Section 1

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

Inserted vide Nagaland Act 3 of 1971. and recovered from jointly and severally, every person who at the time of such discontinuance of dissolution as a partner of such firm or member of such association; and all the provisions of the Act shall apply accordingly. Liability to tax on cancellation of certificate or dissolution of a firm or association.- 30. (1) When a certificate of registration is cancelled under sub-section (3) of section 12 in any case other than that of a dissolution of a firm or association of persons, the dealer shall be liable to pay tax on his stock of goods remaining unsold at the time of cancellation of the certificate and all the provisions of this Act, shall apply accordingly. (2) In case of dissolution of a firm or association of person, the tax on the stock of goods remaining unsold at the time of such dissolution, shall be levied upon and recovered from, jointly and severally every person who at the time of such dissolution was a partner of such firm or members of such association; and all the provisions of this Act, shall apply accordingly. Appeal.- 31. (1) Any dealer objecting to an order of assessment or penalty passed under this Act, may, within thirty days from the date of the service of such order appeal to the prescribed authority, against such assessment of penalty: Provided that no appeal shall be entertained by the said authority unless he is satisfied that the amount of tax assessed or the penalty levied, if not otherwise directed by him, has been paid: Provided further that the authority before whom the appeal is file may admit if after the expiration of thirty days, if such authority is satisfied that for reasons beyond the control of the appellant or for any other sufficient cause it could not be filed within time. (2) Every appeal under sub-section (1) shall be presented in the prescribed form and shall be verified in the prescribed manner. (3) The appellate authority shall fix a day and place for hearing of the appeal, and may from time to time, adjourn the hearing and make, or cause to made, such further enquiry as may be deemed necessary. (4) In disposing of an appeal under sub-section (1) the Appellate Authority may – (a) confirm, reduce, enhance or annul the assessment, or (b) set aside the assessment and direct a fresh assessment after such enquiry as may be ordered, or (c) confirm, reduce or annul the order of penalty. Revision by Commissioner.- 32. (1) The Commissioner may call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by any person appointed under section 3 to assist him in erroneous in so far as it is prejudicial to the interests of the revenue, he may, after giving the dealer an opportunity of being heard and after making or causing to be made such enquiry as he deems necessary, pass such orders thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or canceling the assessment, and directing a fresh assessment. (2) In the case of any order other than an order to which sub-section (1) applies passed by any person appointed under section 3 to assist him, the Commissioner may, either of his own motion or on a petition, by a dealer for revision, call for the record of any proceeding under this Act in which any such order has been passed and may make such enquiry or cause such enquiry to be made, and subject to the provisions of this Act, may pass such order thereon, not being an order prejudicial to the dealer as he thinks fit. (3) In the case of a petition for revision under sub-section (2) by a dealer, the petition must be made within ninety days from the date on which the order in question was communicated to him or the date on which he otherwise came to know of it, whichever is earlier: Provided that the Commissioner before whom the petition is filed my admit it after the expiration of the period of ninety days if he is satisfied that for reasons beyond the control of the petitioner or for any other sufficient cause, it could not be filed within time. (4) The Commissioner shall not revise any order under this section in the following cases: - (a) Where an appeal against the order lies under section 31 or section 33 but has not been made and the time within which such appeal may be made has not expired; or (b) Where the order is pending on appeal under section 31 or section 33. Explanation: - An order by the Commissioner declining to interfere shall, for the purpose of this section, be deemed not to be an order prejudicial to the dealer. Appeal to State Government.- 33. (1) Any dealer by any order passed in appeal under section 31 or passed in revision under sub-section (1) of section 32 may appeal to the State Government within sixty days of the date on which such order is communicated to him. (2) The State Government may admit an appeal after the expiration of the sixty days referred to in sub-section (1) if it is satisfied that for the reasons beyond the control of the appellate or for any other sufficient cause it could not be filed within time. (3) An appeal to the State Government shall be in the prescribed form and shall be verified in the prescribed manner, and shall be accompanied by a fee of twenty five rupees. (4) The State Government may, after giving the dealer an opportunity of being heard, pass such order thereon as it thinks fit, and shall communicate any such orders to the dealer and to the Commissioner. Reference.