58. Service of notice when family is disrupted or firm is dissolved.—(1) Where a Hindu undivided
family has been partitioned, notices under this Act may be served on the person who was the last manager
of the Hindu family, or if such person cannot be found, then on all adults who were members of the Hindu
family, immediately before the partition.
(2) Where a firm or an association of persons is dissolved, notices under this Act may be served on
any person who was a partner (not being a minor) of the firm, or member of the association, as the case
may be, immediately before its dissolution.
59. Service of notice in the case of discontinued business.—Where an assessment is to be made in
respect of business which has been discontinued, a notice under this Act shall be served in the case of a
firm or an association of persons on any person who was a member of such firm or association at the time
of its discontinuance or in the case of a company on the principal officer thereof.
60. Appearance before any authority in proceedings.—(1) Any person, who is entitled or required
to attend before any authority in connection with any proceedings under this Act, may attend,—
(a) by a person authorised by him in writing in this behalf, being a relative or a person regularly
employed by him; or
(b) by a legal practitioner or chartered accountant who is not disqualified 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).
(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 has been removed or dismissed from Government service; or
(ii) who being a legal practitioner or chartered accountant is found guilty of misconduct in
connection with any proceedings under this Act by an authority empowered to take disciplinary
action against the members of the profession to which he belongs; or
(iii) who being a sales tax practitioner is found guilty of such misconduct by the Commissioner.
33
(3) No order of disqualification shall be made in respect of any particular person unless he has been
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 Administrator to have the order
cancelled.
(5) 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.
(6) The Commissioner may at any time suo motu or on an application made to him in this behalf,
revoke any order made against any person under sub-section (2) and thereupon such person shall cease to
be disqualified.
61. Change of an incumbent of an office.—Whenever in respect of any proceeding under this Act
the Commissioner or any person appointed under sub-section (2) of section 9 to assist him, ceases to
exercise jurisdiction and is succeeded by another who has and exercises jurisdiction, the person so
succeeding may continue the proceeding from the stage at which the proceeding was left by his
predecessor:
Provided that the dealer concerned may demand that before the proceeding is so continued, the
previous proceeding or any part thereof be reopened or that before any order of assessment is passed
against him, he be re-heard.
62. Extension of period of limitation in certain cases.—(1) An Appellate authority may admit an
appeal under section 43 after the period of limitation laid down in that section, if the appellant satisfies
the appellate authority that he has sufficient cause for not preferring the appeal within such period.
(2) In computing the period laid down under sections 43, 45, 46 and 47, the provisions of
sections 4 and 12 of the Limitation Act, 1963 (36 of 1963), shall, so far as may be, apply.
(3) In computing the period of limitation prescribed by or under any provision of this Act, or the rules
made thereunder, other than section 43, 45, 46 or 47, any period during which any proceeding is stayed by
an order or injunction of any court shall be excluded.
63. 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 proceedings 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 servant of the Government to produce before it any such statement, return, account, document
or record or any part thereof, or to give evidence before it in respect thereof.
(2) If, save as provided in sub-section (3), any servant of the Government discloses any of the
particulars referred to in sub-section (1), he shall be punishable with imprisonment which may extend to
six months, and shall also be liable to fine.
(3) Nothing in this section shall apply to the disclosure—
(a) of any of the particulars referred to in sub-section (1) for the purposes of investigation or
prosecution under this Act or the Indian Penal Code (45 of 1860) or any other enactment for the time
being in force; or
(b) of such facts to an officer of the Central Government or any State Government as may be
necessary for verification of such facts or for the purposes of enabling that Government to levy or
realise any tax imposed by it; or
(c) of any such particulars where such disclosure is occasioned by the lawful employment under
this Act of any process for the service of any notice or the recovery of any demand; or
34
(d) of any such particulars to a civil court in any suit or proceeding to which the Government or
any sales tax authority is a party and which relates to any matter arising out of any proceeding under
this Act or under any other law for the time being in force authorizing any sales tax authority to
exercise any powers thereunder; or
(e) of any such particulars by any public servant where the disclosure is occasioned by the lawful
exercise by him of his powers under the Indian Stamp Act, 1899 (2 of 1899), to impound an
insufficiently stamped document; or
(f) of any such particulars to the Reserve Bank of India as are required by that Bank to enable it to
compile financial statistics of international investment and balance of payment; or
(g) of any such particulars to any officer appointed by the Comptroller and Auditor-General of
India for purpose of audit of tax receipts or refunds; or
(h) of any such particulars relevant to any inquiry into a charge of misconduct in connection with
income-tax proceedings against a legal practitioner or chartered accountant, to the authority
empowered to take disciplinary action against members of the profession to which he belongs; or
(i) of such particulars to the officers of the Central Government or any State Government for
such other purposes, as the Administrator may by general or special order direct.
