GOVERNMENT OF PUDUCHERRY Abstract The Puducherry Value Added Tax Rules, 2007 Notification Issued. ---------------------------------------------------------------------------------------------FINANCE DEPARTMENT G.O.Ms.No.

o. 21 /2007/F2 ORDER: The following notification shall be published in the Official Gazette of Puducherry: NOTIFICATION
In exercise of the powers conferred by sub-sections (1) and (2) of section 71 of the Puducherry Value Added Tax Ordinance, 2007 (No. 1 of 2007), the Lieutenant-Governor, Puducherry hereby makes the following rules, namely:-

Puducherry, the 06 - 06 - 2007.

RULES
CHAPTER I PRELIMINARY
Puducherry Value Added Tax Rules, 2007. (ii)

1. Short title and commencement. - (i) These rules may be called the
They shall come into force on the 1st day of July, 2007.

2. Definitions.- (1)In these rules, unless the context otherwise requires,(a) Departmental Representative means an officer not below the rank of Commercial Tax Officer appointed by the Commissioner to receive on behalf of the assessing authority, notices issued by the Appellate Assistant Commissioner or Commissioner and to appear, act and plead on behalf of the assessing authority before the Appellate Assistant Commissioner or Commissioner, as the case may be;

(b) Form means a form appended to these rules; (c) Government Treasury means a treasury or sub-treasury of the Union territory Government, which includes the main branch of State Bank of India at Puducherry, Karaikal, Yanam and the Syndicate Bank at Mahe and any branch of any other bank as may be notified by the Government from time to time;
territory;

(d) Importer means any dealer who imports goods from outside the Union

(e) Month means a calendar month;

(f) Ordinance means the Puducherry Value Added Tax Ordinance, 2007; (g) prescribed authority means any officer of the Commercial Taxes Department, not below the rank of Assistant Commercial Tax Officer, as notified by the Government or authorised by the Commissioner to exercise any of the powers conferred by the Ordinance or by these rules; (h) reversal of tax credit means reversal of input tax credit already claimed and availed under the Ordinance;

3 (i) Section means a section of the Ordinance; and (j) Tax Payer Identification Number (TIN) means the registration number allotted to a dealer under the Ordinance and these rules.
(2) Words and expressions used in these rules but not defined shall have the meanings respectively assigned to them in the Ordinance.

4 CHAPTER II REGISTRATION 3. Application for registration. - (1) Every dealer, other than a casual trader, liable for registration under the Ordinance, unless exempted for registration by the Government by notification issued under section 10, and the dealers provisionally registered under section 6, shall, within thirty days of becoming so liable, apply to the registering authority of the area in which his principal place of business is situated.
(2) The application for registration shall be submitted, in FORM- A accompanied by the proof of payment of fees and a tax return of estimated turnover for twelve months in FORM - I in respect of dealers intending to pay tax under section 14, in Form - J for dealers exclusively dealing in goods mentioned in the Fifth and Sixth Schedules, in Form - K for the dealers intending to pay tax under section 19 and in Form - L in respect of the dealers intending to pay tax under section 15(2) of the Ordinance. Further the application shall be submitted affixing the photograph(s) of the applicant(s) and shall be signed by (i) in the case of a proprietary concern, by the proprietor or proprietrix as the case may be, (ii) in the case of a Hindu Undivided family, by the Karta, (iii) in the case of a company, by all the Directors or any officer so authorised by the Board of Directors with the Common Seal of the Company, (iv) in the case of a local authority, by its principal officer , (v) in the case of a firm, by all partners thereof not being a minor and for a minor partner by the guardian, (vi) in case of any other dealer, by a person so authorised to act in his behalf. (vii) in case of existing dealers under the repealed Pondicherry General Sales Tax Act, 1967, there is no requirement to file estimated turnover return. (3) (a) Every partnership business shall furnish details regarding the partners in Form - B to the registering authority along with application for registration. (b) If a partner retires without the partnership firm being dissolved, he shall furnish details in Form - C prescribed under this rule to the registering authority.

4. Casual trader.- Every casual trader, within twenty-four hours of the arrival or commencement of business in the Union territory, shall submit an application for registration to the registering authority of the area in which he effects the occasional transaction, in the manner as prescribed in rule 3, except the thirty days time limit prescribed under sub-rule (1) of that rule:

5
Provided that if the casual trader has already got himself registered at any time after commencement of these rules, with a registering authority in the Union territory he shall submit the registration certificate to the registering authority of the area and get the place of business entered in the registration certificate subject to payment of renewal fee.

5. Non-resident dealer.- A dealer who resides outside the Union territory and has no fixed place of business in the Union territory, carrying on business through an employee or a person other than an agent by whatever name be called, shall submit the application for registration to the registering authority of the area in which he carries on his business, in the manner as prescribed in rule 3.
Explanation.- When a non-resident dealer carries on business in more than one place in the Union territory, he may submit his application for registration to any one of the registering authorities having jurisdiction over any one of his places of business and intimate with proof of registration to other registering authority where he carries business. section 7 of the Ordinance shall follow the same procedures as prescribed in rule 3, except the time limit stipulated therein.

6. Voluntary registration.- A dealer opting for voluntary registration under

7. Issue of registration certificate.- (1) Within thirty days from the date of receipt of the application from a dealer, other than a casual trader, the registering authority shall, after making such enquiry and verification as he may consider necessary, issue a certificate of registration in Form - D allotting a tax payer identification number (TIN).
(2) Within thirty days from the date of submission of the application, if any dealer, other than a casual trader, does not receive the certificate of registration or a notice, he shall be deemed to have been duly registered with effect from the date of submission of his application for registration. (3) In the case of a casual trader the certificate of registration shall be issued in Form - D within the next working day, from the day of receipt of the application. If the registering authority decides otherwise, he may reject the application after giving a reasonable opportunity of being heard. every year, except the year of commencement of these rules, every registered dealer, other than a casual trader, shall, until his registration is cancelled, submit his registration certificate to the registering authority and pay the fee as required under sub-section (2) of section 8 and in pursuance of rule 9, for renewal of the registration for the year subsequent to that in which the registration is obtained. The registering authority shall have to immediately return the registration certificate with due endorsement of renewal, unless there is any reason to withhold such registration certificate and such reason shall be recorded.

8. Renewal of registration. - Within thirty days of the commencement of

9. Fees for additional place of business.- (1) Save as provided under sub-rule (2), at the time of registration and renewal thereof, every dealer including a casual trader shall pay a fee of rupees one hundred for each additional place of business, in addition to the fee payable for the principal place of business, as required under clause (iii) of sub-section (2) of section 8.
(2) The dealers of medium and large scale industries and in Indian Made Foreign Liquors shall pay a fee as required under clauses (i) and (ii) of sub-section (2) of section 8 as the case may be, only for such additional place of business where the dealer manufactures any goods or sells Indian Made Foreign Liquor. (3) No registered dealer shall keep his goods in any place or godown not mentioned in the registration certificate.

10. Transfer of business.- No registration certificate issued or renewed shall be sold or transferred. Where a registered dealer transfers his business to another dealer, the transferee shall apply for a fresh registration in the manner prescribed under rule 3 and the issue of registration certificate shall be considered by the registering authority in the same manner as prescribed under rule 7.
section 9, a security or as the case may be, the additional security shall be in any of the following forms, namely :(a) Immovable property along with the security bond in Form - F (b) Post Office Savings Bank deposit or National Savings Certificates duly pledged in favour of the President of India represented by the registering authority. (c) Any term deposits from Scheduled Banks / Nationalised Banks duly pledged in favour of the President of India represented by the registering authority. (2) The security or the additional security shall be released by the registering authority, when there is no further need for the same. appoint a person as manager of his business, submitting a declaration in Form - E along with the application for registration, to act on behalf of the dealer for the purposes of the Ordinance, other than for those specified in the Ordinance or elsewhere in these rules. All such acts by the manager shall be binding on the dealer. Such declaration may be revised from time to time.

11. Security.- (1)Subject to the provisions contained in sub section (1) of

12. Intimation and declaration. - A dealer at the time of registration may

13. Permits for travelling salesmen and representative.- (1) Where a dealer desires to employ a travelling sales man or a representative to transact business at places other than his registered place of business, shall submit the application for permit, in pursuance of sub-section (1) of section 13, to the assessing authority sufficiently in advance of the date from which the dealer desires to employ a sales man or a representative.

7
(2) Every such application shall specify the name and address of the registered dealer, the number and date of his registration (TIN) and the name and address of the travelling salesman or representative for whom the permit is required along with a passport size photograph. (3) The fee for the grant or renewal of a permit shall be rupees one hundred for each permit and for every year or part thereof. (4) Every application for the grant or renewal of a permit shall be accompanied by proof of payment of fee prescribed under the Ordinance. (5) Every application for renewal of a permit shall be submitted so as to reach the assessing authority not later than the 30th April of the year for which the renewal is required. (6) The application for renewal of a permit beyond the prescribed date shall accompany with a late fee of rupees fifty for each month of delay or part thereof. (7) The assessing authority receiving the application may, within seven days from the date of receipt of the application, or the payment of the prescribed fee whichever is later, and after satisfying himself that the application is otherwise in order, issue a permit in Form - Q. If the applicant does not receive the permit within seven days from the date of his application or payment of fee, or if no notice is received by him within the said period, the permit shall be deemed to have been issued. (8) The authority competent to cancel a permit under sub-section (8) and (9) of section 13 of the Ordinance shall be the assessing authority. (9) Where a permit granted or renewed under this rule is lost or accidentally destroyed, the assessing authority may, on application and on payment of a fee of one hundred rupees, issue within seven days from the date of receipt of application or the payment of the fee whichever is later, a duplicate of the permit.

CHAPTER III INCIDENCE AND LEVY OF TAX 14. Determination of turnover.- (1) Save as provided in sub-rules (2) and (3), the

turnover of a dealer for the purposes of these rules shall be the amount for which goods are sold by the dealer, including if any amount charged for packing, warranty, replacement and service whether compulsory or optional and irrespective of the fact that whether such charges are made separately in the tax invoice or collected through a separate document. (2) As provided under section 16 (1) (ii), the value of the goods sent on stock transfer or consignment basis outside the Union territory and for which input tax credit has been availed, shall be included in the turnover as deemed sale, showing separately in the return of that tax period, in which such transfer are effected. Explanation. - The transfer of goods within the Union territory, from one registered place of business to another registered place of business of the same dealer shall not be treated as deemed sale as prescribed in sub-rule (2). (3) In the case of the under mentioned goods the turnover of a dealer for the purposes of these rules shall be the amount for which the goods are bought by the dealer(a) Old and beaten gold or silver jewellery; (b) Raw hides and skins; (c) Wattle bark, avaram bark, konnam bark, wattle extract, Quobracho and chestnut extract; (d) Sugarcane; (e) Groundnut not falling under entry 45 of Part-A of the Third Schedule; and (f) Cotton; (4) For the purpose of determining the turnover in respect of the commodities listed in the Appendix under entry No.68 in Part-A of the Third Schedule of the Ordinance, the following guidelines shall be applied.
(i) Micronutrients and plant growth promoter or regulators are not covered by the scope of the said Appendix. (ii) The Rules for the interpretation of the Central Excise Tariff Act, 1985 (Central Act 5 of 1986) read with the Explanatory Notes as updated from time to time published by the Customs Co-operation Council, Brussels, shall apply for the interpretation of the said Appendix.

9
(iii) Where any commodities are described against any heading or, as the case may be, sub-heading, and the aforesaid description is different in any manner than the corresponding description in the Central Excise Tariff Act, 1985 (Central Act 5 of 1986) , then only those commodities described as aforesaid will be covered by the scope of the said Appendix and other commodities, though covered by the corresponding description in the Central Excise Tariff, will not be covered by the scope of the said Appendix. (iv) Subject to guideline (iii), for the purpose of any commodity listed in the said Appendix, where the description against any heading or, as the case may be, sub-heading, matches fully with the corresponding description in the Central Excise Tariff Act, 1985 (Central Act 5 of 1986), then all the commodities covered for the purposes of the said tariff under that heading or sub-heading will be covered by the scope of the said Appendix. (v) Where the description against any heading or sub-heading is shown as other, then the interpretation as provided in guideline (ii) shall apply.

