be notified by the Government

on the recommendations of the Council.

25. (1) Every person who is liable to be

registered under section 22 or section 24 shall apply

for registration within thirty days from the date on

which he becomes liable to registration, in such manner

and subject to such conditions as may be prescribed:

Provided that a casual taxable person or a non-

resident taxable person shall apply for registration at

least five days prior to the commencement of business.

Explanation.— Every person who makes a

supply from the territorial waters of India shall obtain

registration in the State where the nearest point of the

appropriate baseline is located in the State.

(2) A person seeking registration under this Act

shall be granted a single registration:

Provided that a person having multiple business

verticals in the State may be granted a separate

registration for each business vertical, subject to such

conditions as may be prescribed.

(3) A person, though not liable to be registered

under section 22 or section 24 may get himself

registered voluntarily, and all provisions of this Act,

as are applicable to a registered person, shall apply to

such person.

(4) A person who has obtained or is required to

obtain more than one registration, whether in one State

or Union territory or more than one State or Union

territory shall, in respect of each such registration, be

treated as distinct persons for the purposes of this

Act.

Procedure

for

registration.

364

LA GAZETTE DE L'ETAT

[PART–II

(5) Where a person who has obtained or is

required to obtain registration in a State or Union

territory in respect of an establishment, has an

establishment in another State or Union territory, then

such establishments shall be treated as establishments

of distinct persons for the purposes of this Act.

(6) Every person shall have a Permanent Account

Number issued under the Income-tax Act, 1961 in

order to be eligible for grant of registration:

Provided that a person required to deduct tax

under section 51 may have, in lieu of a Permanent

Account Number, a Tax Deduction and Collection

Account Number issued under the said Act in order to

be eligible for grant of registration.

(7) Notwithstanding anything contained in sub-

section (6), a non-resident taxable person may be

granted registration under sub-section (1) on the basis

of such other documents as may be prescribed.

(8) Where a person who is liable to be registered

under this Act fails to obtain registration, the proper

officer may, without prejudice to any action which may

be taken under this Act or under any other law for the

time being in force, proceed to register such person

in such manner as may be prescribed.

(9) Notwithstanding

anything

contained

sub-section (1),—

(a) any specialised agency of the United

Nations

Organisation

any

Multilateral

Financial Institution and Organisation notified

under the United Nations (Privileges and

Immunities) Act, 1947, Consulate or Embassy of

foreign countries; and

(b) any other person or class of persons, as

may be notified by the Commissioner,

Central

Act 43

of 1961.

Central

Act 46

of 1947.

365

PART–II]

LA GAZETTE DE L'ETAT

shall be granted a Unique Identity Number in such

manner and for such purposes, including refund of

taxes on the notified supplies of goods or services or

both received by them, as may be prescribed.

(10) The registration or the Unique Identity

Number shall be granted or rejected after due verification

in such manner and within such period as may be

prescribed.

(11) A certificate of registration shall be issued

in such form and with effect from such date as may

be prescribed.

(12) A registration or a Unique Identity Number

shall be deemed to have been granted after the expiry

of the period prescribed under sub-section (10), if no

deficiency has been communicated to the applicant

within that period.

26. (1) The grant of registration or the Unique

Identity Number under the Central Goods and Services

Tax Act shall be deemed to be a grant of registration

or the Unique Identity Number under this Act subject

to the condition that the application for registration or

the Unique Identity Number has not been rejected

under this Act within the time specified in sub-section (10)

of section 25.

(2) Notwithstanding anything contained in

sub-section (10) of section 25, any rejection of

application for registration or the Unique Identity

Number under the Central Goods and Services Tax Act

shall be deemed to be a rejection of application for

registration under this Act.

27. (1) The certificate of registration issued to

a casual taxable person or a non-resident taxable

person shall be valid for the period specified in the

application for registration or ninety days from the

effective date of registration, whichever is earlier and

such person shall make taxable supplies only after the

issuance of the certificate of registration:

Deemed

registration.

Special

provisions

relating to

casual taxable

person and

non-resident

taxable

person.

366

LA GAZETTE DE L'ETAT

[PART–II

Provided that the proper officer may, on sufficient

cause being shown by the said taxable person, extend

the said period of ninety days by a further period not

exceeding ninety days.

(2) A casual taxable person or a non-resident

taxable person shall, at the time of submission of

application for registration under sub-section (1) of

section 25, make an advance deposit of tax in an

amount equivalent to the estimated tax liability of such

person for the period for which the registration is

sought:

Provided that where any extension of time is

sought under sub-section (1), such taxable person shall

deposit an additional amount of tax equivalent to the

estimated tax liability of such person for the period

for which the extension is sought.

(3) The amount deposited under sub-section (2)

shall be credited to the electronic cash ledger of such

person and shall be utilised in the manner provided

under section 49.

28. (1) Every registered person and a person to

whom a Unique Identity Number has been assigned

shall inform the proper officer of any changes in the

information furnished at the time of registration or

subsequent thereto, in such form and manner and

within such period as may be prescribed.

(2) The proper officer may, on the basis of

information furnished under sub-section (1) or as

ascertained by him, approve or reject amendments in

the registration particulars in such manner and within

such period as may be prescribed:

Provided that approval of the proper officer shall

not be required in respect of amendment of such

particulars as may be prescribed:

Provided further that the proper officer shall not

reject

the

application

for

amendment

the

registration particulars without giving the person an

opportunity of being heard.

Amendment

registration.

367

PART–II]

LA GAZETTE DE L'ETAT

(3) Any rejection or approval of amendments

under the Central Goods and Services Tax Act shall be

deemed to be a rejection or approval under this Act.

29. (1) The proper officer may, either on his own

motion or on an application filed by the registered

person or by his legal heirs, in case of death of such

person, cancel the registration, in such manner and

within such period as may be prescribed, having regard

to the circumstances where,—

(a) the business has been discontinued,

transferred fully for any reason including death

of the proprietor, amalgamated with other legal

entity, demerged or otherwise disposed of; or

(b) there is any change in the constitution of

the business; or

registered under sub-section (3) of section 25,

is no longer liable to be registered under section

22 or section 24.

(2)

The

proper

officer

may

cancel

the

registration of a person from such date, including any

retrospective date, as he may deem fit, where,—

(a) a registered person has contravened such

provisions of the Act or the rules made

thereunder as may be prescribed; or

(b) a person paying tax under section 10 has

not furnished returns for three consecutive tax

periods; or

specified in clause (b), has not furnished returns

for a continuous period of six months; or

(d)

any person who has taken voluntary

registration under sub-section (3) of section 25 has

not commenced business within six months from the

date of registration; or

Cancellation

registration.

368

LA GAZETTE DE L'ETAT

[PART–II

(e) registration has been obtained by means of

fraud, wilful misstatement or suppression of

facts:

Provided that the proper officer shall not

cancel the registration without giving the person

an opportunity of being heard.

(3) The cancellation of registration under this

section shall not affect the liability of the person to

pay tax and other dues under this Act or to discharge

any obligation under this Act or the rules made

thereunder for any period prior to the date of

cancellation whether or not such tax and other dues are

determined before or after the date of cancellation.

(4) The cancellation of registration under the

Central Goods and Services Tax Act shall be deemed

to be a cancellation of registration under this Act.

(5)

Every registered person whose registration

is cancelled shall pay an amount, by way of debit in

the electronic credit ledger or electronic cash ledger,

equivalent to the credit of input tax in respect of inputs

held in stock and inputs contained in semi-finished or

finished goods held in stock or capital goods or plant

and machinery on the day immediately preceding the

date of such cancellation or the output tax payable on

such goods, whichever is higher, calculated in such

manner as may be prescribed:

Provided that in case of capital goods or plant and

machinery, the taxable person shall pay an amount

equal to the input tax credit taken on the said capital

goods or plant and machinery, reduced by such

percentage points as may be prescribed or the tax on

the transaction value of such capital goods or plant and

machinery under section 15, whichever is higher.

(6) The amount payable under sub-section (5)

shall be calculated in such manner as may be

prescribed.

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30. (1) Subject to such conditions as may be

prescribed, any registered person, whose registration

is cancelled by the proper officer on his own motion,

may apply to such officer for revocation of

cancellation of the registration in the prescribed

manner within thirty days from the date of service of

the cancellation order.

(2) The proper officer may, in such manner and

within such period as may be prescribed, by order,

either revoke cancellation of the registration or reject

the application:

Provided that the application for revocation of

cancellation of registration shall not be rejected unless

the applicant has been given an opportunity of being heard.

(3) The revocation of cancellation of registration

under the Central Goods and Services Tax Act shall be

deemed to be a revocation of cancellation of

registration under this Act.

CHAPTER VII

TAX INVOICE, CREDIT AND DEBIT NOTES

31. (1) A registered person supplying taxable

goods shall, before or at the time of,—

(a) removal of goods for supply to the

recipient, where the supply involves movement of

goods; or

(b) delivery of goods or making available

thereof to the recipient, in any other case,

issue a tax invoice showing the description, quantity

and value of goods, the tax charged thereon and such

other particulars as may be prescribed:

Provided that the Government may, on the

recommendations of the Council, by notification,

specify the categories of goods or supplies in respect

of which a tax invoice shall be issued, within such time

and in such manner as may be prescribed.

Revocation

cancellation

registration.

Tax invoice.

370

LA GAZETTE DE L'ETAT

[PART–II

(2) A registered person supplying taxable services

shall, before or after the provision of service but

within a prescribed period, issue a tax invoice, showing

the description, value, tax charged thereon and such

other particulars as may be prescribed:

Provided that the Government may, on the

recommendations of the Council, by notification and

subject to such conditions as may be mentioned

therein, specify the categories of services in respect

of which—

(a) any other document issued in relation to

the supply shall be deemed to be a tax invoice;

(b) tax invoice may not be issued.

(3) Notwithstanding anything contained in sub-

sections (1) and (2)—

(a) a registered person may, within one month

from the date of issuance of certificate of

registration and in such manner as may be

prescribed, issue a revised invoice against the

invoice already issued during the period

beginning with the effective date of registration

till the date of issuance of certificate of

registration to him;

(b) a registered person may not issue a tax

invoice if the value of the goods or services

or both supplied is less than two hundred

rupees subject to such conditions and in

such manner as may be prescribed;

goods or services or both or paying tax under the

provisions of section 10 shall issue, instead of

a tax invoice, a bill of supply containing such

particulars and in such manner as may be

prescribed:

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Provided that the registered person may not

issue a bill of supply if the value of the goods

or services or both supplied is less than two

hundred rupees subject to such conditions and in

such manner as may be prescribed;

(d) a registered person shall, on receipt of

advance payment with respect to any supply of

goods or services or both, issue a receipt

voucher or any other document, containing such

particulars as may be prescribed, evidencing

receipt of such payment;

(e) where, on receipt of advance payment with

respect to any supply of goods or services or

both the registered person issues a receipt

voucher, but subsequently no supply is made and

no tax invoice is issued in pursuance thereof, the

said registered person may issue to the person

who had made the payment, a refund voucher

against such payment;

(f) a registered person who is liable to pay tax

under sub-section (3) or sub-section (4) of

section 9 shall issue an invoice in respect of

goods or services or both received by him from

the supplier who is not registered on the date of

receipt of goods or services or both;

(g) a registered person who is liable to pay

tax under sub-section (3) or sub-section (4) of

section 9 shall issue a payment voucher at the

time of making payment to the supplier.

(4) In case of continuous supply of goods, where

successive statements of accounts or successive

payments are involved, the invoice shall be issued

before or at the time each such statement is issued or,

as the case may be, each such payment is received.

(5) Subject to the provisions of clause (d) of sub-

section (3), in case of continuous supply of services,—

(a) where the due date of payment is

ascertainable from the contract, the invoice shall

be issued on or before the due date of payment;

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LA GAZETTE DE L'ETAT

[PART–II

(b) where the due date of payment is not

ascertainable from the contract, the invoice shall

be issued before or at the time when the supplier

of service receives the payment;

completion of an event, the invoice shall be

issued on or before the date of completion of

that event.

(6) In a case where the supply of services ceases

under a contract before the completion of the supply,

the invoice shall be issued at the time when the supply

ceases and such invoice shall be issued to the extent

of the supply made before such cessation.

(7) Notwithstanding anything contained in sub-

section (1), where the goods being sent or taken on

approval for sale or return are removed before the

supply takes place, the invoice shall be issued

before or at the time of supply or six months from

the date of removal, whichever is earlier.

Explanation.—For

the

purposes

this

section, the expression "tax invoice" shall include

any revised invoice issued by the supplier in respect

of a supply made earlier.

32. (1) A person who is not a registered person

shall not collect in respect of any supply of goods

or services or both any amount by way of tax under

this Act.

(2) No registered person shall collect tax

except in accordance with the provisions of this Act

or the rules made thereunder.

33. Notwithstanding anything contained in this

Act or any other law for the time being in force,

where any supply is made for a consideration, every

person who is liable to pay tax for such supply shall

prominently indicate in all documents relating to

assessment, tax invoice and other like documents,

the amount of tax which shall form part of the price

at which such supply is made.

Prohibition

unauthorised

collection of

tax.

Amount of

tax to be

indicated in

tax invoice

and other

documents.

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34. (1) Where a tax invoice has been issued for

supply of any goods or services or both and the taxable

value or tax charged in that tax invoice is found to

exceed the taxable value or tax payable in respect of

such supply, or where the goods supplied are returned

by the recipient, or where goods or services or both

supplied are found to be deficient, the registered

person, who has supplied such goods or services or

both, may issue to the recipient a credit note containing

such particulars as may be prescribed.

(2) Any registered person who issues a credit

note in relation to a supply of goods or services or

both shall declare the details of such credit note in the

return for the month during which such credit note has

been issued but not later than September following the

end of the financial year in which such supply was

made, or the date of furnishing of the relevant annual

return, whichever is earlier, and the tax liability shall

be adjusted in such manner as may be prescribed:

Provided that no reduction in output tax liability

of the supplier shall be permitted, if the incidence of

tax and interest on such supply has been passed on to

any other person.

(3) Where a tax invoice has been issued for

supply of any goods or services or both and the taxable

value or tax charged in that tax invoice is found to be

less than the taxable value or tax payable in respect of

such supply, the registered person, who has supplied

such goods or services or both, shall issue to the

recipient a debit note containing such particulars as

may be prescribed.

(4) Any registered person who issues a debit note

in relation to a supply of goods or services or both

shall declare the details of such debit note in the return

for the month during which such debit note has been

issued and the tax liability shall be adjusted in such

manner as may be prescribed.

Credit and

debit notes.

374

LA GAZETTE DE L'ETAT

[PART–II

Explanation.—For the purposes of this Act,

the expression "debit note" shall include a supplementary

invoice.

CHAPTER VIII

ACCOUNTS AND RECORDS

35. (1) Every registered person shall keep and

maintain, at his principal place of business, as

mentioned in the certificate of registration, a true and

correct account of-

(a) production or manufacture of goods;

(b) inward and outward supply of goods or

services or both;

(d) input tax credit availed;

(e) output tax payable and paid; and

(f) such other particulars as may be prescribed:

Provided that where more than one place of

business is specified in the certificate of registration,

the accounts relating to each place of business shall

be kept at such places of business:

Provided further that the registered person may

keep and maintain such accounts and other particulars

in electronic form in such manner as may be

prescribed.

(2) Every owner or operator of warehouse or

godown or any other place used for storage of goods

and every transporter, irrespective of whether he is a

registered person or not, shall maintain records of the

consigner, consignee and other relevant details of the

goods in such manner as may be prescribed.

(3) The Commissioner may notify a class of

taxable persons to maintain additional accounts or

documents for such purpose as may be specified

therein.

Accounts

and other

records.

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(4) Where the Commissioner considers that any

class of taxable persons is not in a position to keep

and maintain accounts in accordance with the

provisions of this section, he may, for reasons to be

recorded in writing, permit such class of taxable

persons to maintain accounts in such manner as may

be prescribed.

(5) Every registered person whose turnover

during a financial year exceeds the prescribed limit

shall get his accounts audited by a chartered accountant

or a cost accountant and shall submit a copy of the

audited annual accounts, the reconciliation statement

under sub-section (2) of section 44 and such other

documents in such form and manner as may be

prescribed.

(6) Subject to the provisions of clause (h) of sub-

section (5) of section 17, where the registered person

fails to account for the goods or services or both in

accordance with the provisions of sub-section (1), the

proper officer shall determine the amount of tax

payable on the goods or services or both that are not

accounted for, as if such goods or services or both had

been supplied by such person and the provisions of

section 73 or section74, as the case may be, shall,

mutatis mutandis, apply for determination of such tax.

36. Every registered person required to keep and

maintain books of account or other records in

accordance with the provisions of sub-section (1) of

section 35 shall retain them until the expiry of seventy

two months from the due date of furnishing of annual

return for the year pertaining to such accounts and

records:

Provided that a registered person, who is a party

to an appeal or revision or any other proceedings

before any Appellate Authority or Revisional Authority

or Appellate Tribunal or court, whether filed by him

or by the Commissioner, or is under investigation for

Period of

retention of

accounts.

