Section 23

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

with a notice in the prescribed form appointing a place which may be the business premises or any other place and day and directing him,- (i) to appear in person or by an agent entitled to appear in accordance with the provisions of section 23 ; or (ii) to produce evidence or have it produced in support of the returns; or (iii) to produce or cause to be produced accounts, registers, cash memoranda or other documents relating to his business. 2 (b) The Commissioner, after hearing the registered dealer or his agent and examining the evidence produced in compliance with the requirements of sub-clause (ii) or sub- clause (iii) of clause (a) and such further evidence as he may require, shall assess or re-assess him to tax. (5) If a registered dealer referred to in clause (a) of sub-section (4),- - (a) has not furnished returns and statement in respect of any period by the prescribed date; or (b) has knowingly furnished incomplete or incorrect returns for any period; or (c) having furnished such returns has failed to comply with any of the terms of a notice issued under clause (a) of sub-section (4); or (d) (i) has not maintained any accounts, or (ii) the accounts maintained by him are not in accordance with the provisions of sub-section (1) of Section 39, or (iii) has not regularly employed any method of accounting, or (iv) the method employed is such that in the opinion of the Commissioner assessment cannot properly be made on the basis thereof, the Commissioner shall after issue of a notice in the prescribed form appointing a place which may be the business premises or at the place specified in the notice and in the prescribed manner, assess the dealer to the best of his judgment. (6) (a) If upon any information which has come into his possession, the Commissioner is satisfied that any dealer, being liable to pay tax in respect of any period has failed to apply for registration, the Commissioner shall within one calendar year from the date of completion of the proceedings under sub-section (1) of Section 6 proceed, in such manner as may be prescribed, to assess such dealer and assess him to tax to the best of his judgment in respect of the whole of such period and shall impose upon him, by way of penalty, a sum two times of the amount of tax so assessed. (b) In respect of periods, subsequent to the period referred to in clause (a), during which the dealer has failed to apply for registration, the amount of tax due from him referred to in the said clause shall be assessed separately for each year. (7). (i) the assessment in respect of a registered dealer referred to in clause (a) of sub- Section (4) shall be made within a period of one calendar year from the end of the period for which the assessment is to be made, (ii) the assessment in respect of a dealer referred to in clause (b) of sub-section (6) for any period shall be made within a period of one calendar year from the end of such period ; and 33 2 (iii) in respect of a dealer, under clause (a) of sub-section (6) shall be made within a period of one calendar year from the commencement of proceedings under the said sub- section: 2 Provided that - (a) where a fresh assessment has to be made to give effect to any finding or direction contained in any order under Sections 46, 47 and 53 or to any order of the Civil Court, High Court or Supreme Court, such assessment shall be made within a period of one calendar year from the date of the order containing such finding or direction or the order of the Civil Court, High Court or Supreme Court, as the case may be; 2 (b) nothing contained in this sub-section shall apply to proceedings initiated under Section 21 or any proceeding other than assessment or re-assessment of tax that may be instituted under any other provisions of this Act. 2 (8) Notwithstanding anything contained in sub-section (7), where assessment or re- assessment proceedings in respect of any dealer relating to any period cannot be completed before the expiry of the period specified therefor in the said sub-section, the State Government, may by notification, for reasons to be recorded in writing, extend the period for the completion of such assessment proceedings in respect of such dealers by such further period as may be specified in such notification. (9) (a) where, a registered dealer claims refund of tax or input tax rebate in his return for any quarter or return or returns for any year and makes an application for his assessment for that quarter or that year but his assessment is not completed within the time specified in the proviso to sub-section (1) the claim made in the return or returns for that quarter or year shall stand accepted and such dealer shall be entitled to the refund of the amount of the tax or input tax rebate.. (b) where the assessment for any year of a registered dealer,- (i) other than a registered dealer referred to in the proviso to sub-section (1), and (ii) a registered dealer who has not furnished any return or returns for that year, is to be made under the provisions of sub-section (4) or sub-section (5) is not made within the time provided in sub-section (7) or within the time extended under sub-section (8), then,- (a) the returns furnished by the registered dealer in (i) above shall stand accepted and he shall be deemed to have been assessed for the purpose of the Act. (b) the assessment of the registered dealer in (ii) above shall become time-barred. 2Section 20-A.Self assessment (1) Where a registered dealer other than the registered dealer referred to in the proviso to sub-section (1) of section 20 has furnished, - (a) all returns or revised returns for any period of a year in the prescribed manner and within prescribed time or before, (i) 31st July of the subsequent year, in case of such dealer whose annual turnover does not exceed rupees forty lacs; (ii) 31st October of the subsequent year, in other cases; (b) has paid the tax payable according to such returns or revised returns as also interest payable, if any; and (c) has furnished the statement under clause (b) of sub-section (1) of section 18 within the prescribed time, the returns or the revised returns furnished by such dealer for that year, subject to compliance of requirements made in the notice issued under the provisions of sub- section (5) of section 18 and sub-section (6) of section 19, shall be accepted and his assessment shall be deemed to have been made for the purpose of sub-section (1) 34 of section 20 : Provided that the assessment under this sub-section of every such registered dealer who is required to furnish audit report under sub-section (2) of section 39 shall be deemed to have been made only after such dealer has furnished the audit report.: 23.Provided further that the State Government may, by notification, extend the dates of filing of returns / revised returns as specified in clause (a) with an interest of 0.5% per month, which shall be in addition to the interest payable in accordance with the provision of clause (a) of sub-section(4) of section 18. 23. 20(1A) Notwithstanding anything to the contrary contained in sub-section (1), a registered dealer who has not furnished the returns and/or the audit report in respect of a year, furnishes returns with proof of payment of tax as also interest, if any, according to such returns and/or audit report with a penalty as specified in sub-section (5) of section 39, if any payable, along with the compliance of requirements made in the notice issued under the provisions of sub-section (6) of section 19, the returns furnished by such dealer for that year shall be accepted and his assessment shall be deemed to have been made for the purpose of sub- section (1) of section 20 .20 (1B) Notwithstanding anything to the contrary contained in sub-section (1) and (1-A), the State Government may, by notification, provide that assessment of a registered dealer subject to such requirements, restrictions and conditions as may be specified in the notification, shall be deemed to have been made for the purpose of sub-section (1) of Section 20. [w e f 10.8.10] (2) 23.Notwithstanding anything to the contrary contained in sub-section (1) and (1A), the Commissioner shall select for reassessment a number of such dealers, as he deems fit, whose assessment for a year is deemed to have been made under sub-section (1) of section 20 in accordance with the provisions of sub-section (1) and (1A) and such selection shall be made during the year immediately following the said year. 23. (3) The Commissioner shall re-assess a registered dealer referred to in sub-section (2) in accordance with the provisions of section 20. 