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The Finance Act, 1975

( ACT NO. III Of 1975 )

Amendment of Act III of 1951
7. The following amendments shall be made in the Sales Tax Act, 1951 (III of 1951), namely:-
 
 
 
 
(1) throughout the Act, unless otherwise specified,-
 
 
 
 
(a) for the words “Commissioner of Sales Tax” wherever occurring the words “Commissioner of Taxes” shall be substituted;
 
 
 
 
(b) for the words “Assistant Commissioner” and “Assistant Commissioner of Sales Tax” wherever occurring the words “Joint Commissioner” and “Joint Commissioner of Taxes” shall respectively be substituted; and
 
 
 
 
(c) for the words “Sales Tax Officer” wherever occurring the words “Deputy Commissioner of Taxes” shall be substituted;
 
 
 
 
(2) in section 2,-
 
 
 
 
(a) for clause (1), the following shall be substituted, namely:-
 
 
 
 
“(1) “Appellate Joint Commissioner” means a person exercising the powers of an Appellate Joint Commissioner of Taxes under section 5;”;
 
 
 
 
(b) after clause (4), the following new clause (4A) shall be inserted, namely:-
 
 
 
 
“(4A) “Deputy Commissioner of Taxes” means a person exercising the powers of a Deputy Commissioner of Taxes under section 5;”;
 
 
 
 
(c) for clause (7), the following shall be substituted, namely:-
 
 
 
 
“(7) “Inspecting Joint Commissioner” means a person exercising the powers of an Inspecting Joint Commissioner of Taxes under section 5;”;
 
 
 
 
(d) clause (10) shall be omitted;
 
 
 
 
(e) clause (17) shall be omitted;
 
 
(3) in section 3,-
 
 
 
 
(a) in sub-section (1), clauses (c) and (e) shall be omitted;
 
 
 
 
(b) in sub-section (3), clauses (iii) and (iv) shall be omitted;
 
 
 
 
(c) in sub-section (4), the comma, brackets, and letter “, (c)” shall be omitted;
 
 
 
 
(d) for sub-section (7), the following shall be substituted, namely:-
 
 
 
 
“(7) If any person other than the manufacturer or producer or importer or exporter hereinbefore mentioned acquires from or against any one of these persons the right to sell any goods as a result of the operation of law, the sale of such goods by him shall be taxable as if made by the manufacturer or producer or importer or exporter, as the case may be, and the person so selling shall be liable to pay the tax.”;
 
 
 
 
(4) for section 4, the following shall be substituted, namely:-
 
 
 
 
“4. Tax not payable on certain transactions.-Notwithstanding anything contained in section 3, the tax shall not be payable on goods purchased in taxable territories or on goods imported into the taxable territories by the manufacturer to whom a licence is issued under the proviso to sub-section (2) of section 8.
 
 
 
 
4A. Tax credit. There shall be given credit of the amount of tax paid at the time of purchase or import of goods by the licensed manufacturer or producer or importer, as the case may be, under the provisions of section 3 if such goods are partly manufactured goods and are actually used in the manufacture or production of goods which are subject to tax.”;
 
 
 
 
(5) in section 5,-
 
 
 
 
(a) for sub-section (1) , the following shall be substituted, namely:-
 
 
 
 
“(1) Every Commissioner of Taxes, Appellate Joint Commissioner of Taxes, Inspecting Joint Commissioner of Taxes, Deputy Commissioner of Taxes and Tax Recovery Officer under the Income- tax Act, 1922 (XI of 1922) shall exercise the powers of a Commissioner
 
 
of Taxes, Appellate Joint Commissioner of Taxes, Inspecting Joint Commissioner of Taxes, Deputy Commissioner of Taxes and Tax Recovery Officer, respectively, under this Act and in relation to the same area and cases as he exercises under the Income-tax Act, 1922.”;
 
 
 
 
(b) after sub-section (3), the following new sub-section (4) shall be added, namely:-
 
 
 
 
“(4) References in any Act, Ordinance, Regulation, Rule, Order, bye-law, deed, document or any other instrument of whatever nature to Commissioner of Sales Tax, Assistant Commissioner of Sales Tax and Sales Tax Officer shall, with their grammatical variations, except where the context otherwise requires, be construed as references respectively to Commissioner of Taxes, Joint Commissioner of Taxes and Deputy Commissioner of Taxes; and any such Act, Ordinance, Regulation, rule, Order, bye-law, deed, document or any other instrument of whatever nature shall have effect accordingly.”;
 
 
 
 
(6) in section 8, in sub-section (1), for the word “five” the word “fifty” shall be substituted;
 
 
 
 
(7) section 9 shall be omitted;
 
 
 
 
(8) in section 10, in sub-section (1), the words “and every licensed whole-seller” shall be omitted;
 
 
 
 
(9) in section 12, for sub-section (1), the following shall be substituted, namely:-
 
 
 
 
“(1) Subject to the provisions of sub-section (4) of section 3, every person liable to pay tax under clause (a) and clause (aa) of sub-section (1) of section 3 shall, in such manner as may be prescribed, pay the tax leviable under this Act before the end of the calendar month next succeeding the month in which the goods in respect of which tax is payable were sold.”;
 
 
 
 
(10) in section 19, in sub-section (1), the words “and every licensed whole-seller” shall be omitted;
 
 
(11) in section 20, the words “or by a licensed wholesaler” shall be omitted;
 
 
 
 
(12) in section 21, the words “not licensed under section 9” shall be omitted;
 
 
 
 
(13) in section 23, in sub-section (1A), the words “or licensed whole-seller” shall be omitted;
 
 
 
 
(14) in section 27, for sub-section (1) the following shall be substituted, namely:-
 
 
 
 
“(1) Where partly manufactured goods are purchased by a manufacturer or producer not licensed under section 8 and tax has been paid on the goods on importation or on any previous sale refund or credit of the tax so paid shall not be made to such manufacturer or producer.”;
 
 
 
 
(15) in section 29, the words “or a licensed whole-seller” shall be omitted;
 
 
 
 
(16) in section 31, the words “or a licensed whole-seller” shall be omitted.

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Ministry of Law, Justice and Parliamentary Affairs