Maharashtra Value Added Tax Act

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In pursuance of clause(3) of article 348 of the Constitution of India, the following translation in
English of the Maharashtra Value Added Tax Act,2005 (Mah IX of 2005) is hereby published under
the authority of the Governor.
By order and in the name of the Governor of Maharashtra,
A.M.SHINDEKAR,
Secr et ary to Govern men t,
Law and Judiciary Department
MAHARASHTRA ACT No. IX OF 2005
(First published ,after having received the assent of the President, in the
‘ M ah ar a sh tr a G ov e r nme nt G aze tte ‘ n th e 9
th March 2005)
An Act to consolidate and amend the laws relating to the levy and collection of tax
on the sale or purchase of certain goods in the State of Maharashtra.
WHEREAS it is expedient to consolidate and amend the laws relating to the
levy and collection of tax on the sale or purchase of certain goods in the
State of Maharashtra: it is hereby enacted in the Fifty-third year of the
Republic of India, as follows:-
CHAPTER I
PRELIMINARY
1.
(1)
This Act may be called the Maharashtra Value Added Tax Act,
(Levy and Amendment ) Act, 2005 .
(2) It extends to the whole of the State of Maharashtra.
(3) It shall come into force with effect from the 1
st of April, 2005.
2
. In this Act, unless the context otherwise requires,—
(1)
“agriculture”, with all its grammatical variations and cognate
expressions, includes floriculture, horticulture, the raising of crops,
grass
or garden produce, and also grazing; but does not include
dairy farming, poultry farming, stock breeding, the mere cutting of
wood or grass, gathering of fruit, raising of man-made forests or
rearing of seedlings or plants;
Exp lan ation.
—For the purposes of this clause and clause (4), the
expression “forest” means the forest to which the Indian Forest Act,
1927, in its application to the State of Maharashtra, applies;
(2)
“agriculturist” means a person who cultivates land personally,
for the purpose of agriculture;
(3) “appointed day” means the 1
st of April ,2005.
(4)
“business” includes, —

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(a)
any servi ce;
(b)
any trade, commerce or manufacture;
(c)
any adventure or concern in the nature of’ service,
trade, commerce or manufacture;
whether or not the engagement in such service, trade,
commerce, manufacture, adventure or concern is with
a motive to make gain or profit and whether or not any
gain or profit accrues from such service, trade,
commerce, manufacture, adventure or concern.
Exp lan ation.
For the purpose of this clause,—
(i)
the activity of raising of man-made forest or rearing of
seedlings or plants shall be deemed to be business;
(ii)
any transa ctio n o f sal e or p urcha se o f cap ital assets
pertaining to such service, trade, commerce,
manufacture, adventure or concern shall be deemed to
be a transaction comprised in business;
(iii)
sale or purchase of any goods, the price of which would
be credited or, as the case may be, debited to the profit
and loss account of the business under the double
entry system of accounting shall be deemed to be
transactions comprised in business;
(iv)
any transaction in connection with the commencement
or closure of business shall be deemed to be a
transaction comprised in business;
(5)
“capital asset” shall have the same meaning as assigned to it,
from time to time, in the Income Tax Act, 1961, but the said
expression shall not include jewelry held for personal use or property
not connected with the business;
(6) “Commissioner” means the person appointed to be the
Commissioner of Sales Tax for the purposes of this Act;
(7)
“to cultivate personally”, with its grammatical variations and
cognate expressions, means to carry on any agricultural operation
on one’s own account,—
(a)
by one’s own labour, or
(b)
by the labour of one’s own family, or
(c)
by servants on wages payable in cash or kind (but not
in crop share), or by hired labour under one’s personal
supervision or the personal supervision of any member

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of one’s family.
Exp lan ation I.
—A widow or a minor or a person who is
subject to any physical or mental disability or is a serving
member of the armed forces of the Union, shall be deemed to
cultivate land personally if it is cultivated by her or his
servants or by hired labour.
Exp lan ation II.
—In the case of a Hindu Undivided Family,
land shall be deemed to be cultivated personally, if it is
cultivated by any member of such family;
(8)
“dealer” means any person who for the purposes of or
consequential to his engagement in or, in connection with or
incidental to or in the course of, his business buys or sells, goods in
the State whether for commission, remuneration or otherwise and
includes,-
(a)
a factor, broker, commission agent, del-credere agent or
any other mercantile agent, by whatever name called, who
for the purposes of or consequential to his engagement in
or in connection with or incidental to or in the course of
the business, buys or sells any goods on behalf of any
principal or principals whether disclosed or not;
(b)
an auctioneer who sells or auctions goods whether acting
as an agent or otherwise or, who organizes the sale of
goods or conducts the auction of goods whether or not he
has the authority to sell the goods belonging to any
principal whether disclosed or not and whether the offer of
the intending purchaser is accepted by him or by the
principal or a nominee of the principal;
(c)
a non resident dealer or as the case may be, an agent.
residing in the State of a non-resident dealer, who buys or
sells goods in the State for the purposes of or
consequential to his engagement in or in connection with
or incidental to or in the course of, the business.
(d)
any society, club or other association of persons which
buys goods from, or sells goods to, its members;
Explanation-
For the purposes of this clause, each of the
following persons, bodies and entities who sell any goods
whether by auction or otherwise, directly or through an
agent for cash, or for deferred payment, or for any other
valuable consideration, shall, notwithstanding anything
contained in clause (4) or any other provision of this Act,

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be deemed to be a dealer, namely:-
(i) Customs Department of the Government of India
administering the Customs Act, 1962;
(ii) Departments of Union Government and any
Department of any State Government;
(ii i) Inco rp orated o r unincorpo ra ted so ci eties, club s o r
other associations of persons;
(iv) Insurance and Financial Corporations, institutions or
companies and Banks included in the Second
Schedule to the Reserve Bank of India Act, 1934;
(v) Local authorities;
(vi) Maharashtra State Road Transport Corporation
constituted under the Road Transport
Corporation Act, 1950;
(vii) Port Trusts;
(viii) Public Charitable Trusts registered under the
Bombay Public Trusts Act, 1950;
(ix) Railway Administration as defined under the Indian
Railways Act, 1989 and Konkan Railway Corporation
Limited;
(x) Shipping and construction companies, air transport
companies, airlines and advertising agencies;
(xi) any other corporation, company, body or authority
owned or constituted by, or subject to administrative
control, of the Central Government, any State
Government or any local authority:
Exception I.
—An agriculturist who sells exclusively
agricultural produce grown on land cultivated by him
personally, shall not be deemed to be a dealer within
the meaning of this clause.
Exception II.
—An educational institution carrying on
the activity of manufacturing, buying or selling goods,
in the performance of its functions for achieving its
objects, shall not be deemed to be a dealer within the
meaning of this clause.
Exception III.
—A transporter holding permit for
transport vehicles (including cranes) granted under
the Motor Vehicles Act, 1988, which are used or

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adopted to be used for hire or reward shall not be
deemed to be a dealer within the meaning of this
clause in respect of sale or purchase of such transport
vehicles or parts. components or accessories thereof.
(9) “declared goods” means declared goods as defined, from time to
time, in the Central Sales Tax Act, 1956;
(10)
“document” includes electronic record as defined in the
Information Technology Act, 2002;
(11)
“earlier law” means any of the following laws, that is to say,—
(i)
The Bombay Sales of Motor Spirit Taxation Act, 1958,
(ii)
The Bombay Sales Tax Act, 1959,
(iii)
………………..
(iv)
The Maharashtra Sales Tax on the Transfer of the Right
to use any goods for any Purpose Act, 1985 and
(v)
The Maharashtra Sales Tax on the Transfer of Property
in Goods involved in the Execution of Works Contract
(Re-enacted) Act, 1989,
each of them as amended, from time to time, and includes
enactments which have validated anything done or omitted to
be done under any of the above-mentioned laws;
(12)
“goods” means every kind of moveable property not being
newspapers, actionable claims, money, stocks, shares, securities or
lottery tickets and includes live stocks, growing crop, grass and trees
and plants including the produce thereof including property in such
goods attached to or forming part of the land which are agreed to be
severed before sa le o r under the co ntract of sal e;
(13)
“importer” means a dealer who brings any goods into the
State or to whom any goods are dispatched from any place outside
the State;
(14) “
legal representative” shall have the meaning assigned to it in
clause (11) of section 2 of the Code of Civil Procedure, 1908;
(15)
“manufacture”, with all its grammatical variations and
cognate expressions includes producing, making, extracting,
altering, ornamenting, finishing or otherwise processing, treating or
adapting any goods;
(16)
“non-resident dealer” means a dealer who effects purchases or
sales of any goods in the State, but who has no fixed or regular place
of business or residence in the State;

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(17)
“person” includes an individual, any State Government, the
Centra l Go vernment, any comp any or so ci ety o r club o r asso cia tion
or body of individuals whether incorporated or not, and also a Hindu
Undivided Family, a firm and a local authority and every artificial
juridical person not falling within any of the preceding descriptions;
(18)
“place of business” includes a warehouse, godown or other
place where a dealer stores his goods and any place where the dealer
keeps his books of accounts;
(19) “prescribed” means prescribed by the rules or by any
notification;
(20) “purchase price” means the amount of valuable consideration
paid or payable by a person for any purchase made including any
sum charged for anything done by the seller in respect of the goods
at the time of or before delivery thereof, other than the cost of
insurance for transit or of installation, when such cost is separately
cha rged;
Exp lan ation I.
—The amount of duties levied or leviable on the goods
under the Central Excise Act, 1944, or the Customs Act, 1962 or the
Bombay Prohibition Act, 1949 shall be deemed to be part of the
purchase price of such goods, whether such duties are paid or
payable by or on behalf of the seller or the purchaser or any other
person.
Exp lan ation II.
—Purchase price shall not include tax paid or payable
by a person in respect of such purchase.
Explanation III.
—Purchase price shall include the amount paid by
the purchaser by way of deposit whether refundable or not which
has been paid whether by way of a separate agreement or not, in
co nnectio n wi th o r incid enta l o r a nci llary to , the sa id purchase of
goods;
Exp lan ation IV
– Where the purchase is effected by way of transfer of
property in goods (whether as goods or in some other form) involved
in the execution of a works contract, purchase price shall be taken
to mean, the total consideration for the works contract and for the
purpose of levy of tax, purchase price shall be taken to mean, the
price as may be determined in accordance with the rules, by making
such deduction from the total consideration for the works contract
as may be prescribed.
(21)
“registered dealer” means a dealer registered under this Act:
(22) “resale” means a sale of purchased goods—

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(i)
in the same form in which they were purchased, or
(ii)
without doing anything to them which amounts to, or
results in, a manufacture,
and the word “resell” shall be construed accordingly;
(23)
“rules” means the rules made under this Act;
(24)
“sale” means a sale of goods made within the State for cash or
deferred payment or other valuable consideration hut does not
include a mortgage, hypothecation, charge or pledge; and the words
“sell”, “buy” and “purchase”, with all their grammatical variations
and cognate expressions, shall be construed accordingly;
Exp lan ation,-— For
the purposes of this clause,—
(a) a sale within the State includes a sale determined to be
inside the State in accordance with the principles
formulated in section 4 of the Central Sales Tax Act, 1956;
(b) (i)
the transfer of property in any goods, otherwise than in
pursuance of a contract, for cash, deferred payment or
other valuable consideration;
(ii)
the transfer of property in goods (whether as goods or in
some other form) involved in the execution of’ a works
co ntract;
(iii)
a delivery of goods on hire-purchase or any system of
payment by instalments;
(iv)
the transfer of the right to use any goods or any
purpose (whether or not for a specified period) for cash,
deferred payment or other valuable consideration;
(v) the supply of goods by any association or body of
persons incorporated or not, to a member thereof or
other valuable consideration;
(vi) the supply, by way of or as part of any service or in
any other manner whatsoever, of goods, being food or
any other article for human consumption or any drink
(whether or not intoxicating), where such supply or
service is made or given for cash, deferred payment or
other valuable consideration:
(25) “sale price” means the amount of valuable consideration paid
or payable to a dealer for any sale made including any sum charged
for anything done by the seller in respect of the goods at the time of
or before delivery thereof, other than the cost of insurance for transit

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or of installation, when such cost is separately charged.
Exp lan ation 1.
—The amount of duties levied or leviable on
goods under the Central Excise Act, 1944 or the Customs Act,
1962 or the Bombay Prohibition Act, 1949, shall be deemed to
be part of the sale price of such goods, whether such duties
are paid or payable by or on behalf of the seller or the
purchaser or any other person.
Exp lan ation II.
— Sale price shall not include tax paid or
payable to a seller in respect of such sale.
Explanation III.
— Sale price shall include the amount
received by the seller by way of deposit, whether refundable or
not, which has been received whether by way of a separate
agreement or not, in connection with or incidental or ancillary
to, the said sale of goods;
Exp lan ation IV
: The amount of valuable consideration paid or
payable of a dealer for the sale of Drugs specified in entry
29 in Schedule C shall be the maximum retail price printed
on the package containing the Drug.
(26)
‘Schedule” means the Schedule appended to this Act;
(27)
“service” means any service as may be notified by the State
Government, from time to time, in the Official Gazette;
(28)
“the State” means the State of Maharashtra;
(29)
“tax” means a sales tax, leviable or as the case may be,
payable, under this Act and includes any amount payable by way of
co mpo si tion;
(30)
“tax-free goods” means goods against which the rate of sales
tax is shown to be NIL in the Schedule and ‘taxable goods’ mans
goods other than tax-free goods;
(31)
“Tribunal” means the Maharashtra Sales Tax Tribunal
constituted under section 11;
(32)
“turnover of purchases” means the aggregate of the amounts
of purchase price paid and payable by a dealer in respect of any
purchase of goods made by him during a given period, after
deducting the amount of,—
(a)
purchase price, if any, refunded to the dealer by the seller in
respect of any goods purchased from the seller and returned to
him within the prescribed period; and
(b)
deposit, it any, refunded in the prescribed period to the dealer
by the seller, in respect of any goods purchased by the dealer.

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Explanation I.
—In respect of goods delivered on hire-purchase
or any system of payment by instalment or in respect of the
transfer of the right to use any goods for any purpose (whether
or not for a specified period) the amounts of purchase price paid
or payable during a given period shall mean the amounts paid
or, as the case may be, due and payable during the said Period.
Explanation II –
……………..
(33) “turno ver of sales” means the a ggregate of the a mo unts o f sa le
price received and receivable by a dealer in respect of any sale of
goods made during a given period after deducting the amount of —
(a)
sale price, if any, refunded by the seller, to a purchaser, in
respect of any goods purchased and returned by the
purchaser within the prescribed period; and
(b)
deposit, if any, refunded in the prescribed period, by the
seller to a purchaser in respect of any goods sold by the
dealer.
Explanation I.
—In respect of goods delivered on hire-
purcha se o r any system of pa yment by insta lment o r in
respect of the transfer of the right to use any goods for any
purpose (whether or not for a specified period) the
amounts of sale price received or receivable during a given
period shall mean the amounts received or as the case
may be, due and payable during the said period;
Explanation II-
…………..
Explanation III.
—Where the registration certificate is
cancelled, the amounts of sale price in respect of sales
made before the date of the cancellation order, received or
receivable after such date, shall be included in the
turnover of sales during a given period;
(34) “vehicle” means a goods carriage as defined in the Motor
Vehicles Act, 1988; and
(35) “year” means the financial year.
CHAPTER II
INCIDENCE AND LEVY OF TAX
3. (1)
Every dealer, who, immediately before the appointed day, holds a
valid or effective certificate of registration or license under any of the
earlier laws or, as the case may be, who is liable to pay tax under
any of the earlier laws, in the year ending immediately before the

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appointed day shall, if his turnover of sales or purchases has, in the
said year under any of such earlier laws, exceeded rupees five lakh,
or, as the case may be, if he is an importer in the said year and his
turnover of sales or purchases in the said year had exceeded rupees
one lakh, shall be liable to pay tax, with effect from the appointed
day, in accordance with the provisions of this Act, till his certificate
or licence is duly cancelled under this Act.
Exp lan ation.— For
the purposes of this sub-section, the expressions
“turnover of sales”, “turnover of purchases” and “importer” shall
have the respective meanings assigned to them under the relevant
earlier laws.
(2)
A dealer to whom sub-section (1)
does not apply and whose turnover,
of all sales made, during the year commencing on the appointed day
or any year subsequent thereto, first exceeds the relevant limit,
specified in sub-section (4), shall, until such liability ceases under
sub -secti on (3),
be liable to pay tax under this Act with effect from
the 1st day of April of the said respective year:
Provided that, a dealer shall not be liable to pay tax in respect of
such sales as take place during the period commencing on the 1st
day of April of the said respective year upto the time when his
turnover of sales (……), as computed from the 1
st day of April of the
said respective year, does not exceed the relevant limit applicable to
him under sub -sectio n (4 ).
(3)
Every dealer who has become liable to pay tax under this Act, shall
continue to be so liable until his registration is duly cancelled; and
upon such cancellation his liability to pay tax, other than tax
already levied or leviable, shall remain ceased until his turnover of
sales (…) again, first exceeds the relevant limit specified in sub-
secti on (4 ) or, as the ca se ma y b e, until he beco mes l iable to pay tax
under sub -secti on (7), (8)
or (9).
(4)
For the purposes of this section, the limits of turnover shall be as
follows
(a) Limit of turnover Rs.
1,00,000.—
in
the ca se of a d ea ler, who is an
importer, and the value of taxable
good s so ld or p urcha sed by him
during the year is not less than Rs.
10,000/-.
(b) Limit of turnover Rs.
5,00,000.—
in
any other case, where the value of
taxable goods sold or purchased by
him during the year is not less than

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Rs. 10,000.
(5) For the purpose of calculating the limit of turnover for liability to
tax,—
(a) except as otherwise expressly provided, the turnover of all sales
and purchases shall be taken, whether such sales or purchases
are of taxable goods or not;
(b) the turnover shall include all sales(…)made by the dealer on his
own account, and also on behalf of his principals whether
disclosed or not;
(c) in the case of an auctioneer, in addition to the turnover, if any,
referred to in clauses (a) and (b), the turnover shall also include
the price of the goods auctioned by him for his principal, whether
the offer of the intending purchaser is accepted by him or by the
principal or a nominee of the principal, if the price of such goods
is received by him on behalf of his principal;
(d) in the case of an agent of a non-resident dealer, in addition to the
turnover, if any, referred to in clause (a), (b) or (c), the turnover
shall also include the sales (…) of the non-resident dealer effected
in the State.
(6)
Notwithstanding anything contained in any contract or any law for
the time being in force, but subject to the provisions of this Act, any
person co vered b y sub-clauses ( a), (b ), or (c) o f cl ause ( 8) of secti on 2
shall be liable to pay tax under this Act, whether or not the principal
is a dealer and whether or not such principal is liable to pay tax
under this Act and whether or not the principals are disclosed.
(7)
Any person who at any time after the appointed day becomes liable
to pay tax under the Central Sales Tax Act, 1956,
but who is not
liable to pay tax under the other provisions of this section shall be
liable, to pay tax on the sales effected by him on and from the day on
which he becomes so liable to pay tax under the Central Sales Tax
Act. 1956 and accordingly nothing contained in the proviso to sub-
secti on (2)
shall apply to him in any year.
(8)
Where a dealer liable to pay tax under this Act is succeeded in the
business by any person in the manner described in clause (a) of sub-
secti on (1)
or sub-section (4)
of section 44, then such person shall,
notwithstanding anything contained in this section, be liable to pay
tax on the sales of goods effected by him on and after the date of
such succession and accordingly nothing contained in the proviso to
sub -secti on (2)
shall app ly to him in a ny year.
(9) Any person who is not liable to pay tax under the foregoing

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provisions of this section, but has been voluntarily registered under
the provisions of this Act, shall be liable to pay tax from the date of
effect of the certificate of registration duly granted to him and
accordingly nothing contained in the proviso to sub-section (2)
shall
app ly to him in a ny year.”
4. Subject to the provisions of this Act and rules, there shall be paid by
every dealer or, as the case may be, every person, who is liable to pay tax
under this Act, the tax or taxes leviable in accordance with the provisions
of this Act and rules.
5. Subject to the other provisions of this Act, and the conditions or
exceptions, if any, set out against each of the goods specified in column (3)
of Schedule A, no tax shall be payable on the sales of any goods specified in
column (2) of that schedule.
6. There shall be levied a sales tax on the turnover of sales of goods
specified in column (2) in the schedules B, C, D or, as the case may be, E
at the rates set out against each of them in column (3) of the respective
Schedule.
7. Where any goods are sold and such goods are packed in any
material, the tax shall be leviable under section 6 on the sales of such
packing material, whether such materials are separately charged for or not,
at the same rate of tax, if any, at which tax is payable on the sales of the
goods so packed.
8. (1)
Nothing in this Act or the rules or the notifications shall be
deemed to impose or authorise the imposition of a tax or deduction of
tax
at source on any sale or purchase of any goods, where such sale or
purchase takes place,—
(a) (i)
outside the State ; or
(ii)
in the course of the import of the goods into the territory of
India, or the export of the goods out of such territory ; or
(b)
in the course of inter-State trade or commerce, and the
provisions of this Act and the said rules and notifications
shall be read and construed accordingly.
Exp lan ation.
—For the purpose of this section, whether a sale
or purchase takes place- outside the State, or in the course of
the import of the goods into the territory of India or export of

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the goods out of such territory, or in the course of inter-State
trade or commerce, shall be determined in accordance with
the principles specified in sections 3. 4 and 5
of the Central
Sales Tax Act, 1956.
(2) In accordance with the notification issued by the Central
Government in exercise of its powers under section 3 of the Foreign
Air Craft (Exemption from Taxes and Duties on Fuel) Act, 2002, no
tax shall be levied on the sales of fuel and lubricants which are
filled into receptacle forming part of any aircraft registered in a
country other than India, if—
(a) the said country is a party to the Convention on
International and Civil Aviation, 1944;
and
(b) the
said country has entered into in Air Services agreement
with India; and
(c) the aircraft is operating on a schedule or non-scheduled
service to or from India.
(3) The State Government may by general or special order
published in the Official Gazette in this behalf, and subject to
such conditions and restrictions as may be specified in the
said order, exempt from payment of tax any class or classes of
sales of goods made by any unit in the Special Economic
Zone, a developer of the Special Economic Zone, any hundred
percent export oriented unit or any unit in the Software
Technology Park or any unit in the Electronic Hardware
Technology Park.
Exp lan ation.–
For the purposes of this sub-section, —
(a) “a unit in the Special Economic Zone” means a unit,-
(i) situated in a zone which the Central Government or, as
the case may be the State Government, and
(ii) which has been certified in this behalf by the
Commissioner.
(b) “a unit in the Software Technology Park” means a unit,-
(i) set up in accordance with the Software Technology
Park Scheme notified by the Government of India
in the Ministry of Commerce and Industry , and
(ii) which has been certified in this behalf by the
Commissioner.
(c) “a unit in the Electronic Hardware Technology Park” means a
unit,-
(i) set up in accordance with the Electronic Hardware
Technology Park Scheme notified by the Government of
India in the Ministry of Commerce and Industry, and

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(ii) which has been certified in this behalf by the
Commissioner.
(d) “a hundred per cent, export oriented unit” means a unit,-
(i) which has been approved as a hundred per cent. export
oriented unit by the Board appointed in this behalf by the
Central Government in exercise of the power conferred by
section 14 of the Industries (Development and Regulation)
Act,1951 and the rules made under that Act, and
(ii) which has been certified in this behalf by the
Commissioner.”
(4) The State Government may by general or special order
published in the Official Gazette, on this behalf and subject to such
conditions and restrictions as may be specified in the order, provide
for exemption from payment of the whole of tax in respect of any
class or classes of sales of goods effected by a unit holding a
Certificate of Entitlement as ,defined under section 88, to whom
incentives are granted under any Package Scheme of Incentives, by
way of exemption from payment of tax.
9. (1) The State Government may, from time to time, by notification in the
Official Gazette,–
(a) amend the Schedule by adding or modifying or deleting any entry
therein and thereupon the Schedule shall stand amended accordingly
for the purpose of levy of tax;
(b) provide for reducing or enhancing the rates of tax or for specifying
the rates of tax where NIL rates are specified, and thereupon the
Schedule shall stand amended for the purposes of this Act:
Provided further that, no notification which provides for enhancement of
rate of tax shall be issued after the expiry of the period of two years from
the appointed day and not more than one such notification shall be issued
within such period.
(………………..)
(2) The provisions contained in sub section (6)
of section 83 regarding rules
made by the State Government shall apply mutatis mutandis
to any
notification issued under sub-section (1) as they apply to the rules made by
the State Government.