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LA GAZETTE DE L'ETAT

[PART–II

an offence under Chapter XIX, shall retain the books

of account and other records pertaining to the subject

matter of such appeal or revision or proceedings or

investigation for a period of one year after final

disposal of such appeal or revision or proceedings or

investigation, or for the period specified above,

whichever is later.

CHAPTER IX

RETURNS

37. (1) Every registered person, other than an

Input Service Distributor, a non-resident taxable person

and a person paying tax under the provisions of section

10 or section 51 or section 52, shall furnish,

electronically, in such form and manner as may be

prescribed, the details of outward supplies of goods

or services or both effected during a tax period on or

before the tenth day of the month succeeding the said

tax period and such details shall be communicated to

the recipient of the said supplies within such time and

in such manner as may be prescribed:

Provided that the registered person shall not be

allowed to furnish the details of outward supplies

during the period from the eleventh day to the

fifteenth day of the month succeeding the tax period:

Provided further that the Commissioner may, for

reasons to be recorded in writing, by notification,

extend the time limit for furnishing such details for

such class of taxable persons as may be specified

therein:

Provided also that any extension of time limit

notified by the Commissioner of central tax shall be

deemed to be notified by the Commissioner.

(2) Every registered person who has been

communicated the details under sub-section (3) of

section 38 or the details pertaining to inward supplies

of Input Service Distributor under sub-section (4) of

Furnishing

details of

outward

supplies.

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section 38, shall either accept or reject the details so

communicated, on or before the seventeenth day, but

not before the fifteenth day, of the month succeeding

the tax period and the details furnished by him under

sub-section (1) shall stand amended accordingly.

(3) Any registered person, who has furnished the

details under sub-section (1) for any tax period and

which have remained unmatched under section 42 or

section 43, shall, upon discovery of any error or

omission therein, rectify such error or omission in

such manner as may be prescribed, and shall pay the

tax and interest, if any, in case there is a short payment

of tax on account of such error or omission, in the

return to be furnished for such tax period:

Provided that no rectification of error or omission

in respect of the details furnished under sub-section (1)

shall be allowed after furnishing of the return under

section 39 for the month of September following the end

of the financial year to which such details pertain, or

furnishing of the relevant annual return, whichever is

earlier.

Explanation.—For the purposes of this Chapter,

the expression "details of outward supplies" shall

include details of invoices, debit notes, credit notes

and revised invoices issued in relation to outward

supplies made during any tax period.

38. (1) Every registered person, other than an

Input Service Distributor or a non-resident taxable

person or a person paying tax under the provisions of

section 10 or section 51 or section 52, shall verify,

validate, modify or delete, if required, the details

relating to outward supplies and credit or debit notes

communicated under sub-section (1) of section 37 to

prepare the details of his inward supplies and credit

or debit notes and may include therein, the details of

inward supplies and credit or debit notes received by

him in respect of such supplies that have not been

declared by the supplier under sub-section (1) of

section 37.

Furnishing

details of

inward

supplies.

378

LA GAZETTE DE L'ETAT

[PART–II

(2) Every registered person, other than an Input

Service Distributor or a non-resident taxable person

or a person paying tax under the provisions of section

10 or section 51 or section 52, shall furnish,

electronically, the details of inward supplies of taxable

goods or services or both, including inward supplies

of goods or services or both on which the tax is

payable on reverse charge basis under this Act and

inward supplies of goods or services or both taxable

under the Integrated Goods and Services Tax Act or on

which integrated goods and services tax is payable

under section 3 of the Customs Tariff Act, 1975, and

credit or debit notes received in respect of such

supplies during a tax period after the tenth day but on

or before the fifteenth day of the month succeeding

the tax period in such form and manner as may be

prescribed:

Provided that the Commissioner may, for reasons

to be recorded in writing, by notification, extend the

time limit for furnishing such details for such class

of taxable persons as may be specified therein:

Provided further that any extension of time limit

notified by the Commissioner of central tax shall be

deemed to be notified by the Commissioner.

(3) The details of supplies modified, deleted or

included by the recipient and furnished under sub-

section (2) shall be communicated to the supplier

concerned in such manner and within such time as may

be prescribed.

(4) The details of supplies modified, deleted or

included by the recipient in the return furnished under

sub-section (2) or sub-section (4) of section 39 shall

be communicated to the supplier concerned in such

manner and within such time as may be prescribed.

(5) Any registered person, who has furnished the

details under sub-section (2) for any tax period and

which have remained unmatched under section 42 or

section 43, shall, upon discovery of any error or

Central

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of 1975.

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LA GAZETTE DE L'ETAT

omission therein, rectify such error or omission in the

tax period during which such error or omission is

noticed in such manner as may be prescribed, and shall

pay the tax and interest, if any, in case there is a short

payment of tax on account of such error or omission,

in the return to be furnished for such tax period:

Provided that no rectification of error or

omission in respect of the details furnished under sub-

section (2) shall be allowed after furnishing of the

return under section 39 for the month of September

following the end of the financial year to which such

details pertain, or furnishing of the relevant annual

return, whichever is earlier.

39. (1) Every registered person, other than an

Input Service Distributor or a non-resident taxable

person or a person paying tax under the provisions of

section 10 or section 51 or section 52 shall, for every

calendar month or part thereof, furnish, in such form

and manner as may be prescribed, a return,

electronically, of inward and outward supplies of

goods or services or both, input tax credit availed, tax

payable, tax paid and such other particulars as may be

prescribed on or before the twentieth day of the month

succeeding such calendar month or part thereof.

(2) A registered person paying tax under the

provisions of section 10 shall, for each quarter or part

thereof, furnish, in such form and manner as may be

prescribed, a return, electronically, of turnover in the

State, inward supplies of goods or services or both, tax

payable and tax paid within eighteen days after the end

of such quarter.

(3) Every registered person required to

deduct tax at source under the provisions of

section 51 shall furnish, in such form and manner

as may be prescribed, a return, electronically, for

the month in which such deductions have been made

within ten days after the end of such month.

Furnishing

of returns.

380

LA GAZETTE DE L'ETAT

[PART–II

(4) Every taxable person registered as an Input

Service Distributor shall, for every calendar month or

part thereof, furnish, in such form and manner as may

be prescribed, a return, electronically, within thirteen

days after the end of such month.

(5) Every registered non-resident taxable person

shall, for every calendar month or part thereof, furnish,

in such form and manner as may be prescribed, a

return, electronically, within twenty days after the end

of a calendar month or within seven days after the last

day of the period of registration specified under sub-

section (1) of section 27, whichever is earlier.

(6) The Commissioner may, for reasons to be

recorded in writing, by notification, extend the time

limit for furnishing the returns under this section for

such class of registered persons as may be specified

therein:

Provided that any extension of time limit notified

by the Commissioner of central tax shall be deemed

to be notified by the Commissioner.

(7) Every registered person, who is required to

furnish a return under sub-section (1) or sub-section

(2) or sub-section (3) or sub-section (5), shall pay to

the Government the tax due as per such return not later

than the last date on which he is required to furnish

such return.

(8) Every registered person who is required to

furnish a return under sub-section (1) or sub-section

(2) shall furnish a return for every tax period whether

or not any supplies of goods or services or both have

been made during such tax period.

(9) Subject to the provisions of sections 37 and

38, if any registered person after furnishing a return

under sub-section (1) or sub-section (2) or sub-

section (3) or sub-section (4) or sub-section (5)

discovers any omission or incorrect particulars

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therein, other than as a result of scrutiny, audit,

inspection or enforcement activity by the tax

authorities, he shall rectify such omission or incorrect

particulars in the return to be furnished for the month

or quarter during which such omission or incorrect

particulars are noticed, subject to payment of interest

under this Act:

Provided that no such rectification of any

omission or incorrect particulars shall be allowed after

the due date for furnishing of return for the month of

September or second quarter following the end of the

financial year, or the actual date of furnishing of

relevant annual return, whichever is earlier.

(10) A registered person shall not be allowed to

furnish a return for a tax period if the return for any

of the previous tax periods has not been furnished by

him.

40. Every registered person who has made

outward supplies in the period between the date on

which he became liable to registration till the date on

which registration has been granted shall declare the

same in the first return furnished by him after grant

of registration.

41. (1) Every registered person shall, subject to

such conditions and restrictions as may be prescribed,

be entitled to take the credit of eligible input tax, as

self-assessed, in his return and such amount shall be

credited on a provisional basis to his electronic credit

ledger.

(2) The credit referred to in sub-section (1) shall

be utilised only for payment of self-assessed output

tax as per the return referred to in the said sub-section.

42. (1) The details of every inward supply

furnished by a registered person (hereafter in this

section referred to as the "recipient") for a tax period

shall, in such manner and within such time as may be

prescribed, be matched—

First return.

Claim of

input tax

credit and

provisional

acceptance

thereof.

Matching,

reversal and

reclaim of

input tax

credit.

382

LA GAZETTE DE L'ETAT

[PART–II

(a) with the corresponding details of outward

supply furnished by the corresponding registered

person (hereafter in this section referred to as

the "supplier") in his valid return for the same tax

period or any preceding tax period;

(b) with the integrated goods and services tax

paid under section 3 of the Customs Tariff

Act, 1975 in respect of goods imported by him; and

credit.

(2) The claim of input tax credit in respect of

invoices or debit notes relating to inward supply that

match with the details of corresponding outward

supply or with the integrated goods and services tax

paid under section 3 of the Customs Tariff Act, 1975

in respect of goods imported by him shall be finally

accepted and such acceptance shall be communicated,

in such manner as may be prescribed, to the recipient.

(3) Where the input tax credit claimed by a

recipient in respect of an inward supply is in excess

of the tax declared by the supplier for the same supply

or the outward supply is not declared by the supplier

in his valid returns, the discrepancy shall be communicated

to both such persons in such manner as may be

prescribed.

(4) The duplication of claims of input tax credit

shall be communicated to the recipient in such manner

as may be prescribed.

(5) The amount in respect of which any

discrepancy is communicated under sub-section (3)

and which is not rectified by the supplier in his valid

return for the month in which discrepancy is

communicated shall be added to the output tax liability

Central

Act 51

of 1975.

Central

Act 51

of 1975.

383

PART–II]

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of the recipient, in such manner as may be prescribed,

in his return for the month succeeding the month in

which the discrepancy is communicated.

(6) The amount claimed as input tax credit that

is found to be in excess on account of duplication of

claims shall be added to the output tax liability of the

recipient in his return for the month in which the

duplication is communicated.

(7) The recipient shall be eligible to reduce, from

his output tax liability, the amount added under sub-

section (5), if the supplier declares the details of the

invoice or debit note in his valid return within the time

specified in sub-section (9) of section 39.

(8) A recipient in whose output tax liability any

amount has been added under sub-section (5) or sub-

section (6), shall be liable to pay interest at the rate

specified under sub-section (1) of section 50 on the

amount so added from the date of availing of credit till

the corresponding additions are made under the said

sub-sections.

(9) Where any reduction in output tax liability is

accepted under sub-section (7), the interest paid under

sub-section (8) shall be refunded to the recipient by

crediting the amount in the corresponding head of his

electronic cash ledger in such manner as may be

prescribed:

Provided that the amount of interest to be

credited in any case shall not exceed the amount of

interest paid by the supplier.

(10) The amount reduced from the output tax

liability in contravention of the provisions of sub-

section (7) shall be added to the output tax liability of

the recipient in his return for the month in which such

contravention takes place and such recipient shall be

liable to pay interest on the amount so added at the rate

specified in sub-section (3) of section 50.

384

LA GAZETTE DE L'ETAT

[PART–II

43. (1) The details of every credit note relating

to outward supply furnished by a registered person

(hereafter in this section referred to as the "supplier")

for a tax period shall, in such manner and within such

time as may be prescribed, be matched—

(a) with the corresponding reduction in the

claim for input tax credit by the corresponding

registered person (hereafter in this section

referred to as the "recipient") in his valid return

for the same tax period or any subsequent tax

period; and

(b) for duplication of claims for reduction in

output tax liability.

(2) The claim for reduction in output tax liability

by the supplier that matches with the corresponding

reduction in the claim for input tax credit by the

recipient shall be finally accepted and communicated,

in such manner as may be prescribed, to the supplier.

(3) Where the reduction of output tax liability in

respect of outward supplies exceeds the corresponding

reduction in the claim for input tax credit or the

corresponding credit note is not declared by the

recipient in his valid returns, the discrepancy shall be

communicated to both such persons in such manner as

may be prescribed.

(4) The duplication of claims for reduction in

output tax liability shall be communicated to the

supplier in such manner as may be prescribed.

(5) The amount in respect of which any

discrepancy is communicated under sub-section (3)

and which is not rectified by the recipient in his valid

return for the month in which discrepancy is

communicated shall be added to the output tax liability

of the supplier, in such manner as may be prescribed,

in his return for the month succeeding the month in

which the discrepancy is communicated.

Matching,

reversal and

reclaim of

reduction in

output tax

liability.

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(6) The amount in respect of any reduction in

output tax liability that is found to be on account of

duplication of claims shall be added to the output tax

liability of the supplier in his return for the month in

which such duplication is communicated.

(7) The supplier shall be eligible to reduce, from

his output tax liability, the amount added under sub-

section (5) if the recipient declares the details of the

credit note in his valid return within the time specified

in sub-section (9) of section 39.

(8) A supplier in whose output tax liability any

amount has been added under sub-section (5) or sub-

section (6), shall be liable to pay interest at the rate

specified under sub-section (1) of section 50 in

respect of the amount so added from the date of such

claim for reduction in the output tax liability till the

corresponding additions are made under the said sub-

sections.

(9) Where any reduction in output tax liability is

accepted under sub-section (7), the interest paid under

sub-section (8) shall be refunded to the supplier by

crediting the amount in the corresponding head of his

electronic cash ledger in such manner as may be

prescribed:

Provided that the amount of interest to be

credited in any case shall not exceed the amount of

interest paid by the recipient.

(10) The amount reduced from output tax liability

in contravention of the provisions of sub-section (7)

shall be added to the output tax liability of the supplier

in his return for the month in which such contravention

takes place and such supplier shall be liable to pay

interest on the amount so added at the rate specified

in sub-section (3) of section 50.

44. (1) Every registered person, other than an Input

Service Distributor, a person paying tax under section

51 or section 52, a casual taxable person and a non-

resident taxable person, shall furnish an annual return

Annual

return.

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LA GAZETTE DE L'ETAT

[PART–II

for every financial year electronically in such form and

manner as may be prescribed on or before the thirty-

first day of December following the end of such

financial year.

(2) Every registered person who is required to

get his accounts audited in accordance with the

provisions of sub-section (5) of section 35 shall

furnish, electronically, the annual return under sub-

section (1) along with a copy of the audited annual

accounts and a reconciliation statement, reconciling

the value of supplies declared in the return furnished

for the financial year with the audited annual financial

statement, and such other particulars as may be

prescribed.

45. Every registered person who is required to

furnish a return under sub-section (1) of section 39

and whose registration has been cancelled shall furnish

a final return within three months of the date of

cancellation or date of order of cancellation,

whichever is later, in such form and manner as may be

prescribed.

46. Where a registered person fails to furnish a

return under section 39 or section 44 or section 45, a

notice shall be issued requiring him to furnish such

return within fifteen days in such form and manner as

may be prescribed.

47. (1) Any registered person who fails to

furnish the details of outward or inward supplies

required under section 37 or section 38 or returns

required under section 39 or section 45 by the due

date shall pay a late fee of one hundred rupees for

every day during which such failure continues subject

to a maximum amount of five thousand rupees.

(2) Any registered person who fails to furnish the

return required under section 44 by the due date shall

be liable to pay a late fee of one hundred rupees for

Final return.

Notice to

return

defaulters.

Levy of late

fee.

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PART–II]

LA GAZETTE DE L'ETAT

every day during which such failure continues subject

to a maximum of an amount calculated at a quarter per

cent. of his turnover in the State.

48. (1) The manner of approval of goods and

services tax practitioners, their eligibility conditions,

duties and obligations, manner of removal and other

conditions relevant for their functioning shall be such

as may be prescribed.

(2) A registered person may authorise an

approved goods and services tax practitioner to furnish

the details of outward supplies under section 37, the

details of inward supplies under section 38 and the

return under section 39 or section 44 or section 45

in such manner as may be prescribed.

(3) Notwithstanding anything contained in sub-

section (2), the responsibility for correctness of any

particulars furnished in the return or other details filed

by the goods and services tax practitioners shall

continue to rest with the registered person on whose

behalf such return and details are furnished.

CHAPTER X

PAYMENT OF TAX

49. (1) Every deposit made towards tax, interest,

penalty, fee or any other amount by a person by internet

banking or by using credit or debit cards or National

Electronic Fund Transfer or Real Time Gross Settlement

or by such other mode and subject to such conditions

and restrictions as may be prescribed, shall be credited

to the electronic cash ledger of such person to be

maintained in such manner as may be prescribed.

(2) The input tax credit as self-assessed in the

return of a registered person shall be credited to his

electronic credit ledger, in accordance with section 41,

to be maintained in such manner as may be prescribed.