2 21: Assessment/reassessment of tax in certain circumstances (1) Where an assessment or re-assessment of a dealer has been made under this Act or the Act repealed by this Act and for any reason any sale or purchase of goods liable to tax under this Act or the Act repealed by this Act during any period,-- (a) has been under assessed or has escaped assessment, or (b) has been assessed at a lower rate, or (c) any wrong deduction has been made while making the assessment , or (d) a rebate of input tax has incorrectly been allowed while making the assessment , (e) is rendered erroneous and prejudicial to the interest of revenue consequent to or in the light of any judgment or order of any Court or Appellate Board, which has become final, the Commissioner may, at any time 2within a period of five calendar years from the date of order of assessment or reassessment in cases falling under clauses (a) to (d) and within a period of three calendar years from the date of judgment or order of any court or Appellate Board in cases falling under clause (e) 2, proceed in such manner as may be prescribed, by issue a notice in the prescribed form appointing a place which may be the business premises or at such place specified in the notice to assess or re-assess, as the 35 case may be the tax payable by such dealer after making such enquiry as he considers necessary, and assess or re-assess to tax. (2) The commissioner shall, where the omission leading to assessment or re-assessment made under sub-section (1) is attributable to the dealer, impose upon him a penalty not exceeding 23.5 times2 the amount of tax so assessed. or re-assessed but shall not be 2less than three times2 the amount of tax assessed. (3) The assessment or re-assessment under sub-section (1) shall be made within a period of one calendar year from the date of commencement of the proceedings under the said sub-section 2 (4) Subject to such restrictions and conditions and in such manner as may be prescribed, a dealer, on whom a penalty has been imposed under sub-section (2), may opt to pay in lieu of penalty a lump sum amount, which shall be twice the amount of tax assessed or reassessed and once the dealer has exercised the option he shall not have any right to challenge the order of penalty in any forum. 2 22 : Exclusion of time in assessment proceedings In computing the period of limitation prescribed for assessment or reassessment as the case may be, under Section 20 or Section 21, the time during which any assessment or reassessment proceedings remained stayed under the order of any civil or other competent court, or under the special or general order of the Commissioner issued under section 45, shall be excluded. 23 : Appearance before taxing authorities (1) Any dealer who is entitled or required to attend or appear before any officer appointed under Section 3 in connection with any proceedings under this Act, otherwise than when required under Section 43 to attend personally for examination on oath or affirmation, may authorise in writing to attend or appear on his behalf, a person being a relative of or a person regularly employed by the dealer, or a legal practitioner or a chartered accountant or a tax practitioner. (2) For the purpose of sub-section (1) any person who - (a) before coming into force of this Act, had been enrolled as a Sales Tax Practitioner/Tax Practitioner, or (b) holds a degree in law or commerce or the degree of Bachelor of Arts with economics as one of his subjects conferred by any Indian university incorporated by any law for the time being in force or by any other university as the State Government may, from time to time by notification, specify; or (c) does not possess any of the qualifications referred to in sub-clause (b) but has held a post, in the Commercial Tax Department, not below the rank of an Assistant Sales Tax Officer / Assistant Commercial Tax Officer for at least ten years and is granted a certificate by the Commissioner having regard to his record of service in the department as being a fit and proper person to appear in any proceeding under this Act, shall be entitled to appear as a Tax Practitioner. (3) Every person referred to in clause (b) or clause (c) of sub-section (2) who is eligible to appear as a tax practitioner in any proceedings under this Act shall get himself enrolled on payment of such fee as may be prescribed. (4) If the Commissioner is satisfied that the application for enrollment is in order, he shall issue to the applicant an enrollment certificate in the prescribed form. If the Commissioner, 36 after making such enquiry as he deems fit, and after giving the applicant a reasonable opportunity of being heard is not so satisfied, he shall, for reasons to be recorded in writing, reject the application. (5) Notwithstanding anything contained in sub-sections (1) and (2) no person who has held any post in the Commercial Tax Department not below the rank of a Commercial Tax Inspector shall be entitled to represent any dealer in any proceeding under this Act :- (i) if he has at any time, passed any order in such proceeding, while he was holding any post in the department; (ii) if the place of business of the dealer whom he desires to represent is in the district or circle within the territorial jurisdiction of which the head quarter of the office of the Commercial Tax department in which he had held such post was located, unless a period of two years has elapsed since he ceased to hold that post : Provided that nothing in clause (ii) shall apply to such person if the representation is to be made before an officer holding a rank higher than the rank last held by such person. (6) No person who has been dismissed from Government service shall be qualified to represent any dealer under sub-section (1). (7) If any tax practitioner is found guilty of misconduct by the Commissioner in connection with any proceeding under this Act or the Central Sales Tax Act, 1956 (No.74 of 1956) or the Act repealed by this Act, the Commissioner may pass any order for awarding him punishment including disqualification from appearing as a tax practitioner in any proceeding under the aforesaid Acts, as he deems fit: Provided that no such order shall be passed unless he is given a reasonable opportunity of being heard. . (8) Any tax practitioner whose application for enrollment is rejected under sub-section (4) or who is disqualified under sub-section (7) may within sixty days of the direction relating thereto, appeal to the Appellate board . (9) If any Advocate or Chartered Accountant is found guilty of misconduct in connection with any proceeding under this Act or the Act repealed by this Act, the commissioner shall refer the matter to the authority empowered to take disciplinary action against the persons of these professions for taking appropriate action. 24 : Payment and recovery of tax, interest, penalty and other dues : - (1) The tax payable for each year shall be paid in the manner hereinafter provided at such intervals as may be prescribed. (2) Before any registered dealer furnishes any return as required by sub-section (1) of section 18, he shall pay in the prescribed manner and time, the full amount of tax payable according to such return and the amount of interest under sub-section (4) of section 18, if any payable by him. (3) If a revised return furnished by a registered dealer in accordance with the provisions of sub-section (2) of the said section shows a higher amount of tax to be due than was shown in the original return of returns, he shall pay the difference and the interest payable, if any, under sub-section (4) of section 18 in such manner and time as may be prescribed. (4) Notwithstanding anything contained in sub-section (2) or sub-section (3), where the 37 registered dealer is the Central Government or a State Government or any of their departments, the Commissioner may, subject to such terms and conditions as may be prescribed, permit such dealer to pay the amount of tax by book adjustment. 