Company : Sol Infotech Pvt. Ltd. Website : www.courtkutchehry.com Meghalaya Value Added Tax Act, 2003 02 of 2005 CONTENTS CHAPTER 1 :- Preliminary 1. Short Title, Extent And Commencement 2. Definitions CHAPTER 2 :- Incidence And Levy of Tax 3. Incidence Of Tax 4. Tax Payable By A Dealer Or A Person 5. Levy Of Value Added Tax On Goods Specified In The Schedules Appended To This Act 6. Levy Of Tax On Purchases 7. Levy Of Tax On Containers And Packing Materials 8. Exemptions And Zero-Ratings 9. Output Tax 10. Input Tax 11. Input Tax Credit 12. Reverse Tax Credit 13. Net Tax Credit 14. Input Tax Credit Exceeding Tax Liability 15. Adjustment Of Input Tax Credit 16. Burden Of Proof 17. Composition Of Tax 18. Net Tax Payable By The Dealer 19. Stock Brought Forward During Transition 20. Credit And Debit Notes CHAPTER 3 :- Liability In Special Cases 21. Liability To Pay Tax In Case Of Death 22. Certain Agents Liable To Tax For Sales On Behalf Of Principal 23. Liability Of Partners 24. Amalgamation Of Companies CHAPTER 4 :- Taxing, Appellate And Revisional Authorities And Enforcement Branch 25. Sales Tax Authorities 26. Delegation Of Commissioners Powers 27. Appellate Authority 28. Revisional Authority 29. Appellate Tribunal 30. Enforcement Branch CHAPTER 5 :- Registration of Dealer And Demand of Security etc 31. Compulsory Registration Of Dealers 32. Voluntary Registration Of Dealer 33. Security To Be Furnished 34. Suspension Of Certificate Of Registration CHAPTER 6 :- Return And Payment of Tax, Assessment Etc 35. Periodical Return And Payment Of Tax And Interest 36. Return Defaults 37. Collection Of Tax Only By Registered Dealers 38. Rounding Off Of The Amount Of Tax Or Penalty 39. Scrutiny Of Return 40. Interest Payable By Dealer 41. Interest On Refund 42. Power To Withhold Refund In Certain Cases 43. Exemption Of Certain Sales And Purchase 44. Levy Of Tax On Sale Of Non-Vatable Goods 45. Assessment 46. Assessment Without Prejudice To Prosecution For Any Offence 47. Assessment Of Dealers Dealing In Goods Other Than Vatable Goods 48. Payment Of Tax And Penalty 49. Refund 50. Provisional Refund 51. Rectification Of Assessment 52. Tax Audit 53. Self Assessment 54. Provisional Assessment 55. Audit Assessment 56. Assessment Of Dealers Who Fails To Get Himself Registered 57. No Assessment After Five Year 58. Turnover Escaping Assessment 59. Exclusion Of Time Period For Assessment 60. Special Mode Of Recovery 61. Collection Of Tax By Dealer 62. Sales Not Liable To Tax 63. Tax To Be First Charge On Property 64. Period Of Limitation Of Recovery For Tax CHAPTER 7 :- Appeal, Revision And Review 65. Appeal Against Assessment 6 6 . S u o Moto Revision And Revision By Commissioner Upon Application 67. Review Of Order 68. Appeal To The High Court 69. Appeal To The Appellate Tribunal 70. Revision To High Court 71. Hearing Of Revision And Review By The High Court 72. Burden Of Proof 73. Persons Appointed Under Section 25 And Members Of Appellate Tribunal To The Public Servants 74. Indemnity Of Government Servant CHAPTER 8 :- Measures to Regulate Transport of Goods 75. Restriction On Movement Of Goods 76. Erection Of Check Posts 77. Transit Of Goods By Road Through The State And Issue Of Transit Pass 78. Automation 79. Power To Collect Statistics 80. Registration Of Transporters 8 1 . Maintenance Of Accounts By Transporter, Carrier Or Transporting Agent 82. Inspection, Search And Seizure Of Records Or Documents 83. Survey CHAPTER 9 :- Accounts, Inspection, Search and Seizure and Power to Call For Information 84. Inspection, Search And Seizure 85. Disposal Of Seized Goods 86. Audit Of Accounts 87. Dealer To Declare The Name Of His Business Manager 88. Compulsory Issue Of Tax Invoice, Cash Memo Or Bill 89. Electronic Record CHAPTER 10 :- Offences And Penalties 90. Offences And Penalties 91. Offence By Transporter 92. Offences By Companies 93. Cognizance Of Offences 94. Imposition Of Fine 95. Investigation Of Offences 96. Compounding Of Offences 97. Remission CHAPTER 11 :- Miscellaneous 98. Power Of Taking Evidence On Oath, Etc 99. Returns Etc. To Be Confidential 100. Disclosure Of Information Required Under Section 79 And Failure To Furnish Information Or Return Under That Section 101. Publication And Disclosure Of Information Respecting Dealers And Other Persons In Public Interest 102. Statement To Be Furnished By Dealer, Transporter, Owner Or Lessee Of Warehouse, Etc 103. Information To Be Furnished By Dealers Regarding Changes Of Business 104. Statements, Accounts Or Declarations To Be Furnished By Dealers 105. Information To Be Furnished By Dealers In Respect Of Transfer Of Goods Otherwise Than By Way Of Sale 106. Special Provisions Relating To Deduction Of Tax At Source 107. Application Of The Meghalaya Land Revenue Regulation Act For Recovery Of Tax Recoverable As Arrear Of Land Revenue 108. Bar To Proceeding In Civil Courts 109. Power Of State Government To Prescribed Rates Of Fees 110. Application Of Section 4 And 12 Of Limitation Act 111. Appearance Before Any Authority In Proceedings 112. Power Of State Government To Amend Schedules 113. Power Of State Government To Make Rules 114. Power Of State Government To Remove Difficulties 115. Clearance Certificate CHAPTER 12 :- Transition, Repeal and Savings 116. Transition 117. Repeal And Savings Meghalaya Value Added Tax Act, 2003 02 of 2005 AN ACT To provide for an consolidate the Laws relating to levy of Value Added Tax on Sales and Purchases of goods in the State of Meghalaya. Be it enacted by the Legislative of the State of Meghalaya in the Fifty fourth year of Republic of India as follows-- 1. Published in the Gazette of Meghalaya Extraordinary No. 25, Dated 4th March, 2005 vide Notification No. LL.(B) 53/2002/314. CHAPTER 1 Preliminary 1. Short Title, Extent And Commencement :- *(1) This Act may be called the Meghalaya Value Added Tax Act, 2003. (2) It extends to the whole of Meghalaya. (3) It shall come into force on such date as the State Government may by Notification in the official Gazette appoint and different dates may be appointed for different provisions. *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005, vide Notification No. LL.(B)* 53/2002/402 dated 30th April, 2005. Published in the Gazette of Meghalaya Extraordinary No. 48, dated 30th April, 2005. 2. Definitions :- In this Act, unless the context otherwise requires-- (i) "Act" means the Meghalaya value Added Tax Act 2003; (ii) "Appellate Authority" means the authority authorised by the State Government under Section 27; (iii) "Appellate Tribunal" means the Tribunal authorised by the State Government under Section 29; (iv) "Appointed Day" means the day on which the Act comes into force; ( v ) "Assistant Commissioner" means Assistant Commissioner of Taxes appointed under sub-section (1) of Section 25 or deemed to have been appointed under Section 116; (vi) "Assessee" means any person by whom tax or any other sum of money is payable under this Act and includes every person in respect of whom any proceedings under this Act have been taken for the assessment of tax payable by him; (vii) "Assessing Authority" means any person not below the rank of Superintendent of Taxes authorised by the Government, or by any authority empowered by the Government to make any assessment under this Act; (viii) "Board" means Meghalaya Board of Revenue constituted under the Meghalaya Board of Revenue Act or under any statutory modification or re-enactment thereof; (ix) "Business" includes-- (i) any trade, commerce or manufacture or execution of work contract or any adventure or concern in the nature of trade, commerce, manufacture, wherther or not such trade, commerces, manufacture or execution of work contract or adventure or concern is carried on with the motive to make gain or profit and whether or n o t any gain or profit across from such trade, commerce, manufacture, execution of works contractor adventure or concern and; (ii) any transaction in connection with or incidental or ancillary to such trade, commerce, manufacture, execution of work contract, adventure or concern; (x) "Business Premises" means any place where a dealer or a transporter purchases, sells, transports, books or delivers goods and include such place where he stores, processes, produces or manufactures goods or keeps books of accounts, any vehicles, or vessels or any other carrier where in the goods are stored as used for transporting the goods; (xi) "Commissioner" means Commissioner of Taxes appointed under sub-section (1) of Section 25 or deemed to have been appointed under Section 116; (xii) "Capital Goods" [in relation to a registered dealer engaged in manufacture means plant and machinery and equipments which are accounted for as fixed assets or Capital assets in the books of account of such dealer]*; (xiii) "Casual Trader" means a person who whether as principal agent or any other capacity, has occasional transactions involving buying, selling, supplying or distributing goods in the State. Whether for cash or for deferred payment, or for commission, remuneration or other valuable consideration; (xiv) "Declared goods" means the goods declared to be of special importance in inter-State trade or commerce under Section 14 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956); (xv) "Deputy Commissioner" means Deputy Commissioner of Taxes appointed under sub-section (1) of Section 25 or deemed to have been appointed under Section 116; (xvi) "Dealer" means any person who carries on (whether regularly or otherwise) for cash or for commission or for remuneration or for deferred payment or for other valuable consideration, within the State of Meghalaya, the business of-- (a) transferring property in goods otherwise than in pursuance of any contract; or (b) transferring property in goods (whether as goods or in some other form) involved in the execution of any works contract; or (c) delivering goods on hire-purchase or any system of payment in installment; or (d) transferring the right to use goods for any purpose (whether or not for specified period); or supplying by way of or as part any service or in any manner of goods being food or any other article for human consumption or any drink (whether or not intoxicating); or (e) being a association (whether incorporated or not) or body of persons, supplying to its members any goods; and Dealer also includes-- (f) a local authority, a body corporate, a company, any co-operative society or other society or a club, a firm, a Hindu undivided family or other association of persons which carries on such business; (g) a commission agent, a broker, a factor, a del crudere agent, an auctioneer, a mercantile agent, by whatever name called who carries on business within the State; (h) an agent of a non-resident dealer or a local branch of a firm or a company or an association of person, whether incorporated or not, situated outside the State carrying on such business within the State; and (i) a department or undertaking or enterprise of the Government of any State or Union Territory or of the Government of India. (xvii) "Goods" means all kinds of movable property other than newspapers, actionable claims, stock shares, or securities and includes livestock, all materials, articles, commodities involved in the execution of any works contract, lease or hire purchase or those to be used in fitting out, improvement or repair of movable property; (xviii) "Government" means the State Government; (xix) Input Tax" means tax payable by the purchasing dealer to the seller; (xx) "Manufacture" with all its grammatical variation and cognate expressions means producing, making, extracting, altering, ornamenting, finishing, assembling or otherwise processing, treating or adapting any goods but does not include any such processor mode of manufacture as may be prescribed; (xxi) "Non-resident Dealer" means a dealer who effects purchases or sales of any goods in Meghalaya but who has no fixed of business or residence in Meghalaya; (xxii) "Official Gazette" means the Meghalaya Gazette; (xxiii)"Output Tax" in relation to any person means that the tax charged or chargeable in respect of a sale or supply of goods made by the person; (xxiv) "Persons" includes individual, a joint family, a company, a firm, an association of persons or a body of individuals, whether incorporated or not; the Central Government or the State Government or the Government of any other State or Union Territory in India and a local authority; (xxv) "Prescribed" means prescribed by the rules made under this Act; (xxvi) "Purchase" means any transfer of property in goods to the person making the purchase for cash or deferred payment or other valuable consideration but does not includes a transfer by way of mortgage, hypothecation, charge or pledge; (xxvii) "Purchase Price" means the amount of valuable consideration paid or payable by a person for the purchase of any goods, less any sum allowed as cash discount, commission or commercial rebates granted at the time of delivery of such goods but including cost of freight or cost of delivery or the cost of installation insurance charges or any sum charged for anything done by the seller in respect of the goods at the time of, or before delivery thereof, other than interest, if separately charged; (xxviii) "Registered Dealer" means a dealer registered under this Act; (xxix) "Reverse Tax" means that portion of input tax of the goods for which credit has been availed but such goods are used subsequently for any purpose other than resale or manufacture of taxable goods or execution of work contract or used as containers or packing materials within the State; (xxx) "Resale" means a resale of purchased goods-- (i) in the same form in which they were purchased; or (ii) without using them in the manufacture of any goods; or (iii) without doing anything to them, which amounts to, or results in a manufacture; (xxxi) "Rules" means the rules framed under this Act; (xxxii) "Sale" with all its grammatical variations and cognate expression means every transfer of the property in goods, other than by way of mortgage, hypothecation, charge or pledge, by one person to another in the course of trade or business for cash, deferred payment or other valuable consideration and includes-- (a) transfer, otherwise than in pursuance of a contract, of property in goods for cash, deferred payment or other valuable consideration; (b) transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract; (c) delivery of goods on hire purchase or any other system of payment by installments; (d) a transfer of the right to use any goods for any purpose, whether or not for specified period, for cash, deferred payment or any other valuable consideration; (e) a transfer of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or any other valuable consideration; (f) a supply, by way of or as part of any service or in any other manner whatsoever, of goods being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service is for cash, deferred payment or other valuable consideration; (g) a transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration, and such transfer, delivery or supply of any goods shall be deemed to be a sale of those goods by the person making the transfer, deliver or supply and purchase of those goods by the person to whom such transfer, delivery or supply is made, but does not include a mortgage, hypothecation, charge or pledge. Explanation (a) A sale or purchase of goods shall not be deemed to have taken place inside the State if the goods are sold-- (i) in the course of inter-state trade or commerce; or (ii) outside the State of Meghalaya; or (iii) in the course of import or export of goods; (b) Where there is a single contract of sale or purchase of goods situated at more places than one, the provisions of this Explanation shall apply as if there were separate contract in respect or the goods at each of such places; (xxxiii) "Sale Price" means the amount of valuable consideration paid or payable to a dealer for the sale or supply of goods, less any sum allowed as cash discount according to ordinary trade practice, but including any amount charged for anything done by the dealer with or in respect of the goods at the time of or before delivery thereof other than; (i) the cost of freight or delivery where such cost is separately charged; or (ii) the amount representing the cost of labour [and services]* in the execution of any works contract, where such cost [*] shall be determined on the basis of specification detailed to that effect in the deed of contract or in the absence of such specification on the basis of dealers accounts produced to the Commissioners satisfaction or in case the Commissioner is not satisfied with either of the aforesaid, in the manner as may be prescribed; or (iii) amount of tax paid or payable by the purchaser provided that where the amount of tax is not separately indicated in the tax invoice, the amount of tax shall be calculated by multiplying the sale price inclusive of tax by the "Tax fraction" which shall be calculated in accordance with formula--r / r + 100 where r is the percentage rate of tax applicable to the sale; (xxxiv) "State" means the State of Meghalaya; (xxxv) "Tax" means tax payable under this Act; (xxxvi) "Tax Invoice" means a document listing the goods sold with the price, quantity, value and VAT due issued by a taxable person to another taxable person; (xxxvii) Tax Point means the date on which a taxable person is required to account for the tax on the sale made by him; (xxxviii) Taxable Goods" means goods taxable under this Act; (xxxix) "Taxable Person" means a person who is registered or is liable to be registered for VAT and liable to pay tax under this Act; (xl) Taxable Sale" means sale which is taxable under the provisions of this Act; (Xli) Transporter" means any person who for the purposes of or in connection with or incidental to or in the course of his business transports or causes to transport goods, or holds goods in custody for delivery to any person after transportation and includes railway, shipping company, air cargo terminal and courier service; (xlii) "Turnover of Purchases" means the aggregate of the amount of purchase price paid and payable by a dealer in respect of any purchase of goods made by him during a given period, after deducting the amount of-- (a) purchase price, if any, refunded to the dealer by the seller in respect of any goods purchased from the seller and returned to him within the prescribed period; and (b) deposit, if any, refund in the prescribed period to the dealer by the seller in respect of any goods purchased by the dealer; (xliii) "Turnover of Sales" means the aggregate of the amount of sale price received and receivable by a dealer in respect of any sales of goods made during a given period after deducting the amount of-- (a) sale price, if any, refunded by the seller, to a purchaser, in respect of any goods purchased and returned by the purchaser within the prescribed period; and (b) deposit, if any, refunded in the prescribed by the seller to a purchaser in respect of any goods sold by the dealer; (c) and includes, where the Registration Certificate is cancelled, the amounts in respect of sale made before the date of the cancellation order received or receivable after such date; (xliv) "Value Added Tax" means a tax on sales or purchases levied under this Act; (xlv) "Works Contract" means and includes any agreement for carrying out for cash or for deferred payment or for any other valuable consideration the building construction, manufacture, processing, fabrication, erection, installation, laying, fitting out, improvement, modification, repair or commissioning of any movable or immovable property; (xlvi) "Year" means financial year; and (xlvii) "Zero rating" means Zero rate of tax is to be imposed on the commodities against which rebate should be given for input taxes paid. *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. CHAPTER 2 Incidence And Levy of Tax 3. Incidence Of Tax :- (1) Liability- Subject to other provisions of this Act, every dealer- (a) whose turnover during the year immediately preceding the commencement of this Act-- (i) exceeded the taxable quantum; or (ii) liable to pay tax under any of the laws repealed by this Act or the Central Sales Tax Act, 1956. (b) to whom clause (a) does not apply and-- (i) whose turnover calculated from the commencement of any year first exceeds within such year the taxable quantum; or (ii) who has become liable to pay tax under the Central Sales Tax Act, 1956; or (iii) who is registered as a dealer under the Central Sales Tax Act, 1956 or under this Act at any time after the commencement of this Act; shall be liable to pay tax in accordance with the provisions of this Act. (2) Date of liability-- The dealer shall be liable to pay tax on all sales effected by him and-- (a) in case of clause (a) of sub-section (i) with effect from the date of commencement of this Act; (b) in case of sub-clause (i) of clause (b) of sub-section (1) with effect from the date immediately following the day on which his turnover calculated from the commencement of the year first exceeds the taxable quantum; (c) in case of sub-clause (ii) or (iii) of