[Act No. 20 of 1953] [16th July, 1953] An Act to provide for the levy of a taxi on retail
sales of motor spirit in the State of Madhya Bharat BE it enacted as follows:- (1) This Act may be called "The
Madhya Bharat Sales of Motor Spirit Taxation Act, 1953". (a) It extends to the whole of
Madhya Bharat. (2) It shall come into force on such
date as the Government may, by notification in the Gazette, appoint. In this Act, unless there is anything repugnant in
the subject or context- (a) "Commissioner" means
the Commissioner of Sales-tax; (b) "Appellate Authority"
means any person authorised to hear appeals; (c) "Excise Officer" means
a Collector or any officer or other person appointed or invested with powers
under section 6 of the Madhya Bharat Excise Act. Samvat 2009; (d) "Sales-tax Officer"
means a Sales tax Officer of a circle appointed by the Government to perform
the duties and exercise the powers of an assessing authority in such circle; (e) "Government Treasury"
means a treasury or sub-treasury of the Government and includes any office,
branch or agency of the Reserve Bank of India, transacting treasury business
for the Government; (f) "Importer" means any
person who imports motor spirit into Madhya Bharat; (g) "Motor spirit" means
any substance which by itself or in admixture with other substances is
ordinarily used directly or indirectly to provide reasonably efficient fuel for
automotive or stationary internal combustion engines, and includes petrol,
diesel oil and other internal combustion oils, but does not include kerosene,
furnace oil coal or charcoal; (h) "Petrol" means
dangerous petroleum as defined in the Petroleum Act; (i) "Prescribed" means
prescribed by rules made under this Act; (j) "Retail dealer" means
any person who sells or keeps for sale motor spirit for the purpose of
consumption by the person by whom or on whose behalf it is or may be purchased; (k) "Retail sale" means a
sale of motor spirit by a retail dealer for the purpose of consumption by the
person by whom or on whose behalf it is or may be purchased, and the expression
"sell in retail" shall be construed accordingly; and (l) "Wholesale dealer"
means any person who sells motor spirit, or keeps motor spirit for sale, to
retail dealers for the purpose of trade. EXPLANATION-A sale of motor spirit by a
Co-operative Society, or a club, a firm or any association to one of its
members for consumption is a retail sale within the meaning of clause (k). (1) Subject to the provisions of
this Act, there shall be levied on all re ail sales of motor spirit effected
after the commencement of this Act, a tax in the case of petrol at the irate of
Re. 0-1-6 per rupee, subject to the condition that the selling price, inclusive
of Sales Tax, does not exceed Rs. 3 per gallon, and In the case of any motor spirit
other than petrol at the rate of Re. 0-1-0 per rupee, and such tax shall be
payable by the person effecting the sale Provided that the Government may from time to time
by notification fix any other by at which the tax shall be payable: Provided further that 116 such notification shall
come into force until approved by a resolution of the Legislative Assembly. (2) Where any retail dealers obtain
their supplies of motor spirit from an importer or wholesale dealer, it shall
be open to the Government by agreement with the importer or wholesale dealer,
to levy from him in advance the tax which may be payable by the retail dealers
under the sub-section (1) on the sale by them of the motor spirit and the
provisions of this Act relating to the assessment and recovery of tax shall,
subject to such conditions as may be agreed upon, apply to the importer or
wholesale dealer accordingly. (3) No tax shall be levied under
this Act on the sale of any motor spirit in respect of which such tax has
already been paid. (1) No person shall, after the
commencement of this Act, carry on business in motor spirit as an importer or
as a wholesale or retail dealer at any place in Madhya Bharat unless he has
been registered as such under this Act: Provided that persons carrying on business at the
commencement of this Act shall be allowed two months from such commencement to
get themselves registered under this Act. EXPLANATION-Where a person has more than one place
of business, whether in the same town or village or in different towns and
villages, he shall get himself registered separately in respect of each such
place of business. (2) (a) No importer or wholesale
dealer shall, unless also registered as a retail dealer under this Act, sell
motor spirit for consumption or sale in Madhya Bharat to any person other than
an importer or a wholesale dealer or a retail dealer, registered as such under
this Act. (b) No retail dealer shall use
or transfer for consumption any motor spirit stocked by him without its being
included in his accounts and in the next return of retail sales submitted by
him under section 7 (b). (3) Application for registration as
an importer or a wholesale dealer or a retail dealer under this Act shall be
made in such form and to such authority as may be prescribed. (4) Registration may be made subject
