THE ORISSA ENTRY TAX RULES, 1999

CHAPTER I Preliminary

Rule - 1. Short title and commencement

(1)     These Rules may be called [1][the Orissa Entry Tax Rules, 1999.]

[2][(2) They shall come into force on the date of their publication in the Orissa Gazette.]

Rule - 2. Definitions

(1)     In these rules, unless the context otherwise requires-

(a)      "Act" means the Orissa Entry Tax Act, 1999;

(b)      "Form" means a form appended to these Rules;

(c)      "Manufacturer", with all its grammatical variations and cognate expressions, means a dealer or a person in the business of manufacture as defined in the [3][Orissa Value Added Tax Act, 2004;]

(d)      "Month" means a calendar month;

[4][(e) The words "Place of business" shall have the same meaning as assigned to it in the Orissa Value Added Tax Act, 2004;]

(f) "Principal place of business" means In relation to a dealer who has more than one place of business in the State of Orissa, the place of business mentioned as the principal place of business for the State In the application for registration or the registration certificate.

[5][***]

(g) "Registered dealer" means a dealer registered under the Act;

(h) "Rules" means Orissa Entry Tax Rules, 1999;

[6][(i) "VAT Rules" means The Orissa Value Added Tax Rules, 2005; and

(j) "VAT Act" means The Orissa Value Added Tax Act, 2004.]

(2)     All words and expressions used but not defined in these rules, unless the context otherwise requires, shall have the same meaning as respectively assigned to them in the Act or in the [7][VAT Rules].

CHAPTER II Rate of Entry Tax

Rule - 3. Rate of tax

The tax payable by a dealer or any other person under the Act shall [8][subject to the Explanation hereunder,] be at the following rates :-

(1)     [9][***]

(2)     Subject to the provisions of sub-rule (4) the goods specified in Part II of the Schedule to the Act shall be exigible to the tax at the rate of 2% of the purchase value.

(3)     Subject to the provisions of sub-rule (4), the goods specified in Part I of the Schedule to the Act shall be exigible to the tax at the rate of 1% of the purchase value.

[10][(4) Goods specified in Part I and Part II of the Schedule to the Act shall be exigible to tax at a concessional rate of fifty percentum of the rate to which such goods are exigible under sub-rule (3) and sub-rule (2) respectively of this rule, when such goods are brought--

(a)      for use as raw material by a manufacturer on first entry into a local area of the State from outside the State; or

(b)      for use as raw material by a manufacturer on first entry into a local area from another local area; or

(c)      by a registered dealer into any local area and then sold to a manufacturer for use as raw material :

Provided that the tax payable under the Act is collected by a manufacturer in case of (b) and by such registered dealer in case of (c) and shown separately in the cash memo or credit memo or bill issued to such manufacturer and a declaration in Form E-15 from the buying manufacturer is furnished :

Provided further that goods specified in Part I and Part II of the Schedule to the Act when used as raw material directly in manufacture of goods to be exported out of the territory of India shall not be exigible to tax where a declaration in Form E-16 from the buying manufacturer is furnished :

Provided also that if the buying manufacturer contravenes the provisions of this sub-rule, he shall pay the difference in tax or the tax, as the case may be, had he not been entitled to concessional rate of tax or not to pay any tax under the said sub-rule.

Explanation - For the purpose of this sub-rule the word 'manufacturer' shall mean and shall always be deemed to have meant a manufacturer who is registered under the Act.]

(5)   Notwithstanding anything contained in this rule, no tax shall be levied under these rules in respect of such goods purchased by a dealer for which the details are furnished in Form E1 along with the [11][return under sub-rule (1) of Rule 10] to prove that such goods have already been subjected to entry tax or that the entry tax has already been paid under the Act for such goods.

[12][Explanation-

(a)      Goods common to Part I and Part II of the Schedule to the Act shall be taxed at the rate specified in sub-rule (2).

(b)      Where the amount of tax collected by a dealer is higher than the tax payable, the dealer shall be liable to pay the amount of tax so collected.

(c)      [13][***].]

CHAPTER III Registration of Dealers

Rule - 4. Application for registration

[14][(1) (a) Every dealer in scheduled goods who is registered under VAT Act shall apply for registration under these rules to the registering authority of the Circle or Range, as the case may be, in Form E2 within thirty days from the date of registration under VAT Act or within thirty days from the date of coming into force of the Orissa Entry Tax (Amendment) Rules, 2005, whichever is later.

