Section 11

Amendment status not verified — confirm the current text below against the official source.

Composition of tax 2 (1) A registered dealer purchasing goods specified in Schedule II from another such dealer within the State after payment to him of tax under section 9 and/or purchasing goods specified in Schedule I, and whose turnover in a year does not ordinarily exceed such limit as may be prescribed but does not exceed sixty lacs [from 10.8.10] [fifty lacs- upto 9.8.10], may opt, in the prescribed form within one month of the commencement of such year, for payment, in lieu of tax payable by him under section 9, a lumpsum at such rate not exceeding four percent in such manner and subject to such restrictions and conditions as may be prescribed . 2 20 3/4Provided that in case of a dealer who is a manufacturer, the condition of purchases from a registered dealer shall be limited to the goods specified in part-III and IV of Schedule II. Provided further that the option for composition pertaining to the year 2006-07 can be given up-to 30th June, 2006; 3/4 4Provided also that a dealer who has obtained registration certificate during a year, may give option for composition for the part period of the year and the option for composition can be given within 30 days from the date of registration. 4 (2) If a registered dealer during the year for which an option has been given by him, contravenes any of the restrictions and conditions prescribed under sub-section (1), the option given by him shall stand revoked. 3/4 (3) A registered dealer who opts for composition of tax under sub-section (1) shall not be eligible to any input tax rebate in respect of the goods sold during the year in relation to which such option is exercised by the dealer and the input tax rebate already claimed and adjusted towards the tax payable, shall be paid alongwith the first quarter of the year. 3/4 3/411A. Composition of tax by certain registered dealers (1)(a) The Commissioner may, subject to such restrictions and conditions as may be prescribed, permit any registered dealer, who carries on wholly or partly the business of supplying goods in the course of execution of works contract entered into by him, to pay in lieu of tax payable by him under this Act a lumpsum at such rate as may be prescribed and determined in the prescribed manner, by way of composition, and this option for composition will have to be submitted within 2060 days20 of commencement of execution of the works contract or contract. (b) The provisions of Sections 18, 20, 20 A, 39 and 40 shall not apply to a registered dealer to whom permission to pay a lumpsum by way of composition is granted under clause (a) in relation to the period for and the goods in respect of which such composition of tax has been made and who complies with the restrictions and conditions prescribed under the said clause. (2) For the purpose of determination of the lumpsum by way of composition under clause (a) of sub-section (1), the State Government may prescribe different rates for different kinds of contracts. (3) A registered dealer who opts for composition of tax under sub-section (1) shall not be eligible to any input tax rebate in relation to the period for and the goods in respect of which such option is exercised by the dealer. 3/4 611-B : Payment of lump sum in lieu of tax (1) Notwithstanding anything contained in this Act, the State Government may direct payment of tax in lump sump in respect of such class of goods by such class of dealers on such terms and conditions as may be notified in the official Gazette. (2) The tax in lump sump specified in sub-section (1) shall not exceed the amount of maximum tax liability provided in sub-section (1) of section 9. 6 12 : Dealer not to pass incidence of tax to agriculturists and horticulturists under certain circumstances No dealer shall collect any amount, by way of tax, from a person who sells agricultural or horticultural produce grown by himself or grown on any land in which he has an interest, whether as owner, usufructuary mortgagee, tenant or otherwise, when such produce is sold 21 in the form in which it was produced, without being subjected to any physical, chemical or other process for being made fit for consumption save mere dehusking, cleaning, grading or sorting. 13 : Rate of tax on container or packing material Notwithstanding anything contained in section 9 or Section 10 where any goods packed in any container or packing material are sold or purchased, the container or packing material in which such goods are so packed shall be deemed to have been sold or purchased along with such goods and the tax under section 9 or section 10 shall be levied on the sale or purchase of such container or packing material at the rate of tax, if any, applicable to the sale, or as the case may be, the purchase of the goods themselves : Provided that no tax under section 9 or section 10 shall be levied where the container or packing material is sold or purchased along with the goods declared tax-free under Section 16. 