Amendment status not verified — confirm the current text below against the official source.
(1) Where an offence comrnftted by a person under this Act is a company, even/ was responsible to, the company for the Off, eces by Ca:'rpwies conduct of business of the company, as weil as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or Relevancy of statements under certain circumstances. 513 connivance of, or is attributable to any negligence on the part of, any director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. (3) Where an offence under this Act has been committed by a taxable person being a partnership firm or a Limited Liability Partnership or a Hindu Undivided Family or a trust, the partner or karta or managing trustee shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly and the provisions of sub-section (2) shall mutatis mutandis apply to such persons. (4) Nothing contained in this section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. Explanation For the purposes of this section,- "company" means a body corporate and includes a firm or other association of individuals; and (ii) "director' in relation to a firm, means a partner in the firm. 138.(1) Any offence under this Act may, either before or after the institution of prosecution, be compounded by the Compounding 2011974 Commissioner on payment, by the person accused of the of offences. offence, to the Central Government or the State Government, as the case may be, of such compounding amount in such manner as maybe prescribed: Provided that nothing contained in this section shall apply to- (a) a person who has been allowed to compound once in respect of any of the offences specified in clauses (a) to (f) of sub-section (1) of section 132 and the offences specified in clause (a) to (f) of the said sub- section; 514 (b) a person who has been allowed to compound once in respect of any offence, other than those in clause (a), under this Act or under the provisions of any State Goods and Services Tax Actor the Central Goods and Services Tax Act or the Union Territory Goods and Services Tax Act or the Integrated Goods and Services Tax Act in respect of supplies of value exceedingone crore rupees; (c) a person who has been accused of committing an offence under this Act which is also an offence under any other law for the time being in force; (d) a person who has been convicted for an offence under this Act by a court; (e) a person who has been accused of confirming an offence specified in clause (g) or clause (j) or clause (k) of sub-section (1) of section 132; and (f) any other class of persons or offences as may be prescribed: Provided further that any compounding allowed under the provisions of this section shall not affect the proceedings, if any, instituted under any other law; Provided also that compounding shall be allowed only after making payment of tax, interest and penalty involved in such offences. (2) The amount for compounding of offences under this section shall be such as may prescribed, subject to the minimum amount not being less than ten thousand rupees or fifty per cent, of the tax involved, whichever is higher, and the maximum amount not being less than thirty thousand rupees or one hundred and fifty per cent, of the tax whichever is higher. (3) On payment of such compounding amount as may be determined by the Commissioner, no further proceedings shall be initiated under this Act against the accused person in respect of the same offence and any criminal proceedings, if already initiated in respect of the said offence, shall stand abated. 5.1.5 140.(1) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit Transitional ledger, credit of the amount of value Added Tax, if any, arrangements carried forward in the return relating to the period ending for input tax with the day immediately proceedings the appointed day, credit. furnished by him under the existing law in such manner as maybe prescribed: CHAPTER XX TRANSITIONAL PROVISIONS 139.(1) On and from the appointed day, every person registered under any of the existing laws and having a valid Permanent Account Number shall be issued a certificate of registration on Migration provisional basis, Subject to such conditions and in such of existing taxpayers. form and manner as may be prescribed, which unless replaced by a final certificate of registration under sub-section (2), shall be liable to be cancelled if the conditions so prescribed are not complied with. (2) The final certificate of registration shall be granted in such form and manner and subject to such conditions as may be prescribed. (3) The certificate of registration issued to a person under sub-section (1) shall be deemed to have not been issued if the said registration is cancelled in pursuance of an application filed by such person that he was not liable to registration under section 22 or section 24. Provided that the registered person shall not be allowed to take credit in the following circumstances, namely:- (i) where the said amount of credit is not admissible as input tax credit underthis Act; or (ii) Where he has not furnished all the returns required under the existing law forthe period of six months immediately precedingthe appointed date: 516 74 of 1956 Provided furt her that so much of the said credit as is attributable to any claim related to section 3, sub-section (3) of section 5, Section 6, section 6A or sub-section (8) of section 8 of the Central Sales Tax Act, 1956 which is not substantiated in the manner, and