(5) Every dealer executing works contract shall pay tax on the value of goods at the time of incorporation of such goods in the works executed at the rate applicable to the goods under the Ordinance.

15. Exclusions from turnover.- In pursuance of Explanation (II) of section 2 (zn) of the Ordinance, the amounts specified in the following clauses shall not, subject to the conditions specified therein, be included in the turnover to be determined as prescribed in rule 14.
(a) Discounts: any discount allowed in accordance with the regular practice of the dealer or in accordance with the terms of a contract or agreement entered into in a particular case, provided that the accounts show that the purchaser has paid only the amount due after the discount; (b) Sales Returns: all amounts, where a dealer has refunded the price of goods returned by purchasers together with the tax collected from such purchasers in respect of the sale of such goods and such sale was already included in the turnover reported in his tax return: Provided that such return of goods is made within a period of six months from date of sale and shall be shown separately in the return of the tax period in which such return of goods takes place. Explanation.- The condition and restriction as provided in this clause is equally applicable to the return of goods treated as deemed sales as provided in sub rule (2) of rule 14. (c) Purchase Returns: all amounts or advice of credit received from the sellers in respect of goods returned to them, by a dealer, when the goods are taxable at the point of purchase as specified in sub-rule (3) of rule 14: Provided that such return of goods is made within a period of six months from the date of purchase and shall be shown separately in the return of the tax period in which such return takes place.

15(1) and 19 shall be levied on the taxable turnover of the dealer. In determining the taxable turnover, the amounts specified in the following clauses shall, subject to the conditions specified therein, be deducted from the total turnover of a dealer: (a) all amounts for which goods specified in the First Schedule are sold; (b) turnover of zero rated transactions as contemplated under section 21 of the Ordinance; (c) all amounts realised by a dealer by the sale of his business as a whole; (d) all amounts in the course of Import of the goods into the Territory of India; (e) all amounts for which goods specified in the Second, Third, Fourth, Fifth and Sixth Schedules to the Ordinance are sold or purchased by a dealer provided that the sale or purchase is not at the point of levy prescribed in the said Schedules. (f) the turnover of sales or purchases made by a dealer through his agent in respect of which tax has been paid by the agent; (g) any amount by way of tax realised by the dealer; and (h) all amount falling under the following three heads, when specified and charged for by the dealer separately, without including them in the price of the goods sold:(i) freight; (ii) cost of labour; (iii) charges for delivery and other such like services.

16.

Deductions from

10 total turnover.- The tax under sections 14,

for a tax period is

17. Tax payable and input tax credit.- (1) The tax payable by a dealer

the total tax due on the taxable turnover during the tax period

the total input tax credit for which the dealer is eligible in the same tax period under the Ordinance

(2) There shall be input tax credit of the amount of tax paid or payable under the Ordinance by the registered dealer to the seller on his purchase of taxable goods specified in the Second Schedule, Third Schedule and Part-A of the Fourth Schedule: Provided that the registered dealer, who claims input tax credit, shall where required by the assessing authority establish that the tax due in such purchases has been paid by him: Provided further that no input tax credit shall be allowed in respect of sugarcane specified in Part-B of the Fourth Schedule.

11
(3) Input tax credit shall be allowed for the purchase of goods made within the Union territory from a registered dealer and which are for the purpose of(i) re-sale by him within the Union territory; or (ii) use as input in manufacturing or processing of goods in the Union territory; or (iii) use as containers, labels and other materials for packing of goods in the Union territory; or (iv) use as capital goods in the manufacture of taxable goods; or (v) (a) sale in the course of inter-State trade or commerce falling under sub-section (1) of section 8 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956); (b) sales covered by reduced rate under sub-section (5) of section 8 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956); and (vi) Agency transaction by the principal within the Union territory. (4) (a) Every registered dealer, in respect of purchase of capital goods wholly for use in the course of business of taxable goods, shall be allowed input tax credit. (b) Deduction of such input tax credit shall be allowed on putting the capital goods to use and in the case of new industries on the commencement of commercial production. (c) Where a registered dealer makes purchase of parts and accessories for capital goods already purchased and used such parts and accessories in the manufacture of taxable goods, he is entitled to input tax credit relating to such goods in the month of purchase itself or end of that financial year but not thereafter. (5) Input Tax Credit shall be allowed on tax paid or payable in the Union territory on the purchase of goods, in excess of the rate prevailing under the Central Sales Tax Act, 1956 (Central Act 74 of 1956) to such purchases; (i) for transfer to a place outside the Union territory otherwise than by way of sale; (ii) for use in manufacture of other goods and transfer to a place outside the Union territory otherwise than by way of sale: Provided that if a dealer has already availed input tax credit there shall be a reversal of credit against such transfer in the current tax period. (6) (a)The Principal is entitled for the input tax credit on those purchases which are transferred to the agent and sold by the agent on behalf of him.

12
(b) The Principal is entitled for the input tax credit for those purchases effected by the agent on behalf of him. (c) The agent is not liable to pay tax on the sale of those goods, which were received by him from the Principal. (7) (a) Input tax credit on inter-State sales shall be allowed only if Form -C prescribed in the Central Sales Tax (Registration and Turnover) Rules, 1957 is filed. (b) Input tax credit on transfer of goods falling under section 6-A of the Central Sales Tax Act, 1956 (Central Act 74 of 1956) shall be allowed only if Form F prescribed in the Central Sales Tax (Registration and Turnover) Rules, 1957 is filed. (c) Input tax credit for sales falling under sub-sections (1) and (5) of section 5 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956) shall be allowed. (d) Input tax credit for sales falling under sub-section (3) of section 5 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956) and any sale to Special Economic Zone shall be allowed only if the Form -H or Form -I, as the case may be prescribed in the Central Sales Tax (Registration and Turnover) Rules, 1957 is filed. (e) Input tax credit for sales of goods falling under sub-section (3) of section 6 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956) shall be allowed if Form - J prescribed in the Central Sales Tax (Registration and Turnover) Rules, 1957 is filed. Note.- The Form-C, Form-F, Form-H, Form-I and Form-J mentioned in clauses (a) to (e) of this sub-rule (7) of this rule 17 which are prescribed under the Central Sales Tax (Registration and Turnover) Rules, 1957 shall not be construed as the Form appended under these rules. (8) (a) Where the business of the registered dealer is transferred on account of change in ownership or on account of sale, merger, amalgamation, lease or transfer of the business to a joint venture with the specific provisions for transfer of liabilities of such business, then, the registered dealer shall be entitled to transfer the input tax credit lying unutilised in his accounts to such transferred, sold, merged, leased or amalgamated concern. The transfer of input tax credit shall be allowed only if the stock of inputs, as such, or in process or the capital goods is also transferred to the new ownership on which credit has been availed of are duly accounted for, subject to the satisfaction of the assessing authority. (b) If the transferee is claiming input tax credit, he shall furnish the following details, namely:(i) (ii) (iii) (iv) un-availed credit available in the account of the transferor as certified by a Chartered Accountant or Cost Accountant; inventory of stock transferred with date; details of capital goods transferred; and original tax invoices evidencing the payment of tax at the time of purchase.

13

(c) The assessing authority shall verify the correctness of the details furnished under clause (b), and such assessing authority shall allow or determine the amount of input tax credit transferred to the dealer or reject the claim: Provided that no order rejecting the claim shall be passed unless the dealer is given an opportunity of being heard. (9) (a) Every registered dealer, other than those who opt to pay tax under section 15(2) and 19(1), who claims input tax credit for goods other than capital goods purchased on or after 1st July 2006 held in stock on the commencement of the Ordinance shall submit a statement of transition stock in Form - V in duplicate along with a photostat copy of related purchase invoice or bill within thirty days from the date of commencement of the Ordinance. (b) In the case of claim of input tax credit for goods other than capital goods purchased on or after 1st July 2006, held in stock on the commencement of the Ordinance,(i) where the purchase has been effected from first seller in the Union territory with invoice or bill showing the tax separately, the claim for input tax credit shall be allowed to the extent of the tax paid by him on the value of such goods; (ii) where the purchases have been effected from second and subsequent dealer, the claim for input tax credit shall be restricted to the extent of the tax calculated on the purchase value of goods after deducting fifteen per cent and by using the tax fraction formula at the rates specified in the relevant Schedule under the Ordinance. The tax fraction formula is, t xr r + 100 Where t is taxable sale inclusive of tax and r is the rate of tax applicable to the sale. The dealer who claims input tax credit under this sub-rule shall furnish separate statement; (iii) if the goods taxable under the Pondicherry General Sales Tax Act, 1967 (Act No.6 of 1967) are exempted under the Ordinance, no input tax credit shall be allowed; (iv) where any tax is paid on any goods at the point of purchase by the dealer himself, such tax shall be eligible for claiming input tax credit except sugarcane;

14
(v) every registered dealer may claim the input tax credit immediately after the submission of a statement of transition stock held by him but not later than six months from the commencement of the Ordinance; and (vi) the assessing authority shall verify the claim made by the registered dealer with reference to the documents filed along with the statement of transition stock and he shall, after giving an opportunity of being heard to such registered dealer, pass an order within ninety days from the date of receipt of the claim determining the amount for which such registered dealer is entitled to input tax credit and reverse the claim wherever necessary. (c) Notwithstanding anything contained in clause (a) and clause (b) of this subrule, the statement of transition stock in Form - V filed by any dealer which is duly certified by a Chartered Accountant or Cost Accountant shall be accepted by the assessing authority and the input tax credit claimed by such dealer shall be allowed immediately without verification. (10) The registered dealer who claims input tax credit on capital goods shall file along with the monthly return the details of capital goods in respect of which input tax credit has been claimed. The details shall include purchase invoice number with date, suppliers name, TIN Number, value of capital goods on input tax credit claimed. (11) (a) The registered dealer shall not be eligible to claim input tax credit until the dealer receives an original Tax Invoice duly filled, signed and issued by a registered dealer from whom the goods are purchased, containing such particulars of the sale evidencing the amount of input tax. Where a tax invoice is of all inclusive price, then the formula given under sub-section (9) of section 16 shall be adopted to arrive the taxable turnover and tax and the dealer shall specify in the tax invoice that the price charged is inclusive of tax and also specify the applicable rate of tax thereon. (b) Where the original sale invoice is lost beyond recovery, the fact shall be presented before the assessing authority within thirty days from the date on which the original tax invoice is lost. It shall be accompanied by a duplicate or carbon copy of the original invoice. The assessing authority shall verify such claim and pass orders allowing input tax credit on the basis of duplicate or carbon copy of the original invoice or its rejection. When the claim is rejected, the assessing authority shall record his reasons for doing so and communicate to the dealer: Provided that no order prejudicial to the dealer shall be passed unless the said dealer is given an opportunity of being heard. (12) In case any registered dealer fails to claim input tax credit in respect of any transaction of taxable purchase in any month, he shall make the claim before the end of the financial year or before ninety days from the date of purchase, whichever is later. (13) The registered dealer shall ordinarily keep all original purchase invoices and connected documents relating to the claim for input tax credit, for a period of five years from the date of commencement of the Ordinance and shall produce such documents to the authority for scrutiny, if required.