(3) The amount available in the electronic cash

Goods and

services tax

practitioners.

Payment of

tax, interest,

penalty and

other

amounts.

388

LA GAZETTE DE L'ETAT

[PART–II

ledger may be used for making any payment towards

tax, interest, penalty, fees or any other amount payable

under the provisions of this Act or the rules made

thereunder in such manner and subject to such

conditions and within such time as may be prescribed.

(4) The amount available in the electronic credit

ledger may be used for making any payment towards

output tax under this Act or under the Integrated Goods

and Services Tax Act in such manner and subject to

such conditions and within such time as may be

prescribed.

(5) The amount of input tax credit available in the

electronic credit ledger of the registered person on

account of —

(a) integrated tax shall first be utilised towards

payment of integrated tax and the amount

remaining, if any, may be utilised towards the

payment of central tax and State tax, or as the

case may be, Union territory tax, in that order;

(b) the central tax shall first be utilised towards

payment of central tax and the amount remaining,

if any, may be utilised towards the payment of

integrated tax;

payment of State tax and the amount remaining,

if any, may be utilised towards the payment of

integrated tax;

(d) the Union territory tax shall first be

utilised towards payment of Union territory tax

and the amount remaining, if any, may be utilised

towards the payment of integrated tax;

(e) the central tax shall not be utilised towards

payment of State tax or Union territory tax; and

(f) the State tax or Union territory tax shall

not be utilised towards payment of central tax.

(6) The balance in the electronic cash ledger or

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PART–II]

LA GAZETTE DE L'ETAT

electronic credit ledger after payment of tax, interest,

penalty, fee or any other amount payable under this Act

or the rules made thereunder may be refunded in

accordance with the provisions of section 54.

(7) All liabilities of a taxable person under this

Act shall be recorded and maintained in an electronic

liability register in such manner as may be prescribed.

(8) Every taxable person shall discharge his tax

and other dues under this Act or the rules made

thereunder in the following order, namely:—

(a) self-assessed tax, and other dues related to

returns of previous tax periods;

(b) self-assessed tax, and other dues related to

the return of the current tax period;

or the rules made thereunder including the

demand determined under section 73 or section 74.

(9) Every person who has paid the tax on goods

or services or both under this Act shall, unless the

contrary is proved by him, be deemed to have passed

on the full incidence of such tax to the recipient of

such goods or services or both.

Explanation.—For the purposes of this section,

(a) the date of credit to the account of the

Government in the authorised bank shall be

deemed to be the date of deposit in the

electronic cash ledger;

(b) the expression,-

(i) "tax dues" means the tax payable under

this Act and does not include interest, fee and

penalty; and

(ii) "other dues" means interest, penalty,

fee or any other amount payable under this Act

or the rules made thereunder.

390

LA GAZETTE DE L'ETAT

[PART–II

50. (1) Every person who is liable to pay tax in

accordance with the provisions of this Act or the rules

made thereunder, but fails to pay the tax or any part

thereof to the Government within the period

prescribed, shall for the period for which the tax or

any part thereof remains unpaid, pay, on his own,

interest at such rate, not exceeding eighteen per cent.,

as may be notified by the Government on the

recommendations of the Council.

(2) The interest under sub-section (1) shall be

calculated, in such manner as may be prescribed, from

the day succeeding the day on which such tax was due

to be paid.

(3) A taxable person who makes an undue or

excess claim of input tax credit under sub-section (10)

of section 42 or undue or excess reduction in output

tax liability under sub-section (10) of section 43, shall

pay interest on such undue or excess claim or on such

undue or excess reduction, as the case may be, at such

rate not exceeding twenty-four per cent., as may be

notified by the Government on the recommendations

of the Council.

51. (1) Notwithstanding anything to the contrary

contained in this Act, the Government may mandate,-

(a) a department or establishment of the

Central Government or State Government; or

(b) local authority; or

(d) such persons or category of persons as may

notified

the

Government

the

recommendations of the Council,

(hereafter in this section referred to as "the deductor"),

to deduct tax at the rate of one per cent. from the

payment made or credited to the supplier (hereafter in

this section referred to as "the deductee") of taxable

goods or services or both, where the total value of

such supply, under a contract, exceeds two lakh and

fifty thousand rupees:

Interest on

delayed

payment of

tax.

Tax

deduction at

source.

391

PART–II]

LA GAZETTE DE L'ETAT

Provided that no deduction shall be made if the

location of the supplier and the place of supply is in a

State or Union territory which is different from the

State or, as the case may be, Union territory of

registration of the recipient.

Explanation.—For the purpose of deduction of

tax specified above, the value of supply shall be taken

as the amount excluding the central tax, State tax,

integrated tax and cess indicated in the invoice.

(2) The amount deducted as tax under this section

shall be paid to the Government by the deductor within

ten days after the end of the month in which such

deduction is made, in such manner as may be

prescribed.

(3) The deductor shall furnish to the deductee a

certificate mentioning therein the contract value, rate

of deduction, amount deducted, amount paid to the

Government and such other particulars in such manner

as may be prescribed.

(4) If any deductor fails to furnish to the

deductee the certificate, after deducting the tax at

source, within five days of crediting the amount so

deducted to the Government, the deductor shall pay, by

way of a late fee, a sum of one hundred rupees per day

from the day after the expiry of such five day period

until the failure is rectified, subject to a maximum

amount of five thousand rupees.

(5) The deductee shall claim credit, in his

electronic cash ledger, of the tax deducted and

reflected in the return of the deductor furnished under

sub-section (3) of section 39, in such manner as may

be prescribed.

(6) If any deductor fails to pay to the Government

the amount deducted as tax under sub-section (1), he

shall pay interest in accordance with the provisions of

sub-section (1) of section 50, in addition to the

amount of tax deducted.

392

LA GAZETTE DE L'ETAT

[PART–II

(7) The determination of the amount in default

under this section shall be made in the manner

specified in section 73 or section 74.

(8) The refund to the deductor or the deductee

arising on account of excess or erroneous deduction shall

be dealt with in accordance with the provisions of section 54:

Provided that no refund to the deductor shall be

granted, if the amount deducted has been credited to

the electronic cash ledger of the deductee.

52. (1) Notwithstanding anything to the contrary

contained in this Act, every electronic commerce

operator (hereafter in this section referred to as the

"operator"), not being an agent, shall collect an amount

calculated at such rate not exceeding one per cent., as

may be notified by the Government on the

recommendations of the Council, of the net value of

taxable supplies made through it by other suppliers

where the consideration with respect to such supplies

is to be collected by the operator.

Explanation.—For the purposes of this sub-section,

the expression "net value of taxable supplies" shall

mean the aggregate value of taxable supplies of goods

or services or both, other than services notified under

sub-section (5) of section 9, made during any month

by all registered persons through the operator reduced

by the aggregate value of taxable supplies returned to

the suppliers during the said month.

(2) The power to collect the amount specified in

sub-section (1) shall be without prejudice to any other

mode of recovery from the operator.

(3) The amount collected under sub-section (1)

shall be paid to the Government by the operator within

ten days after the end of the month in which such

collection is made, in such manner as may be

prescribed.

Collection of

tax at

source.

393

PART–II]

LA GAZETTE DE L'ETAT

(4) Every operator who collects the amount

specified in sub-section (1) shall furnish a statement,

electronically, containing the details of outward

supplies of goods or services or both effected through

it, including the supplies of goods or services or both

returned through it, and the amount collected under

sub-section (1) during a month, in such form and

manner as may be prescribed, within ten days after the

end of such month.

(5) Every operator who collects the amount

specified in sub-section (1) shall furnish an annual

statement, electronically, containing the details of

outward supplies of goods or services or both effected

through it, including the supplies of goods or services

or both returned through it, and the amount collected

under the said sub-section during the financial year, in

such form and manner as may be prescribed, before the

thirty first day of December following the end of such

financial year.

(6) If any operator after furnishing a statement

under sub-section (4) discovers any omission or

incorrect particulars therein, other than as a result of

scrutiny, audit, inspection or enforcement activity by

the tax authorities, he shall rectify such omission or

incorrect particulars in the statement to be furnished

for the month during which such omission or incorrect

particulars are noticed, subject to payment of interest,

as specified in sub-section (1) of section 50:

Provided that no such rectification of any

omission or incorrect particulars shall be allowed after

the due date for furnishing of statement for the month

of September following the end of the financial year

or the actual date of furnishing of the relevant annual

statement, whichever is earlier.

(7) The supplier who has supplied the goods or

services or both through the operator shall claim

credit, in his electronic cash ledger, of the amount

394

LA GAZETTE DE L'ETAT

[PART–II

collected and reflected in the statement of the operator

furnished under sub-section (4), in such manner as may

be prescribed.

(8) The details of supplies furnished by every

operator under sub-section (4) shall be matched with

the corresponding details of outward supplies

furnished by the concerned supplier registered under

this Act in such manner and within such time as may

be prescribed.

(9) Where the details of outward supplies

furnished by the operator under sub-section (4) do not

match with the corresponding details furnished by the

supplier under section 37, the discrepancy shall be

communicated to both persons in such manner and

within such time as may be prescribed.

(10) The amount in respect of which any

discrepancy is communicated under sub-section (9)

and which is not rectified by the supplier in his valid

return or the operator in his statement for the month

in which discrepancy is communicated, shall be added

to the output tax liability of the said supplier, where

the value of outward supplies furnished by the operator

is more than the value of outward supplies furnished

by the supplier, in his return for the month succeeding

the month in which the discrepancy is communicated

in such manner as may be prescribed.

(11) The concerned supplier, in whose output tax

liability any amount has been added under sub-section

(10), shall pay the tax payable in respect of such

supply along with interest, at the rate specified under

sub-section (1) of section 50 on the amount so added

from the date such tax was due till the date of its

payment.

(12) Any authority not below the rank of Deputy

Commissioner may serve a notice, either before or

during the course of any proceedings under this Act,

requiring the operator to furnish such details relating

to—

395

PART–II]

LA GAZETTE DE L'ETAT

(a) supplies of goods or services or both

effected through such operator during any period;

(b) stock of goods held by the suppliers making

supplies through such operator in the godowns

or warehouses, by whatever name called, managed

by such operator and declared as additional

places of business by such suppliers,

as may be specified in the notice.

(13) Every operator on whom a notice has been

served under sub-section (12) shall furnish the

required information within fifteen working days of the

date of service of such notice.

(14) Any person who fails to furnish the

information required by the notice served under sub-

section (12) shall, without prejudice to any action that

may be taken under section 122, be liable to a penalty

which may extend to twenty-five thousand rupees.

Explanation.—For the purposes of this section,

the expression "concerned supplier" shall mean the

supplier of goods or services or both making supplies

through the operator.

53. On utilisation of input tax credit availed under

this Act for payment of tax dues under the Integrated

Goods and Services Tax Act in accordance with the

provisions of sub-section (5) of section 49, as reflected

in the valid return furnished under sub-section (1) of

section 39, the amount collected as State tax shall stand

reduced by an amount equal to such credit so utilised

and the State Government shall transfer an amount

equal to the amount so reduced from the State tax

account to the integrated tax account in such manner

and within such time as may be prescribed.

Transfer of

input tax

credit.

396

LA GAZETTE DE L'ETAT

[PART–II

CHAPTER XI

REFUNDS

54. (1) Any person claiming refund of any tax and

interest, if any, paid on such tax or any other amount

paid by him, may make an application before the expiry

of two years from the relevant date in such form and

manner as may be prescribed:

Provided that a registered person, claiming refund

of any balance in the electronic cash ledger in

accordance with the provisions of sub-section (6) of

section 49, may claim such refund in the return

furnished under section 39 in such manner as may be

prescribed.

(2) A specialized agency of the United Nations

Organization or any Multilateral Financial Institution

and Organization notified under the United Nations

(Privileges and Immunities) Act, 1947, Consulate or

Embassy of foreign countries or any other person or

class of persons, as notified under section 55, entitled

to a refund of tax paid by it on inward supplies of

goods or services or both, may make an application for

such refund, in such form and manner as may be

prescribed, before the expiry of six months from the

last day of the quarter in which such supply was

received.

(3) Subject to the provisions of sub-section (10),

a registered person may claim refund of any unutilised

input tax credit at the end of any tax period:

Provided that no refund of unutilised input tax

credit shall be allowed in cases other than-

(i) zero-rated supplies made without payment

of tax;

(ii) where the credit has accumulated on

account of rate of tax on inputs being higher than

the rate of tax on output supplies (other than nil

rated or fully exempt supplies), except supplies

Refund of

tax.

Central

Act 46

of 1947.

397

PART–II]

LA GAZETTE DE L'ETAT

of goods or services or both as may be notified

by the Government on the recommendations of the

Council:

Provided further that no refund of unutilised input

tax credit shall be allowed in cases where the goods

exported out of India are subjected to export duty:

Provided also that no refund of input tax credit

shall be allowed, if the supplier of goods or services

or both claims refund of the integrated tax paid on such

supplies.

(4) The application shall be accompanied by—

(a) such documentary evidence as may be

prescribed to establish that a refund is due to the

applicant; and

(b) such documentary or other evidence

(including the documents referred to in section

33) as the applicant may furnish to establish that

the amount of tax and interest, if any, paid on

such tax or any other amount paid in relation to

which such refund is claimed was collected from,

or paid by, him and the incidence of such tax and

interest had not been passed on to any other

person:

Provided that where the amount claimed as refund

is less than two lakh rupees, it shall not be necessary

for the applicant to furnish any documentary and other

evidences but he may file a declaration, based on the

documentary or other evidences available with him,

certifying that the incidence of such tax and interest

had not been passed on to any other person.

(5) If, on receipt of any such application, the

proper officer is satisfied that the whole or part of the

amount claimed as refund is refundable, he may make

an order accordingly and the amount so determined

shall be credited to the Fund referred to in section 57.

(6) Notwithstanding anything contained in sub-

398

LA GAZETTE DE L'ETAT

[PART–II

section (5), the proper officer may, in the case of any

claim for refund on account of zero-rated supply of

goods or services or both made by registered persons,

other than such category of registered persons as may

be notified by the Government on the recommendations

of the Council, refund on a provisional basis, ninety

per cent. of the total amount so claimed, excluding the

amount of input tax credit provisionally accepted, in

such manner and subject to such conditions, limitations

and safeguards as may be prescribed and thereafter

make an order under sub-section (5) for final

settlement of the refund claim after due verification

of documents furnished by the applicant.

(7) The proper officer shall issue the order under

sub-section (5) within sixty days from the date of

receipt of application complete in all respects.

(8) Notwithstanding anything contained in sub-

section (5), the refundable amount shall, instead of

being credited to the Fund, be paid to the applicant, if

such amount is relatable to—

(a) refund of tax paid on zero-rated supplies of

goods or services or both or on inputs or input

services used in making such zero-rated supplies;

(b) refund of unutilised input tax credit under

sub-section (3);

provided, either wholly or partially, and for which

invoice has not been issued, or where a refund

voucher has been issued;

(d) refund of tax in pursuance of section 77;

(e) the tax and interest, if any, or any other

amount paid by the applicant, if he had not passed

on the incidence of such tax and interest to any

other person; or

(f) the tax or interest borne by such other class

399

PART–II]

LA GAZETTE DE L'ETAT

of applicants as the Government may, on the

recommendations of the Council, by notification,

specify.

(9) Notwithstanding anything to the contrary

contained in any judgment, decree, order or direction

of the Appellate Tribunal or any court or in any other

provisions of this Act or the rules made thereunder or

in any other law for the time being in force, no refund

shall be made except in accordance with the provisions

of sub-section (8).

(10) Where any refund is due under sub-section

(3) to a registered person who has defaulted in

furnishing any return or who is required to pay any tax,

interest or penalty, which has not been stayed by any

court, Tribunal or Appellate Authority by the specified

date, the proper officer may—

(a) withhold payment of refund due until the

said person has furnished the return or paid the

tax, interest or penalty, as the case may be;

(b) deduct from the refund due, any tax,

interest, penalty, fee or any other amount which

the taxable person is liable to pay but which

remains unpaid under this Act or under the

existing law.

Explanation.—For the purposes of this sub-

section, the expression "specified date" shall mean the

last date for filing an appeal under this Act.

(11) Where an order giving rise to a refund is the

subject matter of an appeal or further proceedings or

where any other proceedings under this Act is pending

and the Commissioner is of the opinion that grant of

such refund is likely to adversely affect the revenue

in the said appeal or other proceedings on account of

malfeasance or fraud committed, he may, after giving

the taxable person an opportunity of being heard,

withhold the refund till such time as he may determine.

(12) Where a refund is withheld under sub-section

400

LA GAZETTE DE L'ETAT

[PART–II

(11), the taxable person shall, notwithstanding anything

contained in section 56, be entitled to interest at such

rate not exceeding six per cent. as may be notified on

the recommendations of the Council, if as a result of

the appeal or further proceedings he becomes entitled

to refund.