within the period, prescribed in rule 12 of the CentralSales Tax (Registration and Turnover) Rules,1 957 shall not be eligible to be credited to the electronic credit ledger: Provided also that an amount equivalent to the credit specified in the second proviso shall be refunded under the existing law when the said claims are substantiated in the manner prescribed in rule 12 of the CentralSale Tax (Registration and Turnover) Rules, 1957. (2)) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, credit of the amount of value Added Tax, if any, carried forward in the return relating to the period ending with the day immediately Proceedings the appointed day, furnished by him under the existing law in such manner as may be prescribed: Provided that the registered person shall not be allowed to take credit Unless the said credit is not admissible as input tax credit under the existing law ans is also admissible as input tax credit under this Act; or Explanation- For the purposes of this section, the expression "unveiled input tax credit" means the amount that remains after subtracting the amount of inputtax credit already availed in respect of capital goods by the taxable person under the existing law from the aggregate amount of input tax credit to which the said person was entitled in respect of the said capital goods under the existing law. (3) A registered person, who was not liable to be registered under the existing law or who was engaged in the sale of exempted goods or tax free goods, by whatever name called, or goods which have suffered tax at the first point of their sale in the State and the subsequent sales of which are not subject to tax in the State under the existing law but which are not liable to tax under this Act or where the person was 517 entitled to the credit to take, in his electronic credit ledger, credit of the value added tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions namely: (i) such inputs or goods are used or intended to be used for makingtaxable supplies underthis Act; (ii) the said registered person is eligible for input tax credit on such inputs under this Act; (iii) the said registered person is in possession of invoice or other prescribed documents evidencing payment of tax under the existing law in respect of such inputs; and (iv) such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day: Provided that where a registered person other than a manufacturer or a supplier of services, is not in possession of an invoice or any other documents evidencing payments of tax in respect of inputs, then, such registered person shall, subject to such conditions, limitations and safeguards as may be prescribed, including that the said taxable person shall pass on the benefit of such credit by way of reduced prices to the recipient, be allowed to take credit at such rate and in such manner as may be prescribed. (4) A registered person, who Is engaged in the sale of taxable goods as well as exempted goods or tax free goods, by whatever name called, under the existing law but which are liable to tax under this Act, shall be entitled to take, in his electronic credit ledger,- (a) the amount of credit of the value added tax, if any, carried forward in a return furnished under the existing law by him in accordance with the provisions of sub-section (1); and (b) the amount of credit of the value added tax, if any, in respect of inputs 518 held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day, relating to such exempted goods or tax free goods, by whatever name called, in accordance with the provisions of sub-section (3). (5) A registered person shall be entitled to take, in his electronic credit ledger, credit of value added tax, if any, in respect of inputs received on or after the appointed day but the tax in respect of which has been paid by the supplier under the existing law, subject to the condition that the invoice or any other tax paying document of the same was recorded in the books of account of such person within a period of thirty days from the appointed day; Provided that the period of thirty days may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceedingthirty days: Provided further that the said registered person shall furnish a statement, in such manner as may be prescribed, in respect of credit that has been taken under this sub-section. (6) A registered person, who was either payingtax at a fixed rate or paying a fixed amount in lieu of the tax payable under the existing law shall be entitled to take, in his electronic credit ledger, credit of value added tax in respect of inputs held in stock and inputs contained day subject to the following conditions, namely:- (i) such inputs or goods are used or intended to be used for making taxable supplies underthis Act; (ii) the said registered person is not payingtax under section 10; (iii) the said registered person is eligible for input tax credit on such inputs under this Act; (iv) the said registered person is in possession of invoice or other prescribed documents evidencing payment of tax under the existing law in respect of inputs; and 519 (v) such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day. (7) The amount of credit under sub-sections (3), (4) and (6) shall be calculated in such manner as maybe prescribed. 141.