15
(14) (i) No ITC shall be claimed or be allowed to a registered dealer,in respect of sale of goods exempted under sections 20 of the Ordinance; and under sub-section (5) of section 8 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956). on the tax paid or payable in other States or Union Territories on goods brought into this Union Territory from outside the Union Territory; on the tax paid on purchase of goods sold in the inter- State trade and commerce falling under sub-section (2) of section 8 of Central Sales Tax Act, 1956 (Central Act 74 of 1956); on the tax paid on purchase of capital goods which are used exclusively in the manufacture of exempted goods under sections 20 of the Ordinance; for goods purchased and accounted for in business but utilized for the purpose of providing facility to the proprietor or partner or director including employees and in any residential accommodation; on the purchase of all automobiles including commercial vehicles, two wheelers and three wheelers and spare parts for repair and maintenance thereof, unless the registered dealer is in the business of dealing in such automobiles or spare parts; on the purchase of air-conditioning units unless the registered dealer is in the business of dealing in such air-conditioning units; in respect of any goods purchased by him for sale but given away by him by way of free sample or gift or goods consumed for personal use; in respect of goods not sold because of theft, loss or destruction for any reason, including natural calamity. If a dealer has already availed input tax credit against purchase of such goods, there shall be a reversal of tax credit; inputs destroyed in fire accident or lost while in storage even before use in the manufacture of final products; inputs damaged in transit or destroyed at some intermediary stage of manufacture; on any amount of tax paid in excess of the rate prescribed; on the purchase of capital goods prior to the commencement of the Ordinance; and who is a casual trader.

(ii) (iii)

(iv)

(v)

(vi)

(vii) (viii) (ix)

(x) (xi) (xii) (xiii) (xiv)

16
(xv) the dealer doing business of goods falling under the Fifth and Sixth Schedules to the Ordinance shall not be entitled to input tax credit on goods purchased by him.

(15) Where a dealer has availed credit on inputs and when the finished goods become exempt, credit availed on inputs used therein, shall be reversed. (16) Where a registered dealer without entering into a transaction of a sale, issues a tax invoice, invoice, bill or cash memorandum to another registered dealer with the intention to defraud the Government revenue, the assessing authority shall, after making such enquiry as it thinks fit and giving a reasonable opportunity of being heard, deny the benefits of input tax credit to such registered dealer who has claimed input tax credit based on such invoice, bill or cash memorandum from such date. (17) (a) After availing input tax credit, if any, dealer who purchases goods, returns the goods and gets credited the price and tax paid, the tax credit so availed shall be reversed, only when, (i) (ii) the purchase was included in the return; and the goods were returned within a period of six months from the date of purchase by him.

(b) Where a dealer who sells goods after paying tax, receives back his goods, he may deduct such tax amounts paid from the tax payable in the returns of following months only when, -(i) in respect of sales return (a) (b) (c) (d) the sale was included in the return and the tax paid; the goods were received back or returned within a period of six months from the date of sale; the price of the goods and the tax, if any, charged thereon were refunded in full to the buyer; and the credit note shall contain the date and serial number of the invoice on which the tax was originally charged and brought to account;

(ii)

in respect of unfructified sale (a) (b) the sale was included in the return and tax paid; and the goods were received back within a period of thirty days from the date of sale.

17
(c) wherever any credit notes are to be issued for discount or sales incentives by any dealer to another dealer after issuing tax invoice, the selling dealer shall pass a credit note without disturbing the tax component on the price in the original tax invoice, so as to retain the quantum of input tax credit already claimed by the buying dealers as well as not to disturb the tax already paid by the selling dealer. (18) Where a registered dealer has purchased any taxable goods from another dealer and has availed input tax credit in respect of the said goods and if the registration certificate of the selling dealer is cancelled by the appropriate registering authority, such registered dealer, who has availed by way of input tax credit, shall pay the amount availed on the date from which the order of cancellation of the registration certificate takes effect. (19) Partial credit of input tax :- In the following circumstances the input tax credit shall be claimed and allowed proportionately; (i) (ii) (iii) (iv) Where goods purchased is used partly in business and partly for other than business (example: personal use), Where goods purchased are used partly as raw materials in manufacture of taxable goods and partly in manufacture of exempted goods, When a part of goods sold is taxable and the other part is exempted as per schedule; When the capital goods is used both for manufacture of taxable goods and exempted goods;

18. Payment of tax at compounded rates.- (1) At the time of registration, a dealer who is eligible and intends to pay tax at compounded rate as provided under sections 19 and 15(2) shall submit a separate application seeking permission for the same.
(2) At the commencement of any year, a dealer who is paying tax as per section 14, may submit an application in writing to his assessing authority, on or before thirtieth of April, seeking permission to pay tax at compounded rate as laid down in sections 19 and 15(2). (3) The dealer permitted to pay tax under sub-rule (1) or (2) shall pay the tax by filing tax return in Form - L in respect of compounded rate under section 15 (2) and in Form - K in respect of compounded rate under section 19 within fifteen days from the end of the tax period. Such tax may be treated as advance tax and subject to adjustment if any, within three months from end of that year. (4) If the tax due on the actual turnover for the year is more than the tax paid in advance for that year, the difference of tax due shall be paid along with the revised return. (5)The permission granted to pay tax at compounded rate may be cancelled at any time by the assessing authority for good and sufficient reasons. Before passing an order under this sub-rule, the dealer shall be given an opportunity of being heard.

18

(6) A dealer paying tax at compounded rate, at the commencement of any year, in spite of his eligibility, may opt to pay tax under section 14 by giving intimation in writing to his assessing authority not later than thirtieth of April. (7) A dealer who is paying tax under section 15(2) or 19 in any year, exercises his option to pay tax under section 14 in the beginning of any year, then he shall be eligible for input tax credit on the opening stock which were purchased prior to twelve months and held in the beginning of such year. The input tax credit shall be allowed for such opening stock and the procedure laid down under rule 17(9) shall be followed for this purpose.

19 CHAPTER IV ASSESSMENT 19. Tax return.- (1) A tax return to be filed by a dealer under sub-section (1) of section 24 of the Ordinance shall be in the Form - I. Every tax return shall be signed and verified
(a) in the case of a proprietary concern, by the proprietor or proprietrix or any other person authorised by him / her, (b) in the case of a Hindu Undivided Family, by the Karta or a person authorised by the Karta, (c) in the case of a company, by an officer authorised by the Board of Directors of the company, (d) in the case of a local authority, by the principal officer or an officer authorised by the principal officer, (e) in the case of a partnership firm, by any one of the partners, not being a minor or by a person authorised by all the partners, (f) in the case of any other association, by a person competent to act on behalf of the association. (2) Every dealer in his tax return shall specify the purchase and sale subject to different rates of tax and exempted separately with their value excluding VAT and VAT separately. (3) The tax return shall show the input tax credit claimed for set off during a tax period. (4) The tax return shall show the amount of tax payable or the excess of input tax credit to be carried over, during a tax period. (5) The tax return shall accompany with the proof of payment of tax payable, in a tax period, if any. (6) Every registered dealer who is liable to pay tax on sale of goods specified under fifth and sixth schedules to the Ordinance shall file a return in Form - J on or before 15th of the succeeding month to the assessing authority in whose jurisdiction his principal place of business or head office is situated. Such return shall be accompanied by proof of payment of tax:

20
Provided that where a registered dealer doing business in non-vatable goods falling under the Fifth Schedule, Sixth Schedule and Part-B of the Fourth Schedule along with vatable goods falling under Second Schedule, Third Schedule and Part-A of the Fourth Schedule shall file separate returns, each in Form-J for non-vatable goods and in Form-I for vatable goods and pay tax due thereon separately on or before 15th of the succeeding month to the assessing authority in whose jurisdiction his principal place of business or head office is situated and such return shall be accompanied by proof of payment of tax. (7) The option exercised under sub-section (1) of section 19 of the Ordinance shall be final for the financial year and such option shall be exercised within thirty days from the date of commencement of the Ordinance or commencement of his business whichever is later. (8) Every registered dealer who opts to pay tax under sub-section (1) of section 19 shall file a return for each month in Form - K on or before 15th of the succeeding month to the assessing authority along with proof for payment of tax. (9) Every registered dealer who opts to pay tax exclusively under sub-section (2) of section 15 shall file a return for each month in Form - L on or before 15th of the succeeding month to the assessing authority along with proof for payment of tax. (10) Every department of Government liable to pay tax under the Ordinance shall file a statement in Form - M showing the total and taxable turnover for each quarter on or before 20th of the month succeeding the quarter along with proof of payment of tax. (11) Any industrial unit exercises the option to continue the exemption under the repealed Act as provided under section 81 (9) of the Ordinance, such industrial unit shall file a return for each month in Form - J on or before 15th of the succeeding month to the assessing authority. (12) Every dealer liable to pay tax under the Ordinance shall file return in duplicate: Provided that such category of dealers as may be directed by the Commissioner shall file returns electronically or in ICR form supplied by the Government. (1) For the purpose of determining whether a dealer is liable to pay tax under sections 14, 15 and 19, the total turnover of all his places of business in the Union territory shall be taken into consideration. (2) A dealer having more than one place of business, all tax returns prescribed by these rules shall be submitted by the head office or principal place of business in the Union territory and shall include the turnover of all the branches of such dealer in the Union territory.

20. Tax return of dealers having more than one place of business.-

21
(3) Such tax return shall be submitted to the assessing authority having jurisdiction over the head office or principal place of business. The copy of such tax return shall also be submitted to each of the assessing authority having jurisdiction over the branch or branches.

21. Every dealer who opts to pay tax under section 19 at the compounded rate is required to apply to the assessing authority along with the estimated return in Form - I within one month of the commencement of the year. The assessing officer after the eligibility, permit the dealer to pay at the compounded rate within ten days. In case of failure to issue the permission within the said period of ten days such permission of the assessing authority shall be deemed to have been granted. The dealer shall continue to pay tax either under section 14 or 19 as the case may be until the permission is granted by the assessing authority. 22. Revised Return.- (1) A revised return to be filed by a dealer under section 26 of the Ordinance shall be in Form - I.
(2) The refund, if any, due as per the revised return shall be carried over to the next tax period. (3) If any amount to be due from the dealer towards the assessment, the assessing authority shall serve upon the dealer a notice in Form - O and the dealer shall pay the sum demanded at the time and in the manner specified in the notice.

23. Tax Return when business is discontinued.- (1) A registered dealer who discontinues his business in the course of a year, shall submit a final tax return in Form - I disclosing the turnover for that year up to the date of discontinuance and pay the tax due thereon.
(2) Such dealer shall include in his tax return, the stock of goods and the capital goods, if any, held by him at the time of discontinuance, as deemed sale and shall also pay the tax due thereon. (3) Such tax return shall be filed within a month from the date of discontinuance of his business along with the proof of payment of tax due thereon. (4) If any amount to be due from the dealer towards the assessment, the assessing authority shall serve upon the dealer a notice in Form - O and the dealer shall pay the sum demanded at the time and in the manner specified in the notice. (5) Such dealer shall surrender the registration certificates and permits, unused statutory forms, if any, to his assessing authority, along with the final tax return in Form - I.

22

24. Tax Return by a Casual trader.- (1) Every casual trader referred to in clause (k) of section 2 shall, within twenty-four hours of arrival in any place in the Union territory, intimate in Form - AA to the concerned assessing authority or the registering authority, as the case may be, of the area, the address of his residence in the Union territory and also the permanent address of his place of business or if he has no place of business, the address of his permanent place of residence, the nature of goods in which he intends to deal and the period within which he intends to leave the places in the Union territory.
(2) The casual trader shall submit to the concerned assessing authority of the area a tax return in Form - J accompanied by proof of payment of tax due on the basis of the tax return filed by him, on or before the last day on which he intends to leave the Union territory. The assessing authority shall thereupon assess such traders after satisfying himself as to the correctness and completeness of the tax return submitted by him, and after making such enquiry as he deems fit. (3) If no tax return is submitted by the casual trader as required by sub-rule (2), the assessing authority shall, after issuing a notice to the dealer and after making such enquiry as he considers necessary, assess the tax payable according to the best of his judgment and issue a notice of demand in Form - O for the tax due. The casual trader shall thereupon pay the sum demanded within the time allowed and in the manner specified in the notice. (4) If the tax return submitted by the casual trader under sub-rule (2), appears to the assessing authority to be incorrect or incomplete, the assessing authority shall issue a notice to the dealer calling upon him to produce his accounts, registers, records and other documents and prove the correctness and completeness of his tax return. If the trader is unable to prove, the assessing authority shall assess the tax payable to the best of his judgment and issue notice of demand in Form - O for the tax due. The trader shall thereupon pay the sum demanded within the time allowed and in the manner specified in the notice.