clause (b) of sub-section (1) with effect from the date on which he become so liable or date of registration- under this Act, whichever is earlier. (3) Continuation of liability-- Every dealer who has become liable to pay tax under this Act, shall continue to be so liable until the expiry of three consecutive years during which his turnover has remained below the taxable quantum and on the expiry of such period his liability to pay tax shall cease : Provided that any dealer whose liability to pay tax under this Act, ceases, may apply for the cancellation of his certificate of registration, and on such cancellation, his liability shall cease. (4) Re-commencement of liability-- Every dealer whose liability to pay tax under this Act, has ceased under sub-section (3) or whose certificate or registration has been cancelled, shall, if his turnover calculated from the commencement of any year, including the year in which the registration has been cancelled, again exceeds the taxable quantum on any day within such year, be liable to pay such tax with effect from the date immediately following the day on which his turnover again exceeds the taxable quantum, on all sales effected by him after that day. (5) Taxable quantum --For the purpose of this Act, "taxable quantum" means in relation to any dealer who-- (a) Manufactures or imports for sale any goods into Meghalaya on his own behalf or on behalf of his principal .....Nil..... (b) is engaged in any other business other than clause(a) above....................................Rs.1 (one)lakh. Explanation- For the purpose of computation of tax quantum, the turnover of sales effected by a sale dealer shall be taken into account irrespective of whether such sales are taxable under this Act or not. (6) A dealer who deals exclusively in one or more classes of goods specified in the Schedule to be notified under this Act shall not be liable to pay any tax under this Act for the purpose of calculating the gross turnover to determine the liability to pay tax under the Act-- (a) except as otherwise expressly provided, the turnover of all sales or as the case may be, the turnover of all purchases shall be taken, whether such sales or purchases are taxable or not; and (b) the turnover shall include all sales and purchases made by a dealer on his own account and also on behalf of principals whether disclosed or not. 4. Tax Payable By A Dealer Or A Person :- Subject to the provision of this Act and to any rules or notification there shall be paid by every dealer or, as the case may be every person who is liable to pay tax under this Act, the tax or taxes leviable in accordance with the provisions of this Act. 5. Levy Of Value Added Tax On Goods Specified In The Schedules Appended To This Act :- (1) Subject to the provision of this Act, and Rules, there shall be levied a tax on the turnover of sales of goods specified in [Schedule II, III, and IV appended to this Act at every point of sale of such goods within the State at the rate specified therein]*. (2) Taxable turnover of sales in relation to a dealer liable to pay tax on sale of goods under sub-section (1) of Section 3 shall be part of the gross turnover of sales during any period which remains after deducting therefrom; (a) sales of goods declared as [exempted under Section 8(i)(a)]*; (b) sales of goods which are shown to the satisfaction of the Commissioner to have taken place-- (i) in the course of inter-state trade or commerce; or (ii) out side Meghalaya; or (iii) in the course of the import of the goods into or export of the goods out of the territory of India; Explanation-- Section 3, 4 and 5 of the Central Sales Tax Act, 1956 shall apply for determining whether or not a particular sale or purchase has taken place in the manner indicated in sub-clause (i) sub-clause (ii) or sub-clause (iii); (c) in case of turnover of sales in relation to works contract, the charges towards labour, services and other like charges and subject to such conditions as may be prescribed : Provided that in the cases where the amount of charges towards labour, services and other like charges in such contract are not ascertainable from the terms and conditions of the contract, the amount of such charges shall be calculated [on the basis of such percentages of the value of works contract as specified in Schedule IV A appended to this Act]* ; (d) such other sales on such conditions and restrictions as may be prescribed. *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 6. Levy Of Tax On Purchases :- *[Every dealer who in the course of his business purchases any taxable goods-- (i) from a registered dealer in the circumstances in which no tax under Section 5 is payable by that registered dealer on the sale price of such goods; or (ii) from any other person, shall be liable to pay tax on the purchase price of such goods, if after such purchase, the goods are not sold within the State of Meghalaya or in the course of inter- State trade and commerce or in the course of export out of the territory of India, but are-- (a) sold or disposed of otherwise; or (b) consumed or used in the manufacture of goods declared to be exempt from tax under this Act; or (c) after their use or consumption in the manufacture of goods, such manufactured goods are disposed of otherwise than by way of sale in the State of Meghalaya or in the course of inter-state trade and commerce or export out of the territory of India; or (d) used or consumed otherwise, and such tax shall be levied at the same rate at which tax under Section 5 would have been levied on the sale of such goods within the State on the date of such purchase.]* *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 7. Levy Of Tax On Containers And Packing Materials :- Where any goods packed in any container or packing materials in which such goods are packed shall be deemed to have been sold or purchased along with the goods and the tax under Section 5 or Section 6 shall be levied on the sale or purchase of such container or packing material at the rate of tax, if any, applicable to the sale, or as the case may be, the purchase of the goods itself : Provided that no tax under Section 5 or Section 6 shall be levied where the container or packing material is sold or purchased along with the goods declared as exempted from tax under this Act. 8. Exemptions And Zero-Ratings :- [(1) (a) The sale of goods listed in the [Schedule I appended to this Act]* shall be exempt from tax subject to conditions and exceptions set out therein. (b) Supplies between Special Economic Zones. (2) The following shall be zero rated sales for the purpose of this Act and shall be eligible for input tax credit-- (a) export from India; (b) sales to Special Economic Zones; (c) supplies from Domestic Tariff Area to Export Oriented Unit / Electronic Hardware Technology Park/Software Technology Park units for the purpose of export only. *.As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 9. Output Tax :- (1) Output tax in relation to registered dealer means the tax payable under this Act in respect of any sale of goods by that dealer in the course of his business. (2) Subject to the provisions of Section 11, a dealer shall be liable to pay the output tax under this Act which shall be levied on the taxable turnover at the rates and subject to such conditions as may be prescribed from time to time. 10. Input Tax :- Input tax in relation to a registered dealer means the tax charged under this Act by the selling dealer to such dealer on the sale to him of any goods for resale or use in manufacturing or processing of goods for sale. 11. Input Tax Credit :- *[(1) Subject to other provisions of this Section, Input Tax Credit shall be allowed to a registered dealer for purchase of taxable goods, other than goods specified in Schedule V appended to this Act, made within the State of Meghalaya from a registered dealer holding a valid certificate of registration and which are intended for the purpose of-- (a) sale or resale by him in the State ; or (b) sale in the course of inter-state trade or commerce; or (c) sale in the course of export out of territory of India; or (d) use as capital goods or as raw materials in the manufacture and processing of taxable goods, other than the goods specified in Schedule V appended to this Act, intended for sale of the nature referred to in clauses (a), (b) and (c) above: Provided that no person shall be entitled to input tax credit on the following types of capital goods; (i) Civil structure and immovable goods or properties; (ii) Building materials used in construction activity (Tax credit will be available to contractors for their transactions); (iii) Vehicles of all types; (iv) Office equipments, fixed assets or capital goods, which are not meant for use in the manufacturing activity; (v) Furniture fixture including electrical fixture and fittings; (vi) Capital goods purchased prior to the appointed day (date of commencement of this Act); or (e) used as containers or materials for packing of taxable goods, other than the goods specified in Schedule V, intended for sale of the nature referred to in clause (1)(a), (b) and (c) above: Provided further that if purchases are used partially for the purpose specified in this sub-section, input tax credit shall be allowed proportionate to the extent they are used for the purpose specified in this sub-section.]* (2) A registered dealer who intends to claim input tax credit under sub-section (I), shall for the purpose of determining the amount of input tax credit, maintain accounts, evidence and such other records as may be prescribed in respect of the purchases and sales made by him in Meghalaya. (3) Subject to other provisions of this sub-section a registered dealer who has claimed input tax credit on his purchases and intends to sell goods in Meghalaya, will get his input tax credit reversed on the date of transfer of such goods to such other dealer and shall issue a certificate, as may be prescribed, in favour of such dealer certifying the amount of input tax credit against purchases of such goods or purchases of input thereof, as the case may be, in Meghalaya and the agent shall be entitled to get the credit of the same. (4) No input tax credit under this Section shall be allowed to a registered dealer against his purchases unless the amount of tax has been separately charged and shown in the tax invoice issued to him by a registered dealer from whom purchases of such goods have been made. [(5) Input tax credit on capital goods admissible under this Section shall commence from the date of commencement of commercial productions and shall be adjusted against tax payable on output in thirty six equal monthly instalments : Provided further that no person shall be entitled to input tax credit on capital goods if such person is the second and subsequent purchaser of such capital goods.]* (6) Subject to sub-section (7) an input tax credit cannot be claimed by the registered dealer [until the tax period in which the dealer receives the tax invoice in original in the prescribed form evidencing the amount of input tax credit.]* (7) Where a registered dealer fails to produce the original tax invoice evidencing the input tax paid, the Commissioner may, subject to such restrictions and conditions as may be prescribed, allow an input tax credit for the period in which the credit arises if the Commissioner is satisfied. (a) that the failure to produce tax invoice is not due to any fault of the dealer, and (b) that the amount of input tax claimed by the registered dealer is correct. (8) Subject to other sub-sections of this Section, input tax credit referred to in sub-section (1) in relation to a period shall be determined as follows-- That the input tax credit is the aggregate of input tax paid or payable by the dealer in relation to a period, less-- (i) input tax paid or payable in respect of goods returned or rejected by him during such period; (ii) input tax paid or payable in respect of goods taxable under this Act or inputs used for manufacturing of such goods, as the case may be, disposed of otherwise than by way of sale. (9) Notwithstanding anything contained in any sub-section of the Section-- (a) the amount of input tax credit shall not include tax paid or payable in other States or Union Territories on goods brought into Meghalaya from outside the State. (b) no input tax credit shall be allowed against tax paid or payable on goods remaining unsold at the time of stoppage or closure of business and if a dealer has already taken any input tax credit against purchase of such stock of goods there shall be a reverse tax credit on the date of stoppage or closure of such business. (c) no input tax credit on tax paid or payable in Meghalaya on purchase of goods or inputs used in manufacturing of goods in Meghalaya and subsequently sent to other States or Union Territories otherwise than by way of sale shall be available : Provided that if a dealer has already taken input tax credit either in full or in part, there shall be a reverse credit against each such transfer in the manner as may be prescribed : [Provided that input tax credit may be allowed on input tax paid in excess of the prevailing rate of CST on such inputs.]* (d) no input tax credit shall be allowed against tax paid or payable on such purchases and under such terms and conditions as may be prescribed. (e) for the purpose of determining the amount of input tax to be reversed under this Section any one of the methods as may be prescribed will be applied. [(f) claim and settlement of input tax credit shall be completed within a period of six months from the date of the claim.]* *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 12. Reverse Tax Credit :- If goods are purchased intended for use specified in sub-section (1) of Section 11 and are subsequently used, fully or partly, for purpose other those specified under the said sub-section, the input tax credit availed at the time of such purchase, calculated in such manner as may be prescribed, shall be reduced from the tax credit for the period during which the said utilization otherwise has taken place. 13. Net Tax Credit :- The net tax credit to which a registered dealer is entitled shall be determined by the following formula, namely- Net tax credit = A + B - C Where, A = the amount of input tax credit the dealer is entitled to under sub-section (1) of Section 11. B = outstanding credit brought forward as determined under clause (1) of Section 14 from the previous period or under sub-section (2) of Section 19. C= reverse tax credit as determined under Section 12. 14. Input Tax Credit Exceeding Tax Liability :- (1) If a registered dealers (other than an exporter) input tax credit determined under Section 11 for a period exceeds tax liability for that period the excess may be set off against any outstanding tax under this Act. (2) The excess input tax credit after adjustment under sub-section (1) of Section 11 may be carried forward as an input tax credit to [subsequent period or periods but not carried beyond the second financial year after which the excess amount shall be refunded to the dealer]*. *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 15. Adjustment Of Input Tax Credit :- Where any purchaser, being a registered dealer, has been issued with a credit note or debit note in terms of sub-section (1) of Section 20 or if he returns or rejects goods, purchased, as a consequence of which, the input tax credit availed by him in any period in respect of which the purchase of goods relates becomes less or excess, he shall compensate such less credit or, excess credit by adjusting the amount of tax credit allowed to him in respect of the tax period in which the credit note or debit note has been issued or goods are returned subject to conditions as may be prescribed. 16. Burden Of Proof :- In respect of any sale or purchase effected by a dealer, the burden of proving that he is liable to pay tax under Section 6, Section 7 or that he is eligible to input tax credit under Section 11 shall be on him. 17. Composition Of Tax :- (1) Notwithstanding anything contained in this Act, the Government may, by notification published in the Official Gazette and subject to such conditions and restrictions, if any, as may specify therein, permit any dealer, who is engaged in the business of selling at retail any goods or merchandise and whose gross turnover calculated from the commencement of any year exceeds within such year, the threshold of such turnover but does not exceed five lakhs rupees, to pay at his option, in lieu of the amount of tax payable under the provisions of this Act, an amount by way of composition calculated at the rate of 1% of such gross turnover. (2) For the purpose of this Section a dealer will be considered to be engaged in the business of selling at retail of 9/10 of his turnover of sales consists of sales made to persons who are not dealers and if any questions arises as to whether any particular dealer is a retailer, then the officer in charge of the case shall refer the question to the Assistant Commissioner of Taxes (Appeals) who shall, after hearing the dealer if necessary, decide the question. (3) Nothing in this Section will apply to a dealer who is manufacturer or who is an importer or who has purchased any goods from a registered dealer whose sales of the said goods are not liable to tax under the provisions of this Act. (4) If on the basis of evidences reasonable grounds exist to believe that the dealer was not eligible to pay tax at a rate fixed under this sub-section, the prescribed authority may, impose a penalty equivalent to three times of the amount of tax arrived at after applying the rate notified under this sub-section to the gross turnover of the dealer computed on the basis of evidence available in this regard : Provided that no order under this sub-section shall be passed without giving the dealer a reasonable opportunity of being heard. (5) A dealer in whose case composition under this Section is in force, shall not-- (i) be entitled to any claim of input tax credit in respect of purchases of any goods by him in the State; (ii) Charge any tax in the invoice in respect of sales of goods made by him; and (iii) issue tax invoice to any other dealer who has purchased the goods from him. (6) The option so exercised under this Section shall be final for that year and shall continue for subsequent years until the dealer becomes ineligible, or withdraws his option in writing]*. *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 18. Net Tax Payable By The Dealer :- (1) For the purpose of calculating net tax payable by a registered dealer for a period, the input tax credit as determined under sub- section (1) of Section 11 shall be allowed set off against the tax payable by the registered dealer in respect of all taxable sales other than sales, as may be prescribed, made during that period. (2) Subject to provisions of Section 11, the net tax payable by a registered dealer for a period is to be calculated according to the following formula namely:-- A--B Where A is the aggregate of the tax payable by the registered dealer during the period and B is the total input tax credit for the period. (3) Every registered dealer shall pay in full net tax payable by him for the period at the time of filing his return in accordance with sub-section (4) of Section 35. 