(l) Where any inputs received at a place of business had been despatched as such or despatched after being Transitional provisions partially processed to a job worker for further relating to processing, testing, repair, reconditioning or any other Job work purpose in accordance with the provisions of existing law prior to the appointed day and such inputs are returned to the said place on or after the appointed day, no tax shall be payable if such inputs, after completion of the job work or otherwise, are returned to the said place w iin six months from the appointed day: Provided that the period of six months may, on sufficient Cause being shown, be extended by the Commissioner for a further period not exceeding two n onths: Provided further that if such inputs are not returned within the Period specified in this sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub-section (8) of section 142. (2) Where any semi-finished goods had been despatched from the place of business to any other premises for carrying out certain manufacturing processes in accordance with theprovisions of existing law prior to the appointed day and such goods (hereafter in this sub-section referred to as " the said goods") are returned to the said place on or after the appointed day, no tax shall be payable if the said goods, after undergoing manufacturing processes or otherwise, are returned to the said place within six months from the appointed day: Provided that the period of six months may, on sufficient Cause being shown, be extended by thr commissioner for a Further period not exceeding two months: 520 Provided further that if the said goods are not returned within A period specified in this sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub-section (8) of section 142: Provided also that the person despatching the goods may, in Accordance with the provisions of the existing law, transfer the said goods to the premises of any registered person for the purpose of supplying therefrom on payment of tax in India or without payment of tax for exports within the period specified in this sub-section. (3) Where any goods had been despatched from the place of business without payment of tax for carrying out tests or any other process, to any other premises, whether registered or not, in accordance with the provisions of existing law prior to the appointed day and such goods, are returned to the said place of business on or after the appointed day, no tax shall be payable if the said goods, afer undergoing tests or any other process, are returned to such place within six months from the appointed day: Provided that the period of six months may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding two months: Provided further that if the said goods are not returned within the period specified in this sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) of sub- section (8) of section 142: Provided also that the person despatching the goods may, in accordance with the provisions of the existing law, transfer the said goods from the said other premises on payment of tax in India or without payment of tax for exports within the period specified in this sub-section. (4) The tax under sub-section (1),(2) and (3) shall not be payable, only if the person despatching the goods and the job worker declare the details of the inputs or goods held in stock by the job worker on behalf of the said 521 person on the appointed day i such form and manner and within such time as may be prescribed. 142.(1) Where any goods on which tax, if any, had been paid under the existing law at the time of sale thereof, not being Miscellaneous earlier than six months prior to the appointed day, are transitional returned to any place of business on or after the provisions. appointed day, the registered person shall be eligible for refund of the tax paid under the existing law where such goods are returned by a person, other than a registered person, to the said place of business within a period of six months from the appointed day and such goods are identifiable to the satisfaction of the proper officer: Provided that if the said goods are returned by a registered person, the return of such goods shall be deemed to be a supply. (2)(a) where, in pursuance of a contract entered into prior to the appointed day, the price of any goods is revised upwards on or after the appointed day, the registered person who had sold such goods shall issue to the recipient a supplementary invoice or debit note, containing such particulars as may be prescribed, within thirty days of such price revision and for the purposes of this Act, such supplementary invoice or debit note shall be deemed to have been issued in respect of an outward supply made under this Act; (b) where, in pursuance of a contract entered into prior to the appointed day, the price of any goods is revised downwards on or after the appointed day, the registered person who had sold such goods may issue to the recipient a credit note, containing such particulars as may be prescribed, within thirty days of such price revision and for the purposes of this Act such credit note shall be deemed to have been issued in respect of an outward supply made under this Act: Provided that the registered person shall be allowed to reduce his tax liability on account of issue of the credit note only if the recipient of the credit note has reduced his input tax credit corresponding to such reduction of tax liability. 