25. Procedure for assessment.- (1) (i) In making an assessment under section 24, the assessing authority shall take into account such of the following factors as may be relevant to the determination of the prevailing market price of the goods, namely:(a) the price charged by any dealers other than the dealers case under scrutiny at the relevant stage of sale of similar goods during the relevant period; (b) the difference between the price charged by any dealer other than the dealers case under scrutiny towards the purchase of the goods from the earlier seller and the price charged on the resale of the same goods;

23

(c) the difference between the price paid by the dealer concerned whose case is taken up for assessment under the said section towards the purchase of the goods from the earlier seller and price charged for the resale of the same goods; and (d) the differential price charged on sales against bulk orders and small orders in respect of the same goods. (ii) If the difference in prices, exclusive of the tax element, is more than fifteen per cent (15%), the assessing authority shall examine the reasons for the variation, taking into account the relationship between the parties to the transactions, the charges for after sales services, packaging, transport and other expenses incurred by subsequent sellers which add to the cost of the goods at each stage of sale by successive dealers. The assessing authority shall also examine whether there is such difference in the price charged on the sales of the same goods to different customers in unlimited quantities and at the same prices. After making due allowance towards the variation in prices and normal profit margin, the assessing authority shall arrive at the market price that should have been charged by the dealer and levy tax on the taxable turnover so arrived at. (2) (a) If a dealer receives or returns in any year any amount due to price variation as provided under section 27 of the Ordinance, he shall within thirty days from the end of the year submit a return in Form - N to the assessing authority. (b) On receipt of the return in Form - N, the assessing authority shall pass order (i) demanding the tax payable on the amount received due to price variation and shall serve upon the dealer a notice in Form - O; or (ii) refunding the tax due on the amount returned and shall serve upon the dealer a notice in Form - P. (3) The taxable turnover of the dealer liable to pay tax under section 15 on transfer of property in goods involved in the execution of works contract shall be arrived at after deducting the following amounts from the total turnover of that dealer, namely:(a) all amount involved in respect of goods involved in the execution of works contract in the course of export of the goods out of the territory of India or in the course of import of the goods into the territory of India or in the course of inter-State trade or commerce;

24

(b) all amounts relating to the sale of any goods involved in the execution of works contract which are specifically exempted from tax under the Ordinance; (c) all amounts paid to the sub-contractors as consideration for execution of works contract whether wholly or partly: Provided that no such deduction shall be allowed unless the dealer claiming deduction, produces proof that the sub-contractor is a registered dealer liable to pay tax under this Ordinance and that the turnover of such amount is included in the return filed by such sub-contractor; (d) subject to sub-rule (5) of this rule, the following amounts are allowed as deductions from the total consideration received or receivable for arriving the value of the goods at the time of incorporation under section 15(1) of the Ordinance:(i) (ii) (iii) (iv) labour charges for execution of the works; charges for planning, designing and architects fees; charges for obtaining on hire or otherwise machinery and tools used for the execution of the works contract ; cost of consumables such as water, electricity, fuel, etc., used in the execution of the works contract, the property in which is not transferred in the course of execution of a works contract; cost of establishment of the contractor to the extent it is relatable to supply of labour and services; other similar expenses relatable to supply of labour and services; and profit earned by the contractor to the extent it is relatable to supply of labour and services;

(v) (vi) (vii)

(e) all amount towards labour charges and other charges not involving any transfer of property in goods, actually incurred in connection with the execution of works contract, or such amounts calculated at the rate specified in column (3) of the Table below, if they are not ascertainable from the books of accounts maintained and produced by a dealer before the assessing authority for determining the tax liability under section 15(1) of the Ordinance.

25

Sl. No. (1) 1. 2. 3. 4. 5. 6.

TABLE Type of works contract (2) Electrical Contracts All structural contracts Sanitary contracts Watch and / or clock repair contracts Dyeing contracts All other contracts

Labour or other charges as a percentage value of the works contract (3) 15 15 25 50 50 30

(f) all amounts, including the tax collected from the contractee, refunded to the contractee or adjusted towards any amount payable by the contractee, in respect of unexecuted portion of works contract based on the corrections on account of measurements or check measurements, subject to the conditions that (i) the turnover was included in the return and tax paid; and (ii) the amount including the tax collected from the customer is refunded or adjusted, within a period of six months from the due date for filing of the return in which the said amount was included and tax paid. (4) After assessment under section 24 of the Ordinance, the assessing authority shall serve on the dealer a demand notice in Form - O, after adjusting the eligible input tax credit. If the tax due on assessment is lower than the tax already paid, the assessing authority shall serve upon the dealer a notice in Form - P, informing the dealer of the adjustment of excess tax towards the arrears or the refund of the amount. (5) The value of the goods used in execution of work in the contract, declared by the contractor shall not be less than the purchase value and shall include seigniorage charges, blasting and breaking charges, crusher charges, loading, transport and unloading charges, stacking and distribution charges, expenditure incurred in relation to hot mix plant and transport of hot mix to the site and distribution charges for the purpose of determining the tax liability under section 15(1) of the Ordinance.
(6) Where tax has been deducted at source, the contractor shall submit Form - T after certification by the contractee. In case the contractor is unable to submit the Form - T, he shall pay the tax due.

26

26. Best judgement assessment.- (1) If any person, fails to submit a return within the prescribed period as required under sub-section (1) of section 24; or where the assessing authority is not satisfied with correctness or completeness of the return filed by a person or where the Commissioner has issued directions for making detailed assessment by scrutiny of accounts under sub-section (2) of section 24; or where for any reason the whole or any part of the turnover of the business of a dealer has escaped assessment to tax as provided in sub-section (1) of section 30, subject to the provisions of the Ordinance, the assessing authority shall after making such enquiry as he considers necessary, determine the turnover and tax due thereon to the best of his judgement. The assessing authority before taking such action, shall issue a notice to the dealer giving a reasonable opportunity of being heard. .
(2) If any amount to be due from the dealer towards the assessment, the assessing authority shall serve upon the dealer a notice in Form - O and the dealer shall pay the sum demanded at the time and in the manner specified in the notice.

27. Notice of demand on escaped assessment.- After making assessment under section 30, the assessing authority shall serve upon the dealer a notice in Form - O if any amount is found to be due from the dealer towards the assessment and the dealer shall pay the sum demanded at the time and in the manner specified in the notice. 28. Adjustment/Refund.- (1) Adjustment of excess input tax credit (i) if the input tax credit of a registered dealer, in a tax period exceeds the tax liability of that period, the excess credit shall be adjusted against any dues including the tax, penalty or interest, if any; the balance of excess input tax credit after the adjustment as prescribed in (i) above, may be adjusted against tax payable under the Central Sales Tax Act, 1956 (Central Act 74 of 1956) in that tax period; and the excess input tax credit after adjustment under clause (i) and (ii) above shall be carried over to the subsequent period or at his willingness, may be adjusted against any amount due from another dealer.

(ii)

(iii)

(2) Where a dealer has availed input tax credit during any tax period, he shall file a statement in Form - YY, within forty-five days from the end of each year. (3) Notwithstanding anything contained in these rules, the claim for refund shall be preferred in Form - W before the assessing authority having jurisdiction over the assessee and shall be regulated in the following cases as follows:-

27

(a) subject to the provisions of section 17 of the Ordinance, the claim for refund of tax shall be processed and if such claim is determined to be due, to be refunded, then, such amount claimed shall be refunded within a period of ninety days from the date of receipt of such claim for refund; (b) the claim for refund made under clause (a) of sub-section (1) of section 80 shall be processed and the excess tax shall be refunded within a period of ninety days from the date of receipt of such claim for refund; (c) in all other cases, falling under clause (b) of sub-section (1) of section 80 of the Ordinance, the dealers can prefer a claim for refund of the excess credit on the return after a lapse of twenty-four months or more or in the event of cancellation of registration and such excess tax shall be refunded, if it becomes due after adjustment, if any, within a period of ninety days from the date of receipt of such claim for refund; and (d) the claim for refund of tax paid under this Ordinance as per sub-section (5) of section 80 preferred by the specialized agencies shall be processed and such tax shall be refunded within a period of ninety days from the date of receipt of the claim for refund. (e) the claim petition filed in Form - W shall be scrutinized by the assessing authority and sanction order / pay order shall be issued by the Head of the Division having jurisdiction over the assessee. (f) Wherever the claim for refund paid is Rs.50,000/- or more, the claim petition shall be subject to post audit by the internal audit wing and the claim will be referred to audit wing within fifteen days for post audit.

28 CHAPTER V COLLECTION AND RECOVERY

29. Conditions for collection of tax. - (1) A registered dealer shall collect the tax as prescribed under the Ordinance, by issuing a Tax Invoice. (2) No tax shall be collected on any transaction not liable to tax under the Ordinance or at a rate exceeding the rate specified in section 14. (3) Any amount collected as tax or purported to be tax, whether or not prescribed, shall become due for payment subject to other provisions of the Ordinance and these rules. (4) If any amount of tax collected in excess of the rate prescribed, such amount shall not be allowed for set off against the input tax credit. (5) The dealer may refund the tax charged in excess in any tax period before the due date for filing of tax return for that tax period. responsible for making payment of any sum to any dealer as a consideration for the sale or supply of any goods in pursuance of a works contract between such dealer and the Central Government or a Government of any States or Union territories (including the National Capital Territory) or any other person or class of persons shall, before crediting such sum to the account of the dealer or before payment thereof, deduct an amount of tax as applicable to the goods as provided under section 15. (2) Whenever any person making any deduction as provided in sub-rule (1) shall deposit the sum so deducted to the assessing authority having jurisdiction over the person with a statement in Form - R. (3) A certificate that the dealer has no liability to pay or has paid the tax under section 15 shall be in Form S. (4) On or before 15th of the month succeeding to the month of deduction, the person deducting tax as provided in sub-rule (1) shall pay the amount so deducted to the concerned assessing authority, along with a certificate of deduction in Form-T. Also, issue copy of foils of such certificate in original and duplicate to the dealer from whom the tax has been deducted. (5) A dealer of a works contract may adjust the tax so deducted against the tax payable by him as per his tax return to the extent for which he has obtained the certificate of tax deduction as prescribed in sub-rule (3) and shall attach a copy of such certificate with his tax return.

30. Deduction of tax at source in works contract.- (1) Any person

29
(6) A person making the payment of tax by deduction as provided in this rule, shall be deemed to have made the payment on the authority and on behalf of the dealer and shall constitute a good and sufficient discharge of the liability of the dealer to pay tax in respect of such transaction.

31. Procedures for provisional attachment.- (1) Before resorting to provisional attachment as provided under section 40, the prescribed authority shall make an estimate of the tax and penalty which shall be due on completion of the proceeding.
(2) For provisional attachment the procedures as laid down in the Pondicherry Revenue Recovery Act, 1970 (No.14 of 1970), shall be followed. (3) At no time the value of the property attached provisionally shall exceed to the amount due as estimated by the prescribed authority.