to such conditions, if any, as may be prescribed including in the case of an
applicant for registration as a retail dealer the making of such deposit or the
furnishing of such security as the registering authority may consider necessary
to ensure the due payment of the tax which may from time to time be payable by
him. (5) No person including a company or
firm registered as an importer, a wholesale dealer or a retail dealer, shall
carry on the business of public transport requiring the use of motor spirit. Any registration under sub-section (1) of section 4
may be suspended or cancelled by such authority for such reasons and in such
manner as may be prescribed. The Government or, subject to the orders of
Government, the Commissioner may invest any officer or person with such powers
and impose upon him such duties under this Act, as the Government or the
Commissioner, as the case may be, may deem fit and any such officer or person
shall thereupon exercise the said powers and discharge the said duties. Every retail dealer in motor spirit shall in
respect of each place where he carries on business- (a) keep books of account in the
prescribed form; and (b) submit every month to the
Sales-tax Officer and to such other officers as may be prescribed, a return in
the prescribed form and before the prescribed date, showing- (i) the quantity of motor spirit
received by him during the preceding month; (ii) the quantity sold by him duping
such month; and (iii) such other particulars as may be
prescribed. Along with the return referred to in clause (b) of
section 7, the retail dealer shall furnish a receipt from a Government treasury
for the amount of the tax due in respect of motor spirit sold by him in retail
during the preceding month, according to the return. (1) If no return is submitted by a
retail dealer under clause (b) of section 7 in respect of any month before the
date prescribed in that behalf, or if the return is submitted without a receipt
for the full amount of the tax due as required by section 3, or if the return
submitted appears to the Sales-tax Officer to be incorrect or incomplete, the
Sales-tax Officer shall, after making such inquiry as he considers necessary,
determine the amount of the tax due from such retail dealer in respect of such
month and the amount so determined less the sum, if any, already paid by him
shall be paid by the retail dealer into a Government treasury within fifteen
days after demand is made therefor: Provided that before taking action under this
sub-section, the retail dealer shall be given a reasonable opportunity of
proving the correctness and completeness of return. (2) In default of payment within the
period aforesaid, the amount of tax due shall be recovered from the person from
whom the tax is due as if it were an arrear of land revenue. Every importer or wholesale dealer shall- (a) keep books of account in the
prescribed form; and (b) submit every month to the
Sales-tax Officer and to such other officer as may be prescribed, a return in
the prescribed form and before the prescribed date, showing:- (i) the quantity of motor spirit
received by him in the preceding month; (ii) the quantities of motor spirit
supplied by him during such month to other importers, wholesale dealers or
retail dealers, specifying the name and address of each importer, wholesale
dealer or retail dealer, the quantities supplied to him, and the dates on which
the supplies were made; and (iii) such other particulars as may be
prescribed; Any person who- (a) carries on business in motor
spirits as an importer, a wholesale dealer or a retail dealer at any place
without getting himself registered as required by sub-section (1) of section 4
or when his registration in respect of such place is not in force; or (b) fails to keep books of account
as required by clause (a) of section 7 or of section 10; or (c) fails to submit any return as
required by clause (b) of section 7 or of section 10 on or before the
prescribed date, or submits an incorrect or incomplete return, or fails to
submit a receipt for the full amount of the tax due as required by section 8;
or (d) fails to pay within the time
allowed any tax demanded from him under sub-section (1) of section 9; or (e) fraudulently evades the payment
of any tax due under this Act; or (f) acts in contravention of any of
the provisions of this Act; shall on conviction by a Magistrate of first class,
be liable to a fine which may extend to one thousand rupees and in the case of
a conviction under clause (d) or (e), the Magistrate shall specify in the
judgment, the amount of tax which the person convicted has failed or evaded to
pay and the amount so specified shall be recoverable as if it were a fine. Any officer or person exercising powers under this
Act, who- (a) without reasonable ground of
suspicion, enters or searches, or causes to be entered or searched, any
building, vessel, or place; or (b) vexatiously and unnecessarily
seizes the property of any person on the pretence of seizing or searching for