19. Stock Brought Forward During Transition :- (1) Within a period of [three months]* of commencement of this Act, all dealers [ ]* shall furnish a statement of their opening stock of raw materials, finished goods for resale and capital goods [purchased on or after 1.4.2004 and]* held on the date of commencement of this Act in such format and to such authorities as may be prescribed. (2) If the said opening stock of goods-- (a) has suffered tax under the Meghalaya Finance (Sales Tax) Act [and the Meghalaya Sales Tax Act]*; and (b) is intended to be used for the purposes specified in sub-section (1) of Section 11. The amount of tax suffered under the Act mentioned in clause (a) on such opening stock, determined in such manner and subject to such conditions and restrictions and up to the extent as may be prescribed, shall be credited to the dealer and can be availed as outstanding credit brought forward in terms of Section 13 in the first tax period after the commencement of this Act [and the entire balance shall be given as a set off within a period of six months]* : Provided that no tax credit under this Section shall be allowed unless- (a) the dealer has in his possession, sale vouchers issued by a dealer registered under the Meghalaya Sales Tax Laws mentioned under sub-section (2) against the purchases of the said goods; and (b) the amount of tax the goods have suffered at the first point is indicated separately on the said vouchers. (4) If the Commissioner is satisfied that a dealer-- (a) has claimed tax credit for stock for which he is not entitled for claiming tax credit as per the provisions of sub-section (2); or (b) has claimed excess tax credit than allowed under sub-section (2) the Commissioner may, after providing the dealer an opportunity of being heard direct him to pay a penalty equal to twice the amount of tax credit so claimed. *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 20. Credit And Debit Notes :- (1) Where a tax invoice has been issued and the amount shown as tax charged in the tax invoice exceeds the tax chargeable under this Act, in respect of that sale, the registered dealer making the sale shall provide the purchaser with a credit note containing the requisite particulars as prescribed. (2) Where tax invoice has been issued and the tax chargeable under this Act in respect of the sale exceeds the amount of tax charged in that tax invoice, the registered dealer making the sale shall provide the purchaser with a debit note containing the requisite particular as prescribed. (3) In case of goods returned or rejected by the purchaser, a credit note shall be issued by the selling dealer to the purchaser and a debit note will be issued by the purchaser to the selling dealer containing particulars of the transaction as prescribed. CHAPTER 3 Liability In Special Cases 21. Liability To Pay Tax In Case Of Death :- (1) Where a dealer, liable to pay tax under this Act, dies then-- (a) if the business carried on by dealer is continued after his death by his legal representative or any other person, such legal representative or other person shall be liable to pay tax including any penalty, sum forfeited and interest due from such dealer under this Act or under any earlier law, in the like manner and to the same extent as the deceased dealer; and (b) if the business carried on by the dealer is discontinued whether before or after his death, his legal representative shall be liable to pay out of the estate of the decreased, in the like manner and to the same extent as the deceased dealer would have been liable to pay if he had died, the tax including any penalty, sum forfeited and interest due from such dealer under this Act, or under any earlier law, whether such tax including any penalty, sum forfeited and interest has been assessed before his death but has remained unpaid, or is assessed after his death. (2) Where a dealer, liable to pay tax under this Act, is a Hindu Undivided family and the joint family property is partitioned amongst the various members or group of members, then each member or group of members shall jointly and severally liable to pay the tax including and penalty, sum forfeited and interest due from the dealer under this Act or under any earlier law, up to the time of the partition, whether such tax including and penalty, sum forfeited and interest has been assessed before partition but has remained unpaid, or is assessed after partition. (3) Where a dealer liable to pay tax under this Act, is a firm, and the firm is dissolved, then every person who is a partner shall be jointly and severally liable to pay to the extent to which he is liable under Section 23, the tax including any penalty, sum forfeited and interest due from the firm under this Act or under any earlier law, up to the time of dissolution, whether such tax including any penalty, sum forfeited and interest has been assessed before such dissolution but has remained unpaid or is assessed after dissolution. (4) Where a dealer, liable to pay tax under this Act, transfers or otherwise disposes of his business in whole or in part or effects any change in the ownership thereof, in consequence of which he is succeeded in the business or part thereof by any other person, the dealer and the person succeeding shall jointly and severally be liable to pay the tax including any penalty, sum forfeited and interest due from the dealer under this Act or under any earlier law, up to the time of such transfer, disposal or change, whether such tax including any penalty, sum forfeited and interest has been assessed before such transfer, disposal or change but has remain unpaid or is assessed thereafter. (5) Where the dealer, liable to pay tax under this Act-- (a) is the guardian of a ward on whose behalf the business is carried out by the guardian; or (b) is trustee who carry on the business under a trust for the beneficiary, then, if the guardianship or the trust is terminated, the ward or, as the case may be, the beneficiary shall be liable to pay the tax including any penalty, sum forfeited and interest due from the dealer up to the time of the termination of the guardianship or trust whether such tax including any penalty, sum forfeited and interest has been assessed before the termination of the guardianship or trust, but has remain unpaid, or is assessed thereafter. (6) Where a dealer is liable to pay tax under this Act, is succeeded in the business by any person in the manner described in clause (a) of sub-section (1) or in sub-section (4) then such person shall be liable to pay tax on the sales or purchases of goods made by him on and after the date of such succession add shall (unless he already holds a certificate of registration) within sixty days thereof apply for registration. 22. Certain Agents Liable To Tax For Sales On Behalf Of Principal :- (1) Where any person sells or purchases any taxable goods on behalf of his principal then such person and his principal shall both be jointly and severally liable to pay taxes on the turnover of such sales of purchases. (2) If the principal, on whose behalf commission agents have sold or purchased any goods, shows to the satisfaction of the Commissioner that the tax has been paid by the commission agents on such goods under sub-section (1), the principal shall not be liable to pay the tax against in respect of the same transaction. (3) Where a manager or agent of a non-resident dealer sells or purchases any goods on behalf of a non-resident dealer in State, then the non-resident dealer and the manager or agent residing in the State, shall be jointly and severally liable to pay tax on the turnover of such sales or purchases : Provided that, if the non-resident dealer shows to the satisfaction of the Commissioner that the tax payable in respect of such sale or purchases has been paid by the manager or agent residing in the State, then the non-resident dealer shall not be liable to pay tax in respect of the same transaction. 23. Liability Of Partners :- (1) Notwithstanding anything contained in the Indian Partnership Act, 1932 or any contract to the contrary, where any firm is liable to pay tax under this Act, the firm and each of the partners of the firm shall be jointly and severally liable for such payments and accordingly any notice or order under this Act may be served on any person who was a partner during the relevant time whether or not the firm has been dissolved and all the provisions of this Act shall apply accordingly. (2) Where any such partner retires from the firm, he shall be liable to pay tax, penalty, sum forfeited and interest remaining unpaid at the time of his retirement and any such amount due up to the date of retirement though un-assessed at that date. 24. Amalgamation Of Companies :- (1) When two or more companies are to be amalgamated by the order of a Court or the Central Government and the order is to take effect from a date earlier to the date of the order and any two or more such companies have sold or purchased and goods to or from each other in the period commencing on the date from which the order is to take effect and ending on the date of the order, then such transaction of sale and purchase will be included in the turnover of sales or of purchases of the respective companies and will be assessed to tax accordingly. (2) Notwithstanding anything contained in the said order for all of the purposes of this Act, the said two or more companies will be treated as distinct companies and will be treated as such for all periods up to the date of the said order and the registration certificates of the said companies will be cancelled, where necessary, with effect from the date of the said order. (3) Words and expressions used in this Section, but not defined, will have the respective meanings to those in the Companies Act, 1956. CHAPTER 4 Taxing, Appellate And Revisional Authorities And Enforcement Branch 25. Sales Tax Authorities :- (1) For carrying out the purpose of this Act, the State Government may by notification appoint a person to be the Commissioner of Taxes, together with such other persons to assist him as it thinks fit and may specify the area or areas over which they shall exercise jurisdiction. (2) Persons appointed under sub-section (1) shall exercise such powers as may be conferred and perform such duties as may be required by or under this Act. 26. Delegation Of Commissioners Powers :- (1) Subject to such restrictions and conditions as may be prescribed, the Commissioner may, by order in writing, delegate any of his powers under this Act to any person appointed to assist him under sub-section (1) of Section 25. (2) Notwithstanding anything contained in sub-section (1), the Commissioner may transfer any case or matter from any person appointed under sub-section (1) to assist him to any other person so appointed whether such other person has jurisdiction over the area to which the case or matter relates or not, provided he is otherwise competent to deal with such case or matter in exercise or performance of the powers or duties referred to under this sub- section. 27. Appellate Authority :- The State Government may authorise an officer, not below the rank of an Assistant Commissioner of Taxes appointed under sub-section (1) of Section 25 to exercise the powers and perform the functions of the Appellate Authority under Section 65. 28. Revisional Authority :- The Commissioner of Taxes appointed under sub-section (1) of Section 25 shall also exercise the powers and functions of the Revisional Authority under Section 66 and Section 67. 29. Appellate Tribunal :- The Meghalaya Board of Revenue shall functions as Appellate Tribunal. 30. Enforcement Branch :- (1) With effect from the appointed day, the Enforcement Branch constituted under the Meghalaya Sales Tax Law shall be deemed to have been constituted under this Act for discharging the functions referred to in sub-section (3) of this Section. (2) The officers of the Enforcement Branch shall work under the direction of the Assistant Commissioner of Taxes subject to over all control of the Commissioner of Taxes. (3) The Enforcement Branch on information or of its own motion or where the Commissioner so directs, carry out investigation or hold inquiry into any case of alleged or suspected evasion of tax as well a s malpractice connected therewith and send a report in respect thereof to the Commissioner. CHAPTER 5 Registration of Dealer And Demand of Security etc 31. Compulsory Registration Of Dealers :- (1) Subject to the other provisions of this chapter, no dealer shall, while being liable to pay tax under Section 3, carry on business as a dealer unless he has been registered and possesses a certificate of registration : Provided that, a dealer liable to pay tax under Section 3 shall be allowed thirty days time from the date from which he is first liable to pay such tax to get himself registered. (2) Every dealer required by sub-section (1) to be registered shall make application in this behalf in the prescribed manner to the prescribed authority and such application shall be accompanied by a declaration in the prescribed form duly filled up and signed by the dealer specifying therein the class or classes of goods dealt in or manufactured by him. (3) If the said authority is satisfied that and application for registration is in order, he shall, in accordance with such manner, grant registration to the applicant and issue a certificate of registration in the prescribed form which shall specify the class or classes of goods dealt in or manufactured by him. (4) Where the application for registration is made under this Section, the prescribed authority shall grant him the certificate of registration from the date of filling such application : Provided that the prescribed authority shall grant to such dealer, the certificate of registration from the date of commencement of his liability to pay tax where the application for registration is made within thirty days of such date. (5) For the purpose of identification of taxable person the prescribed authority shall issue a VAT registration identification number known as Tax Payer Identification Number (TIN). (6) The prescribed authority may from time to time amend any certificate of registration in accordance with information furnished under Section 103 or otherwise received, and such amendment will be made with effect from the date of passing of such order and subject to such restrictions and conditions as may be prescribed. (7) When any dealer has been convicted or has paid composition money under Section 91 or Section 96 as the case may be, in respect of any contravention of the provisions of sub-section (1) of this Section, the prescribed authority shall register such dealer and grant him a certificate of registration and such registration shall take effect from the date of order as if it had been made under sub-section (3) of this Section of the dealers application. (8) When-- (a) any business in respect of which a certificate of registration has been granted to a dealer on an application made, has been discontinued; or (b) a dealer has ceased to be liable to pay tax under Section 3; or (c) an incorporated body is closed down or if it otherwise ceased to exist; or (d) the owner of an ownership business dies leaving no successor to carry on business; or (e) in case of firm or association of persons, if it is dissolved; or (f) a person or dealer is registered by mistake; or (g) a dealer fails to furnish return and pay tax and interest according to such return or returns within the time extended by the Commissioner upon an application filed for such purpose under sub- section (4) of Section 35; The prescribed authority shall cancel the registration of such dealer. The cancellation of registration will take effect from the end of the period in which it is cancelled unless it is to take effect from a different date as ordered by the prescribed authority. (9) The cancellation of registration will take effect from the end of the period in which it is cancelled unless it is to take effect from a different date as ordered by the prescribed authority. (10) When any dealer to whom a certificate of registration is granted, has failed to pay any tax, penalty or interest payable under this Act or has failed to furnish return, the certificate of registration of such dealer may be suspended by the appropriate Assessing Authority in the manner as may be prescribed : Provided that the certificate of registration of a dealer shall not be suspended if he has furnished return or returns within the date prescribed in the notice and has paid tax, penalty or interest payable under this Act by such date, as the Commissioner may extend upon an application filed by the dealer within 15 days from the date by which he is required to file such return or returns or make payments of tax, interest or penalty, as the case may be. (11) Suspension of certificate of registration will be withdrawn and registration certificate shall be restored on an application made by the dealer on furnishing evidence of payment of all taxes and on furnishing of over due return or returns within 45 days from the date of suspension. (12) If certificate of registration of a dealer is suspended or if the suspension is withdrawn, the information will be made public through publication in Official Gazette and insertion of notice in Newspaper. 32. Voluntary Registration Of Dealer :- (1) Any dealer, whose gross turnover of sales during a year fifty thousand rupees, may, notwithstanding that he is not liable to pay tax, apply in the prescribed manner to the prescribed authority for registration under this Act. (2) Every dealer who has been registered on application made under this Section shall, for so long as his registration remains in force, be liable to pay tax under this Act. (3) This registration of a dealer on application made under this Section shall be in force for a period of not less than 3 complete years and shall remain in force thereafter unless cancelled under the provisions of this Act. (4) Subject to the provisions of sub-section (3), a dealer registered on application made under this Section may apply in the prescribed manner, not less than six months before the end of a year, to the authority which granted him his certificate of registration for the cancellation of such registration to take effect at the end of the year in which the application for such cancellation is made, and the said authority shall, unless the dealer is liable to pay tax under this Act, cancel the registration accordingly. (5) When the gross turnover of sales of any dealer registered on application made under this Section has, for three successive years after the period of three years referred to in sub-section (3) failed to exceed the taxable quantum, the prescribed authority may, after giving the dealer a reasonable opportunity of being heard cancel registration of such dealer. 33. Security To Be Furnished :- (1) The Commissioner may, at the time of granting of certificate of registration to dealer under Section 31 or at any time thereafter, for good and sufficient reasons to be recorded in writing require the dealer to furnish in the prescribed manner such security or such additional security as may be specified by him for securing proper and timely payment of tax or any other sum payable by him under this Act. (2) The Commissioner may, by order in writing and for good or sufficient reason to be accorded therein, demand from any person other than a registered dealer, who imports into Meghalaya any consignment of goods, a reasonable security for ensuring that there is no evasion of tax. (3) The Commissioner may, by an order in writing and for good and sufficient reason, demand from any person or dealer a reasonable security for proper use and safe custody of the form referred to in sub-section (2) of Section 75 and obtained from the prescribed authority. (4) The Commissioner may, by order in writing and for good or sufficient reasons to be recorded therein, forfeit the whole or any part of the security or additional security referred to in sub-section (1), sub-section (2), or sub-section (3), as the case may be, furnished by a dealer, registered dealer, undertaking or person as required by sub-section (1) or demanded under sub-section (2), or sub-section (3), for-- (a) realizing or recovery of tax or any other sum due, or (b) recovery of any financial loss caused to the State Government due to negligence or default in not making proper use of, or not keeping in safe custody, blank or unused forms of way bill. (5) Where, the Commissioner may by reason of any order under sub-section (4), the security as required by a dealer, registered dealer, undertaking or person is forfeited in whole or is rendered insufficient, such dealer, registered dealer, undertaking or person shall, on demand by order of the Commissioner, furnish fresh or further security of the requisite amount or shall make up the deficiency, as the case may be, in such manner and within such period as may be specified in such order. (6) The Commissioner may, on application by a dealer, registered dealer, undertaking or persons, who has furnished security as required by sub-section (1) or demanded under sub-section (2) or sub-section (3), refund in the prescribed manner any amount of security or part thereof if such security is not required for the purposes for which it was furnished. (7) Security as required by sub-section (1) or demanded under sub-section (2), sub-section (3) or sub-section (5) shall be furnished by a dealer, registered dealer, undertaking or person in such manner and by such time as may be specified in the order requiring to furnish, or demanding, such security. (8) No order shall be passed under this Section without giving the dealer, registered dealer, undertaking or person an opportunity of being heard. 34. Suspension Of Certificate Of Registration :- (1) Suspension of certificate of registration will be withdrawn and registration certificate shall be restored on an application made by the dealer on furnishing evidence of payment of all taxes and on furnishing of overdue return or returns within 45 days from the date of suspension. (2) If a certificate of registration of a dealer is suspended or if the suspension is withdrawn, the information will be made public through publication in the Official Gazette and insertion of notice in newspaper.]