522 (3) Every claim for refund filed by any person before, on or after the appointed dayforrefund of anyamountof input tax credit, tax, interest or any other amount paid under the existing law, shall be disposed of in accordance with the provisions of existing law and any amount eventually accruing to him shall be refunded to him in cash in accordance with the provisions of the said law: Provided that where any claim for refund of the amount of input tax credit is fully or partially rejected, the amount so rejected shall lapse: Provided further that no refund shall be allowed of any amount of input tax credit where the balance of the said amount as on the appointed day has been carried forward under this Act. (4) Every claim for refund filed after the appointed day for Refund of any tax paid under the existing law in respect of the Goods exported before or after the appointed day, shall be disposed of in accordance with the provisions of the existing law: Provided that where any claim for refund of input tax credit is fully or partially rejected, the amount so rejected shall lapse: Provided further that no refund shall be allowed of any amount of inputs tax credit where the balance of the said amount as on the appointed day has been carried forward underthis Act. (5) Notwithstanding anything to the contrary contained in this Act, any amount of input tax credit reversed prior to theappointed day shall not be admissible as input tax credit underthis Act. (6) (a) every proceeding of appeal, revision, review or reference relating to a claim for input tax credit initiated whether before, on or after the appointed day under the existing law shall be disposed of in accordance with the provisions of the existing law, and any amount of credit found to be admissible to the claimant shall be refunded to him in cash in accordance with the provisions of the existing law, and the amount rejected, if any, shall not be admissible as input tax credit underthis Act: 523 Provided that no refund shall be allowed of any amount of input tax credit where the balance of the said amount as on the appointed day has been carried forward underthis Act; (b) Every proceeding of appeal, revision, review or reference relating to recovery of input tax credit initiated whether before. on or after the appointed day under the existing law shall be disposed of in accordance with the provisions of the existing law. and if any amount of credit becomes recoverable as a result of such appeal. Revision review or reference, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act. (7) (a) every proceeding of appeal, Revision, review or Reference relating to any output tax liability initiated whether Before, on or after the appointed day under the existing law. Shall be disposed of in accordance with the provisions of the existing law. and if any amount becomes recoverable as a result of such appeal, revision, review or reference, the same shall, unless recovered under the existing law be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act. (b) every proceeding of appeal, revision, review or reference relating to any output tax liability initiated whether before, on or after the appointed day under the existing law, shall be disposed of in accordance with the provision of the existing law, and any amount found to be admissible to the claimant shall be refunded to him in cash in accordance with the provisions of the existing law and the amount rejected, if any, shall not be admissible as inputtax credit underthis Act. (8) (a) where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day under the existing law, any amount of tax, interest, fine or penalty becomes recoverable from the person, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this Act and theamount so recovered shall not be admissible as input tax credit under this Act; 524 (b) where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day under the existing law, any amount of tax, interest, fine or penalty becomes refundable to the taxable person, the same shall be refunded to him in cash under the said law, and the amount rejected, if any, shall not be admissible as input tax credit under this Act. (9) (a) where any return, furnished under the existing Law, is revised after the appointed day and if, pursuant to such revision, any amount is found to be recoverable or any amount of input tax credit is found to be inadmissible, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this Act and the amount so recovered shall not be admissible as input tax credit under this Act; (b) where any return, furnished under the existing law, is revised after the appointed day but within the time limit specified for such revision under the existing law and if, pursuant to such revision, any amount is found to be refundable or input tax credit is found to be admissible to any taxable person, the same shall be refunded to him in cash underthe existing law, and the amount rejected, if any, shall not be admissible as input tax credit under this Act. (10) Save as otherwise provided in this Chapter, the goods or service or both supplied on or after the appointed day in pursurance of a contract entered into prior to the appointed day shall be liable to tax under the provisions of this Act. (11) a) notwithstanding anything contained in section 12, no tax shall be 4 of 2005 payable on goods under this Act to the extend the tax was leviable on the said goods under the Nagaland Value Added Tax Act, 2005; (b) notwithstanding anything contained in section 13, no tax shall be 32 of 1994 payable on services under this Act to the extent the tax was leviable on the said services under Chapter V of the Finance Act, 1994; (c) where tax was paid on any supply, both under the Nagaland Value Added Tax Act, 2005 and