214 Rebate of Input tax (1) Subject to the provisions of sub-section (5) and such restrictions and conditions as may be prescribed, a rebate of input tax as provided in this section shall be claimed by or be allowed to a registered dealer in the circumstances specified below- (a) Where a registered dealer purchases any goods specified in Schedule II other than those specified in Part III of the said Schedule within the State of Madhya Pradesh from another such dealer after payment to him input tax for – (1) sale within the State of Madhya Pradesh or in the course of inter-state trade or commerce or in the course of export out of the territory of India; or (2) consumption or use for/in the manufacture or processing or mining of goods specified in Schedule II for sale within the State of Madhya Pradesh or in the course of inter-state trade or commerce or in the course of export out of the territory of India; or (3) use as packing materials in packing of goods specified in Schedule II; or (4) use as plant, machinery, equipment and parts thereof in respect of goods specified in Schedule II; or 3/4(5) consumption or use for/in the manufacture or processing or packaging of goods declared tax free under section 16, for sale in the course of export out of the territory of India ; or (5a) consumption or use for/in the manufacture or processing or packaging, other than mentioned in sub-clause (5) above, and in connection with sale, of goods declared tax free under section 16; or (5b) as plant, machinery, equipment and parts thereof in consumption or use for/in generation, transmission or distribution of electrical energy; or3/4 (6) disposal of,- (i) such goods, or (ii) goods specified in Schedule II, manufactured or processed or mined out of such goods otherwise than by way of sale within the State of Madhya Pradesh or in the course of inter-state trade or commerce or in the course of export out of the territory of India, he shall claim or be allowed in such manner and within such period as may be prescribed, input tax rebate of the amount of such input tax – (i) in case of goods referred to in sub-clauses (1), (2), 3/4 (3), (4) and (5) 3/4; and (ii) in case of goods referred to in sub-clauses 3/4 (5a), (5b) 3/4 and (6), 22 which is in excess of 4 percent of the purchase price, net of input tax, of such goods; (b) Where a dealer makes an application for grant of a registration certificate under clause (a) or clause (b) of sub-section (2) of section 17 on or after the commencement of the Act, he shall, in respect of goods specified in Schedule II other than those specified in part III of the said Schedule, purchased, on or after such commencement, by him within the State of Madhya Pradesh from another such dealer after payment to him input tax and held in stock by him on the date of validity of the registration certificate issued to him under clause (a) or clause (b) of sub-section (2) of section 17, claim or be allowed input tax rebate of the amount of such tax in accordance with the provisions of clause (a) above. 3/4 (c) Where a registered dealer who has opted for composition under section 11 for a year, does not opt for composition in subsequent year, he shall claim or be allowed input tax rebate in respect of the goods held in stock on the date of commencement of the subsequent year in accordance with the provisions of clause (a) above. (d) Notwithstanding anything contained in clause (a), where the goods purchased within the State of Madhya Pradesh by canteen stores department, registered under the Act, from a registered dealer after payment to him input tax, are sold as canteen stores by the canteen stores department to serving military personnel and ex-servicemen directly or through regimental or unit run canteens, the canteen stores department shall claim or be allowed in such manner and within such period as may be prescribed, input tax rebate of the amount of such input tax, which is in excess of 4 percent of the purchase price, net of input tax, of such goods . 3/4 20(e) Notwithstanding anything contained in clause (a), Where a dealer, who is a builder and developer carrying on the business of constructing residential and / or commercial buildings, makes an application for grant of a registration certificate under clause (a) of sub-section (2) of section 17 after the prescribed period but before 31st March, 2008, he shall, in respect of goods specified in Schedule II other than those specified in part III of the said Schedule, purchased, on or after date of liability, by him within the State of Madhya Pradesh from a registered dealer after payment to him input tax, claim or be allowed input tax rebate of the amount of such tax in accordance with the provisions of clause (a) above.20 20 (1A) Subject to such restrictions and conditions as may be prescribed, where a registered dealer purchases natural gas as specified in Part III of Schedule II within the State of Madhya Pradesh from another such dealer after payment to him input tax and consumes the natural gas so purchased in generation of electrical energy, he shall claim or be allowed in such manner and within such period as may be prescribed, input tax rebate of the amount of such input tax which is in excess of 5 percent of the purchase price, net of input tax, of such natural gas.20 (1B) Subject to such restrictions and conditions as may be