The following Act of the Kerala State Legislature is hereby published for general information. The Bill as passed by the Legislative Assembly received the assent of the Governor on the 27th day of July, 2009.
By order of the Governor,
K. JOHN BRITTO,
Special Secretary (Law).
ACT 13 OF 2009
EXTRACT OF THE KERALA FINANCE ACT, 2009
An Act to give effect to certain financial proposals of the Government of Kerala for the Financial Year 2009-2010.
Preamble.-WHEREAS, it is expedient to give effect to certain financial proposals of the Government of Kerala for the Financial Year 2009-2010.
BE it enacted in the Sixtieth Year of the Republic of India as follows:-
1. Short title and commencement.-
(1) This Act may be called the Kerala Finance Act, 2009.
(2) Save as otherwise provided in this Act,-
(a) clause (i) of sub-section (3) of section 5 and clause (ii) of sub-section (3), sub-clause (a) of clause (iii) of sub-section (4), sub-section (9), sub-sections (13), (14), (20) and (26), sub-clauses (i), (ii), (iii), (iv), (vi) of clause (a), sub-clauses (i), (iii), (vii), (ix) of clause (c) and sub-clause (ii) of clause (d) of sub-section (27) of section 7 shall be deemed to have come into force on the 1st day of April, 2005;
(b) sub-clause (vii) of clause (a), sub-clause (v) of clause (c) and sub-clause (iii) of clause (d) of sub-section (27) of section 7 shall be deemed to have come into force on the 1st day of April, 2007;
(c) sub-section (6) of section 6 and sub-clause (v) of clause (a) of sub-section (27) of section 7 shall be deemed to have come into force on the 1st day of April, 2008;
(d) clause (i) of sub-section (1), sub-sections (2) and (5) to (9) of section 4, sub-sections (1), (2) and (5) to (7) of section 5, sub-sections (1) to (5) and (7) to (15) of section 6 and clause (ii) of sub-section (1), sub-sections (2), (15) to (19) and sub-clause (b) of clause (iv) of sub-section (25) of section 7 shall come into force on such date as the Government may, by notification in the Gazette, appoint; and
(e) the remaining provisions of this Act shall be deemed to have come into force on the 1st day of April, 2009
2. Amendment of Act 11 of 1957.-
In the Kerala Surcharge on Taxes Act, 1957 (11 of 1957), after section 3A, the following section shall be inserted, namely :-
"3B. Reduction of arrears in case of Public Sector Undertakings and Co-operative Societies.-
(1) Notwithstanding anything contained in this Act, or in any judgment, decree or order of any court, tribunal or appellate authority, an assessee which is a Public Sector Undertaking or a Co-operative Society and which is in arrears of tax or any other amount due under this Act relating to the period ending on 31st March, 2005, may opt for settling the arrears by availing reduction at the following rates:-
(a) a complete reduction of the interest on the tax amount and for the amount of penalty and interest thereon ; and
(b) in the case of Public Sector Undertakings and Co-operative Societies which are running in profit, reduction in fifty per cent of the principal amount ; and
(c) in the case of Public Sector Undertakings and Co-operative Societies which are running at loss, a reduction in seventy-five per cent of the principal amount :
Provided that Public Sector Undertakings or Co-operative Societies, the landed property of which are likely to be sold in execution of any judgment, decree or order of any court, tribunal or other authority shall not be eligible to opt under this scheme.
(2) A Public Sector Undertaking or a Co-operative Society, which wishes to opt for payment of arrears under sub-section (1) shall make an application to the assessing authority in the prescribed form before 30th September, 2009, or on such date as may be notified by the Government.
(3) On receipt of an application under sub-section (2), the assessing authority shall verify the same and shall intimate the amount to the assessee, and thereupon they shall remit twenty five per cent of the amount within 15 days of receipt of the intimation and the balance amount in three equal monthly instalments starting from the subsequent month.
(4) If the assessee commits any default in payment of the instalments, the reduction allowed under sub-section (1) is liable to be revoked.
(5) No action under sub-section (4) shall be taken without giving the assessee, an opportunity of being heard
(6) If the amount settled under this provision has been the subjectmatter of an appeal or revision, such appeal or revision may be continued and if the final orders of such appeal or revision results in the reduction of tax payable under this Act, the amount so reduced shall be refunded. But if, as the result of such appeal or revision, the tax payable under this Act is enhanced, the assessee shall pay such enhanced amount with interest thereon, in accordance with the provisions of this Act.
Note:-For the purpose of this section, Co-operative Society means an Apex Co-operative Society incorporated under the Kerala Co-operative Societies Act, 1969 (Act 21 of 1969) and having Government control.".