4 (4A)Notwithstanding anything contained in any other provisions of this Act but subject to such conditions as may be prescribed , a registered dealer who is eligible to avail of the facility of deferment of payment of tax under the scheme formulated in accordance with the provisions of sub-clause (e) of clause (i) of section 72, is liable to pay tax under the provisions of sub-section (2) or sub-section (3) or sub-section (5) and where a loan liability equal to the amount of tax payable by the dealer as aforesaid for the period of eligibility to avail of the said facility has been created by any agency or agencies as the State Government may, by general or special *order, specify, then such tax shall be deemed to have been paid in accordance with the provisions of sub-section (2) or sub- section (3) or sub-section (5), as the case may be. 4 (5) The amount of tax - (a)due where the returns were furnished without full payment of tax, or (b)assessed or re-assessed under sub-sections (4) and (5) of Section 20 less the sum, if any, already paid by the dealer or person in respect of the said year together with interest, if any, required to be paid and the penalty if any, directed to be paid under clause (c) of sub-section (4) of Section 18, or (c) (i) assessed under sub-section (6) of Section 20 or Section 21 together with the interest and/ or penalty, if any, directed to be paid thereunder, and (ii) the amount of penalty if any imposed or directed to be paid under any provisions of this Act not covered under 2clause (b) and sub-clause (i) of clause (c), 2 shall be paid by the dealer or person in the prescribed manner by such date as may be specified in a notice in the prescribed form to be issued by the Commissioner for this purpose and the date to be so specified shall ordinarily be not less than thirty days from the date of service of such notice. (6) Where on an admission of a first appeal or a second appeal, the appellate authority stays the recovery of any amount of tax assessed or penalty imposed and on a decision in such appeal by it the amount of tax or penalty so stayed has been maintained in whole or in part by it, the dealer shall be liable to pay interest on such amount at the rate of 21.5 per cent2 per month for the period from the date on which the recovery of such amount was stayed by the appellate authority to the date of its payment after the decision in appeal. (7) If, for any reason, a dealer or person, is unable to pay the tax assessed, interest payable or levied or the penalty imposed on him under this Act or the tax payable by him in advance of assessment within the time specified therefor in the notice of demand, he may apply to the Commissioner in writing to grant him further time for payment of such amount or to permit him to pay such amount in installments. Subject to such conditions and restriction as may be prescribed, the Commissioner may grant further time to such dealer or person or allow him to pay such amount in installments on such conditions as he may deem fit to impose. Where any extension of time or permission to pay by installments is granted, the dealer or person shall be liable to pay interest on such amount from the last date on which the amount was due to be paid in accordance with such notice of demand. The interest shall be paid at eighteen per cent per annum for the period commencing from such last date. (8) Where a dealer or person does not pay the tax assessed or the interest levied or the penalty imposed on him or any other amount due from him under this Act within the time specified therefor in the notice of demand and the dealer or person, has not obtained any order under sub-section (7) or has failed to pay the amount in accordance with the order passed by the Commissioner under sub-section (7), the Commissioner shall, after giving the dealer or person a reasonable opportunity of being heard, direct that such dealer or person 38 shall, in addition to the amount due, pay by way of penalty a sum equal to 2 per cent of such amount of tax, penalty or any other amount due, for every month, for the period for which payment has been delayed by him after the last date on which such amount was due to be paid. (9) (a) Where the State Government after such enquiry as it may deem fit, is of the opinion that genuine hardship is being caused to a dealer or person due to any proceedings initiated for recovery of any amount outstanding against him, the State Government may, subject to such restrictions and conditions as may be prescribed, grant to the dealer or person additional time to pay such amount or may grant facility to pay such amount in installments and pending the completion of such enquiry, the State Government may stay the recovery of the dues. In respect of every such facility the dealer or person shall be liable to pay interest at the rate specified in sub-section (7); Provided that no such facility shall be granted to the dealer or persons unless he has in the first instance applied in this behalf to the Commissioner under sub-section (7). (b) If the dealer or person does not comply with any order passed by the State Government, the Commissioner shall impose on him penalty under sub-section (8). (10) Where the Commissioner is of the opinion that interest payable by a dealer to whom any facility has been given under sub-section (7) or sub-section (9) has caused him hardship, the Commissioner may remit such portion of the interest payable on the dues or on the penalty imposed in accordance with the order of assessment or the order imposing penalty, as is in excess of the tax or the penalty paid or payable: Provided that the Commissioner shall not remit the interest unless the dealer has paid in full the amount of tax and/or penalty required to be paid by him. (11) (a) If any amount of tax, interest, penalty, or any other amount due under this Act or the Acts repealed by section 52 of Act No.2 of 1959 or the Act repealed by section 81 of Act No. 5 of 1995 or the Act repealed by this Act (hereinafter referred to as the repealed Act) remains unpaid on the expiry of the period prescribed for the payment thereof by or under this Act or the repealed Act or on the expiry of the period specified in any notice of demand or order issued or made under this Act or the repealed Act or the rules made thereunder, for the payment thereof, the dealer or person liable to pay such amount shall be deemed to be in default as to the whole of the amount then outstanding; (b) When a dealer or person is in default or is deemed to be in default under clause (a), the amount outstanding shall be recoverable as an arrear of land revenue according to the provisions of the Madhya Pradesh Land Revenue Code, 1959 (No. 20 of 1959) and for the purpose of effecting the recovery of such amount - 20 (i) the Appellate Board shall have and exercise all the powers and perform all the duties of the Board of Revenue under the Madhya Pradesh Land Revenue Code, 1959 (No.20 of 1959).20 (ii) the Commissioner of Commercial Tax shall have and exercise all the powers and perform all the duties of the Commissioner under the Madhya Pradesh Land Revenue Code, 1959 (No.20 of 1959); (iii) 20a Director of Commercial Tax and an Additional Commissioner of Commercial Tax shall have and exercise all the powers and perform all the duties of the Additional Commissioner under the said code; (iv) a Deputy Commissioner of Commercial Tax shall have and exercise all the powers and perform all the duties of the Collector under the said code; 39 (v) an Assistant Commissioner of Commercial Tax shall have and exercise all the powers and perform all the duties of the 20Sub Divisional Officer under the said code; (vi) a Commercial Tax Officer and Assistant Commercial Tax Officer shall have and exercise all the powers and perform all the duties of the Tahsildar under the said code. (c) Every notice issued or order passed in exercise of the powers conferred by clause (b), shall for the purpose of Sections 46, 47, 53, 54 and 66 of this Act be deemed to be a notice issued or an order passed under this Act. (d) Notwithstanding anything contained in the Madhya Pradesh Land Revenue Code, 1959 (No. 20 of 1959), where 25 percent of the sale value is deposited by the purchaser for the purchase of property sold in auction in consequence of the recovery proceedings, the purchaser may apply to the Commissioner in writing to permit him to pay the balance amount in installments. The Commissioner may allow him to pay such amount in installments with interest thereon on such conditions as he may deem fit to impose. 