prescribed, where a registered dealer sells the goods as may be notified by the State Government, and the dealer consumes the goods purchased by him within the State of Madhya Pradesh from another such dealer after payment to him input tax, in the manufacture of such notified goods, he shall claim or be allowed in such manner and within such period as may be prescribed, 23 input tax rebate of the amount of such tax. The provisions of clause (a) of sub-section (1) shall mutatis mutandis apply to the input tax rebate claimed or allowed under this sub- section. [from 10.8.10] (2) Notwithstanding any thing contained in this Act, where- (a) any official or personnel of – (i) any foreign diplomatic mission or consulate in India; or (ii) the United Nations Organisation or any other similar international body, entitled to privileges under any convention to which India is a party or under any law for the time being in force; or (b) any consular or diplomatic agent of any mission, the United Nations Organisation or other body referred to in sub-clause (i) or sub-clause (ii) of clause (a), purchases any goods specified in Schedule II other than those specified in part III of the said Schedule within the State of Madhya Pradesh from a registered dealer after payment to him input tax for himself or for the purposes of such mission, United Nations Organisation or other body, he shall be entitled to claim or be allowed, in such manner and within such period as may be prescribed, input tax rebate of the amount of such input tax and such rebate shall be granted by way of refund. (3) The input tax rebate by a registered dealer under sub-section (1) 20and (1A)20 shall be adjusted in such manner as may be prescribed towards the tax payable by him under this Act or under the Central Sales Tax Act, 1956 (No. 74 of 1956) and the balance, if any, shall be carried over for adjustment towards tax payable in the subsequent year : Provided that the input tax rebate, which remains unadjusted even after two years from the close of the relevant financial year, shall be granted by way of refund. (4) Notwithstanding any thing contained in sub-section (3), if any amount of input tax rebate in respect of the goods purchased by a registered dealer being,- (i) for sale in the course of export out of the territory of India; or (ii) for consumption or use for/in the manufacture or processing or mining of goods for sale in the course of export out of the territory of India; or 3/4 (iii) for use as plant, machinery, equipment and parts thereof; or (iv) for sale as canteen stores; 3/4 4 (v) for sale or supply to the Central Government or a State Government. 4 20(vi) natural gas consumed in generation of electrical energy,20 is not adjustable towards any tax payable by him, such rebate shall be granted by way of refund. (5) (a) (i) Where a registered dealer has claimed and adjusted input tax rebate towards the tax payable by him according to his return or returns, such dealer shall in the event of disposal of,- (a) goods; or (b) goods specified in Schedule II, manufactured or processed or mined out of the goods, otherwise than by way of sale within the State of Madhya Pradesh or in the course of inter-state trade or commerce or in the course of export out of the territory of India, be liable to pay the amount of input tax or the amount at the rate of 4 percent of the purchase price, net of input tax, of such goods, whichever is lower, towards the input tax rebate in respect of the aforesaid goods adjusted by him. (ii) Where a registration certificate of a registered dealer who has claimed and adjusted input tax rebate towards the tax payable by him according to his return or returns, is cancelled under sub-section (10) of section 17, such dealer shall pay the amount claimed by way of input tax rebate in respect of the goods held in stock by him on the date the order of cancellation of the registration certificate takes effect. (b) Where the amount of tax or the amount of input tax rebate which a registered 24 dealer is liable to pay under clause (a) is not adjustable towards any input tax rebate to his credit, such dealer shall be liable to pay, on the amount so payable, interest at the rate of 1.5 percent per month for the period commencing from the date such amount has become due to the date of its payment. (6) No input tax rebate under sub-section (1) shall be claimed or be allowed to a registered dealer,- (i) in respect of any goods specified in Schedule II purchased by him from another such dealer for sale but given away by him by way of free sample or gift or given to or received by him by way of replacement; (ii) in respect of goods specified in Schedule II for use or consumption for manufacture or processing or mining of goods but the goods manufactured or processed or mined are given away by him by way of free sample or gift or given to or received by him by way of replacement; (iii) in respect of goods purchased by him from another such dealer who opts for the composition of tax under the provisions of section 3/411 and 11 A3/4; (iv) who opts for composition under section 3/411 and 11 A3/4; (v) 3/4Omitted. 3/4 (vi) in respect of plant, machinery, equipment and parts thereof, as may be notified by the State Government. 