CHAPTER III
SALES TAX AUTHORITIES AND TRIBUNAL
10. (1)
For carrying out the purposes of this Act, the State Government
shall appoint an officer to be called the Commissioner of Sales Tax.
(2)
Likewise, the State Government may appoint such number of

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Additional Commissioners of Sales Tax, and such number of,-
(a) Joint Commissioners,
(b) Senior Deputy Commissioners,
(c) Deputy Commissioners,
(d) Assistant Commissioners,
(e) Sales Tax Officers, and
(f) other officers and persons, and give them such
designations, as the Government deems necessary.
(3) The Commissioner shall have jurisdiction over the whole of the
State (….). All other officers shall have jurisdiction over the
whole of the State or over such local areas as the Commissioner
may, by notification in the Official Gazette,
specify.
(4) The Commissioner shall have and exercise all the powers and
perform all the duties, conferred or imposed on the
Commissioner by or under this Act, and the Additional
Commissioner or Additional Commissioners of Sales Tax, if any
be appointed, shall, save as otherwise directed by the
Commissioner by notification in the Official Gazette,
have and
exercise, within his or their jurisdiction, all the powers and
perform all the duties, conferred or imposed on the
Commissioner, by or under this Act.
(5) A Joint Commissioner shall, save as otherwise directed by the
Commissioner by notification in the Official Gazette,
have and
exercise, in the area within his jurisdiction, all the powers, and
shall perform all the duties, conferred or imposed on the
Commissioner, by or under this Act.
(6)
Senior Deputy Commissioners, Deputy Commissioners,
Assistant Commissioners, Sales Tax Officers, other officers and
persons shall, within their jurisdiction, exercise such of the
powers and perform such of the duties of the Commissioner
under this Act, as the Commissioner may, subject to such
conditions and restrictions as he may, by general or special
order impose, delegate to them either generally, or as respects
any particular matter or class of matters by an order notified in
the Official Gazette
(7) The State Government may, subject to such restrictions and
conditions, if any, as it may impose, by notification in the
Official Gazette,
delegate to the Commissioner the powers (not
being the powers of the appointment of Additional Commissioner

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or Joint Commissioner) conferred on the Government by sub-
section (2).

(8) No person shall be entitled to call in question in any proceeding,
any exercise of power including the territorial jurisdiction of any
officer or person appointed under sub-section (2),
after the
expiry of the period of thirty days from the date of receipt by
such person of any communication, intimation, order or notice
under this Act or under any earlier law, issued by such officer or
person. If within the period aforesaid, an application in writing
in the prescribed form raising an objection as to such exercise of
power by or the jurisdiction of any such officer or person is
made to such officer or person, he shall refer the question to the
Commissioner, who shall, after giving the applicant a reasonable
opportunity of being heard, make an order determining the
question. The order made by the Commissioner shall be final.
(9) All officers and persons appointed under sub-section (2) shall he
subordinate to the Commissioner; and the subordination of
officers other than the Commissioner, and of persons, amongst
themselves shall be such as may be prescribed.
(10) The Commissioner may, from time to time, issue such
instructions and directions as he may deem fit to the authorities
and officers subordinate to him for carrying Out the purposes of
this Act, and such autho rities and offi cers sha ll o bserve and
follow such instructions and directions of the Commissioner:
Provided that, no such instructions or directions shall be
issued,—
(i)
so as to require any authority to pass a particular order
or to dispose of a particular case in a particular manner;
or
(ii)
so as to interfere with the discretion of the appellate
authorities in any particular case:
Provided further that, if the Commissioner is of the
opinion that it is necessary in the public interest so to
do, he may cause such instructions and directions to be
published and circulated for general information.
11. (1) There shall be a Tribunal to be called “the Maharashtra Sales Tax
Tribunal”. The Tribunal shall consist of such number of members
appointed by the State Government as the Government may,
from time to time, consider necessary for the proper discharge of
the functions conferred on the Tribunal by or under this Act.

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(2)
The State Government shall appoint one of the members of the
Tribunal to be the President thereof on the basis of his seniority
in the Judicial Service.
(3) The
qualification and the terms of office of the members of the
Tribunal shall be such as may be prescribed, and a member shall
hold office
for such period as may be prescribed or as the State
Government may, by special order in
his case, specify.
(4) Any vacancy of the member of the Tribunal shall be filled up by
the State Government as soon as practicable.
(5) The functions of the Tribunal may, be discharged by any of the
members sitting either singly, or in Benches of two or more
members, as may be determined by the President.
(6) If the members of a Bench are divided, the decision shall be the
decision of the majority if there be a majority; but if the
members are equally divided, they shall State the point or points
on which they differ, and the case shall be referred by the
President of the Tribunal for hearing on such point or points to
one or more of the other members of the Tribunal, including
himself and such point or points shall be decided according to
the majority of the members of the Tribunal who heard the case
including those who first heard it.
(7) During the course of any proceedings, if a Bench is of the
opinion that any earlier decision of any Bench on any point or
issue requires reconsideration, or where such Bench is inclined
to take a decision on any point or issue different than the
decision earlier taken by any Bench then such Bench shall refer
the point or the issue to the President for formation of a larger
Bench. The president shall thereupon form a larger Bench of
such members of the Tribunal as he may determine. Such larger
Bench shall, as far as practicable, be presided over by the
President. The point or the issue shall be decided according to
the decision of the majority of the members constituting such
larger Bench. Where any member including the President is
sitting singly he may in similar circumstances refer the matter
to the President for formation of a larger Bench.
(8) The Tribunal shall have power towards costs after giving the
dealer or person, as the case may be, a reasonable opportunity
of being heard, and the amount of such costs shall be
recoverable from the dealer or person ordered to pay the same in
the manner provided in this Act for recovery of arrears of tax.

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(9)
The Tribunal shall, with the previous sanction of the State
Government, for the purpose of regulating its procedure
including the place or places at which the Tribunal, the Benches
or the members thereof shall sit and dispose of its business,
make regulations consistent with the provisions of this Act rules
and notifications.
(10) The regulations made under sub-section (9) shall be published
in the Official Gazette.

12. (1)
The Commissioner may.——
(i) on receipt of any complaint in the prescribed form from any
dealer or person liable to pay tax under this Act or from any
authority appointed under section 10, that any particular
authority has made in the proceedings of such dealer or
person a false or vexatious order or has taken any action
under this Act vindictively or has vindictively not acted within
a reasonable time upon any application provided for by or
under this Act, or
(ii) on receipt of a report from the Tribunal that, a particular
authority has knowingly or willfully under-assessed any
dealer or person or has passed a false or vexations order or
has taken any action under this Act vindictively, or has
vindictively not acted any reasonable time upon any
application provided for, by or
under this Act, or
(iii) on his own motion, if he has reason to believe that any
authority has passed such order or taken such action or has
made such under-assessment, or has not so acted upon any
application(…….) initiate appropriate enquiry or action in the
matter, and if in his opinion, prima facie case against such
particular authority or officer exists, he may initiate
appropriate action against such authority under the
Maharashtra Civil Services (Conduct) Rules, 1979, or the
Maharashtra Civil Services (Discipline and Appeal) Rules.
1979, or any other relevant rules for the time being in force.
The Commissioner shall within one year of the receipt of the
complaint referred to in clause (i) or report referred to in
clause (ii), send an intimation to the person or dealer making
the said complaint or to the Tribunal, stating therein whether
he has decided to initiate or has initiated any action against
the concerned authority or officer.
(2) The Commissioner may, on finding that any complaint made by
any dealer or person is false or mischievous or has been made

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with a view to defeating the application or purposes of this Act,
within one year of the receipt of the complaint, after giving the
person or the dealer a reasonable opportunity of being heard,
impose on him such fine not exceeding five thousand rupees as
he deems fit and the fine so levied may be recovered in the
manner provided in this Act for recovery of arrears of tax.
13. The Commissioner and all officers and persons appointed under
section 10 and all the members of the Tribunal shall be deemed to be
public servants within the meaning of section 21 of the Indian Penal code.
14. (1) In discharging their functions by or under this Act, the Tribunal
and the Commissioner shall have all the powers of a Civil Court
for the purpose of,—
(a) proof of facts by affidavit;
(b) summoning and enforcing the attendance of any person, and
examining him on oath or affirmation;
(c) compelling the production of documents; and
(d) issuing commissions for the examination of witnesses.
(2) In the case of any affidavit to be made for the purposes of this
Act, any officer appointed by the Tribunal or the Commissioner
may administer the oath to the deponent.
(3) Without prejudice to the provisions of any other law for the time
being in force, where a person, to whom a summons is issued by
the Tribunal or the Commissioner either to attend to give evidence
or produce books of accounts, registers or other documents at a
certain place and time, intentionally omits to attend or produce
the books of accounts, registers or documents at the place and
time, the Tribunal or, the case may be, the Commissioner, may
impose on him such fine not exceeding five thousand rupees as it
or he thinks fit; and the fine so levied may be recovered in the
manner provided in this Act for recovery of arrears of tax:
Provided that, before imposing any such fine, the person
concerned shall be given a reasonable opportunity of being heard.
(4) When any documents are produced by a person or dealer on
whom the summons was issued by the Commissioner and the
Commissioner is of the opinion that such dealer or any other
dealer has evaded or is attempting to evade the payment of any
tax due from him and the documents produced by such dealer or
person are necessary for establishing the case against such
dealer, the Commissioner may, for reasons to be recorded in

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writing, impound the documents and shall grant a receipt for the
same and retain the same for so long as may be necessary in
connection with the proceedings under this Act or for a
prosecution;
Provided that, if the original documents are required by any
statutory authority for any official purpose, then the said
documents shall be made available to such authority for such
purpose for such duration as may be required.
15. No suit, prosecution or other legal proceedings shall lie against any
servant of the Government for anything which is in good faith done or
intended to be done under this Act, the rules or notifications.
CHAPTER IV
REGISTRATION
16. (1)
No dealer shall, while being liable to pay tax under this Act, be
engaged in the business as a dealer, unless he possesses a valid certificate
of registration as provided by this Act:
Provided that, the provisions of this sub-section shall be deemed not
to have been contravened, if the dealer having applied, within the
prescribed time, for such registration as provided in this section, is
engaged in such business:
Provided further that, if any dealer, holds the certificate of
registration granted under the Bombay Sales Tax Act, 1959, which is
effective or valid immediately before the appointed day, it shall not be
necessary for him to apply for a fresh certificate under this section so long
as the said certificate is not duly cancelled under this Act:
Provided also that, a dealer holding an effective certificate of
registra ti on o r, a s the ca se ma y be, a li cence gra nted before the ap poi nted
day, under any laws other than the Bombay Sales Tax Act, 1959, shall,
notwithstanding the fact that he is holding such effective certificate be
required to apply for grant of certificate of registration under this section.
(2)
Every dealer, required by sub-section (1)
to po ssess a certificate of
registration or one who voluntarily desires to get registered shall apply in
the prescribed manner to the prescribed authority for grant of such
registration.
(3) If the prescribed authority, after scrutiny of the application and after
such inquiry as it deems fit, is satisfied that the application for registration
is in order and the prescribed conditions , if any, are fulfilled, shall register
the applicant and issue to him a certificate of registration in the prescribed
form:

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Provided that, the prescribed authority, on finding that the
application is not complete or that the information or documents
prescribed for grant of registration certificate have not been furnished, or,
(…..) the prescribed conditions are not fulfilled, may, after giving the
applicant a reasonable opportunity of being heard, reject the application for
reasons to be recorded in writing.
(4) The Commissioner may, after considering any information furnished
under any of the provisions of this Act or otherwise received, amend from
time to time, any certificate of registration.
(5) A person or a dealer who has got himself registered shall be liable to
pay tax during the period in which his registration certificate is effective,
notwithstanding the fact that subsequently it is found that no registration
certificate was necessary in his case.
(6) Where,—
(a) any business, in respect of which a certificate of registration has
been issued under this section, has been discontinued or otherwise
disposed of, or has been transferred or the place of such business is
changed to a different local area, or
(b) the turnover of sales or the turnover of purchases of a registered
dealer who has become liable to pay tax under section 3 has during
any year not exceeded the relevant limit specified in sub-section (4)
of section 3,
then in the case covered by clause (a), the dealer shall apply in the
prescribed manner and within the prescribed time, for cancellation of his
registration to the Commissioner, and in the case covered by clause (b),
the
dealer may apply, in the prescribed manner, for cancellation, of his
registration to the Commissioner; and thereupon the Commissioner may,
after such inquiry as he deems fit and subject to the rules, cancel the
registration with effect from such date including any date earlier to the date
of the order of cancellation as he considers lit having regard to the
circumstances of the case. The registration certificate cancelled under this
sub-section shall be returned to the Commissioner within the prescribed
time:
Provided that, where the Commissioner is satisfied that any
business in respect of which a certificate has been issued under this
section has been discontinued or disposed of or the place of such business
is changed to a different local area, and the dealer has failed to apply under
clause (a) as aforesaid for cancellation of registration, the Commissioner
may, after giving the dealer a reasonable opportunity of being heard, cancel
the registration with effect from such date as he may fix to be the date in

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accordance with the rules, if any, from which the business has been
discontinued or disposed of or changed to a different local area, as the case
may be:
Provided further that, the cancellation of a certificate of registration
on an application or otherwise shall not affect the liability of the dealer to
pay the tax including any penalty, amount forfeited and interest due for
any period ending on or before .the date of cancellation whether such tax
including any penalty, amount forfeited and interest is assessed before the
date of cancellation but remains unpaid, or is assessed thereafter.
Exp lan ation.
—For the purposes of this section, local area means the
area to which the Post and Telegraph authorities have assigned a Postal
Index Number (PIN).
(7) The Commissioner shall, by such date as he may notify in the Official
Gazette,
prepare a list of all registered dealers and may amend the list,
from time to time. Any person may make an application in the prescribed
form to the Commissioner for a certified copy of any extract from the list
and thereupon the Commissioner, shall furnish a copy of the extract to the
applicant.
(8) Save as otherwise provided in sub-section (9), a certificate of
registration granted under this section and any certificate that may he
granted under this Act, shall be personal to the dealer or person to whom it
is granted, and shall not be transferable.
(9) Where a registered dealer,—
a. effects a change in the name of his business, or
b. is a firm, and there is a change in the constitution of the firm
without dissolution thereof, or
c. is a trustee of a trust, and there is change in the trustees thereof, or
d. is a guardian of a ward, and there is a change in the guardian or
termination of guardianship, or
e. is a Hindu Undivided Family and there is a change of Karta, or
f. is a private limited company which is converted into a public
limited company,
then, merely by reason of occurrence of any of the changes aforesaid, it
shall not be necessary for the dealer, or the firm with the changed
constitution, or the new trustees, or new guardian or the ward or the new
Karta or the public limited company to apply for a fresh certificate of
registration and on information being furnished in the manner required by
secti on 18, the certificate o f registrati on shall, where necessa ry. be
amended and any other certificate granted under the Act, rules or

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notifications shall also continue to be valid and be amended where
necessary with effect from the appropriate date.
17. (1)Every registered dealer who holds, on such date as the
Commissioner may by notification in the Official Gazette
specify, a
certificate of registration, which is valid on the said date (hereinafter, in
this section, referred to as “the existing certificate of registration”), shall
obtain in lieu of the existing certificate of registration a fresh certificate of
registration as provided in this section.
(2) Every dealer, who is required to obtain a fresh certificate under sub-
secti on (1),
shall apply in such form, manner and time and to such
authority as may be prescribed; and such application shall be accompanied
by the existing certificate of registration together with all additional copies
thereof, if any, issued to him.
(3) On receipt of such application, the prescribed authority shall, subject to
rules, issue a fresh certificate of registration, in the prescribed form to the
applicant; and thereupon the fresh certificate of registration, so
issued,
shall, for all the purposes of this Act, be deemed to he a certificate of
registration issued under section 16.
(4) Without prejudice to the other provisions of this Act, all the existing
certificates of registration shall stand cancelled with effect from such date
as the Commissioner may notify in the Official Gazette

(5) The Commissioner may, by the notification issued under sub-section (1)
or (4), a lso provide that such notificatio n shall a pply onl y to such cl ass of
registered dealers as are specified in the said notification and such
notification may be issued by him, from time to time.
(6) The provisions of this section shall mutatis mu tand is
apply in respect of
any other certificate issued by or under the provisions of this Act as they
apply in respect of the certificate of registration.
18.
Any registered dealer liable to pay tax under this Act, who,-
(a) transfers by way of sale or otherwise disposes of his business or
any part thereof, or effects or knows of any other change in the
ownership of the business or
(b) discontinues his business, or changes the place thereof, or opens
a new place of business, or
(c) changes the name of his business, or
(d) enters into a partnership in regard to his business, or
(e) applies for or has an application made against him for
insolvency or liquidation,

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(f) being a company, is involved in merger, de-merger or
amalgamation of companies,
shall, within the prescribed time, inform the prescribed authority
accordingly.
(2)
Where any dealer liable to pay tax under this Act,—
(a) dies, his executor, administrator or other legal representative or,
(b) where he is a firm, a Hindu Undivided Family or an association of
persons and there is a change in the constitution of such firm,
Hindu Undi vid ed Family o r asso ci atio n, ei ther by way of
dissolution, disruption, partial partition or partition, or otherwise,
then every person who was a partner.
4Karta or a member of such
firm, Hindu Undivided Family or association, or
(c) transfers or otherwise disposes of his business in the
circumstances mentioned in sub-section (4) of section 44, then any
person from whom and every person to whom the business is so
transferred,
shall, in the prescribed manner, inform the said prescribed authority of
such death, change in the constitution, dissolution, partial partition.
partition, disruption or transfer.
19.
(1)
Every dealer, who is liable to pay tax, and who is a Hindu
Undivided Family, or an association of persons, club or society or firm or
company, or who is engaged in business as the guardian or trustee or
otherwise on behalf of another person shall, within the period prescribed
send to the authority prescribed, a declaration in the manner prescribed
stating the name of the person or persons who shall be deemed to be the
manager or managers of such dealer’s business for the purposes of this
Act. Such declaration shall be furnished at the time of registration
whenever applicable and may be revised in the prescribed manner, from
time to time.
Every dealer liable to pay tax under this Act who is liable to obtain a
permanent account number under the Income Tax Act, 1961, shall
communicate to the Commissioner, in the prescribed time and manner, the
said number if he has obtained the same and in any other case shall State
whether he has applied for the same and provide the details of the
application .

