ORISSA VALUE ADDED TAX RULES, 2005

CHAPTER I PRELIMINARY

Rule - 1. Short title and commencement.

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(1)     These rules may be called the Orissa Value Added Tax Rules, 2005.

(2)     They shall come into force on such date [1]as the Government may, by notification, specify.

Rule - 2. Definitions.

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(1)     In these rules, unless there is anything repugnant in the subject or context:

(a)      Act means the Orissa Value Added Tax Act, 2004;

(b)      agent means a person authorised by a dealer in writing to appear on his behalf before any Sales Tax authority or the Tribunal, being-

(i)       a relative of the dealer; or

(ii)      a person regularly employed by the dealer; or

(iii)     an advocate or any other person entitled to plead in any Court; or

(iv)    a person, who has been enrolled as a member of the Institute of Chartered Accountants of India or the Institute of Cost and works Accountants of India, or has passed the degree examination in Commerce recognised by any Indian University incorporated by law for the time being in force, and such other person, enrolled by the Commissioner as a tax practitioner under rule 124 of these rules; or

(v)      in the case of Government, the State Representative appointed in this behalf;

(c)      Appendix means the appendix appended to these rules;

(d)      [2][(d) Assistant Commissioner, Deputy Commissioner, Joint Commissioner, Additional Commissioner, Special Additional Commissioner and Special Commissioner shall respectively mean Assistant Commissioner of Sales Tax, Deputy Commissioner of Sales Tax, Joint Commissioner of Sales Tax, Additional Commissioner of Sales Tax, Special Additional Commissioner of Sales Tax and Special Commissioner of Sales Tax appointed under sub-section(2) of section 3 of the Act to assist the Commissioner;]

(e)      Assistant Sales Tax Officer means the Assistant Sales Tax Officer appointed by that designation by the Government under section 3 to assist the Commissioner;

(f)       Commercial Tax Gazette means the Gazette published under the authority of the Commissioner of Commercial Taxes, Orissa;

(g)      Commissioner means the Commissioner of Sales Tax and includes any officer to whom the Commissioner may delegate under section 5 his powers and duties under the Act;

[3][(gg) "e-challan" means copy of the challan in the prescribed form generated by the bank / the tax payer from the computer on successful completion of the online payment transaction, and

(ggg) "e-payment" means payment of taxes payable or any other amount dues to the State Government through electronics funds transfer mechanism.]

(h)     Form means a form appended to these rules;

(i)       Government Treasury means in relation to a dealer registered within the jurisdiction of any Sales Tax Officer or Assistant Commissioner of Sales Tax, the treasury, special treasury or sub-treasury, as the case may be, of the district, sub-division or Tahasil where the dealer’s place of business, within that jurisdiction, is situated;

(j)       quarter means a period of three months ending on 31st March, 30th June, 30th September and 31st December;

(k)      Registrar means the person who is for the time being discharging the functions of the Registrar of the Tribunal;

(l)       repealed Act means the Orissa Sales Tax Act, 1947;

(m)    R.R. Unit means a Railway Receipts Unit established with or without a check-post or barrier by the Government by notification in and around a railway station;

(n)     Sales Tax authority means any person appointed under section 3 of the Act to assist the Commissioner under any designation as prescribed under rule 3;

(o)      Sales Tax Officer means the Sales Tax Officer appointed by that designation by the State Government under section 3 to assist the Commissioner;

(p)      Sales Tax Tribunal means the Tribunal constituted as such by the Government under section 4;

(q)      section means a section in the Act;

(r)      State Representative means an officer or advocate appointed by the Government to appear and act on their behalf in any proceeding before the Tribunal and includes Additional State Representative, Deputy State Representative, Assistant State Representative or any other officer or advocate, appointed to act in his absence or along with him;

(s)      tax fraction means the fraction calculated in accordance with the formula: r r + 100 in which formular represents the rate of tax applicable to the sale;

(t)       tax practitioner means a person enrolled as such in accordance with rule124;

(2)     All other words and expressions which are used but not defined in these rules shall have the same meaning as respectively assigned to them in the Act.

CHAPTER II TAXING AUTHORITY

Rule - 3. Sales Tax Authorities.

(1)     The authorities to be appointed for assisting the Commissioner may be under the following designations:

(i)       Special Commissioner of Sales Tax;

(ii)      Additional Commissioner of Sales Tax;

(iii)     Joint Commissioner of Sales Tax;

(iv)    Deputy Commissioner of Sales Tax;

(v)      Assistant Commissioner of Sales Tax;

(vi)    Sales Tax Officer;

(vii)   Tax Recovery Officer;

(viii)  Assistant Sales Tax Officer;

(2)     The Commissioner may, by notification, specify the local limits of jurisdiction of the authorities appointed under sub-section (2) of section 3 and confer on such authorities such duties and functions, as may be required to be discharged by or under the Act and these rules as assigned to them by the said notification.

(3)     For the purpose of these rules, –

(i)       an Assistant Sales Tax Officer shall be subordinate to the Sales Tax Officer;

(ii)      a Sales Tax Officer shall be subordinate to the Assistant Commissioner;

(iii)     an Assistant Commissioner shall be subordinate to the Deputy Commissioner of Sales Tax;

(iv)    a Deputy Commissioner of Sales Tax shall be a subordinate to the Joint Commissioner of Sales Tax;

(v)      a Joint Commissioner of Sales Tax shall be subordinate to the Additional Commissioner of Sales Tax; and

(vi)    an Additional Commissioner of Sales Tax shall be subordinate to the Special Commissioner of Sales Tax.

(4)     Notwithstanding anything contained in sub-rule (3), the authorities appointed under the designations mentioned in sub-rule (1), shall be subordinate to the Commissioner.

Rule - 4. Constitution of Circles, Ranges and Large Tax-payers Units.

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(1)     The Government may, by notification, constitute areas into circles over which [4][a Deputy Commissioner or,] an [5][an Assistant Commissioner of Sales Tax, a Sales Tax Officer (s), and an Assistant Sales Tax Officer (s)], as the Commissioner may specify by notification, shall exercise jurisdiction:

Provided that one or more Assessment Units may be established under a circle.

(2)     An Assistant Sales Tax Officer or a Sales Tax Officer [6][or an Assistant Commissioner of Sales Tax] [7][or a Deputy Commissioner] exercising jurisdiction over any circle may also exercise jurisdiction over another circle or more circles, if so directed, by the Commissioner, by notification.

(3)     The circles constituted by the Government, by notification, can be reconstituted likewise at any time by notification.

(4)     [8][The Government may, by notification, constitute several circles into ranges over which a Joint Commissioner, a Deputy Commissioner(s), an Assistant Commissioner(s), a Sales Tax Officer(s) and an Assistant Sales Tax Officer(s) shall exercise jurisdiction]

(5)     The ranges constituted by the Government, by notification, may likewise be reconstituted, by a notification.

(6)     [9][The Government may, by notification, constitute one or more Large Tax payers' Unit, hereinafter referred to as LTU, in a range]

(7)     [10][The Commissioner may, by notification, assign any dealer under any circle in the range to the LTU, constituted in that range]

(8)     [11][A Joint Commissioner, Deputy Commissioner, and/or an Assistant Commissioner, a Sales Tax Officer and an Assistant Sales Tax Officer shall discharge such function under the Act and these rules as may be specified by the Commissioner, by notification, in respect of the dealers assigned to that LTU under sub-rule(7)]

(9)     [12][The Government may also, by notification, constitute enforcement ranges comprising different circles over which a Joint Commissioner, a Deputy Commissioner, an Assistant Commissioner, a Sales Tax Officer (s) and/or an Assistant Sales Tax Officer(s) shall exercise jurisdiction.]

Rule - 5. Delegation of Commissioners powers and functions.

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(1)     The Commissioner shall not delegate to any officer, appointed under sub-section (2) of section 3, to assist him, the powers under sub-section (1) of section 84 and sub-section (1) of section 86.

(2)     The Commissioner shall not delegate to any officer, appointed under subsection (2) of section 3, to assist him, the powers under sub-section (1) of section 79, without the prior approval of the Government.

(3)     [13][The Commissioner shall not authorize any officer below the rank of a Sales Tax Officer, to exercise power under sub-section (3) of section 73, and sub-section (3) of section 74]

CHAPTER III INCIDENCE, LEVY AND RATE OF TAX

Rule - 6. Determination of taxable turnover.

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To determine the taxable turnover [14][***], the following amounts shall, subject to the conditions specified, be deducted from the gross turnover [15][***] –

(i)       the turnover [16][***] of goods exempt from tax under section 17;

(ii)      the turnover [17][***] of goods, subject to production of evidence to the satisfaction of the Commissioner, taking place –

(i)       in the course of inter-State trade or commerce; or

(ii)      outside the state; or

(iii)     in the course of import into or export out of territory of India;

(iii)     [18][The turnover of sales of goods, when such goods are intended to be used as capital goods as referred to in sub-section (8) of Section 2 or for use in manufacturing of goods to a dealer under:

(i)       a SEZ, or

(ii)      (N) a STP, or

(iii)     an EHTP, [19][subject to furnishing a certificate issued by the purchasing dealer in a SEZ / STP / EHTP in Form VAT-616 along with the return furnished for the tax period during which the sale takes place and such other evidence to the satisfaction of the Commissioner]

(iv)    [20][the turnover of sale of goods to a EOU when such goods are intended to be used as capital goods as referred to in sub-section (8) of Section 2 or for use in manufacturing of goods, [21][subject to furnishing a certificate issued by the EOU in Form VAT-616 along with the return furnished for the tax period during which the sale takes place and such other evidence to the satisfaction of the Commissioner]]

(v)      [22][in case of works contract, the expenditure incurred towards-

(1)     labour charges for execution of the works;

(2)     amount paid to a sub-contractor for labour and services;

(3)     charges for planning, designing and architect's fees;

(4)     charges for obtaining on hire or otherwise machinery and tools used for the execution of the works contract;

(5)     cost of consumables such as water, electricity, fuel etc. used in the execution of the works contract the property in which is not transferred in the course of execution of a works contract;

(6)     cost of establishment of the contractor to the extent it is relatable to supply of labour and services;

(7)     other similar expenses relatable to supply of labour and services ;

(8)     profit earned by the contractor to the extent it is relatable to supply of labour and services:

Provided that where a dealer executing works contract, fails to produce evidence in support of such expenses as referred to above or such expenses are not ascertainable from the terms and conditions of the contract or the books of accounts maintained for the purpose, a lump sum amount on account of labour, service and like charges in lieu of such expenses shall be determined at the rate specified in the Appendix.]

(vi)    [23][the turnover of sales of goods as specified in Schedule 'C which has suffered tax under the Act, in the State.

(vii)   The turnover of sale of a retailer liable to pay turnover tax, of such goods which are declared u/s 14 of the CST Act and which have been purchased on payment of tax under the Act.

(viii)  The turnover of sale of a retailer, who is liable to pay turnover tax, of such goods on which tax has been paid on M.R.P. under the Act.]

Rule - 7. Adjustment of sale price or tax in relation to a taxable sale, issue of credit note and debit note.

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(1)     Where there is requirement for adjustment of the sale price or tax in relation to a taxable sale, the dealer making such adjustment may issue a credit note or debit note, as the case may be.

(2)     Credit note or debit note as referred to in sub-rule(1) shall be issued within [24][three] months following the tax period, during which the original sale had taken place.

(3)     An adjustment of the sale price and tax in relation to a taxable sale can be made, where-

(a)      the sale is cancelled; or

(b)      the nature of the sale is fundamentally altered; or

(c)      the previously agreed consideration for the sale is altered by agreement with the buyer, whether due to reasons of quality or any other reason, consistent with the normal trade practice; or

(d)      the goods or part thereof are returned to the seller and, the seller accepts the return of the goods subject to the condition that such return of goods is made within [25][three months] from the date of sale:

Provided that-

(i)       a tax invoice in relation to the sale and the amount shown therein as tax charged on the sale are incorrect as a result of occurrence of any one or more of the events specified above; and

(ii)      a return has been filed for the tax period in which the sale took place and an incorrect amount of tax on that sale has been accounted for as a result of the occurrence of any one or more of the events specified above.

(4)     [26][where, due to occurrence of any or more of the events referred to in sub-rule (3) above, credit notes and debit notes are either issued or received, the dealer shall make adjustment as per the particulars contained in the credit notes and debit notes issued and/or received in the manner prescribed in sub-rule (5) and in sub-rule (6).

(5)     Subject to sub-rule(2) and (3) above, the registered dealer, on receipt of credit notes and debit notes in any tax period, shall furnish the details of such credit notes and debit notes and work out its effect on input tax credit in Annexure-V of Form VAT-201; and shall make adjustment in return by reducing or increasing the ITC, as the case may be,

(6)     Subject to sub-rules (2) and (3) above, the registered dealer, on issue of credit notes and/or debit notes by him in any tax period, shall furnish the details of such credit notes and debit notes and work out its effect on output tax in Annexure-V of Form VAT-201 for making adjustment in the return by reducing or increasing the output tax, as the case may be.

(7)     In cases where the input tax credit and/or output tax are adjusted in any tax period, in the manner provided in sub-rule (5) and (6) due to occurrence of any or more of the events referred to in sub-rule (3), the revised return required to be filed as per the provisions of the clause (b) of sub section (4) of section 33 of the Act shall be deemed to have been filed]

[27][***]

Rule - 8. Composition of tax for works contractors.

(1)     [28][A dealer executing works contract shall be eligible to pay tax by way of composition in the manner set out in the following sub-rules, in lieu of tax payable under clauses (a) of section 9, subject to the following conditions and restrictions,

(a)      he shall not purchase or sell goods in course of inter state trade or commerce;

(b)      he shall not dispatch goods to or receive goods from, outside the State, otherwise than by way of sales or purchases, as the case may be; and

(c)      he shall not import goods from or export goods to, outside the territory of India.

(d)      he shall not undertake any business other than execution of works contract]

(2)     A dealer eligible for payment of tax by way of composition under sub-rule (1) shall make an application in Form VAT-601 exercising option for payment of tax by composition together with the details of works executed, gross value of the works so executed, tax deducted at source and the tax assessed, if any, for the year preceding to the year, in which the application under this sub-rule is made.

(3)     An application under sub-rule (2) shall be made along with the particulars as required to be furnished under that sub-rule, [29][by the end of June of the year], for which such application is made.

(4)     An option once exercised shall remain valid for a period of three consecutive years unless one or more of the conditions specified in sub-rule (1) is satisfied at any time during the three years referred to above:

Provided that where such condition is not satisfied in course of a year, the facility of payment of tax by way of composition shall be allowed till the end of that year.

(5)     A dealer exercising option under sub-rule (2), shall pay tax at the rate of four per cent on sixty per cent of the gross value received or receivable towards execution of works for any year, during which such dealer has been granted permission to pay tax by way of composition, under sub-rule (6).

(6)     Upon receipt of an application as referred to in sub-rule(2), the [30][assessing authority] may, if he is satisfied that the application is correct and complete, the information furnished therewith satisfy the eligibility criteria as specified in sub-rule (1) and, after conducting such enquiry as he deems necessary, grant permission to the dealer for payment of tax by way of composition under sub-rule (5) from such date and in such manner, as may be mentioned in the order in Form VAT-602.

(7)     The tax payable by a dealer, who has been granted permission for payment of tax by way of composition under sub-rule (6), shall be deducted at source in accordance with the provisions of rule 58.

(8)     The dealer as referred to in sub-rule (7) shall, furnish to the assessing authority, the name and address of the deducting authority in respect of the works being executed by him in Form VAT-603 A and such deducting authority shall be intimated by the assessing authority in Form VAT-603 to deduct tax at source at such rate and on such percentage of the gross value of the works, as specified in sub-rule (5).

(9)     [31][(a) Notwithstanding anything contained in sub-rules (1) to (8) the assessing authority may, assess the tax payable by a dealer in accordance with the provisions of sections 40, 42, and/or 43 for any tax period(s) in the year(s) for which the dealer has been permitted to pay tax by way of composition in lieu of tax assessable on his taxable turnover, if he is satisfied on the basis of audit or any other information in his possession that the dealer has suppressed the gross value received or receivable towards execution of works contract or violates any of the conditions prescribed in sub-rule (1) during the tax period(s).

(b) where assessment proceeding is initiated as referred to in clause (a), the permission for payment of tax by way of composition shall be deemed to have been revoked for the tax periods to be assessed under sections 40, 42 and/or 43.]

Rule - 9. Dealers liable to pay turnover tax.

(1)     A dealer shall be liable to pay turnover tax on his taxable turnover of sales for each tax period under section 16, if he is a retailer and satisfies the following conditions-

[32][(a) his gross turnover does not exceed rupees [33][forty lakh] during the preceding year.

Explanation-I - For the purpose of this clause, a dealer who is registered under the repealed Act and is deemed to have been registered under the Act and his gross turnover did not exceed rupees twenty lakh in a period of twelve consecutive months ending on the date immediately preceding the appointed day shall, subject to clauses (b), (c), (d) and (e) be liable to pay turnover tax.

Explanation-II - The expression retailer as referred to in sub-rule (1) shall mean and always be deemed to have meant not to include the works contractor]

(b)   he does not purchase or sell goods in course of inter-State trade or commerce;

(c)   he does not despatch goods to or receive goods from, outside the state, otherwise than by way of sales or purchases, as the case may be;

(d)   he does not import goods from or export goods to, outside the territory of India; and

(e)  he does not process or manufacture goods for sale.

[34][(f) he does not execute any works contract]

(2)     A dealer liable to pay turnover tax under sub-rule (1) shall be entitled to collect separately the tax payable on the sale of taxable goods made from the buyers.