20(vii) in respect of goods, the amount of bill, invoice or cash memorandum of which exceeds rupees forty thousand and payment of which has not been made by crossed cheque. (viii) in respect of goods, the amount of tax included in bill, invoice or cash memorandum of which exceeds rupees one thousand and it has not been authenticated in accordance with the provision of sub-section (1-A) of section 40. (ix) in respect of goods notified under section 9-A.20 (7) (a) The State Government, if it deems fit, may, by notification, specify any goods mentioned in part III of Schedule II for the purpose of claiming or allowing input tax rebate under this section, when such goods are purchased by a registered dealer from another such dealer within the State of Madhya Pradesh,- (i) after payment to him of tax under section 9, or (ii) which are taxpaid goods at the hands of the selling registered dealer, for use or consumption of such goods for/in the manufacture or for/in mining of any goods for sale within the State of Madhya Pradesh or in the course of inter state trade or commerce or in the course of export out of the territory of India and thereupon the input tax rebate in respect of such goods shall be claimed or be allowed in such manner, to such extent, within such period and subject to such restrictions and conditions as may be specified in the notification. (b) The provisions of clause (b) of sub-section (1) and sub-sections (3) to (5) shall apply to input tax rebate that may be claimed or allowed in respect of goods referred in clause (a). 2 15 : Burden of proof - The burden of proving that any sale or purchase effected by a dealer is not liable to tax under Section 9 or Section 10 as the case may be, or that he is eligible for an input tax rebate under section 14 shall be on the dealer. 16 : Tax free goods - No tax shall be payable on the sale or purchase of goods specified in Schedule-I, subject to the conditions and exceptions, if any, set out in the corresponding entry in the third column thereof.. (upto 31-07-2009) 25 20No tax under section 9 or section 10 as the case may be, shall be payable on the sale or purchase of goods specified in Schedule I, subject to the conditions and exceptions, if any, set out in the corresponding entry in the third column thereof.20(from 01-08-2009) 16-A : Saving Notwithstanding the repeal of the Madhya Pradesh Vanijyik Kar Adhiniyam, 1994 (No. 5 of 1995) or the Madhya Pradesh General Sales Tax Act, 1958 (No. 2 of 1959) repealed by Act No. 5 of 1995 (hereinafter referred to as the repealed Acts), the State Government may, by notification, exempt - (i) (a) any class of dealers; or (b) any goods or class of goods in whole or in part, from the payment of tax under the repealed Acts; or (ii) any dealer or class of dealers from any provision of the repealed Acts or the provision of any rules made there under , 3/4 (1) for any period before the commencement of this Act and for that purpose it shall and shall always be deemed that the provisions of section 17 of the Act repealed by this Act or section 12 of the Act No. 2 of 1959 repealed by Act No. 5 of 1995 have revived for the purpose of such exemption. (2) Notwithstanding anything contained in any other provisions of the repealed Acts,- (a) a registered dealer who is an industrial unit eligible for grant of facility of deferred payment of tax under the scheme providing for grant of incentive to entrepreneur in respect of an industrial unit set up in the State as the State Government may make in this behalf, may make deferred payment of tax pertaining to such period before the commencement of this Act and subject to such restrictions and conditions, as may be specified in such scheme. (b) the State Government may, by notification, amend any notification relating to the facility of deferred payment of tax by the industrial units, issued under Section 37 read with Section 80 of the Act repealed by this Act or Section 22-D read with Section 51 of the Act No. 2 of 1959 repealed by Act No. 5 of 1995, and for that purpose it shall and shall always be deemed that the provisions of Section 37 and Section 80 of the Act repealed by this Act or Section 22-D and Section 51 of the Act No. 2 of 1959 repealed by Act No. 5 of 1995 have revived for the purpose of such deferment or amendment. 3/4 CHAPTER V – Registration of dealers 17 : Registration of dealers (1) Every dealer whose turnover during the twelve months immediately preceding the commencement of this Act exceeds the limit prescribed under sub-section (1) of Section 5 shall get himself registered in the prescribed manner within thirty days of the commencement of this Act. (2) (a) Every dealer other than a dealer to whom sub-section (1) applies shall get himself registered within the prescribed period from the date on which his turnover in a year first exceeds the limit prescribed under sub-section (1) of Section 5. (b) Every dealer being a transferee of a business within the meaning of sub-section (1) of section 29 shall get himself registered within thirty days from the date of transfer of the business of which he is a transferee. (c) A dealer who though not liable to pay tax under section 