(b) Every dealer in scheduled goods liable to be registered under VAT Act, but not registered under the said Act, shall apply for registration in Form E17 to the registering authority of the Circle under whose jurisdiction his place of business or the principal place of business, as the case may be, is located, within thirty days from the date of his liability to be registered under VAT Act and the rules made thereunder.

(2)   The application for registration under clause (b) of sub-rule (1) shall be accompanied with court fee stamps worth rupees one hundred and declarations in respect of-

(a)      address of additional places of business, branch offices, warehouses or godowns situated inside the State of Orissa in Form E17-A;

(b)      personal details of the proprietor, each of the partners, directors, authorised officer or karta of the business in Form E17-B, affixing thereto two sets of specimen signature and two copies of self-signed passport size photographs of the proprietor (in case of proprietary concern) or, each of the partners individually (in case of partnership firm) or, the managing director, director or the officer duly authorised by the Board of Directors through a resolution (in case of company incorporated under the Companies Act, 1956) or, the president, secretary or duly authorised officer (in case of association of persons) or, the karta (in case of 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;

(c)      bona fides of the applicant by two dealers registered under the Act;

(d)      name and address along with the signature of the manager or employee of the business or any other person associated with the business in Form E17-C, 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 E17-C 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 E17-C incorporating therein such changes.]

Rule - 5. Issue of certificate of registration

[15][(1) Where the registering authority, after examination of the application in Form E17 made under Rule 4 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 sub-rule (2) of Rule 4 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 the Orissa Sales Tax Act, 1947 or VAT Act or the Central Sales Tax Act, 1956; and

(vi)    has paid in full, the security, if any, demanded under the Act and these rules, 

or any person associated with him was earlier granted a certificate of registration either under the Act or VAT 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 in Form E18.

(2)   The registered authority of the Circle 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.

(3)   The certificate of registration shall be kept and displayed at a conspicuous part in the place of business or principal place of business or additional place(s) of business, as the case may be, of the dealer.

(4)   (a) Any dealer may, upon application, obtain from the registering authority, a duplicate copy of the certificate of registration issued in his favour which may have been lost, destroyed or mutilated and such application shall be accompanied by a court fee stamp worth rupees one hundred.

(b) Where a dealer makes an application for a duplicate copy of the certificate of registration under clause (a), he shall surrender along with the application the mutilated copy of such certificate of registration, if any, 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.

(c) 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 the local daily newspapers.]

Rule - 6. Assignment of identification number

[16][(1) Every dealer, who has been issued with a certificate of registration under sub-rule (1) of Rule 5, shall be assigned with an identification number and the said number shall be mentioned in the certificate of registration.

(2)   The identification number shall be of a unique number comprising six numerals, the first two numerals representing the Circle code and the balance four numerals representing the registration number of the dealer and the said identification number shall be mentioned prominently on each invoice/memo, documents/declaration forms, relating to intra-State transactions, inter-State transaction or, exports and all correspondences made with the Circle.

(3)   No certificate of registration issued under sub-rule (1) and the identification number assigned shall be transferred.]

Rule - 7. Amendment of certificate of registration

[17][(1) Where a registered dealer effects or comes to know of any change as specified in sub-section (6) of Section 5, he shall, within fourteen days from the date of occurrence of such change or the change coming to his knowledge, intimate such change to the registering authority 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 dealer shall furnish a copy of the deed of reconstitution of the partnership.

(3)   Where there is reconstitution of the partnership, in case of partnership firm, by admitting new partners, the amendment of the certificate of registration shall be subject to the provisions of clause (b) of sub-rule (2) of Rule 4 and sub-rule (1) of Rule 5.

(4)   (a) Where a dealer intends to change principal place of business from the jurisdiction of one registering authority to the jurisdiction of another registering authority, he shall intimate the particulars of change in address and the reasons for such change, to the registering authority, under whose jurisdiction, he is registered.

(b) The registering authority as referred to in clause (a) shall, after conducting or causing to be conducted such enquiries as he deems necessary, and if he is satisfied that such change is bona fide, send the registration file of the dealer to his counterpart, to whose jurisdiction the principal place of business has been shifted or changed.