20 (e) Save as provided in sub-clauses (i) to (v) of clause (b), no order passed or proceeding initiated in exercise of the powers conferred by sub-clause (vi) of clause (b) shall be called into question in any Revenue Court and save as provided in sub- clauses (i) to (v) of clause (b), no appeal or application for review or revision shall lie against any such order or proceeding before any Revenue Officer.20 (12) Where in pursuance of sub-section (11) any proceedings for the recovery as an arrears of land revenue of any tax, penalty, interest or part thereof or any other amount remaining unpaid, have been commenced and the amount of tax, penalty, interest, or any other amount is subsequently modified, enhanced or reduced in consequence of any assessment made or order passed in appeal under section 46 or revision under Section 47 or rectification of mistake under Section 54, the Commissioner shall, in such manner and within such period as may be prescribed, inform accordingly the dealer or person and the authority by whom or under whose order the recovery is to be made and thereupon such proceedings may be continued as if the amount of tax, penalty, interest or any other amount as modified, enhanced or reduced, had been substituted for the tax, penalty, interest or any other amount which was to be recovered under sub-section (11). 10 (13) If any amount of tax, interest, penalty, or any other amount due under this Act or the Acts repealed by section 52 of Act No.2 of 1959 or the Act repealed by section 81 of Act No. 5 of 1995 or the Act repealed by this Act or the Central Sales Tax Act, 1956 ( No.74 of 1956) is determined to be irrecoverable and pertains to a period prior to five years preceding the year in which the amount is to be write off, they may be write off in accordance with the procedure prescribed by the state Government for this purpose, and after such write off the amount shall be deemed to have been recovered and shall no longer remain outstanding against such dealer or person. 10 24-A. Commercial tax Settlement Authority. (1) The State Government may constitute an Authority to be called the Commercial tax Settlement Authority for the settlement of cases under Madhya Pradesh General Sales Tax Act, 1958 (No.2 of 1959) (repealed Act), Madhya Pradesh Commercial Tax Act, 1994 (No.5 of 1995) (Repealed Act) Madhya Pradesh Vat Act, 2002 (No.20 of 2002), Central Sales Tax Act, 1956 (No. 74 of 1956) and Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (No.52 of 1976). (2) The Minister in-charge of the Commercial Tax Department shall be the Chairman of 40 the Settlement Authority . (3) The Settlement Authority shall include one representative each from the Finance, Law and Legislative Affairs and Commercial Tax Department not below the rank of the Secretary as member. (4) The Commissioner, Commercial Tax shall be the member secretary of the Settlement Authority. 24-B. Application for settlement of cases. (1) Notwithstanding anything to the contrary contained in this Act, if any amount of tax, interest and penalty under the Madhya Pradesh General Sales Tax Act, 1958 (No.2 of 1959) (repealed Act) the Madhya Pradesh Commercial Tax Act, 1994 (No.5 of 1995) (repealed Act) the Madhya Pradesh Vat Act, 2002 (No.20 of 2002), the Central Sales Tax Act, 1956 (No. 74 of 1956) and the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (No.52 of 1976),- (i) is disputed by a dealer and the dispute is pending before the High Court for adjudication ; (ii) hardship is being caused to a dealer due to any order passed under any of the provisions of the Acts, the dealer may apply for the settlement of the amount of tax, interest and penalty to the Settlement Authority. (2) An application for the settlement of the amount shall be submitted in the form and the manner as may be prescribed. (3) The dealer shall pay,- (i) the undisputed amount of tax in full and twenty five percent of the disputed amount of tax, in case of application under clause (i) of sub-section (1) ; (ii) the full amount of tax, in case of application under clause (ii) of sub-section (1) , before submission of the application. 24-C. Procedure on receipt of an application (1) The Settlement Authority shall pass an appropriate order, including waiver of the whole or part of the interest and the penalty levied and included in the amount payable by the dealer, on every application for settlement after affording an opportunity of hearing to the dealer. (2) The Settlement Authority shall consider the application and the submissions, if any, made before them by the dealer and thereafter decide the amount to be deposited by the applicant. (3) The dealer shall submit an application for withdrawal of the case pending before the High Court and a copy thereof shall be submitted to the Settlement Authority before the issue of order of settlement. (4) If the amount required to be deposited under sub section (2), has already been deposited by the dealer, the Settlement Authority shall pass an order of settlement. If the amount deposited is less than the amount decided by the Settlement Authority, the balance amount shall be deposited by the dealer within the time as may be decided by the Settlement Authority. On receipt of proof of payment of the balance amount, the Settlement Authority shall pass an order of settlement. (5) The Settlement Authority shall pass a settlement order on every application indicating the balance amount of interest and penalty waived on settlement. (6) The Settlement Authority may remand the case wherever it thinks fit. 41 (7) An order of settlement shall not form the basis for any claim by the applicant in cases other than the case in which such settlement order has been passed. (8) No penal action against the applicant under any Act administered by the department shall be initiated after an order of settlement has been passed under this section. The dealer also shall not be entitled to refund of any amount or any other benefit under any Act afterwards. [w e f 10.8.10] 25 : Payment of tax in advance of assessment on failure to furnish returns (1) Where any registered dealer fails to furnish any return for any period as required by sub- section (1) of Section 18 and fails to pay the tax payable for such period, (a) the Commissioner may, if the tax payable by such dealer in a year does not ordinarily exceed ten thousand rupees; and (b) the Commissioner shall, if the tax payable by such dealer in a year exceeds rupees ten thousand, require such dealer to pay such tax, in the manner laid down in the following sub-sections, in advance of an assessment which may be made under Section 20. (2) The amount of tax payable in advance under sub-section (1) shall be computed by the Commissioner as under:- (a) Where a registered dealer has been assessed to tax for any previous year or part thereof, the tax payable in advance shall be an amount which bears to the amount of tax assessed in respect of the latest previous year or part thereof the same proportion as the period for which the tax payable in advance bears to the period for which the latest assessment was made, (b) Where a registered dealer has not been assessed to tax for any previous year or part thereof but has furnished the return as required by sub-section (1) of Section 18 for any period, the tax payable in advance shall be an amount which bears to the maximum amount of tax payable according to any such return the same proportion as the period for which the tax payable in advance bears to the period for which such maximum amount of tax was payable according to such return. (c) Where a registered dealer has not been assessed to tax under this Act for any previous year and no returns have been furnished by him for such year or where a registered dealer has no previous year, the