5 desires to obtain a registration certificate voluntarily may get himself registered under this Act; (d) Any person intending to establish a business in the State for the manufacture of goods for sale of value exceeding one lac in a year and who is registered in the Industries Department of the State Government for establishing an industrial unit in the State or who is issued a licence wherever necessary or has sent a memorandum of information to the 26 Central Government to establish a new industrial undertaking in the State under the provisions of the Industries (Development and Registration) Act, 1951 (No. 65 of 1951) may, notwithstanding that he is not liable for registration under clause (a), get himself registered under this Act. (3) Every dealer required to get himself registered under sub-section (1) or clause (a) or clause (b) of sub-section (2), shall, or a dealer who desires to get himself registered under clause (c) of sub-section (2), or a person who desires to get himself registered under clause (d) of sub-section (2) may make an application to the Commissioner in such form and manner as may be prescribed, giving correct and complete particulars therein. Such application shall be accompanied by an affidavit in support of the particulars given in the application and also a satisfactory proof of payment of a registration fee of five hundred rupees in the prescribed manner. (4) (a) On the day the application for grant of a registration certificate as required by sub- section (1) or sub-section (2) is received, the said authority shall grant the applicant a registration certificate in the prescribed form. (b) After issue of the registration certificate under clause (a), the Commissioner shall verify the particulars given in the application in such manner as may be prescribed. (c) If the Commissioner on verification under clause (b), is satisfied that the particulars given by the applicant in his application are incorrect or that the applicant has misrepresented certain facts, he shall, after giving the applicant an opportunity of being heard and recording the reasons in writing, cancel the registration certificate issued to the applicant under clause (a) in accordance with the provisions of clauses (c) or clause (e) of sub-section (10) from the date of its issue, not later than thirty days of the date of receipt of the application. [from 10.8.10] [(4) 10 (a) On receipt of the application for grant of registration certificate,- (i) the said authority shall, if it is satisfied that the application is in order, grant the applicant a certificate of registration in such form and manner as may be prescribed; and (ii) if the said authority is not so satisfied, he shall reject the application, not later than thirty days from the date of receipt of the application. (b) If the certificate of registration is not granted or the application is not rejected within the aforesaid period of thirty days, the applicant shall, on expiration of the said period, be entitled to a certificate of registration in accordance with his application and the said authority shall issue a certificate of registration accordingly. --24.12 .2007 to 9.8 .2010] 10 [(4) (a) On the day the application for grant of a registration certificate as required by sub- section (1) or sub-section (2) is received, the said authority shall grant the applicant a registration certificate in the prescribed form. (b) After issue of the registration certificate under clause (a), the Commissioner shall verify the particulars given in the application in such manner as may be prescribed.. (c) If the Commissioner on verification under clause (b), is satisfied that the particulars given by the applicant in his application are incorrect or that the applicant has misrepresented certain facts, he shall, after giving the applicant an opportunity of being heard and recording the reasons in writing, cancel the registration certificate issued to the applicant under clause (a) in accordance with the provisions of clauses ( c ) or clause (e ) of sub-section (10) from the date of its issue, not later than thirty days of the date of receipt of the application. 27 --1.4.2006 to 24.12 .2007] (5) The registration certificate granted under sub-section (4) shall take effect from - (a) in a case where a dealer required to get himself registered under clause (a) or clause (b) of sub -section (2) has applied for registration within the period prescribed under clause (a) or specified in clause (b) of the said sub-section, the date on which his turnover in a year first exceeds the limit prescribed under sub-section (1) of section 5 or the date of transfer of business, as the case may be : (b) in a case where a dealer required to get himself registered under clause (a) or clause (b) of sub-section (2) has applied for registration after the expiry of the prescribed or specified period, as the case may be, the date on which he applies for registration; (c) where a dealer has applied under clause (c) or a person has applied under clause (d) of sub-section (2), for registration the date of such application and notwithstanding the provisions of section 5, such dealer or person as the case may be, shall be liable to pay