Sales Tax Instructions

Sales Tax Instructions, 2009
6. Addition and alterations. -- A manufacturer who makes a declaration under sub-rule (1)
of rule 3 may modify, alter or add any number of machines in the factory, after giving to the
Superintend of Sales Tax fifteen days notice of such modification, alternation or addition, as the
case may be, in writing, specifying therein the details of modifications alterations and addition of
number of machines installed in the factory.
(2) If there is reason to believe that the additional machines are based on new
technology, the fixed amount of sales tax per machine shall be determined by the Board afresh,
after receipt of report from concerned Collector in a manner as it may deem fit.
(3) The manufacturer‘s declaration given under sub-rule (1) or sub-rule (3) of rule
3, as the case may be, shall stand modified from the date of alternation in the number of machine
in the factory and the modified declaration shall be verified in the manner specified in sub-rule (3)
of rule 3.
(4) The Assistant Collector of Sales Tax shall thereafter re-determining the liability
of the manufacturer in a manner that he shall be liable to pay the fixed amount of sales tax on
such additional machines installed in accordance with the rates specified in the Notification and
as re-determined under sub-rule (3) from the month during which such addition or alteration has
been made.
(5) The total liability of a manufacturer to the fixed amount of sales tax shall be the
total amount of sales tax determined under sub-rule (1) of rule 5 or sub-rule (4) of this rule.
7. Sale or transfer of machinery. -- The manufacturer shall, in case of sale or transfer of
machinery to any other place, inform the new address of the unit to the concerned Collector of
Central Excise and Sales Tax and the new owner shall pay the same amount of fixed tax and in the
same manner as his predecessor was paying:
Provided that in case he fails to do so, he shall continue to pay the fixed sales tax in respect of the
machines sold or transferred by him.
8. Effect of deletion of machinery. -- Any reduction in number of machinery by a
manufacturer during the course of a financial year shall not require reassessment of his liability
and he shall continue to pay the tax determined in the Notification.
9. Abatement not allowed. -- No abatement shall be allowed on account of closure or on any
other account of the unit or part thereof.
10. Limitation for rebate, remission, refund, drawback or adjustment. -- A manufacturer
paying sales tax under the Notification shall not claim any rebate, remission, refund, adjustment
or drawback of sales tax under any provision of the Act, or any other rules made hereunder.
11. Additional tax to be paid. --If the fixed amount of sales tax due is not paid by the due date
under these Rules, a manufacturer shall, subject to any other provision contained in the Act, be
liable to pay additional tax provided for in the Act.
Explanation. -- (1) For the purpose of calculating additional tax, the period of default shall be
reckoned from the 11 th of the month preceding the month to which the fixed amount of sales tax
relates.
(2) In this rule, the expression ―tax due‖ includes the additional tax.
12. Penalty. – if any person, in connection with any matter of sales tax,
(a) makes or signs or causes to be made or signed, or delivers or causes to be
delivered to an officer of sales tax any declaration, notice, certificate or other
(b)
documents whatsoever; or
makes any statement in answer to any question put to him by an officer of sales
tax, which he is required by or under the Act to answer.
Knowingly or having reasons to believe that such document or statement is false in any material
particular, he shall, without prejudice to any other action, be liable to a penalty not exceeding
twenty five thousand rupees or twice the fixed amount of sales tax involved, whichever is greater.