64. Setting up of check-posts and barriers.—(1) The Administrator may, by notification in the
Official Gazette, set up check-posts or barriers, or both, at any place in Delhi with a view to preventing
evasion of tax and other dues payable under this Act.
(2) The owner or person in charge of a goods vehicle shall carry with him a goods vehicle record, a
trip sheet or a log book, as the case may be, and a bill of sale or a delivery note containing such
particulars as may be prescribed in respect of the goods carried in the goods vehicle and produce the same
before any officer in charge of a check-post or barrier or any other officer as may be empowered by the
Administrator in this behalf.
(3) The owner or person in charge of a goods vehicle entering or leaving Delhi shall also file a
declaration containing such particulars in the prescribed form obtainable from the prescribed authority
and in such manner as may be prescribed, before the officer in charge of a check-post or barrier or before
the other officer empowered as aforesaid:
Provided that where the owner or person in charge of a goods vehicle after filing a declaration at the
time of entering Delhi that the goods are meant to be carried to a place outside Delhi, fails, without
reasonable cause, to carry such goods outside Delhi within the prescribed period, he shall, in addition to
the payment of tax, if any, be liable to a penalty not exceeding two and a half times the tax that would
have been payable had the goods been sold inside Delhi or one thousand rupees, whichever is more.
(4) At every check-post or barrier, or at any other place when so required by an officer empowered by
the Administrator in this behalf, the driver or any other person in charge of a goods vehicle shall stop the
vehicle and keep it stationary so long as may be required by the officer in charge of the check-post or
barrier or the officer empowered as aforesaid to search the goods vehicle or part thereof, examine the
contents therein and inspect all records relating to the goods carried, which are in the possession of such
driver or other person in charge, who shall, if so required, give his name and address and the name and
address of the owner of the vehicle as well as those of the consignor and consignee of the goods.
(5) If on an examination of the contents in a goods vehicle or the inspection of records relating to the
goods carried, any officer empowered by the Administrator in this behalf has reason to believe that the
owner or person in charge of such goods vehicle is attempting to evade payment of the tax due under this
Act, he may, for reasons to be recorded in writing and after hearing the owner or person in charge of the
goods vehicle, detain the goods and the goods so detained shall not be allowed to be transported unless
the owner, or his agent or the person in charge of the goods vehicle furnishes to the satisfaction of such
officer security in such form and in such manner as may be prescribed for an amount not exceeding one
thousand rupees or the amount of tax payable if such goods were sold in Delhi, whichever is more.
35
(6) Where the security required to be furnished under sub-section (5) is not furnished within the
prescribed period such goods shall be disposed of in such manner and subject to such conditions as may
be prescribed.
Explanation.—For the purposes of this section, “goods vehicle” shall include a motor vehicle, vessel,
boat, animal and any other form of conveyance.
65. Publication of names, etc., of dealers whose certificates of registration are cancelled.—The
Commissioner shall, at intervals not exceeding three months, publish in the Official Gazette such
particulars as may be prescribed of dealers whose certificates of registration are cancelled under the
provisions of this Act.
66. Exemptions.—(1) If the Administrator is of opinion that it is necessary or expedient in the public
interest so to do, he may, with the previous approval of the Central Government, exempt, by notification
in the Official Gazette, and subject to such conditions, if any, as he may impose, any specified class of
sales by any specified class of dealers from payment of the whole or any part of the tax payable under this
Act.