(c) The registering authority, on receipt of the registration file of a dealer as referred to in clause (b), shall, after conducting or causing to be conducted such enquiries as he may deem necessary, and if he is satisfied that such change is bona fide, issue a fresh registration certificate incorporating such amendment, but with the same identification number.]

Rule - 8. Cancellation of registration

[18][(1) The certificate of registration shall be deemed to have been cancelled,-

(i)       in case of clauses (i) and (ii) of sub-section (9) of Section 5, with effect from the date of discontinuance or transfer of the business, as the case may be; or

(ii)      in case of clauses (iii), (iv), (v) of sub-section (9) of Section 5, with effect from the date on which the liability of the dealer to pay tax has ceased,

notwithstanding the fact that the certificate of registration is cancelled from a later date.

(2)   The certificate of registration shall be cancelled, in case of clauses (vi) and (vii) of sub-section (9) of Section 5, with effect from the date to be specified in the order of cancellation.

(3)   If a registered dealer fails to make payment of security or additional security, as the case may be, in terms of the demand notice issued under sub-rule (1) or sub-rule (2) of Rule 9, the registering authority, after giving the dealer a reasonable opportunity of being heard, may refuse grant of registration or, as the case may be, order cancellation of registration with effect from a date to be specified in that order.]

Rule - 8A. Use of way bills

[19][Every dealer issued with a certificate of registration under sub-rule (1) of Rule 5 of these rules may cause entry of scheduled goods into a local area on the strength of the way bill and other documents as specified under VAT Rules for transport of such goods by registered dealers under VAT Act and the rules made thereunder and for the purposes of this rule, the provisions of VAT Act and the rules made thereunder shall, mutatis mutandis, apply.]

Rule - 9. Security

[20][(1) The registering authority, for good and sufficient reasons to be recorded, may require a dealer in writing who has applied for registration under the Act to pay, within fourteen days from the date of receipt of the notice of demand, a reasonable security which, in his opinion, will be equivalent to tax estimated by him as being payable by the dealer for one year. The demand of security shall be made in Form E19.

(2)   The registering authority may, where there is reasonable apprehension or likelihood of evasion of tax, require a registered dealer to pay, within fourteen days from the date of receipt of notice of demand in Form E19, a reasonable security or additional security, as the case may be, which, in his opinion, will be equivalent to tax estimated by him as being payable by the dealer for one year.

(3)   The security referred to in sub-rules (1) and (2) shall be furnished by the dealer in any of the following manners :

(a)      by depositing as security in the Government Treasury the amount fixed by the said authority; 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, in favour of such authority for the amount of security demanded.

(4)   (a) If for any reason the security or part thereof, paid under sub-rule (1) or (2), is required to be refunded to the dealer, the said dealer shall make an application to the registering authority in Form E20.

(b) The registering authority shall, on receipt of such application and after conducting or causing to be conducted such enquiries as he may deem necessary and after being satisfied that the dealer is not in default of any dues under the Act and these Rules, release the security and return the document to the dealer on proper acknowledgement.

(c) Where the registering authority is satisfied, after conducting or causing to be conducted such enquiries as he may deem necessary, that the dealer is in default of any amount of tax, interest or penalty or any other amount under the Act and these Rules, he may adjust the security paid for realisation of such outstanding arrear dues and release the balance, if any, to the dealer in the same manner as specified in clause (b).]

CHAPTER IV Return, Assessment, Payment of Tax and set off

Rule - 10. Tax return and payment of tax

[21][(1) (a) The return under sub-section (1) of Section 7 of the Act shall be in Form E3 and shall be submitted within twenty one days of the date of expiry of the month or quarter, as the case may be, to which the return relates. The return shall be submitted to the assessing authority of the Circle or the Range, as the case may be, to whom the return under VAT Act and the Rules made thereunder are required to be submitted by the dealer :

Provided that where the dealer is not registered under VAT Act and the Rules, such return shall be submitted to the assessing authority of the Circle, under whose jurisdiction the principal place of business or place of business, as the case may be, of the dealer is situated.

(b) The revised return under sub-section (2) of Section 7 of the Act shall be in Form E3 and shall be submitted before the date on which the return for the succeeding tax period becomes due.

(c) Every dealer who claims to have made sales against Declarations in Form E15 or E16 or both shall, in respect of such claim, furnish the original Declaration Forms received by him from the purchasing dealer and a statement in Form E3A indicating particulars of sale of scheduled goods made against Declaration in Forms E15 and E16 along with the return.