32. Liability of minor or incapacitated person.- In the case of any guardian, trustee or agent of any minor or other incapacitated person carrying on a business on behalf of and for the benefit of such minor or other incapacitated person, the tax shall be levied upon and recoverable from such guardian, trustee or agent, as the case may be, in like manner to the same extent as it would be leviable upon and recoverable from any such minor or other incapacitated person, if he were a major or sound mind and if he were conducting the business himself, and all the provisions of the Ordinance and these rules, shall apply accordingly. 33. Liability of Court of Wards, Administrator-General, Official Trustee, Receiver or Manager appointed by Court.- In the case of a business

owned by a registered dealer whose estate or any portion of whose estate is under the control of the Court of Wards or the Administrator-General or the Official Trustee or any Receiver or Manager (including any person whatever be his designation) who in fact manages the business on behalf of the registered dealer appointed by, or under any order of a Court, the tax shall be levied upon and recoverable from such Court of Wards, Administrator-General, Official Trustee, Receiver or Manager in like manner and on the same terms as it would be leviable upon and recoverable from the registered dealer if he were conducting the business himself; and all the provisions of the Ordinance and these rules shall apply accordingly. 39 shall be in Form U.

34. Further mode of recovery. - The Notice in writing referred to in section

30 CHAPTER VI APPEALS AND REVISIONS 35. Appeal to Appellate Assistant Commissioner.- (1) Subject to the provisions of section 47, any person aggrieved by any original order of an appropriate authority, may appeal to the Appellate Assistant Commissioner having jurisdiction. .
(2) Every such appeal shall be in Form X and shall be verified in the manner specified therein. It shall be in duplicate and shall be accompanied by two copies (one of which shall be either original or a certified copy and the other may be an attested copy) of the order appealed against unless omission to produce such order or copy is explained to the satisfaction of the appellate authority. (3) The appeal may be sent to the appellate authority by post or may be presented to that authority or to such officer as the appellate authority may appoint in this behalf by the appellant or by any person authorised to represent him in accordance with the provisions of rules 32, 33 and 64. (4) If the Appellate Authority finds any defect or omission in the appeal, it shall return the appeal for rectification of the defect or for supplying the omission and re-presentation within fifteen days from the date of return of such appeal: Provided that where the appeal is re-presented after the expiry of the period of fifteen days, the Appellate Authority concerned may admit such petition, if re-presented within a further period of fifteen days and if it is satisfied that the Appellant had sufficient cause for not representing the appeal within the said period. (5) As soon as may be, after the registration of appeal, the Appellate Assistant Commissioner shall send intimation thereof to the Departmental representative. A copy of the Memorandum of Appeal and the order appealed from shall also be furnished to the Departmental Representative. It shall be duty of the Departmental Representative to obtain the records of the case from the assessing authority and transmit them to the Appellate Assistant Commissioner with the counter to the grounds of appeal and confirming the date of communication of original assessment order and payment of admitted tax. (6) On the date fixed for hearing or any other date to which the hearing may be adjourned, the appellant shall ordinarily be heard first in support of his appeal. The assessing authority or Departmental Representative shall be heard next. The Departmental Representative shall file a written argument and the appellant shall be entitled to reply. (7) The order of transfer of appeal by the Secretary under section 48 shall be communicated to the appellant, to every other party affected by the order, to the authority against whose order the appeal was preferred and also to the Appellant Assistant Commissioner having jurisdiction. (8) The appellate authority shall, after giving the appellant a reasonable opportunity of being heard, pass such orders on the appeal as such authority thinks fit subject to the provisions of sub-section (3) of section 47.

31 36. Revision petition to Commissioner.- (a) Every application for revision under section 45 shall be in Form - Y and shall be verified in the manner specified therein. It shall be in duplicate and shall be accompanied by the original or certified copy of the order and an attested copy thereof, unless the omission to produce such order or copy is explained to the satisfaction of the revising authority.
(b) If the Commissioner finds any defect or omission in the revision petition, the Commissioner of Commercial Taxes shall return the petition for rectification of the defect or for supplying the omission and representation within fifteen days from the date of return of such revision petition: Provided that where the revision petition is re-presented after the expiry of the period of fifteen days, the Commissioner of Commercial Taxes may admit such petition, if re-presented within a further period of fifteen days and if he is satisfied that the petitioner had sufficient cause for not representing the revision within the said period.

37. Death of an appellant / revision petitioner.- If an appellant or revision petitioner dies while the proceedings under sections 47 and 45 as the case may be are pending and such proceedings cannot be proceeded with unless the legal representative of the appellant or revision petitioner, as the case may be, is brought on record, the Appellate Assistant Commissioner or the Commissioner of Commercial Taxes, as the case may be, shall adjourn further proceedings to enable the legal representative of the deceased appellant or revision petitioner, as the case may be, to appear and apply for being made a party in the said proceedings. If the legal representative fails to do so within ninety days from the date on which the appellant or the revision petitioner dies, the appeal or revision petition, as the case may be shall abate as regards the deceased.
application to and disposal of etc.,

38. Authority for Clarifications and Advance ruling.- Procedure for filing

(1) (i) An application under section 77 shall be in Form - ZZ and shall be verified in the manner indicated therein and every such application shall be accompanied by a fee of one thousand rupees. (ii) The fees specified in the sub-rule (i) shall be paid by way of crossed demand draft in favour of the Commercial Tax Officer (Head Quarters), Puducherry. (2) An applicant may withdraw an application filed under section 77 of the Ordinance within thirty days from the date of application. (3) On receipt of any such application, if that relates to an officer of Commercial Taxes Department, the authority shall cause a copy thereof to be forwarded to such officer and call for any information or records. (4) The authority may, after examining such application and any records called for, by order, either admit or reject the application within thirty days of the receipt of the application.

32
(5) A copy of every order made under sub-rule (4) shall be sent to the applicant and the officer of the Commercial Taxes Department referred in sub-rule (3). (6) The authority shall hold its sittings at its headquarters at Puducherry as and when required and the date and place of hearing shall be notified in such manner as the Chairman may by general or special order direct. (7) Where an application is admitted under sub-rule (4), the authority shall after examining such further material as may be placed before it by the applicant or obtained by the authority, pass such order as deemed fit on the questions specified in the application, after giving an opportunity to the applicant of being heard, if he so desires. The authority shall pass an order within four weeks of the date of the order admitting the application and a copy of such order shall be sent to the applicant and to the officer of the Commercial Taxes Department referred in sub-rule (3). (8) (i) The authority may at its discretion permit or require the applicant to submit such additional facts as may be necessary to enable it to pronounce its clarification or advance ruling. (ii) Where in the course of the proceedings before the authority, a fact is alleged which cannot be borne out by or is contrary to the record, it shall be stated clearly and concisely and supported by a duly sworn affidavit. (9) Where on the date fixed for hearing or any other day to which the hearing may be adjourned, the applicant or the officer concerned does not appear in person or through an authorized representative when called on for hearing, the authority may dispose of the application ex-parte on merits: Provided that where an application has been so disposed of and the applicant or the officer of the Commercial Taxes Department referred in sub-rule (3), applies within fifteen days of receipt of the order and satisfies the authority that there was sufficient cause for his non-appearance when the application was called upon for hearing, the authority may, after allowing the opposite party a reasonable opportunity of being heard, make an order setting aside the ex-parte order and restore the application for fresh hearing. (10 Where the authority on a representation made to it by any officer or otherwise finds that an order passed by it was obtained by the applicant by fraud or misrepresentation of facts, it may, by order, declare such order to be void ab-initio and thereupon all the provisions of the Ordinance and the rules thereunder shall apply to the applicant as if such order had never been made. (11) A copy of the order made under sub-rule (7) shall be sent to the applicant and the Commissioner or the officer concerned.

33
(12) Where the applicant dies or the business is wound up or dissolved or disrupted or amalgamated or succeeded to by any other person or otherwise comes to an end, the application shall not abate and may be permitted by the authority, where it considers that the circumstances justify it, to be continued by the executor, administrator or other legal representative of the applicant or by the liquidator, receiver or assignee, as the case may be, on an application made in this behalf. (13) Where the authority finds on its own motion or on a representation made to it by the applicant or the officer of the Commercial Taxes Department referred in sub-rule (3), but before the clarification or ruling pronounced by the authority has been given effect to by the officer concerned, that there is a change in law or facts on the basis of which the clarification or ruling was pronounced, it may, by order, modify such ruling in such respects as it considers appropriate, after allowing the applicant and the officer a reasonable opportunity of being heard. (14) (i) The authority may, with a view to rectify any mistake apparent from the record, amend any order passed by it before the clarification or ruling or order pronounced by the authority has been given effect to by the officer concerned. (ii) Such amendment may be made on its own motion or when the mistake is brought to its notice by the applicant or the officer concerned, but only after allowing the applicant and the officer reasonable opportunity of being heard. Note.- Subject to the contrary contained anywhere under the provisions of these rules, the term, authority wherever it occurs in this rule shall be construed as the Authority for Clarifications and Advance Ruling constituted under section 77 of the Ordinance.

39. Appeal to the Appellate Tribunal and Application for review by Appellate Tribunal.- (1) (a) Every appeal under sub-section (1) of section 49 to the
Appellate Tribunal shall be in Form - Z and shall be verified in the manner specified therein.

(b) It shall be in quadruplicate and each of which shall be accompanied by a copy of the order appealed against, one of the accompanied order shall be the original or certified copy. (c) It shall also be accompanied by a proof of payment in support of having paid the appeal fee of rupees one hundred in addition to the proof of payment of admitted tax and twenty five percent of the tax as ordered by the Appellate Assistant Commissioner. (2) (a) Every application for review under sub-section (6) of section 49 to the Appellate Tribunal shall be preferred in Form - BB and shall be verified in the manner specified therein. Where the Government prefers the application, it shall be signed and verified in the manner aforesaid by the Commissioner. (b) It shall be in quadruplicate and shall be accompanied by four copies of the order of the Appellate Tribunal.

34

(c) It shall also, where it is preferred by the assessee, be accompanied by proof of payment of fee of rupees one hundred only. (3) If an appeal or an application for review filed by an assessee under section 49 is allowed by the Appellate Tribunal, or if such appeal or application is disposed of by the Appellate Tribunal without going into the merits, or if such appeal or application is rejected under the provisions of the Puducherry Value Added Tax Appellate Tribunal Regulations, the Appellate Tribunal may, in its discretion by order refund either wholly or partly the fee paid by the assessee under sub-section (2) or sub-section(6) (b) of section 49. under sub-section (1) of section 50 shall be in Form-DD and every petition under subsection (2) of section 51 shall be in Form-EE and shall, be verified in the manner specified therein. (b) The appeal or petition shall be accompanied by the original order or by a certified copy of the order of the Commissioner or the Secretary or the Appellate Tribunal, as the case may be. (2) (a) Every application for review under sub-section (7) (a) of section 50 to the High Court shall be in Form-FF, and every application for review under clause (a) of sub-section (8) of section 51 to the High Court shall be in Form-GG and shall be verified in the manner specified therein. (b) the application for review shall be preferred within one month from the date of communication of the order sought to be reviewed.

