THE
KERALA TAX ON ENTRY OF GOODS INTO LOCAL AREAS RULES,
1994
[IN
CORPORATING UPTODATE AMENDMENTS]
CHAPTER
I
PRELIMINARY
1.
Short title and Commencement: -(1) These rules
may be called "The Kerala Tax on Entry of
Goods into Local Areas Rules, 1994".
(2) They shall come into force at once.
2. Definition: - (1) In these rules,
unless the context otherwise requires, -
(a)
"Act" means the Kerala Tax on Entry of
Goods into Local Areas Act, 1994 (15 of 1994);
(b)
"Deputy Commissioner" means the Deputy
Commissioner of Sales Tax;
(c)
"Registering Officer" means the officer
empowered under the Motor Vehicles Act, 1988 (Central
Act, 59 of 1988) to register the motor vehicle;
(d)
"Taxable purchase value" means the purchase
value of the Goods in respect of which an importer
shall be liable to pay tax under the Act;
(e)
"Total purchase value" means the aggregate
of the purchase value of all the Goods imported
into the local area, whether the whole or any portion
of the purchase value is or is not liable to tax
under the Act,
(2)
Words and expressions used, but not defined in these
rules and defined in the Kerala General Sales Tax
Rules, 1963 shall have the meanings respectively
assigned to them under those rules.
3.
Determination of taxable purchase value:
- The taxable purchase value shall be determined
after making the following deductions from the total
purchase value.
(a)
purchase value of motor vehicles registered in any
Union Territory or any other State under the provisions
of the Motor Vehicles Act, 1988 (Central Act 59
of 1988) prior to a period of fifteen months or
more from the date on which it is registered in
the State;
b)
purchase value of 1Goods on which tax
has been paid in any other local area in the State.
CHAPTER
II
FILING
OF RETURN, ASSESSMENT AND RECOVERY' lit OF TAX AND
PENALTY
4.
Filing of return:-(1) Every importer,
being a dealer in any goods, shall file before the
assessing authority, with whom he is registered
as a dealer under the Kerala General Sales Tax Act
1963 (15 of 1963), on or before the 10th
day of every month, a return in Form No.1,
showing the total purchase value, exempted purchase
value and the taxable purchase value for the preceding
month, together with a Government Treasury chalan
receipt as token of having paid the amount of tax
payable under section 3 of the Act in respect of
the preceding month or accompanied by a crossed
demand draft drawn in favour of the assessing authority
on any Nationalized Bank in full satisfaction of
the amount of the said tax payable by such importer
in respect of the preceding month.
(2)
Every importer of motor vehicles other than
those falling under Sub-rule (1) shall, at any time
before registering the vehicle under the Motor Vehicles
Act, 1988, file a return in Form No.2, in duplicate,
before the registering officer or the assessing
authority having jurisdiction over the area in which
the office of registering officer under the said
Act is situate, showing the total purchase value
of the motor vehicles imported by him into the Local
Area together with a Government Treasury chalan
receipt in token of having paid the amount of tax
payable under section 3 of the Act or accompanied
by a crossed demand-draft drawn in favour of the
assessing authority on any Nationalized Bank in
full satisfaction of the amount of the said Tax
payable by such importer on the purchase value of
the motor vehicle.
Provided that no such return shall be necessary
where the motor vehicle was registered in any Union
Territory or any other State under the provisions
of the Motor Vehicles Act, 1988 (Central Act 59
of 1988), prior to a period of fifteen months or
more from the date on which it is registered in
the State.
(2A)
Every importer other than those falling under sub-rule
(1) and (2) shall, at the time of entry into any
local area, file a return in Form No.2B, in duplicate
before the officer in charge of the check post established
under section 29 of the Kerala General Sales Tax
Act, 1963 or where there is no such check post,
before the assessing authority having Jurisdiction
over the local area into which the goods are first
entered, showing the total purchase value of the
goods imported by him into the local area together
with a Government Treasury Chalan receipt in token
of having paid the amount of tax payable under Section
3 of the Act or accompanied by a crossed demand
draft drawn in favour of the assessing authority
or any Nationalized Bank in full satisfaction of
the amount of the said tax payable by such importer
on the purchase value of the goods.
(3)
The returns submitted as required by sub-rule (2) or
2(A) shall, subject to the provisions of sub-rule
(5), be provisionally accepted.
(4)
(i) In the case of return filed under sub-rule (2)
before the assessing authority, the assessing
authority shall issue a certificate of payment of
tax due under the Act, in Form No.2A in respect
of the motor vehicle in relation to which the return
is submitted, and the same shall be filed before
the registering officer.
