THE UTTARAKHAND (THE UTTARANCHAL VALUE ADDED TAX ACT, 2005) NOTIFICATIONS
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Body Notification No. 1314/XXXVI(4)/2008, Dated : 31st March, 2008.

As passed by the Uttarakhand Legislestive Assembly and assented to by the Governor on 25th March, 2008.

THE UTTARAKHAND (THE UTTARANCHAL VALUE ADDED TAX ACT, 2005) (AMENDMENT) ACT,2008

(Act No. 05 of 2008)

ACT

to amend The Uttarakhand (the Uttaranchal Value Added Tax Act, 2005) Adaptation and Modification Order, 2007.

Be it enacted by the Uttarakhand Legislative Assembly in the Fifty-Ninth year of the Republic of India as follows :-

1. Short title and commencement :

(1) This Bill may be called the Uttarakhand (the Uttaranchal Value Added Tax Act, 2005) (Amendment) BILL, 2008.

(2) It shall come into force at once.

2. General :

In the Uttarakhand (the Uttaranchal Value Added Tax Act, 2005) Adaptation and Modification Order, 2007, hereinafter referred to as the "Principal Act" the designation "Commercial Tax Officer" shall be substituted for the designation "Commercial Tax Officer Grade - I" Wherever it occurrs therein.

3. Amendment of Section - 2:

In section 2 of the Principal Act -

(a) for the existing sun-section (9), the following sub-section shall be substituted; namely-

"(9) "Commissioner" means the Commissioner of Commercial Tax, appointed by the State Government and includes an Additional Commissioner, and a Joint Commissioner of Commercial Tax appointed by the Government;"

(b) For the existing sub-section (25), the following sub-section shall be substituted, namely-

"(25) "Officer-In-Charge of a check post or barrier" means an officer not below the rank of Commercial Tax Officer, Posted at such check post or barrier;"

"(c) A company or a corporation or a financial Institution or a bank."

4. Substitution / Amendment of clause in sub-section (2) and (7) of section 4:

In section 4 of the Principal Act-

(a) In sub-section (2) after clause (f), the following clause (g) shall be inserted, namely-

"(g) In case of sale of used capital goods, purchased within one year prior to the date of the commencement of this Act or, as the case may be, from the date of registration under this Act, and on the purchase of which no tax has been paid in the State under this Act or under the repealed Act at the time of purchase, the tax shall be payable at the rates as per the Schedules;

Provided that in case tax has been paid in the State under this Act or the repealed Act at the time of purchase, and an Input Tax Credit in respect thereof has been claimed, no tax shall be payable on such sale."

(b) In the last line of clause (a) of sub-section (7), for the words "at the rate of 4% the words "at the rate prescribed under sub-section (1) of section 8 of the Central Sales Tax Act, 1956" Shall be substituted.

(c) In the proviso to clause (a) of sub-section (7) for the words "4% occuring therein, the words "the rate prescribed under sub-section (1) of section 8 of the Central Sales Tax Act, 1956" shall be substituted.

(d) In the beginning of clause (b) of sub-section (7) for the words "Where a dealer requires any goods, referred to in clause (a) for use by him in the manufacture in the State of any goods" the words "Where a dealer requires any goods, referred to in clause (a) for use by him in the manufacture in the State of any goods" the word "Where a dealer requires any goods, referred to in clause (a) for use by him for the manufacture of any taxable goods in the State" shall be substituted.

(e) For the words "the Special Category Goods" occuring in the third of clause (e) of sub-section (7) the words "the goods" shall be substituted.

(f) In clause (e) of sub-section (7) after the words "such dealer" the words "as penalty" used therein shall be deleted.

5. Amendment/Substitution in clause of sub -section (3), (6), (7) and (8) of section 6:

In section 6 of the Principal Act -

(a) In clause (d) and clause (e) of sub-section (3) for the words "raw material" occurring in the above clause the words "raw material and consumables" shall be substituted.

(b) In both the first and second proviso to sub-section (3) for the words "in excess of four percent", occurring therein the words "in excess of the rate prescribed under sub-section (1) of section 8 of the Central Sales Tax Act, 1956" shall be substituted.

(c) In clause (a) of sub-section (6) for the words "after expiry of three months" Occurring therein, the words "after expiry of six months" shall be substituted.