(3)     No input tax credit shall be allowed on the sales made by a dealer liable to pay turnover tax under sub-rule (1).

(4)     Where a dealer liable to pay turnover tax under sub-rule (1) [35][purchases or receives any taxable goods within the state] from an unregistered dealer or producer or under circumstances, where, no tax is leviable under the Act, he shall pay tax on the purchase price of such goods at the rate applicable to such goods under Schedule “B” or Schedule “C” of the Act in addition to the turnover tax payable on its sales.

(5)     If a dealer does not satisfy any or more of the conditions specified in sub-rule (1) at any time of a year, during which he has been paying turnover tax or he intends to pay tax as provided under section 14, he may intimate by exercising option in Form VAT-106 to the registering authority, under whose jurisdiction, the place of business of the dealer is situated.

(6)     A dealer, who makes an application under sub-rule (5) shall, subject to the provisions of rule 27, be liable to pay tax in accordance with section 14 and claim input tax credit as admissible under the Act and these rules with effect from the date, he is granted certificate of registration under [36][***] rule 27.

(7)     A dealer of any specific class or category, subject to conditions as may be specified by the Government by notification under section 16, shall pay a turnover tax by way of composition, in lieu of tax payable under section 11 a turnover tax at such percentage of the taxable turnover as may be specified in the said notification.

(8)     In case of a dealer liable to pay turnover tax under sub-rule (7), the provisions of sub-rules (3) and (4) shall also be applicable.

Rule - 9A. Tax on MRP in certain cases.

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(1)     A registered dealer of any particular class or classes, as may be notified by the Government, who is either an importer or a manufacturer may at his option, pay, in lieu of tax payable by him under sub-section(1) of section 14, tax at such rate as specified in that Schedule on the Maximum Retail Price of such goods. Note : Maximum Retail Price (MRP) for the purpose of this rule is the price printed on label or packet of the goods or the regulated retail price of the goods, if any.

(2)     A dealer paying tax on Maximum Retail Price under sub-rule(1) shall separately indicate the Maximum Retail Price of the goods on the body of the tax invoice and also super scribe on it the words “INVOICE FOR TAX ON MRP”.

(3)     A dealer purchasing goods on payment of tax on MRP shall be entitled to [37][collect] output tax equal to the amount of input tax paid by him on the invoice.

Rule - 10. Calculation of tax payable.

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(1)     Subject to sub-rule (2), the tax payable on a taxable sale or a taxable purchase shall be calculated by applying the rate of tax specified in Schedule ‘B’ and Schedule ‘C’ of the Act, to the sale or purchase price of the transaction, as the case may be.

(2)     Where tax charged is included in the sale price of the goods, the tax-exclusive sale price shall be determined by applying the following formula:

A - (A x B)

Where-

“A” is the tax-inclusive sale price, and

“B” is the tax fraction.

(3)     The net tax payable by a dealer for a tax period shall be calculated from the following formula.

(O + P) – I

Where “O” is the total output tax;

“P” is the purchase tax as provided under section 12; and

“I” is the total input tax, during that tax period.

Rule - 11. Calculation of Input Tax Credit.

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(1)     Where a dealer effects sales of goods both, subject to tax and exempt from tax, under the Act, the following calculation for claiming input tax credit shall apply –

(a)      where all the sales effected by a dealer in a tax period are subject to tax under the Act, the whole of the input tax may be claimed as credit.

(b)      where all the sales effected by the dealer for a tax period are exempt from tax under the Act, no input tax may be claimed as credit.

(c)      where a part of the sales effected by a dealer in a tax period are subject to tax and the remaining part of the sale are exempt from tax under the Act, the amount that can be claimed as input tax credit shall be calculated from the following formula:

P x Q

R

Where “P” is the total amount of input tax;

“Q” is the taxable turnover of sales including zero- rated sales: and

“R” is the total amount of all sales including exempt sales:

during that tax period.

(d)      where the fraction Q/R, is less than 0.05, the dealer may not claim any input tax credit for that period.

(e)      where the fraction Q/R is more than 0.95, the dealer may claim the entire input tax as credit for that period.

(2)     Input tax credit on capital goods under clause (e) of sub-section (5) of section 20 shall be allowed in the following manner:

(a)      the total input tax eligible for credit on capital goods for each tax period shall be equally apportioned over a period of thirty six months and –

(i)       in case of a start up or new business, input tax credit shall be allowed as apportioned for each tax period, beginning from the first sale after commencement of commercial production;

(ii)      in case of a continuing business, input tax credit shall be allowed as apportioned for each tax period following the tax period during which such input tax credit accrued.

(b)      the input tax credit, admissible under clause (a), where there is sale of both taxable and tax exempt finished products, shall be determined on application of the principles as provided under sub-rule (1) in respect of each tax period.

Explanation. – For the purpose of this sub-rule, the expression “total input tax” referred to in sub-rule (1) shall be the input tax as apportioned in respect of a tax period:

Provided that for the purpose of calculating input tax credit under this sub-rule, if the value of the capital goods is within rupees one lakh in a tax period, the input tax credit claimed on such amount shall be allowed in one instalment.

(3)     [38][(a) where a dealer effects sale of goods in the course of interstate trade and commerce, the creditable input tax shall be calculated limiting the same to the extent of CST payable under the CST Act 1956 as provided in clause (d) of the proviso to sub section (3) of Section 20 of the Act.

(b) in case of sale of goods in any tax period in the manner referred to in clause (a) above, the registered dealer making such sales, while filing return under the Act for the tax period, shall furnish the particulars of such sales and the corresponding purchases of goods made from the registered dealers inside the State in Annexure-II of Form VAT-201.

(c) In case, the sale of goods in the manner referred to clause (a) above, results in CST payable less than the corresponding input tax on the corresponding purchase of goods, the input tax creditable for the tax period shall be reversed by the amount calculated in the box provided in serial No.5 of Annexure-II in the Return.

(d) In case the CST payable is equal to or more than the corresponding input tax as calculated as per provisions of clause (c), there shall be no reversal of Input Tax Credit.

(e) In case of sale of goods in the manner referred to in clause (a) above during the period commencing from 1st of June 2008 till the month in which sub-rule (3) comes in to force, the registered dealer making such sales, while filing return under the Act for the tax period in which sub-rule (3) comes into force, shall furnish the required information in Annexure-II-A of Form VAT-201.

(f) In case, the sale of goods in the manner referred to clause (a) above during the tax periods referred to in clause (e) above, results in CST payable less than the corresponding input tax on the corresponding purchase of goods, the input tax creditable for the tax period shall be reversed by the amount as calculated in Annexure-ll-A of Form VAT-201.

(4)     Input Tax Credit on stock of goods held, (i) on the date of Registration as admissible under sub-section (11) of Section 20 and (ii) on the date of assignment of TIN to a registered dealer liable to pay tax u/s 11 in lieu of tax payable u/s 16, shall be calculated and availed in the manner prescribed as under: —

(a)      The claim of credit of input tax shall be the tax paid on purchases, duly supported by retail invoices, made from a dealer(s) registered under this Act inside the State within 3 months prior to the date of registration or the date on which TIN is assigned in lieu of SRIN and held in stock on the date of registration or on the date a dealer is assigned with TIN in lieu of SRIN.

(b)      Every dealer granted registration under rule 18 and assigned with TIN and such dealers who are assigned with TIN in lieu of SRIN u/r 27 shall, within 15 days from the date of grant of registration, apply to the assessing authority in Form VAT-607-A along with an inventory showing the quantity and value of goods held in stock as on the date of registration.

(c)      The Assessing Authorities shall verify and allow the claim of credit as found admissible.

(d)      When the claim of credit preferred by a registered dealer is accepted by the assessing authority he shall be communicated in Form VAT-608-A, the amount of claim allowed and the tax period in which it shall be availed:

(e)      The Input Tax allowed shall be adjusted against Output tax payable.

Provided that no credit under this rule shall be allowed to a registered dealer liable to pay turnover tax under clause (b) of section 9.]

Rule - 12. Partial input tax credit.

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(1)     The Government may, by notification, specify such goods or such class of dealers, subject to such conditions and restrictions, as may be specified in that notification, to be allowed input tax credit partially.

(2)     Partial input tax credit as referred to in sub-rule (1) shall be at the proportion of the value of actual utilization of input to the value of output in a tax period.

(3)     Where the processing or manufacturing activity of a dealer results in the production of both taxable goods and goods exempt from tax, input tax credit admissible shall be determined by applying the principles as provided under sub-rule (1) of rule 11 in respect of each tax period.

Explanation. – For the purpose of this sub-rule, the expression “total input tax” referred to in sub-rule (1) of rule 11 shall be the tax on that part of the input, which is actually utilized in processing or manufacturing.

(4)     For the purpose of this rule, the expression “out put” shall mean sale of finished products consequent upon processing or manufacturing or sale of goods used in the execution of works contract, as the case may be.

Rule - 13.[Input tax credit on purchase of goods intended for sale by way of transfer of right to use -

(1)     where goods are purchased within the State by a registered dealer on tax invoice which are intended for sale by way of transfer of right to use, the dealer making such purchases shall furnish the required information in Annexure-III-A of the return and credit of input tax shall be allowed in the tax period during which the first of such sale by way of transfer of right to use is made.

(2)     The balance admissible input tax on account of purchase of goods for sale by way of transfer of right to use remaining unadjusted till the tax period shall be credited in the first tax period after the OVAT (Amendment) Rules 2009 come into force;

(3)     In cases where goods purchased for sale by way of transfer of right to use are not sold but used otherwise, the input tax availed shall be reversed as per provisions of clause (a) of sub section (9) of section 20.][39]

Rule - 14. Reverse tax credit.

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[40](1) [Where input tax credit is already availed of by a registered dealer against purchase of goods and the goods so purchased are used, sold or disposed of in a manner envisaged in sub-section (9) of section 20 which makes the dealer ineligible for Input Tax Credit, the input tax credit so availed of shall be deducted from the input tax credit for the tax period in which such event takes place.]

[41][(2) Where there is a negative input tax credit for a tax period, as a result of deductions made under sub-rule (1) the said negative amount will be paid along with the output tax as in the prescribed return]

(3) [42][***]

(4)   Where a registered dealer fails to keep separate account of purchase of goods for the purpose of determining reverse tax credit under sub-rule (1), the input tax credit already availed shall be reversed in the following manner : –

(i)       In case of a registered dealer manufacturing or processing both taxable goods and goods exempted from tax for sale;

X = U x V

W

Where ‘X’ is the input tax credit to be reversed,

‘U’ is the input tax credit availed during the tax period,

‘V’ is the total sale value of goods manufactured or processed, exempt from tax in that period,

‘W’ is the total sale value of goods manufactured or processed in that tax period.

(ii)      [43][in case of a registered dealer selling taxable goods, a part of which is disposed off in the manner prescribed in sub-rule (1).

X=U x V

W

Where 'X' is the input tax credit to be reversed,

'U' is the input tax credit availed during the tax period,

'V is the total estimated sale value of goods, disposed off in the manner prescribed in sub-rule (1) above in that period,

'W' is the total sale value of goods including the sale value of goods disposed off in the manner prescribed in sub-rule (1) above during that tax period] 

[44][(5) Where any registered dealer assigned with TIN sells any goods at a price less than the corresponding purchase price in any tax period, he shall furnish the particulars of sale of such goods in Annexure - VI of Form VAT-201.

(6)   In the case of sale of goods in the manner referred to in sub-rule (5), which results in output tax less than the corresponding input tax paid on the purchase of such goods, the input tax creditable for the tax period shall be reversed as calculated in Annexure-VI of Form VAT-201.

(7)   A registered dealer making sale of goods in the manner referred to in sub-rule (5), during the period commencing from 1st of June 2008 till the date on which sub-rule (5) and (6) come into force shall furnish information of such sale effected during the period mentioned above and the corresponding purchase price in Annexure-VI-A of Form VAT-201; and input tax credit for the tax period in which sub-rule (6) comes into force shall be reduced by the amount as calculated in the said Annexure.]

CHAPTER IV REGISTRATION OF DEALERS, AMENDMENT AND CANCELLATION OF CERTIFICATE OF REGISTRATION

Rule - 15.Application for registration.

(1)    Every dealer, who does not have more than one place of business, liable to be registered under sub-section (1) of section 25 shall make an application for registration in Form VAT-101 to the registering authority under whose jurisdiction the place of business is situated.

[45][(2) Any person, not being liable to pay tax under section 10 of the Act who intends to establish a business for manufacturing of goods of value exceeding Rupees one lakh for sale, or to carry on business in respect of goods of value exceeding Rupees three lakhs during a period of twelve consecutive months, shall make an application in Form VAT-101 to the registering Authority under whose jurisdiction the place of business is situated, for registration under sub section(1) of section 26 of the Act] 

(3)   Every dealer, who has more than one place of business within the State, liable to be registered under sub-section (1) of section 25 shall declare one of such places of business as the principal place of business and make an application in Form VAT-101 to the registering authority under whose jurisdiction such principal place of business is situated.

(4) [46][***]

(5)   For the purpose of making an application for registration under this rule, a warehouse or godown, where no books of account are kept, shall not be deemed to be a place of business.

(6) [47][***]

(7)   Every dealer registered under the repealed Act, whose certificate of registration remains valid on the date immediately preceding the appointed day and who is liable to pay tax under the Act, shall be deemed to be a registered dealer under subsection (5) of section 25:

[48][Provided that where any dealer has more than one place of business inside the State falling under the jurisdiction of different registering authorities and such dealer failing to intimate the principal place of business to the registering authority within the stipulated time period, the registering authority (s) may report such cases to the Commissioner for deciding the principal place of business. The Commissioner, on receipt of such information or on his own motion and after such enquiry as deemed necessary may decide the principal place of business and the registering authority concerned may be intimated to issue certificate of registration to the dealer]

(8) [49][***]

[50][(8-a) - Every dealer, who is deemed to be registered under sub-section (5) of section 25 and liable to pay VAT under section 11 or liable to pay turnover tax under section 16, and who has not submitted the information required to be submitted in Form VAT-1 shall furnish the said information and declarations in Form VAT-1 to the registering authority, within three months from the date of effect of this sub-rule.

(8-b) in cases where dealers deemed to be registered under sub section (5) of section 25 and assigned with TIN have furnished the required information in VAT-1, but registration certificates have not been issued, such pending cases shall be transferred to the circle office for issue of registration certificate.]

(9)   The application for registration in Form VAT-101 shall be accompanied with fee as specified in rule 125 and declarations:-.

(a)      in respect of the address of additional places of business, branch offices, warehouses or godowns situated inside the State in Form VAT-101-A.

(b)      in respect of the address of additional places of business, branch offices, warehouses or godowns situated outside the State in Form VAT-101-B.

(c)      in respect of the personal details of the proprietor, each of the partners, directors, authorised officer or karta of the business in Form VAT-101-C, affixing thereto two sets of specimen signature and two copies of self-signed passport size photographs of :

(i)       the proprietor, in case the applicant is a proprietorship concern;

(ii)      the partners (each of the partners individually), in case the applicant is a partnership firm;

(iii)     the managing director, director or the officer duly authorised by the Board of Directors through a resolution, in case the applicant is a company incorporated under the Companies Act, 1956;

(iv)    the president, secretary or duly authorised officer, in case the applicant is an association of persons;

(v)      the karta, in case the applicant is a Hindu Undivided Family;

and the said form shall be duly filled in, signed individually by the aforesaid person(s), as applicable, and verified in the manner specified in the form.

(d)      in respect of the bona fides of the applicant by two registered dealers;

(e)      in respect of name and address alongwith the signature of the manager or employee of the business or any other person associated with the business in Form VAT-101-D, who have been authorised to receive notice, order or communication under the Act and these rules on behalf of the dealer and the service of such notice, order or communication on whom, shall be binding on the dealer:

Provided that any change in the information furnished in Form VAT-101-D shall be intimated to the registering authority within seven days from the date of occurrence of such change and the intimation shall be accompanied by a fresh declaration in Form VAT-101-D incorporating therein such changes.

[51][(10) in cases where registration certificates have not been issued on applications received in the range office in Form VAT-101 such pending applications, with all enclosures shall be transferred within 15 days from the date of effect of this sub-rule to the circle office under which the place of business or the principal place of business, in case there is more than one place of business, of the dealer is situated.]

[52][(11) Not-withstanding anything provided in these rules, it shall be mandatory for the applicants to furnish self signed copy of the PAN card issued in his favour for new registration and the dealers already registered under the Act shall furnish the same within four months from the date of effect of this sub- rule to the concerned registering authority.]

Rule - 16. Registration of dealers under special circumstances.

–

(1)     Where a dealer has no fixed place of business in the State but sells or supplies or purchases goods either direct or through travelling agents, salesmen or having one or more place(s) of business in the State, sells, supplies or purchases goods in circles or ranges, other than those in which such place(s) of business are situated, the Commissioner may, notwithstanding anything contained in these rules, by general or special order in writing, direct that such dealer shall be registered in a circle [53][***] constituted by the Government and specified by him in such order

(2)     A dealer shall make an application in form VAT-101 to the Commissioner for registration under sub-rule (1)

(3)     Where the Commissioner, after causing such enquiries as he deems necessary, is satisfied that the application is correct and complete with the information and declaration as required therein or may have been required in course of such enquiries have been furnished, may, by order, under sub-rule (1), direct the dealer to be registered in the circle [54][***] as specified in that order.

(4)     The registration of the dealer under sub-rule (1) shall be subject to the provisions of rules 15, 18 and 24.

Rule - 17. Failure to be registered.

