In exercise of the powers conferred by Section 14
of the Meghalaya Cement Cess Act, 2010 [Act No. 5 of 2011] the Government of
Meghalaya is pleased to make the following rules namely: (1) These Rules shall be
called the Meghalaya Cement Cess Rules, 2011. (2) They shall come into
force with immediate effect. (1) In these Rules,
unless the context otherwise requires. (a) "Act" means
the Meghalaya Cement Cess Act, 2010. (b) "Appropriate
Authority" means the Commissioner of Taxes, or any officer as delegated by
him; (c) "Rules"
means the Meghalaya Cement Cess Rules, 2011. (d) "Section"
means the Section under this Act. (e) "Form"
means the Section under this Act. (2) Words and expression
used in these rules but not defined and defined in the Act shall have the
meaning respectively as assigned to them. The
Authorities competent to recover and enforce payment Cess, hear appeals and
exercise powers and functions under the Act shall be the authorities competent
to exercise the corresponding powers and functions as provided (under the
Meghalaya Value added Tax Act 2003 and Rules, 2005). (1) The rate of Cess to
be paid by the cement factories/producers for the finished produce is rupees
twenty per metric tonne. (2) The cess has to be
paid or collected by the proprietor or the agent or the officials of the
factories at the time of lifting of the products for sales or transfer at the
rate as prescribed under the Act and these Rules. (3) The person who pays
or collects the cess has to issue the cash memos in duplicate to the person
lifting the goods as a proof of levying of cess and will have to produce the
same to the taxation officials on checking and will retain the counter foils of
the Receipt books or cash memos for verification of accounts by the appropriate
Authorities. (4) The counter foils and
the books of accounts have to be retained by the officials of the factories/producers
for a period of not less than 8 (eight) years. (5) The quarterly
Statement of sale/transfer of goods shall be submitted by the producers in Form
I within twenty one days from the closure of quarter of the year before the
appropriate authority of the area of the producer or before the assessing
authority where the producer is registered under the Meghalaya Value Added Tax
Act and Central Sales Tax Act 1956 and shall be accompanied by the Treasury
Challan in form 4 of the Meghalaya Value Added Tax Act, 2003 as a proof of
payment. (6) The producer/official
of the factories liable to pay cess shall pay within twenty one days from the
end of every month of the year. (1) The Sales or Transfer
Statement shall be maintained by the producer/official of factories in
duplicate, that is, original copy of the quarterly statement should be
submitted to the appropriate authority along with a copy of the treasury
challan as a proof of payment and the duplicate copy of Statement along with a
copy of Challan has to be kept by the producer/official of the factories for
future record. (2) All the Books of
accounts as provided under these rules shall be preserved by the
producer/official of factories for a period of not less than 8 (eight) years or
till such periods as such case records may be required for final disposal of
any appeal, review, revision or reference under the Act or for final disposal
of any case pending before any court or tribunal. (3) All the statements
and treasury receipts submitted by the producer shall be kept by the
appropriate authority for a period of not less than eight years or till such
periods as such case records may be required for final disposal of any appeal,
review, revision or reference under the Act or for final disposal of any case
pending before any court or tribunal. (4) The Bill or cash
memorandum or the Sales Voucher as required to be issued at the time of removal
or lifting or transportation of any manufactured cement from the factory stack
yard, ware house and godown for sale or transfer should be in Form 5 to be
prepared in triplicate i.e. the original and duplicate copies of the bill/cash
memo/sale voucher has to accompany the goods sold/transferred and the original
copy has to be surrendered by the transporter at the checkpost, whereas the
counterfoil or the triplicate copy has to be kept by the producer/official of
factories for verification of account by the appropriate authority. (1) If any Cess payable
is not paid within a prescribed period, the authority prescribed in this behalf
may impose on a Producer/official of factories producing or removing Cement
penalty not exceeding the amount of Cess in arrears in addition to the Cess
payable. (2) If the
producer/official of factories fails to pay any Cess payable within a
prescribed period, the appropriate authority may either before or after
initiating action under section 9 of the Act impose penalty as provided under
sub-rule (1) of this rule and in imposing such penalty, the appropriate
authority shall give the producer/official of factories a reasonable
opportunity of being heard. (3) For the purpose of
Section 7 read with sub-rule (2) of this rule the appropriate authority shall
serve a notice in Form 2 requiring the producer to make payment of the required
Cess and penalty. (4) The appropriate
authority to call for payment of cess and also for realizing penalty as
provided under Section 7 of the Act should not be below the rank of the Superintendent
of Taxes. (1) If any cases and
penalty due under this Act is not paid by the producer/official of the
factories within the time prescriber or if the cement is transported for sale
or transfer without payment of cess due, the cement transported for sale or
transfer may be seized and detained by the official of the appropriate
authority at the Check gates or the godown or while or transit. (2) On detaining or
seizure of such cement the appropriate authority shall issue the seizure list
in Form 3 to the transporter, the official incharge of the godown, the driver
of the vehicle transporting such cement and shall also serve a notice in Form 4
requiring the producer or official of factories or the owner of the cement to
appear for payment of the amount of cess and in addition to cess recoverable, a
sum of money double the amount of cess recoverable and on payment of such sum
of money as may be determined, the appropriate authority shall refuse the
cement seized or detained. (3) If the producer or
the transporter or the owner of such cement seized fails to comply with the
notice issued or fails to pay the required amount of cess and penalty, the
appropriate authority before or after initiating action under Section 9 and 10
of the Act may sell or auction such cement seized or detained and deposit the
taxable amount to the government treasury, whereas the balance of the sales
proceeds shall be refunded/surrendered to the producer/official of
factory/owner of cement who will issue a receipt accordingly. (4) The appropriate
authority who sells or auctions or detains the cement seized shall give one
copy of the treasury receipt or challan to the producer or the transporter or
the owner of such cement. (5) The appropriate
authority to seize or detain the cement transported or stacked in the godown
should not be below the rank of Inspector of Taxes. (6) The appropriate
authority to recover the cess payable and also to impose penalty at the
checkpoint should not be below the rank of the Superintendent of Taxes, whereas
in cases of realizing cess and penalty due from the cement while on transit in
the checkpost where the officer incharge of the checkpost is the Inspector of
Taxes then the power to realize the cess and penalty from the cement while on
transit not be below the rank of the Inspector of Taxes. (7) The appropriate
authority to sell or auction the cement seized should not be below the rank of
the Superintendent of Taxes. MEGHALAYA
CEMENT CESS RULES, 2011
PREAMBLE