40. Appeal or Revision or review by High Court.- (1) (a) Every appeal

41. Security for payment of tax pending appeal or revision.- (1) Where it is provided in the Ordinance, that an appellant or an applicant in revision proceedings, shall furnish security in regard to the payment of tax or fee or other amount, the appellant or applicant, as the case may be, or any person on his behalf shall furnish security as the authority before which the appeal or application is preferred may direct in its discretion. The Security bond shall be in Form-HH with suitable modification, wherever necessary.
(2) Where it is provided in the Ordinance that an appellant or an applicant in revision proceedings shall furnish security in regard to the payment of tax or fee or other amount, the appellant or applicant or any person on his behalf shall furnish property security, along with a security bond in Form-HH or a bank guarantee in Form-G as the authority before which the appeal or application is preferred may, in its discretion, direct. Where an appellant or an applicant in revision proceedings or any person on his behalf furnishes immovable property as security, he shall mortgage such property to the Government by deposit of title deeds in any town which has been notified under sub-section (f) of section 58 of the Transfer of Property Act, 1882 (Central Act IV of 1882) and the security bond in Form-HH shall be registered in the appropriate Sub-Registrars Office. The security bond or the bank guarantee, as the case may be, shall be filed in duplicate, the original of which shall bear appropriate adhesive non-judicial stamps or Court fee stamps. This security bond in Form-HH

35

will cease to have effect from the date of receipt of the appellate or revisional orders by the appellant or applicant or petitioner in case the appeal / application / revision is fully allowed in favour of the appellant / applicant / petitioner or in case the applicant / appellant / petitioner has paid the tax amount as determined by the assessing authority and confirmed by all the authorities in case the proceeding is taken to authorities specified under the Ordinance. The security bond shall thereafter be released by necessary endorsement on the original and returned to the appellant or applicant. The Bank guarantee furnished shall become part and parcel of the records of the assessing or appellate or revising authority and shall not be returned to the bankers or the appellant or the applicant. It shall be cancelled by the assessing authority and an advice of cancellation may be sent to the appellant or applicant or bankers after the expiry of six months from the date of receipt of the appellate or revision order by the appellant or applicant. If a security bond in Form-HH had been furnished, it shall, subject to the provisions of these rules, be released by necessary endorsement on the original and returned to the appellant or applicant and if Bank guarantee had been furnished, it shall, subject to the provisions of these rules, be cancelled by the assessing authority and an advice of cancellation may be sent to the appellant or applicant or bankers, on request by the appellant after the disposal of the appeal or earlier, if sufficient proof is produced that the entire amount for which the appeal / revision has been preferred is fully paid. (3) Where the appellant or applicant furnishes the security referred to in sub-rule (2), he shall file the security bond or the bank guarantee or other security to the assessing authority concerned. The appellant should obtain and file the duplicate copy of security bond with necessary endorsement of assessing officer in Form-HH for having executed the security or the duplicate copy of bank guarantee in Form-G with necessary endorsement of the assessing officer for having filed the bank guarantee, before the appellate or revising authority.

Appellate Assistant Commissioner under sections 45 and 47 shall be communicated to the petitioner, or appellant to every other party affected by the order, to the assessing authority against whose order the application was filed and also to any other authority concerned. (2) Every order of the Secretary under section 46 shall be communicated to the dealer concerned, every other person affected by the order, the assessing authority who has assessed the dealer, and to the Commissioner, if his order was the subject matter of the proceedings.

42. Communication of order.- (1) Every order of the Commissioner and

36

43. Order to be given effect to by assessing authority.- (1) Every order passed on appeal, revision or review shall be given effect to by the assessing authority who shall refund without interest within a period of ninety days from the date of order giving effect to such order passed in appeal, revision or review, any excess tax found to have been collected. For the said purpose, the assessing authority shall serve upon the dealer a notice in Form-P notifying the dealer of the adjustment of excess tax towards arrears, if any, or if there are no arrears of tax due under the Ordinance from the dealer or if after such adjustment there is still an excess, the assessing authority shall refund the amount of the excess tax. If any amount is found to be due from the dealer, the assessing authority shall serve upon the dealer a notice in Form-O and the dealer shall pay the sum demanded in the manner specified in the notice.
(2) If the tax, as determined in appeal or revision is in excess of the power of assessment of the initial assessing authority, the appellate or revising authority shall transfer the original records of assessment to the appropriate assessing authority who shall have power to collect the tax due in the same manner, as if it were a tax assessed by itself. The appropriate assessing authority shall serve upon the dealer a notice in Form-O and the dealer shall pay the sum demanded in the manner specified in the notice.

44. Cost awarded by Tribunal or High Court.- (1) While disposing an appeal or revision the tribunal or the High Court as the case may be, may award cost at its discretion, to any party other than the Government side.
(2) Cost if any awarded as in sub-rule (1) may be collected by the assessing authority, if so authorised by the Tribunal or the High Court as the case may be, by issuing a notice.

37

CHAPTER - VII RECORDS AND INVESTIGATION 45. Maintenance of accounts by dealers.- (1) Where any dealer keeps

and maintains his accounts in a language other than English, he shall adopt international numerals in the maintenance of such accounts. (2) Every dealer shall keep accounts showing separately for each category of goods produced or manufactured; bought or received; sold, supplied or distributed by him and the quantity and value thereof together with the voucher. (3) Every dealer, except the dealer opted to pay tax at compounded rate as provided under sections 19 and 15(2), shall keep separate purchase and sales accounts for each category of goods, showing the input tax and output tax. The input tax column of the purchase account shall be totalled taking into account of disallowance, restriction, partial-reversal and reversal of input tax credit as contemplated under rule 17 and output tax column shall also be totalled taking into account of exclusions and deductions contemplated under rule 15 and 16. All the purchase and sales account shall be closed on monthly basis for the purpose of reporting the turnover in the return. (4) A dealer paying tax in compounded rate shall maintain purchase accounts and sales account preserving the tax invoice of purchase and sales. (5) Further the accounts of purchase and sales shall be maintained separately when such purchases and sales take place within the Union territory, in the course of inter-state trade or commerce and in the course of import or export. (6) Every registered dealer who manufactures or produces shall maintain a production-cum-stock register in Form-H. (7) Every dealer executing works contract shall keep separate accounts for each contract specifying the particulars of the names and addresses of the persons for whom he has executed works contract. (8) Every dealer executing works contract and opting to pay tax by way of composition shall maintain records of (a) (b) (c) payments received from the contractee; records of entry in Form-L Return; and records of tax deduction at source.

(9) Every dealer executing works contract and not opting to pay tax by way of composition shall keep the following records, namely:-

38

(a) the particulars of goods procured by way of purchase or otherwise for the execution of works contract; (b) the particulars of goods to be used or used in the execution of each works contract; (c) the details of payment received in respect of each works contract; and (d) the details of : (i) labour charges for works executed; (ii) amount paid to sub-contractor for labour and services; (iii) charges for planning, designing and architects fee; (iv) charges for obtaining on hire or otherwise machinery and tools used for the execution of the works contract; (v) cost of consumables such as water, electricity, fuel etc., used in the execution of the works contract; the property in which is not transferred in the course of execution of a works contract; (vi) cost of establishment of the contractor to the extent it is relatable to supply of labour and services; (vii) other similar expenses relatable to the supply of labour and services; (viii) profit earned by the contractor to the extent it is relatable to supply of labour and services; (ix) all amounts for which goods exempted are transferred in execution of works contract; and (x) turnover of the goods involved in the execution of works contract which are transferred in the course of inter-State trade or commerce under section 3 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956) or transferred outside the Union territory under section 4 or transferred in the course of import or export under section 5 of the said Act.

46. Accounts of dealers transacting through agents.- (1) A dealer, transacting business through agents, shall furnish along with his monthly tax return, a statement, showing separately the description of each category of goods purchased or sold through each agent; and the turnover and tax due thereon; and designation of the assessing authority to whom the tax is paid by the agent.
Explanation.- For the purpose of this rule, the term agent means an agent as defined under sub-clause (iii) of clause (n) of section 2. (2) Such dealer shall also furnish the following, as and when demanded by the assessing authority:-

39

(i) the originals of the written contract, entered into with the agents or the authorisation letters issued to the agent; (ii) accounts showing the description, quantity and the value of the goods despatched to each agent on each occasion with proof of movement of goods; (iii) copies of the tax invoice issued by the agents to the purchasers; (iv) accounts rendered by the agents to the dealer from time to time.

47. Accounts of agents.- (1) A dealer carrying on business as an agent, shall furnish along with his monthly tax return, a statement, showing separately the description of each category of goods purchased or sold for each principal and the turnover and tax due thereon.
Explanation.- For the purpose of this rule, the term agent means an agent as defined under sub-clause (iii) of clause (n) of section 2. (2) Such dealer shall maintain(i) (ii) accounts showing separately the particulars of each category of goods purchased or received for sale, in respect of each principal; the original or copy of the written contracts, entered into with the principal or letters of authorisation received from the principals ; accounts of sales effected on behalf of each principal showing the description, quantity, value of each category of goods and the tax due thereon ; and copies of accounts rendered to each principal.

(iii)

(iv)

48. Accounts of dealer carrying business as principal and agent.- A dealer carrying on business both as principal as well as agent shall maintain, in addition to the accounts prescribed in rule 45, 46 and 47, separate stock account as follows, (i) (ii) stock accounts of goods dealt by him on his own account, and stock of goods dealt by him as agent separately for each principal so as to enable identification of the goods of the different principals at any given time.

40

made by him.

49. Invoice.- (1) Every dealer shall issue an invoice in respect of every sale

(2) Every dealer liable to pay tax under section 14 shall issue tax invoice bearing the following particulars, namely:(i) (ii) (iii) (iv) (v) name and address of the seller; the registration number (TIN) of the seller with date of registration; the date of sale; and date of despatch, if different from date of sale; the quantity, rate, value, amount of tax charged and sufficient details of the goods sold; and the name and full address of the purchaser with his registration number (TIN), in case he is a dealer, and shall be duly signed and dated by the dealer or any person so authorised by him.

(3) Every such tax invoice shall be serially numbered and prepared in triplicate. Original Tax Invoice shall be issued to the purchaser, second copy to the transporter and the other copy shall be retained by the dealer / manufacturer as the case may be. (4) Every registered dealer or his authorised representative purchasing goods, shall disclose to the selling dealer, name and full address with his registration number (TIN) otherwise such purchasing dealer shall not be eligible for input tax credit. (5) Every dealer liable to pay tax under section 15(1) shall issue tax invoice with suitable modifications depending upon the nature of works contract. (6) Every dealer who has opted to pay tax under section 15(2) and 19 of the Ordinance shall issue an invoice in the manner specified in the sub-rule (2) and (3) of this rule with suitable modifications depending upon the nature of business without collecting tax from the purchaser. (7) Every dealer who is making purchases from an agriculturist or from a source other than the registered dealer shall issue a bought note exhibiting details such as name of the seller and his address, description of goods, quantity and value. maintained by a dealer together with all vouchers relating to stocks, deliveries, purchases and sales for a year, shall be preserved by them for a period of five years from the end of the year to which the accounts relates to. In computing the period of five years, the time during which any proceedings under the Ordinance remains pending before a Civil Court or other authority, shall be excluded.

50. Maintenance and preservation of accounts.- (1) All accounts

41

(2) Every registered dealer shall keep books of account for the current year, at the place of business specified in the certificate of registration. A dealer having more than one place of business in the Union territory, the books of account relating to each place of business for the current year shall be kept in the place of business concerned. He shall also keep the books of account for the previous five years at such place or places as he may notify to the registering authority.

51. Delivery Note.- (1) The delivery note as referred to in section 57 shall be in Form-JJ. The delivery note in Form-JJ shall be printed by the dealer with serial number and used by the registered dealer for transportation of goods.
(2) The other document to be carried by the owner or person in-charge of a goods vehicle shall be a declaration in Form-MM and shall be furnished to the inspecting officer on demand. (3) Every dealer who uses the delivery note shall maintain a register in Form-NN. If any such form is lost, destroyed or stolen, the dealer shall report the fact to the assessing authority within a week of such loss, destruction, theft, making appropriate entries in the remarks column of the said register and take such other steps to issue public notice of the loss, destruction or theft as the assessing authority, may direct. (4) The Assistant Commissioner shall, from time to time, publish in the Puducherry Government Gazette, the particulars of the delivery notes in respect of which a report has been received under sub-rule (3). required to be furnished under section 54 shall be in Form - CC. Such certificate shall be furnished to the assessing authority on or before thirtieth September of the year succeeding to which it relates or such other date as may be extended, from time to time by issue of notification.

52. Audited Accounts.- The certificate of audit of accounts of a dealer

shall, as and when required by any officer authorised under the Ordinance, submit copies of goods vehicle record, trip sheet or log book, as the case may be and also the tax invoice or delivery note which accompanies the goods.