(2)   (a) Subject to the provisions of clause (d) of this sub-rule, every registered dealer under the Act, who-

(i)       has more than one place of business in the State;

(ii)      has been issued with one certificate of registration under VAT Act and the Rules made thereunder; and

(iii)     files consolidated return under VAT Act and the Rules made thereunder in respect of all places of business, shall furnish consolidated return under the Act in respect of all the places of business to the assessing authority of the Circle or Range, as the case may be, to whom the consolidated return under VAT Act is furnished.

(b) Where every registered dealer who files consolidated return as referred to in clause (a) is directed to file separate returns under VAT Act and the rules made thereunder, he shall file separate returns under the Act in respect of each of his place of business so long as he is required to file separate returns under VAT Act.

(c) Subject to the provisions of clause (d) of this sub-rule, every registered dealer under the Act, who--

(i)       has more than one place of business in the State; and

(ii)      has been issued with one certificate of registration in respect of the principal place of business under the Act, shall furnish consolidated return under the Act in respect of all the places of business to the assessing authority of the Circle under whose jurisdiction his principal place of business is situated.

(d) If the Commissioner is satisfied that a registered dealer filing consolidated return under the Act has failed to maintain books of account in respect of any of his place(s) of business or the return furnished is found to be incorrect and incomplete or has violated any of the provisions of the Act or the rules, he may direct such dealer, by order, to furnish separate returns in respect of each of his place of business.

(3)   (a) The return under sub-rule (1) or (2) 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 Assistant Commissioner of Sales Tax or the Sales Tax Officer of the Range or Circle, as the case may be, for the full amount of tax payable as per the return.

(b) Where a dealer furnishes a return under sub-rule (1) or (2), without proof of full payment of tax payable for the tax period, a notice in Form E21 shall be served upon such dealer for payment of the tax due as per the return furnished and the dealer shall pay the amount of tax defaulted within the time specified in that notice.

(4)   (a) Every dealer required to pay interest under sub-section (5) of Section 7 of the Act 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, or the date of assessment, whichever is earlier.

(b) The dealer shall furnish a statement showing details of calculation of the amount of interest payable as referred to in clause (a) and furnish such statement along with receipted challan or crossed demand draft or banker's cheque evidencing payment of such interest.

(5)   (a) Where a dealer fails to make payment of the tax due and interest thereon along with the return or revised return furnished for any tax period, a notice in Form E22 requiring such dealer to show cause within fourteen days from the date of receipt of the notice, shall be served upon him.

(b) Where the dealer fails to respond to such notice or explain the default in payment of tax or interest or both to the satisfaction of the authority issuing the notice under clause (a), penalty shall be imposed under sub-section (6) of Section 7 and the order shall be issued in Form E23.

(c) Where a dealer fails to furnish the proof of payment as required under sub-section (1) of Section 7 a notice in Form E22 requiring such dealer to show cause within fourteen days from the date of receipt of the notice, shall be served on such dealer and if the dealer either fails to respond to such notice or fails to explain to the authority issuing such notice sufficient cause for not furnishing the proof of payment as aforesaid, the penalty shall be imposed under sub-section (7) of Section 7 and the order shall be issued in Form E23.

(d) The mode of payment of penalty shall be the same as specified in sub-rule (3).

(6)   (a) Each and every return in relation to any tax period furnished by a dealer shall be subject to manual or system based scrutiny.

(b) 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 serve a notice in Form E24 upon the dealer directing him to pay the balance tax and interest thereon by such date as may be specified in that notice.

(7) Where,-

(i)       a person or organisation, who is not a dealer under the Act; or (ii) a dealer, who is not liable to be registered under the Act, brings or causes to be brought into a local area, any scheduled goods in such manner that he becomes liable to pay tax under subsection (2) of Section 3 of the Act, such person, organisation or dealer, as the case may be, shall pay the tax due under the Act at the check-post or barrier, while causing entry of such goods, to the officer-in-charge of the check-post or barrier, or any other officer authorised by the Commissioner in this behalf :

Provided that where such tax has not been collected at the check-post or barrier under Section 23 of the Act, such person, organisation or dealer, as the case may be, shall pay such tax within fifteen days from the date of entry of scheduled goods into the local area and furnish a statement in Form E5 along with the proof of payment as specified in clause (a) of sub-rule (3) to the assessing authority having jurisdiction over the place where such person, organisation or dealer causing entry of the scheduled goods is located or is a resident and on his failure to pay the tax, he may be prosecuted under Section 29 of the Act.]