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CHAPTER V
RETURNS AND ASSESSMENT, ETC.
20. (1)(a) Every registered dealer shall file correct ,complete, self-consistent
return in such form, by such date, for such period and to such authority as
may be prescribed. Different types of returns may be prescribed for
different classes of dealers.
(b) The Commissioner may examine the return to ascertain whether it is
complete and self-consistent. If the return is not complete or self-
consistent, the Commissioner may serve on the dealer, within four months
of date of filing of the return, a defect notice in the prescribed form. The
said registered dealer shall correct the defects and submit to the prescribed
authority a fresh, complete and self-consistent return within one month of
the service of the defect notice:
Provided that the registered dealer who fails to submit a complete or
self consistent fresh return within the said period of one month shall be
deemed not to have submitted the return within the prescribed time as
required under clause (a)
(2) Notwithstanding anything contained in sub-section (1), the
Commissioner may, subject to such terms and conditions, as may be
prescribed, permit any dealer, —
(a) to furnish returns for such different period, or
(b) to furnish a consolidated return relating to all or any of the places of
business of the dealer in the State for such period or periods, to
such authority, as he may direct.
(3) Every person or an unregistered dealer who is required to file a return
under any other provision of this Act, shall file such return for such period,
in such form, by such date and to such authority as may be prescribed and
the provisions contained in paragraph (b) of sub-section (1) shall apply to
such return as they apply to the return prescribed under paragraph (a) of
sub -secti on (1 ).
(4) Any person or dealer who, having furnished a return under sub-
section (1), (2) or (3) discovers any omission or incorrect statement therein,
may furnish a revised return in respect of the period covered by the return
at any time before a notice for assessment is served on him in respect of
the period covered by the return or before the expiry of a period of six
months from the end of the year containing the period to which the return
relates, whichever is earlier”.
21.“(1) Where a return is filed by the prescribed date by a registered dealer
no notice calling the dealer for assessment in respect of the period covered

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by the return shall be served on the dealer after two years from the end of
the year containing the period to which the return relates.
(2) Where a registered dealer has not filed a return in respect of any period
by the prescribed date, no notice calling the dealer for assessment in
respect of the said period shall be served on the dealer after three years
from the end of the year containing the said period :
(3) Notwithstanding anything contained in sub-section (1) or (2) , a notice
for assessment in respect of any period ending on or before the 31
st March
2008, may be served on the dealer within a period of four years from the
end of the year containing the said period.
22. (1)
With a view to promoting compliance with the provisions of this Act,
the Commissioner may arrange for audit of the business of any
registered dealer. For the purpose of this section, the selection of
dealers for audit shall be made from amongst the dealers,—
(a) who have not filed returns by the prescribed dates; or
(b) who have claimed refund of tax; or
(c) where the Commissioner is not, prima-facie,
satisfied with
the correctness of any return filed by a dealer or is not
sa tisf ied with any cla im made, deduction cla imed or turno ver
disclosed in any return filed by the dealer; or
(d) who are selected by the Commissioner on the basis of the
application of any criteria or on a random selection basis; or
(e) where the Commissioner has reason to believe that detailed
scrutiny of the case is necessary.
(2)………..
(3) On the appointed day or, as the case may be, at anytime within
the aforesaid period, any officer to whom the powers and duties
under this section have been delegated, by the Commissioner, in
writing, may conduct audit of the business.
(4) ………..
(5) (a) During the course of the audit, the officer may require the
dealer,—
(i) to afford him the necessary facility to inspect such
hooks of accounts or other documents as he may require
and which may he available at such place,
(ii) to afford him the necessary facility to check or verify
the cash or stock which may be found therein. And

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(iii) to furnish such information as he may require as to
any matter which may he useful for or relevant to any
proceedings under this Act.
(b) The officer conducting the audit shall on no account remove or
cause to he removed any books of accounts, other documents
or any cash or stock.
(6) …………
(7) …………..
(8) ………..
23. (1)Where a registered dealer fails to file a return in respect of any period
by the prescribed date, the Commissioner may assess the dealer in respect
of the said period to the best of his judgement without serving a notice for
assessment and without affording an opportunity of being heard;
Provided that, if after the assessment order is passed, the dealer
submits the return for the said period along with evidence of payment of
tax due as per the return or submits evidence of return for the said period
having been filed before the passing of the assessment order along with
evidence of payment of tax, due as per the return, then the Commissioner
shall cancel by order in writing, the said assessment order.
Provided further that, such cancellation shall be without prejudice to
any interest or penalty that may be levied in respect of the said period and
after such cancellation, the dealer may be assessed in respect of the said
period under the other provisions of this section.
Provided also that no order under this sub-section shall be passed
after three years from the end of the year containing the said period.
(2) Where the return in respect of any period is filed by a registered dealer
by the prescribed date and if the Commissioner considers it necessary or
expedient to ensure that return is correct and complete and he thinks it
necessary to require the presence of the dealer or the production of further
documents, he shall serve on
such dealer, a notice requiring him on a date
and at a place specified therein, either to attend and produce of cause to be
produced all documents on which such dealer relies
in support of his
return, or to produce such documents or evidence as is specified in the
notice.
On the date specified in the notice, or as soon
as may he thereafter, the
Commissioner shall, after considering all the documents or evidence which
may be produced, assess the amount of tax due from the dealer:
Provided that, if a registered dealer fails to comply with the terms of
any notice issued under this sub-section, the Commissioner shall assess,

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to the best of his judgement the amount of tax due from him:
Provided further that,(……) no order of assessment under this sub-
section shall be made after the expiry of three years from the end of the
year containing the period to which return relates.
(3) Where a registered dealer has not filed the return in respect of any
period by the prescribed date, then the Commissioner may, at any time,
within three years from the end of the year containing the said period serve
on the dealer a notice requiring him to attend on a date and at a place
specified therein and after giving the dealer a reasonable opportunity of
being heard, proceed to assess, to the best of his judgment, the amount of
tax due from him:
Provided that, no order of assessment under this sub-section shall
be made after the expiry of four years from the end of year containing the
said period.
(4) Where the Commissioner has reason to believe that a dealer is liable to
pay tax in respect of any period, but has failed to apply for registration or
has failed to apply for registration within the time as required by or under
this Act, the Commissioner may at any time within five years from the end
of the year in which such period occurs, after giving the dealer a reasonable
opportunity of being heard, proceed to assess, to the best of his judgement,
where necessary, the amount of tax, if any, due from the dealer in respect
of that period, and any period or periods subsequent thereto:
Provided that, no order of assessment under this sub-section shall
be made after the expiry of eight years from the end of the said financial
year containing the said period.
(5)(a) During the course of any proceedings under section 64, in case of any
dealer or person, if the prescribed authority is satisfied that tax has been
sought to be evaded in respect of any period or periods by not recording or
recording in an incorrect manner, any transaction of sale or purchase, or
that any
claim has been incorrectly made,
then in such a case
notwithstanding that any notice for assessment has been issued under
other provisions of this section or any other section of this Act,
the
prescribed authority may, after giving such dealer or person a notice in the
prescribed form and a reasonable opportunity of being heard, initiate
assessment o f the dealer or perso n in resp ect of such transa ctio n o r cla im.
(b) During the course of any proceedings under Sec. 64 if the prescribed
authority is satisfied that the tax has been or is sought to be evaded, as
provided under clause (i) by any dealer or person, the said authority may,
after issuing a notice in the prescribed form and after giving a reasonable
opportunity of being heard to such dealer or person proceed to assess such

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dealer or person as provided in clause (i) in
respect of any such transaction
or claim relating to any period or periods and such authority shall,
notwithstanding anything contained in section 59, be deemed to have the
requisite jurisdiction and power to assess such dealer or person in respect
of such tra nsa cti on o f sa le o r purcha se or cl aim, covered by clause ( i) and
such assessment proceedings shall for all purposes of this Act, be deemed
to have been transferred to such authority.
(c) The assessment proceedings under this sub-section shall be without
prejudice to the assessment proceedings in respect of the said period or
periods under any other provisions of this Act by any authority who
otherwise has the jurisdiction to assess such dealer or person in respect of
other transactions of sale or purchase or any other claim which are not
co vered by cla use (i) and cla use (i i).
(d) The assessment under this sub-section shall be made separately in
respect of the transaction or claim relating to the said period or periods to
the best of the judgement of the prescribed authority where necessary and
irrespective of any assessment made under
this
sub -secti on, the dealer
may be assessed separately under the other provisions of this section in
respect of the said period or periods.
Provided that once the dealer or person is assessed under this sub-
secti on, no tax fro m such tra nsa cti on o r clai m and penalty and i nterest, if
any, consequent upon such tax shall be levied or demanded from such
dealer or person, at the time of assessment to tax under the other
provisions of this section in respect of the said period or periods relating to
such transa ctio n o r cla im. ”
(6) If the Commissioner is of the opinion that, in respect of any period
co vered by a return, any turnover of sa les or of purchases has not been
disclosed, or that tax has been paid at a lesser rate, set-off has been
wro ngl y claimed , or ded ucti on ha s been wro ngly claimed , then
notwithstanding anything contained in section 21 or the other provisions of
this section Commissioner may at any time within five years from the end
of the year containing the said period, serve a notice in the prescribed form
on the dealer and proceed to assess him in respect of the said period after
giving him a reasonable opportunity of being heard:
Provided that the assessment order shall be passed, by the
Commissioner to the best of his judgment, where necessary, within the said
period of six years from the end of the uear containing the said period.
(7) Where a fresh assessment ha s to b e made under this secti on to give
effect to any finding or direction contained in any order made under this
Act including an order made by the Tribunal or the High Court or the
Supreme Court, then, notwithstanding anything contained in this section,
such assessment shall be made within a period of thirty-six months from

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the date of communication of such finding or, direction contained in the
order, as the ca se ma y b e,
to the Commissioner.
Provided that, if a certified copy of the said order is supplied by the
dealer concerned to the Commissioner earlier than the said date of
communication, then the period of thirty six months shall be counted from
the date of the said supply.
(8) The Commissioner may call for the record of any matter and conduct
an examination in respect of the same, in the manner as provided in sub-
secti on (2),
call for the books of accounts and other evidence in such matter
and after hearing the dealer concerned pass an appropriate order of
assessment in the matter notwithstanding the fact that in a similar matter,
the Tribunal has given a decision against the State Government or the
Commissioner, if in such matter the State Government or the
Commissioner has already filed an appeal before the appropriate forum
against the order of the Tribunal and such appeal is pending before such
appropriate forum:
Provided that, no order of recovery of the dues including the penalty or
interest or forfeiture shall be passed by the Commissioner or the State
Government in such case, pending decision by such forum, in the matter,
and on decision of the appropriate forum, the Commissioner shall modify
the order in accordance with the order of such forum after giving the dealer
concerned, an opportunity of being heard.
(9) The Commissioner, may on an application in the prescribed form
made by any dealer, call for and examine the record of any proceeding in
which an assessment is pending and if he considers that having regard to
the nature of the case or the amount involved or for any other reason, it is
necessary or expedient to do so, he may issue such directions as he thinks
fit for the guidance of the assessing authority in charge of the case to
enable him to complete the assessment and such directions shall be
binding on the assessing authority :
Provided that, no direction which is prejudicial to the dealer shall he
issued without giving the dealer a reasonable opportunity of being heard.
However, no direction as to the lines on which any investigation connected
with the assessment should be made shall be deemed to be a direction
prejudicial to the dealer.
(10) A dealer or a person may be assessed under a single notice and by a
single order of assessment in respect of more than one period covered by a
return so long as all periods are comprised in one year.
24. (1) The Commissioner may, at any time within two years from the end
of a financial year in which any order passed by him has been served, on

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his own motion, rectify any mistake apparent on the record, and shall
within the said period or thereafter rectify any such mistake which has
been brought to his notice within the said period, by any person affected by
such o rder:
Provided that, no such rectification shall be made if it has the effect
of enhancing the tax or reducing the amount of a refund or interest payable
on refund, unless the Commissioner has given notice in writing in the
prescribed form to such person of his intention to do so
and has allowed
such person a reasonable opportunity of being heard. An application for
rectification shall not be rejected on the ground that there is no mistake
apparent on record unless the person concerned has been given a
reasonable opportunity of being heard:
Provided further that, where a dealer has applied in the prescribed
form within the said period of two years for rectification of the said order
and specified in his application, the quantum by which the amount payable
as per the said order should be reduced, then the Commissioner shall,
without prejudice to the other provisions of this Act including levy of
interest, stay the recovery of such quantum till the disposal of the
application for rectification.
(2) Where any dealer or perso n ha s reco rded in hi s b ook s o f accounts o r, as
the case may he, has claimed in the returns that no tax is payable or that
the tax is payable at a reduced rate on any transaction of sale on account
of any declaration or certificate to be received from the purchasing dealer or
person and he has not produced such certificate or declaration before the
passing of the order of assessment under section 23 for any reason
whatsoever in which assessment order the claim is disallowed, then at any
time within two years from the end of the financial year in which the said
order has been served, he may, unless he has filed an appeal against the
said order, apply to the Commissioner for rectification of the order on the
ground that he has received such declaration or certificate and is in a
position to produce the same and thereupon the Commissioner shall hold
such inquiry as he may deem fit and after hearing the applicant, rectify the
assessment order if the application is in order:
Provided that, in respect of any assessment order sought to be
rectified, only one application for rectification shall he entertained under
this subsection.
(3)
The provisions of sub—section (1)
shall apply mntatis mutandis
to the
rectification of a mistake by the Tribunal or an appellate authority as they
apply to the rectification of a mistake by the Commissioner:
Provided that, where any matter has been considered and decided in
any proceeding by way of appeal or review in relation to any order or part of

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an order, the authority passing the order of appeal or review, may,
notwithstanding anything contained in this Act, rectify the order or part of
the order on any matter other than the matter which has been so
considered and decided.
(4) Where any such rectification has the effect of reducing the amount of
the tax or penalty or interest or the amount of forfeiture, the Commissioner
shall, refund any amount due to such person in accordance with the
provisions of this Act.
(5) Where any such rectification has the effect of enhancing the amount of
the tax or penalty or interest or the amount of forfeiture or reducing the
amount of the refund, the Commissioner shall recover the amount due
from such person in accordance with the provisions of this Act.
“25. (1) After any order including an order under this section or any order
in appeal, is passed under this Act, rules or notifications, by any officer or
person sub-ordinate to him, the Commissioner may, of his own motion, or
upon information received by him, call for the record of such order and
examine whether,–
(a) any turnover of sales or purchases has not been brought to tax or has
been brought to tax at lower rate, or has been incorrectly classified, any
claim is incorrectly granted or that the liability to tax is understated, or
(b) in any case, the order is erroneous, in so for as it is prejudicial to the
interests of revenue, and after examination may by serving on the
dealer a notice in the prescribed form , pass an order to the best of his
judgment, where necessary,
(2) (i) For the purpose of the examination and passing of the order, the
Commissioner may require by service of notice in the prescribed form, the
dealer to produce or cause to be produced before him such books of
accounts and other documents or evidence which he thinks necessary for
the purposes aforesaid.
(ii) No order under this section shall be passed after the expiry of five years
from the end of the year in which the order passed by the sub-ordinate
officer has been served on the dealer.
(iii) Where in respect of any order or part of the said order passed by the
sub-ordinate officer, an order has been passed by any appellate authority
including the Tribunal, or such order is pending for decision in appeal, or
an appeal is filed then whether or not the issues involved in the
examination have been decided or raised in appeal, the Commissioner may
within five years of the end of the year in which the said order passed by
the subordinate officer has been served on the dealer, make a report to the
said appellate authority including the Tribunal regarding his examination

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or the report or the information received by him and the said appellate
authority including the Tribunal shall thereupon, after giving the dealer a
reasonable opportunity of being heard, pass an order to the best of its
judgment, where necessary . For the purposes of section 26, such order
shall be deemed to be an order passed in appeal.
(3) If the State Government or the Commissioner has initiated any
proceeding before an appropriate forum, against a point which is decided
against the State by a judgment of the Tribunal, then the Commissioner
may, in respect of any order, other than the order which is the subject
matter of the judgement, call for the record, conduct an examination as
aforesaid, record his findings, call for the said books of accounts and other
evidence, hear the dealer and pass an order as provided for under this
section as if the point was not so decided against the State, but shall stay
the recovery of the dues including interest, penalty or amount forfeited, in
so far as they relate to such point until the decision by the appropriate
forum and after such decision may modify the order of review, if necessary,
after giving the dealer a reasonable opportunity of being heard.
(4) No proceedings under this section shall he entertained on any
application made by a dealer or a person.
26.(1) An appeal, from every original order, not being an order mentioned in
sub -secti on (2)
of section 85 passed under this Act or rules or notifications,
shall lie if the order is made,—
(a)
by a Sales Tax Officer or an Assistant Commissioner, or any other
officer sub-ordinate thereto, to the Deputy Commissioner;
(b)
by a Deputy Commissioner or Senior Deputy Commissioner, to the
Joint Commissioner; –
(c)
by a Joint Commissioner, Additional Commissioner or the
Commissioner, to the Tribunal.
(2) In the case of an order passed in appeal by a Deputy Commissioner or a
Joint Commissioner, a second appeal shall lie to the Tribunal.
(3) Every order passed in appeal by the Tribunal under this section.
shall, subject to the provisions of sections 24 and 27, be final and every
order passed in appeal by any other appellate authority, shall, subject to
the provisions of sections 24, 25 and 27 be final.
(4) Subject to the provisions of sections 80 and 81, no appeal including
a second appeal shall be entertained unless it is filed within sixty days from
the date of the communication of the order appealed against.
(5) Subject to such rules of procedure as may be prescribed, every
appellate authority (both in the first appeal and the second appeal) shall

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have the following powers, namely :—
(a)
in an appeal against an order of assessment, it may confirm,
reduce, enhance or annul the assessment:
Provided that, where the appeal is filed before the Tribunal, the
Tribunal may set aside the assessment and refer the case back
to the assessing authority for making a fresh assessment in
acco rdance with the directio n given by it a nd af ter ma king such
further inquiry as may be necessary; the assessing authority
shall thereupon proceed to make such fresh assessment and
determine, where necessary, the amount of tax payable on the
basis of such fresh assessment;
(b)
in an appeal against an order imposing a penalty, the appellate
authority may confirm or cancel such order or modify it in
accordance with the provisions of this Act;
(c)
in an appeal against an order levying interest, the appellate
authority may confirm or cancel such order or modify it in
accordance with the provisions of this Act;
(d)
in any other case, the appellate authority may pass such order
in the appeal as it deems just and proper:
Provided that, the appellate authority shall not enhance an
assessment or a penalty or interest or sum forfeited or reduce
the amount of set-off or refund of the tax, unless the appellant
has been given a reasonable opportunity of showing cause
against such enhancement or reduction.
Explan ation.
— While disposing of an appeal, the appellate
authority may consider and decide any matter arising out of the
proceedings in which the order appealed against was passed,
notwithstanding that such matter was not raised before it by
the appellant or that no order was made in the said proceedings
regarding such matter.
(6) The Appellate authority or the Tribunal, as the ease may be, may,
while admitting the appeal, pending the disposal of the appeal, stay the
order appealed against in full or part, subject to such conditions or
restrictions as it may deem necessary including a direction for depositing of
a part or whole of the disputed amount by the appellant.
(7) Every appellate authority, including the Tribunal, in so far as it may,
shall decide the appeals pending before it by such priorities as may be
prescribed.
Provided that, if a person has attained the age of seventy-five years

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or more and such person is the proprietor of the business, a partner in a
firm or a directo r ha ving substa ntia l i nterest in a comp any bei ng a bo dy
corporate, then on an application in the prescribed form made by him in
this regard, any appeal made by the proprietary concern, partnership firm
or the company shall be decided on priority to the exclusion of all other
appeals.
27. (1) An appeal shall lie to the High Court from every order passed by the
Tribunal including a judgment by way of advance ruling, if the High Court
is satisfied that the case involves a substantial question of law.
(2)
The Commissioner or the applicant before the Tribunal aggrieved by any
order passed by the Tribunal may file an appeal to the High Court and
such a ppeal under this sub -sectio n shal l be,—
(a)
filed within one hundred and twenty days from the date on
which the order appealed against is received by the assessee
or the Commissioner;
(b)
in the form of a memorandum of appeal precisely stating
therein the substantial question of law involved.
(3) Where the High Court is satisfied that a substantial question of law
is involved in any case, it shall formulate that question.
(4) 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:
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.
(5) 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.
(6) The High Court ma y determine any i ssue which,—
(a) has not been determined by the Tribunal; or
(b) has been wrongly determined by the Tribunal, by reason of a
decision on such question of law as is referred to in sub-
secti on (1)

(7) The payment of any amount due to be paid by the applicant before
the Tribunal or, as the case may be, by the Commissioner in accordance
with the order of the Tribunal in respect of which an appeal has been
preferred under this section, shall not be stayed by the High Court pending
the final disposal of such appeal, but if such amount is varied as the result

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of the final disposal of the appeal, the difference shall be recovered or, as
the case may be, refunded in accordance with the provisions of this Act.
(8) Where the High Court delivers a judgement in an appeal filed before
it, effect shall be given by the Tribunal to the order passed in the appeal on
the basis of a certified copy of the judgment:
Provided that, for the purposes of this sub-section, the Tribunal may
accept a certified copy of the judgment furnished by the Commissioner or,
as the case may be, by the dealer.
(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.
28. Where any Court or Tribunal or any Appellate authority or any other
authority passes an order in appeal or review to the effect that any tax
assessed under this Act or any other Act should have been assessed under
the provisions of a law other than that under which it was assessed, then
in consequence of such order, such turnover or part thereof may be
assessed to tax at any time within five years from the date of such order,
and where any assessment has already been made, the assessment shall
be modified after giving the dealer a reasonable opportunity of being heard,
notwithstanding that any provision regarding limitation applies to such
assessment p erio d.
CHAPTER VI
PENALTY AND INTEREST
29. (1) …
(2)…
(3) While or after passing any order
under this Act, in respect of
any person or dealer, the Commissioner, on noticing or being
brought to his notice, that such person or dealer has concealed
the particulars or has knowingly furnished inaccurate
pa rti cula rs of a ny transa ctio n liab le to ta x or has co ncea led o r
has knowingly misclassified any transaction liable to tax or has
knowingly claimed set-off in excess of what is due to him, the
Commissioner may, after giving the person or dealer a
reasonable opportunity of being heard, by order in writing,
impose upon him, in addition to any tax due from him, a penalty
equal to the amount of tax found due as a result of any of the
aforesaid acts of commission or omission.
(4) Where any person or dealer has knowingly issued or produced
any document including a false bill, cash memorandum,

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voucher, declaration or certificate by reason of which any
transaction of sale or purchase effected by him or any other
person or dealer is not liable to he taxed or is liable to he taxed
at a reduced rate or incorrect set-off is liable to be claimed on
such transaction, the Commissioner may, after giving the person
or dealer a reasonable opportunity of being heard, by order in
writing, impose on him in addition to any tax payable by him, a
penalty equal to the amount of tax found due as a result of any
of the aforesaid acts of commission or ommission.
(5) ………..
(6) Where, any person or dealer contravenes the provision of section
86, so as to have the quantum of tax payable by him to be under-
assessed, the Commissioner may, after giving the person or dealer
a reasonable opportunity of being heard, by order in writing,
impose on him, in addition to any tax payable by him a penalty
equal to half the amount of tax which would have been under-
assessed or one hundred rupees, whichever is more.
(7) Where, any person or dealer has failed without reasonable cause
to comply with any notice in respect of any proceedings, the
Commissioner may, after giving the person or dealer a reasonable
opportunity of being heard, by order in writing, impose on him, in
addition to any tax payable by him, a penalty equal to one
thousand rupees.
(8) Where, any person or dealer has failed without reasonable cause
to file within the prescribed time, a return for any period as
provided under section 20, (….) the Commissioner may, after
giving the person or dealer a reasonable opportunity of being
heard, by order in writing, impose on him, in addition to any tax
payable by him, a sum of rupees two thousand by way of penalty.
Such penalty shall be without prejudice to any other penalty,
which may be imposed under this Act:
Provided that, if the return is filed before the initiation of the
proceeding for levy of penalty, the penalty shall be levied at rupees
one thousand and in any other case, the penalty shall be levied at
rupees two thousand.
(9) (a) ……………
(b) … .. …….
(c) Where a dealer has tiled a return and such return is found to
be not complete or self consistent,
then the Commissioner
may, after giving the dealer a reasonable opportunity of being

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heard, impose on him, by order in writing, a penalty of rupees
one thousand. The levy of penalty shall be without prejudice
to any other penalty which may be imposed under this Act.
(10) Where a person or dealer has collected any sum by way of tax in
contravention of the provisions of section 60, —
(a) he shall be liable to pay a penalty not exceeding two
thousand rupees, and
(b) in addition, any sum collected by the person or dealer
in contravention of section 60 shall be forfeited to the State
Government.
If the Commissioner in the course of any proceeding
under this Act or otherwise, is of the opinion that any
person has become liable to a penalty or forfeiture or
both penalty and forfeiture of any sum under this sub-
section, he may serve on such person a notice in the
prescribed form requiring him on a date and at a place
specified in the notice to attend and show cause why a
penalty or forfeiture or both penalty and forfeiture of
any sum as provided in this sub-section should not be
imposed on him. The Commissioner shall thereupon
hold an inquiry and shall make such order as he thinks
fit. When any order of forfeiture is made the
Commissioner shall publish or cause to be published a
notice thereof for the information of the persons
concerned giving such details and in such manner as
may be prescribed.”
(11) No order levying penalty under the foregoing provisions of this
section shall be passed in respect of any period after five years
from the end of the year containing the said period.”
(12) No order levying penalty under any of the foregoing sub-
sections shall be made :-
(a) by a Sales Tax Officer , or an Assistant Commissioner, where
the penalty exceeds rupees five lakh except with the prior
approval of the Deputy Commissioner.
(b) by a Deputy Commissioner or a Senior Deputy
Commissioner, where the penalty exceeds rupees ten lakh
except with the prior approval of the Joint Commissioner.
Provided that , nothing in this sub-section shall apply to
any penalty which can be imposed by an appellate authority.