chapter V of the Finance Act, 1994, tax shall 525 be leviable under this Act and the taxable person shall be entitled to 4 of 2005 take credit of value added tax or service tax paid under the existing law 32 of 1994 to the extent of supplies made after the appointed day and such credit shall be calculated in such manner as may be prescribed. (12) where any goods sent on approval basis, not earlier than six months before the appointed day, are rejected or not approved by the buyer and returned to the seller on or after the appointed day, no tax shall be payable thereon if such goods are returned within six months from the appointed day: Provided that the said period of six months may, on sufficient cause being shown, be extended by the commissioner for a further period not exceeding two months: Provided further that the tax shall be payable by the person returning the goods if such goods are liable to tax underthis Act, and are returned afterthe period specified in this sub-section: Provided also that tax shall be payable by the person who has sent the goods on approval basis if such goods are liable to tax underthis Act, and are not returned within the period specified in this sub-section. (13) where a supplier has made any sale of goods in respect of which tax 11 of 2005 was required to be deducted at source under the Nagaland value Added Tax,2005 and has also issued an Invoice for the same before the appointed day, no deduction of tax at source under section 51 shall be made by the deductor under the said section where payment to the said supplier is made on or after the appointed day. (14) where any goods or capital goods belonging to the principal are lying at the premises of the agent on the Appointed day, the agent shall be entitled to take credit of the tax paid on such goods or capital goods subject to fulfilment of the following conditions; (I) the agent is a registered taxable person under this Act; 526 (ii) both the principal and the agent declare the details of stock of goods or capital goods lying with such agent on the day immediately preceding the appointed day in such form and manner and within such time as may be prescribed in this behalf; (iii) the invoices for such goods or capital goods had been issued Not earlier than twelve months immediately preceding the appointed day; and (iv) the principal has either reversed or not availed of the input tax credit in respect of such,- (a) goods; or (b) capital goods or, having availed or such credit, has reversed the said credit, to the extent availed of by him. Exploitation : For the purpose of this chapter, the expression "capital 4 Of 2005 goods" shall have the same meaning as assigned to it in the Nagaland value Added Tax,2005. CHAPTER XXI MISCELLANEOUS 143.(1) A registered person (hereafter in this section referred to as the "Principal" may, under intimation and subject to such Job work conditions As maybe prescribed, send any inputs or capital Procedure. goods, without Payment of tax, to a job worker for job work and from there Subsequently send to another job worker and likewise, and shall,- (a) bring back input, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out,to any of his place of business, without payment of tax; (b) supply such input, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out from the 527 place of business of a job worker on payment of tax within India, or with or without payment of tax for export, as the case maybe; Provided that the principal shall not supply the goods from place of business of a job worker in accordance with the provision of this clause unless the said principle declares the place of business of the job worker as his additionaLplace of business expect in a case- (I) where the job worker is registered under section 25;or (ii) where the principal is engaged in the supply of such goods as Maybe notified by the commissioner. (2) The responsibility for keeping proper accounts for the inputs orcapitalgoods hall lie with the principal. (3) where the inputs sent for job work are not received back by the principal after completion of job work or otherwise in accordance with the provision of ause (a)Of sub-section(1) or are not supplied from the place of business of the job worker in accordance with the provision of clause(b)of sub- section (1) within a period of one year of their being sent out, it shall be deemed that such inputs had been supplied by the principal to the job worker on the day when the said inputs were sent out. (4) where the capital goods, other than moulds and dies, jigs and fixtures, or tools, sent for job work are not received back by the principal in accordance with the provisions of clause(a)of sub-section(1) or are not supplied from the place of business of the job worker in accordance with the provision of clause (b) of sub-section(1)within a period of three years of their being sent out, it shall be deemed that such capital goods had been supplied by the principal to the job worker on the day when the said capital goods were sent out. (5) Notwithstanding anything contained in sub-section(1)and (2),any waste and scrap generated during the job work may be Supplied by the job worker directly from his place of business on payment of tax, if such 528 job worker is registered, or by the Principal, if the job worker is not registered. Explanation. For the purposes of job work, input includes intermediate goods arising from any treatment or process carried out on the inputs by the principal or the job worker. Presumption