–

(1)     If a dealer liable to pay tax under the Act fails to get himself registered under sub-rule (1) of rule 15, the registering authority shall issue him a notice to show cause in Form VAT-111 and, after hearing him, impose penalty under sub-section (1) of section 28.

(2)     Where penalty under sub-section (1) of section 28 is imposed on the dealer for failure to get registered under sub-rule (1), the registering authority shall issue a notice of demand in Form VAT-313 along with the order imposing penalty.

Rule - 18. Issue of certificate of registration.

–

(1)     Where the registering authority, after examination of the application for grant of certificate of registration and after conducting or causing to be conducted such enquiries as he deems necessary, is satisfied that the applicant-

(i)       is a bona fide dealer;

(ii)      has furnished correct and complete particulars, information, evidence and declarations as specified in rule 15 or as may have been required;

(iii)     has duly complied with any directions given;

(iv)    has filled in the application for registration correctly and completely and has paid the prescribed fee;

(v)      has paid the dues payable by him in respect of any business under the provisions of the Act or repealed Act or Central Sales Tax Act, 1956; and

(vi)    has paid in full, the security if any, demanded under rule 24, or any person associated with him was earlier granted a certificate of registration either under the Act or under the repealed Act, and the grounds for which such certificate was cancelled, no longer exists, he shall register the dealer and issue him a certificate of registration.

(2)     Where a dealer is deemed to be a registered dealer under the Act in accordance with sub-rule (7) of rule 15, the registering authority of the circle or range, as the case may be, shall register and issue him a certificate of registration and the certificate of registration so issued shall be effective from the appointed day.

Provided that where a dealer registered under section 9-C of the repealed Act is deemed to be registered under the Act, the registering authority of the range shall issue him a certificate of registration, and the certificate of registration so issued shall remain in force till the expiry of the period of validity of registration under the repealed Act.

(3)     The certificate of registration in respect of a dealer liable to pay tax under clause (a) of section 9 shall be in Form VAT-103 and the certificate of registration in respect of dealers liable to pay tax under clause (b) of section 9 shall be in Form VAT001.

(4)     The certificate of registration in respect of a person, who has been granted voluntary registration under sub-section (1) of section 26 shall be in Form VAT-103.

[55][Provided that in case of application filed under clause (b) of sub-section (1) of section 26 by a retailer for registration as a SRIN dealer, the certificate of registration shall be in form VAT-001.]

(5)     The certificate of registration granted under [56][clause (a) of sub section (1) of section 26 of the Act] shall be in force for such period as may be specified therein:

Provided that for good and sufficient reasons to the satisfaction of the registering authority, the period for which the registration is in force can be extended, but in no case such extension shall be allowed beyond a period of one year at a time.

(6)     [57][A dealer who on application under clause (a) of sub-section (1) of section 26 has been granted certificate of registration under sub-rule (1), shall, on commencement of commercial production, intimate in writing to the registering authority along with the certificate of registration issued for endorsement of the date of such production.]

Rule - 19. Assignment of Taxpayers’ Identification Number (TIN) and Small Retailers Identification Number (SRIN) . –

(1)     Every dealer, who has been issued with a certificate of registration in Form VAT-103, shall be assigned with a Taxpayers’ Identification Number (hereinafter referred to as TIN) and this number shall be mentioned in the certificate of registration.

(2)     Every dealer, who is deemed to be registered under sub-section (5) of section 25 and has already been assigned with TIN under the repealed Act, shall not be assigned with any fresh TIN and the TIN so assigned shall be mentioned in the certificate of registration:

Provided that where a dealer is deemed to be registered under sub-section (5) of section 25 and has not been assigned with a TIN under the repealed Act, he shall be assigned, subject to the provisions of sub-rule (1) with a TIN and shall be mentioned in the certificate of registration.

(3)     The TIN shall be of a unique number comprising eleven numerals, the first two numerals representing the State code and it shall be mentioned prominently on each tax invoice, return, documents relating to inter-state transactions, exports and all correspondences with any Sales Tax authority, the Commissioner or the Tribunal, as the case may be.

(4)     Every dealer, who has been granted certificate of registration in Form VAT- 001, shall be assigned with a Small Retailers’ Identification Number (hereinafter referred to as SRIN) and this number shall be mentioned in the certificate of registration.

(5)     The SRIN shall comprise seven numerals, the first two numerals representing the circle code.

(6)     A dealer referred to in sub-rule (4) shall mention his SRIN in all retail invoices issued, returns furnished and all correspondences with any Sales Tax authority, the Commissioner or the Tribunal, as the case may be.

(7)     A dealer deemed to be registered under sub-rule (7) of rule 15 shall be assigned with a TIN or SRIN, subject to the provisions of sub-rules (1), (2) and (4).

Rule - 20.Certificate of Registration not transferable.

–

No certificate of registration issued under sub-rule (1) or (2) of rule 18 and TIN and SRIN assigned under sub-rule (1), (2) or (4) of rule 19 shall be transferred.

Rule - 21. Issue of certificate of registration to the dealer.

–

The registering authority shall provide the dealer with a certificate of registration for the principal place of business and a copy of it for each of the additional place of business specified therein.

Rule - 22. Display of certificate of registration.

–

The certificate of registration shall be kept and displayed at a conspicuous place in the principal place of business and additional place of business to which it relates.

Rule - 23. Issue of duplicate copy of certificate of registration.

–

(1)     Any dealer may, upon application, obtain from the registering authority, on payment of a fee as specified in rule 125, a duplicate copy of the certificate of registration issued in his favour which may have been lost, destroyed or mutilated.

(2)     Where a dealer makes an application for a duplicate copy of the certificate of registration under sub-rule (1), he shall surrender alongwith the application, the mutilated copy of such certificate of registration or file an affidavit swearing therein the circumstances under which the certificate of registration was lost or destroyed and in case of loss, the steps taken to recover the same.

(3)     The loss of any certificate of registration shall be reported to the registering authority soon after the loss comes to the knowledge of the dealer and the fact of loss shall be widely publicised in local daily newspapers.

Rule - 24. Demand of security.

–

(1)     The registering authority, for good and sufficient reasons and for ensuring lawful conduct of a registered dealer and safe custody of waybills or any other forms issued under the Act and these rules may require such dealer, to pay within fourteen days from the date of receipt of the notice in Form VAT-104, a reasonable security or additional security as demanded for the purpose.

(2)     The registering authority, for good and sufficient reasons may, require a dealer, who has applied for registration under the Act to pay, within fourteen days, from the date of receipt of the notice demanding security in Form VAT-104, to pay reasonable security.

(3)     The security or additional security as referred to in sub-rule (1) and sub-rule (2), shall not exceed the tax estimated to be payable by the dealer for one year.

(4)     A dealer may furnish security as required under sub-rule (1) or (2) in any of the following manners :-

(a)      by depositing as security in the Government Treasury, the amount fixed by the said authority; or

[58][(aa) through e-payment; or]

(b)      by depositing security amount in the Post Office Savings Bank and pledging the Pass Book and depositing it with the said authority; or

(c)      by pledging and depositing with the authority, National Savings Certificate for the amount of security fixed; or

(d)      by mortgaging immovable property free from all encumbrances whatsoever, in favour of such authority for the amount of security demanded.

(5)     Any security furnished under the repealed Act by a dealer, deemed to have been registered under the Act, shall be deemed to be security for the purposes of the Act:

Provided that any additional security demanded under sub-rule (1) shall be in addition to the security as referred to in this sub-rule.

Rule - 25. Adjustment of security for the satisfaction of arrear of tax etc.

–

The registering authority may, at any time, adjust security paid under sub-rule (1) or (2) of rule 24 for satisfaction of any amount of tax, interest or penalty or composition money, if any, or any other amount under the Act and these rules, remaining unpaid.

Rule - 26. Refund of security.

–

(1)     If for any reason and subject to the provisions of rule 25, the security or part thereof, paid under sub-rule (1) or (2) of rule 24, is required to be refunded to the dealer, the said dealer shall make an application to the registering authority in Form VAT -105.

(2)     The registering authority, on receipt of such application, shall conduct or cause to be conducted such enquiries as he deems necessary, and if he is satisfied that the dealer is not in default of any dues under the Act and these rules, he may order release of the security held under pledge and return the document to the dealer on receipt of proper acknowledgement.

(3)     Where the registering authority is satisfied after conducting or causing to be conducted enquiries as referred to in sub-rule (2) that the dealer is in default of any amount of tax, interest or penalty or composition money or any other amount under the Act and these rules, he may adjust the security paid for the satisfaction of such outstanding arrear dues and release the balance, if any, to the dealer, after receipt of proper acknowledgment.

Rule - 27.Transition of registered dealers paying turnover tax to registration for payment of VAT.

–

[59][(1) Where a registered dealer, who has been granted certificate of registration under the Act and assigned with SRIN,-

(a)      elects, by exercising option in writing, to pay VAT as specified in clause (a) of section 9; or

(b)      intends to purchase or sell goods in course of inter-State trade or commerce; or

(c)      intends to despatch or receive goods otherwise than by way of sales to or from outside the State; or

(d)      whose gross turnover exceeds [60][rupees forty lakh] at any time during the year in which he has been paying turnover tax, he shall make an application in Form VAT-106 to the registering authority for issue of certificate of registration and assignment of TIN under sub-rule (1) of rule 19]

(2)   Where the registering authority [61][***], after examination of the application furnished under sub-rule (1) and, after conducting or causing to be conducted such enquiries, as he may deem necessary, is satisfied that the particulars furnished in the application are correct and complete and the claim of the dealer for assignment of TIN is admissible under the Act, he may issue a certificate of registration to such applicant in [62][Form VAT-103] and assign him with a TIN:

Provided that when the certificate of registration under this sub-rule is issued, the certificate of registration already issued in Form VAT-001 alongwith the SRIN assigned shall be deemed to have been cancelled and such cancellation shall take effect from the date, the dealer is registered under sub-rule (2):

Provided further that a dealer on being registered under sub-rule (2) shall surrender the certificate of registration issued in Form VAT-001 along with the SRIN assigned to the registering authority of the circle for cancellation.

[63][(3)If it comes to the knowledge of the registering authority that any of the events as specified in sub-rule (1) has occurred for which, the dealer is no-longer liable to pay turn over tax as specified in clause (b) of section 9 and that the dealer has failed to make an application under sub-rule (1), the said authority shall issue a certificate of registration in form VAT-103 and assign him with a TIN:

Provided that the certificate of registration issued in Form VAT-001 along with the SRIN assigned to the dealer registered under this sub-rule shall be deemed to have been cancelled from the date of issue of such certificate of registration, and the dealer registered in the manner prescribed above shall surrender the certificate of registration issued in Form VAT-001 to the registering authority for cancellation.]

(4) [64][***]

(5)   The certificate of registration granted under sub-rule (2) or [65][sub-rule (3)] shall be effective from the date of order granting such registration and input tax credit shall be allowed from that date. 

Rule - [27A- Transition of registered dealer paying VAT to registration for payment of turnover tax-

(1)     where a registered dealer, who has been granted certificate of registration under the Act and assigned with TIN;

(a)      is no longer effecting purchase or sale of goods in course of interstate trade or commerce;

(b)      is no longer dispatching or receiving goods otherwise than by way of sales to or from outside the State; and

(c)      whose gross turnover has, during each of the preceding three consecutive years failed to exceed rupees [66][forty lakh]; the dealer may make an application in Form VAT-106A to the registering authority for issue of certificate of registration and assignment of SRIN under sub-rule (4) of rule 19.

(2)     where the registering authority, after examination of the application furnished under sub-rule (1) and, after conducting or causing to be conducted such enquiries, as he may deem necessary, is satisfied that the particulars furnished in the application are correct and complete in all respect and the claim of the dealer for assignment of SRIN is admissible under the Act, he may issue a certificate of registration to such applicant in Form VAT-001 and assign him with a SRIN:

Provided that when the certificate of registration under this sub-rule is issued, the certificate of registration already issued in Form VAT-103 alongwith the TIN assigned shall be deemed to have been cancelled and such cancellation shall take effect from the date, the dealer is issued with a certificate of registration under sub-rule (2):

Provided further that the dealer, on being issued registration certificate in Form VAT-001 under sub-rule (2) shall surrender the certificate of registration issued in Form VAT-103 along with the TIN assigned to the registering authority for cancellation.

(3)     The certificate of registration granted under sub-rule (2) shall be effective from the date of order granting such registration and no input tax credit shall be allowed from that date.

[67][Provided that where the dealer produces the evidence to the satisfaction of the registering authority to the effect that the ground on which the certificate has been so suspended is erroneous or not applicable, as the case may be, in that case the restoration shall take effect from the date of suspension.]

(4)     On assignment of SRIN to a registered dealer after cancellation of TIN under sub-rule (2), the input tax credit available on the date of cancellation of TIN, if any, shall be deemed to have been reduced to nil.

(5)     In the event of cancellation of TIN and assignment of SRIN to a registered dealer under sub-rule (2), the provisions contained in sub-sections (7), (8) and (9) of section 31 of the Act shall mutatis-mutandis apply.] [68]

Rule - 28. Transition of works contractors paying VAT to payment of tax by composition.

–

Where a dealer being a works contractor is granted permission for payment of tax by way of composition under sub-rule (6) of rule 8, the certificate of registration issued in Form VAT-103 and TIN assigned shall be deemed to have been cancelled from the date of grant of such permission and a certificate of registration in Form VAT-001 along with SRIN shall be assigned by the registering authority of the circle from such date:

Provided that a dealer issued with certificate of registration in Form VAT-001 and assigned with SRIN under this rule, shall surrender the certificate of registration in Form VAT-103 along with TIN to the registering authority [69][***] for cancellation.

Rule - 29.Amendment of certificate of registration.

–

(1)     Where a registered dealer effects or comes to know of any change as specified in sub-section (1) of section 32, he shall, within fourteen days, from the date of occurrence of the change or the change coming to his knowledge, intimate such change in Form VAT-108 alongwith the certificate of registration to the registering authority [70][***], for amendment of the certificate of registration.

(2)     Where there is reconstitution of the partnership, in case of a partnership firm, and as a result of such reconstitution, the business-entity remains unchanged, the application under sub-rule (1) shall be accompanied with a copy of the deed of reconstitution of the partnership.

(3)     The registering authority, upon receipt of an application under sub-rule (1), shall examine the application, conduct or cause to be conducted such enquiries as he deems necessary, and if he is satisfied that the application is correct and complete and that the amendment of the certificate of registration as applied for is in conformity with the provisions of section 32, the said authority shall allow such amendment:

Provided that where there is reconstitution of the partnership, in case of a partnership firm, by admitting new partners, the amendment of the certificate of registration shall be subject to the provisions of clause (c) of sub-rule (9) of rule 15 and sub-rule (1) of rule 18.

(4)     Where a certificate of registration is amended, a fresh certificate of registration incorporating the changes, in respect of which, the amendment has been effected, shall be issued and the certificate of registration submitted by the dealer shall be cancelled.

(5)     Where a fresh certificate of registration consequent upon amendment under sub-rule (4) is issued, the date of amendment of the certificate of registration shall be mentioned on the certificate of registration issued.

(6)     Where a dealer intends to change his [71][place of business or principal place of business, in case of dealers having more than one place of business] from the jurisdiction of one registering authority to the jurisdiction of another registering authority, he shall make an application in Form VAT -108, with full particulars of change in address and the reasons for such change, to the registering authority, under whose jurisdiction, he is registered.

(7)     The registering authority, upon receipt of an application under sub-rule (6), shall conduct or cause to be conducted such enquiries, as he deems necessary, and if he is satisfied that such change is bona fide and amendment of the certificate of registration is justified under the Act and these rules, the said authority shall send the registration record of the dealer to his counterpart, to whose jurisdiction the [72][place of business or principal place of business, as the case may be] has been shifted or changed.

(8)     The registering authority, on receipt of the registration record of a dealer, who had made application under sub-rule (6), shall conduct or cause to be conducted such enquiries as he deems necessary, and if he is satisfied that there has actually been a change and the change is bona fide, he shall amend the registration certificate incorporating such amendment or issue a fresh registration certificate, but with the same TIN.

(9)     If any registered dealer sells or disposes of his business or place of business to any person or any other registered dealer, he shall inform the registering authority, under whose jurisdiction he is registered, in Form VAT-109, within fourteen days from the date of the sale or disposal of the business.

Rule - 30. Cancellation of certificate of registration. –

(1)     Where a registered dealer –

(a)      discontinues his business or transfers his business to a dealer, registered under the Act; or

(b)      being an incorporated body ceases to exist; or

(c)      [73][***]

(d)      being a firm or association of persons is dissolved; or

(e)      ceases to be liable to pay tax under the Act, he shall make an application together with the registration certificate issued for cancellation thereof to the registering authority [74][***], within a period of fourteen days from the date of occurrence of such event.

Explanation. – The expression “ceases to be liable to pay tax under the Act” as referred to in clause (e) shall be construed in accordance with the provisions of sub- section (2) of section 10.

(2)     Where the registering authority, after conducting or causing to be conducted such enquires, as he deems necessary, is satisfied that the business has been discontinued or closed as a result of the occurrence of any of the events specified in sub-rule (1), he shall, by an order in writing, cancel the certificate of registration with effect from the date specified in that order.

(3)     In the event of death of a dealer being the proprietor of the business registered under the Act, the legal heir shall, within fourteen days from the date of death, inform in writing, the registering authority [75][***], the date of his death and produce before such authority such evidence, as may be required, and the registering authority either on receipt of such application, or otherwise, cancel the certificate of registration immediately by an order in writing from the date specified in that order.