(13) Notwithstanding anything to the contrary

contained in this section, the amount of advance tax

deposited by a casual taxable person or a non-resident

taxable person under sub-section (2) of section 27,

shall not be refunded unless such person has, in respect

of the entire period for which the certificate of

registration granted to him had remained in force,

furnished all the returns required under section 39.

(14) Notwithstanding anything contained in this

section, no refund under sub-section (5) or sub-section

(6) shall be paid to an applicant, if the amount is less

than one thousand rupees.

Explanation.—For

the

purposes

this

section,—

(1) "refund" includes refund of tax paid on

zero-rated supplies of goods or services or both

or on inputs or input services used in making

such zero-rated supplies, or refund of tax on the

supply of goods regarded as deemed exports, or

refund of unutilised input tax credit as provided

under sub-section (3).

(2) "relevant date" means—

(a) in the case of goods exported out of India

where a refund of tax paid is available in respect

of goods themselves or, as the case may be, the

inputs or input services used in such goods,—

(i) if the goods are exported by sea or

air, the date on which the ship or the aircraft

in which such goods are loaded, leaves India;

(ii) if the goods are exported by land, the

401

PART–II]

LA GAZETTE DE L'ETAT

date on which such goods pass the frontier; or

(iii) if the goods are exported by post, the

date of despatch of goods by the Post Office

concerned to a place outside India;

(b) in the case of supply of goods regarded as

deemed exports where a refund of tax paid is

available in respect of the goods, the date on

which the return relating to such deemed exports

is furnished;

India where a refund of tax paid is available in

respect of services themselves or, as the case

may be, the inputs or input services used in such

services, the date of—

(i) receipt of payment in convertible

foreign exchange, where the supply of

services had been completed prior to the

receipt of such payment; or

(ii) issue of invoice, where payment for

the services had been received in advance prior

to the date of issue of the invoice;

(d) in case where the tax becomes refundable

as a consequence of judgment, decree, order or

direction of the Appellate Authority, Appellate

Tribunal or any court, the date of communication

of such judgment, decree, order or direction;

(e) in the case of refund of unutilised input tax

credit under sub-section (3), the end of the

financial year in which such claim for refund

arises;

(f) in the case where tax is paid provisionally

under this Act or the rules made thereunder, the

date of adjustment of tax after the final

assessment thereof;

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LA GAZETTE DE L'ETAT

[PART–II

(g) in the case of a person, other than the

supplier, the date of receipt of goods or services

or both by such person; and

(h) in any other case, the date of payment of

tax.

55. The Government may, on the recommendations

of the Council, by notification, specify any specialized

agency of the United Nations Organization or any

Multilateral Financial Institution and Organization

notified under the United Nations (Privileges and

Immunities) Act, 1947, Consulate or Embassy of

foreign countries and any other person or class of

persons as may be specified in this behalf, who shall,

subject to such conditions and restrictions as may be

prescribed, be entitled to claim a refund of taxes paid

on the notified supplies of goods or services or both

received by them.

56. If any tax ordered to be refunded under

sub-section (5) of section 54 to any applicant is not

refunded within sixty days from the date of receipt of

application under sub-section (1) of that section,

interest at such rate not exceeding six per cent. as may

be specified in the notification issued by the

Government on the recommendations of the Council

shall be payable in respect of such refund from the

date immediately after the expiry of sixty days from

the date of receipt of application under the said

sub-section till the date of refund of such tax:

Provided that where any claim of refund arises

from an order passed by an adjudicating authority or

Appellate Authority or Appellate Tribunal or court

which has attained finality and the same is not refunded

within sixty days from the date of receipt of

application filed consequent to such order, interest at

such rate not exceeding nine per cent. as may be

notified by the Government on the recommendations

Refund in

certain

cases.

Central

Act 46

of 1947.

Interest on

delayed

refunds.

403

PART–II]

LA GAZETTE DE L'ETAT

of the Council shall be payable in respect of such

refund from the date immediately after the expiry of sixty

days from the date of receipt of application till the date

of refund.

Explanation.—For the purposes of this section,

where any order of refund is made by an Appellate

Authority, Appellate Tribunal or any court against an

order of the proper officer under sub-section (5) of

section 54, the order passed by the Appellate Authority,

Appellate Tribunal or by the court shall be deemed to

be an order passed under the said sub-section (5).

57. The Government shall constitute a Fund, to

be called the Consumer Welfare Fund and there shall

be credited to the Fund,—

(a) the amount referred to in sub-section (5)

of section 54;

(b) any income from investment of the amount

credited to the Fund; and

in such manner as may be prescribed.

58. (1) All sums credited to the Fund shall be

utilised by the Government for the welfare of the

consumers in such manner as may be prescribed.

(2) The Government or the authority specified by

it shall maintain proper and separate account and other

relevant records in relation to the Fund and prepare an

annual statement of accounts in such form as may be

prescribed in consultation with the Comptroller and

Auditor General of India.

CHAPTER—XII

ASSESSMENT

59. Every registered person shall self-assess the

taxes payable under this Act and furnish a return for

each tax period as specified under section 39.

Self-

assessment.

Consumer

Welfare

Fund.

Utilisation

of Fund.

404

LA GAZETTE DE L'ETAT

[PART–II

60. (1) Subject to the provisions of sub-section (2),

where the taxable person is unable to determine the

value of goods or services or both or determine the rate

of tax applicable thereto, he may request the proper

officer in writing giving reasons for payment of tax on

a provisional basis and the proper officer shall pass an

order, within a period not later than ninety days from

the date of receipt of such request, allowing payment

of tax on provisional basis at such rate or on such value

as may be specified by him.

(2) The payment of tax on provisional basis may

be allowed, if the taxable person executes a bond in

such form as may be prescribed, and with such surety

or security as the proper officer may deem fit, binding

the taxable person for payment of the difference

between the amount of tax as may be finally assessed

and the amount of tax provisionally assessed.

(3) The proper officer shall, within a period not

exceeding six months from the date of the

communication of the order issued under sub-section

(1), pass the final assessment order after taking into

account such information as may be required for

finalizing the assessment:

Provided that the period specified in this sub-

section may, on sufficient cause being shown and for

reasons to be recorded in writing, be extended by the

Joint Commissioner or Additional Commissioner for

a further period not exceeding six months and by the

Commissioner for such further period not exceeding

four years.

(4) The registered person shall be liable to pay

interest on any tax payable on the supply of goods or

services or both under provisional assessment but not

paid on the due date specified under sub-section (7)

of section 39 or the rules made thereunder, at the rate

specified under sub-section (1) of section 50, from

the first day after the due date of payment of tax in

Provisional

assessment.

405

PART–II]

LA GAZETTE DE L'ETAT

respect of the said supply of goods or services or both

till the date of actual payment, whether such amount is

paid before or after the issuance of order for final

assessment.

(5) Where the registered person is entitled to a

refund consequent to the order of final assessment

under sub-section (3), subject to the provisions of

sub-section (8) of section 54, interest shall be paid on

such refund as provided in section 56.

61. (1) The proper officer may scrutinize the

return and related particulars furnished by the

registered person to verify the correctness of the

return and inform him of the discrepancies noticed, if

any, in such manner as may be prescribed and seek his

explanation thereto.

(2) In case the explanation is found acceptable,

the registered person shall be informed accordingly

and no further action shall be taken in this regard.

(3) In case no satisfactory explanation is

furnished within a period of thirty days of being

informed by the proper officer or such further period

as may be permitted by him or where the registered

person, after accepting the discrepancies, fails to take

the corrective measure in his return for the month in

which the discrepancy is accepted, the proper officer

may initiate appropriate action including those under

section 65 or section 66 or section 67, or proceed to

determine the tax and other dues under section 73 or

section 74.

62. (1) Notwithstanding anything to the contrary

contained in section 73 or section 74, where a

registered person fails to furnish the return under

section 39 or section 45, even after the service of a

notice under section 46, the proper officer may

proceed to assess the tax liability of the said person

to the best of his judgement taking into account all the

Scrutiny of

returns.

Assessment

of non-filers

of returns.

406

LA GAZETTE DE L'ETAT

[PART–II

relevant material which is available or which he has

gathered and issue an assessment order within a period

of five years from the date specified under section 44

for furnishing of the annual return for the financial year

to which the tax not paid relates.

(2) Where the registered person furnishes a valid

return within thirty days of the service of the

assessment order under sub-section (1), the said

assessment order shall be deemed to have been

withdrawn but the liability for payment of interest

under sub-section (1) of section 50 or for payment of

late fee under section 47 shall continue.

63. Notwithstanding anything to the contrary

contained in section 73 or section 74, where a taxable

person fails to obtain registration even though liable

to do so or whose registration has been cancelled

under sub-section (2) of section 29 but who was liable

to pay tax, the proper officer may proceed to assess

the tax liability of such taxable person to the best of

his judgement for the relevant tax periods and issue an

assessment order within a period of five years from

the date specified under section 44 for furnishing of

the annual return for the financial year to which the

tax not paid relates:

Provided that no such assessment order shall be

passed without giving the person an opportunity of

being heard.

64. (1) The proper officer may, on any evidence

showing a tax liability of a person coming to his

notice, with the previous permission of Additional

Commissioner or Joint Commissioner, proceed to

assess the tax liability of such person to protect the

interest of revenue and issue an assessment order, if

he has sufficient grounds to believe that any delay in

doing so may adversely affect the interest of revenue:

Provided that where the taxable person to whom

the liability pertains is not ascertainable and such

liability pertains to supply of goods, the person in

Assessment

unregistered

persons.

Summary

assessment

in certain

special

cases.

407

PART–II]

LA GAZETTE DE L'ETAT

charge of such goods shall be deemed to be the taxable

person liable to be assessed and liable to pay tax and

any other amount due under this section.

(2) On an application made by the taxable person

within thirty days from the date of receipt of order

passed under sub-section (1) or on his own motion, if

the Additional Commissioner or Joint Commissioner

considers that such order is erroneous, he may

withdraw such order and follow the procedure laid

down in section 73 or section 74.

CHAPTER XIII

AUDIT

65. (1) The Commissioner or any officer

authorised by him, by way of a general or a specific

order, may undertake audit of any registered person for

such period, at such frequency and in such manner as

may be prescribed.

(2) The officers referred to in sub-section (1)

may conduct audit at the place of business of the

registered person or in their office.

(3) The registered person shall be informed by

way of a notice not less than fifteen working days prior

to the conduct of audit in such manner as may be

prescribed.

(4) The audit under sub-section (1) shall be

completed within a period of three months from the

date of commencement of the audit:

Provided that where the Commissioner is

satisfied that audit in respect of such registered person

cannot be completed within three months, he may, for

the reasons to be recorded in writing, extend the

period by a further period not exceeding six months.

Explanation.—For the purposes of this sub-

section, the expression "commencement of audit" shall

mean the date on which the records and other

documents, called for by the tax authorities, are made

Audit by tax

authorities.

408

LA GAZETTE DE L'ETAT

[PART–II

available by the registered person or the actual

institution of audit at the place of business, whichever

is later.

(5) During the course of audit, the authorised

officer may require the registered person,—

(i) to afford him the necessary facility to

verify the books of account or other

documents as he may require;

(ii) to furnish such information as he

may require and render assistance for timely

completion of the audit.

(6) On conclusion of audit, the proper officer

shall, within thirty days, inform the registered person,

whose records are audited, about the findings, his

rights and obligations and the reasons for such

findings.

(7) Where the audit conducted under sub-section (1)

results in detection of tax not paid or short paid or

erroneously refunded, or input tax credit wrongly

availed or utilised, the proper officer may initiate

action under section 73 or section 74.

66. (1) If at any stage of scrutiny, inquiry,

investigation or any other proceedings before him, any

officer not below the rank of Assistant Commissioner,

having regard to the nature and complexity of the case

and the interest of revenue, is of the opinion that the

value has not been correctly declared or the credit

availed is not within the normal limits, he may, with

the prior approval of the Commissioner, direct such

registered person by a communication in writing to get

his records including books of account examined and

audited by a chartered accountant or a cost accountant

as may be nominated by the Commissioner.

(2) The chartered accountant or cost accountant

so nominated shall, within the period of ninety days,

submit a report of such audit duly signed and certified

by him to the said Assistant Commissioner mentioning

therein such other particulars as may be specified:

Special audit.

409

PART–II]

LA GAZETTE DE L'ETAT

Provided that the Assistant Commissioner may, on

an application made to him in this behalf by the

registered person or the chartered accountant or cost

accountant or for any material and sufficient reason,

extend the said period by a further period of ninety

days.

(3) The provisions of sub-section (1) shall have

effect notwithstanding that the accounts of the

registered person have been audited under any other

provisions of this Act or any other law for the time

being in force.

(4) The registered person shall be given an

opportunity of being heard in respect of any material

gathered on the basis of special audit under sub-

section (1) which is proposed to be used in any

proceedings against him under this Act or the rules

made thereunder.

(5) The expenses of the examination and audit of

records

under

sub-section

(1),

including

the

remuneration of such chartered accountant or cost

accountant, shall be determined and paid by the

Commissioner and such determination shall be final.

(6) Where the special audit conducted under sub-

section (1) results in detection of tax not paid or short

paid or erroneously refunded, or input tax credit

wrongly availed or utilised, the proper officer may

initiate action under section 73 or section 74.

CHAPTER XIV

INSPECTION, SEARCH, SEIZURE AND ARREST

67. (1) Where the proper officer, not below the rank

of Joint Commissioner, has reasons to believe that—

(a) a taxable person has suppressed any

transaction relating to supply of goods or

services or both or the stock of goods in hand,

or has claimed input tax credit in excess of his

Power of

inspection,

search and

seizure.

410

LA GAZETTE DE L'ETAT

[PART–II

entitlement under this Act or has indulged in

contravention of any of the provisions of this Act

or the rules made thereunder to evade tax under

this Act; or

(b) any person engaged in the business of

transporting goods or an owner or operator of a

warehouse or a godown or any other place is

keeping goods which have escaped payment of

tax or has kept his accounts or goods in such a

manner as is likely to cause evasion of tax

payable under this Act,

he may authorise in writing any other officer of State

tax to inspect any places of business of the taxable

person or the persons engaged in the business of

transporting goods or the owner or the operator of

warehouse or godown or any other place.

(2) Where the proper officer, not below the rank

of Joint Commissioner, either pursuant to an

inspection carried out under sub-section (1) or

otherwise, has reasons to believe that any goods liable

to confiscation or any documents or books or things,

which in his opinion shall be useful for or relevant to

any proceedings under this Act, are secreted in any

place, he may authorise in writing any other officer of

State tax to search and seize or may himself search and

seize such goods, documents or books or things:

Provided that where it is not practicable to seize

any such goods, the proper officer, or any officer

authorised by him, may serve on the owner or the

custodian of the goods an order that he shall not

remove, part with, or otherwise deal with the goods

except with the previous permission of such officer:

Provided further that the documents or books or

things so seized shall be retained by such officer only

for so long as may be necessary for their examination

and for any inquiry or proceedings under this Act.

411

PART–II]

LA GAZETTE DE L'ETAT

(3) The documents, books or things referred to in

sub-section (2) or any other documents, books or things

produced by a taxable person or any other person,

which have not been relied upon for the issue of notice

under this Act or the rules made thereunder, shall be

returned to such person within a period not exceeding

thirty days of the issue of the said notice.

(4) The officer authorised under sub-section (2)

shall have the power to seal or break open the door of

any premises or to break open any almirah, electronic

devices, box, receptacle in which any goods, accounts,

registers or documents of the person are suspected to

be concealed, where access to such premises, almirah,

electronic devices, box or receptacle is denied.

(5) The person from whose custody any

documents are seized under sub-section (2) shall

be entitled to make copies thereof or take extracts

therefrom in the presence of an authorised officer at

such place and time as such officer may indicate in

this behalf except where making such copies or taking

such extracts may, in the opinion of the proper officer,

prejudicially affect the investigation.

(6) The goods so seized under sub-section (2)

shall be released, on a provisional basis, upon

execution of a bond and furnishing of a security, in

such manner and of such quantum, respectively, as may

be prescribed or on payment of applicable tax, interest

and penalty payable, as the case may be.

(7) Where any goods are seized under sub-section (2)

and no notice in respect thereof is given within six

months of the seizure of the goods, the goods shall be

returned to the person from whose possession they

were seized:

Provided that the period of six months may, on

sufficient cause being shown, be extended by the proper

officer for a further period not exceeding six months.

412

LA GAZETTE DE L'ETAT

[PART–II

(8) The Government may, having regard to the

perishable or hazardous nature of any goods,

depreciation in the value of the goods with the passage

of time, constraints of storage space for the goods or

any other relevant considerations, by notification,

specify the goods or class of goods which shall, as

soon as may be after its seizure under sub-section (2),

be disposed of by the proper officer in such manner

as may be prescribed.

(9) Where any goods, being goods specified

under sub-section (8), have been seized by a proper

officer, or any officer authorised by him under

sub-section (2), he shall prepare an inventory of such

goods in such manner as may be prescribed.

(10) The provisions of the Code of Criminal

Procedure, 1973, relating to search and seizure, shall,

so far as may be, apply to search and seizure under this

section subject to the modification that sub-section

(5) of section 165 of the said Code shall have effect

as if for the word "Magistrate", wherever it occurs, the

word "Commissioner" were substituted.