* *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. CHAPTER 6 Return And Payment of Tax, Assessment Etc 35. Periodical Return And Payment Of Tax And Interest :- ( 1 ) Tax payable under this Act shall be paid in the manner hereinafter provided at such intervals as may be prescribed. (2) Every registered dealer shall, in the prescribed manner, furnish such returns by such dates and to such authority as may be prescribed. (3) Any dealer, other than a registered dealer referred to in sub- section (2), shall, if so required by the Commissioner by a notice served in the prescribed manner, furnish returns in accordance with the provisions of sub-section (2). (4) Before any dealer furnishes a return required by sub-section (2) or sub-section (3), he shall, in the prescribed manner pay, into a Government Treasury or the State Bank of India [or any Bank authorised by the Government]* the full amount of tax due from him under the Act, according to such return, and shall furnish along with such return on receipt from the Treasury or Bank showing to the payment of such amount : Provided that a registered dealer shall, subject to such conditions as may be prescribed, pay in the prescribed manner, the tax payable under the Act for any prescribed part of the period for which a return is required to be furnished under sub-section (2) or sub-section (3) by such date as may be prescribed after the expiry of the prescribed part of the period as aforesaid : Provided further that a dealer may furnish return within the prescribed date without making payment of tax either in full or in part subject to such terms and conditions as may be prescribed. (5) If any dealer discovers any omission or any other error in any return furnished by him, he may, at any time before the date prescribed for the furnishing of the next return by him, furnish a revised return, and if the revised return shows be greater amount of tax to be due that what was shown in the original return, it shall be accompanied by a receipt showing payment of the extra amount in the manner provided in sub-section (4). *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 36. Return Defaults :- (1) If a dealer required to file return under sub-section (1) or sub- section (2) of Section 35-- (a) furnishes a revised return under sub-section (3) of Section 35 showing a higher amount of tax to be due than was shown by him in the original return; or (b) fails to furnish return; (c) fails to pay the different of the amount of tax according to the revised return; or (d) fails to pay tax payable for the period for which he has failed to furnish return; such dealer shall be liable to pay interest in respect thereof at the rate of 2% per month from the date tax payable had become due to the date of its payment or to the date of order of assessment, whichever is earlier. (2) Month shall mean thirty days and the interest payable in respect of a period of less than one month shall be co-opted proportionately. (3) If a registered dealer, without sufficient cause, fails to pay the amount of tax due and interest along with return or revised return in accordance with the provisions of sub-section (1), the Commissioner may, after giving the dealer reasonable opportunity o f being heard, direct him to pay in addition to the tax and the interest payable by him a penalty, [not exceeding one and half times of the tax payable]* and interest so payable from the date it had become due or to the date of order of assessment, whichever is earlier. (4) If a registered dealer or any other dealer required to furnish return under sub-section (2) or Section 35, without any sufficient cause- (a) fails to comply with the requirements of the notice issued under sub-section (2) of Section 35; or (b) fails to furnish any return by the prescribed date as required under sub-section (2) of Section 35; or (c) being required to furnish revised return, fails to furnish the revised return by the date of prescribed under sub-section (3) of Section 35; or (d) having paid the tax payable according to a return in time, fails to furnish along with the return proof of payment made in accordance with sub-section (4) of Section 35; the Commissioner may, after giving the dealer reasonable opportunity of being heard, direct him to pay in addition to any tax, interest and penalty under sub-section (.3) payable or paid by him, a penalty of a sum of rupees one hundred per day of default subject to a maximum of rupees ten thousand. ( 5 ) Any penalty imposed under this Section shall be without prejudice to ay prosecution for any offence under this Act. (6) For the purposes of this Act, any return signed by a person who is not authorised as may prescribed shall be treated as if no return has been filed. *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 37. Collection Of Tax Only By Registered Dealers :- (1) No person who is not a registered dealer shall collect in respect of any sale of goods by him in the State of Meghalaya any amount by way of tax, under this Act and no register dealer shall make any such collection except in accordance with the provisions of this Act and the Rules made there under and not beyond the rate specified. ( 2 ) Notwithstanding anything contained in sub-section (1), a registered dealer who has been permitted by Commissioner to pay [composite]* tax under Section 17 shall not collect any sum by way of tax on the sale of goods during the period to which such payment relates. *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 38. Rounding Off Of The Amount Of Tax Or Penalty :- The amount of tax or penalty payable or refundable for any period under the provisions of this Act shall be rounded off to the nearest rupees and, for this purpose, where such amount contains a part a rupee, then, if such part is fifty paise or more, it shall be increased to one rupee and, if such part is less than fifty paise, it shall be ignored. 39. Scrutiny Of Return :- (1) Each and every return in relation to any tax period furnished by a registered dealer to whom notice has been issued by the Commissioner under Section 35 shall be subject to scrutiny by the Assessing Authority to verify the correctness of calculation, application of correct rate of tax and interest and input tax credit claimed therein; and full payment of and interest payable by the dealer during such period. (2) If any mistake is detected as result of such scrutiny made as per the provisions of sub-section (1) the Assessing Authority shall serve a notice in the prescribed form on the dealer to make payment of the extra amount of tax along with the interest as per the provisions of this Act, if it is payable by a date specified in the said notice. (3) If the Commissioner-- (a) discovers any error or omission in any return furnished by a dealer; (b) has reasons to believe upon information or otherwise that a dealer has furnished in correct statement of his turnover of sales or turnover of purchases or incorrect particulars of his, sales or purchases in any return. He may required such dealer to produce any accounts, register, statements or documents or to furnish any information regarding purchases, sales, deliveries, stock of goods or payments made or received or any other related or incidental matter for the purpose of verification of such return. 40. Interest Payable By Dealer :- (1) If any dealer does not pay the full amount of tax payable by him under this Act by the date on which if falls due as per provisions of the Act, simple interest at the rate of two per centum per month from the first day of the month next following the said date shall be payable by him on the amount by which the tax paid, if any, by the aforesaid due date falls short of the tax payable. No interest under this Section shall be payable if the amount of tax paid by the aforesaid due date is not less than ninety per centum of the tax payable. (2) Where any interest payable by any dealer under the foregoing provisions is not paid in full, the Assessing Officer shall determine the amount payable by an order in writing. (3) If as a result of any proceeding under this Act the amount of tax in respect of which interest is payable by the dealer under the foregoing provisions is varies the Assessing Officer shall correspondingly reduce or enhance, as the case may be the interest so payable. [(4) When a dealer is in default or is deemed to be in default in making the payment under Section 52, Section 53, and Section 54, he shall be liable to pay simple interest on such amount at the rate of two percent per month from the date of such default for so long as he continues to make default in the payment of the said tax. (5) Where any amount of tax payable is enhanced by any such order, interest shall be payable on the amount by which the tax is enhanced after the expiry of a period of three months from the date of the order. (6) Where a realization of any amount remains stayed by the order of any court or authority and such order is subsequently vacated, interest shall be payable also for any period during which such order remain in operation.]* *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 41. Interest On Refund :- [(1) A registered dealer entitled to refund in pursuance of any order under this Act (including assessment under Section 52, Section 53 or Section 54) or in pursuance of any order by any Court, shall be entitled to receive, in addition to the refund, simple interest at the rate of eight percent per annum for the period commencing after ninety days of the application claiming refund in pursuance to such order till the date on which the refund in granted. (2) The interest shall be calculated on the amount of refund due after deducting there from any tax, interest, penalty or any other dues under this Act. (3) If, as a result of any order passed under this Act, the amount of such refund is enhanced or reduced such interest shall be enhanced or reduced accordingly. (4) Where as a result of any final order the amount of tax (including any penalty) due or in default is wholly reduced, the amount of interest,- if any, paid shall be refunded, or if such amount is modified, the interest due shall be calculated accordingly.]* *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 42. Power To Withhold Refund In Certain Cases :- (1) Where an order giving to refund in the subject matter of an appeal or further proceeding or where any other proceeding under this Act is pending and the Commissioner is of the opinion that the grant, of such refund is likely to adversely affect the revenue and that it may not be possible to recover the amount later, the Commissioner may, withhold the refund till such times as he may determine. (2) Where a refund is withheld under sub-section (1), the dealer shall be entitled to interest as provided under sub-section (1) of Section 41, if as a result of the appeal or further proceeding or any other proceeding he becomes entitled to the refund. 43. Exemption Of Certain Sales And Purchase :- (1) Subject to such conditions as it may impose the Government may, if it is necessary so to do in the public interest, by notification in the Official Gazette, exempt any sales or purchases made to or by a class of dealers or persons specified in the said notification from payment of the whole or any part of any tax payable under the provisions of this Act and any notification issued under this Section may be issued so as to be retrospective to any date not earlier than the 1st April, [2005]* and such exemption shall take effect from the date of the application of the notification in the Official Gazette or such other earlier or later date as may be mentioned therein. (2) Where any dealer or person has purchased any goods under a declaration or certificate given by him under any notification issued under this Section; and (a) any of the conditions subject to which such exemption was granted, or (b ) any of the recitals or the conditions of the declaration, or certificate are not complied with for any reason whatsoever, then without prejudice to the other provisions of this Act such dealer or person shall be liable to pay tax on the sale price of the goods at the rate set out against each of such goods in the Schedule notwithstanding that such dealer or person was not liable to pay t ax under any other provisions of this Act and accordingly the dealer or the person who has become liable to pay tax under this sub-section shall file a return in the prescribed form to the prescribed authority within a prescribed time and shall include the sale price of such turnover in his return and pay the tax in the prescribed manner, the tax due from any such dealer or person shall be assessed and recovered as if the person or dealer is a dealer liable to be proceed against under the provisions of this Act. (3) If the Commissioner has reason to believe that any person or dealer is liable to pay tax under sub-section (2) the Commissioner shall after giving him a reasonable opportunity to being heard, assess the amount of tax so due. *.As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 44. Levy Of Tax On Sale Of Non-Vatable Goods :- Every dealer of goods specified in Schedule V shall with effect from the appointed day be liable to pay tax under this Act at the first point of sale of such goods within the State at the rates specified therein.]* *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 45. Assessment :- (1) If no returns are furnished by a registered dealer in respect of any period, by the prescribed date or if the Commissioner is not satisfied that the returns furnished are correct and complete, the Commissioner shall proceed in such manner as may be prescribed to assess to the best of his judgment the amount of tax due from the dealer and, in making such assessment, shall give the dealer a reasonable opportunity of being heard; and in the case of failure by a registered dealer to furnish in respect of period, a return accompanied by a receipt from a Government Treasury or the State Bank of India, [or any other Bank authorized by the Govt. of Meghalaya]* as required under sub-section (4) of Section 35 by the prescribed date, the Commissioner may if he is satisfied that the default was made without reasonable cause, direct that the dealer shall pay by way of penalty, in addition to the amount of tax assessed, a sum not exceed in one and a half time; that amount : Provided that where a registered dealer brings to the notice of the Commissioner in writing, within six months from the end of the year that, due to error in fact or in law, an amount of tax has been paid by him in excess of what was payable by him during any return period relating to such year, and request the Commissioner for making assessment under this sub-section in respect of such year, the Commissioner may if he satisfied on the grounds adduced by such registered dealer making such assessment, proceed to make assessment in respect of such year immediately on receipt of notice by the dealer. (2) Where upon search or seizure of any accounts, registers or documents or of any goods of a dealer registered under this Act, or upon enquiry or information received or upon verification of return under sub-section (6) of Section 35 or where refund of any tax, interest or penalty arises or the Commissioner has reasons to believe that the dealer has not accounted for the turnover of sales of goods or purchases of goods as appearing from such accounts, registers of documents in the books of accounts referred to in Section 84 or has not shown such turnover in his return furnished under Section 35 in respect of any return period or has furnished incorrect statement of his turnover of sales or turnover of purchases or incorrect particulars of his sales or purchases in any return, the Commissioner shall, notwithstanding anything contained in sub- section (1) proceed in such manner as may be prescribed to assess to the best of his judgment the amount of tax payable by the dealer in respect of such return period after giving the dealer a reasonable opportunity of being heard and direct such dealer to pay the amount of tax so assessed in such manner and by such date as may be prescribed; the Commissioner may if he is satisfied that the default was made without reasonable cause, direct that the dealer shall pay by way of penalty in addition to the amount of tax so assessed, a sum not exceeding one and half times that amount. (3) No penalty under sub-section (1) or sub-section (2) shall be imposed in respect of the same fact for which a prosecution under Sec. 90 has been instituted and no prosecution would lie vice versa. [(4) Subject to others provisions of this Section assessment shall also be made in cases where business is closed by a dealer. Tax on goods that remain in stock at the time of cancellation of registration (including capital goods) on which input tax has already been given credit, shall be assessed and collected in the manner as may be prescribed.]* *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 46. Assessment Without Prejudice To Prosecution For Any Offence :- Any assessment of tax or determination of interest made under this Act shall be without prejudice to any prosecution instituted for an offence under this Act.]* *.As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 47. Assessment Of Dealers Dealing In Goods Other Than Vatable Goods :- Every registered dealer liable to pay tax under Section 6 or Section 47 has to file a quarterly return and pay the full amount of tax payable by him according to such return or the differential tax payable according to revised return furnished if any, and shall furnish along with the return, as the case may be, a receipt showing the full payment of such amount into the Treasury. The assessment of tax shall be made by the Commissioner after taking into consideration the returns duly supported with proper accounts as may be prescribed.]* *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 48. Payment Of Tax And Penalty :- The amount of tax- (a) due from a dealer where the returns are furnish without receipt showing full payment of tax, or (b) assessed under Section 45 for a period, less the sums, if any, already paid by a dealer in respect of the said period, together with a penalty that may be directed to be paid under Section 35 if any, shall be paid by such dealer into a Government Treasury or the State Bank of India by such date as may be specified in a notice issue by the Commissioner in this behalf, and the date to be specified shall be ordinarily not less than thirty days from the date of service of such notice. 49. Refund :- (1) The Commissioner shall, in the prescribed manner, refund to a registered dealer, being an exporter of goods, the amount of tax paid or payable on the purchases of goods or inputs used directly by him in manufacture in Meghalaya, on being satisfied that goods so purchased or manufactured were sold outside the territory of India from Meghalaya. (2) The Commissioner shall, in the prescribed manner, refund to consulates and specialized agencies of the United Nations the amount of tax paid or payable on the purchases of goods in Meghalaya, on being satisfied that goods so purchased were for their personal of official use as may be prescribed. (3) Subject to other provisions of this Act, if it is found on assessment or re-assessment under Section 45 or 46 of the Act, as the case may be, that a dealer has paid tax, interest or penalty in excess of what is due from him, the Commissioner shall, in the prescribed manner, refund to such dealer the amount of tax, interest or penalty paid in excess by him : Provided further that such refund shall be made after adjusting any tax or penalty due from him under the Act for any period on the date of passing of order for such refund. (4) The Commissioner shall, in prescribed manner, refund to a certified dealer, the amount of inputs tax paid or payable by him under this Act on his purchases of capital goods including plants and machinery, containers, packing materials and inputs required for direct use in the manufacture of taxable good in Meghalaya for sale in Meghalaya. (5) The Commissioner shall in the prescribed manner refund to a registered dealer, the amount of tax paid or payable by him on the purchases of goods or input used directly by him in manufacture in Meghalaya, on being satisfied that goods so purchased or manufactured were sold to Special Economic Zones. (6) The Commissioner shall in the prescribed manner refund to a registered dealer the amount of tax paid or payable on the purchase of goods or inputs used directly by him in manufacture in Meghalaya on being satisfied that goods so purchased or manufactured were sold to export Oriented Units/Electronic Hardware Technology Park/Software Technology Park Units for the purpose of export only. 50. Provisional Refund :- (1) If a registered dealer has filed any return as required under this Act and the return shows any amount to be returnable to the dealer on account of sales in course of export out of the territory of India, then the dealer may apply in the manner and form prescribed to the Commissioner for grant of provisional refund pending Audit and investigation to establish the correctness of the claim and consequent assessment, if any. (2) Subject to the provisions of sub-section (3), the Commissioner m a y require the dealer to furnish a Bank Guarantee or other security as may be prescribed for an amount equal to the amount of refund and on receipt of such guarantee or other security, the Commissioner shall grant the dealer a provisional refund that may be determined as refundable. (3) The Commissioner may direct the assessment under Section [58]* of such dealer in respect of the year containing the period covered by the said return to be taken up as early as practicable and adjust the grant of provisional refund against tax due, if any, as a result of that assessment. (4) If, on assessment, the provisional refund granted under sub- section (2) is found to be in excess than the excess shall be recovered as if it is tax free from the dealer under this Act. (5) Interest will be charged on such excess amount at the rate of two percent per month from the date of grant of provisional refund till the date of assessment. *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 51. Rectification Of Assessment :- (1) The authority, which made an assessment or passed an order on appeal or revision in respect thereof may, at any time within three years from the date of such assessment or order and of its own motion, rectify any mistake apparent from the record of the case, and shall, within the like period, rectify any such mistake as has been brought to its notice by a dealer : Provided that no such rectification shall be made having the effect of enhancing the assessment unless the authority concerned has given notice to the dealer of its intention so to do and has allowed him a reasonable opportunity of being heard. (2) Where any such rectification has the effect of reducing the assessment, a refund shall be due to the dealer. (3) Where any such rectification has the effect of enhancing the assessment, a notice of demand shall be issued for the sum payable. 