(4)     [76][In the event of any change altering the basic status of the dealer as enunciated in subsection (6) of section 32, the dealer shall, within 15 days of such occurrence, inform in writing to the registering authority, the date of such change and produce before such authority, such evidence as may be required and the registering authority shall, on receipt of such intimation, or otherwise, cancel the certificate of registration immediately by an order in writing from the date specified in that order.

(5)     Where the registration certificate of any dealer is cancelled under sub-rule (4) due to occurrence of a change altering the basic status of a dealer, the registering authority shall issue a new Certificate of Registration on application filed by such dealer in the manner prescribed under rule-15]

Rule - 31. Cancellation of certificate of registration on failure to make payment of the security demanded.

–

If a registered dealer fails to make payment of security in terms of the demand notice issued under sub-rule (1) or (2) of rule 24, the registering authority, after giving the dealer a reasonable opportunity of being heard, may order cancellation of registration with effect from a date to be specified in that order.

Rule - 32. Suspension of certificate of registration.

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(1)     Where a dealer commits one or more of the offences as specified under sub-section (1) of section 30, the registering authority may suspend the registration of such dealer.

(2)     Where the registration of any dealer has been suspended, such dealer shall be immediately intimated the fact of suspension of registration with a direction, by notice in Form VAT-110, to produce records, documents and evidence as specified in sub-section (2) of section 30, on such date, time and place as may be mentioned in the said notice.

(3)     Where the certificate of registration suspended, is restored in accordance with sub-section (3) of section 30, the restoration shall take effect from the date of order restoring the certificate of registration.

(4)     Where the certificate of registration suspended is cancelled in accordance with the provision of sub-section (5) of section 31, the cancellation shall take effect from the date of order of such cancellation.

(5)     In all cases, where the certificate of registration is suspended, restored or cancelled, the registering authority shall display the fact in the office notice board, publish such fact in the Commercial Tax Gazette and the official website of the Commissioner of Commercial Taxes, Orissa.

Rule - 33.Publication of list of registered dealers/certificate of registration cancelled/suspended/restored in the Orissa Commercial Taxes Gazette.

Publication of the list of registered dealers/certificate of registration cancelled/suspended/restoration of suspended certificate of registration shall be made in the following formats:

I.         Dealers registered under the Act during the month of

A.        In case of dealers assigned with TIN

B.        In case of dealers assigned with SRIN

II.       Suspension of Certificate of registration.

A.        In case of dealers assigned with TIN

B.        In case of dealers assigned with SRIN

III.     Restoration of suspended certificate of registration.

A.        In case of dealers assigned with TIN

B.        In case of dealers assigned with SRIN

IV.      Cancellation of certificate of registration

A.        In case of dealers assigned with TIN 

B.        In case of dealers assigned with SRIN

CHAPTER – V RETURN AND RETURN DEFAULTS

Rule - 34.Tax return.

(1)     [83][(a) Every dealer registered under the Act and assigned with TIN shall furnish return for each tax period in Form VAT-201 within twenty-one days from the date of expiry of such tax period to the [84][Deputy /] Assistant Commissioner / Sales Tax Officer of the circle / assessment unit, as the case may be, where, the place of business or the principal place of business is located:

Provided that the period of twenty-one days for furnishing of return shall not be applicable for return to be furnished for the first tax period after commencement of the Act which shall be furnished within 31st day of May 2005.

[85][Provided further that, with prior approval of the Government, the Commissioner may prescribe, by notification, any different return form in respect of any class or classes of dealers.]

(b) Subject to sub-rules (2), (3), (6) and (9) of rule 34, the return required to be filed under sub-section (4) of section 33 shall be in Form VAT-201 [86][or in such other form as prescribed by the Commissioner, by notification with prior approval of the Government]. The dealer shall file such revised return within three months from the end of the tax period, to which the original return relates]

[87][(c) From such date and in such manners as may be prescribed by the Commissioner by notification, the Return required to be furnished under clause (a) or (b) of sub-rule (1), sub-rule (6), 6A and (10) can also be filed electronically.

(d) The Commissioner may, by notification specify the date from which all or a certain class of dealers shall, subject to such conditions as may be specified, submit return through the electronic mode only.]

(2)     For the purpose of sub-rule (1), each tax period shall ordinarily comprise a [88][quarter].

[89][Provided that, for the dealers whose records are assigned to LTU through a notification issued under sub-rule (7) of rule 4 and such other dealers as will be specified by the Commissioner through a notification issued under sub-rule (3) of this rule, the tax period shall comprise a 'month'.]

(3)     The Commissioner may for reasons to be recorded in writing, specify by notification, any different period as the tax period in respect of any dealer or class or classes of dealers:

[90][***]

(4)     Where the dealer has more than one place of business under the jurisdiction of different registering authorities and has been issued with certificate of registration in respect of the principal place of business, he shall furnish a consolidated return in respect of all the places of business [91][to the [92][Deputy/] Assistant Commissioner / Sales Tax Officer of the circle / assessment unit, as the case may be] under whose jurisdiction such principal place of business is situated.

(5)     If the Commissioner is satisfied that a dealer furnishing return under sub-rule (4) has failed to maintain books of account in respect of any or more places of business or the return furnished is found to be incorrect and incomplete or for any violation of provisions of the Act or these rules, he may direct such dealer by order, to furnish separate return in respect of each of his place of business.

(6)     [93][Every dealer registered under the Act and assigned with SRIN shall furnish return in Form VAT-002 to the [94][Deputy/] Assistant Commissioner / Sales Tax Officer, as the case may be, of the circle / assessment unit in which the place of business of the dealer is located, for each tax period comprising a quarter within twenty-one days from the end of the quarter] 

[95][6A. In addition to the return filed under sub-rule (1) or sub-rule (6) and subject to sub-rule (4) and (5), every dealer registered under the Act shall furnish an annual return within six months from the end of the year in Form 201-A]

(7)     [96][***].

(8)     [97][***]

(9)     If there is change in the rate of tax of any goods in which the dealer deals in during a tax period, a separate return in respect of each part of the tax period showing the application of such different rates of tax shall be furnished.

(10)   Where the business of a dealer, filing return under sub-rule (1)or (6) is closed down or ceases to function or the registration certificate of the dealer is cancelled during the course of the tax period, a final return in Form VAT-202 for the period during which the business was in operation during that tax period, shall be furnished [98][to the [99][Deputy/] Assistant Commissioner or Sales Tax Officer of circle having jurisdiction]

(11)   The final return under sub-rule (10) shall be furnished within fourteen days from the date of closure or cessation of the business.

(12)   [100][***]

Rule - 35.Payment of tax.

–

[101][(1) The return under sub-sections (1) to (5) of section 33 shall be accompanied by a receipt from the Government Treasury or a crossed demand draft drawn on any scheduled bank or a banker's cheque issued by a scheduled bank in favour of the [102][Deputy/] Assistant Commissioner / the Sales Tax Officer of the circle / assessment unit, as the case may be, for the full amount of tax payable as per the return.

Provided that for the month/quarter ending on 31st March every year, tax due for the period up to 25th March, calculated on tentative basis, shall be paid on or before 31st March of that year provisionally, subject to submission of return for the month / quarter ending on 31st March, as usual, on 21st of April of the succeeding year. Balance tax payable for the remaining period of the said tax period shall be paid on or before the prescribed date for filing return]

[103][Provided further that, the Government may ask a certain or all class of dealers to make payment through e-payment only from the date to be notified by the Government.]

(2) [104][***]

Rule - 36. Notice to un-registered dealer to file return.

–

(1)     Where the Commissioner is satisfied that the turnover of sales or turnover of purchases, as the case may be, of a dealer, exceeded or likely to exceed the taxable limit within such period as referred to in sub-section (2) of section 33, he shall issue a notice to such dealer in Form VAT -204 [105][calling upon him to file return in Form VAT-204-A within fourteen days] for such tax period and from the date the dealer is liable or likely to be liable to pay tax, as may be specified in that notice.

(2)     If the dealer referred to in sub-rule (1) fails to furnish the return, as required under sub-rule(1), the Commissioner [106][shall issue notice in Form VAT-207 requiring such dealer to show cause within fourteen days from the receipt of the notice, as to why penalty under sub-section (3) of section 34 shall not be imposed, and may proceed to assess the dealer in accordance with the procedure prescribed in rule 51]

(3)     [107][In the cases where the dealer fails to respond to the notice issued under sub-rule (2) or comply with the requirement of such notice, penalty shall be imposed under sub-section (3) of section 34 and an order shall be issued in Form VAT-208]

Rule - 37. Return in respect of the period from the date of liability to the date immediately before the date of order granting registration.

–

Where a certificate of registration is issued to the dealer under sub-rule (1) of rule 18 and the date of liability to pay tax by such dealer precedes the date of order granting such certificate of registration, the dealer, after being registered, shall, within twenty-one days from the date of order, furnish all the returns under sub-rule (1) or (6) of rule 34 along with receipted challan or crossed demand draft or banker’s cheque evidencing payment of tax payable by such dealer according to such returns for the period, comprising the tax period or tax periods or any part thereof, as the case may be, commencing from the date of liability to pay tax to the date immediately preceding the date of order granting registration.

Rule - 38. Payment of interest for delayed payment of tax or non-payment of tax as per returns furnished before assessment.

(1)     Every dealer required to pay interest under sub-section (1) of section 34, in respect of any tax period, shall pay such interest at the time of making payment of tax, payable in respect of such tax period, [108][***], whichever is earlier.

(2)     The dealer shall furnish a statement showing details of calculation of the amount of interest payable as referred to in sub-rule(1) and furnish such statement along with the receipted challan [109][or e-challan] or crossed demand draft or banker’s cheque evidencing payment of such interest.

Rule - 39.[ Levy of interest and penalty for default of payment of tax and / or interest due].

[110][(1) (a) Where a dealer required to file return under section 33 commits any one or more of the offences referred to in sub-sections (1), (2) or (3) of section 34, the commissioner may issue notice in Form VAT-205 calling upon the said dealer to show cause as to why interest and / or penalty shall not be levied under sub-section(1) and sub-section (2) and/or (3) of section 34 respectively.

(b) Where the dealer fails to respond to such notice or explain the default in conditions specified in the notice to the satisfaction of the authority issuing the notice under sub-rule (1), interest shall be levied under sub-section (1) and / or penalty shall be imposed under sub-section (2) and / or sub-section (3) as the case may be, of section 34 and an order to that effect shall be issued in Form VAT-206][111]

(2) [112][***]

(3) [113][The interest and/or penalty imposed under sub-rule (1) shall be paid by way of a receipted challan from the Government Treasury [114][or e-challan] or crossed demand draft or banker's cheque, drawn in favour of the [115][Deputy/] Assistant Commissioner or Sales Tax Officer of the circle]

Rule - 40. Scrutiny of returns.

(1)     All the returns received under rule 34 shall be subject to manual or system-based scrutiny.

(2)     If as a result of such scrutiny, the dealer is found to have made payment of tax, less than what is payable by him for the tax period, as per the return furnished, the assessing authority shall issue a notice in Form VAT-209 to the dealer directing him to pay the balance tax and interest thereon by such date as may be specified in that notice.

CHAPTER VI AUDIT, ASSESSMENT, RECOVERY OF TAX AND REFUND

Rule - 41. Selection of dealers for tax audit.

(1)     [116][The Commissioner shall, under the provisions of section 41, select a certain number of registered dealers ordinarily before the close of the year for audit during the following year:

Provided that, while selecting the registered dealers for audit, the Commissioner shall also specify the period(s) for audit, not being a period which has ended five years previous to the year during which audit is to be taken-up]

(2)     The Commissioner, where considers it necessary to safeguard the interest of revenue or where any enquiry is required to be conducted on any specific issue or issues relating to any dealer, or class or classes of dealers, on being referred by an officer appointed under sub-section (2) of section 3, may direct audit to be taken up.

(3)     The Commissioner may, on the basis of apparent revenue risk of the individual dealers, make selection of dealers for special or investigation audit. The revenue risk may be determined on objective analysis of the risk parameters or on receipt of intelligence or information, regarding evasion of tax.

(4)     For the control of large taxpayers, the Commissioner may, plan audit checks across the totality of the business of such dealers, within an audit cycle of [117][three] years.

Rule - 42. Notice for audit.

All audits except those provided under sub-rule (3) of rule 41 shall be with prior notice to the dealer:

Provided that the Commissioner, for good and sufficient reasons may, dispense with prior notice for tax audit under rule 41 in respect of any specific dealer or class or classes of dealers.

Rule - 43.The tax audit to be conducted by an audit team.

[118][(1) The tax audit under rule 41 shall be undertaken by a team constituted by the Commissioner.

(2)   The audit team referred to in sub-rule (1), for audit of dealers assigned with TIN, shall comprise two or more officers, one of whom shall not be below the rank of Sales Tax Officer and the senior most officer in rank shall function as the head of the audit team.

(3)   The audit team for audit of dealers assigned with SRIN shall comprise two or more officers not below the rank of Assistant Sales Tax Officer and the senior most member shall function as the head of the audit team.]

Rule - 44.Place of tax audit.

(1)     The audit shall ordinarily be taken up in the place of business of the dealer and the dealer shall render all necessary assistance, produce all accounts, documents, records and also allow access to the accounts, if any, maintained electronically, as may be required by the officers conducting audit.

(2)     Subject to the provisions of rule 42, where tax audit is conducted under sub-rules (1), (2) and (4) of rule 41, the dealer shall be given prior notice in Form VAT -301, intimating the date and time, when the audit is proposed to be conducted, and the dealer shall be required to produce all accounts and records, as may be required, and extend all cooperation to the audit team for smooth conduct of audit.

(3)     Where audit of a dealer is proposed to be taken up under sub-rule (3) of rule 41, prior approval of the next higher authority shall be taken:

Provided that when the audit visit is required to be made in course of an investigation or where there is reasonable apprehension that delay may lead to the disposal of the stock-in-trade or removal or destruction of books of account, records and documents, the approval of next higher authority shall be taken post-facto, within twenty-four hours of the completion of such visit or return to headquarters, after completion of the audit, whichever is later.

Rule - 45. Scope of tax audit.

(1)     Tax audit shall comprise verification of all records, documents, books of account including electronic record, relating or incidental to the business of the dealer, computation of input tax credit as admissible, calculation of output tax charged, physical verification of stock-in-trade, collection of sample of goods and examination of such other records and documents, as may be required, to determine the actual tax liability of the dealer.

(2)     A dealer, who fails to produce any account, record or document in course of the audit, shall if the officer-in-charge of the audit team so requires by notice in Form VAT-302, produce such accounts, records and documents in the office on the date and time specified in that notice.

(3)     Audit visit report in Form VAT -303 shall be submitted by the officer-in-charge of the audit team conducting audit to the assessing authority within seven days of the completion of the audit.

Rule - 46. Audit to facilitate voluntary tax compliance.

The audit team, during any audit visit, shall explain the provisions of the Act and these rules so that the dealer does not face any difficulty in maintenance of books of account and due discharge of tax liability.

Rule - 47. Provisional assessment.

(1)     Where a dealer fails to file return or files return not accompanied by proof of payment of full amount of tax, for any tax period, within such period as specified in rule 34, the assessing authority may assess the dealer provisionally under section 40.

(2)     Where a provisional assessment under sub-rule (1) is made, the assessing authority shall serve upon the dealer a notice in Form VAT -304 showing the amount of tax assessed, interest levied and penalty imposed, which such dealer shall be required to pay within thirty days from the date of receipt of the notice and produce evidence thereof within seven days from the date of payment.

Rule - 48. Self assessment.

(1)     Where a dealer files return for a tax period within the period specified in rule 34 and the return is found to be correctly and completely filled in, and there is no arithmetical mistake apparent on the face of such return, the said return shall be accepted as self-assessed.

(2)     Where there is any arithmetical mistake apparent on the face of such return and such mistake can be reconciled without any reference to the dealer to whom the return relates, such return may accordingly be rectified and the rectification so made may be intimated to that dealer in Form VAT-305 for information.

(3)     If the rectification as intimated to the dealer under sub-rule (2) is not accepted by the dealer, he may, within seven days from the date of receipt of such intimation, file an application stating therein the correct position along with reasons for occurrence of such mistake, to the assessing authority, and if such authority is satisfied, the return referred to in sub-rule (2) shall be accepted as self-assessed.

(4)     Where the arithmetical mistake apparent on the face of the return furnished for a tax period remains un-reconciled, such mistakes shall be intimated to the dealer to whom the return relates in Form VAT-305 for necessary rectifications within fourteen days from the date of receipt of the intimation and if the assessing authority [119][***], is satisfied that the mistake is bona fide and not deliberate, such authority shall accept the return as self-assessed.

(5)     Where the dealer fails to rectify the mistake as intimated under sub-rule(4) within the time specified in that sub-rule or the mistakes are found to be deliberate with an intention to evade tax or attempt to evade tax, the return, wherein the mistakes are found, shall be referred to audit under section 41.

Rule - 49.Audit assessment.

(1)     If the tax audit conducted under section 41 results in findings, which the assessing authority considers to be affecting the tax liability of a dealer for a tax period or tax periods, such authority shall serve a notice in Form VAT306 along with a copy of the audit visit report, upon such dealer, directing him to appear in person or through his authorized representative on such date, time and place, as specified in the said notice for compliance of the requirements of sub-rules (2) and (3).

(2)     The assessing authority may, in the notice referred to in sub-rule (1), require the dealer-

(a)      to produce the books of account maintained under the provisions of the Act and these rules;

(b)      to furnish records and documents required to be maintained under the Act and these rules claiming exemption or concession in the payment of input tax, output tax and input tax credit, as may be applicable;

(c)      to furnish any other information relating to assessment of tax, levy of interest, imposition of penalty, and

(d)      to explain the books of account, other accounts, records, documents or information referred to in clauses (a), (b) and (c), on the date and at the time specified in the notice.