tax payable in advance shall be such amount as the Commissioner may determine to the best of his judgement. (3) After the expiry of the date by which the return has become due, the Commissioner may issue a notice in the prescribed form to a registered dealer who has failed to furnish such return requiring him to pay in the prescribed manner and within the prescribed time the tax payable in advance computed in accordance with sub-section (2). (4) If any registered dealer who is required under sub-section (3) to pay the tax in advance furnishes the return under sub-section (1) of Section 18 and pays the amount of tax in accordance with the provisions of sub-section (2) of Section 24 on or before the date specified in the notice issued under sub-section (3) or satisfies the Commissioner that the return had already been furnished by him by the date by which it was due, the said notice shall stand cancelled. (5) The tax payable in advance or any part thereof left unpaid within the time specified in the notice issued under sub-section (3) shall be recoverable as an arrear of land revenue for 42 which purpose the provisions of sub-sections 2 (11) and (12) 2 of Section 24 shall mutatis mutandis apply. (6) The tax paid under this Section shall be adjusted towards the tax assessed or re- assessed under Section 20. 26 : Deduction and payment of tax in certain cases (1) Any person responsible for making payment of any sum to any dealer as a consideration for the sale or supply of any goods in pursuance of a contract between such dealer and the Central Government or a State Government (hereinafter referred to in this Section as the purchaser), shall before crediting such sum to the account of the dealer or before payment thereof in cash or by issue of a cheque or draft or by any other mode, deduct an amount equal to the amount payable by the purchaser to the dealer by way of tax, 4whether or not such amount as is shown by the dealer separately in his bill4, where the total amount of the bill exceeds rupees five thousand and shall pay it to the State Government in such manner as may be prescribed. 3/4 (2) Notwithstanding anything contained in any other provision of this Act, any person letting out a works contract of value exceeding three lac rupees to a contractor involving sale of any goods in the course of execution thereof by the contractor shall before making the payment of any amount towards the value of such contract to him, deduct at the rate of two percent or the prescribed rate for lump sum, in respect of a contractor who has opted for composition under section 11A , an amount towards the tax payable by the contractor under this Act : 3/4 [ Provided that if the value of labour involved in the contract is more than fifty percent of the contract, the deduction towards the tax payable shall be made at the rate of one percent. 3/4 -- 1.4.2006 to 31.3.2007 ] 6 Provided that if the value of labour involved in the contract is more than fifty percent of the contract value and the contractor has not opted for composition under section 11-A, the deduction towards the tax payable shall be made at the rate of one percent. Provided further that no deduction shall be made in respect of any sale or purchase taking place outside the State of Madhya Pradesh or in the course of inter-State trade or commerce or in the course of import of goods into the territory of India. Provided also that no deduction shall be made from any payment made to any sub- contractor by a contractor where the contractor has opted for composition under section 11- A. 6 (3) On deduction of the amount under sub-section (1), or sub-section (2) the person making such deduction shall issue to the dealer or the contractor, as the case may be, a certificate therefor 6 in the prescribed form which is obtained in the prescribed manner6 and shall deposit such amount in to the Government Treasury in such manner and within such period as may be prescribed. (4) Any person making the payment under sub-section (1) or sub-section (2) shall be deemed to have made the payment on the authority and on behalf of the dealer or the contractor and the receipt for such payment shall constitute a good and sufficient discharge of the liability of the purchaser to the dealer or the contractor to the extent of the amount specified in the receipt. 43 (5) Where any payment under sub-section (1) or sub-section (2) is made by a purchaser or the person letting out the contract, on behalf of the dealer or the contractor such payment shall constitute a good and sufficient discharge of the liability of the dealer or the contractor to pay tax in respect of such transaction and the amount so paid shall be adjusted by him in such manner as may be prescribed. (6) Where a person contravenes the provisions of sub-section (1), sub-section (2), or sub- section (3) the Commissioner may impose upon such person by way of penalty an amount which shall be 2 percent per month of the amount required to be deducted under sub- section (1) or sub-section (2). subject to a maximum of 25 percent of such amount. (7) Any sum which a person is required to deduct under sub-section (1) or sub-section (2) or the penalty imposed under sub-section (6) if it remains unpaid, be recoverable as an arrear of land revenue. (8) Every person making a deduction under sub-section (1) or sub section (2) shall furnish a statement in such form, to such authority, in such manner and within such time as may be prescribed. Explanation – For the purpose of sub-section (2), "person" means – (i) Department of the Central or the State Government, (ii) Public Sector Undertaking, (iii)Municipality and Municipal Corporation, (iv) Authority constituted under any law for the time being in force, (v) Public Limited company. 10 26-A. Deduction of tax at source in respect of certain goods (1) Notwithstanding anything contained in any other provision of this Act, every registered dealer (the purchaser) who purchases such goods as may be notified* by the State Government for sale or consumption from another registered dealer, shall deduct input tax from the amount payable by him to the selling registered dealer (the seller) for such purchase. (2) On deduction of the amount under sub-section (1), the purchaser shall issue a certificate of deduction of tax to the seller in such form and manner as may be prescribed. (3) The certificate of deduction of tax shall constitute a good and sufficient discharge of the liability of the seller to pay tax in respect of such transaction and the amount so deducted shall be adjusted by him in such manner as may be prescribed and this certificate shall not be used for discharge of the liability of any other transaction. (4) No input tax rebate shall be claimed or be allowed in respect of the goods notified under sub-section (1). (5) In the event of disposal of,- (a) (i) goods purchased; or (ii) the goods specified in Schedule II, manufactured out of the goods purchased, 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; or 44 (b) the goods specified in Schedule I, manufactured out of the goods purchased, otherwise than by way of sale in the course of export out of the territory of India, the purchaser shall deposit the amount at the rate of 4 percent of the purchase price, net of input tax, of the goods purchased. (6) The provisions of Sections 18, 20, 21, 24, 25 and 39 shall mutatis mutandis apply to the amount payable under sub-section (5). (7) The purchaser shall retain as refund the amount deducted under sub-section (1) which is equal to the amount of input tax rebate notionally admissible under section 14 on such purchases. 10 6 27.saving for person responsible for deduction of tax at source Notwithstanding anything contained in Section 26 no deduction or deduction at a lower rate at source towards tax payable shall be made under the provisions of the said section from any consideration payable to a dealer or person, if such dealer or person furnishes to the person responsible for paying any amount in respect of the sale or supply or contract referred to in the said section, a certificate in writing in such form issued in such manner and by such authority as may be prescribed. 