(ii)
In the case of a return filed before the Registering
Officer under the Motor Vehicles Act, 1988 the Registering
Officer shall, if it is satisfied that the tax due
on the taxable purchase value has been paid, and
subject to the provisions of the Motor Vehicles
Act, 1988, register the vehicle and forward the
return together with the treasury chalan receipt
or demand draft to the assessing authority specified
in clause (i) on or before the 5th day
of the succeeding month. A register in Form No.3
shall be maintained by the Registering Officer.
(iii)
In the case of a return filed under sub-rule (2A)
before any authority other than the assessing Authority
having jurisdiction over the area in which the goods
are intended to be consumed, used or sold, such
authority shall issue a certificate of payment of
tax due under the Act in Form No.3A. A register
in Form No.3B shall be maintained by the Registering
Officer.
(5)
If no return is submitted, or if the return submitted
appears to the assessing authority to be incorrect
or incomplete, the assessing authority may, after
making such enquiry as it may consider necessary
and after taking into account all relevant materials
gathered by it and after issuing notice to the importer
calling upon him to produce such documents or evidence,
as it may consider necessary to prove the correctness
or completeness of the return, assess provisionally
the tax payable and shall serve upon the importer
a demand notice in Form No.4 and the importer shall
pay the sum demanded within the time and in the
manner specified in the notice.
5.
Annual Return and Assessment: - (1)
After the close of the year, the importer falling
under sub-rule (1) of rule 4 shall, on or before
the 1st day of May of the succeeding
year, submit to the assessing authority an annual
return in Form No.1 together with a statement showing
the particular of remittance of tax due as per the
said return.
(2)
On receipt of the return specified in rule (1) the
assessing authority shall, if it is satisfied after
such scrutiny of the accounts and enquiry as it
may consider necessary, that the return is correct
and complete, finally assess, on the basis of the
said return, the tax payable for the year to which
the return relates.
(3)
If no return is submitted, or if the return submitted
appears to be incorrect or incomplete, the assessing
authority shall, after following the procedure laid
down in sub-rule (5) of rule 4 determine the purchase
value and assess, the tax payable to the best of
its judgment and shall serve upon the dealer a demand
notice in Form No.4.
6.
Signing and verifying of Returns: - All
returns prescribed under these rules shall be signed
and verified in the manner provided therein by such
person as could have signed and verified a return
had it been a return filed under the provisions
of the General Sales Tax Act and the Rules made
there under.
7.
Mode of payment of penalty: - (1)
The penalty payable under sub-sections (1) or (2)
of section 15 shall be remitted into the Government
treasury or paid by means of a crossed demand draft
drawn in favour of the assessing authority or any
Nationalized bank.
(2)
The assessing authority concerned may calculate
the penalty payable under sub-section (2) of section
15 from time to time and may issue a notice in Form
No.4. On receipt of the notice the importer shall
pay the penalty in the manner specified therein.
Explanation:
- The importer concerned shall, however, be liable
to pay the penalty under sub-section (2) of section
15 whether he receives a notice under this sub-rule
or not.
CHAPTER
III
APPEALS
AND REVISION
8.Appeals:
- (1) Every appeal to the Appellate Assistant Commissioner
or to the Deputy Commissioner (Appeals) shall be
in Form No.5 and shall be verified in the manner
specified therein. The appeal memorandum shall be
filed in duplicate and shall be accompanied by the
original or a certified copy of the order appealed
against and a fee of three hundred
rupees.
Provided that the Appellate Assistant Commissioner
or Deputy Commissioner (Appeals) may admit an appeal
not accompanied by the order or copy of the order
appealed against, if the omission to produce such
order or copy is explained to the satisfaction of
the Appellate Assistant Commissioner or Deputy Commissioner(Appeals)
as the case may be.
(2)
The appeal may be sent to the Appellate Assistant
Commissioner or Deputy Commissioner (Appeals) by
post or presented to that authority by the Appellant
or his authorised agent or a legal practitioner.
8A.
Filing appeal to the Appellate Tribunal, -(i)
(a)
Every appeal under section 14A(1) to the Appellate
Tribunal shall be in Form No.5A and shall be verified
in the manner specified therein.
(b)
It shall be in quadruplicate and accompanied by
four copies (one of which shall be the original
or authenticated copy) of the order appealed against
and also three copies of the order of the assessing
authority.