(11) Where the proper officer has reasons to

believe that any person has evaded or is attempting to evade

the payment of any tax, he may, for reasons to be

recorded in writing, seize the accounts, registers or

documents of such person produced before him and

shall grant a receipt for the same, and shall retain the

same for so long as may be necessary in connection

with any proceedings under this Act or the rules made

thereunder for prosecution.

(12) The Commissioner or an officer authorised

by him may cause purchase of any goods or services

or both by any person authorised by him from the

business premises of any taxable person, to check the

issue of tax invoices or bills of supply by such taxable

person, and on return of goods so purchased by such

officer, such taxable person or any person in charge

of the business premises shall refund the amount so

paid towards the goods after cancelling any tax invoice

or bill of supply issued earlier.

Central

Act 2

of 1974.

413

PART–II]

LA GAZETTE DE L'ETAT

68. (1) The Government may require the person

in charge of a conveyance carrying any consignment

of goods of value exceeding such amount as may be

specified to carry with him such documents and such

devices as may be prescribed.

(2) The details of documents required to be

carried under sub-section (1) shall be validated in such

manner as may be prescribed.

(3) Where any conveyance referred to in sub-

section (1) is intercepted by the proper officer at any

place, he may require the person in charge of the said

conveyance to produce the documents prescribed

under the said sub-section and devices for verification,

and the said person shall be liable to produce the

documents and devices and also allow the inspection

of goods.

69. (1) Where the Commissioner has reasons to

believe that a person has committed any offence

specified in clause (a) or clause (b) or clause (c) or

clause (d) of sub-section (1) of section 132 which is

punishable under clause (i) or clause (ii) of sub-section (1),

or sub-section (2) of the said section, he may, by order,

authorise any officer of State tax to arrest such

person.

(2) Where a person is arrested under sub-section (1)

for an offence specified under sub-section (5) of

section 132, the officer authorised to arrest the person

shall inform such person of the grounds of arrest and

produce him before a Magistrate within twenty four

hours.

(3) Subject to the provisions of the Code of

Criminal Procedure, 1973,-

(a) where a person is arrested under sub-section (1)

for any offence specified under sub-section (4)

of section 132, he shall be admitted to bail or in

default of bail, forwarded to the custody of the

Magistrate;

Inspection of

goods in

movement.

Power to

arrest.

Central

Act 2

of 1974.

414

LA GAZETTE DE L'ETAT

[PART–II

(b) in the case of a non-cognizable and bailable

offence, the Deputy Commissioner or the

Assistant Commissioner shall, for the purpose of

releasing an arrested person on bail or otherwise,

have the same powers and be subject to the same

provisions as an officer-in-charge of a police station.

70. (1) The proper officer under this Act shall

have power to summon any person whose attendance

he considers necessary either to give evidence or to

produce a document or any other thing in any inquiry

in the same manner, as provided in the case of a civil

court under the provisions of the Code of Civil

Procedure, 1908.

(2) Every such inquiry referred to in sub-section (1)

shall be deemed to be a "judicial proceedings" within

the meaning of section 193 and section 228 of the

Indian Penal Code.

71. (1) Any officer under this Act, authorised by

the proper officer not below the rank of Joint

Commissioner, shall have access to any place of

business of a registered person to inspect books of

account, documents, computers, computer programs,

computer software whether installed in a computer or

otherwise and such other things as he may require and

which may be available at such place, for the purposes

of carrying out any audit, scrutiny, verification and

checks as may be necessary to safeguard the interest

of revenue.

(2) Every person in charge of place referred to

in sub-section (1) shall, on demand, make available to

the officer authorised under sub-section (1) or the

audit party deputed by the proper officer or a cost

accountant or chartered accountant nominated under

section 66—

(i)

such

records

prepared

maintained by the registered person and

declared to the proper officer in such manner

as may be prescribed;

(ii) trial balance or its equivalent;

(iii) statements of annual financial

accounts, duly audited, wherever required;

Power to

summon

persons to

give

evidence and

produce

documents.

Access to

business

premises.

Central

Act 5 of

1908.

Central

Act 45 of

1860.

415

PART–II]

LA GAZETTE DE L'ETAT

(iv) cost audit report, if any, under section

148 of the Companies Act, 2013;

(v) the income-tax audit report, if any,

under section 44AB of the Income-tax Act,

1961; and

(vi) any other relevant record,

for the scrutiny by the officer or audit party or the

chartered accountant or cost accountant within a period

not exceeding fifteen working days from the day when

such demand is made, or such further period as may

be allowed by the said officer or the audit party or the

chartered accountant or cost accountant.

72. (1) All officers of Police, Railways,

Customs, and those officers engaged in the collection

of land revenue, including village officers, officers of

central tax and officers of the Union territory tax shall

assist the proper officers in the implementation of this

Act.

(2) The Government may, by notification,

empower and require any other class of officers to

assist the proper officers in the implementation of this

Act when called upon to do so by the Commissioner.

CHAPTER XV

DEMANDS AND RECOVERY

73. (1) Where it appears to the proper officer that

any tax has not been paid or short paid or erroneously

refunded, or where input tax credit has been wrongly

availed or utilised for any reason, other than the reason

of fraud or any wilful misstatement or suppression of

facts to evade tax, he shall serve notice on the person

chargeable with tax which has not been so paid or

which has been so short paid or to whom the refund

has erroneously been made, or who has wrongly availed

or utilised input tax credit, requiring him to show cause

as to why he should not pay the amount specified in

the notice along with interest payable thereon under

section 50 and a penalty leviable under the provisions

of this Act or the rules made thereunder.

Officers to

assist proper

officers.

Central

Act 18

of 2013.

Central

Act 43

of 1961.

Determination

of tax not

paid or short

paid or

erroneously

refunded or

input tax

credit wrongly

availed or

utilised for

any reason

other than

fraud or any

wilful-

misstatement

suppression

of facts.

416

LA GAZETTE DE L'ETAT

[PART–II

(2) The proper officer shall issue the notice under

sub-section (1) at least three months prior to the time

limit specified in sub-section (10) for issuance of order.

(3) Where a notice has been issued for any period

under sub-section (1), the proper officer may serve a

statement, containing the details of tax not paid or short

paid or erroneously refunded or input tax credit wrongly

availed or utilised for such periods other than those

covered under sub-section (1), on the person chargeable

with tax.

(4) The service of such statement shall be deemed

to be service of notice on such person under sub-

section (1), subject to the condition that the grounds

relied upon for such tax periods other than those

covered under sub-section (1) are the same as are

mentioned in the earlier notice.

(5) The person chargeable with tax may, before

service of notice under sub-section (1) or, as the case

may be, the statement under sub-section (3), pay the

amount of tax along with interest payable thereon under

section 50 on the basis of his own ascertainment of such

tax or the tax as ascertained by the proper officer and

inform the proper officer in writing of such payment.

(6) The proper officer, on receipt of such

information, shall not serve any notice under sub-

section (1) or, as the case may be, the statement under

sub-section (3), in respect of the tax so paid or any

penalty payable under the provisions of this Act or the

rules made thereunder.

(7) Where the proper officer is of the opinion that

the amount paid under sub-section (5) falls short of the

amount actually payable, he shall proceed to issue the

notice as provided for in sub-section (1) in respect of

such amount which falls short of the amount actually

payable.

417

PART–II]

LA GAZETTE DE L'ETAT

(8) Where any person chargeable with tax under

sub-section (1) or sub-section (3) pays the said tax

along with interest payable under section 50 within

thirty days of issue of show cause notice, no penalty

shall be payable and all proceedings in respect of the

said notice shall be deemed to be concluded.

(9) The proper officer shall, after considering

the representation, if any, made by person chargeable

with tax, determine the amount of tax, interest and a

penalty equivalent to ten per cent. of tax or ten

thousand rupees, whichever is higher, due from such

person and issue an order.

(10) The proper officer shall issue the order

under sub-section (9) within three years from the due

date for furnishing of annual return for the financial

year to which the tax not paid or short paid or input

tax credit wrongly availed or utilised relates to or

within three years from the date of erroneous refund.

(11) Notwithstanding anything contained in

sub-section (6) or sub-section (8), penalty under

sub-section (9) shall be payable where any amount of

self-assessed tax or any amount collected as tax has

not been paid within a period of thirty days from the

due date of payment of such tax.

74. (1) Where it appears to the proper officer

that any tax has not been paid or short paid or

erroneously refunded or where input tax credit has

been wrongly availed or utilised by reason of fraud, or

any wilful misstatement or suppression of facts to

evade tax, he shall serve notice on the person

chargeable with tax which has not been so paid or

which has been so short paid or to whom the refund

has erroneously been made, or who has wrongly availed

or utilised input tax credit, requiring him to show

cause as to why he should not pay the amount specified

in the notice along with interest payable thereon under

section 50 and a penalty equivalent to the tax specified

in the notice.

Determination

of tax not paid

or short paid

or erroneously

refunded or

input tax

credit wrongly

availed or

utilised by

reason of

fraud or any

wilful-

misstatement

or suppression

of facts.

418

LA GAZETTE DE L'ETAT

[PART–II

(2) The proper officer shall issue the notice under

sub-section (1) at least six months prior to the time limit

specified in sub-section (10) for issuance of order.

(3) Where a notice has been issued for any period

under sub-section (1), the proper officer may serve a

statement, containing the details of tax not paid or short

paid or erroneously refunded or input tax credit wrongly

availed or utilised for such periods other than those

covered under sub-section (1), on the person chargeable

with tax.

(4) The service of statement under sub-section (3)

shall be deemed to be service of notice under

sub-section (1) of section 73, subject to the condition

that the grounds relied upon in the said statement,

except the ground of fraud, or any wilful-misstatement

or suppression of facts to evade tax, for periods other

than those covered under sub-section (1) are the same

as are mentioned in the earlier notice.

(5) The person chargeable with tax may, before

service of notice under sub-section (1), pay the

amount of tax along with interest payable under section

50 and a penalty equivalent to fifteen per cent. of such

tax on the basis of his own ascertainment of such tax

or the tax as ascertained by the proper officer and

inform the proper officer in writing of such payment.

(6) The proper officer, on receipt of such

information, shall not serve any notice under sub-

section (1), in respect of the tax so paid or any penalty

payable under the provisions of this Act or the rules

made thereunder.

(7) Where the proper officer is of the opinion

that the amount paid under sub-section (5) falls short

of the amount actually payable, he shall proceed to

issue the notice as provided for in sub-section (1) in

respect of such amount which falls short of the amount

actually payable.

419

PART–II]

LA GAZETTE DE L'ETAT

(8) Where any person chargeable with tax under

sub-section (1) pays the said tax along with interest

payable under section 50 and a penalty equivalent to

twenty five per cent. of such tax within thirty days of

issue of the notice, all proceedings in respect of the

said notice shall be deemed to be concluded.

(9) The proper officer shall, after considering

the representation, if any, made by the person

chargeable with tax, determine the amount of tax,

interest and penalty due from such person and issue an

order.

(10) The proper officer shall issue the order

under sub-section (9) within a period of five years

from the due date for furnishing of annual return for

the financial year to which the tax not paid or short

paid or input tax credit wrongly availed or utilised

relates to or within five years from the date of

erroneous refund.

(11) Where any person served with an order

issued under sub-section (9) pays the tax along with

interest payable thereon under section 50 and a penalty

equivalent to fifty per cent. of such tax within thirty

days of communication of the order, all proceedings

in respect of the said notice shall be deemed to be

concluded.

Explanation 1.—For the purposes of

section 73 and this section,—

(i) the expression "all proceedings in

respect of the said notice" shall not include

proceedings under section 132;

(ii) where the notice under the same

proceedings is issued to the main person liable

to pay tax and some other persons, and such

proceedings against the main person have been

concluded under section 73 or section 74, the

proceedings against all the persons liable to

pay penalty under sections 122, 125, 129 and

130 are deemed to be concluded.

420

LA GAZETTE DE L'ETAT

[PART–II

Explanation 2.—For the purposes of this

Act, the expression "suppression" shall mean

non-declaration of facts or information which a

taxable person is required to declare in the return,

statement, report or any other document

furnished under this Act or the rules made

thereunder, or failure to furnish any information

on being asked for, in writing, by the proper

officer.

75. (1) Where the service of notice or issuance of

order is stayed by an order of a court or Appellate

Tribunal, the period of such stay shall be excluded in

computing the period specified in sub-sections (2) and

(10) of section 73 or sub-sections (2) and (10) of

section 74, as the case may be.

(2) Where any Appellate Authority or Appellate

Tribunal or court concludes that the notice issued

under sub-section (1) of section 74 is not sustainable

for the reason that the charges of fraud or any wilful

misstatement or suppression of facts to evade tax has

not been established against the person to whom the

notice was issued, the proper officer shall determine

the tax payable by such person, deeming as if the

notice were issued under sub-section (1) of section 73.

(3) Where any order is required to be issued in

pursuance of the direction of the Appellate Authority

or Appellate Tribunal or a court, such order shall be

issued

within

two

years

from

the

date

communication of the said direction.

(4) An opportunity of hearing shall be granted

where a request is received in writing from the person

chargeable with tax or penalty, or where any adverse

decision is contemplated against such person.

(5) The proper officer shall, if sufficient cause

is shown by the person chargeable with tax, grant time

to the said person and adjourn the hearing for reasons

to be recorded in writing:

General

provisions

relating to

determination

of tax.

421

PART–II]

LA GAZETTE DE L'ETAT

Provided that no such adjournment shall be

granted for more than three times to a person during

the proceedings.

(6) The proper officer, in his order, shall set out

the relevant facts and the basis of his decision.

(7) The amount of tax, interest and penalty

demanded in the order shall not be in excess of the

amount specified in the notice and no demand shall be

confirmed on the grounds other than the grounds

specified in the notice.

(8) Where the Appellate Authority or Appellate

Tribunal or court modifies the amount of tax

determined by the proper officer, the amount of

interest and penalty shall stand modified accordingly,

taking into account the amount of tax so modified.

(9) The interest on the tax short paid or not paid

shall be payable whether or not specified in the order

determining the tax liability.

(10) The adjudication proceedings shall be

deemed to be concluded, if the order is not issued

within three years as provided for in sub-section (10)

of section 73 or within five years as provided for in

sub-section (10) of section 74.

(11) An issue on which the Appellate Authority

or the Appellate Tribunal or the High Court has given

its decision which is prejudicial to the interest of

revenue in some other proceedings and an appeal to

the Appellate Tribunal or the High Court or the

Supreme Court against such decision of the Appellate

Authority or the Appellate Tribunal or the High Court

is pending, the period spent between the date of the decision

of the Appellate Authority and that of the Appellate

Tribunal or the date of decision of the Appellate

Tribunal and that of the High Court or the date of the

decision of the High Court and that of the Supreme

Court shall be excluded in computing the period

422

LA GAZETTE DE L'ETAT

[PART–II

referred to in sub-section (10) of section 73 or sub-

section (10) of section 74 where proceedings are

initiated by way of issue of a show cause notice under

the said sections.

(12) Notwithstanding anything contained in

section 73 or section 74, where any amount of self-

assessed tax in accordance with a return furnished under

section 39 remains unpaid, either wholly or partly, or

any amount of interest payable on such tax remains

unpaid, the same shall be recovered under the

provisions of section 79.

(13) Where any penalty is imposed under section 73

or section 74, no penalty for the same act or omission

shall be imposed on the same person under any other

provision of this Act.

76. (1) Notwithstanding anything to the contrary

contained in any order or direction of any Appellate

Authority or Appellate Tribunal or court or in any

other provisions of this Act or the rules made

thereunder or any other law for the time being in

force, every person who has collected from any other

person any amount as representing the tax under this

Act, and has not paid the said amount to the

Government, shall forthwith pay the said amount to the

Government, irrespective of whether the supplies in

respect of which such amount was collected are

taxable or not.

(2) Where any amount is required to be paid to

the Government under sub-section (1), and which has

not been so paid, the proper officer may serve on the

person liable to pay such amount a notice requiring

him to show cause as to why the said amount as

specified in the notice, should not be paid by him to

the Government and why a penalty equivalent to the

amount specified in the notice should not be imposed

on him under the provisions of this Act.

Tax collected

but not paid

Government.

423

PART–II]

LA GAZETTE DE L'ETAT

(3) The proper officer shall, after considering the

representation, if any, made by the person on whom the

notice is served under sub-section (2), determine the

amount due from such person and thereupon such

person shall pay the amount so determined.

(4) The person referred to in sub-section (1)

shall in addition to paying the amount referred to in

sub-section (1) or sub-section (3) also be liable to pay

interest thereon at the rate specified under section 50

from the date such amount was collected by him to the

date such amount is paid by him to the Government.

(5) An opportunity of hearing shall be granted

where a request is received in writing from the person

to whom the notice was issued to show cause.

(6) The proper officer shall issue an order within

one year from the date of issue of the notice.

(7) Where the issuance of order is stayed by an

order of the court or Appellate Tribunal, the period of

such stay shall be excluded in computing the period of

one year.