(2) If in respect of any sales which are exempt from payment of tax under sub-section (1), a breach of
any of the conditions subject to which such exemption was granted, is committed, the dealer responsible
for such breach shall be liable to pay tax in respect of all such sales as if no such exemption had been
granted.
67. Bar of suits 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 thereunder 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 thereunder.
68. Transfers during pendency of proceedings void.—Where, during the pendency of any
proceeding under this Act, any person creates a charge on or parts with the possession by way of sale,
mortgage, gift or exchange or any other mode of transfer whatsoever, of any of his assets in favour of
any other person, such charge or transfer shall be void as against any claim in respect of any tax or
any other sum payable by such person as a result of the completion of the said proceedings.
69. Chapter XXXVI of the Code of Criminal Procedure, 1973, not to apply to certain
offences.—Nothing in Chapter XXXVI of the Code of Criminal Procedure, 1973 (2 of 1974), shall
apply to—
(i) any offence punishable under this Act; or
(ii) any other offence which under the provisions of that Code, may be tried along with such
offence,
and every offence referred to in clause (i) or clause (ii) may be taken cognizance of by the court having
jurisdiction under this Act as if the provisions of that Chapter were not enacted.
70. Application of the provisions of the Delhi Land Reforms Act, 1954 for purposes of recovery
of sales tax recoverable as arrears of land revenue.—For the purposes of recovery of any amount
recoverable as arrears of land revenue under this Act, the provisions of the Delhi Land Reforms
Act, 1954 (Delhi Act 8 of 1954), as to recovery of arrears of land revenue shall, notwithstanding anything
contained in that Act or in any other enactment, be deemed to be in force throughout Delhi and the
provisions of the Revenue Recovery Act, 1890 (1 of 1890), shall have effect accordingly.
71. Power to make rules.—(1) The Administrator may make rules 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—
(a) the further period after the date of expiry of three consecutive years referred to
in sub-section (3) of section 3 for which liability to pay tax of a dealer shall continue;
36
(b) the particulars to be contained in a declaration under sub-clause (v) of clause (a)
of sub-section (2) of section 4, or under section 5, as the case may be, the form of such declaration,
the authority from whom such forms shall be obtainable and the manner in which and the time within
which such declaration is to be furnished.
(c) the period of turnover, the manner in which the turnover in relation to sale of any goods under
this Act shall be determined and the sales turnover which may be deducted under sub-clause (vi) of
clause (a) of sub-section (2) of section 4;
(d) the restrictions and conditions subject to which the Commissioner may delegate his powers
under section 10;
(e) the authority to whom applications for registration under sections 14, 15, 16 and 17 may be
made and the form of such applications and the fees payable in respect thereof;
(f) the procedure for and other matters incidental to registration of dealers, the granting of
certificates of registration, the period within which such certificates shall be granted and the forms of
such certificates;
(g) the intervals at which, and the manner in which, the tax under this Act shall be payable under
section 21;
(h) the returns to be furnished under sub-section (2) of section 21 and dates by which, and the
authority to whom, such returns shall be furnished;
(i) the procedure to be followed for assessment under section 23;
(j) the circumstances in which, and the conditions subject to which, a dealer may be permitted to
pay a lump sum by way of composition under section 29 and the manner of determining such sum;
(k) the form in which claims for refund or set-off may be preferred, the manner in which such
claims for refund shall be verified and the refunds or set-off under this Act shall be allowed;
(l) the authority to whom information shall be furnished under section 40;
(m) the conditions under which the production of accounts or documents or the furnishing of
information may be required under sub-section (1) of section 41;
(n) the form and manner in which, and the authority to whom, appeals against assessment may be
filed under section 43, the manner in which such appeals shall be verified and the fees payable in
respect thereof and the procedure, to be followed by such authority;
(o) the form and manner in which applications for revision under section 47 or for review
under sub-section (5) of section 48 may be filed and the fee payable in respect thereof;
(p) the conditions subject to which the Commissioner may authorise the persons appointed
under sub-section (2) of section 9 to assist him to investigate offences under sub-section (1) of
section 53;
(q) the conditions under which offences may be compounded under section 54;
(r) the manner in which, and the time within which, applications shall be made (including fees
payable in respect thereof), information furnished, securities given and notices served under this Act;
(s) any other matter which is required to be, or may be, prescribed.