6 28: Special mode of recovery (1) Notwithstanding anything contained in Section 24 or any law or contract to the contrary, the Commissioner or any officer other than the officer appointed under clause (g) of sub- section (1) of section 3, may at any time or from time to time, by a notice in the prescribed form a copy of which shall be sent to the dealer or person, at his last address known to the officer issuing the notice, require, - (a) any person from whom any amount is due or may become due to a dealer or person who has failed to comply with a notice of demand for any amount due under this Act; (b) any person who holds or may subsequently hold any money for or on account of such dealer or person, to pay to the Government under this sub-section, either forthwith or upon the money becoming due or being held, or within the time specified in the notice (not being before the money becomes due or is held), so much of the money, as is equal to the amount due from the dealer or person in respect of the arrears of the tax, interest and penalty under this Act or the whole of the money when it is less than that amount. Explanation - For the purpose of this sub-section the amount due to a dealer or person or money held for or on account of a dealer or person, by any person shall be computed after taking into account such claims, if any, as may have fallen due for payment by such dealer or person to such person, as may be lawfully subsisting. (2) The Officer issuing a notice under sub-section (1) may at any time or from time to time amend or revoke any such notice or extend the time for making any payment in pursuance thereof . (3) Any person making any payment in compliance with a notice issued under sub-section (1) shall be deemed to have made the payment under the authority of the dealer or person and the treasury receipt for such payment shall constitute a good and sufficient discharge of the liability of such a person to the dealer to the extent of the amount specified in the receipt. 45 (4) Any person discharging any liability to the dealer or person after service on him of the notice issued under sub-section (1) shall be personally liable to the State Government to the extent of the liability discharged or to the extent of the liability of the dealer or person for tax or penalty or both, whichever is less. (5) Where a person on whom a notice is served under sub-section (1) proves to the satisfaction of the officer who issued the notice that the sum demanded or any part thereof was not due to the dealer or person or that he did not hold any money for or on account of the dealer or person, at the time the notice was served on him, then nothing contained in this Section shall be deemed to require such person to pay to the Government any such money or part thereof, as the case may be. (6) Any amount of money which a person is required to pay under sub-section (1) or for which he is personally liable to the State Government under sub-section (4) shall, if it remains unpaid, be recoverable as an arrear of land revenue. (7) The provisions of this Section shall be without prejudice to any action that may be taken for recovery of the arrears of tax, interest and penalty, if any, due from the dealer or person. 29 Payment of tax in case of transfer or discontinuance of business and liability of the company in case of 6amalgamation or de- merger 6 (1) When the ownership of the business of a dealer liable to pay tax under this Act is entirely transferred, the transferor and the transferee shall jointly and severally be liable to pay the tax together with penalty, if any, or interest or penalty payable in respect of such business for any year or relatable to a part of any year and remaining unpaid at the time of the transfer and the transferee shall also be liable to pay the tax on the sales or purchases of goods effected by him with effect from the date of such transfer and shall within thirty days of the transfer apply for registration unless he already holds a registration certificate. (2) When a dealer is a firm or association of persons or a joint Hindu Family and such firm, association or family has discontinued business - (a) the tax payable under this Act by such firm, association or family for the period upto the date of such discontinuance may be assessed and determined as if no such discontinuance had taken place; and (b) every person who was at the time of such discontinuance a partner of such firm or a member of such association or family shall notwithstanding such discontinuance, be liable severally and jointly for the payment of the tax payable by such firm, association or family, whether such assessment is made prior to or after such discontinuance and, subject as aforesaid the provisions of this Act shall apply as if every such person or partner were himself a dealer : Provided that when it is found that a change has occurred in the constitution of the firm or association or that such firm or association has transferred its business and the tax payable by a partner or member as aforesaid cannot be recovered from him, it may be recovered from the firm or association as reconstituted or from the transferee: Explanation - The dissolution or reconstitution of a firm or association of persons or partition of Joint Hindu family shall be deemed to be discontinuance of business within the meaning of this sub-section. (3) The provisions of this Section shall mutatis mutandis apply to any arrears of tax payable under the Act repealed by Section 81 of Act No. 5 of 1995 or the Act repealed by this Act and due for any year or relatable to a part of any year prior to such transfer of business, discontinuance or dissolution of the partnership or the partition of undivided Hindu family, as the case may be. 46 (4) When two or more companies are amalgamated by the order of a court or of the Central Government and the order is to take effect from a date earlier to the date of the order and any of such companies have sold or purchased any goods to or from each other during the period commencing on the date from which the order to take effect and ending on the date of the order, then such transactions of sale and purchase will be included in the turnover of the sales or purchases of the respective companies and will be assessed to tax accordingly. (5) Notwithstanding anything contained in the order specified in sub-section (4), for all of the purposes of this Act, the said two or more companies will be treated as distinct companies and will be treated as such for the periods upto the date of the said order and the registration certificates of the said companies will be cancelled, where necessary, with effect from the date of the said order. 6 (5A) (a) When any company is de-merged by the order of a court or of the Central Government and the order 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 or from each other during the period commencing on the date from which the order is to take effect and ending on the date of the order, and will be assessed to tax accordingly. (b) Notwithstanding anything contained in the order specified in clause (a), for all of the purposes of this Act, the said two or more companies will be treated as single company for the periods upto the date of the said order and the registration certificate of the de-merged company will be cancelled, where necessary, with effect from the date of the said order and the said two or more companies shall be granted registration certificates, where necessary, from the date of the said order. (5B) Notwithstanding anything contained in section 14, when the ownership of the business of a registered dealer is entirely transferred or when two or more companies are amalgamated or a company is de-merged, by the order of a court or of the Central Government, then the transferee, the amalgamated company or the de-merged companies shall be entitled to take credit of the input tax rebate, which remains unadjusted on the date of said transfer or the order of amalgamation or de-merger, as the case may be. 6 (6) Words and expressions used in sub-sections 6 (4), (5), (5A) and (5B) 6 but not defined, shall have the same meanings as assigned to them in the Companies Act, 1956 (No. 1 of 1956). 