(8) The proper officer, in his order, shall set out

the relevant facts and the basis of his decision.

(9) The amount paid to the Government under

sub-section (1) or sub-section (3) shall be adjusted

against the tax payable, if any, by the person in relation

to the supplies referred to in sub-section (1).

(10) Where any surplus is left after the

adjustment under sub-section (9), the amount of such

surplus shall either be credited to the Fund or refunded

to the person who has borne the incidence of such

amount.

(11) The person who has borne the incidence of

the amount, may apply for the refund of the same in

accordance with the provisions of section 54.

424

LA GAZETTE DE L'ETAT

[PART–II

77. (1) A registered person who has paid the

central tax and State tax on a transaction considered by

him to be an intra-State supply, but which is

subsequently held to be an inter-State supply, shall be

refunded the amount of taxes so paid in such manner

and subject to such conditions as may be prescribed.

(2) A registered person who has paid integrated

tax on a transaction considered by him to be an

inter-State supply, but which is subsequently held to

be an intra-State supply, shall not be required to pay

any interest on the amount of State tax payable.

78. Any amount payable by a taxable person in

pursuance of an order passed under this Act shall be

paid by such person within a period of three months

from the date of service of such order failing which

recovery proceedings shall be initiated:

Provided that where the proper officer considers

it expedient in the interest of revenue, he may, for

reasons to be recorded in writing, require the said

taxable person to make such payment within such

period less than a period of three months as may be

specified by him.

79. (1) Where any amount payable by a person to

the Government under any of the provisions of this Act

or the rules made thereunder is not paid, the proper

officer shall proceed to recover the amount by one or

more of the following modes, namely:—

(a) the proper officer may deduct or may

require any other specified officer to deduct the

amount so payable from any money owing to

such person which may be under the control of

the proper officer or such other specified

officer;

(b) the proper officer may recover or may

require any other specified officer to recover the

amount so payable by detaining and selling any

goods belonging to such person which are under

the control of the proper officer or such other

specified officer;

Initiation of

recovery

proceelings.

Tax

wrongfully

collected and

paid to

Central

Government

or State

Government.

Recovery of

tax.

425

PART–II]

LA GAZETTE DE L'ETAT

writing, require any other person from whom

money is due or may become due to such person

or who holds or may subsequently hold money

for or on account of such person, to pay to the

Government either forthwith upon the money

becoming due or being held, 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 such person or the whole of the money

when it is equal to or less than that amount;

(ii) every person to whom the notice is

issued under sub-clause (i) shall be bound to

comply with such notice, and in particular,

where any such notice is issued to a post

office, banking company or an insurer, it shall

not be necessary to produce any pass book,

deposit receipt, policy or any other document

for the purpose of any entry, endorsement or

the like being made before payment is made,

notwithstanding

any

rule,

practice

requirement to the contrary;

(iii) in case the person to whom a notice

under sub-clause (i) has been issued, fails to

make the payment in pursuance thereof to the

Government, he shall be deemed to be a

defaulter in respect of the amount specified in

the notice and all the consequences of this Act

or the rules made thereunder shall follow;

(iv) the officer issuing a notice under

sub-clause (i) may, at any time, amend or

revoke such notice or extend the time for

making any payment in pursuance of the

notice;

(v) any person making any payment in

compliance with a notice issued under sub-

clause (i) shall be deemed to have made the

payment under the authority of the person in

426

LA GAZETTE DE L'ETAT

[PART–II

default and such payment being credited to the

Government shall be deemed to constitute a

good and sufficient discharge of the liability of

such person to the person in default to the

extent of the amount specified in the receipt;

(vi) any person discharging any liability

to the person in default after service on him

of the notice issued under sub-clause (i) shall

be personally liable to the Government to the

extent of the liability discharged or to the

extent of the liability of the person in default

for tax, interest and penalty, whichever is less;

(vii) where a person on whom a notice is

served under sub-clause (i) proves to the

satisfaction of the officer issuing the notice

that the money demanded or any part thereof

was not due to the person in default or that he

did not hold any money for or on account of

the person in default, at the time the notice

was served on him, nor is the money demanded

or any part thereof, likely to become due to

the said person or be held for or on account

of such person, nothing contained in this

section shall be deemed to require the person

on whom the notice has been served to pay to

the Government any such money or part

thereof;

(d) the proper officer may, in accordance with

the rules to be made in this behalf, distrain any

movable or immovable property belonging to or

under the control of such person, and detain the

same until the amount payable is paid; and in

case, any part of the said amount payable or of

the cost of the distress or keeping of the

property, remains unpaid for a period of thirty

days next after any such distress, may cause the

said property to be sold and with the proceeds of

such sale, may satisfy the amount payable and the

costs including cost of sale remaining unpaid and

shall render the surplus amount, if any, to such

person;

427

PART–II]

LA GAZETTE DE L'ETAT

(e) the proper officer may prepare a certificate

signed by him specifying the amount due from

such person and send it to the Collector of the

district in which such person owns any property

or resides or carries on his business or to any

officer authorised by the Government and the said

Collector or the said officer, on receipt of such

certificate, shall proceed to recover from such

person the amount specified thereunder as if it

were an arrear of land revenue;

(f) Notwithstanding anything contained in the

Code of Criminal Procedure, 1973, the proper

officer may file an application to the appropriate

Magistrate and such Magistrate shall proceed to

recover from such person the amount specified

thereunder as if it were a fine imposed by him.

(2) Where the terms of any bond or other

instrument executed under this Act or any rules or

regulations made thereunder provide that any amount

due under such instrument may be recovered in the

manner laid down in sub-section (1), the amount may,

without prejudice to any other mode of recovery, be

recovered in accordance with the provisions of that

sub-section.

(3) Where any amount of tax, interest or penalty

is payable by a person to the Government under any

of the provisions of this Act or the rules made

thereunder and which remains unpaid, the proper

officer of central tax, during the course of recovery

of said tax arrears, may recover the amount from the

said person as if it were an arrear of central tax and

credit the amount so recovered to the account of the

Government.

(4) Where the amount recovered under sub-

section (3) is less than the amount due to the Central

Government and State Government, the amount to be

credited to the account of the respective Governments

shall be in proportion to the amount due to each such

Government.

Central

Act 2

of 1974.

428

LA GAZETTE DE L'ETAT

[PART–II

80. On an application filed by a taxable person,

the Commissioner may, for reasons to be recorded in

writing, extend the time for payment or allow payment

of any amount due under this Act, other than the amount

due as per the liability self-assessed in any return, by

such person in monthly instalments not exceeding

twenty four, subject to payment of interest under

section 50 and subject to such conditions and

limitations as may be prescribed:

Provided that where there is default in payment

of any one instalment on its due date, the whole

outstanding balance payable on such date shall become

due and payable forthwith and shall, without any further

notice being served on the person, be liable for

recovery.

81. Where a person, after any amount has become

due from him, creates a charge on or parts with the

property belonging to him or in his possession by way

of sale, mortgage, exchange, or any other mode of

transfer whatsoever of any of his properties in favour

of any other person with the intention of defrauding

the Government revenue, such charge or transfer shall

be void as against any claim in respect of any tax or

any other sum payable by the said person:

Provided that, such charge or transfer shall not

be void if it is made for adequate consideration, in

good faith and without notice of the pendency of such

proceedings under this Act or without notice of such

tax or other sum payable by the said person, or with

the previous permission of the proper officer.

82. Notwithstanding anything to the contrary

contained in any law for the time being in force, save

as otherwise provided in the Insolvency and Bankruptcy

Code, 2016, any amount payable by a taxable person

or any other person on account of tax, interest or

penalty which he is liable to pay to the Government

shall be a first charge on the property of such taxable

person or such person.

Payment of

tax and other

amount in

instalments.

Transfer of

property to

be void in

certain

cases.

Central

Act 31

of 2016.

Tax to be

first charge

on property.

429

PART–II]

LA GAZETTE DE L'ETAT

83. (1) Where during the pendency of any

proceedings under section 62 or section 63 or section 64

or section 67 or section 73 or section 74, the

Commissioner is of the opinion that for the purpose

of protecting the interest of the Government revenue,

it is necessary so to do, he may, by order in writing

attach provisionally any property, including bank

account, belonging to the taxable person in such manner

as may be prescribed.

(2) Every such provisional attachment shall cease

to have effect after the expiry of a period of one year

from the date of the order made under sub-section (1).

84. Where any notice of demand in respect of any

tax, penalty, interest or any other amount payable under

this Act, (hereafter in this section referred to as

"Government dues"), is served upon any taxable person

or any other person and any appeal or revision

application is filed or any other proceedings is initiated

in respect of such Government dues, then—

(a) where such Government dues are enhanced

in such appeal, revision or other proceedings, the

Commissioner shall serve upon the taxable

person or any other person another notice of

demand 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 of demand served

upon him before the disposal of such appeal,

revision or other proceedings may, without the

service of any fresh notice of demand, be

continued from the stage at which such

proceedings stood immediately before such

disposal;

(b) where such Government dues are reduced

such

appeal,

revision

other

proceedings—

(i) it shall not be necessary for the

Commissioner to serve upon the taxable person

a fresh notice of demand;

Provisional

attachment

to protect

revenue in

certain

cases.

Continuation

and

validation of

certain

recovery

proceedings.

430

LA GAZETTE DE L'ETAT

[PART–II

(ii) the Commissioner shall give intimation

of such reduction to him and to the appropriate

authority with whom recovery proceedings is

pending;

(iii) any recovery proceedings initiated on

the basis of the demand served upon him prior

to the disposal of such appeal, revision or other

proceedings may be continued in relation to

the amount so reduced from the stage at which

such proceedings stood immediately before

such disposal.

CHAPTER XVI

LIABILITY TO PAY IN CERTAIN CASES

85. (1) Where a taxable person, liable to pay tax

under this Act, transfers his business in whole or in

part, by sale, gift, lease, leave and license, hire or in

any other manner whatsoever, the taxable person and

the person to whom the business is so transferred

shall, jointly and severally, be liable wholly or to the

extent of such transfer, to pay the tax, interest or any

penalty due from the taxable person upto the time of

such transfer, whether such tax, interest or penalty has

been determined before such transfer, but has

remained unpaid or is determined thereafter.

(2) Where the transferee of a business referred

to in sub-section (1) carries on such business either

in his own name or in some other name, he shall be

liable to pay tax on the supply of goods or services or

both effected by him with effect from the date of such

transfer and shall, if he is a registered person under

this Act, apply within the prescribed time for

amendment of his certificate of registration.

86. Where an agent supplies or receives any

taxable goods on behalf of his principal, such agent and

his principal shall, jointly and severally, be liable to

pay the tax payable on such goods under this Act.

Liability in

case of

transfer of

business.

Liability of

agent and

principal.

431

PART–II]

LA GAZETTE DE L'ETAT

87. (1) When two or more companies are

amalgamated or merged in pursuance of an order of

court or of Tribunal or otherwise and the order is to

take effect from a date earlier to the date of the order

and any two or more of such companies have supplied

or received any goods or services or both to or from

each other during the period commencing on the date

from which the order takes effect till the date of the

order, then such transactions of supply and receipt

shall be included in the turnover of supply or receipt

of the respective companies and they shall be liable

to pay tax accordingly.

(2) Notwithstanding anything contained in the

said order, for the purposes of this Act, the said two

or more companies shall be treated as distinct

companies for the period up to the date of the said

order and the registration certificates of the said

companies shall be cancelled with effect from the date

of the said order.

88. (1) When any company is being wound up

whether under the orders of a court or Tribunal or

otherwise, every person appointed as receiver of any

assets of a company (hereafter in this section referred

to as the "liquidator"), shall, within thirty days after his

appointment, give intimation of his appointment to the

Commissioner.

(2) The Commissioner shall, after making such

inquiry or calling for such information as he may

deem fit, notify the liquidator within three months

from the date on which he receives intimation of the

appointment of the liquidator, the amount which in the

opinion of the Commissioner would be sufficient to

provide for any tax, interest or penalty which is then,

or is likely thereafter to become, payable by the

company.

(3) When any private company is wound up and

any tax, interest or penalty determined under this Act

on the company for any period, whether before or in

the course of or after its liquidation, cannot be

Liability in

case of

amalgamation

or merger of

companies.

Liability in

case of

company in

liquidation.

432

LA GAZETTE DE L'ETAT

[PART–II

recovered, then every person who was a director of

such company at any time during the period for which

the tax was due shall, jointly and severally, be liable

for the payment of such tax, interest or penalty, unless

he proves to the satisfaction of the Commissioner that

such non-recovery cannot be attributed to any gross

neglect, misfeasance or breach of duty on his part in

relation to the affairs of the company.

89. (1) Notwithstanding anything contained in the

Companies Act, 2013, where any tax, interest or

penalty due from a private company in respect of any

supply of goods or services or both for any period

cannot be recovered, then, every person who was a

director of the private company during such period

shall, jointly and severally, be liable for the payment

of such tax, interest or penalty unless he proves that

the non-recovery cannot be attributed to any gross

neglect, misfeasance or breach of duty on his part in

relation to the affairs of the company.

(2) Where a private company is converted into a

public company and the tax, interest or penalty in

respect of any supply of goods or services or both for

any period during which such company was a private

company cannot be recovered before such conversion,

then, nothing contained in sub-section (1) shall apply

to any person who was a director of such private

company in relation to any tax, interest or penalty in

respect of such supply of goods or services or both

of such private company:

Provided that nothing contained in this sub-

section shall apply to any personal penalty imposed on

such director.

90. Notwithstanding any contract to the contrary

and any other law for the time being in force, where

any firm is liable to pay any tax, interest or penalty

under this Act, the firm and each of the partners of the

firm shall, jointly and severally, be liable for such

payment:

Liability of

directors of

private

company.

Central

Act 18

of 2013.

Liability of

partners of

firm to pay

tax.

433

PART–II]

LA GAZETTE DE L'ETAT

Provided that where any partner retires from the

firm, he or the firm, shall intimate the date of

retirement of the said partner to the Commissioner by

a notice in that behalf in writing and such partner shall

be liable to pay tax, interest or penalty due upto the

date of his retirement whether determined or not,

on that date:

Provided further that if no such intimation is

given within one month from the date of retirement,

the liability of such partner under the first proviso shall

continue until the date on which such intimation is

received by the Commissioner.

91. Where the business in respect of which any

tax, interest or penalty is payable under this Act is

carried on by any guardian, trustee or agent of a

minor or other incapacitated person on behalf of

and for the benefit of such minor or other

incapacitated person, the tax, interest or penalty

shall be levied upon and recoverable from such

guardian, trustee or agent in like manner and to

the same extent as it would be determined and

recoverable from any such minor or other

incapacitated person, as if he were a major or

capacitated person and as if he were conducting

the business himself, and all the provisions of

this Act or the rules made thereunder shall apply

accordingly.

92. Where the estate or any portion of the

estate of a taxable person owning a business in respect

of which any tax, interest or penalty is payable under

this Act is under the control of the Court of Wards,

the Administrator General, the Official Trustee or any

receiver or manager (including any person, whatever

be his designation, who in fact manages the business)

appointed by or under any order of a court, the tax,

interest or penalty shall be levied upon and be

recoverable from such Court of Wards, Administrator

Liability of

guardians,

trustees, etc.

Liability of

Court of

Wards, etc.

434

LA GAZETTE DE L'ETAT

[PART–II

General, Official Trustee, receiver or manager in like

manner and to the same extent as it would be

determined and be recoverable from the taxable person

as if he were conducting the business himself, and all

the provisions of this Act or the rules made thereunder

shall apply accordingly.

93. (1) Save as otherwise provided in the

Insolvency and Bankruptcy Code, 2016, where a

person, liable to pay tax, interest or penalty under this

Act, dies, then—

(a) if a business carried on by the person is

continued

after

his

death

his

legal

representative or any other person, such legal

representative or other person, shall be liable to

pay tax, interest or penalty due from such person

under this Act; and

(b) if the business carried on by the person is

discontinued, whether before or after his death,

his legal representative shall be liable to pay, out

of the estate of the deceased, to the extent to

which the estate is capable of meeting the

charge, the tax, interest or penalty due from such

person under this Act,

whether such tax, interest or penalty has been

determined before his death but has remained unpaid

or is determined after his death.

(2) Save as otherwise provided in the Insolvency

and Bankruptcy Code, 2016, where a taxable person,

liable to pay tax, interest or penalty under this Act, is

a Hindu Undivided Family or an association of persons

and the property of the Hindu Undivided Family or the

association of persons is partitioned amongst the

various members or groups of members, then, each

member or group of members shall, jointly and

severally, be liable to pay the tax, interest or penalty

Special

provisions

regarding

liability to pay

tax, interest

or penalty in

certain cases.

Central

Act 31

of 2016.

Central

Act 31

of 2016.

435

PART–II]

LA GAZETTE DE L'ETAT

due from the taxable person under this Act upto the time

of the partition whether such tax, penalty or interest has

been determined before partition but has remained

unpaid or is determined after the partition.