52. Tax Audit :- (1) The Commissioner or any other tax officer as directed by him shall undertake tax audit of the records, stock in trade and the related documents of the dealer, who are selected by the Commissioner in the manner as may be prescribed for the purpose. (2) The tax audit shall be generally taken up in the office, business premises or warehouse of the dealer. (3) For the purpose of tax audit under sub-section (1) the Commissioner or any other tax officer directed by him shall examine the correctness of return or returns filed and admissibility of various claims including input tax credit. 53. Self Assessment :- (1) Subject to provision of sub-section (2), the amount of tax due from a registered dealer or a dealer liable to be registered under this Act, shall be assessed in the manner hereinafter provided, for each tax period or tax periods during which the dealer is so liable. (2) Notwithstanding anything contained in this Section, if a registered dealer has failed to furnish return or returns under sub- section (1) of Section 35, in respect of any tax period or periods, the Commissioner shall proceed to make a provisional assessment under Section 54. (3) If a registered dealer has failed the return in respect of any tax period within the prescribed time and the return so filed is found to be in order, it shall be accepted as self assessment subject to adjustment of any arithmetical; error apparent on the face of the said return. 54. Provisional Assessment :- (1) Where a registered dealer fails to furnish the return in respect of any tax period within the prescribed time Commissioner shall, notwithstanding anything contained in Section 55, proceed to assess the dealer provisionally for the period for such default. (2) The provisional assessment under sub-section (1) shall be made on the basis of past returns or past records where no such returns are available or on the basis of information received by the Commissioner and the Commissioner shall direct the dealer to pay amount of tax assessed in such manner and by such date as may be prescribed. (3) If the dealer furnishes return along with evidence showing full payment of tax, interest and penalty, if any, on or before the date of payment specified under sub-section (2), the provisional assessment made under sub-section (1) shall stand revoked to the extend of the tax demanded, interest levied and penalty imposed, on the date on which such return is filed by the dealer. (4) Nothing contained in this Section shall prevent the Commissioner from making assessment under Section 55 and any tax, interest or penalty paid against provisional assessment shall be adjusted against tax, interest and penalty payable on final assessment under that Section. 55. Audit Assessment :- (1) Where-- (a) a registered dealer has failed to furnish any return under sub- section (1) of Section 35 in respect of any period; or (b) a registered dealer is selected for audit assessment by the Commissioner on the basis or of any criteria or on random basis; or (c) the Commissioner is not satisfied with the correctness of any return filed under Section 35, or bonafides of any claim of exemption, deduction concession, input tax credit or genuineness of any declaration, evidence furnished by a registered dealer in support thereof; or (d) the Commissioner has reasons to believe that detailed scrutiny of the case is necessary, the Commissioner may, notwithstanding the fact that the dealer may already have been assessed under Section 54, serve on such dealer in the prescribed manner a notice requiring him to appear on a date and place specified therein, which may be in the business premises or at a place specified in the notice, to either attend and produce or cause to be produced the books of account and all evidence on which the dealer relies in support of his returns including tax invoice, if any, or to produce such evidence as specified in the notice. (2) The dealer shall provide full co-operation and assistance to the Commissioner to conduct the proceedings under this Section at his business premises. (3) If proceedings under this Section are to be conducted at the business premises of the dealer and it is found that the dealer or his authorised representative is not available or not functioning from such premises, the Commissioner shall assess to the best of his judgment the amount of tax due from him. (4) If the Commissioner is prevented from conducting the proceedings under this Section, the Commissioner may demand a sum equal to the amount of tax so assessed, by way of penalty after considering all the evidence produced in course of the proceedings or collected by him. (5) If any dealer-- (a) has not furnished returns in respect of any period by the prescribed date; or (b) has furnished incomplete and incorrect returns for any period; or (c) has failed to comply with any notice under sub-section (1) or sub-section (3); or ( d ) has failed to maintain accounts in accordance with the provisions of this Act or has not regularly employed any method of accounting; the Commissioner shall assess to the best of his judgment the amount of tax due from such dealer. (6) If the Commissioner is satisfied that the dealer, in order to evade or avoid payment of tax-- (a) has failed to furnished without reasonable cause, returns in respect of any period by the prescribed date; or (b) has furnished incomplete and incorrect returns for any period; or (c) has availed tax credit to which he is not entitled to; or (d) has employed such method of accounting which does not enable the Commissioner to assess the tax due from him; he shall, after giving the dealer reasonable opportunity of being heard, direct that the dealer shall pay, by way of penalty, a sum equal to twice the amount of additional tax assessed on account of the said reasons under this Section. 56. Assessment Of Dealers Who Fails To Get Himself Registered :- (1) If the Commissioner, upon information which has come into his possession, is satisfied that any dealer who has been liable to pay tax under this Act, in respect of any period, has failed to get himself registered, the Commissioner shall proceed in such manner a s may be prescribed to assess to the best of his judgment the amount of tax due from the dealer in respect of such period and all subsequent periods and in making such assessment shall give the dealer reasonable opportunity of being heard. (2) The Commissioner may, if he is satisfied that the default was without reasonable cause, direct that the dealer shall pay, by way of penalty, in addition to the amount of tax so assessed, [a sum not exceeding the amount of tax assessed and not lower than rupees five thousand]*. *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 57. No Assessment After Five Year :- (1) No assessment under Section 55 or 56 shall made after the expiry of five years from the end of the tax period to which the assessment relates : Provided that in case of offence under this Act for which proceeding for prosecution has been initiated, the limitation as specified in this sub-section shall not apply. Any assessment made or penalty imposed under this Chapter shall be without prejudice to prosecution for any offence under this Act. 58. Turnover Escaping Assessment :- (1) Where after a dealer is assessed under Section 53 or Section 54 for any year or part thereof, the Commissioner has reason to believe that the whole or any part of the turnover of the dealer in respect of any period has-- (a) escaped assessment; or (b) been under-assessed; or (c) been assessed at a rate lower than the rate of which it is assessable; or (d) been wrongly allowed any deduction there from; or (e) been wrongly allowed any credit therein, the Commissioner may, serve a notice on the dealer and after giving the dealer reasonable opportunity of being heard and making such enquiries as he considers necessary, proceed to assess to the best of his judgment, the amount of tax due from the dealer in respect of such turnover, and the provisions of this Act shall, so far as may be, apply accordingly. (2) No order of assessment and reassessment shall be made under sub-section (1) after the expiry of five years from the end of the year in respect of which or part of which the tax is assessable. 59. Exclusion Of Time Period For Assessment :- In computing the period of limitation specified for assessment or reassessment, as the case may be the time during which an assessment or reassessment proceeding remained stated under the order of a competent Court shall be excluded. 60. Special Mode Of Recovery :- (1) Notwithstanding anything contained in any law or contract to the contrary, the Commissioner may at any time or from time to time, by notice in writing (a copy of which shall be forwarded to the dealer at his last known address) required any person who holds or may subsequently hold any money for, or on account of such dealer, to pay into Government Treasury in the manner specified in the notice, either forthwith or upon the money becoming due or being held, or at or within the time specified in the notice not being before money becomes due or is held, so much of the money as is sufficient to pay the amount of tax due from the dealer or penalty or both, as the case may be, under this Act, or the whole of the money when it is less than that amount. (2) The notice under sub-section (1) may, from time to time, amend or revoke any such notice or extend the time for making such payment in pursuance of the notice. (3) Any person making any payment in compliance with a notice issued under sub-section (1) shall be deemed to have made the payment under the authority of the dealer and the receipt from the Government Treasury shall construct a good and sufficient discharge of the liability of such person to the dealer to the extent of the amount specified in the receipt. (4) Any person discharging in liability to the dealer, after service on him of the notice issued under sub-section (1) shall, if the liability is discharged in any manner other than that required under the said notice, be personally liable to the State Government to the extent of the liability discharged or to the extent of the liability of the dealer for tax or penalty, or both, whichever is less. (5) Where a person on whom a notice is served under sub-section (1) proves to the satisfaction of the Commissioner that the money demanded or any part thereof were not due to the dealer, or that he did not hold any money for or on account of the dealer, as the time the notice was served on him, nor is the money demanded or any part thereof is likely to become due to the dealer or be held for or on account of the dealer, then such person shall not be liable to pay into Government treasury any such money or part thereof. (6) Any amount of money, which a person is required to pay under sub-section (1) or for which he is personally liable under sub- section(4), shall, if it remains unpaid, be recoverable in the same manner as provided under Section 107 : Provided that nothing in this Section shall operate to affect any action taken or prevent any action that may be or is being taken under Section 48 for recovery from the dealer the amount due from him. 61. Collection Of Tax By Dealer :- (1) if any person-- (a) not being a dealer liable to pay tax under this Act, collects any sum by way of tax; or (b) being a registered dealer, collects any amount by way of tax in excess of the tax payable by him, shall be liable in addition to the tax for which he may be liable, to a penalty of an amount equal to twice the sum so collected by way of tax. (2) If the Commissioner, in the course of any proceeding under this Act or otherwise has reason to believe that any person has become liable to a penalty, or forfeiture, or both, under sub-section (1), he shall serve on such person a notice in the prescribed form requiring him to appear and show cause as to why a penalty or forfeiture or both of any sum as provided under sub-section (1) should not be imposed on him. The Commissioners shall thereupon hold an inquiry as the deems necessary and shall make such order as he deems fit. 62. Sales Not Liable To Tax :- (1) Notwithstanding anything contained in this Act, a value added tax shall not be imposed under this Act-- (i) where such sales or purchase takes place outside the State of Meghalaya; (ii) where such sale or purchase takes place in the course of inter- state trade and commerce; or (iii) where such sale or purchase takes place in the course of import of goods into the territory of India or export of goods out of the territory of India. (2) For the purpose of this Section whether a sale of purchase takes place-- (i) outside the State of Meghalaya; or (ii) in the course of inter-state trade or commerce; or (iii) in the course of import of goods into the territory of India or export of goods out of the territory of India; shall be determined in accordance with the provisions of Section 3, Section 4, and Section 5 of the Central Sales Tax Act, 1956. 63. Tax To Be First Charge On Property :- Notwithstanding anything to the contrary contained in any law for the time being in force, any amount payable by a dealer under this Act on account of tax penalty or interest or any amount which a person is required to pay under this Act shall be a first charge on the property of the dealer or such person. 64. Period Of Limitation Of Recovery For Tax :- Notwithstanding anything contained in any law for the time being in force, no proceeding for recovery of any amount under sub- section (1)(b) of Section 61 shall be initiated after the expiry of five years from the date of the relevant assessment: Provided that when an appeal or revision has been filed, the period of limitation shall run from the date on which the amount due is finally determined. CHAPTER 7 Appeal, Revision And Review 65. Appeal Against Assessment :- (1) Any dealer may, in the prescribed manner, appeal to the prescribed authority against any assessment within forty-five days or such further period as may be allowed by the said authority for cause shown to his satisfaction from the receipt of a notice of demand in respect thereof: Provided that no appeal shall be entertained by the said authority unless he is satisfied that such amount of tax, penalty or interest, as the case may be, as the appellant may admit to be due from him and such percentage of the disputed tax, as may be prescribed, has been paid. (2) Subject to such rules of procedure as may be prescribed, the appellate authority, in disposing of any appeal under sub-section (1), may-- (a) confirm, reduce, enhance or annul the assessment; or (b) when such authority is satisfied, for reasons to be recorded in writing, that it is not practicable or desirable to act in accordance with the provisions of clause (a) set aside the assessment and direct the assessing authority to made a fresh assessment after such further inquiry as may be directed. (3) While acting in accordance with the provisions of clause (b) of sub-section (2), the appellate authority may set aside any part or parts of an assessment and, if he does so, the assessing authority shall make a fresh assessment in respect of such part or parts only, and the remaining part or parts of the previous assessment shall remain unaltered and valid. (4) Pending disposal of an appeal referred to in sub-section (2), the appellate authority may, on application, at his discretion and subject to such conditions and restrictions as may be prescribed stay realization of the amount of tax, penalty or interest in dispute wholly or in part. Explanation-- For the purposes of this Section,-- (a) "assessment" includes-- (i) assessment of tax and imposition of penalty under Section 45; (ii) assessment of tax under Section 46; (iii) determination of interest under Section 40; (b) "notice of demand" means any notice served in accordance with the provisions of this Act for realization of the tax, penalty or interest referred to in clause (a). 66. Suo Moto Revision And Revision By Commissioner Upon Application :- (1) Subject to such rules as may be made and for reasons to be recorded in writing, the Commissioner, may on his own motion, revise any assessment made or order passed by a person appointed under sub-section (1) of Section 25 to assist him. (2) Subject to such rules as may be prescribed and for reasons to be recorded in writing, the Commissioner may, upon application revise any order, passed by a person appointed under Section (1) of Section 25 to assist him. 67. Review Of Order :- (1) Subject to such rules as may be made, any assessment made or order passed under this Act or the rules made there under by any person appointed under sub-section (1) of Section 25, may be review by the person passing it, upon applicable or on his own motion, and subject to the rules as aforesaid, the Appellate and Revisional Authority may, in the like manner and for reasons to be recorded in writing, review any order passed by it, either on its own motion or upon an application. 68. Appeal To The High Court :- (a) Any assessee objecting to an order passed by the Commissioner under Section 66 or 67 may appeal to the High Court within sixty days from the date on which the order was communicated to him. (b) The High Court may admit an appeal preferred after the period of sixty days aforesaid if it is satisfied that the assessee had sufficient cause for not preferring the appeal within that period. (c) The appeal shall be in the prescribed term, shall be verified in the prescribed manner, and shall be accompanied by a fee of five hundred rupees. (d) The High Court shall, after giving both the parties to the appeal a reasonable opportunity of being heard, pass such order thereon as it thinks fit. 69. Appeal To The Appellate Tribunal :- (1) A person dissatisfied with the decision of the Appellate Authority and Revisional Authority may, within sixty days after being served with notice of the decision. (a) file a second appeal before the Appellate Tribunal; and (b) serve a copy of the notice of appeal on the Commissioner as well as the authority whose original order is under second appeal before the Appellate Tribunal. (2) The Appellate Tribunal may admit an appeal after expiry of sixty days if it is satisfied that the appellate had sufficient reason for not filling the appeal within the time specified in sub-section (1), provided it is within one year. (3) In deciding an appeal, the Appellate Tribunal shall made an order after affording an opportunity to the dealer or other person and the Commissioner-- (a) affirming, reducing, increasing, or varying the assessment or other order under appeal; (b) remitting the assessment or other order under appeal for reconsideration by the Appellate Authority concerned with such directions as it may deem fit; and (c) a copy of such order shall be served on the Commissioner/ Prescribed authority. (4) The Appellate Tribunal shall serve the appellant with notice, in writing, of the appeal decision setting forth the reasons for decisions : Provided that before increasing the tax or other amount the dealer shall be given an opportunity of being heard on the proposal of increasing the liability. 70. Revision To High Court :- (1) An assessee who is dissatisfied with the decision of the Appellate Tribunal or Commissioner may, within sixty days after being notified of the decision, file a revision with the High Court; and the assessee so appealing shall serve a copy of the notice of revision on the respondent to the proceeding. (2) A revision to the High Court may be made on question of law or an erroneous decision or failure to decide a question of law that will be raised in the revision. ( 3 ) The Commissioner shall also be made a party to the proceedings before the High Court where appeal is filed by the dealer or person. (4) The High Court may on application either by the petitioner or by the respondent review any order passed by it provided such application is made within one year from the date of receipt of the judgment. 