30 : Liability of firms 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; Provided that where any such partner retires from the firm, he shall also be liable to pay the tax, interest and the penalty, if any remaining unpaid at the time of his retirement and any tax due upto the date of retirement though un-assessed on that date. 31 : Transfers to defraud revenue void Where during the pendency of any proceeding under this Act or under the Act repealed by section 81 of Act No. 5 of 1995 or the Act repealed by this Act or under the Madhya Pradesh Land Revenue Code, 1959 (No.20 of 1959) any dealer creates a charge on or parts with the 47 possession by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever of any of his assets in favour of any other person with the intention to defraud revenue, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the dealer as a result of the completion of such proceeding under this Act or under the Act repealed by section 81 of Act No. 5 of 1995 or the Act repealed by this Act or in pursuance of such proceeding under the Madhya Pradesh Land Revenue Code, 1959 (No.20 of 1959) : 32 : Assessment/re-assessment of legal representatives and assessment in special cases. (1) Where a dealer dies, his executor, administrator, or other legal representative shall be deemed to be a dealer for the purposes of this Act and the provisions of this Act shall apply to him in respect of the business of the said deceased dealer : Provided that in respect of any tax assessed/re-assessed or any penalty imposed or any interest payable by the deceased dealer or any tax, or penalty or interest, which would have been payable by him under this Act, if he had not died, the executor, administrator or other legal representative shall be liable to the extent of the assets of the deceased in his hands. (2) In the case of any guardian, trustee or agent of any minor or other incapacitated person carrying on business on behalf of and for the benefit of such minor or other incapacitated person, the tax shall be levied upon and recoverable from such guardian, trustee or agent, as the case may be, in the like manner and to the same extent as it would be leviable on, and recoverable from, any such minor or other incapacitated person, if he were of full age and sound mind and if he were conducting the business himself and all the provisions of this Act and rules made thereunder shall apply accordingly. 33 : Tax to be first charge 10 (1) Notwithstanding anything to the contrary, contained in any law for the time being in force and subject to the provisions of section 530 of the Companies Act, 1956 (No.1 of 1956), any amount of tax and/ or penalty or interest, if any, payable by a dealer or other person under this Act shall be first charge on the property of the dealer or such person. 10 (2) Notwithstanding anything contained in this Act, where a dealer or person is in default or is deemed to be in default under clause (a) of sub-section (11) of section 24 and whose property is being sold by a bank or financial institution for recovery of its loan, the Commissioner may forgo the right of first charge as mentioned in sub- section (1) against the property sold on the following conditions:- (a) if the arrears of tax, penalty, interest or part thereof or any other amounts is up to 25 percent of the total auction value, the arrears shall be paid in full by the bank or financial institution ; (b) if the arrears of tax, penalty, interest or part thereof or any other amount is more than 25 percent of the total auction value, the 25 percent of the total auction value and the amount in the same proportion of the remaining auction value as the remaining arrears bear to the total dues of the bank or financial institution, shall be paid by the bank or financial institution. 10 234 : Omitted2 48 35 : Collection of tax by dealers (1) No person other than,- (i) a registered dealer, or (ii) a person who is deemed to be a registered dealer under sub-section (9), or (iii) a person required to deduct any amount by way of tax under the provisions of the Act, shall collect any amount by way of tax under this Act. No collection of tax shall be made by the person specified in (i) to (iii) above except in accordance with the provisions of this Act and the rules made there under. (2) Any amount collected by any person in contravention of the provisions of sub-section (1) or any amount collected by any person by way of tax or in any other manner not payable under any provisions of this Act and not returned by him to the person from whom it was collected shall be liable to forfeiture to the State Government. (3) If the Commissioner, in the course of any proceedings under this Act or otherwise, has reason to believe that any amount is liable for forfeiture under sub-section (2), he shall serve, on the person who has collected such amount, a notice in the prescribed form requiring him to show cause why the said amount should not be forfeited to the State Government and on receipt of the reply, if any, thereto, the Commissioner shall make enquiry and shall make such order including an order of forfeiture as he thinks fit, after giving such person a reasonable opportunity of being heard. (4) Where an order of forfeiture under sub-section (3) has been made, the person making the unauthorised collection shall forthwith pay the amount so forfeited to the State Government, if it has not already been paid and on his failure to do so, such amount shall be recoverable from him as if it were a tax due from him. (5) Where an order for forfeiture is passed, the Commissioner shall publish or cause to be published in the prescribed manner a notice therefor for information of the persons from whom the amount so forfeited had been collected giving such details as may be prescribed. (6) On the publication of the notice under sub-section (5) a refund of such amount or part thereof may be claimed from the State Government within one year from the date of publication of the said notice by the person from whom it was unauthorisedly realised by way of tax and for this purpose the person claiming the refund shall make an application in the prescribed form. (7) On receipt of an application under sub-section (6) the Commissioner shall hold such enquiry as he deems fit and if he is satisfied that the claim is valid and admissible and that the amount so claimed as refund was actually paid to the State Government and no refund or remission in respect of that amount was granted, the Commissioner shall refund such amount or any part thereof to the person concerned. (8) Notwithstanding anything contained in this Act or in any other law for the time being in force where any amount collected by any person is forfeited to the State Government under this Section, such forfeiture shall, if the amount forfeited has been paid to the State Government, discharge him of the liability to refund the amount to the person from whom it was so collected. (9) A dealer specified in sub-section (11) of Section 17 shall be deemed to be a registered dealer for the purpose of sub-section.(1). 49 36 : Sales not liable to tax (1) Notwithstanding anything contained in this Act, a tax on the sale or purchase of goods shall not be imposed under this Act - (i) where such sale or purchase takes place outside the State of Madhya Pradesh ; or (ii) where such sale or purchase takes place in the course of inter-State trade or commerce; or 3/4 (iii) where such sale or purchase takes place in the course of import of the goods into, or export of the goods out of the territories of India, or (iv) where such sale is made to a unit located in a Special Economic Zone notified by the Central Government under the provisions of the Special Economic Zones Act, 2005 (Central Act No. 28 of 2005), 3/4 (2) For the purpose of this Section, whether a sale or purchase takes place, - (i) outside the State of Madhya Pradesh; or (ii) in the course of inter-State trade or commerce; or (iii) in the course of the import of goods into the territory of India or the export of goods out of such territory, shall be determined in accordance with the principles specified in Section 3, 4 and 5 of the Central Sales Tax Act, 1956 (No.74 of 1956). CHAPTER VII - Refund 37 : Refund (1) If the Commissioner is satisfied that the tax or penalty or both or interest paid by or on behalf of a dealer for any year exceeds the amount of the tax to which he has been assessed or the penalty imposed or the interest payable under this Act for that year or that a registered dealer 2or person2 other than a registered dealer is entitled to the refund of rebate under of section 14, he shall, in the prescribed manner, refund any amount found to have been paid in excess in cash or by adjustment of such excess towards the amount of tax due in respect of any other year from him. 3/4 (1A) Notwithstanding anything contained in sub-section (1), if the refund is due to input tax rebate pertaining to sales of canteen stores, the refund shall be adjusted towards any other tax liability of the canteen stores department and on an application by the canteen stores department, the balance of refund may be adjusted towards the tax liability of any other registered dealer. 