Rule - 11. Audit

[22][(1) (a) The Commissioner shall, under the provision of Section 9B, select by the 31st January or by any date before the close of every year, not less than twenty per cent of registered dealers for compulsory audit during the following year, by random selection with or without the use of computers.

(b) The Commissioner may, where he 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 any officer as referred to in sub-section (1) of Section 15, direct for specific audit.

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

(d) 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 two years.

(2)   All audits except those provided under clause (c) of sub-rule (1) 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 sub-rule (1) in respect of any specific dealer or class or classes of dealers.

(3)   The tax audit under sub-rule (1) shall be undertaken by a team constituted for the purpose by the Commissioner, as he may deem fit and such audit team may consist of one or more authorities appointed under any prescribed designation under VAT Act.

(4)   (a) 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.

(b) Subject to the provisions of sub-rule (2), where tax audit is conducted under clauses (a), (b) and (d) of sub-rule (1), the dealer shall be given prior notice in Form E25, 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 co-operation to the audit team for smooth conduct of audit.

(c) Where audit of a dealer is proposed to be taken up under clause (c) of sub-rule (1), 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.

(5)   (a) Tax audit shall comprise of verification of all records, documents, books of account including electronic record, relating or incidental to the business of the dealer, 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.

(b) A dealer, who fails to produce any accounts, record or document, in course of the audit, shall if the officer-in-charge of the audit team so requires by notice in Form E26 produce such accounts, records and documents in the office on the date and time specified in that notice.

(c) Audit visit report in Form E27 shall be submitted by the officer-in-charge of the audit team conducting audit to the Commissioner within seven days of the completion of the audit.

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

Rule - 12.

[23][***]

Rule - 13.

3[***]

Rule - 14.

[24][***]

Rule - 15. Self-assessment

[25][(1) Where a dealer files return for a tax period within the period specified in sub-rule (1) of Rule 10 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 the dealer in Form E28 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 unreconciled, such mistake shall be intimated to the dealer to whom the return relates in Form E28 for necessary rectifications within fourteen days from the date of receipt of the intimation and if the assessing authority of the Circle or Range, as the case may be, 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 therein or the mistakes are found to be deliberate with an intention to evade tax or an attempt to evade tax, the return, wherein the mistakes are found, shall be referred to audit under Section 9B of the Act.]

Rule - 15A. Provisional assessment

[26][(1) Where a dealer fails to file return for any tax period within such period as specified in sub-rule (1) of Rule 10, the assessing authority may assess the dealer provisionally under Section 9A.

(2)   Where a provisional assessment under sub-rule (1) is made, the assessing authority shall serve upon the dealer a notice in Form E29 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 - 15B. Audit assessment-

[27][(1) If a tax audit conducted under Section 9B of the Act 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 E30 along with a copy of the Audit Visit Report, upon such dealer, directing him to appear in person or through his authorised 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-

(i)       to produce the books of account maintained under the provisions of the Act and these Rules;

(ii)      to furnish records and documents required to be maintained under the Act and these Rules claiming deductions or concessions, as may be applicable;

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

(iv)    to explain the books of account, other accounts, records, documents or information referred to in sub-clauses (i), (ii) and (iii), 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 documents in support of his claim preferred in his returns, or rebut the charges made in the Audit Visit Report, or any objection which 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)      examine the accounts, documents, records or any other evidence furnished under sub-rule (2);

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

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

(d)      make such enquiry, as deemed necessary, for the purpose of such assessment :

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

(5)   The assessing authority shall, after hearing the dealer in the manner specified in sub-rules (2), (3) and (4), assess the tax due from the dealer accordingly, 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 9C of the Act.

(6)   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 ex parte 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 and shall impose penalty under sub-section (5) of Section 9C.]

Rule - 15C. Assessment of dealers on failure to get registered-

[28][(1) Where a dealer liable to get himself registered under the Act fails to get himself registered, the assessing authority shall serve a notice in Form E31 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 to produce or make available, the books of account, evidence, documents, as may be required for assessment of such dealer under Section 9D of the Act.