(d) For clause (b) of sub-section (6) the following clause shall be substituted; namely-

"(b) In respect of purchase of Capital Goods up to the date of commencement of commercial production, a manufacturer shall be eligible to claim the input tax credit, in two equal yearly instalments following the year in which the date of first sale of such taxable goods falls. In case of purchase of Capital Goods after the date of commencement of commercial production, the total amount of such input tax credit for a financial year shall be claimed in two equal yearly instalments commencing from the next financial year shall be clamed in two equal yearly instalments commencing from the next financial year. The yearly installments shall be claimed in the return for the period ending September or in the return of any of the subsequent tax periods in each of the two years,

Provided that the amount of input tax credit in case of goods sold in the course of export out of the territory of india shall be claimed by the dealer in one yearly installment instead of two yearly installments as above."

(e) After sub-clause (x) of clause (a) of sub-section (7), the following sub-clause shall be inserted, namely-

"(xi) goods Purchased from a registered dealer who has given option to pay Presumptive Tax at a percentage of turnover of sales under sub-section (1) of section 7 or a lump sum amount in lieu of tax on sale and / or purchase of such goods by way of composition under sub-section (2) of section 7."

(f) For the existing clause (m) of sub-section (8), the following clause shall be substituted; namely-

"(m)Special category Goods specified in Schedule-III or the goods except molasses used in manufacture, processing or packing of such goods; or"

(g) In both the provisos after clause (n) of sub section (8) for the words "item (f)" mentioned therein the words "item (g)" shall be substituted

(h) In the first proviso of clause (n) of sub-section (8) for the words "in excess of four percent" occuring therein the words " in excess of the rate prescribed under sub-section (1) of section 8 of the Central Sales Tax Act, 1956" shall be substituted.

6. Substituted sub-section (12) of Section 20:

For the existing sub-section (12) of section 20 of the Principal Act, the following sub-section shall be substituted; namely-

(12) "No security under this section shall be required to the furnished by a dealer exclusively dealing in goods exempted from tax under section 4 and not making use of any of the forms prescribed under this Act or under the Central Sales Tax Act, 1956."

7. Substitution of sub-section (3) of section 23:

For the existing sub-section (3) of section 23 of the Principal Act the following sub-section shall be substituted; namely-

"(3) Every dealer or a person liable to pay tax shall also submit along with the return a list of purchase from registered dealers of goods in respect of which input tax credit is being claimed and also a list showing sale to the registered dealers, in the prescribed manner containing such particulars as may be prescribed."

8. Substituion of sub-section (4) and (8) of section 25:

In section 25 of the Principal Act-

(a) For the existing sub-section (4), the following sub-section shall be substituted; namely-

"(4) Notwithstanding any thing contained in sub-section (3) above, the cases of the following categories shall be subjected to regular assessment after scrutiny-

(a) cases in which the gross turnover exceeds five crore rupees in a financial year;

(b) cases in which the claim of input tax credit exceeds one lakh rupees in a year;

(d) cases based on definite intelligence about evasion of tax;

(e) cases selected to a maximum of 20% on the basis of any criteria or on random basis from amongst the cases covered under the provisions of sub-section (3) and sub-section (4) for self assessment:

Provided that the State Government may, by notification in the Official Gazette, change the criteria for selection of cases for scrutiny."

(b) For the existing sub-section (8) the following sub-section shall be substituted; namely-

"(8) Tax Audit :

(a) Notwithstanding that the assessment of a dealer for any year is pending or he has been assessed or re-assessed under the provisions of this Act for any assessment year or its part, tax audit of records, stock in trade or related documents of the dealer may be conducted for the purpose to ensure compliance by the dealer with the requirements of the Act.

(b) The tax audit may be conducted by officer(s) posted in the Tax Audit Wing or by other officer(s) of the department including assessing officers so authorised by the Commissioner or by an officer of the Tax Audit Wing not below the rank of an Additional Commissioner.

(c) For the purpose of tax audit under clause (a) the officer(s) authorised shall examine the correctness of the return of returns filed and admissibility of various claims including input tax credit.

(d) The selction of dealers for the purpose of tax audit shall be in the manner as may be prescribed.