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(13) For the purposes of this section, Commissioner includes any
appellate authority appointed or constituted under this Act.
30.
1) A dealer who is liable to pay tax in respect of any year, and who has
failed to apply for registration or has failed to apply for registration
within the time as required by or under this Act, shall be liable to pay
b y way of simp le i nterest, i n respect o f ea ch o f such years, i n add ition
to the amount of tax payable in respect of such year, a sum calculated
at the prescribed rate on the amount of such tax for each month or
part thereof for the period commencing on the 1
st April of the
respective year to the date of payment of tax . The amount of such
interest shall be calculated by taking into consideration the amount of,
and the date of, such payment, when the payment is made on different
dates or in parts or is not made. When, as a result of any order passed
under 45 this Act, the said amount of tax is reduced, the interest shall
be reduced accordingly and where the said amount is enhanced
as a
result of any order, the interest on the enhanced amount shall be
calculated mu tatis mutandis
upto the date of such order.
Provided that, in respect of any of such years, the amount of the
interest lpayable under this sub-section shall not exceed the amount of tax
found payable for the respective year.
(2) A registered dealer who has failed to pay the tax within the time
specified by or under this Act, shall be liable to pay by way of simple
interest, in addition to the amount of such tax, a sum calculated at the
prescribed rate on the amount of such tax for each month or part thereof
after the last date by which he should have paid such tax:
Provided that, in relation to the tax payable according to the return
or, as the case may be, a fresh return or revised return, the said dealer
shall, notwithstanding anything contained in any other provision of this
Act, be deemed not to have paid the amount of such tax within the time he
is required by or under the provisions of this Act to pay it if he has not paid
the full amount of such tax on or before the last date prescribed for
furnishing of such return and accordingly, if he has not paid the full
amount of such tax or has paid only the part of the amount of such tax by
such date. he shall be liable under this clause for payment of interest after
such date on the full or part, as the case may be, of the amount of tax
which has not been paid by such date and where a dealer has furnished a
fresh return or revised return and the amount of tax payable as per the
fresh return or revised return exceeds the amount of tax payable as per the
original return, then for the purposes of this sub-section, the dealer shall
be deemed to have been required to pay the excess amount of tax at the
time he was required to pay the tax as per the original return and
accordingly he shall be liable to pay interest under this sub-section on the

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said excess amount of tax.
(3) In the case of a registered dealer, in whose case, any tax other
than the tax on which interest is leviable under sub-section (2)
has remained unpaid upto one month after the end of the period
of assessment, such dealer shall be liable to pay by way of simple
interest, a sum calculated at the prescribed rate on the amount of
such tax for each month or part thereof from the date next
following the last date of the period covered by an order of
assessment till the date of the order of assessment and where any
payment of such unpaid tax whether in full or part is made on or
before the date of the order of assessment, the amount of such
interest shall be calculated by taking into consideration the
amount and the date of such payment. If, as a result of any order
passed under this Act, the said amount of tax is reduced, then the
interest shall be reduced accordingly and where the said amount
is enhanced, then interest on the enhanced amount shall be
calculated mutatis mutandis
up to the date of such order from the
said date next.
(4) (……………..)
CHAPTER VII
PAYMENT OF TAX AND RECOVERY
31. (1)
(a) Subject to the provisions contained in clause (b), the
Commissioner may, by a notification in the Official Gazette,
subject to such
conditions and restrictions as may be specified in the notification, require
any dealer or person or class of dealers or persons (hereinafter in this
section referred to as “the employer”) to deduct the tax or such amount of
tax as may be specified in the notification, payable on the purchases other
than the purchases to which section 8 applies, effected by them in the
period or periods specified in the said notification.
Exp lan ation.
—For the purposes of this section, the tax payable on
purchases shall mean the sum collected separately from the said employer
by way of sales tax by the supplier on the corresponding supplies effected
by him in the said period or periods and the deduction is to be made from
the sums payable to the supplier on account of the said supply.
(b) (i)
The Commissioner may by a like notification require any class of
employers to deduct tax or such amount of tax as may be specified from
and out of the amount payable (excluding the amount of tax, if any,
separately charged by the contractor) by such employer to a dealer to
whom a wo rk s contra ct ha s been awarded, towa rd s executi on o f the said
wo rks co ntract:

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Provided that, the quantum of such deduction shall not exceed the
quantum of tax payable towards such works contract:
Provided further that, no deduction shall be made from any payment made
to any sub-contractor by a principal contractor where the principal
contractor has assigned the execution of any works contract, in whole or in
part, to the said sub-contractor:
Provided also that, no deduction as provided under this clause shall be
mad e i n respect o f any sale or p urcha se to which secti on 8 app lies.
Exp lan ation.
—Where any payment in the nature of an advance payment
towards the execution of a works contract is made by an employer to a
dealer and such amount is adjustable against the total contract value
payable to the said dealer, then, for the purposes of this clause, the
advance payment shall be deemed to be the amount paid towards the
execution of the works contract only as and when such advance payment is
adjusted, in part or otherwise, against the total amount payable towards
the wo rks co ntract.
(ii)
Where on an application being made by any contractor in this
behalf, the Commissioner is satisfied that the contract under reference is
separable and involves both a works contract and labour or is not a works
contract and therefore justifies deduction of tax only as a part of the sum
payable in respect of any works contract or. as the case may be, justifies no
deduction at all, he shall grant him such certificate as may be appropriate:
Provided that, the Commissioner may reject such application, or on his
own motion, cancel or modify such certificate, after giving the contractor a
reasonable opportunity of being heard:
Provided further that, nothing in the said certificate shall affect the tax
liability of the contractor.
(iii)
Where such certificate is produced by the contractor, before the
employer, the employer shall, unless the certificate is cancelled or modified
by the Commissioner, make deduction of tax in accordance with the said
certificate. In the event of such certificate being cancelled or modified as
provided, the employer shall make the deductions accordingly.
(2) For the purpose of this section, where any amount of tax referred to in
sub -secti on (1)
is credited to any account whether called the “suspense
account” or by any other name, in the hooks of accounts of the employer,
such crediting shall be deemed to be credit of such tax to the account of
the employer and the provisions of this Act shall apply accordingly.
(3) Any registered dealer who is not covered as an employer under the said
notification may apply to the Commissioner for making the provisions
relating to the employers applicable to him and subject to such conditions

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and restrictions as may be prescribed, the Commissioner may, by order in
writing, accept the request.
(4) Any amount or any sum deducted in accordance with the provisions of
this section and paid to the State Government shall he treated as a
payment of tax on behalf of the person making the said supply and credit
shall be given to the said person in respect of the relevant period for the
amount so deducted and paid on the production of the certificate furnished
under this section.
(5) Any employer deducting any sum in accordance with this section, shall
pay within the prescribed time, the sum so deducted to the credit of the
State Government. If the employer does not deduct or after deducting fails
to pay the tax as required by this section, he shall he deemed not to have
paid the tax within the time he is required by or under the provisions of
this Act to pay it and all the provisions of this Act including the provisions
relating to interest shall apply mutatis mutan dis
to such unpaid tax.
(6) T he power to reco ver tax by deductio n at so urce shall he without
prejudice to any other mode of recovery.
(7) Every person deducting tax in accordance with the provisions of this
section shall within such periods as may be prescribed, furnish to the
person to whose account the credit of the tax is to he given under this
section, a certificate in the prescribed form.
(8) Every employer shall, as prescribed in the rules, and in the prescribed
time, apply to the Commissioner for allotment of a sales lax deduction
acco unt numb er. The number sha ll be q uoted in such do cuments.
Statements and returns as may be prescribed.
(9) Where tax is deductible at source by any employer, the person
making the said supply shall not be called upon to pay tax himself to the
extent to which the tax has been deducted in respect of the said supply.
(10) The employer shall within the prescribed time after the end of each
year, file a return in such form and to such authority as may be prescribed.
Any return filed on a floppy diskette, magnetic cartridge tape, CD-ROM or
any other computer—readable media as may he prescribed, shall be
deemed to be a return for the purposes of this section. While receiving the
return on computer—readable media, the Commissioner shall carry out
appropriate checks by scanning the documents filed on computer—
readable media and the said media shall be duly authenticated by the
Commissioner.
32. (1) Tax shall be paid in the manner herein provided, and at such
intervals as may he prescribed.
(2) A registered dealer furnishing returns as required by section 20 shall

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pay into the Government treasury, in such manner and at such intervals
as may be prescribed, the amount of tax due from him for the period
covered by a return which he is required to file along with the amount of
interest and any other sum payable by him.
(3) A registered dealer furnishing a revised return in accordance with sub-
section (4) of section 20, when the revised return shows that a larger
amount of tax than, the tax already paid, is payable, shall first pay into the
Government treasury the extra amount of tax.
(4) (a) (i)
The amount of tax due where the return or revised return has
been furnished without full payment thereof shall be paid forthwith.
(ii)
The amount of tax which it becomes necessary to pay on account of the
reduction in set-off because of any contingency specified in the rules, shall
he paid at the time prescribed for making payment of tax for the period in
which such co ntingency occurs.
(b) (i)
The amount of tax due as per any order passed under any provision of
this Act, for any period, less any sum already paid in respect of the said
period; and
(ii)
the amount of interest or penalty or both, if any, levied under any
provision of this Act; and
(iii)
the sum, if any, forfeited and the amount of fine, if any, imposed
under the Act or rules; and
(iv)
the amount of tax, penalty and interest demanded in the context of
ex cess a va ilment o f incenti ves or avail ment of i ncentives no t due ; a nd
(v)
any other amount due under this Act,
shall be paid by the person or dealer or the person
liable therefor into the
Government treasury within thirty days from the date of service of the
notice issued by the Commissioner in respect thereof:
Provided that, the Commissioner may, in respect of any particular dealer or
person, and for reasons to be recorded in writing, allow him to pay the tax,
penalty, interest or the sum forfeited, by instalments but the grant of
instalment to pay tax shall be without prejudice to the other provisions of
this Act including levy of penalty, or interest, or both.
(5) Any tax, penalty, interest, fine or sum forfeited, which remains unpaid
after the service of notice under sub-section (4) or any installment not duly
paid or any amount due or payable under this Act, shall be recoverable as
an arrears of land revenue.
(6) Notwithstanding anything contained in this Act or in any other law
for the time being in force or in any contract, where any sum collected by a
person by way of tax in contravention of section 60, is forfeited under

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section 29 and is recovered from him, such payment or recovery shall
discharge him of the liability to refund the sum to the person from whom it
was so collected. A refund of such sum or any part thereof can he claimed
from the Commissioner by the person from whom it was realised by way of
tax, provided such person has not resold the goods within a period of two
years from the date of purchase and an application in writing in the
prescribed form is made to the Commissioner, within two years from the
date of the order of forfeiture. For this purpose, the Commissioner may
send an intimation in the prescribed form to such of the said purchasers
whose names and addresses are available in the records of the person who
has collected any sum in contravention of section 60. On receipt of such
application, the Commissioner shall hold such inquiry as he deems fit, and
if the applicant proves to the satisfaction of the Commissioner that the
goods are not resold by him as aforesaid and if the Commissioner is
satisfied that the claim is valid and admissible and that the amount so
cla imed as refund wa s actua lly pa id in Go vernment treasury o r reco vered
and no set-off or refund in respect of that amount was granted, he shall
refund the sum or any part thereof, which is found
due to the person
concerned.
(7) (i) There shall be established a Fund to be called “the Maharashtra
Consumer Protection and Guidance Fund “ (hereinafter, in this section,
referred to as “ the Fund “). From the amounts forfeited and recovered
except for the amounts refunded as aforesaid to the purchasers and except
for
the amounts in respect of which a set–off or refund is granted, the
remaining amount shall, after deducting the expenses of collection and
recovery as determined by the Slate Government, under appropriation duly
made by law in this behalf, he entered into, and transferred to, that Fund.
(ii)
No sum from the Fund shall be paid or applied for any purpose other
than the one specified in clause (iii).
(iii)
The Fund shall be administered in the prescribed manner; and the
amount in the Fund shall be utilised for meeting the expenses of any
activities related to consumer protection and guidance as the State
Government may direct, and for giving grant in the prescribed manner to
any voluntary consumer organisation, society, association, body or
institution engaged in providing for the better protection of the interests of
die consumers and having such qualifications as may be prescribed.
(8)(a) Any dealer or person may apply to the Commissioner in the
prescribed form for a clearance certificate and thereupon the Commissioner
may, on the basis of the record, issue a certificate in the prescribed form w
within a period of fifteen days from the date of receipt of the application, in
so far as he may, stating therein, the periods for which the returns have
been filed or, as the case may be, have not been filed, assessments have

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been made, the status of pending proceedings, if any, and the amounts
payable by the applicants, if any.
(b) The Commissioner may, every year on the basis of the record, issue
to every registered dealer a certificate regarding the amounts payable by
him, as on the 1st April of that year, stating therein the periods for which
returns have not been fi1ed, the periodwise outstanding amounts of tax,
penalty, interest and sum forfeited payable by the dealer including the
amounts for which the due date of payment is not yet over, the amounts,
the recovery of which has been stayed and the amounts under installment.
The certificate shall in so far as it may, he issued immediately after the 1st
of Ap ril every year.
(c) Nothing in the certificates issued under this sub-section shall be a
bar on the Commissioner to initiate or continue any proceedings including
recovery proceedings. if it is subsequently found that the certificates were
issued on the basis of incomplete or erroneous information.
33. (1) Notwithstanding anything contained in any law or contract to the
contrary, the Commissioner, on noticing that there is an outstanding
liability of tax, interest or penalty against a dealer or person on whom a
notice under sub-section (4) of section 32 has already been served ,may at
any time, by notice in writing, require,—
(a) any person from whom any amount of money is due, or may
become due, to the said dealer or person, or
(b) any person who holds or may subsequently hold money for or
on account of such dealer or person,
to pay to the Commissioner, either forthwith upon the money becoming due
or being held or within the time specified in the notice (but not before the
money becomes due or is held as aforesaid), an amount equal to the
amount due and outstanding from such dealer as aforesaid:
Provided that, no action under this sub-section shall be taken till the date
prescribed for filing of appeal, if the dealer makes an application in the
prescribed form to the Commissioner before the said date stating therein
that he is proposing to file an appeal against the order in pursuance of
which the said notice under sub-section (4)
of section 32 has been served
on him.
Exp lan ation.
—For the purposes of this section, the amount of money due
to a dealer from, or money held for or on account of a dealer, by any
person, shall be calculated after deducting therefrom such claims (if any)
lawfully subsisting, as may have fallen due for payment by such dealer to
such person.
(2) The Commissioner may, at any time, amend or revoke any such notice,

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or extend the time for making any payment in pursuance of the notice.
(3) Any person making any payment in compliance with a notice under this
section shall be deemed to have made the payment under the authority of
the dealer or a person, and the receipt of the Commissioner shall constitute
a good and sufficient discharge of the liability of such person, to the extent
of the amount referred to in the receipt.
(4) Any person discharging any liability to the dealer or person after receipt
of the notice referred to in this section, shall be personally liable to the
Commissioner to the extent of the liability discharged. or the extent of the
liability of the dealer or a person for tax, penalty, interest and sum
forfeited, whichever is less.
(5) Where a person to whom a notice under this section is sent proves to
the satisfaction of the Commissioner that the sum demanded or any part
thereof is not due to the dealer or a person, or that he does not hold any
money for or on account of the dealer or a person, then, nothing contained
in this section shall be deemed to require such person to pay any such sum
or part thereof, as the case may be, to the Commissioner.
(6) Subject to the provisions of sub-section (5),
any amount
of money which
a person is liable to pay to the Commissioner, shall, under sub-section (1)
read with sub-section (4), if it remains unpaid, he recoverable as if it is a
sum demanded under section 32 and accordingly any notice served under
this section shall he deemed for the purposes of this Act to be a notice
served under section 32 and the unpaid amounts shall be recoverable as
arrears of land revenue.
34. (1) For the purpose of effecting recovery of the amount of tax,
penalty, interest, amount forfeited or any other sum, due and recoverable
from any dealer or other person by or under the provisions of this Act, as
arrears of land revenue.—
(i)
the Commissioner of Sales Tax shall have and exercise all the powers
and perform all the duties of the Commissioner under the Maharashtra
Land Revenue Code 1966;
(ii)
the Additional Commissioner of Sales Tax shall have and exercise all
the powers and perform all the duties of the Additional Commissioner
under the said Code;
(iii)
the Joint Commissioner of Sales Tax shall have and exercise all the
powers and perform all the duties of the Collector under the said Code ;
(iv)
the Senior Deputy Commissioner and the Deputy Commissioner of
Sales Tax shall have and exercise all the powers (except the powers of
confirmation of sale and arrest and confinement of a defaulter in a civil jail)
and perform, all the duties of the Assistant or Deputy Collector under the

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said Code;
(v)
the Assistant Commissioner and the Sales Tax Officer shall have and
exercise all the powers (except the powers of confirmation of sale and arrest
and confinement of a defaulter in a civil jail) and perform all the duties of
the Tahsildar under the said Code.
(2) Every notice issued or order passed in exercise of the powers conferred
by sub-section (1)
shall, for the purposes of sections 24. 25. 26, 27 and 85
be deemed to be a notice issued or an order passed under the said Act.
35. (1) If during the course of inquiry in any proceedings including
proceedings related to recovery of any amount due, in respect of any person
or dealer or during any inspection or search in relation to the business of
any person or dealer under this Act, the Commissioner is of the opinion
that for the purpose of protecting the interests of the revenue it is
necessary so to do, then he may. notwithstanding anything contained in
any law for the time being in force or any contract to the contrary, attach
provisionally by order in writing any money due or which may become due
to such person or dealer from any other person or any money which any
other person holds or may subsequently hold for or on account of such
person or dealer:
Provided that, the Commissioner shall specify in his order the amount of
money to which the order applies:
Provided further that, the Commissioner may, by an order, revoke such
order, if the dealer furnishes, to the Commissioner, a bank guarantee, in
such time, for such period, as may be specified, in the said order.
(2) Every such provisional attachment shall cease to have effect after the
expiry of a period of one year from the date of service of the order issued
under sub -secti on (1)
Provided that, the Commissioner may, for reasons to be recorded in writing,
extend the aforesaid period by such further period or periods as he may
think fit, so, however that the total period of extension shall not in any case
exceed two years.
(3) The powers under this section shall be exercised by the Commissioner
himself or the Additional Commissioner having jurisdiction over the entire
State or, as the case may be, by any Joint Commissioner to whom the
Commissioner has delegated such powers by a notification published in the
Official Gazette.
(4) Where an order under sub-section (1)
is served upon any person,
provisionally attaching any money, then, such person shall be personally
liable, so long as the attachment order is not revoked or has not ceased to
have effect, to pay to the Commissioner, the amount of money so attached.

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(5) If the said person or the dealer makes an application in the prescribed
form to the Commissioner within fifteen days of the date of service of the
order specified in sub-section (1),
or as the case may be, within fifteen days
of the date of service of the order extending the period under sub-section
(2),
then the Commissioner, after affording such person or dealer a
reasonable opportunity of being heard, and, having regard to the
circumstances of the case, may confirm, modify or cancel the order.
(6) An appeal against any order passed under sub-section (5)
shall lie with
the Tribunal and all other provisions of section 26 shall apply accordingly.
36. (1) Where any notice of demand in respect of any tax, penalty, sum
forfeited or interest (hereinafter in this section, referred to as “Government
dues”) is served upon a dealer or the person liable therefor and any appeal
or other proceedings is filed or taken in respect of such Government dues,
then,—
(a) where such Government dues are enhanced in such appeal or
proceeding, the Commissioner shall serve upon the dealer or person, as the
ca se may be, ano ther no ti ce only in respect o f the amount b y which such
Government dues are enhanced and any recovery proceedings in relation to
such Government dues as are covered by the notice or notices of demand
served upon hi m befo re the di spo sa l of such app ea l o r pro ceed ing may,
without the service of any fresh notice, be continued from the stage at
which such p roceedings sto od i mmedia tely before such disposal ;
(b) where such Government dues are reduced in such appeal or
proceedings,—
(i) it shall not be necessary for the Commissioner to serve upon the
dealer or person a fresh notice;
(ii) the Commissioner shall give intimation of the fact of such reduction
to the dealer or person;
(iii) any recovery proceedings initiated on the basis of the notice or
notices of demand served upon him before the disposal of such appeal or
proceeding may he continued in relation to the amount so reduced from the
stage at which such proceedings stood immediately before such disposal;
(c) no recovery proceedings in relation to such Government dues shall
be invalid by reason only that no fresh notice of demand was served upon
the dealer or person after the disposal of such appeal or proceeding or that
such Government dues have been enhanced or reduced in such appeal or
proceeding:
Provided that, where any Government dues are reduced in such appeal or
proceeding and the dealer or person is entitled to any refund thereto, such
refund shall be made in accordance with the provisions of this Act.