- 34. (1) Within sixty days from the date of service of any order under section 33, the dealer may, by petition in writing, require the State Government to refer to the High Court any question of law arising out of such order of the State Government or the State Government may make such reference out of its own motion. Where the petition is made by a dealer it shall be accompanied by a fee of one hundred rupees. (2) Within sixty days of the receipt of the petition under sub-section (1), the State Government shall, subject to the provisions in sub-section (3), draw up, after such hearing and enquiry as may be considered necessary, a statement of the case and refer it with its opinion thereon to the High Court. (3) The State Government may reject the application under sub-section (1) and refuse to state the case on the ground that it is time barred or otherwise incompetent, or that no question of law arises and the applicant may, within thirty days of such refusal withdraw the application and if he does so, the fee paid shall be refunded. (4) Where the application under sub-section (1) is rejected on the ground that no question of law arises and where no action is taken by the applicant under sub-section (3), he may, within ninety days from the date of such rejection, apply to the High Court against the order rejecting the application, and if, upon receipt of such an application, the High Court is not satisfied with the correctness of the decision, it may require the State Government to state the case and refer it and, on receipt of any such requisition, the State Government shall state and refer the case accordingly. (5) Where the application under sub-section (1) is rejected on the ground that it is time barred and where no action is taken by the applicant under sub-section (3) he may, within ninety days of the date of such rejection, apply to High Court against the order rejecting the application and if, upon receipt of such an application the High Court is not satisfied with the correctness of the decision it may require the State Government to treat the application under sub-section (1) as made within time. (6) Where the High Court is not satisfied that the statement in a case referred under his section is sufficient to enable it to determine the questions of law raised thereby, it may refer the case back to the State Government to make such additions thereof of such alterations therein as may be directed and the State Government shall thereupon comply, with the directions and re-submit the case accordingly. (7) The High Court upon the hearing of any such case shall decide the question of law raised thereby, and shall deliver its judgment thereon containing the grounds on which such decision is founded, and shall send to the State Government a copy of such judgment under the seal of the Court and signature of the Registrar, and the State Government shall on receipt of the copy of the judgment, order disposal of the case accordingly. (8) Where a reference is mad eon the application of a dealer the costs shall be in the discretion of the High Court. (9) Notwithstanding that a reference has been made under this section to the High Court, payment of tax shall not be stayed pending disposal of such reference; but where the amount of tax is reduced as the result of the reference, excess shall be refunded in accordance with the provisions of this Act. (10) Section 5 of the Indian Limitation Act, 1908, (IX f\of 1908) shall apply to an application to the High Court by dealer under this section. Notice of demand.- 35. When any tax or penalty or other dues is or are payable in consequence of any order passed under or in pursuance of this Act, the Commissioner shall serve upon the persons liable to pay such tax or penalty or other dues a notice of demand in the prescribed form specifying the sum so payable. Tax when payable.- 36. (1) Tax payable under this Act shall be paid in the manner hereinafter provided. (2) Before any registered dealer furnished the return required by sub-section (1) of section 15, he shall in the prescribed manner, pay into a Government Treasury the full amount of tax due from him under this Act on the basis of such returns, and shall furnish along with the returns a receipt from such treasury in token of payment of such tax. (3) Where a revised returned is submitted by a registered dealer under sub-section (3) of section 15 and if the revised return shows a greater amount of tax to be due than was payable on the basis of the original return, the dealer shall pay the excess amount of tax in the manner provided in sub-section 2, and shall furnish along with the revised return a receipt in token of payment of such excess tax. (4) The amount of the tax due under provision of this Act – (a) in excess of payment already made under sub-section (2) and (3), or (b) where no payment has been made, shall be paid by the dealer by such date as may be specified in the notice of demand and, where no such date is specified it shall be paid within thirty days from the date of service of the notice. Correction of Tax by dealers.