(e) The tax audit may be taken up in the office, business premises or warehouse of the dealer. However, the officer conducting audit may, if he deems it necessary, require the dealer to either attend and produce or cause to be produced the books of accounts and other documents in his office or any other place which may be specified in the notice in the prescribed manner.

(f) The Officer(s) conducting the tax audit shall have powers under Section 42 of the Act and may make or cause to be made extracts or copies from books of accounts and other documents, make inventory of stock, seek such information or statement, which may be useful and relevant to any proceeding under this Act.

(g) The dealer shall provide full cooperation and assistance to the Audit party during the course of audit.

(h) After the completion of the tax audit the audit report shall be sent to the assessing authority and also to the dealer within 15 days of the tax audit.

(i) The Assessing authority on the basis of the audit report shall initiate necessary proceedings as per the provisions of the Act."

9. Amendment in sub-section (1) and its proviso of section 34:

In sub-section (1) and its proviso of section 34 of the Principal Act, for the words "within 30 days" the words "within 60 days" shall be substituted.

10. Substitution of proviso in sub-section (3) of Section 36:

In sub-section (3) of section 36 of the Principal Act, the following proviso shall be added, namely-

"Provided that if any amount is found to be refundable in the cases deemed to have been self assessed in accordance with sub-section(3) of section 25, the refund voucher, shall be sent within one month of the expiry of one year from the last date prescribed for filing the annual return relating to the particular assessment year or the actual date, when the return has been filed, whichever is later."

11. Substitution of sub-section(2) of section 37:

For the existing sub-section (2) of section 37 of the Principal Act, the following sub-section shall be substituted, namely-

"(2) The said dealer shall furnish a Bank Guarantee or other security or documentary evidence of export of goods to the satisfaction of the assessing authority for an amount equal to the amount of the provisional refund. On receipt of such guarantee or, other security or documentary evidence of export the assessing authority shall, subject to the provisions of this section and the rules, grant the dealer within thirty days a provisional refund that may be found as refundable. The dealer shall keep the bank guarantee or security furnished by him valid upto the date of recovery of excess amount, if any, after final assessment:

Provided that if the amount found refundable is not refunded to the dealer within the period prescribed, the dealer shall be entitled to simple interest on such amount at the rate of nine percent per annum."

12. Repeal of sub-section (3) of section 44:

Sub-section (3) of section 44 of the Principal Act, is hereby repealed.

13. Amendment in sub-section (1) of section 51:

In sub-section (1) of section 51 of the Principal Act for the words "within thirty days" used therein the words "within sixty days" shall be substituted.

14. Substitution of sub-section (1) of section 58:

For the existing sub-section (1) of section 58 of the Principal Act the following sub-section shall be substituted, namely-

"(1) If the assessing authority is satisfied that any dealer or other person has committed the offence mentioned in any clause of column (1) of the following chart it may, after such enquiry as deemed necessary, direct that such dealer or person shall pay, by way of penalty, in addition to the tax, if any, payable by him the amount mentioned in the related column (2), namely-