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(2) For the removal of doubts, it is hereby declared that no fresh notice of
demand shall he necessary in any case where the amount of Government
dues is not varied as a result of any order passed in appeal or the
proceeding under this Act.
(3) The provisions of this section shall apply in relation to every notice of
demand served by the Commissioner upon a dealer or any other person
liable for any Government dues.
37. Notwithstanding anything contained in any contract to the contrary,
but subject to any provision regarding creation of first charge in any
Central Act for the time being in force, any amount of tax, penalty, interest,
sum forfeited, fine or any other sum, payable by a dealer or any other
person under this Act, shall he the first charge on the property of the
dealer or, as the case may be, person.
38. (1) Where, during the pendency of any proceedings under this Act or
after the completion thereof, the Commissioner has reason to believe that
the liability of the dealer to pay tax or any other sum payable under this
Act, is likely to be in excess of rupees twenty five thousand and the dealer
creates a charge on, or parts with the possession by any mode of transfer
whatsoever, including sale, mortgage, gift or exchange of any of the assets
of his business valued at rupees ten thousand or more in favour of any
other person with intent to defraud revenue, then, notwithstanding
anything contained in any Act or contract to the contrary such charge or
transfer shall be void as against any claim in respect of any tax or other
sum payable by the dealer as a result of the completion of such
proceedings or otherwise:
Provided that, such charge or transfer shall not be void if made for
adequate consideration and without notice of the pendency of the
proceeding or of the liability to pay any sum on completion of any
proceedings.
(2) Where any person liable to pay tax or other sum payable under this Act
has, during the pendency of any proceeding under this Act or after
completion thereof, created a charge on or parted with possession by any
mode of transfer including sale, mortgage, gift or exchange of any of his
assets in fa vo ur of any other perso n a nd the Co mmi ssioner is o f the
opinion that such charge or transfer becomes void under sub-section (1),
then the Commissioner shall issue a notice and hold enquiry and decide
whether the charge or transfer became void under sub-section (1).
(3) If, after holding such enquiry the Commissioner is satisfied that the
charge or transfer is void, he shall make an order declaring such charge or
transfer to be void for the purposes of this Act.

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Exp lan ation.
—In this section, “assets” includes land, building, machinery,
plant, shares, securities and fixed deposits in banks, to the extent to which
any of the assets aforesaid does not form part of the stock-in-trade of the
business of the assessee.
39. The amount of tax, penalty, interest, composition money, fine or any
other sum payable, and the amount of set off or refund due under the
provisions of this Act shall be rounded off to the nearest rupee and for this
purpose, where such amount contains a part of a rupee consisting of paise,
then, if such part is fifty paise or more, it shall be increased to one rupee,
and if such part is less than fifty paise, it shall be ignored:
Provided that, nothing in this section shall apply for the purposes of
collection by a dealer of any amount by way of tax under this Act.
40. Any payment made by a dealer or person in respect of any period
towards any amount due as per the order passed under this Act shall first
be adjusted except in so far as the recovery of the said amount or part
thereof is stayed under sub-section (6)
of section 26, against the interest
payable by
him on the date of payment in respect of the said period and
thereafter towards the amounts due as a penalty, sum forfeited and fine.
Any amount remaining unadjusted shall then be adjusted towards the tax
payable in respect of that period.
41. (1) The State Government, if satisfied that it
is necessary in the
public interest to grant refund of any tax levied and collected from any
class or classes of dealers or persons or, as the case may be, charged on
the purchases or sales made by any class or classes of dealers or persons,
it may, by notification in the Official Gazette
and subject to such terms and
conditions as may be specified in the notification, provide for grant of
refund of such tax, for such period and to such class of dealers or persons
as specified in the said notification; on such tax payers applying to the
Commissioner in the prescribed form for such refund:
Provided that, such notification may be issued so as to have retrospective
effect so however that the effective date is not earlier than the appointed
day.
2. (………)
3.(……….)
(4) Subject to such conditions as it may impose, the State Government
may, by notification in the Official Gazette,
provide for exemption from the
payment of full or part of the tax payable on the purchases and sales of
motor spirits and crude oil to any class or classes of dealers and for the
purposes of this sub-section “ motor spirit” means such products as the
State Government may notify, from time to time, in the official Gazette.

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42. (1) (a) The State Government may, by a notification in the Official
Gazette,
provide for a scheme of composition, subject to such of tax,
conditions and restrictions as may be provided therein, of tax payable by
the dealers who are engaged in the business, as prescribed, of reselling at
retail, any goods or merchandise and different types of schemes may be
notif ied for dif ferent cl asses of reta ilers.
(b) For the purpose of this section, a dealer shall be considered to be
engaged in the business of selling at retail if 9/10th of his turnover of sales
consists of sales made to persons who are not dealers and if any question
arises as to whether any particular dealer is a retailer, then the question
shall be referred to the Joint Commissioner, who shall after hearing the
dealer, if necessary, decide the question. The order made by the Joint
Commissioner shall be final.
(c) Nothing in this sub-section shall apply to a dealer who is a
manufacturer or who is an importer or who purchases any goods from a
registered dealer whose sales of the said goods are not liable to tax by
virtue of the provisions contained in sub-section (1) of section 8 or who
sells at retail liquor including liquor imported from out of India, Indian
Made Foreign Liquor or Country Liquor.
(2) The State Government may, by a notification in the Official Gazette,
provide for a scheme of composition, subject to such conditions and
restrictions as may be provided therein, of tax payable by dealers who are
running any eating house, restaurant, hotel, refreshment room or boarding
establishment (…) and the tax payable by dealers who are caterers and
serve fo od a nd non-a lco hol ic drinks o r tax payabl e b y d ea ler running
bakeries or dealers of second-hand motor vehicles whose principal
business is buying or selling motor vehicles.
(3) Where a dealer is liable to pay tax on sales effected by way of transfer of
property in goods (whether as goods or in some other form) involved in the
execution of a works contract, he may subject to such restrictions and
conditions as may be prescribed, in lieu of the amount of tax payable by
him under this Act, whether in respect of the entire turnover of sales
effected by way of works contract or in respect of any portion of the
turnover corresponding to individual works contract, pay lump sum tax by
way of composition equal to eight per cent. of the total contract value of the
works contract after deducting from the total contract value the amounts
payable towards sub-contracts to sub-contractors.
43. Where in respect of any tax (including any penalty, interest and
amount forfeited) due from a dealer or person under this Act or under any
earlier law, any other person is liable for the payment thereof under section
44, all the relevant provisions of this Act or, as the case may be, of the

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earlier law, shall in respect of such liability apply to such person also, as if
he were the dealer himself.
44. (1) Where a dealer, liable to pay tax under this Act, dies then.—
(a) if the business in which the dealer was engaged is continued after his
death by his legal representative or any other person, such legal
representative or other person shall be liable to pay the tax including any
penalty, sum forfeited and i nterest due from such d eal er und er this Act o r
under any earlier law, in the like manner and to the same extent as the
deceased dealer, and
(b) if the business in which the dealer was engaged is discontinued
whether before or after his death, his legal representative shall be liable to
pay out of the estate of the deceased, in the like manner and to the same
extent as the deceased dealer would have been liable to pay if he had not
died, the tax including any penalty, sum forfeited and interest due from
such dealer under this Act, or under any earlier law. whether such tax
including any penalty, sum forfeited and interest has been assessed before
his death but has remained unpaid, or is assessed after his death.
(2) Where a dealer, liable to pay tax under this Act, is a Hindu Undivided
Family and there is a partial partition or partition of the joint
family
property amongst the various members or group of members, then each
member or group of members shall be jointly and severally liable to pay the
tax including any penalty, sum forfeited and interest due from the dealer
under this Act or under any earlier law, up to the time of the partial
partition or partition, whether such tax including any penalty, sum
forfeited and interest has been assessed before the partial partition or
partition but has remained unpaid, or is assessed after such event.
(3) Where a dealer, liable to pay tax under this Act, is a firm, and the firm is
dissolved, then every person who was a partner shall he jointly and
severally liable to pay to the extent to which he is liable under section 46,
the tax, including any penalty, sum forfeited and interest due from the firm
under this Act or under any earlier law, up to the time of dissolution,
whether such tax including any penalty, sum forfeited and interest has
been assessed before such dissolution but has remained unpaid, or is
assessed after dissolutio n.
(4) Where a dealer, liable to pay tax under this Act, transfers or
otherwise disposes of his business in whole or in part, or effects any
change in the ownership thereof, in consequence of which he is succeeded
in the business or part thereof by any other person, the dealer and the
person succeeding shall jointly and severally be liable to pay the tax
including any penalty, sum forfeited and interest due from the dealer under
this Act or under any earlier law, up to the time of such transfer, disposal

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or change, whether such tax including any penalty, sum forfeited and
interest has been assessed before such transfer, disposal or change but
has remained unpaid, or is assessed thereafter.
(5) Where the dealer liable to pay tax under this Act,—
(a) is the guardian of a ward on whose behalf the business is carried on
by the guardian, or
(b) are trustees who carry on the business under a trust for a
beneficiary, then,
if the guardianship or trust is terminated, the ward or, as the case may be,
the beneficiary shall be liable to pay the tax including any penalty, sum
forfeited and interest due from the dealer up to the time of the termination
of the gua rdianshi p or trust, whether such tax including a ny pena lty, sum
forfeited and interest has been assessed before the termination of the
guardianship or trust, hut has remained unpaid, or is assessed thereafter.
45. (1) Where any person specified in sub-clause (a), (b)
or (c)
of clause
(8)
of section 2, sells (…)any taxable goods on behalf of his principal, the
person as well as the principal shall both he jointly and severally liable to
pay the taxes on the turnover of such sales (…).
(2) If the principal, on whose behalf the said person has sold (…) any goods,
shows to the satisfaction of the Commissioner that, the tax has been paid
by the said person on such goods under sub-section (I),
the principal shall
not be liable to pay the tax again in respect of the same transaction and
where the person shows to the satisfaction of the Commissioner that the
principal has paid such tax, the person shall not be liable to pay the tax
again in respect of the same transaction.
(3) Where an agent of a non-resident dealer, sells (…) any goods on behalf
of the non-resident dealer in the State, then the nonresident dealer and the
agent residing in the State, shall he jointly and severally liable to pay tax
on the turnover of such sales (…) :
Provided that, if the non-resident dealer shows to the satisfaction of the
Commissioner that the tax payable in respect of such sale (…)has been
paid by the agent residing in the State, then the non-resident dealer shall
not be liable to pay tax again in respect of the same transaction and where
the agent shows to the satisfaction of the Commissioner that the non-
resident dealer has paid such tax, the agent shall not he liable to pay the
tax again in respect of the same transaction.
(4) Where any sale has been effected by way of transfer of property in goods
(whether as goods or in some other form) involved in the execution of a
works contract and the contractor has executed the works contract
awarded to him, through a sub-contractor, directly or otherwise, then

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notwithstanding anything contained in any law or agreement to the
contrary, the relationship between the contractor and the person who has
actually executed the works contract or part of it as a sub-contractor shall
be deemed to be that of the principal and agent and accordingly,—
(a) where such principal assigns the whole or part of the execution of
the works contract to different such agents resulting into the distribution of
the turnover of the said sales amongst the principal and the agents or
wholly amongst the agents whereby the principal escapes the liability to
pay tax on the whole or part of the turnover of sales, then, having regard to
the total turnover of sales, including the total turnover of sales in respect of
execution of such contract, of the principal in the year of assessment being
such that the principal would have been liable to pay tax under this Act ii
such works contract had been executed by himself alone the liability to pay
tax on such total turnover of sales shall he that of the principal;
(b) where such agent executes such works contract on behalf of the
principal and each or either of them is liable to pay tax, then
notwithstanding anything contained in any other law or any contract to the
contrary, the principal and the agent shall be jointly and severally liable to
pay tax in respect of the transfer of property in goods involved in the
execution of such works contract;
(c) if the principal shows to the satisfaction of the Commissioner that
tax has actually been paid by the agent on the turnover of sales, the
principal shall not be liable to pay tax again in respect of the same turnover
of sales on which the agent has paid tax;
(d) if the agent shows to the satisfaction of the Commissioner that the
tax has been actually paid by his principal on the turnover of sales on
which he is liable to pay tax under this Act, then the agent shall not be
liable to pay tax again on the same turnover of sales on which the principal
has paid tax;
(e) no deduction from payment of tax under the preceding clauses shall
be given to the principal or to the agent, unless a duly signed certificate in
the prescribed form is produced;
(f) a contractor assigning execution of a works contract (either in whole
or in part) to a sub-contractor registered under this Act. may deduct from
his total contract value or, as the case may be, the turnover of sales, the
value or the turnover of sales in respect of works contract executed through
the said sub-contractor provided a declaration in the prescribed form
signed by such sub -co ntractor is prod uced;
(g) a sub-contractor who has been assigned execution of works contract
(either in whole or in part) by a contractor may deduct from his total

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contract value or, as the case may be, the turnover of sales, the value or
the turnover of sales in respect of such works contract executed by him
provided a declaration in the prescribed form signed by such contractor is
produced.
46. (1) Notwithstanding any contract to the contrary, where any firm is
liable to pay tax under this Act, the firm and each of the partners of the
firm shall be jointly and severally liable for such payment.
(2) Any notice or order under this Act may be served on any person who
was a partner during the relevant time, whether or not the firm has been
dissolved and all the provisions of this Act shall apply accordingly.
(3) Where any partner retires from the firm, he shall he liable to pay the
tax, penalty, sum forfeited and interest, if any, remaining unpaid at the
time of his retirement and any such amount due up to the date of
retirement, though un-assessed at that date and where at the time of death
of the said partner, the legal representative is not a partner in the said
firm, he shall be liable to pay such amounts only out of the estate of the
deceased, in the like manner and to the same extent as the deceased
partner would have been liable to pay if he had not died.
47. (1)
When two or more companies are to be amalgamated by the order
of Court or of the Central Government and passed after the appointed day
and is to take effect from a date earlier to the date of the order and any two
or more of such companies have sold or purchased any goods to or from
each other in the period commencing on the date from which the order is to
take effect and ending on the date of the order, then such transactions of
sale and purchase shall be included in the turnovers of sale or purchase of
the respective companies and shall be assessed to tax accordingly.
Notwithstanding anything contained in the said order, for all of the
purposes of this Act, the said two or more companies shall be treated as
distinct companies for all the periods upto the date of the said order and
the registration certificates of the said companies shall he cancelled. where
necessary, with effect from the date of the said order.
(2A)(a) When any company is to be demerged by the order of the court or of
the Central Government passed after the appointed day, and is to take
effect from a date earlier to the date of the order, then for all of the
purposes of this Act, it shall be presumed that the two or more companies
brought into existence by the operation of the said order have not sold or
purchased any goods to each other from the date of effect of the order to
the date of the order.
(b) Notwithstanding anything contained in the said order, for all the
purposes of this Act, the said two or more companies shall be treated as a

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single company for all the periods upto the date of the said order and the
registration certificate of the company to be demerged shall be cancelled
with effect from the date of the said order and the said two or more
companies shall, subject to rules, be granted registration certificates from
the date of the said order.
(3) Words and expressions used in this section but not defined shall have
the respective meanings assigned to them in the Companies Act,1956.
CHAPTER VIII
SET-OFF, REFUNDS, ETC.
48. (1) The State Government may, by rules, provide that.—
(a)
in such circumstances and subject to such conditions and
restrictions as may be specified in the rules, a set-off or refund of the whole
or any part of the tax,—
(i) paid under any earlier law in respect of any earlier sales or
purchases of goods treated as capital assets on the day immediately
preceding the appointed day or of goods which are held in stock on the
appointed day by a person who is a dealer liable to pay tax under this Act,
be granted to such dealer; or
(ii) (ii)
paid in respect of any earlier sale or purchase of goods under this
Act be granted to the purchasing dealer; or
(iii) paid under the Maharashtra Tax on Entry of Motor Vehicles into the
Local Areas Act, 1987, be granted to the dealer purchasing or importing
motor vehicles;
(iv) paid under the Maharashtra Tax on Entry of Goods into the Local
Areas Act, 2002, be granted to the dealer;
(b)
for the purpose of the levy of tax under any of the provisions of
this Act, the sale price (…) may in the case of any class of sales be reduced
to such extent, and in such manner, as may be specified in the rules.
(2) No set-off or refund as provided by any rules made under this Act shall
be granted to any dealer in respect of any purchase made from a registered
dealer after the appointed day, unless the claimant dealer produces a tax
invoice, containing a certificate that the registration certificate of the selling
dealer was in force on the date of sale by him and the due tax, if any,
payable on the sale has been paid or shall he paid and unless such
certificate is signed by the selling dealer or a person duly authorised by
him.
(3) Subject to the provisions contained in sub-section (4), where no tax has
been charged separately under any earlier law, the rate of tax applicable for
the purposes of calculating the amounts of set-off, or refund in respect of

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any earlier sale or purchase of goods, or for the purposes of reduction of
sale or purchase price for levy of tax, shall be the rate set-out against the
goods in the relevant Schedule under any earlier law..
(4) Where, under any notification issued under this Act or as the case may
be, any earlier law, any sale or purchase of goods has been exempted from
the payment of whole of sales tax or purchase tax, then, for the purposes of
sub -secti on (3),
the rate of tax applicable shall he nil; and where it is
exempted from payment of any part of sales tax (or purchase tax), the rate
of tax applicable shall be the rate at which the payment of tax is to be made
by virtue of such exempti on.
(5) For the removal of doubt it is hereby declared that, in no case the
amount of set-off or refund on any purchase of goods shall exceed the
amount of tax in respect of the same goods, actually paid, if any, under this
Act or any earlier law, into the Government treasury except to the extent
where purchase tax is payable by the claimant dealer on the purchase of
the said goods effected by him:
Provided that, where tax levied or leviable under this Act or any earlier law
is deferred or is deferrable under any Package Scheme of Incentives
implemented by the State Government, then the tax shall he deemed to
have been received in the Government Treasury for the purposes of this
sub -secti on.
(6) Where at any time after the appointed day, a dealer becomes entitled
to a refund whether under any earlier law or under this Act, then such
refund shall first be applied against the amount payable. if any, under any
earlier law or this Act (….)and the balance amount, if any, shall be
refunded to the dealer.
49. Where any declared goods are sold by a dealer in the course of inter-
State trade or commerce and tax has been paid by him under the Central
Sales Tax Act, 1956, in respect of the sale of such goods in the course of
inter-State trade or commerce, and such dealer shows to the satisfaction of
the Commissioner that tax under this Act, or any earlier law has been paid
in respect of a n earli er sa le o r purcha se of such goo ds made in the State
after the 1st day of October 1958, then an amount equal to the tax so paid
shall be reimbursed to such dealer making such sale in the course of inter-
State trade or commerce, in such manner and subject to such conditions
as may be prescribed.
50. (1)
Subject to the other provisions of this Act and the rules made
thereunder, the Commissioner shall refund to a person the amount of tax,
penalty and interest, if any, paid by such person in excess of the amount
due from him. The refund may be either by deduction of such excess from
the amount of tax, penalty, amount forfeited and interest due, if any, in

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respect of any other period or in any other case, by cash payment:
Provided that, the Commissioner shall first apply such excess towards the
recovery of any amount due in respect of which a notice under subsection
(4) of section 32 has been issued, or, as the case may be. any amount
which is due as per any return or revised return but not paid and shall
then refund the balance, if any.
(2) Where any refund is due to any dealer according to the return or revised
return furnished by him for any period, then subject to the other provisions
of this Act including the provisions regarding provisional refunds such
refund may provisionally be adjusted by him against the tax due and
payable as per the returns or revised return furnished under section 20 for
any subsequent period:
Provided that, the amount of tax or penalty, interest or sum forfeited or all
of them due from, and payable by, the dealer on the date of such
adjustment shall first be deducted from such refund before making the
adjustment.
51. (1) If a registered dealer has filed any returns or revised returns as
required by or under this Act, and such returns show any amount to be
refundable to the said dealer, then the said dealer may apply in the
prescribed form to the Commissioner for grant of a provisional refund
pending assessment.
(2) The Commissioner may require the said dealer to furnish such Bank
Guarantee for such period as may be prescribed . On receipt of such
guarantee, the Commissioner shall subject to rules, grant the dealer a
provisional refund of the amount claimed refundable as aforesaid within six
months of the end of the year containing the period to which the return or
revised return relates and the refund relating to all the periods contained
in one year may be granted by a single order:
Provided that the refund relating to any period covered by a return shall be
granted within three months of the end of the period to which the return
relates if the dealer is,-
(a) is an exporter within the meaning of sub-section(1) of section5 of the
Central Sales Tax Act, 1956
(b) is an unit specified in the Explanation to sub-section (3) of section 8
(c) holds a certificate of Entitlement under any Package Scheme of
Incentives,
Provided further that where the dealer has obtained a registration
certificate as provided under section 16 except on account of change of
place of business to a different local area, then the provisional refund in

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respect of the year containing the date of effect of the registration certificate
shall be granted within six months of the end of the year succeeding the
sa id yea r.
(d) a person or dealer specified to be eligible for refund in any
notification issued under sub-section(1) of section 41.
(3) If it is found that the provisional refund granted is in excess of the
refund found due , then the excess shall be recovered as if it a tax due from
the dealer and on such excess, interest shall be leviable at the prescribed
rate per month or part thereof from the date of grant of the provisional
refund.”
(4) If the dealer is required to furnish any information before the grant
of provisional refund and the required information is not furnished in the
prescribed time, then, for the purposes of this Act, the period in which the
refund is to be granted shall commence from the first date of the month
following the month in which the required information is furnished.
(5) Provisional refund shall not be granted under this section if before
the grant of refund, a notice for assessment covering the period to which
the refund relates is issued or proceedings under sub-section (3) or (4) of
section 64 in respect of the period to which the refund relates are initiated .
52. Where under this Act, refund of any tax becomes due to a registered
dealer, he shall, subject to rules, if any, be entitled to receive, in addition to
the refund, simple interest at the prescribed rate on the amount of refund
for the period commencing on the date next following the last date of the
period to which the refund relates and ending on the date of the order
sanctioning the refund
or for a period of twenty four months, whichever is
less. The interest shall be calculated on the amount of refund due to the
registered dealer in respect of the said period after deducting therefrom the
amount of penalty, sum forfeited and interest, if any, charged in respect of
the said period and also the amount of refund, if any, adjusted towards any
recovery under this Act or any earlier law or as the case may be, under the
Central Sales Tax Act, 1956, If, as a result of any order passed under this
Act, the amount of such refund is enhanced or reduced, as the case may
be, such interest shall be enhanced or reduced accordingly. If the interest
is reduced, then the amount granted in excess shall be recovered as if it is
an amount payable under this Act.
Provided that interest under this section shall not be granted towards any
provisional refund granted under section 51.
Exp lan ation.
—For the purposes of this section, where the refund of tax,
whether in full or in part, includes any amount of refund on any payment
of tax made after the date prescribed for making the last payment in