71. Hearing Of Revision And Review By The High Court :- A revision of review application presented before the High court under Section 70 shall be heard by the bench consisting of not less than two judges. 72. Burden Of Proof :- The burden of proving that any turnover of goods is exempt from or that there is not liability or obligation under this Act shall be on the person objecting. 73. Persons Appointed Under Section 25 And Members Of Appellate Tribunal To The Public Servants :- The Commissioner and all officers appointed under Section 25 including the members of the Appellate Tribunal shall be deemed to be servants within the meaning of Section 21 of Indian Panel Code. 74. Indemnity Of Government Servant :- No suit, prosecution or other legal proceedings shall lie against any Government servant for -anything which is in good faith done or intended to be done under this Act or the rules made there under. CHAPTER 8 Measures to Regulate Transport of Goods 75. Restriction On Movement Of Goods :- (1) To ensure that there is no evasion of tax, no person shall transport from any railway station, airport, port, post office or any checkpost set up under Section 76 or from any other place any consignment of goods except in accordance with such restrictions and conditions as may be prescribed. (2) Subject to the restrictions and conditions prescribed under sub- section (1) or sub-section (2), any consignment of goods may be transported by any person after he furnishes in the prescribed manner such particulars in such form obtainable from such authority or in such other form as may be prescribe. (3) Subject to such restrictions and conditions as may be prescribed, nothing in sub-section (1) shall apply to-- (a) duly accredited diplomatic personnel attached to foreign consulates or other diplomatic offices; (b) organizations and specialized agencies of the United Nations; (c) such other persons, organizations or institutions as may be prescribed. 76. Erection Of Check Posts :- (1) The Government may, with a view to prevent or check avoidance or evasion of tax, by notification in the official Gazette, direct the establishment of the check post or barrier ["or weighing devices or godowns"]* at such places as may be specified in the notification and every officer who exercise powers and discharges his duties at such check post by way of inspection of documents produced and goods being moved, shall be in charge. (2) The driver or person in charge of vehicle or carrier of goods in movement shall-- (a) carry with him the records of the goods including "Challan", bills of sale or dispatch memos and prescribed declaration form or way bill duly filled in and signed by the consignor of goods carried; (b) stop the vehicle or carrier at every check post set up under sub- section (1) or at any other place by an officer authorised by the Commissioner in this behalf; (c) produced all the documents including the prescribed way bill relating to the goods before the officer in charge of the check post or the authorised officer; (d) give all the information in his possession relating to the goods; and (e) allow the inspection of the goods for search of the vehicle by the officer in charge of the check post or any authorised officer. (3) Where any goods are in movement within the territory of the State of Meghalaya, an officer empowered by the State Government in this behalf may stop the vehicle or the carrier or the person carrying such goods, for inspection, at any place within his jurisdiction and provisions of sub-section (2) shall mutatis mutandis apply. (4) Where any goods in movement are without documents, or are not supported by documents as referred to in sub-section (2), or documents produced appears to be false or forged the officer in charge of the check post or the officer empowered under sub- section (3) may-- (a) direct the driver or the person in-charge of the vehicle or carrier or of the goods not to part with the goods in any manner including by transporting or re-booking, till a verification is done or an inquiry is made, which shall not take more than seven days; and (b) seize the goods for reasons to be recorded in writing and shall give receipt of the goods to the person from whose possession of control they are seized. (5) The officer in charge of the check post or the officer empowered under sub-section (3), after having given the person in charge of the goods a reasonable opportunity of being heard and after having held such enquiry as he may deem fit, shall impose for possession or movement of goods, whether seized or not in violation of the provisions of clause (a) of sub-section (2) or for submission of false or forged documents or way bill, a penalty equal to the amount of five times of the tax, leviable on such goods, or twenty percent of the value of goods, whichever is higher. (6) During the pendency of the proceeding under sub-section (5) and anyone prays for being impleaded as a party to the case on the ground of involvement of his interest therein, the said officer in charge or the empowered officer on being satisfied may permit to be included as a party to the case; and thereafter, all provisions of this Section shall be mutatis mutandis apply to him. (7) The officer in charge of the check post or the officer empowered under sub-section (3) may release the goods to the owner of the goods or to any person duly authorised by such owner on payment of the penalty imposed under sub-section (5). (8) Where the driver or person in charge of the vehicle or the carrier is found guilty for violation of the provisions of sub-section (2), subject to the provisions of sub-section (a), the officer in charge of the check post or the officer empowered under sub- section (3) may detain such vehicle or carrier and affording an opportunity of being heard to such driver or person in charge of the vehicle or the carrier, may impose a penalty on him as provided under sub-section (5). (9) Where a transporter, while transporting goods, is found to be in collusion with dealer to avoid or evade tax, the officer in charge of the check post or the officer empowered under sub-section (3) shall detain the vehicle or carrier of such transporter and after affording him an opportunity of being heard with prior approval in writing of the Commissioner may confiscate such vehicle or carrier. *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 77. Transit Of Goods By Road Through The State And Issue Of Transit Pass :- When a motor vehicle coming from any place outside the State and bound for any other place outside the State, and carrying any taxable goods passes through the State, the driver or other person in charge of such vehicle shall obtain in the prescribed manner a transit pass from the officer in charge of the first check-post or barrier after his entry into the State and deliver it to the officer in charge of the last check post of barrier before his exit from the State failing which it shall be presumed that the goods carried thereby have been sold within the State by the owner or person in charge of the vehicle : Provided that where the goods carried by such vehicle are, after their into the State transported outside the State by any other vehicles or conveyance, the onus of proving that the goods have actually moved out of the State shall be on the owner or person in charge of the vehicle. Explanation- In a case where a vehicle owned by a person is hired for transportation of goods by some other person, the hirer of the vehicle shall, for the purposes of this section, be also deemed to be the owner of the vehicle. 78. Automation :- (1) The Government shall endeavor to introduce and establish an automated data processing system for complementing the purposes of the Act and for incidental and allied matters. (2) In order to make effective the said system, the State Governments may from time to time make Resolutions for regulating the interactions between the dealers, authorities appointed or constituted under the Act and the Government Treasury. (3) The Regulation shall be published in the Official Gazette and may be made retrospective to any date not earlier than 1st April [2005.]* *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 79. Power To Collect Statistics :- (1) If the Commissioner considers that for the purposes of the better administration of this Act it is necessary so to do, he may by notification in the Official Gazette, direct that statistics be collected relating to any matter dealt with, by or in connection to this Act. (2) Upon such direction being made, the Commissioner or any person or persons authorised by him in this behalf may by notification in the Official Gazette; and if found necessary by notice in any newspapers or in such other manner as in the opinion of the Commissioner or the said person, is best calculated to bring the notice to the attention of dealers and other person or persons, call upon all dealers or any class of dealers or persons to furnish such information or returns as may be stated therein relating to any matter in respect of which statistics are to be collected. The form in which, the persons to whom or, the authorities to which, such information or returns should be furnished, the particulars which they should contain, and the intervals in which such information or returns should be furnished, shall be such as may be prescribed. (3) Without prejudice to the generality of the foregoing provisions, the Government may by rules provide that every registered dealer or, as the case may be, any class of registered dealer shall furnish, in addition to any other returns, provided for elsewhere, an annual return in such form, by such date and to such authority as may be prescribed and different provisions may be made for different classes of registered dealers. 80. Registration Of Transporters :- For carrying out the purpose of Section 75 and 76 every transporter, carrier or transporting agent, operating its transport business relating to taxable goods in Meghalaya, shall be required to obtain a Certificate of Registration in the prescribed mariner from the Commissioner or any Officer appointed under Section 25 to assist him, on payment of such fees as may be prescribed. 81. Maintenance Of Accounts By Transporter, Carrier Or Transporting Agent :- Notwithstanding anything contained in any other law for the time being in force, any transporter, carrier or transporting agent shall maintain, in the prescribed form, proper accounts of taxable goods transported by him into, or outside, or within Meghalaya, on account of any person or dealer, being a consignee or consignor, as the case may be, and shall, on demand by the Commissioner furnish such information as may be required by him in relation to transport of such goods by such transporter, carrier or transporting agent. 82. Inspection, Search And Seizure Of Records Or Documents :- (1) The accounts referred to in Section 81, and goods referred to in that Section and stored in a godown or warehouse in Meghalaya, shall be open to inspection by the Commissioner at all reasonable time. (2) Where any transporter, carrier or transporting agent fails to maintain proper account in the prescribed form or fails to furnish information to the Commissioner as required by sub-section (1), the Commissioner may enter and search any place of transporting business or any other place where such transporter, carrier or transporting agent for the time being keeps any records or documents in relation to transport of goods, and the Commissioner may, for reasons to be recorded in writing seize such records or documents. (3) Where any transporter, carrier or transporting agent has-- (a) received any consignment of taxable goods from any person or dealer in Meghalaya for transport of such consignment to any place outside, or within, Meghalaya; or (b) transported into Meghalaya any consignment of taxable goods on account of any person or dealer, and the Commissioner has information that such person or dealer is not in existence at the address given in the way bill, tax invoice, consignment note or any document of like nature in respect of any consignment of goods referred to in clause (a), or clause (b), the Commissioner may direct the transporter, carrier or transporting agent, by order in writing, that-- (i) the consignment of goods referred to in clause (a) shall not be transported outside, or within, Meghalaya; or (ii) the consignment of goods referred to in clause (b) shall not be delivered, till the matter is investigated into by the Commissioner or till a period of fifteen days (excluding Sunday or a public holiday, declared under the Negotiable Instruments Act, 1881 (26 of 1881) expires from the date of communication of such direction to the transporter, carrier or transporting agent, whichever is earlier. (4) Where the Commissioner, after giving the person or dealer referred to in clause (a), or clause (b), as the case may be, of sub- section (3), a reasonable opportunity of being heard or after causing an enquiry about the existence of such person, or dealer, is satisfied that such person or dealer-- (a) is in existence at the address given in the way bill, tax invoice, invoice, consignment note or any document of like nature, the Commissioner shall forthwith withdraw, by an order in writing, his direction issued under this sub-section (4) to the transporter, carrier or transporting agent; or (b) is not in existence at the address given in the way bill, tax invoice, invoice, consignment note or any document of like nature, the transport of the consignment of taxable goods by such person or dealer to any place outside, or within, or into, Meghalaya, shall be deemed to be in contravention of the provisions of Section 76 as t h e case may be, and the Commissioner shall seize such consignment of goods under sub-section (1)(c) of Section 84. 83. Survey :- (1) With a view to identify dealers who are liable to pay tax under the Act, but have remained unregistered, the Commissioner shall from time to time cause a survey of unregistered dealers to be taken. (2) For the purpose of the survey, the Commissioner may by general or special notice required any dealer or class of dealers to furnish the names, addresses and such other particulars as he may find necessary relating to the persons and dealers who have purchased any goods from or sold any goods to such dealer or class of dealers during any given period. (3) For the purposes of survey, the Commissioner may call for details and particulars regarding the services provided by public utilities and financial institutions including banking companies which he is of the opinion will be relevant and useful for the purposes of the survey. He may from time to time cause the results of the survey to be published in any manner that he thinks fit so however as not to disclose or indicate the identity of any particular unregistered dealer identified during the survey. (4) The Commissioner may for the purposes of the survey enter any place where a person is engaged in business but is unregistered or has not applied for grant of the certificate of registration, whether such place will be principal place of business or not of such business and require any proprietor, employee or any other person who may at that time and place be attending in any manner to, or helping in, the business-- (i) to afford him the necessary facility to inspect such books of accounts or other documents as he may require and which may be available at such place; (ii) to afford him the necessary facility to check and verify the cash, stocks or other valuable article for things which may be found there in; and (iii) to furnish such information as he may require as to any matter which may be useful for, or relevant to any proceedings under this Act. Explanation- For the purposes of this sub-section, a place where the person is engaged in business will also include any other place in which the person engaged in business or the said employee or other person attending or helping in business states that any of the books of accounts or other documents or any part of the cash, stock or other valuable article or things relating to the business are or is kept. (5) The Commissioner shall enter the place where the person is carrying on business only during the hours at which such place is open for business and in case of the said or any other place only after sunrise and before sunset. The Commissioner may make or cause to be made extracts or copies from books of accounts and other documents inspected by him, make an inventory of any cash, stock or other valuable article or thing checked or verified by him, and record the statement of any person which may be useful for, or relevant to, any proceeding under this Act. (6) The Commissioner, in exercise to the powers under this Section shall on no account, remove or cause to be removed from the place where he has entered any books of accounts other documents or any cash, stock or other valuable article or thing. CHAPTER 9 Accounts, Inspection, Search and Seizure and Power to Call For Information 84. Inspection, Search And Seizure :- (1) In order to enforce provisions of this Act, the Commissioner or any officer authorised by the Commissioner- (a) shall have, at all time during normal working hours and at all reasonable times without any prior notice to any person full and free access to any premises, place, goods, books, records, computer or any electronically stored data; ( b ) may make an extract or copy from any book, record or computer-stored information to which access is obtained under clause (a); (c) may seize and confiscate any goods not accounted for and seize any books or records that, in his opinion, affords evidence that may b e material in determining the liability of any person under this Act; (d) may retain any such book or record for a period of one month for determining a persons liability or for any proceeding under this Act; in the event this period needs to be extended the permission of the next higher authority must be obtained for each additional month the book or record is retained; and (e) may, where a hard copy or computer disk of information stored on a computer is not provided, seize and retain the computer for a period of one month to copy the information required; in the event this period needs to be extended the permission of the next higher authority must be obtained for each additional month such record is retained. (2) No officer shall exercise the power under sub-section (1) of this Section of this Act in respect of residential premises not being shop o r business premises without authorization in writing from the Deputy Commissioner. (3) The owner, manager, or any other person on the premises or at the place entered or proposed to be entered under this Section shall provide all reasonable facilities and assistance for the effective exercise by the Commissioner or any Officer of the powers under this Section of this Act. (4) A person whose books, records, or computer have been removed and retained under sub-section (1) of this Section of this Act may examine them and make copies or extracts from them during regular office hours under such supervision as the Commissioner or authorised officer may determine. (5) The Commissioner or any officer authorised by the Commissioner may, by notice in writing require any person, whether or not liable to pay tax under this Act-- (a) to furnish any information that may be required by the notice; or (b) to attend at the time and place designated in the notice for the purpose of being examined on oath by the Commissioner of by any officer authorised by the Commissioner, concerning the tax affairs of that person or any other person, and for that purpose the Commissioner or any authorised officer may require the person examined to produce any book, record, or computer-stored information in the control of the person. (6) Where the notice requires the production of a book of record, it is sufficient if that book or record is described in the notice with reasonable certainty. (7) A notice duly signed and issued under this Section shall be sent to the person to whom it is directed, or left at the persons last and usual place of business or abode. (8) All books of account and documents referred to in sub-section (1) and all declaration and other relevant documents shall be preserved by the dealer for a period of not less than eight years from the end of the year to which they relate : Provided that where an assessment, reassessment, appeal, revision for any period is pending at the end of the aforesaid period of eight years such books of account, documents and declarations shall be preserved till such pending proceedings are finally disposed of. 85. Disposal Of Seized Goods :- (1) If any goods are seized under Section 82 or 84, the Commissioner or any officer authorised by the Commissioner, by an order in writing impose