(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 and pass order in writing, recording the reasons therein shall,-

(i)       determine the date from which the dealer is liable to be registered under the Act;

(ii)      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 his liability to get registered under the Act; and

(iii)     impose penalty under Section 9D of the Act.

(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 ex parte 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 - 15D. Reassessment

[29][(1) The notice required under sub-sections (1) and (3) of Section 10 shall be in Form E32 and the assessing authority shall fix a date to be specified in that notice for production of such accounts and documents as he may require and for considering any objection which the dealer may prefer.

(2)   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 ex parte assessment of the tax payable by such dealer in respect of such tax period or periods and pass an order of assessment in writing after recording the reasons therein.]

Rule - 16. Order of assessment and notice of demand

[30][The order of assessment under Rules 15B, 15C and 15D shall be in Form E7 and the notice of demand shall be in Form E8]

Rule - 17. Deduction, exemption and assessment of tax

(1)     In determining the purchase value liable to tax under the Act, the amount relating to the purchases made within the local area from a registered dealer carrying on business in the same local area shall be deducted. The purchase value shall be determined on the basis of the invoices unless the same are rejected for reasons to be recorded in writing and after giving reasonable opportunity of being heard to the dealer.

(2)     The purchase value of scheduled goods entering into the local area, which has already been subjected to tax under these rules or on which entry tax under these rules has been paid by any other person or dealer and for which the proof as specified in sub-rule (5) of Rule 3 has been furnished by the dealer, shall be deducted in determining the purchase value liable to tax.

(3)     The purchase value of scheduled goods brought inside a local area but [31][sent outside Orissa] otherwise than by way of sale shall be deducted while determining the purchase value liable to tax under these rules.

Rule - 18.

[32][***]

Rule - 19. Set off of entry tax

[33][(1) Every manufacturer of scheduled goods who is registered under VAT Act shall, in respect of the finished products which are scheduled goods and are sold by it to a dealer or person, as the case may be, either directly or through an intermediary, collect tax payable under Section 3 of the Act from the buying dealer or person, as the case may be.]

[34][(2) The tax so collected from the buying dealer 5[or person, as the case may be] shall be credited to the Government Treasury and the proof of payment thereof shall be submitted along with the statement and return, as the case may be, required to be filed under the Act.]

(3) The tax so collected shall be separately shown in the sale invoices issued by the selling dealer to the buying dealer 5[or person, as the case may be]

[35][(4) The buying dealer shall furnish a detail list of sale invoice so issued as evidence of payment of entry tax along with the return under sub-rule (1) of Rule 10, for the tax period to which such transactions relate.]

(5)   The entry tax paid by the manufacturer of the scheduled goods on the purchase of raw materials which directly go into the composition of finished products by the manufacturer of the scheduled goods shall be set off against the entry tax payable under sub-rule (2) above by the selling dealer :

[36][Explanation.-- Where no entry tax is payable under sub-rule (2) of this rule on a part of the sales effected, the set off admissible under this sub-rule shall be reduced proportionately.]

Rule - 20. Remission of penalty

The Commissioner may for reasons to be recorded in writing remit the whole or part of the penalty imposed under sub-section (2) of Section 11 of the Act :

Provided that no remission shall be allowed if the amount of tax finally determined is not paid in full.

Rule - 21. Recovery from other person

The order of attachment under Section 12 of the Act shall be in Form E9.

CHAPTER V Appeal and Revision

Rule - 22. Appellate authority

The appellate authorities appointed under the [37][VAT Act] and Rules framed thereunder shall be deemed to be the appellate authorities under the Act.

Rule - 23. Appeal

[38][(1) The dealer or person aggrieved by an order passed under the provisions of the Act and intending to prefer appeal under Section 16 of the Act shall present a memorandum of appeal against such order in Form E33 and it shall be signed by the dealer or person or, as the case may be, their agent, verified in the manner specified in that form and may be submitted in person at the office of the appellate authority or sent by registered post.

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

(3)   If the appeal is not summarily rejected, the appellate authority shall fix a date 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.

(4)   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 or the Sales Tax Officer or the Assistant Commissioner of Sales Tax, as the case may be.

(5)   Except for the procedure expressly provided in this rule in respect of appeal under Section 16 of the Act, the provisions under VAT Act and the Rules made thereunder for appeal shall, mutatis mutandis, apply.]