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respect of the said period, then the interest, in so far as it relates to the
refund arising from such payment, shall be calculated from the date of
such payment to the date of such order.
53. (1) Where an amount required to be refunded by the Commissioner
to any person, by virtue of an order issued under this Act, is not so
refunded to him within ninety days of the date of the order, the
Commissioner shall pay such person simple interest at the prescribed rate
on the said amount from the date immediately following the expiry of the
period of ninety days to the date of the refund:
Provided that, where the amount becomes refundable by virtue of an order
of the Tribunal or the High Court or the Supreme Court, the interest under
the provisions of this section shall be payable from the date immediately
following the expiry of period of ninety days from the date of receipt of the
order of the Tribunal, the High Court or the Supreme Court, by the officer
whose order forms the subject of the proceedings before the Tribunal, the
High Court or the Supreme Court, to the date of refund. The applicant
dealer or person may supply to the said officer a certified copy of such
order and if the copy is so furnished, interest shall become payable after
the expiry of period of ninety days from the date of such supply.
Exp lan ation.
—If the delay in granting the refund within the period of
ninety days aforesaid is attributable to the said person, whether wholly or
in part, the period of the delay attributable to him shall be excluded from
the period for which interest is payable.
(2) Where any question arises as to the period to be excluded for the
purposes of calculation of interest under the provisions of this section,
such question shall be determined by the Commissioner, whose decision
shall be final.
54. (1) Where an order giving rise to a refund is the subject-matter of an
appeal or further proceeding or where any other proceeding under this Act
is pending, and the authority competent to grant such refund is of the
opinion that the grant of the refund is likely to adversely affect the revenue,
such authority may, with the previous approval of the Commissioner,
withhold the refund till such time as the Commissioner may determine:
Provided that, the Commissioner shall accord his approval to the
withholding of the refund only if he is of the opinion that on the conclusion
of such appeal, further proceedings or other proceedings, if it becomes
necessary to recover the amount of refund in full or in part, then it may not
be otherwise practicable or possible so to do in any reasonable period of
time:
Provided further that, no order withholding the refund shall be made after

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the expiry of ninety days from the date of service of the order giving rise to
the said refund.
(2) Where a refund is withheld under sub-section (1),
the State Government
shall pay interest in accordance with the provisions of section 53 on the
amount of refund ultimately determined to be due to the person as a result
of the appeal or further proceeding, or any other proceeding for the period
from the date immediately following the expiry of ninety days from the date
of service of the order referred to in stib-section (1)
to the date of refund.
CHAPTER IX
PROCEEDINGS
55. (1) Any registered dealer (…)may apply in the prescribed form and
manner to the Tribunal for obtaining an advance ruling on the
interpretation of any provision of this Act, rules or notifications in respect
of a transaction proposed to be undertaken by him even though any
question relating to the said provision has not arisen in any proceeding.
(2) If the Tribunal finds that the application does not involve any
important and substantial question of law, then the Tribunal may, after
giving the applicant a reasonable opportunity of being heard, reject the
application.
(3) If the application is admitted, then for determination of the question,
the President shall cause a Bench to be constituted, consisting of three (…)
members of the Tribunal, a senior practitioner entitled to appear before the
Tribunal
to be nominated by the President and an Officer of the Sales Tax
Department not below the rank of Joint Commissioner, to be nominated by
the Commissioner. After hearing the applicant, the Bench shall pronounce
its advance ruling on the question specified in the application. If the
members of the Bench are divided, then the decision shall be the decision
of the majority. The pronouncement of the advance ruling shall, in so far as
it may be, made by the said Bench within four months of the receipt of the
application by the Tribunal.
(4) The advance ruling so pronounced shall be binding unless there is a
change of law on the basis of which the advance ruling has been
pronounced and accordingly no such question shall be entertained in any
proceeding by any authority appointed or constituted under this Act, save
as provided in section 27. (…)
(5) The provisions of this section shall come into effect form such date
as may be notified by the State Government in the Official Gazette.
(6) Advance Ruling under this section shall not be sought on any
question which can be posed under section 56.

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56. (1) If any question arises, otherwise than in a proceedings before a
Court or the Tribunal under section 55, or before the Commissioner has
commenced assessment of a dealer under section 23, whether, for the
purposes of this Act,—
(a)
any person, society, club or association or any firm or any branch or
department of any firm, is a dealer, or
(b)
any particular person or dealer is required to he registered, or
(c)
any particular thing done to any goods amounts to or results in the
manufacture of goods, within the meaning of that term, or
(d)
any transaction is a sale or purchase, or where it is a sale or
purchase, the sale price or the purchase price, as the case may be, thereof,
or
(e)
in the case of any person or dealer liable to pay tax, any tax is
payable by such person or dealer in respect of any particular sale or
purchase, or if tax is payable, the rate thereof, or
(f )
set-off can he claimed on any particular transaction of purchase and
if it can be claimed, what are the conditions and restrictions subject to
which such set-off can be claimed,
the Commissioner shall, subject to rules, make an order determining such
question.
Exp lan ation.-
For the purposes of this sub-section, the Commissioner shall
he d eemed to ha ve co mmenced assessment of the dealer under secti on 23
when the dealer is served with any notice by the Commissioner under that
secti on.
(2) The Commissioner may direct that the determination shall not affect the
liability under this Act of the applicants or, if the circumstances so
warrant, of any other person similarly situated, as respects any sale or
purchase effected prior to the determination.
(3) The Commissioner, for reasons to be recorded in writing, may, on his
own motion, review an order passed by him under sub-section (1)
or (2)
and
pass such order thereon as he thinks just and proper. The Commissioner
may direct that the order of review shall not affect the liability of the person
in whose case the review is made in respect of any sate or purchase
effected prior to the review and may likewise, if the circumstances so
warrant, direct accordingly in respect of any other person similarly
situated :
Provided that, no order shall be passed under this sub-section unless the
dealer or the person in whose case the order is proposed to be passed has
been given a reasonable opportunity of being heard:

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Provided further that, before initiating any action under this sub-section,
the Commissioner shall obtain prior permission of the State Government.
(6) If any such question arises from any order already passed under this
Act or any earlier law, no such question shall be entertained for
determination under this section; but such question may be raised in
appeal against such order.
(7) The Commissioner, in so far as he may, shall decide the applications
for determination in the chronological order in which they were flied.
57. (1) If the Commissioner is satisfied that an arrangement has been
entered into between two or more persons or dealers to defeat the
application or purposes of this Act or any provision ot this Act, then the
Commissioner may by order declare the arrangement to be null and void as
regards the application and purposes of this Act. He may, by the said
order, provide for increase or decrease in the amount of tax payable by any
person or dealer who is affected by the arrangement whether or not such
dealer or person is a party to the arrangement, in such manner as the
Commissioner considers appropriate so as to counter act any tax
advantage obtained by that dealer from or under the arrangement.
(2) For the purposes of this section,—
(i)
“arrangement” includes any contract, agreement, plan or understanding,
whether enforceable in law or not, and all steps and transactions by which
the arrangement is sought to be carried into effect;
(ii)
“tax advantage” includes,—
a. any reduction in the liability of any dealer to pay tax,
b. any increase in the entitlement of any dealer to claim set-off
or refund,
c. any reduction in the sale price or purchase price receivable or
payable by any dealer.
(3) Before passing any order under this section, the Commissioner shall
afford a reasonable opportunity of being heard to any such person or dealer
whose tax advantage is sought to be counter acted.
58. Where any order under this Act is being passed in respect of a dealer
for a part of a year for any reason whatsoever, then for the purposes of levy
of tax or exemption from the payment of whole or part of tax and for any
purposes incidental or ancillary thereto, any reference to any specified
amount or amounts in any section other than section 3 or in any rule or in
any notification issued under this Act in relation to a year shall, for the
purposes of such order, be construed as a reference to the said amount or
amounts as modified by multiplying each such amount or amounts by a

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number of which the numerator is the number of months in the period for
which the order is being passed and the denominator is twelve:
Provided that, where the period includes a part of a month, then if such
part is of fifteen days or more, it shall be increased to one complete month
and if such part is less than fifteen days, it shall be ignored
Provided further that, where such period is of less than fifteen days, it shall
be increased to one complete month.
59. (1) The Commissioner may, after giving the parties a reasonable
opportunity of being heard in the matter, by order in writing after recording
his reasons for so, doing so transfer any proceedings or class of
proceedings under any provision of this Act, from himself to any other
officer and he may likewise transfer any such proceedings, including a
proceeding pending with any officer or already transferred under this
section, from any officer to any other officer whether with or without
concurrent jurisdiction or to himself:
Provided that, nothing in this section shall be deemed to require any such
opportunity to be given where the transfer is from any officer to any other
officer and the offices of both the officers are situated in Brihan Mumbai
including Thane District or, as the case may be, in the same district as
constituted under section 4 of the Maharashtra Land Revenue Code, 1966.
(2) For the purposes of this section, any proceedings shall be deemed to be
pending only when any authority, having appropriate jurisdiction, issues
notice under the provisions of this Act, rules or notifications and the
proceedings shall be deemed to be pending only after issue of such notice.
(3) Where no proceedings are pending before any authority, then any
authority having appropriate jurisdiction over a person or dealer, may
initiate and complete any proceedings whatsoever.
Exp lan ation I.
— In this section, the word “proceedings” in relation to any
dealer means all proceedings under this Act in respect of any period, which
may be pending on the date of such order or which may have been
completed on or before such date, and also includes all proceedings under
this Act which may be commenced after the date of such order in respect of
the said period in relation to such dealer.
Exp lan ation II
.(………..)
60. (1) No person shall collect any sum by way of tax in respect of sales
of any goods which are not taxable goods.
(2) No person, who is not a registered dealer, shall collect in respect of any
sale of goods any sum by way of tax from any other person and no
registered dealer shall collect any amount by way of tax or in tax in lieu of

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tax in excess of the amount of tax payable by him on any sale of goods
under the provisions of this Act.
Exp lan ation.
—For the purposes of this sub-section, where, the total
amount of tax collected on the turnover of sales by a registered dealer
exceeds the amount of tax payable by the dealer on such turnover, and if
neither the said dealer nor the Commissioner can identify the individual
transactions on which such excess collection has taken place, then, for the
purposes of this sub-section, it shall be deemed that the excess collection
is attributable in proportionate amounts to all the transactions comprising
the turnover and accordingly it shall be deemed for the purposes of this
section that an excess amount as aforesaid has been collected on each and
every such transaction.
(3) Nothing in sub-section (2)
shall apply where a person is required to
co llect such a mo unt of tax separa tely in order to co mply with the
conditions and restrictions imposed on him under the provisions of any law
for the time being in force.
(4) Notwithstanding anything contained in sub-section (2),
a dealer who is
not a works contractor and who has been permitted by the Commissioner
to pay a lump-sum in lieu of tax under any provision of this Act, rules or
notification shall not collect any sum by way of tax or in lieu of tax on the
sale of goods if made during the period to which such lump-sum payment
applies.
61. (1) Every dealer liable to pay tax shall,—
(a) if his turnover of sales or, as the case may be, of purchases cases,
exceed or exceeds rupees forty lakh in any year, or
(b) a dealer or person who holds license in
(i) Form P.L.L under the Maharashtra Distillation of Spirit and
Manufacture of Potable Liquor Rules , 1966.
(ii) Form B-RL under the Maharashtra Manufacture of Beer and Wine
Rules, 1966 or,
(iii) Form E under the Special Permits and Licence Rules,1952.
(iv) Forms FL-I, FL-II, FL-III, FL-IV under the Bombay Foreign Liquor
Rules, 1953
(v) Forms Cl-I, CL-II, CL-III, CL/FL/TOD III under the Maharashtra
Country Liquor Rules, 1973.
get his accounts in respect of such year audited by an Accountant within
the prescribed period from the end of that year and furnish within that
period the report of such audit in the prescribed form duly signed and
verified by such accountant and setting forth such particulars and

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certificates as may be prescribed.
Exp lan ation.
—For the purposes of this section, “Accountant” means a
Chartered Accountant within the meaning of the Chartered Accountants
Act, 1949 ..
(2) If any dealer liable to get his accounts audited under sub-section (1)
fails to furnish a copy of such report within the time as aforesaid, the
Commissioner may, after giving the dealer a reasonable Opportunity of
being heard, impose on him, in addition to any tax payable, a sum by way
of penalty equal to one tenth per cent. of the total sales or as the case may
be, purchases or a sum of one lakh rupees, whichever is less.
Provided that the dealer fails to furnish a copy of such report within the
period prescribed under sub-section (1) but files it within one month of the
end of the said period and the dealer proves to the satisfaction of the
Commissio ner that the d ela y wa s o n acco unt o f factors beyond his co ntrol,
then no penalty under this sub-section shall be imposed on him.
62. (1)
No assessment (including review, appeal, rectification, penalty and
forfeiture), notice, summons or other proceedings furnished, made or
issued or taken or purported to have been furnished, made or issued or
taken in pursuance of any of the provisions of this Act shall he invalid or
shall be deemed to be invalid merely by reason of any mistake. detect or
omission in such, assessment, notice, summons or other proceedings, if
such assessment, notice, summons or other proceedings are, in substance
and effect in conformity with or according to the intent, purposes and
requirements of this Act.
(2) The service of any notice, order or communication shall not be called in
question, if the said notice, order or communication, as the case may be,
has already been acted upon by the dealer or person to whom it is issued
or which service has not been called in question at or in the earlier
proceedings commenced, continued or finalized pursuant to such notice,
order or communication.
(3) No order, including an order of assessment, review, appeal or
rectification or forfeiture passed under the provisions of this Act shall he
invalid merely on the ground that the action could also have been taken by
any other authority under any other provisions of this Act.
CHAPTER X
LIABILITY TO PRODUCE ACCOUNTS ETC.
63. (1) Every dealer liable to pay tax under this Act, and any other
dealer, who is required so to do by the Commissioner by notice in
the prescribed form served on him, shall keep a true account of the
va lue of the goo ds so ld o r p urcha sed b y hi m.

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(2) If the Commissioner considers that the accounts kept are not
sufficiently clear or intelligible to enable him to determine whether or
not a
dealer is liable to pay tax during any period, or are so kept as not to enable
a proper scrutiny of the returns or the Statements furnished, the
Commissioner may require such dealer by notice in writing to keep such
accounts, including records of sales or purchases in such form or manner
as in his opinion is necessary for the purpose of proper quantification of
tax and as he may, subject to anything that may be prescribed in that
behalf, in writing direct.
(3) The Commissioner may, subject to such conditions or restrictions as
may be prescribed in this behalf, by notice in writing direct any dealer, or
by notification in the Official Gazette,
direct any class of dealers, to
maintain accounts and records showing such particulars regarding their
purchases, sales or delivery of goods, and payments made or received
towards sa le o r purcha se o f go ods in such fo rm, and in such manner, as
may be specified by him.
(4) Every registered dealer shall ordinarily keep all his accounts,
registers and documents relating to his sto ck s of goo ds, o r to p urcha ses,
sales and delivery of goods made by him or payments made or received
towards sale or purchase of goods, at the place or places of business
specified in his certificate of registration or with the previous approval of
the Commissioner, at such other place as may be agreed to by the
Commissioner.
(5) Where,-
(a) any sale of goods is made and thereafter the goods are returned
within the prescribed time, then the goods returned shall be accounted for
in the return for the period in which appropriate entries are taken in the
books of account and
(b) any purchase of goods is made and thereafter the goods are returned
within the prescribed time, then the goods returned shall be accounted for
in the return for the period in which appropriate entries are taken in the
books of account.
(6) If the sale price or, as the case may be, the purchase price of any
goods is varied and credit notes, or as the case may be debit notes, are
requested to be issued to give effect to such variation, then,–
(a) the credit notes or, as the case may be, debit notes shall separately
specify the component of tax, if any, and the component of price , and
(b) such credit notes or, as the case may be, debit notes, shall be
accounted for in the return in the period in which appropriate entries for
debit notes and credit notes are taken in the books of account.

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64. (1) The Commissioner may, subject to such conditions as may be
prescribed, require any dealer to produce before him any accounts
or documents, or to furnish any information, relating to stocks of
goods of, or to sales, purchases and delivery of goods or to payments
mad e o r received to wards sa les or purcha ses o f go od s by the dealer,
or any other information relating to his business, as may he
necessary for the purposes of this Act.
(2)
All accounts, registers and documents relating to stock of goods of, or to
purchases, sales and delivery of goods, payments made or received towards
sale or purchase of goods by any dealer and all goods and cash kept in any
place of business of any dealer, shall at all reasonable times, be open to
inspection by the Commissioner, and the Commissioner may take or cause
to be taken such copies or extracts of the said accounts, registers or
documents and such inventory of the goods and cash found as appear to
him to be necessary for the purposes of this Act.
(3) If the Commissioner has reason to believe that any dealer has evaded or
is attempting to evade the payment of any tax due from him, he may. for
reasons to be recorded in writing, seize such accounts, registers or
documents of the dealer as may be necessary, and shall grant a receipt for
the same, and shall retain the same for so long as may he necessary in
connection with any proceedings under this Act or for any prosecution:
Provided that, on application of the dealer, the Commissioner shall provide
true copies of the said accounts, registers or documents.
(4) For the purposes of sub-section (2)
or sub-section (3), the Commissioner
may enter and search any place of business of any dealer or any other
place where the Commissioner has reason to believe that the dealer keeps
or is for the time being keeping any accounts, registers or documents of his
business or stocks of goods relating to his business.
(5) Where any books of accounts, other documents. money or goods arc
found in the possession or control of any person in the course of any
search, it shall be presumed unless the contrary is proved, that such books
of accounts, other documents, money or goods belong to such person.
Exp lan ation.
—For the purposes of this section, place of business includes
a place where the dealer is engaged in business, through an agent by
whatever name called or otherwise, the place of business of such agent. a
warehouse, godown or other place where the dealer or the agent stores his
goods and any place where the dealer or the agent keeps the hooks of
accounts.
65. (1) With a view to preventing evasion of tax and ensuring propel
compliance with the provisions of this Act, the Commissioner may,

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from time to time, collect information regarding sales and purchases
effected by any cl ass of d eal ers a nd cause a ny o f such transa ctio ns
of sale and purchase to he cross-checked.
(2)
For this purpose, the Commissioner may, from time to time. by
notification in the Official Gazette
require any class of dealers to furnish
such information, details and particulars as may be specified therein
regarding the transactions of sales and purchases effected by them during
the period mentioned in the said notification in such form, to such
authority and by such date as may he specified therein.
(3)………..
(4)………..
66. 1) With a view to identifying dealers who are liable to pay tax under
this Act, but have remained unregistered, the Commissioner shall, from
time to time, cause a survey of unregistered dealers to he taken.
(2) For the purposes of the survey, the Commissioner may, by general or
special notice, require any dealer or class of dealers to furnish the
names, add resses a nd such o ther pa rticul ars a s he may find
necessary relating to the persons and dealers who have purchased
any goods from or sold any goods, to such dealer or class of dealers
during any given period.
(3) For the purposes of survey, the Commissioner may call for details
and particulars regarding the services provided by public utilities
and financial institutions including Banking companies which he is
of the opinion shall be relevant and useful for the purposes of the
survey. He may, from time to time, cause the results of the survey to
be published in any manner as he thinks fit, so however as not to
disclose or indicate the identity of any particular unregistered dealer
identified during the survey.
(4) ……….
(5) ………..
(6) ……..
(7) …………..
67. If the Government considers it necessary with a view to preventing or
checking evasion of tax under the Act, it may, by notification in the Official
Gazette,
direct the establishment of check-post or the erection of a barrier
or both, at such place in the State or at the border of the State as may be
specified therein.
(2) The owner or person in charge or driver of a vehicle shall,——

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(a)
carry with him a tax invoice or a bill of sale or a delivery note or such
other documents as may be prescribed, in respect of the goods carried by
the vehicle;
(b)
produce the documents referred to in sub-clauses (a)
before any officer-
incharge of check-post or barrier or any other officer authorised under sub-
secti on (1)
of section 77 and obtain the seal of such officer affixed thereon
and give one copy of the bill of’ sale and delivery note or other document to
the said officer and carry and retain with him the other copy until the
termination of movement of goods;
(c)
on entering the State, report at the first situated check-post or barrier,
and while leaving the State, report at the last situated check-post or barrier
and give a declaration to the said officer containing such particulars as
may be prescribed in respect of the goods carried in the vehicle;
(d)
stop the vehicle and keep it stationary so long as may he required by
the said officer to examine the goods and inspect the records relating to the
goods carried in the vehicle and which are in the possession of such driver
or other person-in-charge of a vehicle, and who shall, if so required, give
his name and address and the name and address of the owner of the
vehicle.
(e)
where any vehicle is intercepted by an officer authorised under sub-
secti on (1)
of section 77, such officer may, if he deems it necessary, direct
the owner or driver or person-in-charge of the vehicle to take it to the
nearest check-post or barrier or police station and the owner, driver or
Person-in-charge of the vehicle shall comply with such direction.
68. (1) Where a vehicle is carrying taxable goods,–—
(a) from any place outside the State to any place outside the State and
passes through the State; or
(b)
imported into the State from any place outside the country and such
goods are being carried to any place outside the State.
the driver or any other person-in-charge of such vehicle shall furnish the
prescribed information and obtain a transit pass in the prescribed form, in
duplicate, from the officer in charge of the first check-post or barrier after
its entry into the State or after movement of such goods has commenced
from the State, as the case may be, or from the officer to whom powers
have been delegated under sub-section (I)
of sectio n 77 upo n interceptio n of
the goods vehicle after its entry into the State or after movement of such
goods has commenced, as the case may be,
(2) The driver or the person in charge of the vehicle shall deliver within the
stipulated time a copy of the transit pass obtained under sub-section (I)
to
the officer-in-charge at the last check-post or barrier before its exit from