upon the person from whom such goods are seized, or the owner of such goods, where the particulars of the owner of such goods are available, or possession, after giving reasonable opportunity of being heard, a penalty not exceeding fifty percentum of the value of such goods as may be determine by him in accordance with rules made under this Act. (2) If the penalty is not paid by the date specified in the notice issued under sub-section (1) the Commissioner or the officer authorised by him, may in such manner and subject to such restrictions and conditions as may be prescribed, sell the goods so seized in open auction and remit the sale proceeds thereof to a State Government Treasury. (3) Notwithstanding anything contained in sub-section (2), the Commissioner may, subject to such rules as may be made under this Act, where the goods seized are-- (a) of perishable nature; (b) required to be used by specified date, sell such goods in open auction before the occurrence of, or expiry of such period as he may consider fit and proper or, if he is of the opinion that such may become unusable, unsaleable on detention, destroy such goods, if the said goods become unsaleable before the sale in open auction actually takes place. (4) The proceeds of sale of the goods under sub-sections (2) and (3) shall be applied in the prescribed manner for payment in the following order of priority-- (a) first, for incidental charges, if any, relating to auction sale of such goods; (b) secondly, for expenses, if any, for storage of such goods; (c) thirdly, for penalty imposed under sub-section (1); and (d) the balance of the proceeds of the sale, if any, shall be paid to the owner of the goods or, if his particulars are not available, to the person from whom such goods were seized upon application within one year from the date of sale or within such further period as may be allowed by the Commissioner for cause shown to his satisfaction. (5) Notwithstanding anything contained under sub-sections (1), (2) or (3), the Commissioner or any officer authorised by him may, for reason to be recorded in writing, direct release of the goods seized on such terms and conditions as he may deem fit. 86. Audit Of Accounts :- (1) Where in any particular year, the gross turnover of a dealer exceeds such other amount as the Commissioner may, by a notification in the official Gazette specify, then such dealer shall get his accounts, in respect of that year audited by an accountant within six months from the end of that year and obtain a report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed. (2) A true copy of such report shall be furnish by such dealer to the Commissioner by the end of the month after expiry of the period of six months during which the audit would have been completed. (3) If any dealer liable to get his accounts audited under sub- section (1) fails to get his accounts audited and furnish a true copy of the audit report within the time specified in sub-section (2), the Commissioner shall, after giving the dealer a reasonable opportunity of being heard impose on him, in addition to any tax payable, a sum by way of penalty equal to 01% of the turnover as he may determine the best of his judgment in his case in respect of the said period. Explanation- For the purpose of this Section, "Accountant" means a chartered Accountant within the meaning of the Chartered Accountant Act, 1949 and includes a person who by virtue of the provisions of sub-section (2) of Section 226 of the Companies Act, 1956, is entitle to be appointed to act as an auditor of Companies registered under the said Act. 87. Dealer To Declare The Name Of His Business Manager :- (1 ) Every dealer, who is liable to pay, tax and who is Hindu Undivided Family or an association of person, club or society, firm o r company, or who is engaged in business as the guardian or trustee or otherwise on behalf of another person, shall within the period prescribed, furnished a declaration in the manner prescribed stating the name of the person or persons who shall be deemed to be managers or managers of such dealers business for the purposes of this Act. (2) Such declaration shall be furnished at the time of registration, wherever applicable and shall be revised from time to time. ( 3 ) The statement furnished under this sub-section shall also contain the name and address with designation in relation to the business of such persons who are authorised to receive notice and other documents under this Act and such service on whom shall be binding on the dealer. 88. Compulsory Issue Of Tax Invoice, Cash Memo Or Bill :- (1) If a registered dealer sell any goods to any person, he shall issue to the purchaser a serially numbered tax invoice in the prescribed form, signed and dated by him or his regular employee showing such particulars as may be prescribed, and he shall also keep a counterfoil or duplicate of such cash memorandum or bill, duly signed and dated; or (2) A dealer, not being registered dealer, whose turnover of sales has exceeded in any year fifty per centum of the taxable quantum referred to in sub-section 5 of Section 3. Sells any goods to any person, he shall issue to the purchaser a serially numbered invoice or cash memorandum or bill, signed and dated by him or his regular employee, showing such particulars as may be prescribed, and he shall also keep a counterfoil or duplicate of such cash memorandum or bill, duly signed and dated : Provided that, if the State Government is of the opinion that the requirement under this Section shall cause hardship to a certain class or classes of dealers included in sub-section (2) and that such requirement should, subject to fulfillment by any class or classes of dealers of certain conditions and restrictions to be imposed to ensure that there is no evasion of tax, be dispensed with, it may prescribe by rules such class or classes of dealers and such conditions and restriction subject to which the requirement of sub- section (2) in respect of such class or classes of dealers shall be dispensed with. 89. Electronic Record :- Every dealer who maintains the records electrically shall retain them in electronically readable format for the period specified in [Section 84 (8)]* *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. CHAPTER 10 Offences And Penalties 90. Offences And Penalties :- [(I) Whoever,-- (i) being liable to pay tax under this Act carries on business as a dealer without getting himself registered under Section 31; or (ii) not being a registered dealer, falsely represents while making any sale or purchases of goods that he is a registered dealer under this Act; or (iii) being a registered dealer, falsely represents when purchasing any class of goods that goods of such class are covered by the certificate of registration; or (iv) carries on or continues to carry on business as a dealer without furnishing the security demanded under Section 33 of this Act; or (v) fails to furnish without reasonable cause, return of his turnover under the provision of this Act; or (vi) fails to pay without reasonable cause, the tax payable under sub-section (1) of Section 35 or under any notice of demand issued under Section 47 within the time allowed and in the manner prescribed; or (vii) furnishes a false return of turnover or a false statement of declaration under this Act; or (viii) concealed the particulars of his turnover or deliberately furnishes inaccurate particulars of such turnover; or (ix) evaded in any way the liability to pay tax; or (x) issues a false sale invoice or bill or cash memo or false transport memo or challan or transfer invoice; or (xi) fails or neglects to issue sale invoice or bill or cash memo; or (xii) falsely avails credit of input tax; or (xiii) fails to keep true and proper accounts or records of sales or purchases or to produce such account before the prescribed authority or to preserve such accounts or records and to furnish any information in accordance with the provision under this Act; or (xiv) knowingly prepares of produces incorrect accounts, registered or documents or furnishes incorrect information; or (xv) refuses to permit or prevents or obstructs in any manner, prescribed authority under this Act, to enter, inspect and search the business place or any other place where any goods, accounts, registers or other documents are believed to be kept or refuses to display materials in a computer or in a computer floppy or refuses to allow copies or print out of the material in a computer or its floppy to be taken in accordance with the provisions of this Act; or (xvi) prevents or obstructs, in any manner, any officer empowered under this Act to seize the goods or the accounts, registered or other documents or to perform other function under this Act or the Rules framed there under; or (xvii) prevents or obstructs any officer-in-charge or a check post or barrier or weigh-bridge established under the provisions of this Act from making any entry or inspection of goods or in intercepting, detaining or searching any vehicle or boat transporting goods; or (xviii) imports into or exports from the State and furnishes incorrect or fictitious names or addresses of consignors or consignees or incorrect particulars of goods in the documents accompanying the goods while such goods are in transit; or (xix) fails to deduct tax at source as required under Section 106, shall without prejudice to his liability under any law for the time being in force and in addition to the tax or any other dues recoverable under this Act, on conviction, be punishable with simple imprisonment which may extend to six months or with fine not exceeding rupees ten thousand or with both.]* *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 91. Offence By Transporter :- Whosoever, being a transporter fails to get himself registered as transporter under Section 80 or fails to maintain proper accounts as required under Section 81 of this Act shall without prejudice to his liability under any law for the time being in force and in addition to the tax or any other dues recoverable under this Act, on conviction, be punishable with simple imprisonment which may extend to six months or with fine not exceeding rupees ten thousand or with both]*. *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 92. Offences By Companies :- (1) Where an offence under this Act or the rules has been committed by a company, every person who at the time the offence was committed, was in charge of, and was responsible to the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall liable to be proceeded against and punished accordingly : Provided that, nothing contained in the sub-section shall render any such person liable to any punishment: provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is prove that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation- For the purpose of this Section- (a) "company" means a body corporate, and includes a firm or other association of individuals; and (b) "director" in relation of a firm means a partner in the firm. (3) Where an offence under this Act has been committed by a Hindu undivided family, the Karto thereof shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly : Provided that nothing contained in this sub-section shall render the Karto liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence : Provided further that, where an offences under this Act has been committed by a Hindu Undivided Family and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any adult member of the Hindu undivided family, such member shall also be deemed to be guilty of that offence and shall be liable to be proceed against and punished accordingly. 93. Cognizance Of Offences :- Notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences punishable under this Act or Rules made there under shall be cognizable and bailable. 94. Imposition Of Fine :- Notwithstanding anything contained in the Code of Criminal Procedure, 1973, it shall be lawful for the Metropolitan Magistrate or Magistrate of the First Class in pass on any person convicted of an offence under Section 76 or a sentence of fine as provided in the relevant Section, in excess of his power under Section 29 of the said Code. 95. Investigation Of Offences :- (1) Subject to the conditions, if any, as may be prescribed, the Commissioner may be authorize either generally or in respect of a particular case or class of cases, any officer or person subordinate to him to investigate all or any of the offences punishable under this Act. ( 2 ) Every officer so authorised shall, in the conduct of such investigation, exercise the power conferred by the Code of Criminal Procedure, 1973 upon an officer in charge of a police station for the investigation of a cognizable offence. 96. Compounding Of Offences :- (1) The Commissioner may either before or after the institution of proceedings for any offence punishable under Section 90 or under any rules made under this Act, accept from any person charged with such offence by way of composition of offence a sum not exceeding five thousand rupees or double the amount of tax which would have been payable on the sale or purchase turnover to which the said offence relates, whichever is greater. (2) On payment of such sum as may be determined the Commissioner under sub-section (1), no further proceedings shall be taken against the accused person in respect of the same offence and any proceedings, if already taken, shall stand abated. 97. Remission :- (1) The State Government, for reasons to recorded in writing, may remit the whole or part of the amount of the tax or penalty payable in respect of any period by any registered dealer who has suffered heavy loss due to any natural calamity. (2) The State Government, may, by rules, provide that in such circumstances and subject to such conditions as may be prescribed, a draw back; set off, or a refund of the whole or any part of the tax paid in respect of any purchase of raw materials under this Act for use by any dealer in the manufacture of goods for sale, be granted to such dealer. CHAPTER 11 Miscellaneous 98. Power Of Taking Evidence On Oath, Etc :- (1) The Authorities specified in Chapter III of this Act shall for the purpose of this Act, have fee same power as are vested in a court under the Code of Civil Procedure, 1908 (Act No 5 of 1908) when trying a suit in respect of the following matters, namely-- (a) discovery and inspection; (b) enforcing the attendance of any person including any officer of a banking company and examining him on oath or affirmation; (c) compelling the production of books of account or other documents; (d) issuing commission. (2) Subject to any rules made in this behalf, any authority referred to in sub-section (1) may impound or retain in his custody for such period as he may think fit any books of account or other documents produced before him in proceeding under this Act : Provided that a person appointed to assist the Commissioner under sub-section (1) of Section 25 shall not-- (a) impound any books of account of other documents without recording his reasons for doing so; or (b) retain in his custody any such books or documents for a period exceeding thirty days (exclusive of holidays) without obtaining the approval of the Commissioner thereof. 99. Returns Etc. To Be Confidential :- (1) All particulars contained in any statement made, return furnished or accounts or documents produced in accordance with this Act, or in any record of evidence given in the course of any proceedings under this Act, other than the proceeding before a criminal court, shall save as provided in sub-section (3) be treated as confidential and notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872), no court shall save as aforesaid be entitled to require any Government Servant to produce before it any such statement returns, accounts, documents, or records or any part thereof or to give evidence before it in respect thereof. (2) If save as provided in sub-section (3) any Government Servant discloses any of the particular, referred to in sub-section (1). He shall be punishable with imprisonment which may extent to six months and shall also be liable to fine. (3) Nothing in this Section shall apply to the disclosure of any of the particulars referred to in sub-section (1)-- (a) for the purposes of any prosecution under the Indian Penal Code (45 of 1860), the Prevention of Corruption Act, 1988 (49 of 1988) or this Act, or any preliminary inquiry for ascertaining whether such prosecution lies; (b) in connection with any such or proceeding in a civil court to which the State Government or any person appointed under this Act is a party and which relates to any matter arising out of any proceeding under this Act; (c) where it is necessary to make such disclosure for the purpose of this Act; (d) to an officer of Government to levy or realize any tax or duty imposed by it; (e) to an officer of Government for the audit of receipts and refunds of tax, penalty or interest under this Act; (f) in connection with an inquiry concerning allegations of corruption or official misconduct against any Government for the audit of receipts and refund of tax, penalty or interest under this Act; (g) in any inquiry into a charge of misconduct in connection with any proceeding under this Act, against any legal practitioner, chartered accountant or other person entitled to appeal on behalf of a dealer or person before the taking authorities under this Act, to the authority competent to take disciplinary action against such legal practitioner, chartered accountant or other person; (h) to any officer of the State Government to enable such, officer to perform his executive functions in relation to the affairs of the State; (i) to any person for the purposes other than those referred to in clause (a), clause (b), clause (c), clause (d), clause (g) and clause (h), if the State Government considers such disclosure necessary in the public interest. 100. Disclosure Of Information Required Under Section 79 And Failure To Furnish Information Or Return Under That Section :- (1) No information of any individual return or part thereof, with respect to any matter given for the purposes of Section 79 shall without the previous consent in writing of the owner for the time being or his authorised agent be published in such manner as to enable any particulars to be identified as referring to a particular dealer and no such information shall be used for the purpose of any proceedings under the provisions of this Act. (2) Except for the purposes of prosecution under this Act, or any other Act, no person who is not engaged in the collection of statistics under this Act, or of compilation or computerization thereof for the purposes of administration of this Act, shall be permitted to see or have access to any information or any individual return referred to in that Section. (3) If any person required to furnish any information or return under Section 79-- (a) willfully refuses or without lawful excuse neglects to furnish such information or return as may be by that Section required; or (b) willfully furnishes or causes to be furnished any information or return which he knows to be incorrect or false. shall on conviction be punished with fine which may extend to be one thousand rupees and in case of a continuing offence to a further fine which may extend to one hundred rupees for each day after the first day during which the offence continues. (4 ) If any person engaged in connection with the collection of statistics under [Section 79]* or compilations or computerizations thereof willfully discloses any information or the contents of any return given or made under that Section, otherwise than in execution of his duties under that Section or for the purposes of the prosecution of an offence under this Act or under any other Act, shall on conviction be punished with imprisonment for a term which may extend to six months or with fine which may extend to one thousand rupees, or with both. Nothing in this Section shall apply or publication of any information relating to a class of dealers or class of transactions, if in the opinion of the Commissioner, it is desirable in the public interest, to publish such information. *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 101. Publication And Disclosure Of Information Respecting Dealers And Other Persons In Public Interest :- (1) Notwithstanding anything contained in this Act, if the State Government is of the opinion that it is necessary or expedient in the public interest to publish or disclose the name of any dealers or other persons and any of the particulars relating to any proceedings under this Act in respect of such dealers and persons, it may publish or disclose or cause to be published or disclose such names and particulars in such manner as it thinks fit. (2) No publication or disclosure under this Section shall be made in relation to any tax levied or Penalty imposed or interest levied or any conviction for any offence connected with any proceeding under this Act, until the time for presenting an appeal to the appropriate appellate authority has expired without an appeal having been presented or the appeal, if presented has been disposed of. Explanation- In the case of a firm, company or other association of person, the names of the partners of the firm, the directors, managing agents, secretaries, treasurers or managers of the company or the members of the association, as the case may be, may also be published or disclosed, if, in the opinion of the Government, the circumstances of the case justify it. 102. Statement To Be Furnished By Dealer, Transporter, Owner Or Lessee Of Warehouse, Etc :- If, in the opinion of the State Government, there is appreciable evasion of tax in respect of any goods, the State Government may, by notification, specify such goods and therupon every person dealing in transporting, carrying, shipping of clearing, forwarding or warehousing, whether as owner or lessee of warehouses, such goods, shall furnish a statement or declaration in such form, within such time, in such manner, and for such period, as may be specified in the notification. 