tax under this Act, during the period from the said date till his registration certificate remains in force (6) Without prejudice to the provisions of sub-section (6) of Section 2020 when a dealer has without reasonable cause, failed to get himself registered within the prescribed time as required by sub-section (1) or clause (a) or clause (b) of sub-section (2) the Commissioner may, after giving such dealer a reasonable opportunity of being heard, direct him to pay by way of penalty, in addition to the fee payable, a sum not exceeding rupees five hundred. (7) Every dealer who at the commencement of this Act holds a registration certificate under the provisions of the Act repealed by this Act shall, on such commencement, be deemed for all purposes of this Act to be a dealer registered and holding a registration certificate under this Section. (8) If any registered dealer or other dealer who is required to furnish returns under sub- section (1) of Section 18 - (a) sells or otherwise disposes of his business or any part or place of his business or effects or comes to know of any other change in the ownership of the business, or (b) discontinues his business or changes his place of business or opens a new place of business, or (c) changes the name or nature of his business, he or if he dies, his legal representative shall within the prescribed time, inform the prescribed authority accordingly. (9) (a) The Commissioner shall - (i) on an application made by a registered dealer for amendment of his registration certificate in pursuance of the provisions of sub-section (8) or otherwise, amend the registration certificate of the dealer or reject the application within 30 days of the date of receipt of such application, after making such enquiry as he deems fit; and (ii) on being satisfied that the registration certificate issued to a dealer requires amendment with regard to certain particulars specified therein, amend the registration certificate after giving the dealer an opportunity of being heard. (b) When the registration certificate is amended under sub-clause (i) of clause (a) in pursuance of any of the events specified in sub-section (8), such amendment shall take effect from the date such event has taken place and in all other cases falling under the said sub-clause the amendment shall take effect from the date of application. An amendment made under sub-clause (ii) of clause (a) shall take effect from the date of order for making such amendment. 28 (10)(a) on an application by a registered dealer that his business has been discontinued or transferred, or the Commissioner on his own motion finds that a registered dealer has discontinued or transferred his business ; or (b) on an application by a registered dealer that his liability to pay tax has ceased ; or the Commissioner on his own motion finds that as per the returns submitted by a registered dealer, his turnover in the immediate previous year has not exceeded the limit prescribed under section 5 ; or (c) the Commissioner on his own motion finds that a registered dealer has been granted a registration certificate on the basis of the incorrect information furnished by the dealer ; or (d) the Commissioner on his own motion finds that a registered dealer is in arrears of tax or penalty or any other sum due under this Act or under the Act repealed by this Act, which is more than rupees one lac and which remains outstanding for more than six months ; or (e) the Commissioner on his own motion finds that the certificate of a registered dealer should be cancelled for reasons to be recorded in writing by him, the Commissioner may cancel the registration certificate. Provided that where the Commissioner proposes to cancel the registration certificate of a dealer under this sub-section, he shall give the dealer an opportunity of being heard. [from 10.8.10] [(10) When - (a) a registered dealer discontinues or transfers his business; or (b) the liability of a registered dealer to pay tax ceases; or (c) a registered dealer has been granted a registration certificate by mistake; or (d) a registered dealer is in arrears of tax or penalty or any other sum due under this Act or under the Act repealed by this Act; or (e) the Commissioner for reasons to be recorded in writing, is of the opinion that the registration certificate should be cancelled for any other reason; the Commissioner may either on his own motion or on the application of the dealer in this behalf cancel the registration certificate: Provided that where the Commissioner proposes to cancel the registration certificate of a dealer under this sub-section, he shall give the dealer an opportunity of being heard. -- 1.4.2006 to 9.8.10] (11) Any dealer whose registration certificate is cancelled under clause (d) or clause (e) of sub-section (10) shall, for the purpose of sub-section (6) of Section 2020 be deemed to be a dealer, who has failed to apply for registration, but shall not be liable to pay any penalty under the said sub-section. 