(3) Any rules made under this Act may provide that a contravention thereof shall be punishable with
fine which may extend to five hundred rupees, and in the case of a continuing contravention, with an
additional fine which may extend to twenty-five rupees for every day during which such contravention
continues after conviction for the first such contravention.
72. Rules to be laid before Parliament.—Every rule made under this Act shall be laid, as soon as
may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty
days which may be comprised in one session or in two or more successive sessions, and if, before the
expiry of the session immediately following the session or the successive sessions aforesaid, both Houses
agree in making any modification in the rule or both Houses agree that the rule should not be made, the
37
rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so,
however, that any such modification or annulment shall be without prejudice to the validity of anything
previously done under that rule.
73. Repeal and savings.—(1) The Bengal Finance (Sales Tax) Act, 1941 (Bengal Act VI of 1941), as
in force in Delhi (hereinafter referred to as the said Act), is hereby repealed:
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 thereunder and subject thereto, anything done
or any action taken including any appointment, notification, notice, order, rule, form or certificate in the
exercise of any power conferred by or under the said Act 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.
(2) Any application for revision pending immediately before the date on which the Appellate Tribunal
is constituted under section 13 (hereafter in this section referred to as the notified date), before the
Commissioner under the Bengal Finance (Sales Tax) Act, 1941 (Bengal Act VI of 1941), as in force in
the Union territory of Delhi shall on such date stand transferred to, and be disposed of by the Tribunal:
Provided that no application for revision shall be transferred to the Appellate Tribunal if the petitioner
making the application for revision waives his right of appeal to the Tribunal within fifteen days after the
notified date, in which case the application for revision shall be disposed of by the Commissioner as if it
were an application for revision made under section 47.
(3) Any application for revision, pending immediately before the notified date, before the
Commissioner and transferred to the Appellate Tribunal under sub-section (2) shall be disposed of by the
Appellate Tribunal as if it were an appeal made to the Tribunal under and in accordance with the
provisions of section 43 of this Act.
(4) Where an appeal against an order passed by an officer under this Act lies to the Appellate
Tribunal after the notified date, and the period of limitation specified for filing such appeal under this Act
has not expired, then, such appeal shall lie to the Tribunal within thirty days of the notified date or within
the expiry of the period of limitation specified for filing such appeal, whichever is later.
74. Removal of difficulties.—(1) If any difficultly arises in giving effect to the provisions of this Act,
the Central Government may, by general or special order published in the Official Gazette, make such
provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for
the removal of the difficulty:
Provided that no such order shall be made after the expiration of one year from the commencement of
this Act.
(2) Every order made under sub-section (1) shall be laid, as soon as may be after it is made, before
each House of Parliament, while it is in session, for a total period of thirty days which may be comprised
in one session or in two or more successive sessions, and if, before the expiry of the session immediately
following the session or the successive sessions aforesaid, both Houses agree in making any modification
in the order or both Houses agree that the order should not be made, the order shall thereafter have effect
only in such modified form or be of no effect, as the case may be; so, however, that any such modification
or annulment shall be without prejudice to the validity of anything previously done under that order.
75. Transitional provisions.—Where a dealer liable to pay tax under the Bengal Finance (Sales Tax)
Act, 1941 (Bengal Act VI of 1941), as in force in Delhi immediately before the commencement of this
Act is not liable to pay tax under the provisions of this Act, he shall, notwithstanding the repeal of the
first mentioned Act, continue to be liable to pay tax on the sales made by him after such commencement
of all goods—
(i) purchased by him before such commencement,
(ii) manufactured by him before or after such commencement out of raw materials purchased
before such commencement.