anything liable to confiscation under this Act; or (c) vexatiously and unnecessarily
detains, searches or arrests any person; shall on conviction be punishable with fine which
may extend to five hundred rupees. Any officer or person exercising powers under this
Act who vexatiously and unnecessarily delays forwarding to a Magistrate any
person arrested under this Act and not released by him on bail shall on
conviction be punishable with fine which may extend to two hundred rupees. The motor spirit in respect of which an offence
against this Act is committed and any receptacle in which such spirit is
contained shall be liable to confiscation. (1) When in any case tried by a
Magistrate, the Magistrate decides that anything is liable to confiscation under
section 14, he may after hearing the person, if any, claiming any right thereto
and the evidence, if any, which he produces in support of his claim, order
confiscation or may give the owner an option to" pay such fine as the
Magistrate deems fit in lieu of confiscation. (2) When an offence against this Act
has been committed but the offender is not known, or cannot be found, or when
anything liable to confiscation under this Act and not in the possession of any
person cannot be satisfactorily accounted for, the case shall be inquired into
and determined by the prescribed officer who may order such confiscation: Provided that no such order shall be made until the
expiration of one month from the date of seizure of the things intended to be
confiscated or without hearing the person, if any, claiming any right thereto,
and the evidence, if any, which they produce in support of their claim. (1) Any officer of the Government
specially empowered by them in this behalf may issue a warrant for the arrest
of any person whom he has reason to believe to have committed an offence
against this Act. (2) All warrants issued under this
section shall be executed in accordance with the provisions of the Code of
Criminal Procedure, 1898, by a police officer, or if the officer issuing the
warrant deems fit, by any other person. Any officer of the Government specially empowered
by them in this behalf may- (a) inspect all accounts and
vouchers relating to stock, purchases, sales and deliveries of motor spirit
kept by importers, wholesale dealers and retail dealers; (b) enter and search any building,
vessel, vehicle or place in which he has reason to believe that any motor
spirit liable to confiscation under this Act is kept or concealed; (c) seize any motor spirit and any
receptacle which he has reason to believe to be liable to confiscation under
this Act; and (d) detain, search and arrest any
person whom he has reason to believe to be guilty of any offence under this
Act. The provisions of section 61 of the Code of
Criminal Procedure, 1898, shall apply to all arrests without warrant made under
Section 17. Every officer employed by the Government or by any
local authority shall be bound to give immediate information at the nearest
Police Station or if so required by any general or special order issued by the
Government, to the nearest Excise Officer of rank not below that of
Sub-Inspector of all breaches of any of the provisions of this Act which may
come to his knowledge; and all such officers shall be bound to take
all reasonable measures in their power to prevent the commission of any such
breaches which they may know or have reason to believe are about or likely to
be committed. (1) Every officer of the Sales-tax,
Police or Revenue Departments, not below such rank as may be prescribed, shall,
within the area for which he is appointed, have power to investigate
all offences under this Act. (2) Every such officer shall, in the
conduct of such investigation, exercise the powers conferred by the Code of
Criminal Procedure, 1898, upon an officer-in-charge of a Police Station for the
investigation of a cognisable offence: Provided that if such officer is of opinion that
there is not sufficient evidence or reasonable ground of suspicion to justify
the forwarding of an accused to a Magistrate, or that the person arrested may
be discharged with a warning, such officer shall release him on his executing a
bond, with or without sureties, to appear if and when so required before a
Magistrate and shall make a full report of the case to the Sales-tax Officer. (1) All offences against this Act
shall be bailable. (2) Any officer empowered under
section 20 shall have power to grant bail in accordance with the provisions of
the Code of Criminal Procedure, 1898, to any person arrested without warrant
for an offence against this Act. When anything has been seized by an officer
exercising powers under section 20, such officer, after such inquiry as he
considers necessary- (a) if it appears that such thing is
required as evidence in the case of any person arrested, shall forward the
thing to the Magistrate to whom such person forwarded or for his appearance
before whom bail has been taken; (b) if it appears that such thing is
liable to confiscation but is not required as evidence as aforesaid, shall send