(3)     In addition to the accounts and documents referred to in sub-rule (2), a dealer, if so desires, may produce such other evidence and document in support of his claim preferred in his returns or any objection he wishes to raise.

(4)     The assessing authority, while hearing the dealer on the date specified in the notice referred to in sub-rule (1) or on any date to which the hearing is adjourned, for making an assessment of tax payable by him, shall –

(a)      consider the objection, if any, preferred by such dealer and examine the evidence in support thereof; and

(b)      examine the accounts, documents, records or any other evidence furnished under sub-rule (2):

Provided that not more than three adjournments shall be granted to a dealer for hearing his case.

(5)     In course of hearing of the assessment proceeding, the assessing authority may, -

(a)      examine such records, registers or documents, which are required to be maintained by the dealer [120][***] under the Act and the rules; or

(b)      call for such information or evidence from the dealer or any person as deemed necessary; or

(c)      make such enquiry, as is deemed necessary, for the purpose of such assessment.

(6)     The assessing authority shall, after hearing the dealer in the manner specified in sub-rules (2), (3), (4) and (5), assess to the best of judgment, the amount of tax payable by a dealer in respect of a tax period or tax periods for which the assessment proceeding has been initiated, and impose penalty under sub-section (5) of section 42.

(7)     In the event of default by a dealer to comply with the requirement of the notice referred to in sub-rule (1), the assessing authority may make to the best of judgment, an exparte assessment of the tax payable by such dealer in respect of such tax period or tax periods and pass an order of assessment, in writing, recording the reasons therein.

Rule - 50. Assessment of escaped turnover.

(1)     Where a dealer has already been assessed under section [121][39, 40, 42 or 44] and it is required to reopen the assessment under subsection (1) of section 43 for occurrence of any or more of the events specified in that subsection, the assessing authority shall serve a notice in Form VAT -307 upon the dealer.

(2)     The hearing of the dealer shall be concluded in accordance with the provisions of sub-rules (2), (3), (4) and (5) of rule 49.

(3)     The assessing authority shall, after hearing the dealer in the manner specified in sub-rule (2), assess to the best of judgment, the amount of tax payable by the dealer in respect of a tax period or tax periods, for which assessment proceeding has been initiated, and impose penalty under sub-section (2) of section 43.

(4)     In the event of default by a dealer to comply with the requirements of the notice referred to in sub-rule (1), the assessing authority may make, to the best of judgment, an exparte assessment of the tax payable by such dealer in respect of such tax period or tax periods and pass an order of assessment in writing, after recording the reasons therein.

Rule - 51.Assessment of dealers liable to pay tax under the Act but fails to get registered.

(1)     Where a dealer is liable to pay tax under the Act, but fails to get himself registered, the assessing authority shall serve a notice in Form VAT-308 upon such dealer directing him to appear in person or through his authorised representative on such date, time and place, as may be specified in that notice, and produce or make available, the books of account, evidence, documents, as may be required for assessment of such dealer under sub-section (1) of section 44.

(2)     The assessing authority shall, after hearing the dealer, examine such books of account, evidence and records produced or made available and cause such enquiry as he deems necessary, pass order in writing, recording the reasons therein and:

(a)      determine the date from which the dealer is liable to pay tax under the Act;

(b)      assess to the best of judgment, the tax payable by the dealer in respect of the tax period or tax periods or part thereof, as the case may be, from the date of commencement of such liability; and

(c)      impose penalty under sub-section (1)of section 44.

(3)     In the event of default by a dealer to comply with the requirements of the notice referred to in sub-rule (1), the assessing authority may make to the best of judgment, an exparte assessment of the tax payable and penalty thereon by such dealer in respect of such tax period or tax periods or part thereof, as the case may be, and pass an order of assessment in writing, recording the reasons therein.

Rule - 52. Assessment of casual dealer.

(1)     A casual dealer shall furnish to the assessing authority [122][***] including the officer-in-charge of check post or barrier referred to in section 74, a return of estimated turnover in [123][Form VAT-311 -A]:

(a)      either on his own motion; or

(b)      when called upon to do so by notice [124][in Form VAT 309], immediately.

(2)     The assessing authority referred to in sub-rule (1) or the officer-in-charge of check post or barrier, if he is satisfied, after scrutiny of the accounts of such casual dealer and after making such enquiry, as he may consider necessary, that the return furnished under sub-rule (1), is correct and complete, shall provisionally assess the amount of tax due from him on the basis of such return.

(3)     If a casual dealer does not furnish the return as required by the notice referred to in clause (b) of sub-rule (1) or if the return furnished by him appears to the assessing authority [125][***], or the officer-in-charge of the check-post or barrier to be incorrect or incomplete, such authority or the officer-in-charge of check-post or barrier shall, after giving the casual dealer a reasonable opportunity of being heard, assess the tax payable by him to the best of judgment.

(4)     Every casual dealer shall, within twenty four hours, of arrival in the State, intimate the assessing authority of the circle or range, as the case may be, the address of his residence in the State, the nature of goods in which he intends to deal in, the period during which he intends to carry on business and the date by which, he intends to leave the place in the State in Form VAT -310.

(5)     The casual dealer shall furnish a return to the assessing authority of the circle or range, as the case may be, in Form VAT -311, accompanied by a receipted treasury challan for the tax or taxes payable on the basis of the return on or before the last day, on which he intends to leave the place, where he has been carrying on business and the said assessing authority shall, thereupon, assess the tax or taxes payable by such dealer, after being satisfied that the return furnished is correct and complete and after making such enquiries, as he deems necessary.

(6)     Where, no return is filed by a casual dealer as required by sub-rule (5) or if the return furnished by him, appears to the assessing authority to be incorrect and incomplete, the said assessing authority shall, assess the tax payable to the best of judgment and issue a notice of demand in Form VAT -313 for the tax due and payable.

(7)     For the purpose of this rule, the assessing authority shall mean the assessing authority [126][***], under whose jurisdiction, the casual dealer intends to carry on or has carried on business.

Rule - 53. Order of assessment.

The assessing authority shall issue the order of assessment in Form VAT -312.

Rule - 54. Notice of demand.

(1)     In respect of any amount found payable by a dealer under sub-section (4) of section 50, the assessing authority shall serve on the dealer a notice of demand in Form VAT -313 directing the dealer to pay the amount, within thirty days from the date of service of the notice [127][along with] and to produce the proof of payment of such amount within seven days from the date of payment.

(2)     If the dealer fails to pay the amount due or has failed to produce the evidence of payment by the due date in accordance with the notice in Form VAT -313, the assessing authority may impose a penalty under sub-section (5) of section 50 and serve a notice in Form VAT-314 directing the dealer to pay the penalty within thirty days from the date of service of the notice the outstanding tax, penalty, interest or any other due under the Act immediately and to produce the receipted challan as proof of payment of such amount within seven days from the date of such payment.

(3)     Where the collection of the amount referred to in sub-rule (1) or any part thereof has been stayed on appeal or revision, penalty under sub-section (5) of section 50 may be levied if the amount is not paid and proof of such payment is not produced within a fortnight after the expiry of the period for which, such amount was covered under stay.

(4)     Where stay on collection until disposal of appeal or revision has been ordered, the stay period shall be deemed to have expired on the date of disposal of such appeal or revision and where in such cases, the appeal or revision results in a reduction or enhancement in the amount of demand, a revised notice of demand in Form VAT -315 shall be issued directing the dealer to make payment in accordance with such revised notice within fourteen days from the date of service of the notice and to produce the proof of payment thereof within seven days from the date of payment.

(5)     No penalty under sub-section (5) of section 50 shall be imposed until the expiry of the time limit specified in the revised notice referred to in sub-rule (4).

Rule - 55. Notice for special mode of recovery.

The notice referred to in sub-section (1) of section 51 shall be in Form VAT-316.

Rule - 56. Assessment case record.

(1)     All the papers relevant to the making of any assessment in respect of any particular dealer shall be kept together and shall form an assessment case record.

(2)     Assessment case records shall be preserved for a period of six years or until the assessment reaches its finality, whichever is later.

Rule - 57. Payment of tax, penalty, interest and any other amount under the Act.

(1)     The amount of, –

(a)      tax due, where the returns are furnished without receipt showing full payment thereof; or

(b)      tax assessed under sub-section (2) of section 40, sub-section (3) or (4) of section 42, sub-section (1) of section 43 and sub-section (1) of section 44, less any sum paid by the dealer in respect of the tax period; or

(c)      composition money paid under rule 8; or

(d)      the amount of interest levied; or

(e)      penalty under sub-section (1) of section 28, [128][sub-section (2) section 34, sub-section (3) of section 34], sub-section (5) of section 42, sub-section (2) of section 43, sub-section (1) of section 44, sub-section (5) of section 50, sub-section (1) of section 52, sub-section (5) of section 61 and sub-section (13) of section 73; or

(f)       interest under sub-section (1) of section 34; or

(g)      any other amount due under the Act, shall be paid by the dealer into the Government Treasury [129][or through e-payment] or through a crossed demand draft or banker’s cheque drawn in favour of the Assistant Commissioner or the Sales Tax Officer of the circle or range, as the case may be, on any branch of a scheduled bank of that place, where the Government Treasury is situated, within thirty days from the date of service of the notice of demand.

[130][Provided that the Government may ask a certain or all class of dealers to make payment through e-payment only from the date as notified by the Government.]

(2)     The amount of tax due under section 45 shall be paid in cash to the assessing authority including the officer-in-charge of the check-post or barrier referred to in section 74.

(3)     For the purpose of calculating interest and penalty under the Act and these rules, the date of receipt of the crossed demand draft by the Assistant Commissioner or the Sales Tax Officer, as the case may be, shall ordinarily be deemed to be the date of payment by a dealer save in the case of a crossed demand draft is dishonoured.

(4)     [131][Payment of any tax, composition money or penalty or interest save as specified in sub-rules (2) and (5), shall not be accepted in cash]

Provided that where payment made by a crossed demand draft or Banker’s cheque is furnished along with return in Form-201 or Form -002 for a tax period, such crossed demand draft or banker’s cheque shall be accepted.

(5)     The amount of tax and penalty levied under sub-sections (5), (7) and (11) of section 74 and sub-rule (16) of rule 84, shall be paid in cash to the Assistant Sales Tax Officer or the Sales Tax Officer of the R.R. Unit or the officer- in- charge of the check-post or barrier or the Sales Tax Officer, as the case may be.

(6)     Any payment into the treasury shall be accompanied by a challan in Form-VAT-317

(7)     The challan shall be filled up in quadruplicate and one part of the challan shall be retained in the treasury, one part of the challan shall be sent by the treasury to the Assistant Commissioner or the Sales Tax Officer, as the case may be, and the other two parts shall be returned to the dealer, as a proof of payment.

(8)     [132][If any tax is paid to any officer-in-charge of check post or barrier or Sales Tax officer or Assistant Commissioner ,as the case may be, such payment of tax shall be adjusted against the tax payable by a dealer for the tax period during which such payment is made and the receipt in original issued by such officer or Assistant Commissioner ,as the case may be , shall be furnished alongwith the return to which such payment relates , as proof of payment of tax.]

Rule - 58. Deposit of the amount of tax deducted from the bills or invoices of the works contractors into the Government Treasury.

(1)     The amount of tax deducted from the bills or invoices of the works contractors, shall be deposited by the person, hereinafter referred to as the deducting authority, into the Government Treasury, within one week from the date of deduction by a challan in Form VAT-317:

Provided that, the deducting authority, at his option, may deposit the amount of tax so deducted from the bill or invoice of the works contractor by crossed demand draft on any scheduled bank in favour of the Sales Tax Officer or Assistant Commissioner of the circle [133][***]

[134][Provided further that, the deducting authority at his own option may deposit the amount of tax so deducted from the bill or invoice of the works contractor through e-payment and shall generate an e-challan and enclose the same to the certificate to be issued in Form VAT-605.]

(2)     The challan in Form VAT-317 shall be filled up in quadruplicate, one part of the challan shall be retained by the treasury, one part of the challan shall be sent by the Treasury to the concerned Assistant Commissioner or the Sales Tax Officer, as the case may be, and the remaining two parts shall be returned to the deducting authority.

(3)     The deducting authority shall retain one part of the challan and send the other part of the challan to the Assistant Commissioner or the Sales Tax Officer, as the case may be, within whose jurisdiction the work is being executed:

Provided that, if the works contractor concerned is a registered dealer, the receipted challan or crossed demand draft received from the deducting authority shall be taken into account in the circle [135][***]where it is received and, then forwarded to the circle [136][***] under whose jurisdiction such works contractor is registered.

Rule - 59.Grant of certificate by the deducting authority to the works contractor.

While making deduction of tax from the bills or invoices of the works contractors, the deducting authority shall grant a certificate to that works contractor in Form VAT-605 and shall send a copy thereof to the Assistant Commissioner or the Sales Tax Officer, as the case may be, within whose jurisdiction the works contract is executed:

Provided that if the works contractor concerned is a registered dealer, the certificate as referred to above shall be forwarded to the circle [137][***] where such works contractor is registered:

Provided further that the deducting authority shall furnish a consolidated statement of deductions made during a [138][quarter] in Form VAT-605-A within fourteen days of the expiry of the month to the Assistant Commissioner or Sales Tax Officer, as the case may be, within whose jurisdiction the works contract is executed.

Rule - 60. Grant of certificate of no deduction/deduction of tax at source, by the Commissioner to the works contractor .

(1)     The application for grant of certificate of no deduction or deduction of tax under sub-section (5) of section 54, shall be made in duplicate in Part I of Form VAT -606.

(2)     The application shall be accompanied by copies of the relevant contract, tender or quotation and other documents on the basis of which the contractor makes his claim for no deduction or deduction of tax at source, as the case may be.

(3)     If the particulars and documents furnished by the contractor are correct and complete in all respects and after making such other enquiries, as deemed necessary, the assessing authority is satisfied that the works contract concerned involves both transfer of property in goods and labour or services, or involves only labour and services and justifies deduction of tax or no deduction of tax, as the case may be, he may, after giving the applicant a reasonable opportunity of being heard, grant a certificate in Part II of Form VAT -606, within a period of thirty days from the date of receipt of the application and, shall forward a copy of such certificate to the deducting authority, under whom the work is executed.

Rule - 61.Intimation for recovery of enhanced tax, penalty and interest.

If, on the occurrence of any of the events specified in sub-section (8) of section 50, there is enhancement or reduction in the amount of tax, penalty, interest or any other due under the Act, and such enhancement or reduction occurs after the commencement of recovery proceeding under sub-section (7) of section 50, the assessing authority [139][***] shall intimate the authority effecting such recovery, the actual amount to be recovered consequent upon such enhancement or reduction, within thirty days from the date of receipt of the order giving rise to the enhancement or reduction.

Rule - 62. Penalty and forfeiture of unauthorised and excess collection of tax.

(1)     Where any person collects any sum by way of tax under circumstances as specified under clause (a) or (b) of sub-section (1) of section 52, the assessing authority shall serve a notice in Form VAT-615 upon such person.

(2)     If there is no response to the notice issued under sub-rule (1) within the date as specified in that notice or the explanation is not found satisfactory the assessing authority shall impose penalty as provided under sub-section (1) of section 52.

(3)     When the amount of tax collected under section 35 is forfeited, the assessing authority shall publish a notice in the Commercial Tax Gazette in the following format.

NOTICE

[See rule 62(3)]

Name, address, Registration Number of the person/dealer, making the sale.

The buyers as mentioned under column 2 of the above notice are hereby requested to produce evidence in support of the purchases made by them as per details mentioned against their names and claim refund of the tax so collected on the sales within sixty days from the date of publication of this notice.

Rule - 63. Credit of unauthorised and excess collection of tax to Consumer Welfare Fund.

All amounts forfeited under sub-section (4) of section 52 shall be credited to the Consumer Welfare Fund by way of transfer credit to the Head of account, “1456-Civil Supplies-800-Other receipts-9916600-Civil Supplies -Contribution to State Consumer Welfare Fund.”

CHAPTER-VII REFUND

Rule - 64. Refund.

(1)     No application is required for sanction of refund arising out of any order of 1[assessment] appeal, revision or rectification under the Act and such refund shall be allowed within sixty days of the date of receipt of such order.

(2)     Refund sanctioned under sub-rule (1) shall be paid, either through refund adjustment voucher or through refund payment voucher or both.

(3)     The refund adjustment voucher shall be in Form VAT -318 and the refund payment voucher shall be in Form VAT –319.

(4)     Refund arising out of a return furnished for any tax period subject to exceptions as specified under rule 66, shall be carried forward for adjustment of tax due and payable in subsequent tax period or tax periods, until the expiry of a period of twenty four months, from the end of the year to which that tax period relates.

Rule - 65. Refund under special circumstances.

(1)     (a) Where any dealer claims refund in the return furnished for a tax period on account of sales as specified in clause(b) of section 18, he shall make an application in Form VAT -320 to the assessing authority [140][***]within thirty days from the date of furnishing such return:

Provided that an application for refund made after thirty days may be admitted by the assessing authority, if he is satisfied that the dealer had sufficient cause for not making the application within the said period.

(b) The application filed under clause (a) of sub-rule (1) shall be accompanied by copies of the purchase order placed by the foreign buyer with the dealer, the agreement with the foreign buyer, bill of lading, letter of credit, and / or evidence of payment made by the foreign buyer and such other evidences as may be required to establish the claim of refund.

(c) The assessing authority, on receipt of the application for refund along with the documents referred to in clause (b), shall refer the case for tax audit to determine the admissibility or otherwise of the claim of refund.