4. Amendment of Act 15 of 1963.-In the Kerala General Sales Tax Act, 1963 (15 of 1963),-
(1) in section 2,-
(i) clause (i) shall be omitted ;
(ii) in clause (xvii), the words "and includes ethanol blended petrol" shall be added at the end ;
(2) in section 3,-
(i) in sub-section (2), the words "Appellate Assistant Commissioners" shall be omitted ;
(ii) the proviso to sub-section (3) shall be omitted ;
(3) in section 17,-
(i) for the fourth proviso to sub-section (6), the following proviso and explanation shall be substituted, namely :-
"Provided also that the assessment relating to the years up to and including the year 2004-05 pending as on 31st March, 2009 shall be completed on or before the 31st day of March, 2010
Explanation:-For the purpose of the above proviso, it is clarified that the extension of time granted for completion of assessments is applicable in all cases where regular assessments have not been completed before the date fixed for completion of assessment in the respective years.";
(ii) in sub-section (8),-
(a) for the first proviso, the following proviso shall be substituted,namely:-
"Provided that all such assessments or re-assessments pending as on 31st March, 2009 shall be completed on or before 31st March, 2010.";
(b) for the third proviso, the following proviso shall be substituted, namely :-
"Provided also that all such modified assessments or modified reassessments or remanded assessments pending as on 31st March, 2009 shall be completed on or before 31st March, 2010.";
(4) after section 23B, the following section shall be inserted, namely:- "23BA. Reduction of arrears in respect of Public Sector Undertakings and Co-operative Societies.-
(b) in the case of Public Sector Undertakings or Co-operative Societies which are running in profit, reduction in fifty per cent of the principal amount ; and
(c) in the case of Public Sector Undertakings or Co-operative Societies which are running at loss, reduction in seventy-five per cent of the principal amount:
Provided that Public Sector Undertakings or Co-operative Societies, the landed properties of which are likely to be sold in execution of any judgment, decree or order of any court, tribunal or other authority shall not be eligible to opt under this scheme.
(2) A Public Sector Undertaking or a Co-operative Society which wishes to opt for payment of arrears under sub-section (1) shall make an application to the assessing authority in the prescribed form before 30th September, 2009, or on such date as may be notified by the Government.
(3) On receipt of an application under sub-section (2), the assessing authority shall verify the same and shall intimate the amount to the assessee, and thereupon they shall remit twenty-five per cent of the amount within 15 days of receipt of the intimation, and the balance amount in three equal monthly instalments starting from the subsequent month.
(5) No action under sub-section (4) shall be taken without giving the assessee, an opportunity of being heard.
Note:-For the purpose of this section, Co-operative Society means an Apex Co-operative Society incorporated under the Kerala Co-operative Societies Act, 1969 (Act 21 of 1969) and having Government control.";
(5) section 34 shall be omitted;
(6) in section 36, in sub-section (1), the words and figures "section 34 or" shall be omitted;
(7) in section 37,-
(i) in sub-section (1), the words "other than an Appellate Assistant Commissioner" shall be omitted ;
(ii) in sub-section (2), the words "the Appellate Assistant Commissioner or" shall be omitted ;
(8) in section 39,-
(i) for sub-sections (1) and (2), the following sub-sections shall respectively be substituted, namely :-
"(1) Any person objecting to an order affecting him passed by an appropriate authority under sub-section (6) or sub-section (7) of section 14, section 14A, sub-section (2) or sub-section (3) or sub-section (4) or sub-section (4A) of section 17, sub-section (1) or sub-section (2) of section 19, sections 19A, 19B, 19C, 26, 29, 29A, 30, 30A, or an order passed by a lower authority under section 43 and section 45A and any person objecting to an order passed by the Deputy Commissioner under sub-section (1) of section 35, may within a period of sixty days from the date on which the order was served on him in the manner prescribed, appeal against such order to the Appellate Tribunal :
Provided that the Appellate Tribunal may admit an appeal after the expiration of the said period if it is satisfied that the appellant had sufficient cause for not presenting the appeal within the said period.
(2) All appeals together with the interlocutory applications, if any, pending for disposal before any appellate authority under this Act as on the date of commencement of this provision shall stand transferred to the Appellate Tribunal and the Appellate Tribunal shall consider the same as if it is an appeal filed before it.";
(ii) after sub-section (2), the following sub-sections shall be inserted, namely :-
"(2A) No appeal under this section shall be entertained unless at the time of presenting the appeal, the assessee has furnished satisfactory proof of payment of tax due on the turnover admitted by him.
(2B) The authority by whom the order appealed against had been passed or any officer empowered by the Government in this behalf, as the case may be, on receipt of notice that an appeal has been preferred under sub-section (1), may file within thirty days of receipt of the notice, a memorandum of cross objections, which shall be considered by the Appellate Tribunal while disposing of the appeal.";
(9) in section 45A, in sub-sections (1) and (3), the words "or the Appellate Assistant Commissioner" shall be omitted.
8. Validation.-
(1) Notwithstanding anything contained in the Kerala Value Added Tax Act, 2003 (Act 30 of 2004) or any other law for the time being in force, during the period from 1st April, 2009 to the date of publication of thisAct, during which the declared provisions contained in the Kerala Finance Bill, 2009 (Bill No. 254 of the XIIth Kerala Legislative Assembly) were in force, anything done or any action taken or any tax collected by virtue of the said provisions of the said Bill shall be deemed to have been validly done or taken or collected under the said Act and no action shall lie against any dealer or authority on the ground of short levy or refund of excess tax, and tax collected or paid by a dealer, if any, shall be paid over to the Government.
(2) Notwithstanding anything contained in the Kerala Value Added Tax Act, 2003 (Act 30 of 2004) any exemption or reduction of tax granted by virtue of the provisions of the Kerala Finance Bill, 2009 ( Bill No. 254 of the XIIth Kerala Legislative Assembly) in respect of the period with effect from 1st April, 2005 to the date of publication of this Act, shall be deemed to have been validly done and any tax collected or paid by a dealer at such higher rates shall be deemed to have been validly collected or paid and the tax so collected shall be paid over to the Government and shall not be refunded.