the thing with a report of the particulars of the seizure to the prescribed
authority; and (c) if no offence appears to have
been committed, shall return the thing to the person from whose possession it
was taken and shall report to the prescribed authority accordingly. (1) The prescribed authority
may-accept from any person who has committed or is reasonably suspected of
having committed an offence against this Act, by way of composition of such
offence- (a) where the offence consists of a
sale of motor spirit in contravention of this Act or of the evasion of any tax
payable under this Act, in addition to the tax payable by him under section 3,
a sum of money not exceeding five hundred rupees or double the amount of the
tax payable, whichever is greater; and (b) in other cases, a sum of money
not exceeding five hundred rupees. (2) On the payment of such sum of
money and the tax, if any, payable under section 3, to the prescribed
authority, the accused person shall be discharged, the property seized, if any,
shall be released and no further proceedings shall be taken against such person
or property in respect of such offence. (1) No Magistrate shall take
cognizance of any offence against this Act- (i) except upon the complaint or
report of the Sales-tax Officer or other prescribed authority; or (ii) except upon his own knowledge or
suspicion. (2) Except with the sanction of the
Government, no Magistrate shall take cognizance of any offence against this
Act, unless the prosecution is instituted within six months from the date on
which the offence is alleged to have been committed: Provided that nothing contained in this sub-section
shall apply to any case governed by section 26. (1) No suit, prosecution or other
proceeding shall lie against any officer or servant of the Government, for any
act done or purporting to be done under this Act, without the previous
sanction of the Government. (2) No officer or servant of the
Government shall be liable in respect of any such act in any civil or criminal
proceeding, if the act was done in good faith in the course of the execution of
duties or the discharge of functions imposed by or under this Act. No suit shall be instituted against the Government
and no suit, prosecution or other proceeding shall be
instituted against any officer or servant of the Government in respect of any
act done or purporting to be done under this Act, unless the suit, prosecution or other
proceeding is instituted within six months from the date of the act complained
of. (1) Any person aggrieved by any
order passed under this Act, not being on order passed by any Court or
Magistrate, may appeal- (a) in case such order is passed by
a Sales-tax Officer to the appellate authority; and (b) in any other case, to the
Sales-tax Officer. (2) The appellate authority may,
after giving the appellant an opportunity of being heard, pass such order on
the appeal as such authority thinks fit. (3) Every order passed in appeal
under this section shall, subject to the [towers of revision conferred by
section 28, be final. The Commission may at any time, call for and examine the
record of any order passed by, or any proceedings
recorded by, any officer or person under this Act, for the purpose of
satisfying himself as to the legality or propriety of such order, or as to the regularity of
such proceedings, and may pass such order in reference thereto
as he thinks fit. Nothing contained in this section shall apply to
the orders or proceedings of any Court or Magistrate. (1) The Government may make rules to
carry out the purposes of this Act. (2) In particular and without
prejudice to the generality of the foregoing power, such rules may provide for- (a) all matters expressly required
or allowed by this Act to be prescribed; (b) the regulation of the sale of
motor spirit for the purpose of enforcing the provisions of this Act; (c) the duties and powers of
inspecting and other officers appointed or authorised to exercise any powers
under this Act, and the procedure to be followed by such officers; (d) the form in which, and the time
within which, appeals under section 27 may be preferred; and (e) any other matter for which there
is no provision or no sufficient provision in this Act and for which provision
is, in the opinion of the Government, necessary for giving effect to the
purposes of this Act. (3) In making a rule under
sub-section (1) or sub-section (2), the Government may provide that a breach
thereof shall be punishable with fine which may extend to one thousand rupees
and, where the breach is a continuing one, with further fine which may extend
to fifty rupees for every day after the first during which the breach
continues. (4) The power to make rules
conferred by this section shall, except on the first occasion of the exercise
thereof, be subject to the condition of the rules being made after previous
publication. All rules made and notifications issued under this
Act shall be published in the Gazette and upon such publication, shall have
effect as if enacted in this Act.THE MADHYA
BHARAT SALES OF MOTOR SPIRIT TAXATION ACT, 1953
PREAMBLE