20(11A) Where registration certificate of a dealer is cancelled under clause (e) of sub- section (10) for non filing of returns, the dealer may within thirty days from the date of communication of cancellation order apply to the Commissioner for reinstatement of registration certificate with a fee of rupees two thousand and if the Commissioner is satisfied that the dealer has furnished all due returns along with payment of tax payable as also interest , if any, the Commissioner may reinstate the registration certificate effective from the date from which it was cancelled.20 (12) 2 (a) The Commissioner may, for the proper realisation of tax, from time to time demand from a registered dealer reasonable security as may be prescribed to be furnished in the prescribed manner . 2 29 (b) The Commissioner may, by order, forfeit the whole or any portion of the security furnished by a dealer,- (i) for collection of any amount of tax, interest or penalty payable by the dealer; or (ii) if the dealer is found to have misused any prescribed certificate or declaration or has failed to keep or retain them in the prescribed manner, (c) No order shall be passed under sub-clause (b) above, without giving the dealer a reasonable opportunity of being heard. CHAPTER - VI Returns, Assessment, Payment and Recovery of Tax 18 : Returns (1) (a) (i) Every such dealer as may be required so to do by the Commissioner by notice served in the prescribed manner; (ii) every registered dealer; and (iii) every dealer whose registration certificate has been cancelled under clause (d) or clause (e) of sub-section (10) of Section 17, shall furnish return in such form, in such manner, for such period, by such dates and to such authority as may be prescribed: Provided that the Commissioner may, subject to such terms and conditions as may be prescribed, exempt any such dealer from furnishing such returns and statement or permit any such dealer to furnish the return for such different period, in such other form and to such other authority, as he may direct. (b) Every dealer required to furnish returns, under clause (a), shall furnish a statement in such forms and manner for such period, by such date and to such authority as may be prescribed. (c) 2omitted2 (2) If any dealer discovers any omission, error or wrong statement in any return furnished by him under clause (a) of sub-section (1) he may furnish a revised return in the prescribed manner and within the prescribed time. (3) Every dealer required to file return under sub-section (1) shall pay the full amount of tax payable according to the return as required by sub-section (2) of Section 24 or the difference of the amount of tax payable according to the revised return as required by sub-section (3) of the said Section and the full amount of interest, if any, payable under clause (a) or clause (b) of sub-section (4) and shall furnish the proof of such payment along with the return or the revised return, as the case may be . (4) (a) If a dealer required to furnish return under sub-section (1), - (i) fails to pay the amount of tax payable according to a return for any period in the manner prescribed under sub-section (2) of Section 24; or (ii) furnishes a revised return under sub-section (2) showing a higher amount of tax to be due than was shown by him in the original return; or 6 (iii) fails to furnish return; or (iv) has furnished return or returns and the tax paid along with the return or returns is less than the tax as per accounts, 6 30 such dealer shall be liable to pay interest in respect of,- (1) the tax payable by him according to the return: or (2) the difference of the amount of tax payable according to the revised return; or 6 (3) the tax payable for the period for which he has failed to furnish return; or (4) the amount of tax by which tax so paid along with the return or returns falls short of the tax as per accounts, 6 1at such rate as may be prescribed which shall not exceed 1.5 percent per month1 from the date the tax so payable had become due to the date of its payment or to the date of order of assessment, whichever is earlier. Explanation - For the purpose of this clause,- (1) Where the period of default covers a period less than a month the interest payable in respect of such period shall be computed proportionately. (2) ‘month’ shall mean thirty days. (b) 6If a registered dealer having furnished a return under sub-section (1) or a revised return under sub-section (2) for any period and paid the tax payable according to such return or revised return after the time prescribed therefor or the tax paid along with the return or returns falls short of the tax as per accounts, fails to pay interest along with such return or revised return or payment of amount of tax by which tax so paid along with the return or returns falls short of the tax as per accounts, in accordance with the provisions of clause (a), the Commissioner shall levy the interest liable to be paid by the dealer and after giving the dealer a reasonable opportunity of being heard, may direct him to pay in addition to the tax payable or paid and the interest payable by him, by way of penalty a sum equal to such rate as may be prescribed which shall not exceed 1.5 percent per month of the amount of interest, from the date such interest had become due to the date of its payment or to the date of order of assessment, whichever is earlier. 