38. Accounts.—(1) Every dealer liable to pay tax under this Act, and every other dealer on whom a
notice has been served to furnish returns under sub-section (2) of section 21 shall keep at his place of
business a true account of the value of goods bought and sold by him, and if the Commissioner considers
that such account is not sufficiently clear and intelligible to enable him to make a proper check of the
returns referred to in that sub-section, he may require such dealer by notice in writing to keep such
accounts (including records of purchases and sales) and as may be specified therein.
(2) The Commissioner may, by notification in the Official Gazette, direct any class of registered
dealers generally to keep such accounts (including records of purchases and sales) as may be specified in
the notification subject to such conditions and restrictions as may be prescribed.
39. Memoranda of sales.—If a registered dealer—
(a) sells goods to another registered dealer, or
(b) makes sales in the course of inter-State trade or commerce, or
(c) sells any goods exceeding ten rupees in value in any one transaction to any other person,
he shall issue to the purchaser a bill or cash memorandum serially numbered, signed and dated by him
or his servant, manager or agent and showing therein his name and address and such other particulars as
may be prescribed and he shall keep a duplicate or copy of such bill or cash memorandum duly signed
and dated and preserve it for a period of not less than five years from the end of the year unless any
proceedings in respect of that year are pending in which case they shall be preserved till the final decision
in those proceedings:
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Provided that if in respect of any goods or class of goods or any dealers or class of dealers,
the Administrator is of the opinion that it is not practicable to issue any bills or cash memoranda for sale
of goods exceeding ten rupees in value in any one transaction to any other person, he may, by notification
in the Official Gazette,—
(i) specify such amount exceeding ten rupees in value as the amount for the issue of such bills or
cash memoranda;
(ii) exempt such goods or class of goods or dealers or class of dealers from the operation of this
section.
40. Information to be furnished regarding change of business.—If any dealer to whom the
provisions of sub-section (2) of section 21 apply—
(a) sells or otherwise disposes of his business or any part of his business or any place of business,
or effects or comes to know of any other change in the ownership of the business; or
(b) discontinues his business or changes his place of business or warehouse, or opens a new place
of business; or
(c) changes the name or nature of his business, or effects any change in the goods or class of
goods in which he carries on his business and which is or are specified in his certificate of
registration; or
(d) enters into partnership or other association in regard to his business,
he shall, within the prescribed time, inform the prescribed authority accordingly, and if any such dealer
dies, his legal representative shall in like manner inform the said authority.
41. Production and inspection of accounts and documents and search of premises.—(1) The
Commissioner may, subject to such conditions as may be prescribed, require any dealer—
(a) to produce before him such books of accounts, registers or documents,
(b) to furnish such information relating to the stock of goods of, or purchases, sales or deliveries
of goods by, the dealer or any other information relating to his business,
as may be deemed necessary, for the purposes of this Act.
(2) (a) All books of accounts, registers and documents relating to the stock of goods of, or purchases,
sales and deliveries of goods by, any dealer, and
(b) All goods kept in any place of business or warehouse of any dealer,
shall at all reasonable times be open to inspection by the Commissioner and the Commissioner may take
or cause to be taken such copies or extracts of the said books of accounts, registers or documents and such
inventory of the goods found as appear to him necessary for the purposes of this Act.
(3) Where the Commissioner, upon information in his possession or otherwise, has reasonable
grounds to believe that—
(a) any person to whom a notice under this Act was issued to produce, or cause to be produced,
any books of accounts or other documents has omitted or failed to produce or caused to be produced
such books of accounts or other documents, as required by such notice, or
(b) any person to whom a notice as aforesaid has been or might be issued, will not, or
would not produce or cause to be produced any books of accounts or other documents which
will be useful for, or relevant to, any proceedings under the Bengal Finance (Sales Tax)
Act, 1941 (Bengal Act VI of 1941), as it was in force in Delhi, or under this Act,
(c) books of accounts, registers or documents of any dealer may be destroyed, mutilated,
altered, falsified or secreted or any sales by that dealer have been or may be suppressed, with a
view to evade or attempt to evade payment of tax due under the Bengal Finance
(Sales Tax) Act, 1941 (Bengal Act VI of 1941), as it was in force in Delhi, or under this Act,
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the Commissioner or any other person appointed under sub-section (2) of section 9, if so authorised by
the Commissioner may, —
(i) enter and search any building or place where he has reason to suspect that books of accounts
and other documents or the sale proceeds are kept;
(ii) break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising
the powers conferred by clause (i) where the keys thereof are not available;
(iii) seize any such books of accounts or other documents or any inventory of goods as appear to
him necessary for the purposes of this Act;
(iv) place marks of identification on any books of accounts or other documents or make or cause
to be made extracts or copies therefrom;
(v) make a note or any inventory of any such money or goods found as a result of such search;
(vi) seal the premises including the office, shop, godown, box, locker, safe, almirah
or other receptacle if the owner or the person in occupation or in charge of such office, shop, godown,
box, locker, safe, almirah or other receptacle leaves the place or is not available or fails or refuses to
open it when called upon to do so.