Column - 1	Column - 2
Offences	Penalties
(i) being liable for registration under this Act carries on or continues to carry on business as a dealer beyond thirty days from the date on which he becomes liable to obtain registration, without obtaining registration under and in accordance with the provisions of section 15 or section 16 or with out furnishing the security demanded under section 20;	(i) a sum of rupees two hundred for each month or part thereof for the default during the first three months and rupees five hundred for every month or part thereof after the first three months during which the default continues;
(ii) not being a registered dealer falsely represents that he is or was a registered dealer at the time when he sells or buys goods:	(ii) a sum not exceeding five thousand rupees;
(iii) knowingly uses a false registration number including the registration number of another person, with a view to evade or avoid or shift the liability to pay the tax;	(iii) a sum not exceeding ten thousand rupees;
(iv) has, without reasonable cause failed to furnish the return of his turnover or to furnish it within the time allowed and in the manner prescribed;	(iv) a sum not less than ten percent, but not exceeding twenty five percent of the tax due if the tax due is upto ten thousand rupees and fifty percent if the amount due is above ten thousand rupees;
(v) has submitted a false return of his turnover under this Act;	(v) a sum not exceeding ten thousand rupees, or the amount of tax involved, whichever is higher;
(vi) has concealed particulars of his turnover or has deliberately furnished inaccurate particulars of such turnover;	(vi) a sum not less than fifty percent but not exceeding two hundred persent of the amount of tax which would thereby have been avoided,
(vii) has, without any reasonable cause failed- (a) to deposit the tax due under the Act, before furnishing the return or along with the return; (b) to pay within the time allowed the tax due under the provisions of the Act; (c) to deposit with the return , the amount realized as tax in excess of the amount due under the Act or any amount in lieu of such tax by giving it any name or color;	(vii) (a) a sum not less than ten percent, but not exceeding twenty five percent of the amount due if the amount due is up to ten thousand rupees and fifty percent if the amount due, is above ten thousand rupees. (b) a sum not less than ten percent, but not exceeding twenty five percent of the amount due if the amount due is up to ten thousand rupees and fifty percent if the amount due is above ten thousand rupees. (c) a sum not less than the amount of tax realized or amount of tax realized in excess but not more than three times the said amount,
(viii) fails to pay the amount in respect to which moratorium has been granted under the provisions of section 76, within the time specified therein;	(viii) a sum not less than ten percent, but not exceeding twenty five percent of the amount due if the amount due is up to ten thousand rupees and fifty percent if the amount due is above ten thousand rupees.
(ix) demands or charges on the sale or purchase of any goods tax not due under the provisions of this Act;	(ix) a sum not exceeding ten thousand rupees,
(x) realizes any amount as tax on sale or purchase of goods or any amount in lieu of such tax by giving it a different name or color in contravention of the provisions of sub-section (1) or sub-section (2) of section 22;	(x) a sum not less than the amount of tax realized or realized in excess but not exceeding three times of the said amount,
(xi) wrongly claims an amount as input tax credit or claims an input tax credit on the basis of false Sale Invoice;	(xi) a sum of rupees five thousand or three times of the amount claimed whichever is higher
(xii) produces a false proof of deposit of any amount of tax or fee or penalty or any sum due under this Act;	(xii) a sum of rupees five thousand or three times of the amount claimed whichever is higher.
(xiii) does not maintain books, accounts, documents in the prescribed manner; or	(xiii) a sum not exceeding five thousand rupees,
(xiv) has maintained or produced false accounts, registers or documents;	(xiv) a sum not less than fifty percent but not exceeding two hundred percent of the amount of tax which would thereby have been avoided;
(xv) refuses or neglects to furnish any information which may be in his knowledge or possession and which he has been required to furnish for the purpose of this Act, or furnishes information which is false in any material particulars;	(xv) a sum not exceeding rupees two thousand for each default;
(xvi) fails to furnish the audit report in contravention of the provisions of section 62;	(xvi) a sum not exceeding five thousand rupees;
(xvii) refuses to permit or refuses or neglects to produce for inspection or examination any book, document or account or display materials in a computer or in a computer floppy or refuses to allow copies or printout to be taken in accordance with the provisions of section 42;	(xvii) a sum not exceeding ten thousand rupees;
(xviii) closes or leaves the place of his business with a view to prevent inspection under this Act or the rules made thereunder;	(xviii) a sum not exceeding five thousand rupees;
(xix) imports or transports, or attempts to import or transport, abets the import or transport any goods in contravention of the provisions of section 48 or section 49;	(xix) a sum not exceeding forty percent of the value of goods involved or three times of tax leviable on such goods under any of provisions of this Act, whichever is higher.