6 (c) If a dealer fails without sufficient cause to comply with the requirement of notice issued under sub-section (1), the Commissioner may after giving the dealer a reasonable opportunity of being heard, direct him to pay, in addition to any tax payable or paid by him, by way of penalty a sum of one hundred rupees per day of default subject to a maximum of rupees five thousand. (d) Where,-. (i) no tax is payable by a registered dealer committing a default under sub-clause (iii) of clause (a), or (ii) a registered dealer having paid the tax payable according to a return in time fails to furnish the return in time; the Commissioner may after giving such dealer a reasonable opportunity of being heard direct him to pay by way of penalty a sum of rupees fifty per day of default subject to a maximum of rupees one thousand. (5)(a) If the Commissioner has reason to believe that the particulars given by a registered dealer in his return or returns furnished by him for any period under sub-section (1) or sub- section (2) are not correct he may, by giving the dealer an opportunity of being heard, verify the correctness of such particulars in the return or returns. (b) If on such verification it is found that the particulars given in the return or returns are not correct in so far as they relate to the application of the correct rate of tax, the calculation of 31 tax or interest payable or claim of any deduction and input tax rebate, he shall by issue of a notice in the prescribed form require such dealer to make the payment of the additional amount of tax and or interest payable by him within the period specified in such notice. 19 Tax Audit - (1) 2The Commissioner or an agency authorised by him shall , on previous intimation to the dealer , undertake tax audit, in such manner as may be prescribed, of the records , stocks in trade and the related documents of the dealer, who are selected by him in the manner as he may deem fit. 2 (2) The tax audit shall be generally taken up in the office, business premises or warehouse of the dealer. (3) [ For the purpose of tax audit under sub-section (1), the Commissioner 2or an agency2 authorised by him shall examine the correctness of the return or returns filed and admissibility of various claims including input tax rebate . --1.4.2006 to 24.12 .2007] 10Omitted 10 2(4) For the purpose of tax audit, the Commissioner or an agency authorised by him may enter the place of business, office or warehouse of the dealer and require him to produce books of account and documents relating to his business, and the dealer , shall produce the books of account and the documents relating to his business as required. (5) Tax audit shall be completed within a period of six calendar months from the date of institution of the proceedings and after completion of tax audit, a report shall be prepared and in case of tax audit by an agency authorised by the Commissioner, the report shall be submitted to the Commissioner, who shall send a copy of the report to the dealer. [(6) After such audit, if the return or returns filed by the dealer are not found to be correct, the Commissioner shall by issue of a notice in prescribed form require such dealer to make the payment of the additional amount of tax and /or interest payable by him, at such rate as may be prescribed, within the period specified in such notice. --1.4.2006 to 24.12 .2007] (6) 10After such audit, if the return or returns filed by the dealer are not found to be correct or the dealer has not filed return or returns, the commissioner shall by issue of a notice in prescribed form require such dealer to make the payment of tax and / or interest payable by him, at such rate as may be prescribed, within the period specified in such notice. 10 (7) If the dealer does not comply with the requirements made in the notice, the Commissioner shall assess or re-assess him to tax and interest and / or to imposition of penalty, in accordance with the provisions of section 20. 2 20 : Assessment of tax (1) The assessment of every registered dealer shall be made separately for every year : Provided that, (a) the Commissioner, may, subject to such conditions and restrictions as may be prescribed assess the tax due from any dealer for any part of a year, (b) a registered dealer who claims a refund of input tax rebate under the provisions of sub-section (4) of section 14,- (i) in his return for any quarter of a year and makes an application for that purpose, along with such return or before the date on which the return for the subsequent quarter becomes due, or (ii) in his returns for a year and makes an application for that purpose before the date on which the return for the first quarter of the subsequent year becomes due, 32 the assessment of such dealer for that quarter or year, as the case may be shall be made in accordance with the provisions of sub-section (4) within a period of three months from the date of receipt of the application (2) 2omitted2 (3) 2omitted2 (4) 2 (a) The Commissioner shall serve on a registered dealer referred to in the proviso to sub-section (1) of this section or sub-section (3) of section 20A or a registered dealer who is not eligible for assessment 23..under sub-section (1) and (1A) of section 20-A