(3) Save as otherwise provided in the Insolvency

and Bankruptcy Code, 2016, where a taxable person,

liable to pay tax, interest or penalty under this Act, is

a firm, and the firm is dissolved, then, every person

who was a partner shall, jointly and severally, be liable

to pay the tax, interest or penalty due from the firm

under this Act upto the time of dissolution whether

such tax, interest or penalty has been determined

before the dissolution, but has remained unpaid or is

determined after dissolution.

(4) Save as otherwise provided in the Insolvency

and Bankruptcy Code, 2016, where a taxable person

liable to pay tax, interest or penalty under this Act,-

(a) is the guardian of a ward on whose behalf

the business is carried on by the guardian; or

(b) is a trustee who carries on the business

under a trust for a beneficiary,

then, if the guardianship or trust is terminated, the ward

or the beneficiary shall be liable to pay the tax,

interest or penalty due from the taxable person upto

the time of the termination of the guardianship or

trust, whether such tax, interest or penalty has been

determined before the termination of guardianship or

trust but has remained unpaid or is determined

thereafter.

94. (1) Where a taxable person is a firm or an

association of persons or a Hindu Undivided Family

and such firm, association or family has discontinued

business-

(a) the tax, interest or penalty payable

under this Act by such firm, association or

family upto the date of such discontinuance may

be determined as if no such discontinuance had

taken place; and

Central

Act 31

of 2016.

Liability in

other cases.

Central

Act 31

of 2016.

436

LA GAZETTE DE L'ETAT

[PART–II

(b) every person who, at the time of such

discontinuance, was a partner of such firm, or a

member of such association or family, shall,

notwithstanding such discontinuance, jointly and

severally, be liable for the payment of tax and

interest determined and penalty imposed and

payable by such firm, association or family,

whether such tax and interest has been

determined or penalty imposed prior to or after

such discontinuance and subject as aforesaid, the

provisions of this Act shall, so far as may be,

apply as if every such person or partner or

member were himself a taxable person.

(2) Where a change has occurred in the

constitution of a firm or an association of persons, the

partners of the firm or members of association, as it

existed before and as it exists after the reconstitution,

shall, without prejudice to the provisions of section

90, jointly and severally, be liable to pay tax, interest

or penalty due from such firm or association for any

period before its reconstitution.

(3) The provisions of sub-section (1) shall, so

far as may be, apply where the taxable person, being

a firm or association of persons is dissolved or

where the taxable person, being a Hindu Undivided

Family, has effected partition with respect to the

business carried on by it and accordingly references

in that sub-section to discontinuance shall be

construed as reference to dissolution or to partition.

Explanation.—For the purposes of this Chapter,—

(i) a "Limited Liability Partnership" formed and

registered under the provisions of the Limited

Liability Partnership Act, 2008 shall also be

considered as a firm;

(ii) "court" means the District Court, High Court

or Supreme Court.

Central

Act 6

of 2009.

437

PART–II]

LA GAZETTE DE L'ETAT

CHAPTER XVII

ADVANCE RULING

95. In this Chapter, unless the context otherwise

requires,—

(a) "advance ruling" means a decision provided

by the Authority or the Appellate Authority to an

applicant on matters or on questions specified in

sub-section (2) of section 97 or sub-section (1)

of section 100, in relation to the supply of goods

or services or both being undertaken or proposed

to be undertaken by the applicant;

(b) "Appellate Authority" means the Appellate

Authority for Advance Ruling constituted under

section 99;

desirous of obtaining registration under this Act;

(d) "application" means an application made to

the Authority under sub-section (1) of section 97;

(e) "Authority" means the Authority for

Advance Ruling, constituted under section 96.

96. (1) The Government shall, by notification,

constitute an Authority to be known as the Puducherry

Authority for Advance Ruling:

Provided that the Government may, on the

recommendation of the Council, notify any Authority

located in another State to act as the Authority for the

State.

(2) The Authority shall consist of-

(i) one member from amongst the

officers of central tax; and

(ii) one member from amongst the

officers of State tax,

to be appointed by the Central Government and the

State Government, respectively.

Definitions.

Constitution

of Authority

for Advance

Ruling.

438

LA GAZETTE DE L'ETAT

[PART–II

(3)

The

qualifications,

the

method

appointment of the members and the terms and

conditions of their services shall be such as may be

prescribed.

97. (1) An applicant desirous of obtaining an

advance ruling under this Chapter may make an

application in such form and manner and accompanied

by such fee as may be prescribed, stating the

question on which the advance ruling is sought.

(2) The question on which the advance ruling

is sought under this Act, shall be in respect of, -

(a) classification of any goods or services

or both;

(b) applicability of a notification issued

under the provisions of this Act;

supply of goods or services or both;

(d) admissibility of input tax credit of tax

paid or deemed to have been paid;

(e) determination of the liability to pay tax

on any goods or services or both;

(f) whether applicant is required to be

registered;

(g) whether any particular thing done by the

applicant with respect to any goods or services

or both amounts to or results in a supply of

goods or services or both, within the meaning

of that term.

98. (1) On receipt of an application, the

Authority shall cause a copy thereof to be forwarded

to the concerned officer and, if necessary, call upon

him to furnish the relevant records:

Provided that where any records have been called

for by the Authority in any case, such records shall,

as soon as possible, be returned to the said concerned

officer.

Application

for advance

ruling.

Procedure on

receipt of

application.

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LA GAZETTE DE L'ETAT

(2) The Authority may, after examining the

application and the records called for and after hearing

the applicant or his authorised representative and the

concerned officer or his authorised representative, by

order, either admit or reject the application:

Provided that the Authority shall not admit the

application where the question raised in the

application is already pending or decided in any

proceedings in the case of an applicant under any of

the provisions of this Act:

Provided further that no application shall be

rejected under this sub-section unless an opportunity

of hearing has been given to the applicant:

Provided also that where the application is

rejected, the reasons for such rejection shall be

specified in the order.

(3) A copy of every order made under sub-section (2)

shall be sent to the applicant and to the concerned

officer.

(4) Where an application is admitted under sub-

section (2), the Authority shall, after examining such

further material as may be placed before it by the

applicant or obtained by the Authority and after

providing an opportunity of being heard to the

applicant or his authorised representative as well as to

the concerned officer or his authorised representative,

pronounce its advance ruling on the question specified

in the application.

(5) Where the members of the Authority differ

on any question on which the advance ruling is sought,

they shall state the point or points on which they differ

and make a reference to the Appellate Authority for

hearing and decision on such question.

(6) The Authority shall pronounce its advance

ruling in writing within ninety days from the date of

receipt of application.

440

LA GAZETTE DE L'ETAT

[PART–II

(7) A copy of the advance ruling pronounced by

the Authority duly signed by the members and certified

in such manner as may be prescribed shall be sent to

the applicant, the concerned officer and the

jurisdictional officer after such pronouncement.

99. The Government shall, by notification,

constitute an Authority to be known as Puducherry

Appellate Authority for Advance Ruling for Goods and

Services Tax for hearing appeals against the advance

ruling pronounced by the Advance Ruling Authority,

consisting of-

(i) the Chief Commissioner of central tax as

designated by the Board; and

(ii) the Commissioner of State tax:

Provided that the Government may, on the

recommendations of the Council, notify any Appellate

Authority located in another State or Union territory

to act as the Appellate Authority for the State.

100. (1) The concerned officer, the jurisdictional

officer or an applicant aggrieved by any advance ruling

pronounced under sub-section (4) of section 98, may

appeal to the Appellate Authority.

(2) Every appeal under this section shall be

filed within a period of thirty days from the date

on which the ruling sought to be appealed against

is communicated to the concerned officer, the

jurisdictional officer and the applicant:

Provided that the Appellate Authority may, if it

is satisfied that the appellant was prevented by a

sufficient cause from presenting the appeal within the

said period of thirty days, allow it to be presented

within a further period not exceeding thirty days.

(3) Every appeal under this section shall be in

such form, accompanied by such fee and verified in

such manner as may be prescribed.

Constitution

of Appellate

Authority for

Advance

Ruling.

Appeal to

Appellate

Authority.

441

PART–II]

LA GAZETTE DE L'ETAT

101. (1) The Appellate Authority may, after

giving the parties to the appeal or reference an

opportunity of being heard, pass such order as it thinks

fit, confirming or modifying the ruling appealed against

or referred to.

(2) The order referred to in sub-section (1) shall

be passed within a period of ninety days from the date

of filing of the appeal under section 100 or a

reference under sub-section (5) of section 98.

(3) Where the members of the Appellate

Authority differ on any point or points referred to in

appeal or reference, it shall be deemed that no advance

ruling can be issued in respect of the question under

the appeal or reference.

(4) A copy of the advance ruling pronounced by

the Appellate Authority duly signed by the Members

and certified in such manner as may be prescribed shall

be sent to the applicant, the concerned officer, the

jurisdictional officer and to the Authority after such

pronouncement.

102. The Authority or the Appellate Authority

may amend any order passed by it under section 98 or

section 101, so as to rectify any error apparent on the

face of the record, if such error is noticed by the

Authority or the Appellate Authority on its own accord,

or is brought to its notice by the concerned officer,

the jurisdictional officer, or the applicant or the

appellant within a period of six months from the date

of the order:

Provided that no rectification which has the

effect of enhancing the tax liability or reducing the

amount of admissible input tax credit shall be made

unless the applicant or the appellant has been given an

opportunity of being heard.

Orders of

Appellate

Authority.

Rectification

of advance

ruling.

442

LA GAZETTE DE L'ETAT

[PART–II

103. (1) The advance ruling pronounced by the

Authority or the Appellate Authority under this

Chapter shall be binding only -

(a) on the applicant who had sought it in

respect of any matter referred to in sub-section

(2) of section 97 for advance ruling;

(b)

the

concerned

officer

the

jurisdictional officer in respect of the applicant.

(2) The advance ruling referred to in sub-section (1)

shall be binding unless the law, facts or circumstances

supporting the original advance ruling have changed.

104. (1) Where the Authority or the Appellate

Authority finds that advance ruling pronounced by

it under sub-section (4) of section 98 or under

sub-section (1) of section 101 has been obtained by

the applicant or the appellant by fraud or suppression

of material facts or misrepresentation of facts, it

may, by order, declare such ruling to be void ab-initio

and thereupon all the provisions of this Act or the

rules made thereunder shall apply to the applicant or

the appellant as if such advance ruling had never been

made:

Provided that no order shall be passed under this

sub-section unless an opportunity of being heard has

been given to the applicant or the appellant.

Explanation.—The period beginning with the

date of such advance ruling and ending with the date

of order under this sub-section shall be excluded while

computing the period specified in sub-sections (2) and

(10) of section 73 or sub-sections (2) and (10) of

section 74.

(2) A copy of the order made under sub-section (1)

shall be sent to the applicant, the concerned officer

and the jurisdictional officer.

Applicability

of advance

ruling.

Advance

ruling to be

void in

certain

circumstances.

443

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LA GAZETTE DE L'ETAT

105. (1) The Authority or the Appellate Authority

shall, for the purpose of exercising its powers

regarding—

(a) discovery and inspection;

(b) enforcing the attendance of any person and

examining him on oath;

production of books of account and other

records,

have all the powers of a civil court under the Code of

Civil Procedure, 1908.

(2) The Authority or the Appellate Authority shall

be deemed to be a civil court for the purposes of

section 195, but not for the purposes of Chapter XXVI

of the Code of Criminal Procedure, 1973, and every

proceeding before the Authority or the Appellate

Authority shall be deemed to be a judicial proceedings

within the meaning of sections 193 and 228, and for

the purpose of section 196 of the Indian Penal Code.

106. The Authority or the Appellate Authority

shall, subject to the provisions of this Chapter, have

power to regulate its own procedure.

CHAPTER XVIII

APPEALS AND REVISION

107. (1) Any person aggrieved by any decision

or order passed under this Act or the Central Goods

and Services Tax Act by an adjudicating authority may

appeal to such Appellate Authority as may be

prescribed within three months from the date on which

the said decision or order is communicated to such

person.

(2) The Commissioner may, on his own motion,

or upon request from the Commissioner of central tax,

call for and examine the record of any proceeding in

which an adjudicating authority has passed any decision

Powers of

Authority

and Appellate

Authority.

Procedure of

Authority and

Appellate

Authority.

Central

Act 5

of 1908.

Central

Act 2

of 1974.

Central

Act 45

of 1860.

Appeals to

Appellate

Authority.

444

LA GAZETTE DE L'ETAT

[PART–II

or order under this Act or the Central Goods and

Services Tax Act, for the purpose of satisfying himself

as to the legality or propriety of the said decision or

order and may, by order, direct any officer subordinate

to him to apply to the Appellate Authority within six

months from the date of communication of the said

decision or order for the determination of such points

arising out of the said decision or order as may be

specified by the Commissioner in his order.

(3) Where, in pursuance of an order under sub-

section (2), the authorised officer makes an

application to the Appellate Authority, such application

shall be dealt with by the Appellate Authority as if it

were an appeal made against the decision or order of

the adjudicating authority and such authorised officer

were an appellant and the provisions of this Act

relating to appeals shall apply to such application.

(4) The Appellate Authority may, if he is satisfied

that the appellant was prevented by sufficient cause

from presenting the appeal within the aforesaid period

of three months or six months, as the case may be,

allow it to be presented within a further period of one

month.

(5) Every appeal under this section shall be in

such form and shall be verified in such manner as may

be prescribed.

(6) No appeal shall be filed under sub-section (1),

unless the appellant has paid-

(a) in full, such part of the amount of tax,

interest, fine, fee and penalty arising from the

impugned order, as is admitted by him; and

(b) a sum equal to ten per cent. of the

remaining amount of tax in dispute arising from

the said order, in relation to which the appeal has

been filed.

445

PART–II]

LA GAZETTE DE L'ETAT

(7) Where the appellant has paid the amount

under sub-section (6), the recovery proceedings for

the balance amount shall be deemed to be stayed.

(8) The Appellate Authority shall give an

opportunity to the appellant of being heard.

(9) The Appellate Authority may, if sufficient

cause is shown at any stage of hearing of an appeal,

grant time to the parties or any of them and adjourn

the hearing of the appeal for reasons to be recorded

in writing:

Provided that no such adjournment shall be

granted more than three times to a party during

hearing of the appeal.

(10) The Appellate Authority may, at the time of

hearing of an appeal, allow an appellant to add any

ground of appeal not specified in the grounds of

appeal, if it is satisfied that the omission of that

ground from the grounds of appeal was not wilful or

unreasonable.

(11) The Appellate Authority shall, after making

such further inquiry as may be necessary, pass such

order, as it thinks just and proper, confirming,

modifying or annulling the decision or order appealed

against but shall not refer the case back to the

adjudicating authority that passed the said decision or

order:

Provided that an order enhancing any fee or

penalty or fine in lieu of confiscation or confiscating

goods of greater value or reducing the amount of

refund or input tax credit shall not be passed unless

the appellant has been given a reasonable opportunity

of showing cause against the proposed order:

Provided further that where the Appellate

Authority is of the opinion that any tax has not been

paid or short-paid or erroneously refunded, or where

446

LA GAZETTE DE L'ETAT

[PART–II

input tax credit has been wrongly availed or utilised,

no order requiring the appellant to pay such tax or

input tax credit shall be passed unless the appellant is

given notice to show cause against the proposed order

and the order is passed within the time limit specified

under section 73 or section 74.

(12) The order of the Appellate Authority

disposing of the appeal shall be in writing and shall

state the points for determination, the decision thereon

and the reasons for such decision.

(13) The Appellate Authority shall, where it is

possible to do so, hear and decide every appeal within

a period of one year from the date on which it is filed:

Provided that where the issuance of order is

stayed by an order of a court or Tribunal, the period

of such stay shall be excluded in computing the period

of one year.

(14) On disposal of the appeal, the Appellate

Authority shall communicate the order passed by it to

the appellant, respondent and to the adjudicating

authority.

(15) A copy of the order passed by the

Appellate Authority shall also be sent to the

Commissioner or the authority designated by him in

this behalf and the jurisdictional Commissioner of

central tax or an authority designated by him in this

behalf.

(16) Every order passed under this section

shall, subject to the provisions of section 108 or

section 113 or section 117 or section 118 be final

and binding on the parties.

108. (1) Subject to the provisions of section 121

and any rules made thereunder, the Revisional

Authority may, on his own motion, or upon

information received by him or on request from the

Commissioner of central tax, call for and examine

Powers of

Revisional

Authority.

447

PART–II]

LA GAZETTE DE L'ETAT

the record of any proceedings, and if he considers

that any decision or order passed under this Act or

under the Central Goods and Services Tax Act by any

officer subordinate to him is erroneous in so far as

it is prejudicial to the interest of revenue and is

illegal or improper or has not taken into account

certain material facts, whether available at the time

of issuance of the said order or not or in

consequence of an observation by the Comptroller

and Auditor General of India, he may, if necessary,

stay the operation of such decision or order for such

period as he deems fit and after giving the person

concerned an opportunity of being heard and after

making such further inquiry as may be necessary,

pass such order, as he thinks just and proper,

including enhancing or modifying or annulling the

said decision or order.