(4) The Commissioner may requisition the services of any police officer or any public servant, or of
both to assist him for all or any of the purposes specified in sub-section (3).
(5) Where the Commissioner seizes any books of accounts or other documents, he shall give the
dealer or the person present on his behalf, as the case may be, a receipt for the same and obtain
acknowledgement of the receipt so given to him:
Provided that if the dealer or person from whose custody the books of accounts
or other documents are seized refuses to give an acknowledgement, the Commissioner may leave the
receipt at the premises and record this fact:
Provided further that the dealer or person aforesaid may file objections before the Commissioner
against such search, seizure or inventory within seven days of such search seizure or inventory.
(6) The Commissioner shall keep in his custody the books of accounts, registers or documents seized
under sub-section (3) for such period not later than the completion of all the proceedings under this Act in
respect of years for which those books of accounts, registers or documents are relevant, as he considers
necessary, and thereafter shall return the same to the dealer or any other person from whose custody or
power they were seized:
Provided that the Commissioner may, before returning such books of accounts or other documents as
aforesaid, place or cause to be placed such marks of identification thereon as appear to him to be
necessary:
Provided further that the Commissioner may, before returning the books of accounts
and other documents, require that the dealer or the person, as the case may be, shall give a written
undertaking that the books of accounts and other documents shall be presented whenever required by any
competent authority for any proceedings under this Act.
(7) Save as otherwise provided in this section, every search or seizure made under this
section shall be carried on in accordance with the provisions of the Code of Criminal
Procedure, 1973 (2 of 1974), relating to searches or seizures made under that Code.
(8) The Commissioner may, for the purposes of this Act—
(a) require any person, including a banking company, post office or any officer thereof, to furnish
information in relation to such points or matters or to furnish statements of accounts and affairs
verified in the manner specified by him, giving information in relation to such points or matters as
in his opinion will be useful for, or relevant to, any proceeding under this Act;
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(b) require any person—
(i) who transports or holds in custody, for delivery to or on behalf of any dealer any goods to
give any information likely to be in his possession in respect of such goods or to permit
inspection thereof, as the case may be;
(ii) who maintains or has in his possession any books of accounts, registers or documents
relating to the business of a dealer to produce such books of accounts, registers or documents for
inspection.
42. Power of Commissioner and other authorities to take evidence on oath, etc.—(1) The
Commissioner or any person appointed under sub-section (2) of section 9 to assist him shall, for the
purposes of this Act, have the same powers as are vested in a court under the Code of Civil
Procedure, 1908 (5 of 1908), when trying a suit, in respect of the following matters, namely:—
(a) enforcing the attendance of any person and examining him on oath or affirmation;
(b) compelling the production of accounts and documents; and
(c) issuing commissions for the examination of witnesses,
and any proceeding under this Act before the Commissioner or any person appointed
under sub-section (2) of section 9 to assist him shall be deemed to be a judicial proceeding within
the meaning of sections 193 and 228 and for the purposes of section 196 of the Indian
Penal Code (45 of 1860).
(2) Subject to any rule made in this behalf, any authority referred to in sub-section (1) may impound
and retain in its custody for such period as it thinks fit, any books of accounts or other documents
produced before it in any proceedings under this Act:
Provided that a person appointed under sub-section (2) of section 9 to assist the Commissioner shall
not—
(a) impound any books of accounts or other documents without recording his reasons for so
doing; or
(b) retain in his custody any such books or documents for a period exceeding thirty days,
without obtaining the approval of the Commissioner therefor.