(c)
In the case of an appeal against any order referred
to under sub-section (3) of Section 13 of the Act
shall be accompanied by the original of the demand
notice.
(ii)
The notice referred to in sub-section 3 shall be
in Form No.9.
(iii)
After the final hearing of the appeal, the Appellate
Tribunal shall notify a date, which shall not be
later than 30 days from the date of such final hearing,
for the pronouncement of the order in such appeal,
and on such notified date the Appellate Tribunal,
shall pronounce the order.
(iv)
The order in appeal shall be communicated to the
appellant and respondents within sixty days of the
pronouncement of such order.
9.
Filing of application: - Every application
under section 14 A shall be in Form No.6 and
shall be verified in the manner specified therein
and it shall be accompanied by a fee of five hundred
rupees.
9A. Payment of fees on interlocutory applications:
- (1) Fees at the rates mentioned
in section 14B shall be paid on the following interlocutory
applications.
(a)
application for staying the collection of any tax
or other amount which is disputed in appeal, revision
or other proceedings, as the case may be.
(b)
application for advancing the hearing of any appeal,
revision or other proceedings, as the case may be.
(c)
application for condonation of delay in the filing
of any appeal, revision or application as the case
may be.
(2)
The interlocutory applications mentioned in sub-rule
(1) shall be in Form No. 6A.
10. Communication of order etc: - (1)
Every order of an Appellate Authority or Deputy
commissioner under section 13 or of the Board of
Revenue under section 14 shall be communicated to
the Appellant or the Applicant, as the case may
be to the Authority against whose order the appeal
or revision was filed and also to any other authority
concerned.
(2) The order passed in appeal or revision shall
be given effect to by the assessing authority who
shall either refund or adjust within 90 days of
receipt of the order as provided for in section
11, any excess tax found to have been paid by the
importer and shall collect any additional tax, which
is found to be due, in the same manner as a tax
assessed by it.
CHAPTER
IV
POWERS
OF INSPECTION OF BUSINESS PLACES AND PRODUCTION
OF ACCOUNTS
11.
Maintenance and preservation of account: - Every
importer who is a dealer under the provisions of
the General Sales Tax Act shall maintain the following
books of accounts, disclosing true and complete
accounts of his daily transactions in Malayalam
or English, relating to Goods imported by him into
the local areas for use or sale therein, name1y:
-
(1) a daily Cash Book, that is to say, a record
of all cash receipts and payments, kept and maintained
from day to day indicating the cash balance in hand
at the end of each day, with supporting bills and
vouchers;
(2) a Journal, if the accounts are maintained according
to mercantile system of accounting;
(3) a Ledger.
12.
Powers to order production of accounts and powers
of entry inspection, etc: - (1) An Assessing
Authority may for the purposes of this Act, by notice,
require any importer-
(a)
to produce or cause to be produced before it any
accounts, registers, records or other documents;
or
(b)
to furnish or cause to be furnished any other information,
relating to his business, and such importer shall
comply with such requisition.
(2)
All Accounts, registers and other documents maintained
by an importer, the Goods in his possession
and his offices, shops, godowns, vessels or vehicles
shall be open to inspection at all reasonable times
by such Officers as may be authorised by the Government
in this behalf.
CHAPTER
IVA
DISPOSAL
OF GOODS SEIZED
12A.
Procedure for disposal of detained goods. –(1)
Where the goods seized under section 9B of the Act
are to be sold in public auction, the officer liable
to assess the tax shall cause to be published in
the notice board of his office, a list of goods
seized and intended for sale with a notice under
his signature specifying the place, the time and
date on which the seized goods shall be sold and
shall display copies of such list and notice in
more than one public places in the notified area
in or around the place where the goods are retained.
(2)
Where the value of the goods exceeds one thousand
rupees, copies of the list and notice shall also
be published at the office of the Inspecting Assistant
Commissioner concerned.
(3)
No sale shall take place until after the expiration
of a period of fifteen days from the date on which
the notice is affixed.
(4)The
officer shall conduct the sale in person and the
goods seized shall be made available at the place
of sale:
Provided
that nothing in this Rule shall prevent the officer
in charge of the notified area from conducting sale
of goods covered under sub-section (5) of Section
9B of the Act.
(5)On
the appointed time and date of public auction, the
goods shall be put in one or more lots as the officer
conducting the sale may deem fit and shall be knocked
down in favour of the highest bidder subject to
confirmation of the sale by the Inspecting Assistant
Commissioner where the value of the goods auctioned
does not exceed one thousand rupees and by the Deputy
Commissioner in other cases.
