The West Bengal Sales Tax - Notifications
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NOTIFICATION No. 947-L.-31st July, 2006.-

The following Act of the West Bengal Legislature, having been assented to by the Governor, is hereby published for general information:-

West Bengal Act XVIII of 2006

EXTRACT OF THE WEST BENGAL FINANCE ACT, 2006.

[Passed by the West Bengal Legislature.]

[Assent of the Governor was first published in the Kolkata Gazette,Extraordinary, of the 31st July, 2006.]

An Act to amend the Indian Stamp Act, 1899, in its application to West Bengal, the Bengal Amusements Tax Act, 1922, the Bengal Agricultural Income-tax Act, 1944, the West Bengal Entertainments and Luxuries (Hotels and Restaurants) Tax Act, 1972, the West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979, the West Bengal Entertainment-cum-Amusement Tax Act, 1982, the West Bengal Sales Tax Act, 1994, the West Bengal Sales Tax (Settlement of Dispute) Act, 1999, the West Bengal State Tax on Consumption or Use of Goods Act, 2001, the West Bengal Transport Infrastructure Development Fund Act, 2002, and the West Bengal Value Added Tax Act, 2003.

The West Bengal Finance Act, 2006.

WHEREAS it is expedient to amend the Indian Stamp Act, 1899 (2 of 1899.), in its application to West Bengal, the Bengal Amusements Tax Act, 1922 (Ben. Act V of 1922.), the Bengal Agricultural Income-tax Act, 1944 (Ben. Act IV of 1944.) , the West Bengal Entertainments and Luxuries (Hotels and Restaurants) Tax Act, 1972 (West Ben. Act XXI of 1972.) , the West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979 (West Ben. Act VI of 1979.), the West Bengal Entertainment-cum-Amusement Tax Act, 1982 (West Ben. Act VI of 1982.), the West Bengal Sales Tax Act, 1994 (West Ben. Act XLIX of 1994.), the West Bengal Sales Tax (Settlement of Dispute) Act, 1999 (West Ben. Act IV of 1999.), the West Bengal State Tax on Consumption or Use of Goods Act, 2001(West Ben. Act XV of 2001.), the West Bengal Transport Infrastructure Development Fund Act, 2002 (West Ben. Act XXI of 2002.) and the West Bengal Value Added Tax Act, 2003 (West Ben. Act XXXVII of 2003.), for the purposes and in the manner hereinafter appearing;

It is hereby enacted in the Fifty-seventh Year of the Republic of India, by the Legislature of West Bengal, as follows:-

1. Short title and commencement.

(1) This Act may be called the West Bengal Finance Act, 2006.

(2) Save as otherwise provided, it shall come into force on such date, or shall be deemed to have come into force on such date, as the State Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act.

8. Amendment of West Ben. Act XLIX of 1994.

In the West Bengal Sales Tax Act, 1994,-

(1) after section 8, the following sections shall be inserted:-

8A. 'Establishment of West Bengal Sales Tax Settlement Commission.

(1) The State Government may, by notification, establish a Commission to be known as the West Bengal Sales Tax Settlement Commission (hereinafter referred to as the "Settlement Commission" to discharge the function assigned to it under the Act.

(2) The Settlement Commission shall consist of not less than three members.

(3) No person shall be eligible for appointment as a member of the Settlement Commission unless-

(a) he is an Additional Commissioner or a Special Commissioner; or

(b) he has been, prior to his retirement on superannuation from the service of the State Government, an Additional Commissioner or a Special Commissioner.

(4) A member of the Settlement Commission shall hold office for a term of two years from the date on which he enters upon his office or until he attains the age of sixty-two years, whichever is earlier.

(5) The other terms and conditions of appointment, salary or allowances payable to a member shall be such as may be prescribed.

(6) A member of the Settlement Commission shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860).

(7) The Settlement Commission shall sit in the bench of three members at such place, and discharge its functions in such manner, as may be prescribed.

8B. Filing of application to Settlement Commission.

(1) A dealer who intends to make an application for settlement of any case to the Settlement Commission,

shall-

(a) in case of any pending case, within one hundred and twenty days from the date of coming into force of this section; or

(b) in any other case, within one hundred and twenty days from the date of receipt of notice of demand, the date of commencement of proceedings under section 88 or the date of registration of a dealer as a sick unit, as the case may be,

apply, in such form, and in such manner, as may be prescribed:

Provided that an appeal, which has been preferred after the expiry of the period prescribed for filing of such appeal, shall not be taken into consideration for the purpose of this section:

Provided further that the appropriate appellate and revisional authority shall not proceed with such case till disposal of the application by the Settlement Commission or till it stands rejected under the provisions of section 8C.

(2) The dealer shall, in his application, state the terms and conditions on which he is willing to settle the case.

Explanation.- the purpose of this section, "case" means-

(a) an appeal under section 79, or a revision under section 80, section 81 or section 82, against an order of assessment passed on or before the 30th day of June, 1996, pending till the date of coming into force of this section;

(b) any proceedings arising out of an offence alleged to have been committed under section 88;

(c) a notice of demand served to a dealer for realisation of tax, interest or penalty, if any, on an assessment which is inconsistent with an assessment made earlier under the Act due to application of different rate of tax in respect of any goods or non-admissibility of a claim of such dealer in respect of this assessment, in spite of the fact that no amendment in the provisions of, or no addition, alteration or modification in the Schedule to, the Act has been made during the period of such earlier assessment and this assessment or in spite of the fact that a particular practice or procedure has been followed by the dealer in respect of such earlier assessment;

(d) a notice of demand served to a dealer for realisation of tax, interest or penalty, if any, on an assessment made under the Act, where the dealer claims by producing verifiable documents that the rate of tax made applicable in respect of any goods in such assessment is different from the rate of tax applicable in respect of such goods under the normal trade practice;

(e) a notice of demand served to a dealer for realisation of tax, interest or penalty, if any, on an assessment made under the Act, where such amount of tax, interest or penalty, if any, remains unrealised on the date of its registration as a sick unit with the Board for Industrial and Financial Reconstruction.