53. Possession and submission of certain records by owners of goods vehicle and boats.- Any transporters of goods, including courier agencies

42 CHAPTER - VIII SEARCH, SEIZURE, CONFISCATION AND ACQUISITION 54. Search as per the procedure prescribed in Criminal Procedure Code 1973 (Central Act 2 of 1974).- (1) The officers of the Commercial Taxes

Department not below the rank of an Assistant Commercial Tax Officer, who is empowered for the purposes of section 55 conducts a search of any office, shop, business-cum-residence (residential accommodation) godown, vessel, vehicle, or any other place of business or any premises or place where he has reason to believe that the dealer keeps or is for the time being keeping any goods, accounts, registers or other documents of his business, he shall as far as possible follow the procedure prescribed in the Code of Criminal Procedure, 1973 (Central Act 2 of 1974). (2) If on search, such officer finds any accounts, registers or other documents which he has reason to believe relate to any evasion of tax or other fee due from the dealer under the Ordinance, he may, for reasons to be recorded in writing, seize such accounts, registers, or other documents and shall give the dealer a receipt for the same. The accounts and registers so seized shall not be retained by such officer for more than thirty days at a time without the permission of the next higher authority. under section 55 of the Ordinance, finds any goods in any office, shop, godown, vehicle, vessel or any place of business or any other building or place of a dealer which have not been accounted for in the accounts, registers, or other documents maintained in the course of his business, the officer may, for reasons to be recorded in writing, seize such goods. The order of seizure on Form-LL shall specify the description, the quantity and the value of the goods seized. A copy of it shall be served on the dealer or the person-in-charge of the goods. (2) Any officer may, if security in cash is furnished to his satisfaction, order release of goods seized to the owner, and if he is not present, to the person-in-charge of the goods pending further enquiry, if necessary. The order of release on Form-OO shall be subject to the condition that if the goods in question are finally confiscated under sub-rule (4), they shall be produced within such time as may be required, failing which, the cash security furnished shall stand forfeited to the State Government without further notice. (3) In cases not falling under sub-rule (2), if the whole or any part of the goods, seized under sub-rule (1) are of a perishable nature, the officer may sell them or get them sold, in public auction as laid down in sub-rules (8) to (17): Provided that the notice of fifteen days laid down in sub-rule (9) below shall not apply to the public auction of goods of perishable nature and in lieu of the same, the officer shall cause adequate publicity through displaying a notice on the notice board of his office.

55. Seizure and confiscation of goods. - (1) If any officer authorised

43
(4) Any such officer, after making such enquiry as he deems fit and after giving the owner of the goods, if he is ascertained, an opportunity of being heard, may confiscate the whole or any part of the goods seized, if he is satisfied that there is evasion or an attempt to evade tax thereon in any manner whatsoever. If the owner is not ascertainable even after the enquiry, the officer shall order for confiscation of such goods. A copy of the order of confiscation on Form-UU shall be served to the owner of the goods if he is ascertainable. (5) The goods confiscated under sub-rule (4) shall be sold in public auction as laid down in sub-rules (8) to (17). (6) If, on enquiry, under sub-rule (4), it is considered by the officer who seized the goods that confiscation is not warranted in regard to any of the goods seized, or if any order of confiscation is set aside or modified in regard to any goods, on appeal or revision, such goods shall be returned to the owner or any other person authorised by him if they had not been sold in public auction under sub-rule (3) or (5). If they had already been sold in public auction, the proceeds of the same less the expenses incurred in the sale, if any, by the Government, shall be refunded to the owner of the goods or any other person authorised by him. (7) In case wherein a confiscation order has been passed in respect of any goods, the owner of which was not ascertainable before the order is passed, such owner of the goods, or any other person on his behalf may appear before the officer who ordered the confiscation and satisfy him with relevant records regarding the bonafides of the goods in question and regarding the reasons for his non-appearance earlier. If the officer is satisfied that there has been no evasion or attempt at evasion of tax he may order, for reasons to be recorded in writing, the release of the goods confiscated or if such goods had already been sold and delivered, the refund of the sale proceeds of the goods, less the expenses incurred for safe custody of the goods and other incidental charges. If the officer is not so satisfied, he may after recording reasons therefor, order that the sale under sub-rule (5) shall be proceeded with or that the proceeds of the sale already conducted shall not be refunded, as the case may be. (8) The officer who detained the goods shall cause to be published in the notice board of his office a list of the goods detained and intended for sale with a notice on Form-VV under his signature, specifying the place where and the date on, and the hour at which the detained goods will be sold in open auction and shall also display a copy of such list and notice in the office of the Commercial Tax Officer having jurisdiction over the place where the goods were detained. (9) A notice of fifteen days shall be given before the auction is conducted. (10) Intending bidders shall deposit as earnest money a sum equal to five percent (5%) of the estimated value of the goods.

44
(11) At the appointed time, the goods shall be put up in one or more lots, as the officer conducting the auction sale may consider necessary and shall be knocked down in favour of the highest bidder, subject to confirmation of the sale by the Commercial Tax Officer having jurisdiction over the place where the goods were detained. (12) The earnest money deposited by the unsuccessful bidders shall be refunded to them within three days from the date of auction. (13) (a) The auction purchasers shall pay to the officer conducting the auction the sale value of the goods in cash immediately after the sale and shall not be permitted to carry away any part of the goods until he has paid in full and until the sale is confirmed by the authority specified in sub-rule (11). (b) The officer receiving the value of the goods in cash shall issue a receipt in Form-WW to the person making such payment. (14) Where the purchaser fails to pay the purchase money, the earnest money deposited by the defaulting bidder shall be forfeited to the Government and the goods shall be resold in the auction. The procedure prescribed for the first auction shall be followed for conducting the subsequent auction. (15) If any order directing detention is set aside on appeal or revision, the goods so detained, if they have not been sold in auction, shall be released and if they have been sold, the proceeds thereof shall be paid to the owner of the goods, deducting the expenses incurred from the time of the detention of goods to the time they were sold in auction. (16) Any person from whom tax is due shall, on application to the officer in Form-XX who conducted the sale, and upon sufficient proof, be paid the sale proceeds specified under sub-rule (13), after deducting the expenses of sale and other incidental charges and the amount of tax due. (17) The procedure specified in this rule shall apply to give effect to the orders directing refund on appeal or revision.

56. Acquisition of goods. (1) The powers specified under section 25 of the Ordinance shall be exercised with prior approval of the next higher authority, by any officer not below the rank of the Commercial Tax Officer having jurisdiction over the area where the goods are available at the time of initiating proceedings for acquisition of goods.
(2) The goods acquired under section 25 shall be sold in the public auction following the procedure laid down sub-rules (8) to (17) of rule 55. (3) Every officer who has acquired the goods under section 25 shall pass orders within fifteen days from the date of such acquisition, sanctioning payment of compensation to the owner of goods as specified in sub-section (6) of section 25.

45 CHAPTER IX OFFENCES AND PENALTIES 57. Penalty for breach of rules.- Whoever commits a breach of any of these rules shall on conviction by a Judicial Magistrate be punishable with fine, which may extend to one thousand rupees; and where the breach is a continuing one with further fine which may extend to rupees one hundred for every day after the first breach during which the breach continues:
Provided that in lieu of prosecution, the offence of breach of rule may be compounded in the same manner as laid down under section 62 for the offences under section 59 of the Ordinance.

58. Officers empowered to compound offences.- Assistant Commercial Tax Officer, Deputy Commercial Tax Officer and Commercial Tax Officer of the Commercial Taxes Department who are exercising powers under the Ordinance within their jurisdiction shall be the prescribed authority for the purposes of section 62 of the Ordinance.

46 CHAPTER - X CHECK POST 59. Check post.- (1) Officers of the Commercial Taxes Department not below the rank of an Assistant Commercial Tax Officer as may be empowered by the Commissioner of Commercial Taxes under section 58 of the Ordinance may be the prescribed authority for the purposes of the Ordinance.
(2) The driver or any other person in charge of the goods vehicle or both or the consignor or consignee shall furnish adequate security, as the prescribed authority mentioned in sub-rule (1) may direct. The security bond shall be in Form-II. (3) For purposes of sub-section (1) and (2) of section 57 the following shall be the documents to be sent along with the goods namely:(a) A bill of sale or a delivery note in Form-JJ and a goods vehicles record or a trip sheet or log book; (b) A certificate from the Village Administrative Officer when the goods under the transport are claimed to be agricultural produce other than sugarcane grown in his own land or on a land in which he has interest or declaration signed by the agriculturist and by the registered dealer to whom the agricultural produce is transported; and (c) A certificate from the Cane Inspector (or the Agriculture Officer working under the Government having jurisdiction over the area from which sugarcane is transported) when the goods under the transport are claimed to be sugarcane grown in his own land or on a land in which he has interest or declaration signed by the agriculturist and by the registered dealer to whom the agricultural produce is transported; (d) A delivery note in Form-JJ when the goods are transported from one place of his business to another. (e) The bill of sale or delivery note or the certificate of declaration, as the case may be, in respect of the goods carried in the goods vehicle or boat shall be in duplicate. (4) A copy of the order of detention of the goods made under sub-section (2) of section 58 shall be served on the driver of the vehicle or the boat or other person in charge of the goods along with order specifying the tax or security to be paid for the release of goods. (5) The owner of the goods, other than the goods which are subject to speedy and natural decay ordered to be detained, shall pay the tax or security ordered to be paid within a period of one month from the date of the order.

47

(6) (a) If the amount of tax due or security directed to be paid, is paid, the said officer shall issue a receipt in the name of the person liable to pay tax specifying also the name and status of the person making such payment and shall release the goods. (b) On receipt of the payment of the tax or security, the prescribed authority mentioned in sub-rule (1) shall allow the vehicle or boat to pass. (c) The prescribed authority mentioned in sub-rule (1) shall intimate the details of such collection to the concerned assessing authority within three days of such collection. (7) (a) The security paid under sub-rule (5) or sub-rule (6) shall, on application of the owner of the goods vehicle or boat or the consignor or the consignee, be either adjusted towards the tax due from him or be refunded to him, if he is found not liable to tax. (b) When the owner of the goods vehicle or boat or the consignor or the consignee, as the case may be, wishes to have the security adjusted towards the tax due from him he shall send an application and the receipt for payment along with the return due from him. The application to claim refund of the amount shall be made to the assessing authority having jurisdiction over the place of business in the case of an assessee or over the place of residence in the case of others within thirty days from the date on which the amount was paid. (8) (a) The said officer shall cause to be published in the notice board of his office, a list of the goods detained and intended for sale with a notice under his signature, with seal specifying the place where, and the day and the hour at which the detained goods will be sold in open auction and shall display the copies of such list and notice in more than one public place or other place where the goods were detained. Copies of the list and notice shall be displayed in the office of the Commercial Tax Officer and the Assessing Authority having jurisdiction over the area where the goods were detained is situated. A notice of fifteen days time shall be given before the date fixed for the proposed auction. (b) If the prescribed authority mentioned in sub-rule (1) is an officer below the rank of a Deputy Commercial Tax Officer, the auction shall be conducted by an officer not below the rank of a Deputy Commercial Tax Officer having jurisdiction. Intending bidders shall deposit as earnest money a sum amounting to five per cent of the estimated value of the goods. (c) At the appointed time, the goods shall be put up in one or more lots, as the officer conducting the auction may consider advisable, and shall be knocked down in favour of the highest bidder, subject to confirmation of the sale by the Commercial Tax Officer concerned.