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the State.
(3)
(a) If for any reason, the goods carried in a vehicle arc not moved out of
the State within the time stipulated in the transit pass, the owner, driver or
person-i n-charge of the goo ds vehicle shall furnish to the of ficer empo wered
in this behalf the reasons for such delay and other particulars, if any,
thereof and such officer shall after due enquiry, where necessary extend
the time of exit by suitably amending the transit pass.
(b) Where the goods carried by a vehicle, after their entry into the State or
alter commencement of movement, as the case may ~ arc claimed to be
transported outside the State by any other vehicle or by any other means,
the onus of proving that the goods actually moved out of the State ball he
on the driver, person-in-charge or owner of the vehicle who originally
brought the goods into the State.
(4) If the driver or any other person-in-charge of the vehicle does not
comply with the requirements of sub-section (2),
then it shall he presumed,
unless proved otherwise, that the said goods have been sold within the
State h~ the owner of the vehicle and the owner shall he assessed to tax as
if he is a dealer liable to pay tax by an officer empowered in this behalf by
the Commissioner and all the provisions of this Act shall apply accordingly.
(5) If the owner of the vehicle having obtained the transit pass as provided
under sub-section (1)
fails to deliver the same as provided in sub-section
(2),
he shall be liable to pay by way of penalty a sum equal to twice the
amount of tax leviable on the goods transported.
(6) In a case where a vehicle owned by a person is hired for transport of
goods by some other person, the hirer of the vehicle shall, for the purposes
of this section, be also deemed to be the owner of the vehicle.
69. (1) The State Government may, by notification in Official
Gazette,
provide that the provisions contained in the Information Technology
Act, 2000, and the rules made and directions given under that Act,
including the provisions relating to digital signatures, electronic
governance, attributation, acknowledgement and dispatch of
electronic records, secure electronic records and secure digital
signatures and digital signature certificates as are specified in the
said notification, shall, in so far as they may, as far as feasible,
apply to the procedures under this Act.
(2) Where any notice or communication is prepared on any automated data
processing system and is properly served on any dealer or person, then the
said notice or communication shall not be required to be personally signed
by any officer or person and the said notice or communication shall not be
deemed to be invalid only on the ground that it is not personally signed by

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any such officer.
CHAPTER XI
STATISTICS
70. (1) The Commissioner may, if he considers that or the purposes of
the better administration of this Act, it is necessary so to do, he may by
notification in the Official Gazette,
direct that statistics he collected relating
to any matter dealt with, by or in connection with to this Act.
(2) Upon such direction being given the Commissioner, or any person or
persons, authorised by the Commissioner in this behalf. may, by
notification in the Official Gazette;
and if found necessary by notice in a ny
newspapers or in such other manner as in the opinion of the Commissioner
or the said person, is best suited to bring the notice to the attention of
dealers and other person or persons, call upon all dealers or any class of
dealers or persons to furnish such information or returns as may be
specified therein relating to any matter in respect of which statistics is to
be collected. The form in which. the persons to whom or, the authorities to
which, such information or returns should be furnished, the particulars
which they should contain, and the intervals in which such information or
returns should be furnished, shall be such as may be prescribed.
70. (1) All particulars contained in any statement made, return
furnished or acco unts or do cuments pro duced i n acco rdance wi th this Act,
or in any record of evidence given in the course of any proceedings under
this Act (other than proceeding before a Criminal Court), or in any record of
any assessment proceeding, or any proceeding relating to the recovery of a
demand, prepared for the purposes of this Act shall, save as provided in
sub -secti on (3),
be treated as confidential; and notwithstanding anything
contained in the Indian Evidence Act, 1872, no Court shall save as
aforesaid, be entitled to require any servant of the Government to produce
before it any such statement, return, account, document or record or any
part thereof, or to give evidence before it
in respect thereof.
(2) Save as provided in sub-section (3). if any servant of the Government
discloses any of the particulars referred to in sub-section (1),
he shall. on
conviction, be punished with imprisonment which may extend to six
months or with fine or with both:
Provided that, no prosecution shall be instituted under this section except
with the previous sanction of the State Government.
(3) Nothing contained in this section shall apply to the disclosure of,—
(a)
any such particulars in respect of any such statement, return, accounts,
documents, evidence, affidavit or deposition, for the purpose of any
prosecution under the Indian Penal Code or the Prevention of Corruption

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Act, 1988, or this Act, or any other law for the time being in force; or
(b)
any such particulars to the State Government or to any person acting in
the execution, or for the purposes, of this Act; or
(c) any such particulars when such disclosure is occasioned by the lawful
employment under this Act of any process for the service of any notice or
the recovery of any demand; or
(d)
any such particulars to a Civil Court or a Tribunal constituted under
any central law in any suit, to which the Government is a party, which
relates to any matter arising out of any proceeding under this Act; or
(e)
any such particulars to any officer appointed to audit receipts or
refunds of the tax imposed by this Act; or
(f)
any such particulars where such particulars are relevant for the
purposes of any inquiry into the conduct of an official of the Sales Tax
Department. to any person or persons appointed as an inquiry officer
under any relevant law ; or
(g) such facts to an officer of the Central Government or any State
Government as may be necessary for the purpose of enabling that
Government to levy or realise any tax or duty imposed by it: or
(h)
any such particulars, when such disclosure is occasioned by the lawful
exercise by a public servant of his powers under the Bombay Stamp Act,
l95 or the Indian Stamp Act, 1899, to impound an sufficiently stamped
document; or
(i) any such particulars where such particulars are relevant to any inquiry
into a charge of misconduct in connection with sales tax proceedings
against a legal practitioner, sales tax practitioner, cost accountant or
chartered accountant, to the authority, if any, empowered to take
disciplinary action against the members practising the profession of a legal
practitioner, sales tax practitioner, cost accountant or chartered
acco untant, as the ca se ma y b e; o r
(j)
any such particulars to the Director, Bureau of Economics and Statistics
or any officer serving under him or to any person or persons authorised
under sub-section (2)
of section 70 as may he necessary for enabling the
Director or such person or persons to carry on their official duties; or
(k)
any such particulars to any agency appointed for the purposes of data
entry on any automated system or for the purpose of operating, upgrading
or maintaining any automated system where such agency is contractually
bound not to use or disclose such particulars except for the aforesaid
purposes ; or
(l)
any such particulars to an officer of the Central Government or any

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State Government as may he necessary for the administration of, or for the
purposes of inquiry or prosecution under, any law in force in any part of
India.
71. (1) No information of any individual return or part thereof, with
respect to any matter given for the purposes of section 70 shall, without the
previous consent in writing of the dealer or person or his authorised agent ,
be published in such manner as to enable any particulars to be identified
as referring to a particular dealer and no such information shall be used for
the purpose of any proceedings under the provisions of this Act.
(2) Except for the purposes of prosecution under this Act, or any section,
other Act, no person who is not engaged in the collection of statistics under
this Act or of compilation or computerization thereof for the purposes of
this Act, shall be permitted to see or have access to any information or any
individual return referred to in that section.
(3) If any person engaged in connection with the collection of statistics
under section 70 or compilation or computerization thereof willfully
discloses any information or the contents of any return given or made
under that section, otherwise than in execution of his duties under that
section or for the purposes of the prosecution of an offence under this Act
or under any other Act, lie shall, on conviction, be punished with
imprisonment for a term which may extend to six months or with fine
which may extend to one thousand rupees, or with both.
Provided that, no prosecution shall be instituted under this sub-section
except with the previous sanction of the State Government.
(4) Nothing in this section shall apply to the publication of any information
relating to a class of dealers or class of transactions, if in the opinion of the
Commissioner, it is desirable in the public interest, to publish such
information.
72. (1) Notwithstanding anything contained in sections 71 and 72, if the
State Government is of the opinion that it is necessary or expedient in the
public interest to publish or disclose the names of any dealers or other
persons and any other particulars relating to any proceedings under this
Act in respect of such dealers and persons, it may publish or disclose or
cause to be published or disclosed such names and particulars in such
manner as it
thinks fit.
(2) No publication or disclosure under this section shall be made in relation
to any tax levied or penalty imposed or interest levied or any conviction for
any offence connected with any proceeding under this Act, until the time
for presenting an appeal to the appropriate appellate authority has expired
without an appeal having been presented or the appeal, if presented has

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been disposed of.
Exp lan ation.
—In the case of a firm, company or other association of
persons, the names of the partners of the firm, the directors, managing
agents, secretaries, treasurers or managers of the company or the members
of the association, as the case may be, may also be published or disclosed,
if, in the opinion of the State Government, the circumstances of the case
justify it.
CHAPTER XII
OFFENCES AND PENALTIES
74. (1) Whoever knowingly,–
(a) Not being a registered dealer under this Act, represents that he is or
was a registered dealer when he sells or buys goods or,
(b) furnishes a false return, or
(c) produces before the Commissioner or the Tribunal, a false bill, cash
memorandum, voucher, declaration, certificate or other document
referred to in sub-section(4) of section 29, or
(d) keeps false account of the value of goods bought or sold by him in
contravention of sub-section (1) of section 63 ,or
(e) produces false accounts, registers or documents or knowingly
furnishes false information, or
(f) issues to any person any certificate or declaration , under the Act,
Rules or noti fica tions, o r a bi ll, ca sh memorand um, voucher,
delivery challan, lorry receipt or other document which he knows or
has reason to believe to be false, or
(g) falsely represents that he is authorised under section 82 to appear
before any authority in any proceeding,
shall on conviction be punished with rigorous imprisonment for a term
which shall not be less than one month but which may extend to one year
and with fine.
(2) Whoever will fully attempts in any manner whatsoever to evade any tax
leviable under this Act or payment of any tax, penalty or interest under
this Act shall on conviction be punished with rigorous imprisonment
which shall not be less than three months but which may extend to one
year and with fine.
(3) Whoever ,–
(a) fails without sufficient cause, to comply with the
requirements of sub -secti on(1 ) of sectio n 14 ,or

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(b) is engaged in business as a dealer without being registered
under section 16, or
(c) fails without sufficient cause, to obtain in lieu of the existing
certificate of registration of fresh certificate of registration
when required to do so as provided in sub-section(1) of
secti on 1 7,or
(d) fails without sufficient cause, to furnish any information
required by section 18,or
(e) fails without sufficient cause to furnish a declaration or, as
the case may be, a revised declaration as provided in sub-
secti on(1 ) o f sectio n 1 9 or fail s without sufficient cause to
communicate the permanent account number obtained under
the Income Tax Act, 1961 or, as the case may be, fails to
state whether he has applied for the same and fails without
sufficient cause to provide the details of the application as
provided in sub-section (2) of section 19,or
(f) fails, without sufficient cause, to furnish any return or, as the
case may be, a self consistent and fully filled in return as
required by section 20 by the date and in the manner
prescribed,or
(g) fails without sufficient cause to pay the tax deductible at
source or to deduct at source such tax, or fails without
sufficient cause to obtain the sales tax deduction account
number or fails without sufficient cause to file a return as
required under the provisions of section 31,or
(h) fails without sufficient cause to comply with the requirements
of the no tice issued under sub -secti on(1 ) of sectio n 33 ,or
(i) fails without sufficient cause to comply with the
requirements of any order issued under sub-section (1) of
secti on 3 5,or
(j) fails without sufficient cause to comply with the requirements
of any order issued under sub-section (3) of section 38,or
(k) fails without sufficient cause to comply with the requirements
of section 42,or
(l) without reasonable cause, contravenes any of the provisions
of section 60, or
(m) fails, without sufficient cause, to get his accounts audited or
furnish the report of the audit, as required under section
61,or
(n) fails, without sufficient cause to comply with requirements of
secti on 6 3. or
(o) fails, without sufficient cause, to comply with the
requirements of section 64,or

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(p) fails without sufficient cause to comply with requirements of
secti on 6 5
(q) fails, without sufficient cause, to comply with the
requirements of section 66,or
(r) fails, without sufficient cause, to furnish any information or
return required by section 70 by the date and in the manner
prescribed or willfully furnishes any information or return
which he knows to be incorrect or false, or
(s) fails, without sufficient cause, to issue a tax invoice, a bill or
ca sh memora ndum as req uired under secti on 8 6,or
(t) contravenes, without reasonable cause, any of the conditions,
subject to which the Certificate of Entitlement is granted, or
(u) fails, without sufficient cause, to comply with any notice in
respect of any proceedings,
shall, on conviction , be punished with simple imprisonment for a term
which may extend to six months and with fine.
(4) Whoever aids or abets or induces any person in commission of any
act specified in sub-sections (1) and (2) shall, on conviction, be punished
with simple imprisonment which shall not be less than one month but
which may extend to one year and with fine and whoever abets or induces
any person in commission of any act specified in sub-section (3) shall on
conviction be punished with simple imprisonment which may extend to one
month and with fine .
(5) Whoever commits any of the acts specified in sub-sections (1) to (4)
and the offence is a continuing one under any of the provisions of these
sub-sections, shall, on conviction, be punished with daily fine not less than
rupees one hundred during the period of the continuance of the offence, in
addition to the punishments provided under this section.
(6) Where a dealer is accused of an offence specified in the sub-sections (1)
or(2) or (3), the person deemed to be the manager of the business of such
dealer under section 19 shall also be deemed to be guilty of such offence,
unless he proves that the offence was committed without his knowledge or
that he exercised all due diligence to prevent the commission thereof.
(7) In any prosecution for an offence under this section, which requires
a culpable mental state on the part of the accused, the court shall presume
the existence of such mental state, but it shall be a defence for the accused
to prove the fact that he had no such mental state with respect to the act
charged as an offence in that prosecution.
Explanation— Culpable mental State includes intention, motive or
knowledge of a fact or belief in or reason to believe, a fact and a fact is said
to be proved only when the court believes it to exist beyond reasonable

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doubt and not merely when its existence is established by a preponderance
of probability.
75. (1) Where an offence under this Act or the rules made thereunder
has been committed by a business entity. every person who at the
time the offence was committed, was in charge of, and was
responsible to, the business entity for the conduct of the business of
the business entity as well as the business entity shall be deemed to
be guilty of the offence and shall be liable to be proceeded against
and punished accordingly:
Provided that, nothing contained in this sub-section shall render any such
person liable to any punishment provided in this Act if he proves that the
offence was committed without his knowledge or that he exercised all due
diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1),
where an offence
under this Act or rules made thereunder has been committed by a business
entity and it is proved that the offence has been committed with the
consent or connivance of, or is attributable to any neglect on the part of
any director, manager, secretary or other officer of the business entity.
such directo r, mana ger, secretary o r o ther off icer sha ll also be deemed to
be guilty of that offence and shall be liable to be proceeded against and
punished accordingly.
Exp lan ation.
—For the purpose of this section,—
(a) “business entity” means a body corporate, and includes a firm a
firm, a Hindu Undivided Family or other association of individuals; and
(b) “director”, in relation to a firm, means a partner in the firm and in
relation to a Hindu Undivided Family , means a Karta .
76. (1) Notwithstanding anything contained in the Code of Criminal
Procedure, 1973, all offences punishable under this Act or rules
made thereunder shall be cognizable and bailable.
(2) Notwithstanding anything contained in the Code of Criminal Procedure.
1973, a Metropolitan Magistrate or Judicial Magistrate, First Class may,
impose on any person found guilty of an offence under section 71, 72 or
74, a punishment as provided in relevant sections in excess of his powers
under section 29 of the said Code.
(3) If any prosecution for an offence under this Act has been instituted in
respect of the same facts on which a penalty has been imposed by the
Commissioner under section 29 or 61, then if the offence is compounded
under secti on 7 8 or, in any other ca se, o n co nvicti on a s a result o f the final
proceedings, the Commissioner shall refund to the dealer the amount of
penalty paid by him.

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77. (1) Subject to such conditions, if any, as may he prescribed, the
Commissioner may authorise, either generally or in respect of a
particular case or class of cases any officer or person subordinate to
him to investigate all or any of the offences punishable under this
Act.
(2) Every officer so authorised shall, in the conduct of such
investigation, exercise the powers conferred by the Code of Criminal
Procedure, 1973, upon an officer in charge of a police station for the
investigation of a cognizable offence.
78. (1) The Commissioner may, either before or after the institution of
proceedings for any offence punishable under section 74 or under
any rules made under this Act, after affording the person concerned
an opportunity of being heard, accept from any person charged
under sub-section (3) of section 74 or under any rule, a sum not
ex ceed ing two thousa nd rup ees and i n a ny other ca se a sum no t
exceeding double the amount of tax which would have been payable
in the sale, purchase or turnover to which the offence relates, by way
of composition of the offence.
(2) On payment of such sum as may be determined by the Commissioner
under sub-section (1),
no further proceedings shall be taken against the
accused person in respect of the same offence and any proceedings, if
already taken, shall stand abated.
CHAPTER XIII
Miscellaneous
79. Notwithstanding anything contained in the Bombay Court-fees Act,
I959,-
(a) any application not otherwise provided for when presented to a
prescribed authority for a prescribed purpose or when presented to the
Tribunal shall subject to the provisions of clause (h), he charged with such
fee not exceeding one hundred rupees, as may be prescribed and
(b) An appeal preferred under section 26 shall bear a court fee stamp of
such value, not exceeding one thousand rupees, as may be prescribed, if
the amount in dispute exceeds rupees one lakh, and any other appeal shall
be charged with such fee not exceeding one hundred rupees, as may be
prescribed.
80. In computing the period of limitation laid down under sections 25,
26 and 27, the provisions of sections 4 and 12 of the Limitation Act,
1963 shall, so far as may he, apply.
81. (1)
An appellate authority may admit any appeal under section 26

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after the period of limitation laid down in the said section, if the
appellant satisfies the appellate authority that he had sufficient
cause for not preferring the appeal within such period.
Exp lan ation.— For
the purposes of this section, when an appeal is preferred
under section 26 after the period of limitation laid down in that section, the
ground that the appellant came to know of any judgment, decision or order
of any Court, Tribunal or other authority after the expiry of the period of
limitation aforesaid (whether such judgment, decision or order was
delivered or made before or after the expiry of that period). shall not be
deemed to constitute a sufficient cause for the purposes of this section.
(2) In computing the period of limitation, in respect of any proceedings
under this Act, the time during which the proceedings remained stayed
under the order of a competent Court or Tribunal
shall be excluded.
82. (1) Any person, who is entitled or required to attend before any
before any authority including the Tribunal in connection with any
proceeding under this Act, otherwise than when required to attend
personally for examination on oath or affirmation, may attend,—
(a) by a relative or a person regularly employed by him, or
(b) by a legal practitioner, Chartered Accountant or Cost Accountant
who is not disqualified by or under sub-section (2),
or
(c) by a sales tax practitioner who possesses the prescribed
qualifications and is entered in the list which the Commissioner shall
maintain in that behalf, and who is not disqualified by or under sub-
secti on (2),
or
(d) any person who, immediately before the commencement of this Act
was qualified to appear as a sales tax practitioner under any earlier law
and who is not disqualified by or under sub-section (2),
only if such relative,
person employed, legal practitioner, Chartered Accountant, Cost
Accountant or sales tax practitioner is authorised by such person in the
prescribed form, and such authorisation may include the authority to act
on behalf of such person in such proceedings.
Exp lan ation.
—“A person regularly employed” means a person whose salary
is regularly and periodically debited and recorded in the books of account
of the dealer.
(2) The Commissioner may, by order in writing and for reasons to be
recorded therein, disqualify for such period as is stated in the order from
attending before any such authority, any legal practitioner, Chartered
Accountant, Cost Accountant or sales tax practitioner,—
(i)
who has been removed or dismissed from Government service, or

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(ii)
who being a legal practitioner, a Chartered Accountant or a Cost
Accountant is found guilty of misconduct in connection with any
proceedings under this Act by an authority, empowered to take disciplinary
action against the member of the profession to which he belongs, or
(iii)
who, being a sales tax practitioner, is found guilty of such misconduct
by the Commissioner.
(3) No order of disqualification shall be made in respect of any particular
person unless he is given a reasonable opportunity of being heard.
(4) Any person against whom any order of disqualification is made under
this section may, within one month of the date of communication of such
order, appeal to the Tribunal to have the order cancelled or modified.
(5) The order of the Commissioner shall not take effect until one month of
the service thereof or when an appeal is preferred until the appeal is
decided.
(6) The Commissioner may, at any time su o motu
or on an application made
to him in this behalf, revoke or modify any order made against any person
under sub-section (2)
and thereupon such person shall cease to be
disqualified subject to such conditions or restrictions that may be
co ntained in such order.
83. (1) The power to make rules under this Act shall be exercisable by
the State Government, by notification in the Qfflcial Gazette.
(2) Without prejudice to any power to make rules contained elsewhere in
this Act, the State Government may make rules generally to carry out the
purposes of this Act :
and such rules may include rules for levy of fees for
any of the purposes of this Act.
(3) Without prejudice to any provision made in this behalf, any rule made
under this Act may be made so as to be retrospective to any date not earlier
than the appointed day.
(4) Rules made under this section shall be subject to the condition of
previous publication :
Provided that, the State Government may, if it is satisfied that
circumstances ex ist which render it
necessary for it to take immediate
action, it may dispense with the requirement of previous publication of any
rule or rules to be made under this section.
(5) In the rules, it may be provided that a breach thereof shall he
punishable with fine not exceeding two thousand rupees and when the
offence is a continuing one, with a daily fine not exceeding one hundred
rupees during the continuance of the offence.
(6) Every rule made under this section shall be laid, as soon as may be

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after it is made, before each House of the State Legislature while it is in
session for a total period of thirty days which may be comprised in one
session or in two successive sessions, and if, before the expiry of the
session in which it is so laid or the session immediately following, both
Houses agree in making any modification in the rule or both Houses agree
that the rule should not be made and notify such decision in the Official
Gazette,
the rule shall, from the date of publication of such notification,
have effect only in such modified form or be of no effect, as the case may
be; so, however, that, any such modification or annulment shall he without
prejudice to the validity of anything previously done or omitted to he done
under that rule.
84. The Commissioner may, by notification in the Official Gazette,
require any class of registered dealers as may be specified in the
notification, to declare such details regarding capital assets held by them
on the day immediately preceding the appointed day and the stock of goods
held by them on the day immediately preceding the appointed day in
such manner and with such particulars and to such authority, as he may
notify in this behalf.
85. (1) Save as is provided by section 27, no order passed or proceedings
taken under this Act, the rules or notification by any authority appointed
or constituted under this Act, shall be called in question in any Court, and
save as is provided by section 26, (………)
no appeal shall lie against any
such o rder.
(2) No appeal shall lie against,—
(a) any notice issued under this Act, rules or notifications, or
(b) any summons issued under sub-section (1)
o f secti on 14 , or
a defect
notice issued under section 20
(b-1) an assessment order passed under sub-section (1) of section 23 or
(c) any order issued on an application for instalment, or
(d) any order or notice issued under sub-section (1) or (2) of section 34

(e) an order pertaining to the seizure or retention of books of
accounts,
registers a nd o ther d ocuments, or
(f) (…)
(g) any order or assignment under section 59, or
(h)…….
(i) an interim order issued in
the course of any proceeding not being an
order issued under sub-section (6) of section 26.
86.
(1) If a registered dealer sells any goods, he may issue to the

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purchaser a tax invoice containing such particulars as are specified in sub-
section (2) and retain a copy thereof for three years from the end of the year
in which the sale took place.
(2) The tax invoice issued under sub-section (1)
shall contain the following
particulars on the original as well as on all the copies thereof,—
(a) the words “tax invoice” in bold letters at the top or at any prominent
place,
(b) the name, address and registration certificate number of the selling
dealer as well as the name and the address of the purchasing dealer,
(c) an individual serialised number and the date on which the tax
invoice is issued,
(d) description of the goods, the quantity or as the case may be, number
and price of the goods sold and the amount of tax charged thereon
indicated separately, and
(e) signed by the selling dealer, or his servant, manager or agent duly
authorised by him.
(3) When a registered dealer sells any goods, he may at his option issue to
the purchaser a bill or cash memorandum serially numbered , signed and
dated by him or his servant, agent or manager and stating therein such
other particulars as may be prescribed. He shall keep a counterfoil or
duplicate of such bill or cash memorandum duly signed and dated and
preserve it for a period of three years from the end of the year in which the
sale took place. Where the said registered dealer is issuing a bill or cash
memorandum, he shall not collect tax aeparately on such sale.
(4) Nothing contained in sub-section (1) or (2) shall apply to a dealer who is
paying tax by way of composition under sub-section (1) or (2) of section 42.
(5) The State Government may, by rules provide for such electronic
system a s ma y be used, if necessary. in co njunctio n with such automa tic
data processing machines, as may be prescribed, for preservation of the
details of the bill or cash memorandum for the purposes of sub-section (3)
in such form and manner as may be approved by the Commissioner arid
any dealer may apply to the Commissioner to permit him, subject to such
conditions, if any, as may be prescribed, to maintain the record of the bills
or cash memoranda on such system. On such permission being granted,
the dealer shall stand exempted for the purposes of said sub-section (3)
regarding keeping counterfoils or duplicates of the said bills or cash
memoranda and of signing the bill or cash memorandum.
(6) A registered dealer, shall in respect of every sale made by him issue
either a tax invoice or a bill or cash memorandum as provided under sub-
section (1) or (3).