8C. Proceedings before Settlement Commission.

(1) On receipt of the application under section 8B, the Settlement Commission shall give an opportunity of hearing to the dealer making such application.

(2) After hearing the dealer concerned, the Settlement Commission shall refer the matter to the Commissioner for obtaining his views thereon.

(3) Where the Commissioner on the reference of the application under sub-section (2) for his views, finds that such application is not a fit case for settlement by the Settlement Commission, the Settlement Commission shall prima facie, reject such application based on such findings of the Commissioner.

(4) Where the Commissioner on the reference of the application under sub-section (2) for his views, agrees to the terms and conditions of the dealer, the Settlement Commission shall prepare a report, in writing, in respect of such terms and conditions of settlement.

(5) The Settlement Commission shall, after preparing the report under sub-section (4), forward it to the State Government for approval, and upon approval of such report by the State Government, the Settlement Commission shall settle the case, on payment by the dealer concerned of such sum as may be determined by it and in such manner as may be prescribed.

(6) The Settlement Commission shall settle the case within a period of three months from the date of receipt of the application and, in case the dealer and the Commissioner cannot agree to the terms and conditions of settlement, the application shall stand rejected at the expiry of the period of such three months.

(7) The provision of section 86 shall apply, mutatis mutandis, to the Settlement Commission.

8D. Bar on further proceedings in respect of case settled by Settlement Commission.

Upon settlement of the case by the Settlement Commission under section 8C,-

(a) the demand involved in the case shall be deemed to have been fully satisfied and the pending case or cases shall not be proceeded with any further; or

(b) no proceedings by way of review or revision shall be taken in respect of such case; or

(2) in section 17, in sub-section (5), in clause (a), for the words, figures and letters "on or before the 31st day of March, 1997" the words, figures and letters "on or before the 31st day of March, 2006" shall be substituted;

(3) in section 37, in sub-section (3), in the proviso, for the words "within twelve months from the date on which the tax or excess tax, as the case may be, is paid" the words "within twelve months from the date on which the tax or excess tax, as the case may be, is paid or such further period as may be allowed by the Commissioner" shall be substituted;

(4) in section 43A, in the proviso, in clause (ii), for the words "the Directorate of Cottage and Small Scale Industries, Government of West Bengal" the words " Directorate of Cottage and Small Scale Industries, Government of West Bengal or with the Directorate of Tourism, Government of West Bengal" shall be substituted;

(5) in section 46A,-

(a) in sub-section (1),-

(i) for the words, figures and letters "on or before the 30th day of June, 1999" the words, figures and letters "on or before the 31st day of March, 2005" shall be substituted;

(ii) for the words, figures and letters "on the 31st day of December, 1999" the words, figures and letters "on the 1st day of July, 2006" shall be substituted;

(b) in sub-section (3), for the words, figures and letters "on or before the 31st day of March, 2001" the words, figures and letters "on or before the 31st day of January, 2007" shall be substituted;

"(b) where a dealer has furnished a declaration as referred to in sub-section (3) on or before the 31st day of January, 2007, he may, if necessary, furnish such declaration again on or before the 31st day of March, 2007 and if such dealer finds that on the basis of declaration furnished by him on or before the 31st day of March, 2007, an amount of tax or interest has been paid by him in excess of what was payable by him in respect of any return period relating to any year falling within the eligible period, and bring it to the notice of the Commissioner by making an application to him on or before the 30th day of September, 2007,";

(6) in section 79,-

(a) in sub-section (1), for the words "appeal to the prescribed authority" the words, figures and brackets "appeal to the Commissioner, the Special Commissioner, the Additional Commissioner or any person appointed under sub-section (1) of section 6 to assist the Commissoiner as may be prescribed to exercise the power under this section" shall be substituted;

(b) in sub-section (2), for clause (b), the following clause shall be substituted:-

"(b) consider and decide any matter arising out of the proceedings in which the order appealed against was passed, irrespective of the fact that such matter has not been raised before it by the appellant or that no order has been made in the said proceedings regarding such matter for any reason whatsoever;"

(7) section 81 shall be renumbered as sub-section (1) of that section and after sub-section (1) so renumbered, the following sub-section shall be inserted:-

"(2) Notwithstanding anything contained in sub-section (1), the Commissioner may, upon application filed during the period commencing from the 1st day of July, 2006 and ending on the 30th day of June, 2008, revise a final appellate or revisional order from an order of assessment."

(8) in section 82, after sub-section (5), the following sub-section shall be inserted:-

"(6) Notwithstanding anything contained in sub-section (1), no application shall be filed before the Appellate and Revisional Board during the period commencing from the 1st day of July, 2006 and ending on the 30th day of June, 2008, against any final appellate or revisional order from an order of assessment."

(9) in Schedule VIII, in the entry in column (3) against serial No. 2 in column (1), for the word "twenty-five" the word "thirty" shall be substituted.