- 37. No person who is not a registered dealer shall realize any amount by way of tax under this Act on sales of goods form the purchasers. Without prejudice to the provisions of sub-section (2) of section 42, the amount realized by any person as tax on sales of any goods shall, notwithstanding anything contained in any other provision of this Act, be deposited by him in a Government Treasury within such period as may be prescribed, if the amount payable as tax in respect of those sales or if no tax is payable in respect thereof, and in default of such payment, double the amount shall be recovered as a public demand under the Bengal Public Demands Recovery Act, 1913. (3 of 1913). Other dues when payable.- 38. Any dues, other than the amount of tax payable under this Act shall be paid by the person concerned by such date as may be specified, it shall be paid within thirty days from the date of the service of the Notice. Mode of recovery. – 39. (1) If the demand in respect of any dues under this Act is not paid on or before the date specified as aforesaid the dealer shall be deemed to be in default: Provided that the Commissioner may, in respect of any particular dealer and for reasons to be recorded in writing, extend the date of payment of the dues or allow such dealer to pay the same by installments and in that case the dealer shall not be deemed to be in default. (2) Where a dealer is in default, the Commissioner may, in his discretion, direct that, in addition to the amount due, a sum not exceeding that amount shall be recovered from the defaulter by way of penalty. (3) Where a dealer is in default, the Commissioner may order that the amount due shall be recoverable as a public demand under the Bengal Public Demands Recovery Act, 1913 and may proceed to realize such amount due. Refund.- 40. The Commissioner shall, in the prescribed manner refund to a dealer any sum paid by such dealer in excess of the sum due from him under this Act, either by cash payment or at the option of the dealer by set off against the sum due from him in respect of any other period. Remission.- 41. The State Government, for reasons to be recorded in writing may remit the whole or part of the amount of the tax or penalty payable in respect of any period by any registered dealer who has suffered heavy loss due to any natural calamity. Offences and penalties.- 42. Whoever: - (1) carries on business as a dealer or acts in contravention of any of the provisions of this Act; or (2) fails, without reasonable cause, to submit in due time any return as required by or under the provisions of this Act, or submits a false return; or (3) being a registered dealer, falsely represents, when purchasing any class of goods that goods of such class are recovered by his certificate of registration; or (4) not being a registered dealer, falsely represents when purchasing goods, that he is a registered dealer; or (5) fails, when required by or under the provisions of this Act, to keep accounts or records of sales; or (6) fails, where required by or under the provisions of this Act, to produce any accounts, evidence or documents or to furnish any information; or (7) fails or neglects to comply with any requirement made of him under the provisions of this Act; or (8) knowingly produces incorrect accounts. Registers or documents or, knowingly furnishes incorrect information; or (9) fraudulently or willfully evades the payment of tax due under this Act or conceals his liability to such tax; or (10) fails to pay within the time allowed any tax assessed or any penalty levied on him; or (11) prevents or obstructs inspection or entry by any officer acting under the provisions of this Act; or (12) prevents or obstruct any officer incharge of a check post or barrier from making any entry or inspection of goods or in intercepting, detaining or searching any vehicle carrying goods; or (13) demands or charges from any purchaser sales tax as such on the sales of any goods exempted under section 7 and section 8 or under any notification issued thereunder or at a rate higher than payable under the provisions of this Act; shall, on conviction before a magistrate and in addition of any tax or penalty or both that may be due from him, be punishable with imprisonment which may extend to six month or with fine not exceeding one thousand rupees or with both, and when the offence is a continuing one with a daily fine not exceeding fifty rupees during the period of the continuance of the offence. False statement in declaration.