(xx) fails or refuses to stop or keep stationary his vehicle when asked to do so by the officer-in-charge of a checkpost or barrier established under section 47 or by an officer empowered under section 42;	(xx) a sum not exceeding ten thousand rupees.
(xxi) fails to obtain authorization for transit of goods or to deliver the same, as provided in section 50;	(xxi) a sum not exceeding forty percent of the value of goods involved or three times of tax leviables on such goods under any of provisions of this Act
(xxii) being a transporter or forwarding agent who receives any goods from the driver or person in charge of a vehicle coming from out side the State for carrying them out side the State but fails to prove that goods have been carried out side the State;	(xxii) a sum not exceeding forty percent of the value of goods involved or three times of tax leviable on such goods under any of provisions of this Act, whichever is higher.
(xxiii) being a transporter or hirer or driver or person in charge of a vehicle has prepared documents showing the destination of goods to a place out side the State, fails to produce copies of authorisation for transit of goods along with goods before the officer-in-charge of the exit checkpost and/or fails to prove that after obtaining authorisation for transit from officer-in-charge of the entry checkpost, goods have been carried out side the State;	(xxiii) a sum not exceeding forty percent of the value of goods involved or three times of tax leviable on such goods under any of provisions of this Act, whichever is higher.
(xxiv) tampers with any seal put under sub-section (7) of section 42;	(xxiv) a sum not exceeding twenty five thousand rupees;
(xxv) fails to issue a Sale Invoice in accordance with the provisions of section 60, or has issued a Sale Invoice with incomplete or incorrect particulars or having issued such invoice he has failed to account for it correctly in his books of accounts;	(xxv) a sum of rupees one hundred or double the amount of tax involved, whichever is higher for the first default or two hundred rupees or four times of the tax involved whichever is higher for the second and each subsequent default,
(xxvi) issues a false Sale Invoice, voucher or other documents which he knows or has reasons to believe, to be false;	(xxvi) a sum not exceeding ten thousand rupees;
(xxvii) fails to issue a challan or transfer invoice or transport memo in respect of dispatch or delivery of goods in accordance with the provisions of this Act;	(xxvii) a sum of rupees one hundred or double the amount of tax involved, whichever is higher for the first default or two hundred rupees or four times of the tax involved whichever is higher, for the second and each subsequent default.
(xxviii) issues or receives a false Sale Invoice without sale or purchase of goods shown in such false Sale Invoice;	(xxviii) a sum not exceeding five thousand rupees.
(xxix) issues or furnishes a false or a wrong form of declaration or certificate by reason of which a tax on sale or purchase ceases to be leviable under this Act or the rules made thereunder;	(xxix) a sum of exceeding forty percent of the value of goods involved or three times of tax leviable on such goods under any of provisions of this Act, whichever is higher.
(xxx) makes use of or furnishes a prescribed form of declaration or certificate which has not been obtained by him or his principal or agent in accordance with the provisions of this Act or the rules made thereunder;	(xxx) a sum not exceeding forty percent of the value of goods involved or three times of tax leviable on such goods under any of provisions of this Act, whichever is higher.
(xxxi) transfers a prescribed form of declaration or certificate to any other person except for lawful purposes under the provisions of this Act or the rules made thereunder ;	(xxxi) a sum equal to three times of the amount of tax treating the turnover of the goods liable to tax or forty percent of value of goods mentioned on it whichever is higher and if the form of declaration or certificate is blank, a sum not exceeding ten thousand rupees.
(xxxii) receives or possesses or uses or furnishes with an intention to cause loss to the revenue, any prescribed form of declaration or certificate which has not been obtained by him or his principal or agent in accrodance with the provisions of this Act or the rules made thereunder;	(xxxii) a sum equal to three times of the amount of tax treating the turnover of the goods liable to tax or forty percent of value of the goods mentioned on it whichever is higher, and if the form of declaration or certificate is blank, a sum not exceeding ten thousand rupees,
(xxxiii) obstructs or prevents any officer from performing any of his functions or discharging his duties under this Act or abuses or threatens any officer;	(xxxiii) a sum not exceeding ten thousand rupees,
(xxxiv) provokes or invites other person or persons with a view to prevent any officer from performing his functions or discharging his duties under the Act or participates in an unlawful assembly with a view to prevent an officer from performing his functions or discharging his duties under this Act, or abuses or threatens any officer;	(xxxiv) a sum not exceeding ten thousand rupees,
(xxxv) makes false verifications or declaration on an application for registration or in connection with any other proceeding under this Act;	(xxxv) a sum not exceeding ten thousand rupees,
(xxxvi) otherwise acts in contravention of the provisions of this Act or the rules made thereunder,	(xxxvi) a sum not exceeding five thousand rupees.