(2) The Revisional Authority shall not exercise

any power under sub-section (1), if—

(a) the order has been subject to an appeal

under section 107 or section 112 or section 117

or section 118; or

(b) the period specified under sub-section (2)

of section 107 has not yet expired or more than

three years have expired after the passing of the

decision or order sought to be revised; or

revision under this section at an earlier stage; or

(d) the order has been passed in exercise of

the powers under sub-section (1):

Provided that the Revisional Authority may pass

an order under sub-section (1) on any point which has

not been raised and decided in an appeal referred to

in clause (a) of sub-section (2), before the expiry of

a period of one year from the date of the order in such

appeal or before the expiry of a period of three years

referred to in clause (b) of that sub-section, whichever

is later.

448

LA GAZETTE DE L'ETAT

[PART–II

(3) Every order passed in revision under sub-

section (1) shall, subject to the provisions of section

113 or section 117 or section 118, be final and binding

on the parties.

(4) If the said decision or order involves an issue

on which the Appellate Tribunal or the High Court has

given its decision in some other proceedings and an

appeal to the High Court or the Supreme Court against

such decision of the Appellate Tribunal or the High

Court is pending, the period spent between the date of

the decision of the Appellate Tribunal and the date of

the decision of the High Court or the date of the

decision of the High Court and the date of the decision

of the Supreme Court shall be excluded in computing

the period of limitation referred to in clause (b) of

sub-section (2) where proceedings for revision have

been initiated by way of issue of a notice under this

section.

(5) Where the issuance of an order under

sub-section (1) is stayed by the order of a court or

Appellate Tribunal, the period of such stay shall be

excluded in computing the period of limitation

referred to in clause (b) of sub-section (2).

(6) For the purposes of this section, the term,—

(i) "record" shall include all records relating

to any proceedings under this Act available at the

time of examination by the Revisional Authority;

(ii) "decision" shall include intimation given

by any officer lower in rank than the Revisional

Authority.

109. (1) Subject to the provisions of this

Chapter, the Goods and Services Tax Tribunal

constituted under the Central Goods and Services Tax

Act shall be the Appellate Tribunal for hearing appeals

against the orders passed by the Appellate Authority or

the Revisional Authority under this Act.

Appellate

Tribunal and

Benches

thereof.

449

PART–II]

LA GAZETTE DE L'ETAT

(2) The constitution and jurisdiction of the State

Bench and the Area Benches located in the State shall

be in accordance with the provisions of section 109

of the Central Goods and Services Tax Act or the rules

made thereunder.

110. The qualifications, appointment, salary and

allowances, terms of office, resignation and removal

of the President and Members of the State Bench and

Area Benches shall be in accordance with the

provisions of section 110 of the Central Goods and

Services Tax Act.

111. (1) The Appellate Tribunal shall not, while

disposing of any proceedings before it or an appeal

before it, be bound by the procedure laid down in the

Code of Civil Procedure, 1908, but shall be guided by

the principles of natural justice and subject to the

other provisions of this Act and the rules made

thereunder, the Appellate Tribunal shall have power to

regulate its own procedure.

(2) The Appellate Tribunal shall, for the purposes

of discharging its functions under this Act, have the

same powers as are vested in a civil court under the

Code of Civil Procedure, 1908, while trying a suit in

respect of the following matters, namely:-

(a) summoning and enforcing the attendance

of any person and examining him on oath;

(b) requiring the discovery and production of

documents;

(d) subject to the provisions of sections 123

and 124 of the Indian Evidence Act, 1872,

requisitioning any public record or document or

a copy of such record or document from any

office;

(e) issuing commissions for the examination

of witnesses or documents;

President and

Members of

Appellate

Tribunal, their

qualification,

appointment,

conditions of

service, etc.

Procedure

before

Appellate

Tribunal.

Central

Act 5

of 1908.

Central

Act 5

of 1908.

Central

Act 1

of 1872.

450

LA GAZETTE DE L'ETAT

[PART–II

(f) dismissing a representation for default or

deciding it ex parte;

(g) setting aside any order of dismissal of any

representation for default or any order passed

by it exparte; and

(h) any other matter which may be prescribed.

(3) Any order made by the Appellate Tribunal may

be enforced by it in the same manner as if it were a

decree made by a court in a suit pending therein, and

it shall be lawful for the Appellate Tribunal to send for

execution of its orders to the court within the local

limits of whose jurisdiction,-

(a) in the case of an order against a company,

the registered office of the company is situated;

(b) in the case of an order against any other

person, the person concerned voluntarily resides

or carries on business or personally works for

gain.

(4) All proceedings before the Appellate Tribunal

shall be deemed to be judicial proceedings within the

meaning of sections 193 and 228, and for the purposes

of section 196 of the Indian Penal Code, and the

Appellate Tribunal shall be deemed to be civil court

for the purposes of section 195 and Chapter XXVI of

the Code of Criminal Procedure, 1973.

112. (1) Any person aggrieved by an order

passed against him under section 107 or section 108

of this Act or the Central Goods and Services Tax

Act may appeal to the Appellate Tribunal against

such order within three months from the date on

which the order sought to be appealed against is

communicated to the person preferring the appeal.

Central

Act 45

of 1860.

Central

Act 2

of 1974.

Appeals to

Appellate

Tribunal.

451

PART–II]

LA GAZETTE DE L'ETAT

(2) The Appellate Tribunal may, in its discretion,

refuse to admit any such appeal where the tax or input

tax credit involved or the difference in tax or input tax

credit involved or the amount of fine, fee or penalty

determined by such order, does not exceed fifty

thousand rupees.

(3) The Commissioner may, on his own motion,

or upon request from the Commissioner of central tax,

call for and examine the record of any order passed

by the Appellate Authority or the Revisional Authority

under this Act or under the Central Goods and Services

Tax Act for the purpose of satisfying himself as to the

legality or propriety of the said order and may, by

order, direct any officer subordinate to him to apply

to the Appellate Tribunal within six months from the

date on which the said order has been passed for

determination of such points arising out of the said

order as may be specified by the Commissioner in his

order.

(4) Where in pursuance of an order under sub-

section (3) the authorised officer makes an application

to the Appellate Tribunal, such application shall be

dealt with by the Appellate Tribunal as if it were an

appeal made against the order under sub-section (11)

of section 107 or under sub-section (1) of section 108

and the provisions of this Act shall apply to such

application, as they apply in relation to appeals filed

under sub-section (1).

(5) On receipt of notice that an appeal has been

preferred under this section, the party against whom

the appeal has been preferred may, notwithstanding that

he may not have appealed against such order or any

part thereof, file, within forty-five days of the receipt

of notice, a memorandum of cross-objections, verified

in the prescribed manner, against any part of the order

appealed against and such memorandum shall be

disposed of by the Appellate Tribunal, as if it were an

appeal presented within the time specified in

sub-section (1).

452

LA GAZETTE DE L'ETAT

[PART–II

(6) The Appellate Tribunal may admit an appeal

within three months after the expiry of the period

referred to in sub-section (1), or permit the filing of

a memorandum of cross-objections within forty-five

days after the expiry of the period referred to in sub-

section (5), if it is satisfied that there was sufficient

cause for not presenting it within that period.

(7) An appeal to the Appellate Tribunal shall be

in such form, verified in such manner and shall be

accompanied by such fee, as may be prescribed.

(8) No appeal shall be filed under sub-section

(1), unless the appellant has paid—

(a) in full, such part of the amount of tax,

interest, fine, fee and penalty arising from the

impugned order, as is admitted by him; and

(b) a sum equal to twenty per cent. of the

remaining amount of tax in dispute, in addition

to the amount paid under sub-section (6) of

section 107, arising from the said order, in

relation to which the appeal has been filed.

(9) Where the appellant has paid the amount as

per sub-section (8), the recovery proceedings for the

balance amount shall be deemed to be stayed till the

disposal of the appeal.

(10) Every application made before the Appellate

Tribunal, -

(a) in an appeal for rectification of error or

for any other purpose; or

(b) for restoration of an appeal or an

application,

shall be accompanied by such fees as may be

prescribed.

453

PART–II]

LA GAZETTE DE L'ETAT

113. (1) The Appellate Tribunal may, after

giving the parties to the appeal an opportunity of

being heard, pass such orders thereon as it thinks

fit, confirming, modifying or annulling the

decision or order appealed against or may refer

the case back to the Appellate Authority, or the

Revisional

Authority

the

original

adjudicating authority, with such directions as it

may think fit, for a fresh adjudication or decision

after taking additional evidence, if necessary.

(2) The Appellate Tribunal may, if sufficient

cause is shown, at any stage of hearing of an appeal,

grant time to the parties or any of them and adjourn

the hearing of the appeal for reasons to be recorded

in writing:

Provided that no such adjournment shall be

granted more than three times to a party during

hearing of the appeal.

(3) The Appellate Tribunal may amend any order

passed by it under sub-section (1) so as to rectify any

error apparent on the face of the record, if such error

is noticed by it on its own accord, or is brought to its

notice by the Commissioner or the Commissioner of

central tax or the other party to the appeal within a

period of three months from the date of the order:

Provided that no amendment which has the effect

of enhancing an assessment or reducing a refund or

input tax credit or otherwise increasing the liability of

the other party, shall be made under this sub-section,

unless the party has been given an opportunity of being

heard.

(4) The Appellate Tribunal shall, as far as

possible, hear and decide every appeal within a period

of one year from the date on which it is filed.

(5) The Appellate Tribunal shall send a copy of

every order passed under this section to the Appellate

Authority or the Revisional Authority, or the original

Orders of

Appellate

Tribunal.

454

LA GAZETTE DE L'ETAT

[PART–II

adjudicating authority, as the case may be, the appellant

and

the

Commissioner

the

jurisdictional

Commissioner of central tax.

(6) Save as provided in section 117 or section 118,

orders passed by the Appellate Tribunal on an appeal

shall be final and binding on the parties.

114. The State President shall exercise such

financial and administrative powers over the State

Bench and Area Benches of the Appellate Tribunal in

a State, as may be prescribed:

Provided that the State President shall have the

authority to delegate such of his financial and

administrative powers as he may think fit to any other

Member or any officer of the State Bench or Area

Benches, subject to the condition that such Member

or officer shall, while exercising such delegated

powers, continue to act under the direction, control

and supervision of the State President.

115. Where an amount paid by the appellant

under sub-section (6) of section 107 or sub-section (8)

of section 112 is required to be refunded consequent

to any order of the Appellate Authority or of the

Appellate Tribunal, interest at the rate specified under

section 56 shall be payable in respect of such refund

from the date of payment of the amount till the date

of refund of such amount.

116. (1) Any person who is entitled or required

to appear before an officer appointed under this Act,

or the Appellate Authority or the Appellate Tribunal in

connection with any proceedings under this Act, may,

otherwise than when required under this Act to appear

personally for examination on oath or affirmation,

subject to the other provisions of this section, appear

by an authorised representative.

(2) For the purposes of this Act, the expression

"authorised representative" shall mean a person authorised

by the person referred to in sub-section (1) to appear

on his behalf, being -

(a) his relative or regular employee; or

Financial and

administrative

powers of

State

President.

Interest on

refund of

amount paid

for

admission of

appeal.

Appearance

authorised

representative.

455

PART–II]

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(b) an advocate who is entitled to practice in

any court in India, and who has not been debarred

from practising before any court in India; or

(c)

any

chartered

accountant,

cost

accountant or a company secretary, who holds a

certificate of practice and who has not been

debarred from practice; or

(d) a retired officer of the Commercial Tax

Department of any State Government or Union

territory or of the Board who, during his service

under the Government, had worked in a post not

below the rank than that of a Group-B Gazetted

officer for a period of not less than two years:

Provided that such officer shall not be entitled

to appear before any proceedings under this Act

for a period of one year from the date of his

retirement or resignation; or

(e) any person who has been authorised to act

as a goods and services tax practitioner on behalf

of the concerned registered person.

(3) No person,—

(a) who has been dismissed or removed from

Government service; or

(b) who is convicted of an offence connected

with any proceedings under this Act, the Central

Goods and Services Tax Act, the Integrated

Goods and Services Tax Act or the Union

Territory Goods and Services Tax Act, or under

the existing law or under any of the Acts passed

by a State Legislature dealing with the

imposition of taxes on sale of goods or supply

of goods or services or both; or

prescribed authority; or

(d) who has been adjudged as an insolvent,

456

LA GAZETTE DE L'ETAT

[PART–II

shall be qualified to represent any person under

sub-section (1)—

(i) for all times in case of persons referred to

in clauses (a) (b) and (c); and

(ii) for the period during which the insolvency

continues in the case of a person referred to in

clause (d).

(4) Any person who has been disqualified under

the provisions of the Central Goods and Services Tax

Act or the Goods and Services Tax Act of any other

State or the Union Territory Goods and Services Tax

Act shall be deemed to be disqualified under this Act.

117. (1) Any person aggrieved by any order

passed by the State Bench or Area Benches of the

Appellate Tribunal may file an appeal to the High

Court and the High Court may admit such appeal, if it

is satisfied that the case involves a substantial

question of law.

(2) An appeal under sub-section (1) shall be filed

within a period of one hundred and eighty days from

the date on which the order appealed against is

received by the aggrieved person and it shall be in such

form, verified in such manner as may be prescribed:

Provided that the High Court may entertain an

appeal after the expiry of the said period if it is

satisfied that there was sufficient cause for not filing

it within such period.

(3) Where the High Court is satisfied that a

substantial question of law is involved in any case, it

shall formulate that question and the appeal shall be

heard only on the question so formulated, and the

respondents shall, at the hearing of the appeal, be

allowed to argue that the case does not involve such

question:

Appeal to

High Court.

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PART–II]

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Provided that nothing in this sub-section shall be

deemed to take away or abridge the power of the court

to hear, for reasons to be recorded, the appeal on any

other substantial question of law not formulated by it,

if it is satisfied that the case involves such question.

(4) The High Court shall decide the question of

law so formulated and deliver such judgment thereon

containing the grounds on which such decision is

founded and may award such cost as it deems fit.

(5) The High Court may determine any issue

which-

(a) has not been determined by the State

Bench or Area Benches; or

(b) has been wrongly determined by the State

Bench or Area Benches, by reason of a decision

on such question of law as herein referred to in

sub-section (3).

(6) Where an appeal has been filed before the

High Court, it shall be heard by a Bench of not less

than two Judges of the High Court, and shall be

decided in accordance with the opinion of such Judges

or of the majority, if any, of such Judges.

(7) Where there is no such majority, the Judges

shall state the point of law upon which they differ and

the case shall, then, be heard upon that point only, by

one or more of the other Judges of the High Court and

such point shall be decided according to the opinion

of the majority of the Judges who have heard the case

including those who first heard it.

(8) Where the High Court delivers a judgment in

an appeal filed before it under this section, effect

shall be given to such judgment by either side on the

basis of a certified copy of the judgment.

(9) Save as otherwise provided in this Act, the

provisions of the Code of Civil Procedure, 1908,

relating to appeals to the High Court shall, as far as

may be, apply in the case of appeals under this section.

Central

Act 5

of 1908.

458

LA GAZETTE DE L'ETAT

[PART–II

118. (1) An appeal shall lie to the Supreme Court-

(a) from any order passed by the National

Bench or Regional Benches of the Appellate

Tribunal; or

(b) from any judgment or order passed by the

High Court in an appeal made under section 117

in any case which, on its own motion or on an

application made by or on behalf of the party

aggrieved, immediately after passing of the

judgment or order, the High Court certifies to

be a fit one for appeal to the Supreme Court.

(2) The provisions of the Code of Civil

Procedure, 1908, relating to appeals to the Supreme

Court shall, so far as may be, apply in the case of

appeals under this section as they apply in the case

of appeals from decrees of a High Court.

(3) Where the judgment of the High Court is

varied or reversed in the appeal, effect shall be given

to the order of the Supreme Court in the manner

provided in section 117 in the case of a judgment

of the High Court.

119. Notwithstanding that an appeal has been

preferred to the High Court or the Supreme Court,

sums due to the Government as a result of an order

passed by the National or Regional Benches of the

Appellate Tribunal under sub-section (1) of section 113

or an order passed by the State Bench or Area

Benches of the Appellate Tribunal under sub-section (1)

of section 113 or an order passed by the High Court

under section 117, as the case may be, shall be

payable in accordance with the order so passed.

120. (1) The Commissioner may, on the

recommendations of the Council, from time to

time, issue orders or instructions or directions

fixing such monetary limits, as he may deem fit, for

the purposes of regulating the filing of appeal or

application by the officer of the State tax under the

provisions of this Chapter.

Appeal to

Supreme

Court.

Sums due to

be paid

notwithstanding

appeal, etc.

Appeal not

to be filed in

certain

cases.

Central

Act 5

of 1908.

459

PART–II]

LA GAZETTE DE L'ETAT

(2) Where,

in pursuance of the orders or

instructions or directions issued under sub-section (1),

the officer of the State tax has not filed an appeal or

application against any decision or order passed under

the provisions of this Act, it shall not preclude such

officer of the State tax from filing appeal or

application in any other case involving the same or