(d) If the application under this sub-rule is found to be correct and complete and the tax audit finds the claim of refund to be correct and is supported by the required evidences, and after receipt of report of such findings, the assessing authority shall sanction the refund claimed.

(e) Where the tax audit results in assessment, the claim of refund shall be subject to the result of such assessment :

Provided that in calculating the period of ninety days the period taken for completion of assessment consequent upon tax audit shall be excluded.

(f) If the dealer exercises option in writing in Form VAT-321 for provisional sanction of refund pending audit and consequent assessment, if any, the assessing authority shall require such dealer to furnish bank guarantee for an amount equal to the claim of refund on such terms and conditions, as he may specify, pledged in favour of such authority.

(g) The assessing authority, on receipt of the bank guarantee as referred to in clause (f), shall grant refund provisionally the amount determined by such authority to be refundable.

(h) The provisional refund granted under clause (g) shall be subject to the provision of clause (b).

(i) On receipt of the audit visit report, pursuant to the reference made under clause (c), the assessing authority shall proceed to assess the dealer, if so required, as a result of audit, under section 42 and, determine the correct amount of refund admissible under the provisions of the Act and these rules.

(j) The final refund or demand of tax, penalty or interest, shall be determined in accordance with the order passed on assessment under section 42.

(k) Subject to the provision of clause (g) of sub-section (1) of section 58, the bank guarantee furnished at the time of sanction of provisional refund shall be released, by order in Form VAT -322, and handed over to the dealer on receipt of acknowledgement.

Provided that the acceptance or rejection of the claim of refund shall be made before the validity of the bank guarantee or extension thereof, if any, expires.

(l) Where the claim of refund is reduced, the excess amount, if any, sanctioned towards refund provisionally, shall be paid by the dealer on receipt of order in Form VAT -312 and such dealer shall be liable to pay interest at the rate of two per cent per month on such excess amount from the date of sanction of refund to the date of its payment by the dealer.

(2)     (a) Where any dealer claims refund in the return furnished for a tax period on account of sales as specified in clause (c) of section 18, he shall make an application in Form VAT-320 to the assessing authority [141][***], within thirty days from the date of furnishing of such return and the application so made shall be accompanied by documents as specified in clause (c) of this sub-rule:

Provided that an application for refund made after thirty days may be admitted by such assessing authority if he is satisfied that the dealer had sufficient cause for not making the application within the said period.

(b) The excess input tax credit in any tax period, for which refund is claimed under this sub-rule, shall be carried over to six consecutive tax periods, following that tax period, for adjustment against output tax and the amount found refundable at the end of such tax periods, shall be refunded in accordance with the provisions of clauses (c), (d), (e) and (l) of sub-rule (1).

(c) The application for refund furnished under clause (a) of sub-rule (2) shall be accompanied by the copy of the tax invoice, certificate of the competent authority showing the name and address of the dealer and the SEZ or the STP or the EHTP, under which it is established and the entitlement of the dealer to purchase goods free of tax covered under such tax invoice and such other evidence, as may be required to establish the claim of refund.

(3)     (a) Where any dealer claims refund in the return furnished for a tax period on account of sales as specified in clause (d) of section 18, he shall make an application in Form VAT -320 to the assessing authority [142][***], within thirty days from the date of furnishing such return:

Provided that an application for refund made after thirty days may be admitted by the assessing authority if he is satisfied that the dealer had sufficient cause for not making the application within the said period.

(b) The application under clause (a) shall be accompanied by a copy of the tax invoice and the certificate from the competent authority showing that the purchasing dealer is a EOU and that such dealer is entitled to purchase goods free of tax and such other evidence as may be required to establish the claim of refund.

(c) The refund under this sub-rule shall be subject to the provisions of clauses (c), (d), (e), (f), (g), (h), (i), (j), (k) and (l) of sub-rule (1).

(4)     (a) The claim of refund arising out of clause (a) of sub-section (2) of section 58 shall be made by application in Form VAT -323 signed and verified by an authorised officer.

(b) The grant of refund claimed under this sub-rule shall be subject to the following conditions :

(i)       the purchase should have been made from a registered dealer in the State on payment of tax supported by a retail invoice;

(ii)      each retail invoice shall be in the minimum for a tax-exclusive price of Rs.1,000/-;

(iii)     the claim shall be made quarterly;

(iv)    the goods involved in the purchases are only for official use; and

(v)      the application for refund shall be filed within a period of fourteen days from expiry of the quarter.

Rule - 66.Refund of input tax credit carried forward beyond a period of twenty-four months.

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[143][(1) The claim of refund under clause (a) of sub-section (4) of section 58 shall be made in Form VAT-324 to the assessing authority within forty five days from the date of expiry of the period of twenty-four months from the end of the year to which the tax period relates.

(2)   Where refund is claimed under sub-rule (1) the input tax credit shall be reduced by the amount of refund claimed, in the return filed or to be filed for the tax period in which the application for refund is filed.

(3)   On receipt of application in Form-VAT-324, the assessing authority shall refer the case for tax audit to determine the admissibility of the claim of refund or otherwise. The audit report shall be submitted to the assessing authority within 30 days:

Provided that in the event of a tax audit already conducted u/s 41 of the Act, the tax period covered under such audit will be excluded from the purview of audit referred to in this sub-rule.

(4)   Where the tax audit results in assessment the claim of refund shall be subject to result of such assessment:

Provided further that in the event of an assessment already made u/s 42 of the Act, the tax period covered under such assessment shall be excluded from the assessment proceeding referred to in this sub-rule.

(5)   If there is no adverse finding in the audit report the assessing authority may sanction refund within 30 days from the date of receipt of audit report by the assessing authority and the amount sanctioned for refund shall be paid as per the procedure laid down in sub-rules (2) and (3) of rule 64]     

CHAPTER VIII ACCOUNTS AND RECORDS

Rule - 67.Maintenance of accounts by a registered dealer.

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(1)     Every dealer, who is registered under the Act, or on whom a notice under sub-section (2) of section 33 has been served to furnish return, shall, subject to sub-rules (4) and (5), maintain a true and up-to-date accounts of goods –

(i)       purchased or received otherwise than by way of purchases, in the purchase or input register;

(ii)      sold or despatched outside the State otherwise than by way of sales by him, in the sales or output register;

(iii)     held in stock, for the purpose of business.

(2)     A dealer referred to in sub-rule (1) shall maintain accounts of waybills issued and received, vouchers, bills, cash memos, tax/retail invoices [144][challan/delivery challan] and such other documents, as may be required, in support of any entry in the purchase and sales register.

(3)     Purchase and sales register referred to in sub-rule (2) shall be maintained tax rate wise so that the totaling made at the end of each tax period will show the purchases and sales under each tax rate and tax paid on such purchases and charged on such sales during that tax period.

(4)     A registered dealer engaged in the manufacturing or processing of goods shall maintain true and up-to-date accounts of –

(i)       capital goods purchased;

(ii)      inputs purchased;

(iii)     inputs used in manufacturing and processing of goods for sale;

(iv)    goods manufactured including manufacturing account;

(v)      goods sold; and

(vi)    stock account of inputs, consumables, packing materials, fuel, and finished products and bye-products, if any.

(5)     A registered dealer engaged in the execution of works contract shall maintain a true and up-to-date account of-

(i)       goods purchased for use in the execution of works contract;

(ii)      goods utilized in the execution of works contract;

(iii)     sale value of the goods at the time, such goods are appropriated to the works contract;

(iv)    stock account of goods

Rule - 68. Contents of tax invoice and retail invoice.

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(1)     The tax invoice issued under sub-section (1) of section 62 shall contain the following particulars, namely:-

(a)      the words ‘Tax Invoice’ in bold letter at the top,

(b)      the name, address and registration certificate number of the selling registered dealer,

(c)      the name, address and registration certificate number of the purchasing registered dealer,

(d)      in case, the sale is in course of export out of the territory of India, the name, address, registration certificate number, if any, of the purchasing dealer or foreign buyer and the type of statutory form, if any, against which the sale has been made,

(e)      an individual serialized number and the date on which the tax invoice is issued,

(f)       description, quantity, volume and value of goods sold 1[amount of discount allowed, if any]and the amount of tax charged thereon indicated separately,

(g)      signature of the selling dealer or his manager or any other employee or agent, duly authorized by him, and

(h)     the name and address of the printer, if any, and first and last serial number of tax invoices printed and supplied by him to the dealer.

(2)     The retail invoice as referred to in sub-section (2) of section 62 shall contain the following particulars, namely-

(a)      the words ‘Retail Invoice’ or ‘Cash Memorandum’ or ‘Bill’ in bold letter at the top,

(b)      the name, address and registration certificate number of the selling registered dealer,

(c)      the name and address of the purchaser, if available,

(d)      an individual serialized number and the date on which the retail invoice is issued,

(e)      description, quantity, volume and the value of goods sold showing the amount of tax charged separately,

(f)       signature of the selling dealer or his manager or any other employee or agent, duly authorized by him, and

(g)      the name and address of the printer, if any, and the first and last serial number of retail invoices printed and supplied to the dealer.

Rule - [68A. Contents of challan / delivery challan.

The challan/delivery challan as referred to in sub-rule of rule 67 shall contain the following particulars, namely:-

(a)      the words 'challan / delivery challan' in bold letter at the top,

(b)      the name, address and registration certificate number of the selling registered dealer,

(c)      the name and address of the purchasing dealer and registration certificate number, if registered under the Act,

(d)      in case, the consignment is in course of export out of the territory of India, the name, address, registration certificate number, if any, of the purchasing dealer or foreign buyer and the type of statutory form, if any,

(e)      an individual serialized number and the date of issue,

(f)       description, quantity/volume and value of goods under consignment and the nature of transaction,

(g)      signature of the dealer consigning the goods or his manager or any other employee or agent, duly authorized by him, and

(h)     the name and address of the printer, if any, and first and last serial number of challan/delivery challan printed and supplied by him to the dealer] 

Rule - 69. Records to be maintained by a registered dealer liable to pay tax under clause (a) of section 9.

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Every registered dealer liable to pay tax under clause (a) of section 9 shall, in addition to the accounts referred to in sub-rules (1), (2) and (3) of rule 67, maintain such accounts and documents as may be required to establish his claim for filing revised return for any tax period, zero rate sales, claim of input tax credit, stock of goods, cash balance, utilisation of waybills and statutory declaration forms issued under the Central Sales Tax Act, 1956 and other claims and transactions relating or incidental to the business of such dealer.

Rule - 70. Accounts to be maintained by a registered dealer liable to pay turnover tax under clause (b) of section 9.

(1)     The following particulars shall be maintained by a dealer liable to pay turnover tax under clause (b) of section 9, namely :

(a)      the name and address of the person from whom goods are purchased supported by invoice, bill or delivery note issued by the seller under his signature;

(b)      description of the goods;

(c)      the quantity and value of goods so purchased under clause (a) above;

(d)      the quantity and the value of goods sold, showing separately the sale of goods exempt from tax;

(e)      counterfoils of retail invoices issued, which are serially numbered for each year.

Rule - 71. Issue of Tax invoice and Retail invoice.

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[145][(1) Where a dealer registered under the Act and assigned with TIN effects sales to another registered dealer assigned with TIN, the dealer making the sale shall issue a tax invoice.

(2)   Where a dealer registered under the Act and assigned with TIN effects sales to an unregistered dealer or person, or a registered dealer assigned with SRIN, he shall issue a retail invoice]

(3)   Where a registered dealer effects sales of goods, specified in Schedule ‘C’ of the Act to any dealer irrespective of whether he is registered or not under the Act, he shall issue a retail invoice.

(4)   Where a registered dealer liable to pay tax under clause (b) of section 9 effects sale of goods, the tax-exclusive price of which is rupees two hundred or above in any single transaction, he shall issue a retail invoice against such sale, in accordance with the provisions of sub-section (2) of section 62.

(5)   Separate accounts shall be maintained in respect of sales in respect of which tax invoices are issued and sales in respect of which retail invoices are issued.

(6)   Where a registered dealer liable to pay turnover tax under clause (b) of section 9 issues retail invoices in respect of sales and the sale price charged therein is inclusive of tax, the tax amount due for payment shall be calculated by applying the tax fraction to the tax-inclusive sale price.

(7)   All tax invoices and retail invoices issued against sales made by a registered dealer shall indicate the tax charged at each rate of tax separately.

(8)   Tax invoice/retail invoice issued by a registered dealer shall be signed by the dealer himself or his authorised representative.

(9)   Where invoices as referred to in sub-rule (8) are generated electronically they shall also be signed by the dealer himself or his authorised representative.

Rule - 72. The language in which accounts are to be maintained.

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(1)     Every registered dealer liable to pay tax under clause (a) of section 9, who maintains accounts in a language other than English shall adopt international numerals in the maintenance of such accounts.

(2)     Every registered dealer liable to pay tax under clause (b) of section 9 shall keep and maintain account in any language specified in the Eighth Schedule to the Constitution of India or in the English language.

Rule - 73. Certificate to be furnished by the Accountant.

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Where the accounts of a dealer are required to be audited under section 65, a certificate in the following form shall be furnished along with the audited accounts (Trading account, Profit and loss account and Balance sheet) for each year by the Accountant conducting such audit. 

[FORM OF CERTIFICATE

[See (rule 73)]

Audit Report under section 65 of Orissa Value Added Tax Act, 2004 -

for the year______________________

To

M/s._________________________

1.        I/We have verified correctness and completeness of the VAT returns, filed during the year from_____________to ____________with reference to the books of accounts audited by me/us, and subject to my/our observations and comments mentioned hereunder and in the statement of particulars; - state that,

(1)     In my/our view the books of accounts and other value added tax related records and registers maintained by the dealer are sufficient for verification of correctness and completeness of the returns. The dealer has maintained and preserved the accounts and records as per the requirement of rules 67 & 69 of Orissa Value Added Tax Rules, 2004.

(2)     The turnover of sales declared in the returns includes all the transactions of the sales during the period of review.

(3)     The turnover of purchases declared in the returns includes all the transactions of purchases made during the period of review.

(4)     The adjustment to turnover of sales and/or purchases is based on entries made in the books of accounts during the period of review.

(5)     The deductions from the turnover of sales, including deductions on account of goods return, claimed in the returns are in conformity with the provisions of the relevant Act.

(6)     Computation of tax payable as shown in the returns is correct.

(7)     The method adopted by dealer to determine input tax credit is as per the provisions in the Orissa Value Added Tax Act and the rules framed thereunder. The extent to which goods are sold, used, consumed or supplied or intended to be sold, used, consumed or supplied has been correctly calculated. Computation of admissible input tax credit admissible in respect of purchases made during the year and adjustment to input tax credit claimed in the tax periods under review is correct.

(8)     Computation of incentive benefits (if any) is in conformity of the provisions of the Act in this regard.

(9)     Other information furnished in the periodical returns filed during the year is correct and complete.

2.        For the purpose of verification of correctness and completeness of the VAT returns filed during the period, as well as for the preparation of statement of particulars, we have relied on -

(1)     Books of Accounts for the year ended on 31st March..................

(2)     Profit and Loss Account and the Balance Sheet for the year ended on 31st March.......(Previous year)

(3)     Records / Registers relating to sales, purchases, stock, branch transfers, deductions, concessions, (List the records / registers verified)

(i)       ..........................................................................................................................

(ii)      ..........................................................................................................................

3.        The following are the major changes made during the period of review (specify if any of the below or others)

(1)     Changes in the business status.

(2)     Change in the method of valuation of stock.

(3)     Changes in the accounting system.

(4)     .......................................................

4.        Summary of the additional tax liability and/or additional refund due to the dealer, arising on verification of the value added tax annual return together with the books of accounts and other related accounts mentioned herein-above, for the period under review is as follows.

5.        The dealer has been advised to -

(i)       Pay differential tax liability of Rs....................

(Rupees.............................................)

(ii)      Pay interest liability up to the time of payment.

Encl:(1) Statutory Audit Report with Profit and Loss Account and Balance Sheet.

(2) Statement of other observations, comments and notes thereon.

(3) Statement of other particulars as decided by the Commissioner through public circular.

QUANTITATIVE DETAILS FOR MAJOR ITEMS OF STOCK IN TRADE/ RAW

MATERIALS/FINISHED GOODS

CHAPTER-IX LIABITY IN SPECIAL CASES

Rule - 74. Liability in case of transfer of business.

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Where a dealer liable to pay tax under the Act, transfers his business, in whole or in part, by sale, lease or license, hire or any other manner, whatsoever, under sub-section (1) of section 67, the transferee of the business, if he is an existing registered dealer, apply within fifteen days from the date on which such transfer takes place for amendment of his certificate of registration under subsection (2) of section 67.

CHAPTER-X LIABILITY TO PRODUCE ACCOUNTS AND SUPPLY INFORMATION

Rule - 75. Production and inspection of accounts and search of premises.

(1)     Visit to the place of business of any person or dealer for inspection under section 72 or 73 by the Commissioner or any person appointed to assist him under sub-section (2) of section 3, may be made with prior notice in Form VAT-401 requiring such person or dealer –

(a)      to produce or cause to be produced the accounts, registers and documents, as called for, before him at his office on the date and time specified in the notice and to explain them; or

(b)      to furnish any information as may be required, before him on the date specified in the notice, when he may visit his place of business; or

(c)      to allow access to the electronic record maintained by him on the date specified in the notice, where he may be keeping such electronic records.

(2)     The Commissioner or any person appointed to assist him under subsection (2) of section 3, while requiring any person or dealer,-

(i)       to produce before him books of account, registers and documents under clause (a); or

(ii)      to furnish information relating to the business of such person or dealer under clause (b); or

(iii)     to allow access to the electronic records maintained by that person or dealer when required to produce in the place of business under clause (c) of sub-section (1) of section 73; or

(iv)    to make all accounts, goods and cash available for inspection under sub-section (2) of section 73, shall ensure that the provisions of the Act and these rules are complied with.