-42. Whoever makes a statement in a verification or declaration in connection with any proceedings under this Act which is false, and which he earlier knows or believe to be false, or does not believe to be true, shall on conviction before a Magistrate, be punishable with simple imprisonment which may extend to six months or with fine which may extend to one thousand rupees, or with both. Cognizance of offences.-44. (1) No Court shall take cognizance of any offence under this Act or under the rule made thereunder except with the previous sanction of the Commissioner, and no Court inferior to that of a Magistrate of the first class shall try such offence. (2) All offences punishable under this Act shall be cognizable and bailable. Composition of offences.-45. (1) Subject to such conditions as may be prescribed, the Commissioner may, either before or after institution of criminal proceedings under this Act, accept from the person who has committed or is reasonably suspected of having committed an offence under this Act or the rules made thereunder, by way of composition of such offence. (a) where the offence consists of the failure to pay, or the evasion of any tax recoverable under this Act in addition to the tax so recoverable, a sum of money not exceeding one thousand rupees or double the amount of the tax recoverable, whichever is greater, and (b) in any other case a sum of money not exceeding one thousand rupees in addition to the tax recoverable. (2) On payment of such sum as may be determined by the Commissioner under sub- section (1) no further proceeding shall be taken against the person concerned in respect of the same offence. Disclosure of information by a public servant.-46 (1) All particulars contained in any statement made, return furnished or accounts or documents produced in accordance with this Act, or in any evidence given or affidavit or deposition made in the course of any proceedings under this Act other than proceedings before a Criminal Court or in any record of any proceedings under this Act, shall, save as provided in sun-section (3), be treated as confidential, and notwithstanding anything contained in the Indian Evidence Act, 1872, or Court shall, save as aforesaid, be entitled to require any public servant to produce before it any such statement, return, accounts, document or record or any part thereof, or to give evidence before it in respect thereof. (2) If, save as provided in sub-section (3), a public servant discloses any of the particulars referred to in sub-section (1), he shall be punishable with imprisonment which may extend to six months and shall also be liable to fine. (3) Nothing in his section shall apply to the disclosure- (a) of any of the particulars referred to in sub-section (1) for the purpose of a prosecution under the Indian Penal Code, 1860, or the Prevention of Corruption Act, 1947 in respect of any such statement, return, accounts documents or evidence or for the purposes of a prosecution under this Act, or (b) of such facts, to an officer of the Central Government as may be necessary for the purpose of enabling that Government to levy or realize and tax imposed by it, or (c)such facts, to any officer of this or any other State Government as may be necessary for the purpose of enabling such officer to levy or realize any tax imposed by that Government. Maintenance and preservation of accounts.-47. (1) Every registered dealer or other dealer on whom a notice has been served to furnish returns under sub-section (2) of section 15, shall keep a true account of the goods bought and sold by him, and if the accounts, maintained in the ordinary course do not, in the opinion of the Commissioner, enable him to apply a proper check on the returns furnished under the provisions of this Act, he may by notice in writing, require such dealer to keep such accounts (including records of sales) in such form as he may, subject to anything that may be prescribed direct. (2) Accounts referred to in sub-section (1) together with all vouchers relating to stocks, delivery, purchases, output, and sales shall be preserved for such period as may be prescribed. Owner to order production of accounts and power of entry and inspection.-48. (1) Subject to such conditions and restrictions as may be prescribed, the Commissioner may, for the purposes of this Act, require any dealer to produce before him any accounts, registers or documents, and to furnish any information relating to the stock of goods of or purchases, sales and deliveries of goods, by the dealer. (2) All accounts, registers and other documents relating to the stocks of goods of, or purchases, sales or deliveries of goods by, any dealer, the goods in his possession and his offices, shops, godowns and vehicles shall, at reasonable times, be open to inspection by the Commissioner. (3) If the Commissioner has reason to suspect that any dealer is attempting to evade payment of any tax under this Act, he may, for reasons to be recorded in writing seize such accounts, registers or documents of the dealer as may be necessary;, and shall grant a receipt for the same, and shall retain the same only for so long as may be necessary for the purposes of this Act. (4) The Commissioner may, for the purposes of the sub-section (2) or sub-section (3), enter and search any such place as is mentioned in sub-section (2) on the authority of a search warrant issued by the a Magistrate. (5) The provisions of section 102 and section 103 of the Code of Criminal Procedure, 1898, shall, so far as may be, apply to searchers under sub-section (4). Power to call for information.