48
(d) The auction purchaser shall pay the sale value of the goods in cash immediately after the sale and he will not be permitted to carry away any part of the goods until he has paid for the same in full and until the auction sale has been confirmed by the appropriate authority mentioned in clause (c). Where the purchaser fails to pay the sale value, the goods shall be resold by auction at once and earnest money deposited by the defaulting bidder shall be forfeited to the Government. The earnest money deposited by the unsuccessful bidders shall be refunded to them immediately after the auction is over. (9) The sale proceeds shall be remitted into the Government Treasury as revenue deposit. (10) If any order of detention is reversed on appeal or revision, the goods so detained, if they have not been sold before such reversal comes to the knowledge of the Deputy Commercial Tax Officer conducting the auction, shall be released or if they have already been sold, the proceeds thereof shall be paid to the owner of the goods. The charges, if any, incurred for the period of detention towards rent, hire or wharfage, as the case may be, when the goods have not been sold, shall be a charge on the goods and shall be recovered from the owner of the goods, before the release of the goods or payment in lieu thereof, as the case may be, to him. (11) Any person from whom tax is due under section 58, shall, on application to the Deputy Commercial Tax Officer who conducted the auction sale, and upon sufficient proof, be paid the sale proceeds mentioned in clause (d) of sub-rule (8) after deducting the expenses of sale and other incidental charges and the amount of tax due. (12) The above procedure will apply mutatis mutandis in respect of orders directing refunds on revision or appeal. (13) In all proceedings initiated against the driver or person in charge of the goods vehicle or boat, the name of the consignee and consignor, if known, shall be associated. (14) When the goods are moved for export or are transported after clearance from a seaport, the clearing or forwarding agent, as the case may be, notwithstanding that such agent is not a dealer registered under the Ordinance or any other person in charge of the goods vehicle or boat, who, on behalf of such agent transports the goods, shall carry with him the following documents in respect of the goods carried in the goods vehicle or boat, namely:(a) A trip sheet or log book, as the case may be; (b) A bill of sale or Form-KK; and (c) In the case of goods moved for export (i) if the purchase is made within the Union territory,(A) sale invoice; and

(B) letter from the exporter specifying the name of the port of export, the name of the ship and its probable dates of arrival and departure from the port; or (ii) if the purchase is made outside the Union territory of Puducherry,(A) purchase invoice for the goods purchased; and (B) letter from the clearing or forwarding agent addressed to the shipping agent or export agent specifically mentioning the actual quantity and value of the goods consigned for export and the name of the firm outside the Union territory on whose behalf the goods are purchased for export; or (d) In the case of imported goods,(i) Copy of the foreign invoice with the bill of entry; (ii) Letter from the importer or clearing or forwarding agent to the consignee, specifically mentioning the description of the goods imported: and (iii) Records showing the value of the goods imported. (15) Form-KK shall be printed with serial number and used by the forwarding and clearing agent. (16) The clearing or forwarding agent or other person in charge of the goods vehicle or boat shall, within 48 hours after the goods are delivered, submit to the Commercial Tax Officer having jurisdiction over the area in which the goods are delivered, copies of goods vehicle records, trip sheet or log book, as the case may be, bill of sale or delivery note and also records showing the value of the goods imported.

49

50

CHAPTER XI MISCELLANEOUS 60. Power of officer to issue summons.- (1) The summons under section 72 for the production of a document or for the appearance of any person shall be Form-PP.
(2) Where a person to whom a notice under section 39 is served objects to it by a statement under sub-section (5) section 39, such statement shall be in Form-QQ. (3) A person other than the assessee or his agent or representative who appears pursuant to a summon under section 72 to give oral or documentary evidence shall be paid travelling allowance and batta at such rates as may be fixed by the Union territory Government from time to time. Form-RR.

61. Notice for penalty.- The notice for levy of penalty will be issued in

62. Appearance by authorised Representative.- (1) The person specified in clause (a) and (c) of section 70 appearing on behalf of a dealer or other person in any proceedings before any authority under this Ordinance other than the High Court shall file before such authority an authorisation given by the dealer or such person in Form-SS.
(2) (a) An accountant appearing under clause (c) of section 70 shall be a Chartered Accountant as defined in the Chartered Accountants Act, 1949 (Central Act XXXVIII of 1949) or Cost Accountant as defined in the Cost and Works Accountants Act, 1959 (Central Act 23 of 1959). (b) No person shall be eligible to appear as a Value Added Tax Practitioner under clause (c) of section 70 unless his name has been included in the list in Form-TT. The following qualifications are pre-requisite to get his name included in the list in Form-TT. (i) He should have passed any one of the following accountancy examinations recognized by the Central Board of Revenue constituted under the Central Board of Revenue Act, 1924 (Central Act IV of 1924), for the purpose of clause (v) of subsection (2) of section 288 of the Income Tax Act, 1961 (Central Act 43 of 1961), namely:(A) The National Diploma in Commerce awarded by the All India Council for Technical Education, New Delhi, provided the diploma holder has taken advanced Accountancy and Auditing as an elective subject for the Diploma Examination;

51

(B) Government Diploma in Company Secretary-ship awarded by the Department of Company Affairs under the Ministry of Industrial Development and Company Affairs, New Delhi; (C) Final examination of the Institute of Company Secretaries of India, New Delhi; or (ii) He should have,(a) acquired a degree in Commerce, Corporate Secretaryship, Law, Economics or Banking including Higher Auditing or Business Administration or Business Management conferred by a University recognized by the University Grants Commission; or (b) retired or resigned from the Puducherry Commercial Taxes Department and had been, at any time during his service in that Department, an assessing authority or other officers who had held the post requiring knowledge of law: Provided that no person who was employed in the Puducherry Commercial Taxes Department and has retired or resigned from such employment, shall be eligible for a period of two years from the date of retirement or from the date of acceptance of the resignation, as the case may be, to appear on behalf of a dealer or other person under clause (a) and as a Value Added Tax Practitioner under clause (c) of section 70 except before the Appellate Tribunal: Provided further that the Government may, in respect of a retired officer of the Puducherry Commercial Taxes Department, relax the above condition, for reasons to be recorded in writing. (c) Notwithstanding anything contained in clause (b) of sub-rule (2) of this rule, every Sales Tax Practitioner qualified under section 56 of the Pondicherry General Sales Tax Act, 1967 and enrolled as a Sales Tax Practitioner under rule 50 (iv) of the Pondicherry General Sales Tax Rules, 1967 will be deemed to be a Value Added Tax Practitioner under this rule. (d) No person who has been dismissed or removed from Government service or who has been convicted for an offence under the Ordinance or who has become an insolvent shall be eligible to appear as a Value Added Tax Practitioner under clause (c) of section 70. (e) (i) Every Value Added Tax Practitioner possessing the qualification prescribed in clause (b) of sub-rule (2) of this rule shall have his name entered in the list maintained in Form-TT by the Commissioner on an application made by him in that behalf to the Commissioner. (ii) The Commissioner shall upon any information received or otherwise, effect amendments in the said list as may be necessary by reason of any change of address or death of any practitioner or on request by any practitioner for removal of his name from the list.

52

(f) (i) If any Value Added Tax Practitioner is found guilty of misconduct in connection with any tax proceedings by the Commissioner of Commercial Taxes having jurisdiction or by the Appellate Tribunal, the Commissioner of Commercial Taxes or the Appellate Tribunal may direct that he shall henceforth be disqualified to represent any person under section 70, either permanently or for a specified period and shall remove his name from the said list: Provided that no such direction shall be made unless the Value Added Tax Practitioner is given a reasonable opportunity of being heard. (ii) any Value Added Tax Practitioner against whom such direction is made by the Commissioner of Commercial Taxes or the Appellate Tribunal may, within one month of the date of receipt by him of the said direction, appeal to the Secretary or to the High Court, respectively to have the direction cancelled. (3) Any person who has appeared before any assessing authority under the repealed Act i.e. under the Pondicherry General Sales Tax Act, 1967(Act No.6 of 1967) as an Accountant for a period of not less than seven years and having active practice will be deemed to be the Value Added Tax Practitioner for the purposes of section 70 of the Ordinance provided the Commissioner has allowed such Accountant to be enrolled as a Value Added Tax Practitioner after holding an interview.

Practitioner or the appointment of a Legal Practitioner shall remain valid until it is cancelled in writing by the person who has given such authorisation or made such appointment:

63. Change of Authorization of representative and appointment of legal practitioner.- An authorisation given to an Accountant or a Value Added Tax

Provided that when the said person desires to cancel the authorisation or appointment as the case may be, in the course of the proceedings, he may do so with the consent of that Accountant or Value Added Tax Practitioner or Legal Practitioner, already on record. When such consent is refused, the authorisation or appointment may be cancelled with the permission of the concerned Authority, before whom the proceeding is pending.

or order under the Ordinance or these rules may be effected either electronically or manually in any of the following ways, namely:(a) by giving or tendering it to such dealer or his manager or agent or the legal practitioner appointed to represent him or to his authorised representative; or (b) if such dealer or his manager or agent or the legal practitioner appointed to represent him, or his authorised representative is not found, by giving or tendering it to any adult member of his family; or (c) by sending it to the address of the dealer by registered post; or

64. Modes of service.- (1) The service on a dealer of any notice, summons

53

(d) if none of the modes aforesaid is practicable, by affixing it in some conspicuous place at his last known place of business or residence in the presence of two independent witnesses. Explanation.- Endorsement by a person who delivers the notice, summons or order of having tendered or given will be proof for the purpose of clause (a) of this sub-rule. (2) Where any Hindu Undivided Family, firm or other association of persons is partitioned, dissolved or discontinued, notice, summon or order issued under the Ordinance or these rules may be served on any member of the Hindu Undivided Family, any person who was a partner (not being a minor) or member of the association, as the case may be immediately before such partition, dissolution or discontinuance.

65. Publication of information in respect of assessees.- (1) The following information in respect of assessee will be published under sub-section (3) section 74, namely:(a) Names of defaulters of tax with details where the total amount of tax and other dues for one or more years is rupees ten lakhs or more and is not covered by stay granted by the appropriate authorities and remaining unpaid for more than two months after the due date. (b) Names of dealers with details who have suppressed their tax liabilities or have evaded the payment of tax under the Ordinance involving rupees ten lakhs or more for one or more years detected at a time. (c) Names of dealers or persons with details on whom a penalty of not less than rupees fifteen lakhs under the Ordinance has been imposed during any year. (d) Names of dealers or persons with details, who have been convicted for any offence under clauses (a) and (b) of sub-section (2) and subsection (3) of section 59 any year.

transporter, courier agency, post office, railway parcel house, customs ware-house, air cargo house and such other ware houses, shall, if so required by an Officer not below the rank of Assistant Commercial Tax Officer, furnish any such particulars as he may require in respect of the transactions of any dealer with them.

66. Furnishing of information by banks, clearing houses, transporters etc.- Every bank, clearing house, clearing and / or forwarding agent,

67. Modes of payment.- The taxes or other amounts due under the Ordinance shall be paid (a) by remittance into State Bank of India or any other Bank authorised by the Government from time to time; or

(b) by remittance in cash into a Government Treasury or to the assessing authority or other officers empowered to make the demand or authorised to make the collection; or (c) by means of a crossed cheque in favour of the assessing authority drawn on any one of the Banks situated within the city/town where office of the assessing authority is situated; or (d) by means of a crossed demand draft or a bankers cheque drawn in favour of the assessing authority.; or (e) by any other mode as authorised by the Government from time to time: Provided that the method of payment by means of cheque shall not be applicable to the casual traders and to the dealers whose cheque got dishonoured for want of funds on more than one occasion.

54

68. Rounding off of any amount due.- Any amount due for payment or refund under the Ordinance or these rules, may be rounded off to the nearest multiple of rupees five. 69. Prescribed Forms.- (1) Where a form has been prescribed by these rules for the keeping or maintaining of any accounts or for the submission of any return, only the appropriate forms printed under authority of the Union Territory Government shall be used for the purpose:
Provided that the Government may by a general order at any time, permit the dealers to use privately printed copies of forms. (2) The forms prescribed in the rules may be used with such variation in matters of detail, as may be directed by the Commissioner of Commercial Taxes from time to time.

70. Liabilities under the Repealed Act.- Notwithstanding anything contained in these rules, a dealer liable to pay any amount due or submit any tax return, application or declaration under the Pondicherry General Sales Tax Act, 1967 (the repealed Act) for the period prior to the commencement of the Ordinance, shall, within one month of the commencement of the Ordinance, pay such dues or submit the tax return, application or declaration, as the case may be, in accordance to the provisions of the Pondicherry General Sales Tax Rules, 1967.