3/4 (2) If the Commissioner is satisfied that due to an error committed by the dealer while crediting any amount payable under this Act or the Act repealed by this Act or the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (No.52 of 1976) or the Central Sales Tax Act, 1956 (No.74 of 1956), into Government treasury the amount so paid cannot be accounted for the purpose for which it is credited, he shall subject to the provisions of sub-section (4) refund that amount in the manner prescribed either in cash or by adjustment towards the amount of tax due in respect of any other year from him. (3) If the appellate authority or the Commissioner is satisfied to the like effect it shall cause refund to be made of any amount found to have been wrongly paid or paid in excess. (4) Notwithstanding anything contained in sub-section (1) or sub-section (2) or sub-section (3) the authority empowered to grant refund shall apply the refundable amount in respect of any year towards the recovery of any tax, penalty, interest or part thereof due under this Act or under the Act repealed by this Act or under the Central Sales Tax Act, 1956 (No.74 of 50 1956) or under the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (No.52 of 1976) and shall then refund the balance remaining, if any. (5) Where a refund of any amount under sub-section (1) or sub-section (3) is not made or is not applied for the purposes mentioned in sub-section (4) within sixty days from the date of passing of the order for refund, the dealer shall be entitled and be paid interest at the rate of one per cent per month on the amount of refund for the period commencing from the date of expiry of the said period of sixty days and ending with the day on which the refund is made to him under sub-section (1) or sub-section (3) or is applied for the purposes mentioned in sub-section (4), as the case may be. Explanation - (i) Under this sub-section where the period for which interest is payable covers a period less than a month, the interest payable in respect of such period shall be computed proportionately. (ii) For the purpose of this sub-section “month” shall mean thirty days. 38 : Power to withhold refund in certain cases Where an order giving rise to a refund is passed and the Commissioner is satisfied that the grant of the refund is likely to be prejudicial to the interest of revenue and action under sub- section (2) or sub-section (5) of Section 47 is required to be initiated or an application to the Appellate Board to enhance the tax levied or penalty imposed is required to be made or the said order is the subject matter of any proceeding under Section 53, the Commissioner may withhold the refund till such time as the aforesaid proceedings are finally decided : Provided that the dealer shall be paid interest under sub-section (5) of Section 37 on the amount of refund ultimately determined to be due as a result of the aforesaid proceedings for the period commencing after the expiry of sixty days from the date of receipt of the order 23.giving rise to the refund. CHAPTER VIII - Accounts and Issue of Bills, Invoice or cash memoranda 39 : Accounts (1) Every registered dealer and every dealer liable to pay tax under this Act shall maintain correct account of his purchases, sales and stocks showing value, of different kinds of goods subject to different rates of tax under this Act. (2) 2Every dealer whose turnover in a year exceeds rupees sixty lacs- w e f 10.8.10 [forty lacs- upto 9.8.10] shall get his account audited by a Chartered Accountant and furnish the report of such audit in such manner and within such time as may be prescribed. 2 3/4Provided that a dealer who is an industrial unit having annual turnover of upto ten crore rupees may get his accounts audited by a member of Institute of Cost and works Accountants of India. 3/4 (3) If the Commissioner considers that the accounts maintained by any dealer or any class of dealers do not sufficiently enable him to verify the returns referred to in sub-section (1) of Section 18 or the assessment cannot be made on the basis thereof, he may by an order, require any dealer or by notification any class of dealers, to keep such accounts including records of manufacture, sales, purchases or transfers in such form and in such manner as he may, subject to rules made under this Act, direct. (4) If the Commissioner considers that any class of dealers are not in a position to maintain accounts in accordance with the provisions of sub-section (1), he may, for reasons to be recorded in writing, exempt such class of dealers from the operation of the provisions of the said sub-section. 20(5) If a registered dealer fails to furnish the report as required under sub-section 23. (2) in respect of a year within the time prescribed, the commissioner may, after giving such dealer 51 an opportunity of being heard, direct him to pay by way of penalty a sum equal to 0.1 percent of the turnover in the year or rupees ten thousand, whichever is less.20 40 : Dealers to issue bills, invoices or cash memoranda (1) Every registered dealer, for each sale made by him shall issue to the purchaser, a bill, invoice or a cash memorandum including machine generated bill, invoice or a cash memorandum signed and dated by such dealer containing prescribed particulars including the amount of tax collected. Every such dealer shall also maintain a counterfoil or duplicate of each bill, invoice or cash memorandum issued by him with signature, date and all other aforesaid particulars and shall preserve it for a period of not less than five years from such date or till the completion of assessment whichever is earlier; Provided that a bill, invoice or cash memorandum may not be issued where sale of any goods of value not exceeding rupees one hundred is made to any person other than a registered dealer . 10 (1A) The bill, invoice or cash memorandum pertaining to the goods notified by the State Government, shall be authenticated in the prescribed manner. 10 (2) If a registered dealer contravenes the provisions of sub-section (1), the commissioner may, after giving such dealer an opportunity of being heard, direct him to pay by way of penalty a sum of rupees one hundred for each sale in respect of which such contravention has taken place subject to a maximum of rupees five thousand. CHAPTER - IX Certain Powers of Commissioner and delegation by Commissioner of his powers. 241 : Delegation of Commissioner’s powers and duties Subject to the provisions of this Act and to such restrictions and conditions as may be prescribed, the Commissioner may, by order, in writing , delegate any of his powers and duties under this Act except those under sub-section (2) of section 64 to any person appointed under section 3 to assist him : Provided that powers under section 38 and 47 shall not be delegated to an officer below the rank of a Deputy Commissioner of Commercial Tax. 2 42 : Transfer of proceedings (1) The Commissioner may transfer any proceeding or class of proceedings under any provision of this Act from himself to any person appointed under Section 3 to assist him and he may likewise transfer any such proceeding (including the proceeding already transferred under this sub-section) from one such person appointed under Section 3 to assist him to another such person or to himself. Intimation about the transfer of any such proceeding or proceedings shall be sent to the dealer.