Explanation - For the purpose of this section, the Assessing Authority includes an officer not below the rank of Commercial Tax Officer, posted at the check-post or also an officer authorized to exercise powers under section 42 or section 43 or both, as the case may be.

15. Substituted of sub-section (10) of section 59:

For the existing sub-section (10) of section 59 of the Principal Act, the following sub-section shall be substituted; namely-

"(10) Where a registered dealer or a dealer liable to pay tax, consigns any taxble goods to another dealer whether as a result of sale or otherwise:

(a) Such dealer shall issue a sale invoice or a challan in case of consignment of goods otherwise than way of sale which shall contain the name, address and registration certificate no. (which effective date) of the consignor and consignee and the description, quantity, volume of goods and amount of tax charged in case of sale and also estimated value of goods in case of consignment and value of goods in case of sale.

(b) Such dealer shall issue a sale invoice or as the case may be the challan in original to the purchaser or the consignee person and the first copy of the invoice in case of sale and the original copy of the challan in case of consignment shall accompany the goods during the journey of goods and the second copy of the invoice in case of sale and the duplicate of the challan in case of consignment shall be preserved by the dealer as part of his accounts.

(c) Person transporting the goods for delivery to consignment shall record the registration number of the vehicles on the sale invoice or the challan and shall deliver such document to the consignee along with the goods.

(d) The consignee dealer of goods shall not transfer any such document to any other person and preserve the same for the period prescribed under Section 61."

16. Amendment clause (e) of sub-section (2) of section 60:

In clause (e) of sub-section(2) of section 60 of the Principal Act for the word "servant" occurring therein the word "employee" shall be substituted.

17. Substitution of section 62:

For the existing 62 of the Principal Act the following section shall be substituted; namely:-

"(1) Where in any particular year gross turnover of a dealer exceeds One crore rupees or such other amount as the State Government may, by notification in the Official Gazette, specify, then such dealer shall get his accounts, in respect of that year, audited by an accountant before 31st December in the following year and obtain a report of such audit duly signed and verified by such accountant and setting forth such particulars as may by prescribed.

(2) A true copy of such report shall be furnished by such dealer to the assessing authority within two months after the expiry of the period during which the audit is required to be completed as per sub-section (1).

(3) Where in any particular year gross turnover of a dealer exceeds forty lakh rupees but does not exceed one crore rupees then such dealer shall furnish a true copy of the audit report of his accounts duly signed and verified by a chartered accountant, or a Cost Accountant or an Auditor. This report shall be submitted to the assessing authority by 31st December of the following Year.

Explanation- For the purpose of this Section. "Accountant" means a Chartered Accountant as defined in the Chartered Accountant Act, 1949, a Cost Accountant as defined in the Cost and Works Accounts Act, 1959, and includes a person who by virtue of the provisions of sub-section (2) of Section 226 of the Companies Act, 1956, is entitled to be appointed to act as an auditor of Companies registered under the said Act."

18. Substitution of section 75:

For the existing section 75 of the Principal Act, the following section shall be substituted; namely-

Section 75 (Power of Remission of arrears and granting Installments):

"(1) Subject to such conditions and restrictions as may be deemed fit the State Governmenr may remit the arrears of tax, penalty, interest or other dues against any dealer or person.

(2) Subject to such conditions and restrictions, as may be deemed fit-

(a) the State Government may permit any dealer or other person, against whom any amount of tax penalty or other dues is out standing to pay the amount in such number of monthly installments, as it may consider proper in the circumstances of the case; and

(b) the Commissioner may likewise permit any dealer or other person, against whom any amount of tax, penalty or other dues aggregating not more than two lakh rupees is outstanding, to deposit the same in such number of monthly installments, not exceeding twenty, as he may consider proper in the circumstances of the case.

(3) Where such dealer or other person fails to furnish, within thirty days of the receipt of the order referred to in sub-section (2), adequate security to the satisfaction of the proposing of authority concerned for payment of outstanding amount, or fails to comply with the conditions and restriction imposed in such order, the amount due shall be recoverable at once."

19. Substitution of clause (c) of sub-section (6) of section 76:

For clause (c) of sub-section (6) of section 76 of the Principal Act the following clause shall be substituted; namely-

"(c) any taxable dealer purchasing goods from such dealer holding eligibility certificate and who is exempted from tax, whether wholly or partially, shall be entitled to input Tax Credit of the amount of tax charged in the sale invoice of the selling dealer, and for this purpose the sellling dealer shall append the following certificate in the sale invoice regarding-

Certificate

"Certified that the dealer is entitled to exemption from tax @ ............... as per Eligibility Certificate No. .................. Dated ....................................according to which the exemption amount in this invoice comes to Rs. ......................"

By Order,

Smt. INDIRA ASHISH,

Principal Sectetary.