Rule - 23A. Appeal to the Tribunal

3[(1) A memorandum of appeal against an appellate order made under sub-section (7) of Section 16 shall be in Form E34 and it shall be verified in the manner specified therein.

(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 appellate authority.

(3)   With regard to the procedure for presentation, registration, admission and hearing of appeal and filing of memorandum of cross-objections and other procedures not specified under this rule but required for carrying out the purposes of Section 17 of the Act, the provision under VAT Act and the Rules made thereunder shall, mutatis mutandis, apply.]

Rule - 23B. Revision by Commissioner

[39][(1) The application to the Commissioner for revision of an order under sub-section (3) of Section 18 shall be filed within thirty days from the date of receipt of such order :

Provided that the Commissioner may admit an application for revision received after the period specified above, if he is satisfied that the appellant had reasonable cause for not filing the application in time.

(2)   The provisions relating to the procedure in respect of revision under VAT Act and the Rules made thereunder shall, mutatis mutandis apply to revision under the Act.]

Rule - 24. Revision by High Court.

[40][(1) Every revision petition under sub-section (2) of Section 19 to the High Court shall be in Form E10 and the petition shall be accompanied by the original order or a certified copy of the order of the Tribunal against which the petition for revision is filed, the copy of the assessment order, the order of the first appellate authority against which the second appeal was filed and an affidavit and verified in the manner specified in such form.

(2)   The petition shall also be accompanied by a fee of rupees one hundred in case of revision petition filed by a dealer.]

Rule - 25. Filing of appeal.

The appeal under sub-section (1) of Section 17 of the Act shall be filed by the State Representative, or the Additional State Representative or the Deputy State Representative or any other officer authorised by the State Government in that behalf.

CHAPTER V Appeal and Revision

Rule - 22. Appellate authority

The appellate authorities appointed under the [41][VAT Act] and Rules framed thereunder shall be deemed to be the appellate authorities under the Act.

Rule - 23. Appeal

[42][(1) The dealer or person aggrieved by an order passed under the provisions of the Act and intending to prefer appeal under Section 16 of the Act shall present a memorandum of appeal against such order in Form E33 and it shall be signed by the dealer or person or, as the case may be, their agent, verified in the manner specified in that form and may be submitted in person at the office of the appellate authority or sent by registered post.

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

(3)   If the appeal is not summarily rejected, the appellate authority shall fix a date 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.

(4)   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 or the Sales Tax Officer or the Assistant Commissioner of Sales Tax, as the case may be.

(5)   Except for the procedure expressly provided in this rule in respect of appeal under Section 16 of the Act, the provisions under VAT Act and the Rules made thereunder for appeal shall, mutatis mutandis, apply.]

Rule - 23A. Appeal to the Tribunal

[43][(1) A memorandum of appeal against an appellate order made under sub-section (7) of Section 16 shall be in Form E34 and it shall be verified in the manner specified therein.

(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 appellate authority.

(3)   With regard to the procedure for presentation, registration, admission and hearing of appeal and filing of memorandum of cross-objections and other procedures not specified under this rule but required for carrying out the purposes of Section 17 of the Act, the provision under VAT Act and the Rules made thereunder shall, mutatis mutandis, apply.]

Rule - 23B. Revision by Commissioner

[44][(1) The application to the Commissioner for revision of an order under sub-section (3) of Section 18 shall be filed within thirty days from the date of receipt of such order :

Provided that the Commissioner may admit an application for revision received after the period specified above, if he is satisfied that the appellant had reasonable cause for not filing the application in time.

(2)   The provisions relating to the procedure in respect of revision under VAT Act and the Rules made thereunder shall, mutatis mutandis apply to revision under the Act.]

Rule - 24. Revision by High Court.

[45][(1) Every revision petition under sub-section (2) of Section 19 to the High Court shall be in Form E10 and the petition shall be accompanied by the original order or a certified copy of the order of the Tribunal against which the petition for revision is filed, the copy of the assessment order, the order of the first appellate authority against which the second appeal was filed and an affidavit and verified in the manner specified in such form.

(2)   The petition shall also be accompanied by a fee of rupees one hundred in case of revision petition filed by a dealer.]

Rule - 25. Filing of appeal.

The appeal under sub-section (1) of Section 17 of the Act shall be filed by the State Representative, or the Additional State Representative or the Deputy State Representative or any other officer authorised by the State Government in that behalf.