-49. The Commissioner may, for the purposes of this Act; (1) require any firm or association of persons or Hindu undivided or joint family to furnish him with a statement of the names and addresses of the manager and members of the family, as the case may be; (2) require any person whom he has reason to believe to be a trustee, guardian, manager or agent to furnish him with a statement of the names of persons with their addresses for or of whom he is a trustee, guardian, manager or agent; (3) require any person whom he has reason to believe to have obtained goods from outside the State to furnish him with statement of the names of the persons with their addresses from whom he has obtained the goods and of the names and prices of goods obtained; (4) require any person whom he was reason to believe to have dispatched goods to any place outside the State to furnish him with a statement of the names of persons with their addresses to whom he was dispatched the goods and of the names and prices of goods dispatched. (5) Required any person, including a Banking Company or any officer thereof, to furnish any such particulars in respect of the transactions of any dealer with such bank, which during the course of its business handles or transport goods liable to tax under this Act. Bar of suits in Civil Court and Indemnity. – 50. No suit shall be brought in any Civil Court to set aside or modify any assessment made or order passed under the provisions of this Act, and no prosecution, suit or other proceeding shall lie against any officer of the Government or anything in good faith done or intended to be done under this Act or the rule made thereunder. Power to take evidence on oath, etc. – 51. The Commissioner shall, for the purposes of this Act have the same powers as are vested in a Deputy Commissioner under the Rules for the Administration of Justice and Police in the Naga Hills District, 1937, when trying a suit, in respect of the following matters – (1) enforcing the attendance of any person examining him on oath or affirmation; (2) compelling the production of document; (3) issuing commissions for the examination of witness, and any such proceeding before Commissioner shall be deemed to be a “Judicial proceeding” within the meaning of sections 193 and 228 and for the purposes of section 196 of Indian Penal Code, 1960,(XLV of 1960). Computation of the period of limitation. – 52. In computing the period of limitation prescribed for an appeal or a revision or references, the day on which the order complained of was made and the time requisite for obtaining a copy of such order, shall be excluded. Information to be furnished regarding change of business. – 53. (1) If any dealer to whom the provisions of section 15 apply – (a) sells or otherwise transfers or disposes of his business or any part thereof; or (b) discontinues his business or changes his place of business or opens a new place of business; or (c) Changes the name or nature of his business; he shall, within such period as may be prescribed inform the authority accordingly. (2) Where any dealer as aforesaid dies, his successor or legal representative shall furnish the information in the like manner. Service of notices. – 54. (1) A notice or requisition under this Act may be served on person therein named either by post or, as if it were a summons issued by a Court. (2) Any such notice or requisition may, in the case of a firm or Hindu undivided or joint family, be addressed to any member of the firm or to the manager, or any adult member of the family and, in the case of any other association of persons be addressed to the principal officer thereof. Delegation of Commissioner’s powers. – 55. The Commissioner may, subject to such restrictions and conditions as may be prescribed, delegate by notification in the Official Gazette, any of his powers under section 3 to assist him. Power to remove difficulties. – 56. If any difficulty arises in giving effect to the provisions of this Act, the State Government, may , as occasion may require, by order do anything, not inconsistent with the purposes of this Act, as appears to them to be necessary or expedient for removing the difficulty. Power to make rules. – 57. (1) The State Government may, subject to the condition of previous publication, make rules for carrying out the purposes of this Act. (2) Without prejudice to the generality of the foregoing power, such rules may in particular, prescribe – (a) all matters expressly required or allowed by this Act to be prescribed; (b) the classes and duties of officers appointed for the purpose of enforcing the provisions of this Act; (c) the procedure to