103. Information To Be Furnished By Dealers Regarding Changes Of Business :- If any dealer-- (a) sells or otherwise disposes of his business or any part of his business or effect or comes to know of any change in the ownership of his business, or discontinues his business or changes his place of business or opens a new place of business; or (b) discontinues or changes his warehouses or open new warehouses, or changes the name or nature of his business or effects any change in the class or classes of goods in which he carries on his business and which is or are specified in his certificate of registration; or (c) in the case of a company, effect any change in the constitution of its board of directors he shall, within the prescribed time and in the prescribed manner, inform the prescribed authority accordingly and if any such dealer dies, his legal representative shall, in the like manner, inform the said authority. 104. Statements, Accounts Or Declarations To Be Furnished By Dealers :- (1) Every registered dealer shall, in the manner as may be prescribed, submit before the prescribed authority such statements, accounts or declarations within such time as may be prescribed and shall verify that such statements, accounts or declaration are true to the best of his knowledge and belief. (2) If a registered dealer fails to submit statements, accounts or declarations referred to in sub-section (1), he shall be liable to pay a penalty not exceeding Rupees twenty five thousand for each time of default, in the manner as may be prescribed. 105. Information To Be Furnished By Dealers In Respect Of Transfer Of Goods Otherwise Than By Way Of Sale :- If, in the opinion of the State Government, it is necessary to obtain information relating to transfer of goods otherwise than by way of Sale in Meghalaya it may by notification call upon dealers or such class or classes of dealers as may be specified. In the notification to furnish such information relating to such goods, in such manner, at such intervals, for such period and to such authority as may be specified in the notification. 106. Special Provisions Relating To Deduction Of Tax At Source :- Notwithstanding anything contained in any other provisions of this Act- (1) Every person (excluding an individual, Hindu undivided family, a firm or a company not under the control of the Government) responsible for making any payment or discharging any liability on account of any amount payable for the transfer of property in goods (whether as goods or in some other form) involved in a work contract for the transfer of the right to use any goods for any purpose; or (2) Every person responsible for paying sale price or consideration o r any amount purporting to be the full or part payment of sale price or consideration in respect of any sale or supply of goods liable to tax under this Act to the Government or to a company, corporation, board, authority, under taking or any other body by whatever name called, owned, financed or controlled wholly or substantially by the Government shall at the time of credit to the account of or payment to the payee of such amount in cash, by cheque, by adjustment or in any other manner whatsoever, deduct tax there from in the prescribed manner at the rate specified in the Schedule to the Act in respect of sale or supply of goods or transfer of the right to use any goods ["and in respect of work contract at the rate of 12.5% after allowing percentage of deduction from the work value as prescribed in Schedule IV -A appended to the Act"]*: Provided that no deduction shall be made under this sub-section where the amount paid or credited by such person in any financial year does not exceed the prescribed amount [or where the dealer produces a certificate as prescribed from the Commissioner that he has no liability to pay tax or that he has paid tax payable by or due from him]*. (3) Any tax deducted under [sub-section (2)]* shall be paid to the account of the State Government in such manner and within such time as may be prescribed. (4) The person making any deduction of tax under [sub-section (2)]* and paying it to the account of the State Government shall issue a certificate of tax deduction to the payee in such manner in such form and within such time as may be prescribed. (5) Any tax deducted under [sub-section (2)]* and paid to the account of the State Government shall, on production of the certificate of tax deduction under [sub-section (4)]* by the payee be deemed to be tax paid by the payee for the relevant period and shall be given credit in his assessment accordingly. (6) No interest or penalty shall be imposed or no recovery proceedings against the dealer/payee shall be initiated in respect of tax deducted under [sub-section (2)]*. [Deleted]* *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 107. Application Of The Meghalaya Land Revenue Regulation Act For Recovery Of Tax Recoverable As Arrear Of Land Revenue :- Where the amount of tax, interest, penalty or other sum payable under sub-section (1) of Section 48 remains unpaid, it may be recovered as an arrear of land revenue and for this purpose the State Government may by notification in the Official Gazette empower the Commissioner or any person appointed to assist the Commissioner under sub-section (1) of Section 25 to exercise the power under the Meghalaya Land Revenue Regulation Act (Assam Land and Revenue Regulation, 1886 as adapted) for the purpose of recovering the sums. 108. Bar To Proceeding In Civil Courts :- No suit shall be brought in any civil court to set aside or modify any assessment made or any order passed under this Act or the rules made there under and no prosecution, suit or other proceeding shall lie against the Government or any officer of the Government for anything in good faith done or intended to be done under this Act or the rules made there under. 109. Power Of State Government To Prescribed Rates Of Fees :- (1) Fees payable upon a memorandum of appeal or application for review or revision, or upon any other miscellaneous application or petition for relief shall be such as may be prescribed : Provided that any fees prescribed under this Section shall not exceed one thousand rupees. (2) The fees as aforesaid shall be paid in court-fee stamps to be affixed to the memorandum of appeal, application for review or revision or other miscellaneous application or petition, as the case may be, referred to in sub-section (1). 110. Application Of Section 4 And 12 Of Limitation Act :- I n computing the period of limitation under [Chapter VI]*, the provisions of Secs. 4 and 12 of the Limitation Act, 1963 shall, so far as may be, apply. *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 111. Appearance Before Any Authority In Proceedings :- (1) Any person who is entitled or required to attend before any Authority including the Appellate Tribunal in connection with any proceeding under this Act, otherwise than when required to attend personally for examination on oath or affirmation, may attend-- (a) by a relative or a person regularly employed by him; or (b) by a legal practitioner, or Chartered Account who is not qualified by or under sub-section (2); or (c) by a sales tax practitioner who possesses the prescribed qualifications and is entered in the list which the Commissioner shall maintain in that behalf, and who is not disqualified by or under sub-section (2); (d) Any person who, immediately before the commencement of this Act was a sale tax practitioner under any earlier law. only if such relative, person employed, legal practitioner, Chartered Accountant, or sales tax practitioner is authorized by such person in the prescribed form, and such authorisation may include the authority to act on behalf of such person in such proceedings. (2) The Commissioner may by order in writing and for reasons to be recorded therein disqualify for such period as is stated in the order from attending before any such authority, any legal practitioner, Chartered Accountant, or sales tax practitioner-- (i) who was been removed or dismissed from Government service; or (ii) who being a sales tax practitioner, a legal practitioner or a Chartered Accountant is found guilty of misconduct in connection with any proceedings under this Act by the Commissioner or by an authority, if any, empowered to take disciplinary action against the member of the profession to which he belongs. (3) No order of disqualification shall be made in respect of any particular person unless he is given a reasonable opportunity of being heard. (4) Any person against whom any order of disqualification is made under this Section may within one month of the date of communication of such order, appeal to the Tribunal to have the order cancelled or modified. The order of the Commissioner shall not take effect until one month of the making thereof or when an appeal is preferred until the appeal is decided. (5) The Commissioner may, at any time suo moto or on application made to him in this behalf, revoke or modify any order made against a person under sub-section (2) and thereupon such person shall cease to be disqualified subject to such conditions or restrictions that may be contained in such order. 112. Power Of State Government To Amend Schedules :- (1) If the State Government is of the opinion that it is expedient in the interest of general public so to do, it may, by notification in the Official Gazette, add to, or omit from, or otherwise amend, the First, the Second, the Third, the Fourth, the Fifth, or the Sixth Schedule retrospectively and thereupon the said Schedule shall be deemed to have been amend accordingly. (2) The State Government may amend the said Schedules restrospectively if such amendment does not prejudicially affect the interest of any dealer and it does not violate the principles of equity. 113. Power Of State Government To Make Rules :- (1) The State Government may, by notification, make rules with prospective or retrospective effect, for carrying out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the matters which under any provision of this Act are required to be prescribed or to be provided for by the rules. (3) In making any rules under this Section, the State Government may direct that a breach thereof shall be punishable with fine not exceeding five hundred rupees and, when the offence is a continuing one, with a daily fine not exceeding twenty-five rupees during the continuance of such offence. 114. Power Of State Government To Remove Difficulties :- I f any difficulty arises in giving effect to any of the provisions of this Act, the State Government may, by order, not inconsistent with the provision of this Act, remove the difficulty : Provided that no such order shall be made after the expiry of a period of two years from the appointed day. 115. Clearance Certificate :- (1) Notwithstanding anything contained in any other law for the time being in force no Government, local authority, educational institution, or corporation or body corporate established by or under a Central or State Act shall enter into any works contract or place order with, or make purchases of any goods from, any dealer or make any payment to such dealer for such purchases, unless the Commissioner certifies in the prescribed manner that such dealer- (i) has no liability to pay tax or has not defaulted in furnishing any return or returns together with the receipted challan or challans showing payment of all taxes payable under this Act or the Central Sales Tax Act, 1956 (74 of 1956); (ii) has not defaulted in making payment of tax otherwise payable by, or due from, him under this Act or the Central Sales Tax Act, 1956 (74 of 1956); or (iii) has made satisfactory provision for securing the payment of tax by furnishing bank guarantee in favour of the Commissioner or otherwise, as the case may be. (2) The application for the certificate required under sub-section (1) shall be made by the dealer referred to in that sub-section to the Commissioner and shall be in such form and shall contain such particulars as may be prescribed. CHAPTER 12 Transition, Repeal and Savings 116. Transition :- (1) Any registration certificate issued under the Meghalaya (Sales Tax) Act, the Meghalaya Purchase Tax Act, being a registration certificate enforce immediately before the appointment day shall in so far as the liability to tax under sub-section (1) of Section 3 of this Act exists, be deemed on the appointed day to be the certificate or registration issued under the Act, and accordingly the dealer holding such registration certificate immediately before the appointment day, shall until the certificate is duly cancelled, be deemed to be a dealer liable to pay tax under this Act and to be registered dealer under this Act and all the provisions of this Act shall apply to him as they apply to a dealer liable to pay tax under this Act. (2) Notwithstanding anything contained elsewhere in this Act-- (a) Any person appointed as the Commissioner, [Deputy]* Commissioner or Assistant Commissioner, or any person appointed to assist the Commissioner, under the repealed Act and continuing in the office immediately before the appointed day, shall, on and from the appointed day, be deemed to have been appointed under this Act and shall continue in office as such till such person ceases to be the Commissioner, ["Deputy"]* Commissioner or Assistant Commissioner or ceases to be the person appointed to assist the Commissioner. (b) Any dealer liable to furnish return under the repealed Acts immediately before the appointed day shall notwithstanding that a period, in respect of which he is so liable to furnish return, commences on and day before such appointed day and ends on any day after such appointed day, furnish such return in respect of tax payable for sales or purchases made up to the day immediately before such appointed day and pay tax in accordance with the provisions of repealed Act, and shall furnish a separate return in respect of the remaining part of the period which commences on such appointed day pay tax due on such return for sales or purchases made on and from such appointed day in accordance with the provisions of this Act; (c) Any order delegating any power under any Act or the rules made there under by the Commissioner to any person appointed, by any designation, to assist him before the appointed day shall, on and from such appointed day, continue in force on the day immediately before such appointed day, on and from such appointed day, continue in force until the Commissioner amends, varies or rescinds such order after such appointed day under this Act; (d) Any dealer, who is no longer liable to pay tax under the repealed Act and whose account, registers or documents has been seized under that Act, shall, continue to be retained in accordance with provisions of that Act on or after appointed day; (e) All forms of waybill under the repealed Act or the Rules made there under and continuing in the force on the day immediately before the appointed day shall, with effect from such appointed day, continue in force and shall be used mutatis mutandis for the purpose for which they were being used before such appointed day until the State Government directs, by notification, the discontinuance of the use of such forms till such time as the State Government may, by notification, specify in this behalf; (f) All rules, regulations, notifications or orders made or issued under any of the repealed Act and continuing in force on the day immediately before the appointed day shall continue to be in force on or after such appointed day in so far as they are not inconsistent with the provisions of this Act or the rules made there under until they are repealed or amended; (g) Where a tax has been levied under any of the provisions of the repealed Act in respect of the sale or purchase of declared goods within the meaning of the Section 14 of the Central Sales Tax Act, 1956 (74 of 1956), or any goods specified in Schedule IV before the appointed day, no tax shall be levied under this Act on sale or purchase of such goods on or after appointed day; (h) Any waybill obtained or obtainable by the dealer from any prescribed authority or any declaration furnished or to be furnished by or to the dealer under any of the Acts so repealed or the rules made thereunder in respect of any sale of goods before the appointed day shall be valid where such waybill is obtained or such waybill is furnished on or after such appointed day; (i) Any application for review or reference arising from any order passed before the appointed day or any appeal arising from any assessment of tax or determination of interest made before such appointed day or any application for refund, or for waybill, in respect of any period before such appointed day under the repealed Act if made before such appointed day and pending on such appointed day or if made on or such appointed day, shall be disposed or in accordance with the provisions of the repealed Act; (j) The Commissioner or any other authority to whom power in this behalf has been delegated by the Commissioner under the repealed Act may on its or his own motion, review or revise any order passed before the appointed day in accordance with the provision of that Act; (k) Any application for the waybill, for the transport of the goods in t o the State, pending on the day immediately before the appointed day, shall be deemed to have been made under this Act and shall be disposed of in accordance with the provisions of this Act; (l) Any tax assessed, interest determined or penalty imposed under the repeal Act in respect of sales or purchase made, or the repealed Act before the appointed day, shall be payable or recoverable in accordance with the provisions of the repealed Act. (3) Where a registered dealer was enjoying the benefit of tax exemption under the Meghalaya Industries (Sales Tax Exemption), Schemes, 2001 notified under the provisions of the repealed Acts, for a specified period immediately before the appointed day and who would have continued to be so eligible on such appointed day under the Schemes had this Act not come into force, may be allowed any other benefit payable by him under this Act, [*] for the balance on-expired period in a manner to be prescribed by Govt. (4) Where an industrial unit is already in the Pipe-line and which would have enjoyed the benefit of tax exemption under the Meghalaya Industries (Sales Tax Exemption) Schemes, 2001, notified under the provisions of the repealed Acts for a specified period had the Act not come into force, may be allowed any other benefit payable under this Act for the period of entitlement in a manner to be prescribed by Govt. *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005. 117. Repeal And Savings :- [(1) The Meghalaya Sales Tax Act, the Meghalaya Finance (Sales Tax) Act, the Meghalaya Purchase Tax Act will stand repealed from the date of Notification of this Act : Provided that such repeal shall not affect the previous operation of the said Act, or any right, title, obligation or liability already acquired, accrued or incurred there under and subject thereto, anything done or any action taken including any appointment, notification, notice, order, rule, form or certificate in the exercise of any powers, conferred by or under the said Acts shall be deemed to have been done or taken in the exercise of the powers, conferred by or under this Act, as if this Act were in force on the date on which such thing was done or action was taken, and all arrears of tax and other amounts due at the commencement of this Act may be recovered as if they had accrued under this Act. The limitation provided in this Act shall apply prospectively, and all events occurred and all issues arose prior to the date of commencement of this Act, shall be governed by the limitations provided or the provisions contained in the repealed Acts. [(2) Nothing in the Meghalaya (Sales Of Petroleum and Petroleum Products, including Motor Spirit And Lubricants) Taxation Act shall apply in relation to goods which are governed by the Meghalaya Value Added Tax Act, 2003 on and from the appointed day]*. *. As Amended by the Meghalaya Value Added Tax (Amendment) Act, 2005.