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87. The Commissioner may, from time to time, by notification in the
Official Gazette, direct that on and after such dates as may be specified
therein, the form of any of the certificates or declarations under this Act or
any rule or any notification, shall be obtained from the prescribed authority
in the prescribed manner subject to the conditions and restrictions that
may be specified by him in that behalf.
CHAPTER XIV
PACKAGE SCHEME OF INCENTIVES
88. In this chapter, unless the context requires otherwise,—
(a) “Certificate of Entitlement” means a certificate issued by the
Commissioner in respect of sales tax incentives under the relevant Package
Scheme of Incentives;
(b) “District Industries Centre” in relation to any eligible unit means the
District Industries Centre established by the State Government in a
district, in which the concerned Eligible Unit is situated;
(c) “Eligibility Certificate” means a certificate granted by the SICOM SICOM
or the Directorate of Industries or the relevant Regional Development
Corporation or the District Industries Centre concerned or the Maharashtra
Tourism Development Corporation or the Maharashtra Energy
Development Authority in respect of sales tax incentives under the relevant
Package Scheme of Incentives designed by the State Government;
(d) “Eligible Unit” means the Industrial Unit in respect of which an
Eligibility Certificate is issued;
(e) “Package Scheme of Incentives” means the 1979, 1983, 1988 or 1993
Package Schemes of Incentives introduced by the Industries, Energy and
Labour Department, the Package Scheme of Incentives for Tourism 1993,
Electronic Scheme 1985 and the New Package Scheme of Incentives for
projects 1998for projects 1998, introduced by the Home and Tourism
Department and the Power Generation Promotion Policy 1998 introduced
by the Industries, Energy and Labour Department, all as amended, from
time to time;
(f) “the Relevant Regional Development Corporation” means,—
(i) in relation to the Vidarbha area of the State, the Development
Corporation of Vidarbha Limited, a Government Company registered under
the Companies Act, 1956;
(ii) in relation to the Konkan revenue division excluding the City of
Mumbai and the Mumbai Suburban District, the Development Corporation
of Konkan Limited, a Government Company registered under the
Companies Act, 1956;

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(iii) in relation to the Marathwada area of the State, the Marathwada
Development Corporation Limited, a Government Company registered
under the Companies Act, 1956;
(iv) in relation to the rest of Maharashtra, the Western Maharashtra
Development Corporation Limited, a Government Company registered
under the Companies Act. 1956;
(g) “SICOM” means the State Industrial and Investment Corporation of
Maharashtra Limited, a Government Company registered under the
Companies Act, 1956.
(h) “Maharashtra Tourism Development Corporation” means a
Government Company registered under the Companies Act, 1956;
(i) “Maharashtra Energy Development Authority” means a society registered
by the name “the Maharashtra Energy Development Authority” under the
Societies Registration Act, 1 860, under the Societies Registration Act,
1860.
89. (1) Where an Eligibility Certificate has been recommended to an
Eligible Unit by the implementing agency under any of the Package Scheme
of Incentives declared by the State Government, such Eligible Unit may
apply for grant of Certificate of Entitlement to the Commissioner.
(2) Subject to the provisions of this Act, and any rules that may be made in
this behalf, the Commissioner shall, if the Eligible Unit satisfies such
further requirements as may be prescribed, issue, subject to such
conditions, as may be prescribed to the unit a Certificate of Entitlement .
90. Notwithstanding anything contained in this Act, the Certificate of
Entitlement issued in favour of an Eligible Unit by the Commissioner
whether before or after the appointed day, in respect of any Package
Scheme of Incentives,-—
(a)
shall be deemed to have been automatically cancelled on the date on
which,-—.
(i) the incentives including the cumulative quantum of benefits availed
whether before or after the appointed day exceed the monetary ceiling fixed
for the Eligible Unit; or
(ii) the period for which a Certificate of Entitlement was granted to an
Eligible Unit, expires; or
(iii) the Certificate of Registration granted to an Eligible Unit has been
cancelled; or
(b) shall be cancelled by the Commissioner, after giving the Eligible Unit an
opportunity of being heard, if it is noticed that the grant of Certificate of
Entitlement is inconsistent with any of the provisions of this Act, or, as the

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ca se ma y be, the Bo mb ay Sales T ax Act. 1 959 rules or noti fica tions o r a ny
provision of the relevant Package Scheme of Incentives or , if the unit
contravenes any of the provisions of the relevant Scheme .
91. (1) Where any Certificate of Entitlement has been granted to any unit
under any Package Schemes of Incentives and such unit is entitled to
receive benefits for any period which is to end after the appointed day then,
notwithstanding anything contained in the said scheme, the benefits shall
he availed of only in accordance with this Act, rules and the notifications
issued thereunder.
(2). The Commissioner may, notwithstanding anything contained in
section 32, in respect of a dealer to whom an Entitlement Certificate for
availing of the benefits by way of deferment of Government dues has been
granted, extended the date of payment or grant a moratorium for payment
of the dues or provide for the payment of dues thereafter in installments,
subject to such conditions as may he prescribed.
Provided further that no interest under section 30 shall be payable by a
dealer to whom an Entitlement Certificate has been granted and for whom
the due date of payment has been extended, moratorium has been granted
or installments have been granted and payments have been made
accordingly.”
(3) In order to determine whether the cumulative quantum of benefits
received by any dealer to whom an Entitlement Certificate for availing of
benefits by way of exemption from payment of Government dues has been
granted, has exceeded the relevant monetary ceiling under any Package
Scheme of Incentives, the Commissioner shall calculate the cumulative
quantum of benefits in the manner prescribed and for this purpose he shall
take into account the benefits received, if any, by the said dealer prior to
the appointed day.
(4) If it is found that the cumulative quantum of benefits calculated in
respect of any dealer has exceeded the relevant monetary ceiling, where
such ceiling is provided in the relevant Package Scheme of Incentives, then
the Commissioner shall require the dealer by order in writing to pay the
tax, interest or penalty in respect of each relevant period and shall for the
purposes of recovery of such Government dues, serve on the dealer a notice
as provided under section 32:
Provided that, no order under this section shall be passed without giving
the dealer reasonable opportunity of being heard.
(5) Notwithstanding anything contained in this Act, the rules made
hereunder or any Package Scheme of Incentives,—
(i) no dealer to whom on Entitlement Certificate has been issued,

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whether in order to avail the benefits by way of deferment or payment or
exemption from payment of Government dues, shall be entitled to claim
set-off of sales tax in respect of purchases of raw materials effected by the
said dealer and for the purposes of this section, the expression raw
materials’ shall have the meaning assigned to it in the rules;
(ii) every dealer to whom the Entitlement Certificate has been issued,
whether in order to avail the benefits by way of deferment of payment or
exemption from payment of Government dues shall be entitled to claim in
accordance with the rules, refund of sales tax in respect of purchases of
raw materials;
(iii) (………..)
92. (1) Notwithstanding anything to the contrary contained in any of the
Package Scheme of Incentives, no Eligible Unit to whom the Eligibility
Certificate has been granted shall be eligible to draw the benefits in any
year after the appointed day, in respect of the production in excess of the
annual production capacity of that unit as may be prescribed by the State
Government, having regard to the licensing provisions, as they stood from
time to time, under the Industries (Development and Regulation) Act. 1951,
as applicable during the relevant period, as that Act stood during the
relevant time.
(2) The benefits availed of by any Eligible Unit in contravention of sub-
section (1) shall be and shall be deemed to have been withdrawn and such
Unit shall be liable to pay the tax including penalty and interest in respect
of sales or purchases, in so far as they relate to such excess production
referred to in sub-section (1).
(3) A unit holding a Certificate of Entitlement shall not be entitled to claim
or receive any incentives towards,-
a) a sale made by way of transfer of property in goods (whether as goods
or in some other form) involved in the execution of a works contract
b) a sale made by transfer of right to use a ny goods for any purpose
(whether or not for a specified period)for cash, deferred payment or other
valuable consideration.
93. (1) Notwithstanding anything to the contrary contained in any
Package Scheme of Incentives, any Eligible Unit, to whom the Eligibility
Certificate has been granted, shall be eligible to draw the benefits in any
year after the appointed day, only on that part of its turnover of sales or
purchases as may be arrived at by applying the ratio as may be prescribed
by the State Government to the total turnover of sales and purchases of the
said unit in that year and different ratios may he prescribed for different
classes of units and different schemes.

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(2) The benefits, if any, availed of by an Eligible Unit in contravention of
sub -secti on (1),
if any, shall be and shall be deemed to have been
withdrawn and such unit shall be liable to pay tax including penalty and
interest, if any, in respect of the turnover of sales and purchases in excess
of the turnover arrived at under sub-section (1)
and accordingly any benefit
which is so availed shall be recovered as arrears of tax as provided in sub-
secti on (3).
(3) For
recovery of arrears of tax, the Commissioner shall require the
Eligible Unit, by order in writing, to pay the tax, interest and penalty on
such turnover on which the benefits are not available and serve on the
dealer, a notice of demand as provided in sub-section (4) of section 32
accordingly:
Provided that, no order under this section shall be passed without giving
the Eligible Unit a reasonable opportunity of being
94. (1) Notwithstanding anything contained in this Act, rules or
notifications, but subject to such conditions as the Commissioner may, by
general or special order in the Official Gazette,
specify, where a dealer to
whom incentive by way of deferment of sales tax liability under any of the
Package Schemes of Incentives designed by the State Government, have
been granted by virtue of the Eligibility Certificate, and where a loan
liability equal to the amount of any such tax payable by such dealer has
been raised by the SICOM or the Directorate of Industries or the relevant
Regional Development Corporation or the District Industries Centre
concerned (………)then such tax shall be deemed, in the public interest, to
have been paid.
(2) Notwithstanding anything to the contrary contained in the Act or in the
rules or in any part of the Package Scheme of Incentives the Eligible Unit to
whom an Entitlement Certificate has been granted for availing of the
incentives by way of deferment of sale tax or purchase tax, as case may he,
may, in respect of any of the periods during which the said certificate is
valid, at its option. prematurely pay in place of the amount of tax deferred
by it, an amount equal to the net present value of the deferred tax, as may
be prescribed, and on making such payment. the deferred tax shall be
deemed in the public interest to have been paid.
CHAPTER XV
REPEALS AND
SAVINGS
95. (1) The following laws are hereby repealed, namely:—
(a) The Bombay Sales of Motor Spirit Taxation Act, 1958,
(b) The Bombay Sales Tax Act, 1959,

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(c) (………)
(d) The Maharashtra Sales Tax Act, 1979,
(e) The Maharashtra Sales Tax on the Transfer of the Right to use any
Goods for any purpose Act, 1985, and
(f) The Maharashtra Sales Tax on the Transfer of Property in Goods
involved in the Execution of Works Contract (Re-enacted) Act, 1989.
(2) Subject to the provisions contained in sub-section (1)
of section of 3 and
sub -secti on (1)
of section 96, every registration certificate and licence
granted under any of the earlier laws shall stand cancelled with effect from
the appointed day and shall be returned to the assessing authority for
defacement within a period of three months from the appointed day. The
assessing authority shall deface its own copy of the said certificate or
licence as also the copy returned to it and after defacement return the
defaced copy to the previous holder of the certificate or licence.
96.
(1) Notwithstanding the repeal by section 95 of any of the laws
referred to therein,—-
(a) those laws (including any earlier law continued in force under any
provisions thereof), and all rules, regulations, orders, notifications, forms,
certificates and notices, appointments and delegation of powers issued
under those laws and in force immediately before the appointed day shall,
subject to the other provisions of this Act, in so far as they apply, continue
to have effect after the appointed day for the purposes of the levy, returns,
assessment, re-assessment, appeal, determination, revision, rectification,
reference, limitation, production and inspection of accounts and
documents and search of premises, transfer of proceedings, payment and
recovery, calculation of cumulative quantum of benefits, exemption from
payment of tax and deferment of due date for payment of tax, cancellation
of the certificate of Entitlement. collection, or deduction of tax at source,
refund or set off of any tax withholding of any refund, exemption from
payment of tax, collection of statistics, the power to make rules, the
imposition of any penalty, or of interest or forfeiture of any sum where such
levy, returns. assessment, re-assessment, appeal, determination, revision,
rectification. reference, limitation, payment and recovery, calculation of
cumulative quantum of benefits, exemption from payment of tax and
deferment of due date for payment of tax, cancellation of the certificate of
entitlement, collection, deduction of tax at source, refund, set off,
withholding of any refund exemption, collection of statistics, the power to
make rules, limitation, production and inspection of accounts and
documents and search of premises, transfer of proceedings, penalty,
interest or forfeiture of any sum relates to any period ending before the
appointed day, or for any other purpose whatsoever connected with or

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incidental to any of the purposes aforesaid and whether or not the tax,
penalty, nterest, sum forfeited or tax deducted at source, if any. in relation
to such proceedings is paid before or after the appointed day;
(b) any registration certificate issued under the Bombay Sales Tax Act,
1959, being a registration certificate in force immediately before the
appointed day shall, in so far as the liability to pay tax under sub-section
(1)
of section 3 of this Act exists, be deemed on the appointed day to be the
certificate of registration issued under this Act, and accordingly the dealer
holding such registration certificate immediately before the appointed da`y,
shall, until the certificate is duly cancelled under this Act, be deemed to be
a registered dealer liable to pay tax under this Act and all the provisions of
this Act shall apply to him as they apply to a dealer liable to pay tax under
this Act:
(c) any registration certificate or licence issued under any of the earlier
laws other than the Bombay Sales Tax Act, 1959,
which is in force
immediately before the appointed day, to a person who does not hold a
certificate of registration under the Bombay Sales Tax Act, 1959,
immediately before the appointed day shall, in so far as the liability to pay
tax under sub-section (1)
of section 3 exists, be deemed on the appointed
day to be the certificate of registration issued under this Act till the
prescribed time provided under the third proviso to subsection (I)
of section
16 expires and accordingly the person holding such registration certificate
shall he deemed to be a registered dealer under this Act till the expiry of
such time and accordingly all the provisions of this Act shall apply to him
as they apply to a dealer liable to pay tax under this Act and subject to the
provisions of this Act, all registrations and licences granted under any
earlier law shall stand cancelled on the approved day:
(d) if any person or dealer has applied for registration under the earlier
law, before the appointed day but the registration certificate has not been
granted before the appointed day or where any dealer who has become
liable to pay tax under earlier law before the appointed day applies within
the time provided for such application under earlier law but the application
is made after the appointed day, then a registration certificate as provided
under the law shall be duly granted to such person or dealer and for the
purposes of all the provisions of this Act including the provisions contained
in section 3, such person or dealer shall be deemed to be holding a valid
certificate of registration which is in force immediately before the appointed
day and all the provisions of this Act shall apply accordingly:
(i) where any person or any dealer liable to pay tax under the Bombay Sales
Tax Act. 1959 holds in stock on the appointed day, any goods purchased
by him from a person who was not a dealer under that Act or a dealer who
was not a Registered dealer under that Act, then such person or dealer

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shall be liable to pay purchase tax on the purchase price of such goods
under that Act, as if he had become liable to pay purchase tax under
section 13 of that Act at the relevant rates of purchase tax and the said
dealer or person shall accordingly disclose such turnover and pay such tax
in the last return required to be filed by him under the Bombay Sales
Tax Act. 1959;
(ii)Where any person or dealer liable to pay tax under the Bombay Sales
Tax Act, 1959 has purchased any goods at any time before the appointed
day under a certificate or declaration given by him under section 8A, 11, 12
or 41 of the said Act and the conditions, recitals or undertakings of such
certificate or declaration are not complied with,then at any time after the
appointed day, such dealer shall be liable to pay under the Bombay Sales
Tax Act, 1959 purchase tax on the purchase price of such goods and the
purchase tax shall be levied at the rate set out against each of such goods
in column 4 of schedule B and C appended to the said Act; and accordingly
he shall file a return with the prescribed authority in the prescribed form in
respect of the period in which the goods were purchased and shall include
the purchase price thereof in the said return and shall file such return
within one month of the end of the month in which such liability arises and
pay the tax due as per the return before filing such return.
Provided that where purchase tax is payable by a dealer or person under
this clause by reason of the fact that he has failed to comply with the
conditions, recitals or undertakings of a declaration or certificate issued
under section 8A, 11,12,or 41 of the said Act, within nine months of the
appointed day, then an amount equal to the tax paid or payable under
section 11, 12, 13A or, as the case may be, section 41, shall be set-off
against the purchase tax so payable”
(f) where any dealer liable to pay tax under the Bombay Sales Tax Act,
1959, or, as the case may be, under the Maharashtra Sales Tax on the
Transfer of the Right to use any Goods for any purpose Act, 1985,
has at
any time before the appointed day effected any sale by delivery of goods on
the hire purchase or any system of payment by installments or, as the case
may be, by transfer of the right to use any goods for any purpose (whether
or not for a specified period) and any amount of sale price in respect of
such delivery or transfer is due and payable after the appointed day, then
unless the full tax pertaining to such delivery or transfer has been admitted
or paid before the appointed day, the said amounts shall he shown by the
said dealer in the appropriate returns to be filed under this Act and the tax
due on such amounts at the rates applicable under this Act shall be paid
accordingly and all the provisions of this Act shall apply to the said dealer,
delivery or transfer and the said amounts accordingly, notwithstanding
that the delivery or transfer has taken place before the appointed day:

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Provided that, the liability of the said dealer to pay tax under this Act, in
respect of the sale price due and payable after the appointed day, shall not
exceed the liability which would have accrued under the repealed Acts, if
they had continued to be in force;
(g) where a dealer registered- under the Maharashtra Sales Tax on the
Transfer of Property in Goods involved in the execution of Works Contract
(Re-Enacted) Act, 1989, is liable to pay tax under this Act, and has at any
time prior to the appointed day entered into any works contract and the
execution of the said works contract has continued after the appointed day,
then the liability of the dealer to pay tax under this Act shall be discharged
at the rated applicable under this Act and the liability so discharged in
respect of the said contract shall not exceed the liability which would have
accrued under the repealed Acts if it had continued to be in force and in
the ca se o f a dea ler who ha d o pted fo r co mpo sition
of tax under the
repealed Act, the liability under this Act in respect of a contract where the
execution has started before the appointed day and has continued
thereafter shall not exceed the sum which would have been payable by way
of composition in respect of the said contract under the repealed Acts if it
had continued to he in force.
(2) Without prejudice to the provisions contained in the foregoing sub-
section and subject section 7 of the Bombay General Clauses Act, 1904,
shall apply in relation to the repeal of any of the laws referred to in section
95
as if the law so repealed had been an enactment within the meaning of
secti on 7 of the said Act.
97. Any reference in any provision of any law now repealed by this Act to
an officer, authority or Tribunal shall for the purpose of carrying into effect
the provisions contained in section 96 be construed as reference to the
corresponding officer, authority or Tribunal appointed or constituted by or
under this Act; and if any question arises as to who such corresponding
officer, authority or Tribunal is, then the matter shall he referred to the
State Government and the decision of the State Government thereon shall
be final.
98. (1) If any difficulty arises in giving effect to the provisions of this Act,
including the provisions contained in section 96, the State Government
may, by general or special order published in the Official
Gazette, do
anything not inconsistent with such provisions, which appears to it to be
necessary or expedient for the purpose of removing the difficulty. In
particular and without prejudice to the generality of the foregoing power,
any such order may provide for the adaptations or modifications subject to
which any earlier law shall apply in relation to the proceedings in respect of
the year ending immediately before the appointed day:

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Provided that, no order under this section shall be made after the expiry of
a period of two years from the appointed day.
(2) Every order made under this section shall he laid, as soon as may be,
after it is made, before each House of the State Legislature.