(3)     If, however, the Commissioner or any person appointed to assist him, not below the rank of a Sales Tax Officer, considers it necessary for the purpose of the Act to make a surprise visit to the place of business or warehouse or godown of any person or dealer, he may make such visit without giving any prior notice to that person or dealer.

Rule - 76.Search and Seizure.

(1)     All seizures under sections 72, 73, 74 and 76 shall be made as far as possible in accordance with the provisions of the Code of Criminal Procedure, 1973.

(2)     If any person or dealer, from whom any accounts, registers or documents have been seized under section 73, does not take delivery of such accounts, registers or documents within the time specified in the notice issued in this behalf, the authority, in whose custody such accounts, registers or documents are retained may destroy them without further notice to such dealer or person.

Rule - 77. Manner of confiscation of goods seized or otherwise.

(1)     The Commissioner shall, before ordering confiscation of the goods, give the owner of the goods, if present with the goods, an opportunity of being heard and where the owner is not present, the Commissioner shall make such enquiries, as he deems fit, to ascertain the name and address of the owner and if such name and address are ascertainable, give him an opportunity of being heard, before ordering confiscation. In case of non-perishable goods, at least seven days time shall be allowed to the owner of the goods to state the case before the Commissioner.

(2)     A copy of the order of confiscation of the goods shall be served on the owner of the goods, where the name and address of such owner is available or ascertainable and where such name and address is not ascertainable, the order shall be served on the driver or person-in-charge of the goods and a copy shall be displayed in the office notice board.

(3)     The owner of the goods shall have the right to prefer revision against the orders of confiscation passed under sub-rule (1) and such revision shall be filed within seven days from the date of receipt of the order.

(4)     The goods confiscated shall be sold by public auction or by inviting offers through sealed quotations.

(5)     If the goods confiscated are of perishable nature, the confiscation thereof shall not be postponed, on account of revision having been preferred against the orders of confiscation.

(6)     If, by any order of revision, the confiscation is reversed, the goods confiscated, if they have not been sold before such reversal comes to the knowledge of the officer conducting the sale, shall be released or if they have been sold, the proceeds thereof shall be dealt with as specified in sub-rule (8).

(7)     Where a confiscation was ordered in the absence of the owner of the goods, for the reason that the name and address of such owner was not ascertainable, such person or any person on his behalf, may appear before the authority ordering confiscation and satisfy him with relevant record and document regarding the bonafides of the transaction of the goods, in question and where the officer is satisfied that there has been no evasion of tax or the subsequent transaction in respect of the goods, is not likely to lead to any evasion of tax, he may, for reasons to be recorded in writing, order the release of the confiscated goods specifying the amount to be paid towards the charges, if any, incurred by the State for the safe custody of the goods and other incidental charges, and where the officer is not satisfied, he may, after recording the reasons therefor, order that the sale under sub-rule (4) may be proceeded with.

(8)     Goods ordered to be released or the proceeds thereof referred to in sub-rule (6), if they have been sold, shall be refunded to the owner of the goods or to his agent on payment or after deduction of the charges incurred by the State.

(9)     Where the owner of the goods or his agent appears before the authority, who has passed the order of confiscation, and pays the tax due on such goods along with penalty amounting to twenty per cent of the value of such goods, the said authority shall release the goods to the owner of the goods or his agent.

(10)   While assessing the tax payable on the goods ordered to be confiscated, the value of such goods shall be determined at the prevailing market price and the tax payable shall be computed by application of the rate of tax specified for such goods in the Schedule of the Act.

Rule - 78.Procedure for` auction sale of goods seized.

(1)     Where the goods are seized under sub-section (8) of section 73, clause (b) of sub-section (4) of section 74, sub-section (11) of section 74 and sub-section (8) of section 76, the authority who has seized such goods, shall issue a proclamation for open auction for sale of such goods for cash on delivery fixing a date, not earlier than seven days from the date of issue of such proclamation for sale, and in such proclamation the time and place of sale and the description of the goods for sale shall be mentioned.

(2)     The proclamation for open auction referred to in sub-rule (1) shall be publicised and copy of such proclamation shall be –

(a)      hung up for public view at the place where the auction sale is to take place, and

(b)      forwarded to the dealer or person, from whom such goods have been seized or owner of such goods, if his address is available.

(3)     The goods shall ordinarily be sold to the highest bidder but if it appears to the authority issuing the proclamation for auction sale that such highest bid as offered by such bidder is inadequate, he may adjourn the sale to some other date, and a fresh proclamation specifying the next date for auction shall be issued and publicised.

(4)     On the date of auction specified in the proclamation referred to in sub-rule (1) or (3), the goods seized shall be sold:

Provided that if the dealer or person from whom such goods have been seized or owner of such goods, to whom the copy of the proclamation for sale has been forwarded under sub-rule (2), appears before the authority concerned on any date not later than the date fixed for auction sale and makes payment of tax and penalty as provided under the section, in accordance of which the seizure was made, the goods referred to in the proclamation of sale shall not be sold in auction and such goods shall be released to such dealer or to the person from whom the goods have been seized or the owner of the goods, as the case may be.

(5)     Notwithstanding anything contained in sub-rule (1), where the goods seized are of perishable nature the proclamation for open auction for sale of such goods shall be made immediately and the open auction shall be conducted within twenty four hours.

Rule - 79.Establishment of check gates and inspection of goods while in movement.

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(1)     The Government may empower any officer not below the rank of an Assistant Sales Tax Officer to be in charge of a check-post or barrier.

(2)     The driver or the person-in-charge of the vehicle or carrier of goods shall stop the vehicle or carrier, as the case may be, at a check-post or barrier and keep it stationery as long as it is reasonably required by the officer-in-charge of the check-post or barrier and allow examination of the goods, in the vehicle or carrier and inspection of all records connected with the goods in the vehicle or carrier including way bill, declaration and transit pass.

(3)     The waybill shall be in Form VAT-402 as provided under clause (a) of sub-section (2) of section 74.

Rule - 80. Issue and use of Way bills and Transit pass.

(1)     The issue and use of way bills and transit pass shall be regulated in the following manner, namely :-

(i)       the way bills referred to in sub-rule (3) of rule 79, shall be supplied in triplicate on application in Form VAT-409 and on payment of cost, as may be fixed by Government from time to time.

(ii)      the way bill referred to in clause (i), shall be issued with due authentication with official seal and signature by, or facsimile signature of the Assistant Sales Tax Officer or the Sales tax Officer or Assistant Commissioner, as the case may be, having jurisdiction.

(iii)     the way bill shall be issued to the dealer, who -

(a)      consigns goods from a place inside the State to a place outside the State;or

(b)      brings any goods into the State or receives any goods despatched from any place outside the State; or

(c)      imports goods into the State from a place outside the State.

(iv)    [147][(a) application for subsequent issue of waybills referred to in clause (i) and clause (v) of this sub-rule shall be accompanied by an account of utilization in Form VAT-403.

(b) Before subsequent issue of waybills, the issuing authority shall cross verify the information furnished in Form VAT-403 with the information available in the Commercial Taxes Department database, copies of the utilized waybills received, if any, from the check gates and the state of tax compliance by the dealer.]

(v)      [148][For issue of more than one booklet of way bills application shall be filed in Form VAT-410, and on receipt of such application, one or more booklets of waybills or part thereof may be issued to a registered dealer subject to a maximum of twenty booklets in case of dealers under a LTU and ten booklets in case of other dealers based on justification:

Provided that, if any dealer, requires booklets of way bill forms more than the quantity specified at a time, he shall make an application to that effect to the Assistant Commissioner or the Sales Tax Officer, as the case may be, and if such requirement is found justified, the application along with recommendation and justification shall be forwarded to the Commissioner whose order shall be final in such cases:

Provided further that if a registered dealer, whose certificate of registration has been suspended under section 30 or who fails to furnish return under section 33 or who fails to comply with the requirements under section 61 or 73, the Sales Tax Officer or the Assistant Commissioner, as the case may be, may refuse to issue waybill after giving him reasonable opportunity of being heard:

Provided also that where a dealer is refused way bill under this clause, the Sales Tax Officer or the Assistant Commissioner, as the case may be, shall pass an order to that effect and serve the order on that dealer]

(vi)    authenticated printed way bills may not be insisted upon by the officer-in-charge of a check-post or barrier, where it is proved to his satisfaction that the owner of the goods transported is not a dealer and the goods transported are his house-hold or other articles intended for personal use.

[149][(1-a) - application made for issue of waybill under clauses (i) and (v) of sub-rule (1) shall ordinarily be disposed off within three working days from the date of receipt of such application]

(2)     The way bill which shall bear the signature or facsimile signature and the official seal of the concerned Assistant Sales Tax Officer or Sales Tax Officer or Assistant Commissioner referred to in clause (i) of sub-rule (1), shall be serially numbered and printed in triplicate, the first copy marked as “Original”, the second copy marked as “Duplicate”, the third copy marked as “Triplicate” and shall be in booklets of twenty-five forms each.

(3)     Every registered dealer shall maintain a register in Form VAT-403, which may be produced at the time of second and subsequent issue of waybill forms, if so required.

(4)     A person consigning goods from outside the State to a dealer belonging to the State will obtain waybill from the consignee inside the State.

(5)     [150][(a) Not withstanding the provisions regarding issue of waybills in sub-rule (1), (1-a), (2), (3), (4) and subject to the provisions in sub-rule (5), (6), (7), (8), (9), (10) and (11), waybill in Form VAT-402 shall be issued electronically from such date in such manner and subject to such conditions and restrictions as the Commissioner may prescribe through notification.]

(6)     The driver or the person-in-charge of the goods vehicle or carrier shall carry the way bill in duplicate in respect of each consignee and shall tender the original copy of the way bill to the Officer-in-charge of check-post or barrier through which such goods vehicle or carrier first passes on its way :

Provided that in case, a goods vehicle, which has not passed through a check-post or barrier is checked by an officer not below the rank of a Sales Tax Officer on the way, the original copy of the way bill shall be tendered to such officer:

Provided further that in case the vehicle or carrier has not passed through a check- post or barrier or has not been checked by an officer, not below the rank of a Sales Tax Officer, the original copy of the way bill forms used during a month, along with the statement of accounts referred to in clause (iv) of sub-rule (1), shall be submitted to the Sales Tax Officer or the Assistant Commissioner, as the case may be, who had issued the said way bill forms, by the last day of the following month.

(7)     Every way bill obtained from the Assistant Commissioner or Sales Tax Officer, as the case may be, by a dealer shall be kept by him in safe custody and he shall be responsible for the loss, destruction, or theft of any such form and loss of Government revenue, if any, caused thereby.

(8)     If any such way bill form, before it is issued, is signed and despatched by the consignor, is lost, destroyed or stolen from his custody, the dealer shall report the fact to the Sales Tax Officer or the Assistant Commissioner, as the case may be, within seven days from the date of such loss, destruction or theft, make appropriate entry in the “Remarks” column of the register and take such other steps to issue public notice of loss, destruction, theft and in respect of each such way bill form, shall furnish to the Sales Tax Officer or the Assistant Commissioner, as the case may be, an indemnity bond in FormVAT-404 against any possible loss to Government.

(9)     The Sales Tax Officer or the Assistant Commissioner, as the case may be on receipt of report of theft, loss or destruction of waybill form shall immediately report the fact to the Commissioner, who, after making such enquiry as he may think necessary, shall publish the particulars of such waybill forms in the Commercial Tax Gazette:

Provided that where the Commissioner, considers it necessary so to do, he may, by notification, declare that the way bill forms lost, destroyed or stolen, shall be deemed as obsolete and invalid from such date as may be specified in that notification.

(10)   Any unused waybill form remaining in stock with a registered dealer, on the cancellation of the registration certificate, shall be surrendered to the registering authority within fourteen days of the order of cancellation:

Provided that if the dealer fails to surrender the unused way bill forms within the period specified in this sub-rule, the Commissioner shall, on receipt of intimation from the Sales Tax Officer or Assistant Commissioner, as the case may be, declare such way bill forms as obsolete and invalid with effect from the date of order of cancellation of certificate of registration.

(11)   A dealer, to whom waybill forms are issued, shall not either directly or otherwise transfer his right to use the same to another dealer.

(12)   The Commissioner may, by notification, declare that the way bill forms of a particular series, design or colour shall be deemed as obsolete and invalid, with effect from such date, as may be specified in the notification, and when a notification declaring such forms as obsolete and invalid is published, all registered dealers shall on or before the due date, with effect from which date the forms are so declared obsolete and invalid, surrender all such unused forms.

(13)   If, on such examination and inspection as referred to in sub-rule (2) of rule 79 the officer-in-charge of the check-post or barrier, finds that the goods are not fully covered by way bill or that the way bill is defective or incomplete, he shall serve on the owner of the goods or any person on his behalf a notice in Form VAT-405 giving him an opportunity to rectify the defect or omission, if any, or an option to pay such amount as may, by order, the officer-in-charge of check-post or barrier specify.

(14)   If the owner of the goods or any person on his behalf [151][either rectifies the defect or omission or] makes payment of the amount as directed by order under sub-rule (12) along with the tax due on such goods to the officer-in-charge of the check-post or barrier, he shall release the goods.

(15)   If the owner of the goods or any person on behalf of such owner fails to pay the tax and penalty as required under sub-rule (12) , the officer-in-charge of the check-post or barrier shall order the unloading of the goods and seize and confiscate them after following the procedure in sub-rule (15) of this rule and rule 76.

(16)   Where the officer-in-charge of the check-post or barrier seizes the goods, he shall issue a receipt giving the description, quantity and approximate value of the goods seized to the driver or owner of the goods or any other person-in-charge of the vehicle or carrier and obtain his acknowledgement.

(17)   The officer-in-charge of the check-post or barrier shall follow the procedure as specified in rule 77 for confiscation and sale of the goods.

(18)   If the Sales Tax Officer or the Assistant Commissioner, as the case may be, considers it necessary so to do, he may, before issue of way bills, on the basis of an application made in Form VAT-409, specify the period therein for which use of such forms shall be valid.

(19)   Where a dealer transports any consignment of goods on the strength of way bill which has not been obtained by him in accordance with the provisions of this rule, such dealer shall be deemed to have contravened the provision of section 74.

(20)   Where a dealer is found under sub-rule (18), to have contravened the provisions of section 74, he shall be liable to pay penalty under sub-section (5) of the said section.

(21)   If a registered dealer, who has any unused way bill forms in his stock, does not intend to use such form for any reason, he shall surrender such way bill forms, immediately to the Sales Tax Officer or Assistant Commissioner, as the case may be [152][under whose jurisdiction the dealer is registered]

(22)   The original copy of each, duly endorsed way bill retained by the officer-in-charge of the check-post or barrier or elsewhere for such period, and within such time, as the Commissioner may specify, shall be forwarded to such authority, as the Commissioner may direct.

Rule - 81.Issue and use of declaration forms.

(1)     Issue and use of declaration forms shall be regulated in the following manner, –

(i)       the declaration referred to in sub-rule (2) of rule 79 shall be in triplicate;

(ii)      the declaration referred to in clause (i) shall be supplied [153][on receipt of application] in Form VAT-402A and on payment, as may be fixed by the Government from time to time;

(iii)     the declaration shall be issued with due authentication with official seal and signature or facsimile signature of the Assistant Sales Tax Officer or the Sales Tax Officer [154][or Assistant Commissioner] having jurisdiction;

(iv)    the declaration shall be issued to a casual dealer or a person, who –

(a)      imports or brings any goods into the State or receives any goods despatched from any place outside the State on his own account, or

(b)      consigns any goods from a place inside the State to a place outside the State either on his own account or on the account of any consignee,

(v)      the Assistant Sales Tax Officer or the Sales Tax Officer referred to in clause (iii) shall be –

(a)      the Assistant Sales Tax Officer or Sales Tax Officer of the R.R. Unit or in charge of the check-post or barrier, established in and around a railway station, steamer station, port, airport, post office or courier office in case, the consignment of goods is transported through railways, waterways, Air or postal or courier services;

(b)      the Assistant Sales Tax Officer or the Sales Tax Officer [155][or Assistant Commissioner], under whose jurisdiction, the causal dealer carries on business or the person ordinarily resides;

(vi)    not more than one declaration form in triplicate shall be supplied to such casual dealer or person at a time;

(vii)   no second or subsequent supply of declaration form shall be made to such casual dealer or person unless the copy of the declaration furnished at the R.R. Unit or check-post or barrier is called for, or electronic information in relation to such declaration is accessed or such other account as may be required for verification of the transaction of purchase or sale made on the strength of such declaration, is called for and examined.

Rule - 82. Interception of goods vehicle in transit at any place other than a check-post or barrier.

(1)     At any place other than a check-post or barrier, the driver or any other person in charge of a goods vehicle or carrier shall stop on demand by an officer, not below the rank of a Sales Tax Officer, and keep it stationary as long as it may be required and allow examination of the goods in the vehicle or the carrier and inspection of all records connected with the goods carried in the vehicle or carrier.

(2)     If, on such inspection, such officer finds that any of the events as specified in sub-section (4) of section 74 has occurred, such officer may order unloading of the goods under movement and seize and confiscate the said goods after following the procedure as specified in rules 76 and 77.

(3)     The disposal of goods confiscated under sub-rule (2) shall be made in the manner specified in rule 78.

Rule - 83.Movement of goods from outside the State to out of the State destinations and issue of Transit Pass.