(6)Where
the amount fetched in auction is more than the amount
of tax due from the owner of the goods, the surplus
after reducing the tax due, the cost of service,
publication of notice and the expense for the conduct
of sale and other charges which are incidental thereto
shall be refunded to the owner of the goods.
(7)The
auction purchaser shall pay the sale value of the
goods in cash immediately after the sale and he
shall not be permitted to carry away any part of
the goods unless and until he has paid the full
amount of the sale value of the goods purchased
in auction.
(8)Where
the purchaser fails to pay the sale value of goods
in cash the goods shall be resold at once and the
defaulting purchaser shall be liable for any loss
incurred there from as well as the expenses incurred
in the resale.
(9)The
sale proceeds of the public auction conducted as
per sub-section (4) or (5) of section 9B of the
Act shall be remitted into the Government treasury.
CHAPTER
V
MISCELLANEOUS
13.
Burden of Proof: - An importer claiming
exemption shall produce on demand by the assessing
authority concerned such documents and other particulars
as may be required by it.
14.
Sending of reports in case of death of an importer:
- When an importer dies, his executor, administrator
or other legal representative shall, within thirty
days of the death of the importer or within thirty
days of his taking charge as such executor, administrator
or other legal representative whichever is later,
shall send a report of his having done so to the
Assessing Authority concerned.
15.
Assessment of legal representatives: - When
a dealer dies without having furnished the return
prescribed under the provisions of the Act or the
rules made thereunder or after having furnished
the return but before assessment, the assessing
authority may proceed to make an assessment and
determine the tax or fee or other amount payable
by the deceased, and for this purpose, he may require
the executor, administrator or other legal representative
as the case may be, of the deceased person to perform
all or any of the obligations which he might under
the provisions of the Act have required the deceased
to perform. The tax or fee or other amount thus
determined shall be payable by the executor, administrator
or other legal representative of the deceased to
the extent of the assets of the deceased in his
hands.
16.
Report of dissolution of partnership: -
If a partnership is dissolved, every person who
was a partner shall send within thirty days of such
dissolution, a report of the dissolution to the
assessing authority concerned, together with a copy
of the deed of dissolution.
17.
The authorisation referred to in section
18A shall be in Form No.11 and shall bear a court
fee stamp of Rs.25 (Rupees twenty five only).
18.
Service of Notice: - Any notice required to
be served on, or given to, any person under this
Act or the rules made there under shall be deemed
to be duly served or given.-
(a)
if the notice is addressed to that person and is
given or tendered to him;
(b)
where that person cannot-be found, if it is affixed
on some conspicuous part of his last known place
of residence or business or is tendered to some
adult member of his family, or
(c)
if it is sent by registered post to that person
at his last known place of residence or business.
19.
Refund payment order: - Where a refund
is made, the assessing authority shall issue a refund
order in Form No. 7 to the party concerned and simultaneously
give due intimation to the Treasury Officer concerned
regarding the issue of refund.
20.
Issue of refund adjustment order: - Whenever
any excess tax refundable, to an importer is adjusted
towards any amount due from him under the Act the
assessing authority shall issue a refund adjustment
order in Form No.8.
21.
Transfer of case: - (I) Board of Revenue or
the Deputy Commissioner, may by order in writing
at any time, transfer any case pending before an
assessing authority to another assessing authority
and the authority to which the case is transferred
may proceed either de novo or from the stage at
which it was transferred. The Deputy Commissioner
shall exercise this power only in respect of cases
of the assessing authorities who are within the
limits of his jurisdiction.
(2)
Where a case pending before an assessing authority
is transferred to another assessing authority under
sub-rule (1), the assessing authority to which the
case is so transferred shall notwithstanding anything
contained in these rules, or in any notifications
issued under sub-section (2) of section 3 have the
same powers as those respectively conferred upon
the assessing authority from which the case was
so transferred.
22.
Transfer of appeals: - The Board of Revenue
may either suo-motu or on application, for reasons
to be recorded in writing, transfer an appeal pending
before an Appellate Authority or Deputy Commissioner
to another appellate authority or Deputy Commissioner
as the case may be. The authority to whom the appeal
is transferred under this rule shall proceed to
dispose of it irrespective of the local limits of
jurisdiction.
23.
Issue of notice or summons for production of accounts:
- The Assessing Authority shall issue a notice in
Form No.10 for production of accounts or appearance
of any person.