be followed and the forms to be adopted in proceedings under this Act; (d) the proportion referred to in sub-clause (b) of clause (12) of section 2; (e) the intervals at which, and the manner in which, the tax under this Act shall be payable; (f) the dates by which, and the authority to which returns shall be furnished; (g) the manner in which refunds shall bee made; (h) the classes of and the authority for determination and settlement of disputes; (i) the fees for reference, revision or appeal petitions, supply of certified copies of order and other matters; and (j) any other matter which is required to be or may be prescribed. (3) In making any rule the State Government may direct that a breach thereof shall be punishable with fine not exceeding five hundred rupees, and when the offence is a continuing one, with a daily fine not exceeding twenty rupees during the continuance of the offence. (4) Every rule made under this section shall be laid, as soon as may be after it is made, before the Nagaland Legislative Assembly while it is in session for s total period of fourteen days which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following the Nagaland Legislative Assembly agree in making any modification in the rule or the rule shall thereafter have effect only in such modified form or be of no effect as the case may be; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. Refund on Inter-State Trade. – 58. Notwithstanding anything contained in the Act, where a tax has been levied in respect of the sale inside the State of any declared goods and such goods are sold in the course of inter-State trade or commerce, the tax so levied shall be refunded. Erection of check Posts. – 59. (1) The State Government may, by notification set up and erect, in such, manner as may be prescribed, check posts and barriers at any place in the State with a view to preventing the evasion of tax payable under this Act. (2) Every person transporting goods shall, at any check post or barrier, set up and erected in accordance with sub-section (1) and before crossing such check post or barrier, file before the officer-in-charge of the check post or barrier, if so directed by him, a correct and complete declaration of the goods in such form and in such manner as may be prescribed. (3) The officer-in-charge of the check post or barrier may for the purpose of satisfying himself that the provision of sub-section (2) are not being contravened and subject to such restriction as may be prescribed intercept, detain and search any vehicle which may be suspected of being used for contravening such provisions. Repeal. – 60. The Assam Sales Tax Act 1947 (Assam Act XVII of 1947) as extended to Nagaland shall stand repealed: Provided that such shall affect – (a) the previous operation of the said Act or anything duly done or suffered thereunder; or (b) any right, privilege, obligation or liability acquired, accrued or incurred under the said Act; or (c) any penalty, forfeiture or punishment incurred in respect of any offence committed against the said Act; or (d) any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid: Provided further that anything done or any action taken (including any appointment or delegation made, instruction or direction made, certificate or registration granted) under the Act hereby repealed shall be deemed to have been done or taken under the corresponding provision of this Act and shall continue to be in force accordingly unless and until superseded by anything done or any action taken under this Act. Repeal and Savings. – 61. (1) The Nagaland Finance (Sales Tax)Act, 1967 (Act X of 1967) (hereinafter referred to as the said Act) is hereby repealed: Provided that such repeal shall not affect; (a) the previous operation of the said Act or anything duly done or suffered thereunder; or (b) any right, privilege, obligation or liability acquired, accrued or incurred under the said Act; or (c) any penalty, forfeiture or punishment incurred in respect of any offence committed against the said Act; or (d) any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid: Provided further that anything done or any action taken (including any appointment or delegation made, instruction or direction made, certificate or registration granted) under the Act hereby repealed shall be deemed to have been done or taken under the corresponding provision of this Act and shall continue to be in force accordingly unless and until superseded by anything done or any action taken under this Act. (2) Notwithstanding the repeal of the said Act by this section, the operation of the said Act before repeal for the purpose of levy, assessment and collection of sales tax shall continue to be dealt with under the said Act, as if said Act had not been repealed. (3) The mention of particular matters in this section shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897 (Act X of 1897) with regard to the effect of repeal.]1 * SCHEDULE I1 (See Section 5) A. – Goods taxable at 10 (ten) paise in the rupees. Sl. No. Name of taxable goods