(1)     Where a vehicle carrying goods intends to transit through Orissa from a place outside the State to another place outside the State, the driver or any other person claiming to be in charge of the goods shall report to the Officer-in-charge of the entry check-post or barrier and obtain a transit pass in Form VAT - 406 duly signed by the said officer and proceed to transit through the check-gate or barrier mentioned in the transit pass and after depositing the transit pass with the officer-in-charge of the check-post or barrier of the exit check-post or barrier.

(2)     The transit pass in Form VAT-406 shall be in three parts, the first part of such Transit Pass shall be the application to be made by the driver or person in charge of the goods, the second part shall be the transit pass to be deposited at the exit check gate or barrier and the third part shall be the receipt to be signed by the officer-in-charge of the exit check gate or barrier against deposit of the transit pass.

(3)     The transit pass referred to in sub-rule (1) shall be issued to the driver or person in charge of the goods or carrier on application when he furnishes –

(a)      evidence to the satisfaction of the officer-in-charge of the check-post or barrier that the goods carried in the vehicle or carrier are meant to be delivered at a place outside the State;

(b)      a declaration showing –

(i)       the check-gate through which the vehicle will exit the State;

(ii)      the probable time of such exit; and

(iii)     the goods under transport shall not be unloaded, delivered or sold inside the state.

(4)     If a driver or person-in-charge of the goods referred to in sub-rule (3) violates any or more of the conditions as specified in that sub-rule, he shall be liable to pay tax and penalty as provided under sub-rule (5).

(5)     Where the officer-in-charge of a check-post or barrier or any officer not below the rank of a Sales Tax Officer, intercepts a vehicle and finds that any of the events as specified under sub-section (11) of section 74 has occurred, he shall direct the driver or the person-in-charge of the goods, by order in [Form VAT 407-A], to pay the amount of tax and penalty as specified in that section:

Provided that an opportunity of being heard shall be allowed to such driver or person [156][by issuing notice] in Form VAT-407.

(6)     Where the driver or the person-in-charge of the goods is not immediately available, the officer, who had detained the vehicle, shall cause enquiry to ascertain the name and address of the owner of the goods and if such name and address are ascertained, allow him an opportunity of being heard.

(7)     On payment of the amount demanded by order under sub-rule (5), the goods shall be released and vehicle shall be allowed to proceed.

(8)     If the amount demanded is not paid within the time specified in the order issued under sub-rule (5), the officer referred to in that sub-rule shall seize the goods or where goods are not available at the time of such inspection, the goods vehicle and order seizure and confiscation of the goods or detention of the vehicle, as the case may be, till such tax and penalty are paid.

(9)     The procedure for confiscation and sale of goods shall be in the manner provided under rule 77 and 78.

Rule - 84. Restriction on movement of goods through railways, waterways, Air, Postal and courier services.

(1)     No person shall transport by road, river, craft, mulia from any railway station, sea port, airport, post office or courier office and any other place whatsoever notified in this behalf by the Government any consignment of such goods, other than those specified in sub-rule (2), [157][except in accordance].

(2)     [158][***]

(3)     The Sales Tax authority having jurisdiction may seek any information relating to the consignment of goods and inspect them in the parcel office or goods shed, airport, sea port, post office or courier office.

(4)     Where any consignment of goods is imported or brought into the State by a dealer, casual dealer or a person on his own account from any place outside the State, and such consignment of goods reaches a railway station, steamer station, port, airport, post office or courier office in the State, such dealer, casual dealer or person shall, before taking delivery of such consignment of goods except a consignment of goods of the nature and value referred to in sub-rule (2), present before the Sales Tax Officer or Assistant Sales Tax Officer of the R.R. Unit or check-post, if any, at such railway station, steamer station, port, airport, post office or courier office –

(a)      a way bill in Form VAT-402, if he is a dealer;

(b)      a declaration in Form VAT-402 A, if he is a casual dealer or a person; in duplicate, obtainable in the manner as laid down in rule 80 or 81, as the case may be, and he shall also present the railway receipt, bill of lading, air consignment note or any document of like nature in respect of such consignment of goods for countersignature by such Sales Tax Officer or Assistant Sales Tax Officer.

(5)     The Sales Tax Officer or the Assistant Sales Tax Officer of the R.R. Unit or check-post or barrier shall endorse the duplicate copy of way bill or declaration and countersign the railway receipt, bill of lading, air consignment note or the document of like nature, recording therein the serial number and the date of the way bill or declaration presented before him under sub-rule (1) and return the duplicate copy of the way bill or declaration so endorsed along with such railway receipt, bill of lading, air consignment note or the document of like nature to the dealer, casual dealer or person, as the case may be, for taking delivery of such consignment of goods, after verifying correctness of the way bill or declaration in terms of provisions of sub-rule (9).

(6)     Before returning the duly endorsed duplicate copy of way bill or declaration, to the dealer, casual dealer or person, as the case may be, the Sales Tax Officer or Assistant Sales Tax Officer at the R.R. Unit or check-post or barrier, shall make a record of the particulars of such consignment of goods and the serial number and the date of the way bill or declaration related thereto, and retain the original copy of the way bill or declaration.

(7)     If any consignment of goods despatched from any place outside the State reaches such a railway station, steamer station, port, air port, post office or courier office, where no R.R. Unit or check-post or barrier has been established in and around the railway station, steamer station, port, air port, post office or courier office, any dealer, causal dealer or person, who imports or brings into the State such consignment of goods on his own account, shall present within seven working days before the Assistant Commissioner or the Sales Tax Officer or Assistant Sales Tax Officer, under whose jurisdiction –

(a)      in case of a dealer, the place of business, in respect of which the certificate of registration has been granted;

(b)      in case of a casual dealer, the place at which, he intends to carry on business; or

(c)      in case of a person, the place, where he ordinarily resides, is situated, the railway receipt, bill of lading, air consignment note or the document of like nature along with the way bill or declaration, as the case may be, in duplicate for countersignature of such railway receipt, bill of lading, air consignment note or document of like nature, mentioning therein the serial number and the date of the way bill or declaration.

(8)     While transporting any consignment of goods by any road vehicle on its way to the destination, the driver or the person in charge of the goods shall carry with him the duplicate copy of the way bill or declaration, duly endorsed under sub-rule (5) or (7), and on interception of such vehicle for the purpose of section 74 outside the R.R. Unit or check-post or barrier by such officer, as the Commissioner may authorize, at any place on the way to destination, the driver or person in charge of the goods, shall present before him such way bill or the documents related thereto.

(9)     The Assistant Sales Tax Officer or Sales Tax Officer of a R.R. Unit or the officer-in-charge of a check-post or barrier or [159][any taxing authority appointed under sub-section (2) of section 3 and authorised by the Commissioner under sub-section (3) of section 74] for interception of goods in transit within the territory of the State, may verify correctness of the description, quantity, weight or value of the goods of a consignment as mentioned in the accompanying way bill or declaration, with the description, quantity, weight or value, which are actually found in such consignment.

(10)   Where, upon verification made under sub-rule (9), and on search of the vehicle carrying the goods, or by opening the container or packages, if necessary, –

(a)      the description, quantity, weight or value of goods in any consignment is found by the authority referred to in sub-rule (9) to be at variance with the description, quantity, weight or value of the goods disclosed in the way bill or declaration; or

(b)      the document presented in respect of the goods in any consignment is found by the authority referred to in sub-rule (a) to be false or incorrect, either in respect of the description, quantity or weight of such consignment of goods, or the value thereof; or

(c)      if it is found by the authority referred to in sub-rule (9) that either the consigner or the consignee or goods is not in existence as per records available in the office of the respective assessing authority or after enquiry, as may be deemed necessary, such authority shall seize the consignment of goods for reasons to be recorded in writing under sub-section (4) of section 74 for contravention of sub-section (2) of that section.

(11)   Any violation of the provision of this rule by a dealer, casual dealer or person as the case may be, in respect of any consignment of goods imported or brought into the State on his own account, or by the driver or person in charge of the goods transporting such consignment of goods from railway station, steamer station, port, air port, post office or courier office shall be deemed to be a contravention of the provisions of section 74 by such dealer, casual dealer or person, as the case may be.

(12)   Where a dealer, casual dealer or person or the driver or person-in-charge of the goods, as the case may be, fails to present the duly endorsed copy of way bill or declaration, either before the Assistant Sales Tax Officer or the Sales Tax Officer  of the R.R. Unit or the officer-in-charge of the check-post or barrier, established in and around such railway station, steamer station, port, air port, post office or courier office, shall be deemed to be a violation of the provision of section 74.

(13)   Where any consignment of goods referred to in sub -rule (4) –

(a)      reaches a railway station, the railway authorities; or

(b)      reaches a port, the port authorities; or

(c)      reaches air port, the cargo complex authorities; or

(d)      reaches post office or courier office, the concerned authorities; or

(e)      is transported into the State by the Container Corporation of India Ltd, the authorities of the Corporation, shall not deliver or hand over the consignment of goods to the consignee, unless they are satisfied that the way bill or declaration has been endorsed, and the railway receipt, air consignment note or the document of goods has been countersigned by such authority as referred to in sub-rule (5) or (7) in such manner as mentioned in that sub- rule.

(14)   Any dealer, casual dealer or person shall, while transporting through railways, water ways, air, postal or courier services, any consignment of goods from any place in the State to any place outside the State, either on his own account or on account of any consignee, present a way bill or declaration, as the case may be, along with the challan or bill to the Assistant Sales Tax Officer or Sales Tax Officer [160][or the Assistant Commissioner of Sales Tax] of the R. R. Unit or officer-in- charge of the check-post or barrier or Sales Tax Officer having jurisdiction, before the consignment of goods is booked for transportation.

(15)   Subject to provision of sub -rule (5), the endorsed duplicate copy of the way bill or declaration shall be returned to the dealer, casual dealer or person, as the case may be, after making a record of the particulars of such consignment of goods and the serial number and date of the way bill or declaration related thereto, by the authorities as referred to in sub- rule (14) and the original copy of the way bill or declaration shall be retained.

(16)   Any violation of any provision of this rule by a dealer, casual dealer or person in respect of any consignment of goods or by the driver or person in charge of the goods, transporting such consignment of goods, shall be deemed to be a contravention of the provisions of section 74 by such dealer, casual dealer or person.

Rule - 85. Control on clearing, forwarding or booking agent and any person transporting goods and information to be furnished by such agent or person.

(1)     Every clearing, forwarding or booking agent or broker or a person transporting goods, engaged in business as specified in sub-section (1) of section 76, shall furnish information about his place of business in Form VAT-408 to the Sales Tax Officer or Assistant Commissioner, as the case may be, having jurisdiction, within one month from the date of commencement of the Act or within one month of the commencement of the business, whichever is later.

(2)     Where any goods or goods vehicle of any transporter, bailee or the owner or the lessee of a warehouse has been seized under sub-section (8) of section 76, the Sales Tax Officer [161][Assistant Commissioner of Sales Tax] having jurisdiction shall assess the tax due on that part of the goods, which is found to have not been accounted for, at the prevailing market price and demand, by order, the tax and penalty, as specified in that section, in FormVAT-313 to be paid by such date as maybe specified in that order:

Provided that before the tax due is assessed and the penalty is imposed, the transporter, bailee or the lessee of the warehouse, as the case may be, shall be allowed an opportunity of being heard.

CHAPTER XI APPEAL, REVISION AND RECTIFICATION

Rule - 86. Appeals to the appellate authority.

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(1)     Any dealer aggrieved by an order passed under section 34, 40, 42, 43, 44, 45,49 or 52 may prefer appeal within thirty days from the date of receipt of such order before -

(a)      [162][the Joint Commissioner or Deputy Commissioner of Sales Tax having jurisdiction and subject to distribution of work by the Commissioner, if the order is passed by an Assistant Sales Tax Officer or a Sales Tax Officer or an Assistant Commissioner, as the case may be] and

(b)      the Additional Commissioner, if the order is passed by an [163][or a Deputy Commissioner or Joint Commissioner of Sales Tax, as the case may be, subject to distribution of work by the Commissioner]:

Provided that an appeal preferred after the period of thirty days from the date of receipt of such order may be admitted by the appellate authority if it is satisfied that there was sufficient cause for not preferring the appeal within the period specified.

Rule - 87. Submission of appeal petition.

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A memorandum of appeal against an order of assessment under sections 40, 42, 43, 44, 45 and 49 with or without penalty and a memorandum of appeal against penalty imposed under sub-sections (2) and (3) of section 34 or sub-section (1) of section 52 shall be in FormVAT-501, which shall be signed by the dealer or his agent, verified in the manner specified in the form and may be submitted in person in the office of the appellate authority or sent by registered post:

Provided that no memorandum of appeal shall be entertained unless it is accompanied by fee as specified in rule 125, proof of payment of admitted tax in full and twenty per centum of the amount [164][of the tax or interest or both] in dispute.

Rule - 88. Summary rejection of appeal.

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(1)     If the memorandum of appeal is not in the specified form or if all the requirements of the form are not fully complied with, the appellate authority may reject the appeal summarily, after giving the appellant such opportunity, as it may think necessary, to rectify the defects.

(2)     The appeal may also be summarily rejected on other grounds for which an order in writing shall be passed by the appellate authority:

Provided that before an order rejecting an appeal is passed, the appellant shall be given a reasonable opportunity of being heard.

Rule - 89. Hearing of appeal.

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(1)     If the appeal is not summarily rejected, the appellate authority shall fix a day and place of hearing of the appeal and may from time to time adjourn the hearing:

Provided that not more than three adjournments shall be granted to a party for hearing of the appeal.

(2)     The appellate authority may, before disposing of any appeal, make such further enquiry as it thinks fit or cause further enquiry to be made by the Assistant Sales Tax Officer [165][or Deputy Commissioner or Joint Commissioner of Sales Tax] or the Sales Tax Officer or Assistant Commissioner, as the case may be.

(3)     The appellate authority shall not enhance an assessment or a penalty without giving the appellant a reasonable opportunity of being heard against such enhancement.

Rule - 90. Procedure in case of death of one of several appellants or of sole appellant.

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If an appellant dies while the appeal is pending and it cannot be proceeded with unless his legal representative is made a party to the appeal, the appellate authority shall adjourn the hearing to enable his legal representative to appear and apply for being made a party and where the legal representative fails to do so within sixty days from the date on which the appellant dies, the appeal shall be abated as regards the deceased and in such cases the [166][proviso to sub-rule (2)] of rule 88 shall not apply:

Provided that if the legal representative becomes a party within the time specified above and the case is proceeded with not more than three adjournments shall be allowed for hearing of the case.

Rule - 91. No abatement by reason of death after hearing.

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Notwithstanding anything contained in rule 90, there shall be no abatement of appeal by reason of the death of any appellant between the conclusion of the hearing and the passing of the order, but the order may in such case, be passed notwithstanding the death and shall have the same force and effect as if it had been passed before the death took place and no legal representative need be made party in such case.

Rule - 92.Notice to person likely to be adversely affected.

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Before an order is passed on appeal, if such order is likely to affect any person other than the appellant adversely, such other person shall be given a reasonable opportunity of being heard.

Rule - 93. Second appeal under section 78.

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(1)     (a) A memorandum of appeal against an appellate order made under section 77 shall be in Form VAT-502 and shall be verified in the manner specified therein.

(b) A memorandum of appeal or memorandum of cross objections to be filed before the Tribunal for and on behalf of the Government shall be signed and verified by the Commissioner or such other officer, who may be authorised in this behalf by the Commissioner.

(c) A separate form shall be used for appeal against each order.

(d) An appeal preferred by any dealer or person other than the Government shall be accompanied by the requisite fee.

(2)     The memorandum of appeal shall be filed in duplicate and shall be accompanied by the original or an authenticated copy of the order appealed against and two copies of the order of the assessing authority.

(3)     Where in any case the dealer or the Government, as the case may be, fails to file a memorandum of cross objections within the time provided for in sub-section (2) of section 78 the appeal shall be disposed of on its merit by the Tribunal.

Rule - 94.Presentation of appeals.

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(1)     An appeal shall be presented in person by the appellant or by his agent to the Registrar during office hours or sent to him by registered post.

(2)     Every appeal presented by an authorised agent on behalf of a dealer shall be accompanied by a letter of authority appointing him as such.

(3)     Every appeal filed by a person other than the Government shall specify the name and address of the appellant and specify the State represented by the Commissioner as the respondent, and where an appeal is filed by the Government, the name and address of the respondent shall be specified, so far as they can be ascertained.

Rule - 95. Registration of appeal.

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(1)     On receipt of an appeal, the Registrar shall endorse on it the date of receipt and shall, thereafter, as soon as possible, examine whether –

(i)       the person presenting it has the authority to do so; and

(ii)      it conforms to the provisions of the Act and these rules, and if he is satisfied on these points, he shall cause it to be registered in the appropriate register maintained under rule 96.

(2)     If the Registrar finds that the appeal does not conform to the requirements of the Act and these rules, he shall call upon the appellant by a notice in Form VAT-503 to remedy the defects within a reasonable period not exceeding fifteen days to be specified by him and may, for good and sufficient cause, extend such period, provided the aggregate period allowed does not exceed a month.

(3)     If the defect or defects are remedied within the period allowed, the Registrar shall cause the appeal to be registered.

(4)     If the defect or defects are not remedied within the period allowed, the Registrar shall make a report to that effect to the Tribunal, who may reject the appeal or fix a date for hearing the matter and give a notice for such hearing to the appellant or his agent in Form VAT-504.

(5)     On the date so fixed, the tribunal shall, after hearing the appellant or his agent, pass orders directing either the registration of the appeal or its rejection and where the appeal is rejected, the Tribunal shall record the reasons for doing so.