54. Accounts to be audited in certain cases.–
(1) Every dealer whose gross turnover exceeds forty
lakh rupees shall, for the purposes of this Act, get his annual accounts audited by an accountant by–
(i) the 30th day of November of the following year, in the case of a company formed and registered
under the Companies Act, 1956 (1 of 1956); and
(ii) the 31st day of October of the following year, in any other case.
(2) Every dealer referred to in sub-section
(1) shall obtain, by the date specified in that sub-section, 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 and true copy of such report shall be furnished, on or before the due
date, by such dealer to the prescribed authority.
Explanation 1.–In this sub-section, “due date” means–
(a) where the dealer is a company within the meaning of the Companies Act, 1956 (1 of 1956), the
30th day of November of the year following the year to which such return relates;
(b) where the dealer is a person, other than a company,–
(i) in a case where the accounts of the dealer are required under this Act or any other law to be
audited or where the report of an accountant is required to be furnished under this section, the 31st
day of October of the year following the year to which such return relates;
(ii) in any other case, the 31st day of July of the year following the year to which such return
relates.
Explanation 2.–For the purposes of this section, “accountant” means a Chartered Accountant within
the meaning of the Chartered Accountants Act, 1949 (38 of 1949) and includes a person who, by virtue of
the provisions of sub-section
(2) of section 226 of the Companies Act, 1956 (1 of 1956), is entitled to be
appointed to act as an auditor of companies registered in any State.
(3) If the accounts of a registered dealer are not required to be audited in terms of the provisions of sub-
section
(1), such dealer shall furnish, to the prescribed authority, the accounts and statements mentioned in
sub-section
(2) of section 52 on or before the 31st day of July of the year following the year to which such
accounts or statements relate.
(4) If a dealer contravenes the provisions of sub-section
(2) or sub-section
(3), the prescribed authority
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 equivalent to two per cent. of the tax payable by him under section 36 for
every month, or part thereof, of such default.
55. Furnishing of information by Government departments, banks, financial institutions clearing
and forwarding agents and owners of warehouses, godowns and others.–
(a) Every bank, including any
branch of a bank, or any clearing house in the State or any financial institution, department of the
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Government, corporation, institution, organisations or companies, boards, authorities, undertakings or any
bodies owned, financed or controlled wholly or partly by the State Government or the Central Government;
and
(b) every clearing, forwarding or booking agent or dalal as defined in clause
(a) of the Explanation to
section 59 or a person engaged in the business of transporting goods,
shall, if so required by any authority appointed under section 10, furnish any such particulars as may be
required by such authority in respect of the transactions relating to sales or purchases of goods by such
dealers or any dealer with or through such banks or clearing house or any financial institution, department
of the Government, corporations, institutions, organisations or companies, boards, authorities, undertakings
or any other body owned, financed or controlled wholly or partly by the State Government or the Central
Government.
CHAPTER VIII
INSPECTIONS, SEARCH AND SEIZURE
56. Production of books of account, inspection, search and seizure.–
(1) Subject to such rules as may
be made by the State Government under this Act, any authority appointed under sub-section
(1) of section
10 may, either before or after assessment, require any dealer to produce before it or him any accounts,
registers or documents or to furnish any information relating to the details of his purchases and sales and
the stock of goods produced, raised, processed, manufactured, bought, sold or delivered by such dealer, and
the dealer shall comply with such requirement.
(2) If reasonable grounds exist to suspect that–
(a) a dealer, with an intention to reduce his tax liability under the Act, has suppressed any financial
transaction, element of value addition implicit in the transaction or the stock of goods produced, raised,
processed, manufactured, bought, sold or delivered by such dealer or has claimed input tax credit in
excess of his entitlement; or
(b) any clearing or forwarding agent or a person engaged in the business of transporting goods or
owner of a warehouse or a godown is keeping or has kept his accounts in such a manner as is likely to
cause evasion of tax payable under this Act,
the prescribed authority shall, after making such further inquiries as may be deemed fit and after obtaining
such authorisation in the manner prescribed, proceed to inspect all the places of business of the dealer or
the clearing or forwarding agent or the person engaged in the business of transporting goods or the owner
of warehouse or godown:
Provided that if the prescribed authority is satisfied that delay in obtaining such authorisation may be
prejudicial to the interest of revenue, he may, for reasons to be recorded in writing, proceed to inspect all
the places of business of the dealer or the clearing or forwarding agent or the person engaged in the business
of transporting goods or the owner of warehouse or godown without obtaining such authorisation which
may be granted subsequently.
(3) The prescribed authority shall have the powers to enter into and search the premises, including the
place of business, of such dealer or the person and, for reasons to be recorded in writing, seize such
accounts, registers or documents of the dealer or the person as may be necessary, in the manner prescribed,
and shall retain the same for so long as may be necessary in connection with any proceeding under this Act
or for a prosecution under any law:
Provided that if the dealer or person whose accounts, registers or documents have been seized, applies
for a copy of the same, he shall be supplied with a photo-copy of the same on payment of appropriate cost
into a Government Treasury or a bank authorised in this behalf by the State Government:
Provided further that such authority or inspector may take or cause to be taken such copies of, or extracts
from, the accounts, registers or documents, as such authority or inspector may consider necessary.
(4)
(a) Any authority referred to in sub-sections
(1) and
(2) shall have the powers to seize any goods
not properly accounted for in the books, accounts, registers and other documents of the dealer or the dalal
as defined in clause
(a) of the Explanation to section 59, or the owner of the warehouse, or the clearing,
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booking or forwarding agent, or the person engaged in the business of transporting goods in the manner
prescribed.
(b) The authority referred to in clause
(a) shall, in a case where the dealer or the person in-charge of
goods as mentioned in clause
(a) fails to produce any evidence or fails to satisfy the said authority regarding
the proper accounting of goods, impose a penalty, after allowing an opportunity of hearing in the prescribed
manner to the dealer or such person, which shall be equal to three times the amount of tax calculated on the
value of such goods and the goods shall be released as soon as the penalty is paid.
(c) If the dealer or the person in-charge of the goods mentioned in clause
(a) requests for time for
production of necessary documents in support of proper accounting, the authority referred to in clause
(a)
shall release the goods on the condition that the dealer or such person deposits a security equivalent to three
times the amount of tax calculated on the value of the goods, either in the form of cash, to be deposited in
the Government Treasury, or in the form of bank guarantee acceptable to the authority.
(d) If the goods seized under clause
(a) are not claimed by any person, the authority referred to in the
said clause shall arrange for the safe custody of goods.
(e) In case the penalty imposed under clause
(b) is not paid or the goods remain unclaimed for a period
of thirty days or more from the date of seizure, the goods so seized shall be sold by auction in the prescribed
manner and the sale proceeds shall be appropriated towards the amount of penalty imposed under clause
(b); and the balance of the sale-proceeds, if any, shall be deposited in the Government Treasury and shall
be refunded to the lawful claimant in the prescribed manner:
Provided that in the case of goods of a perishable nature, the prescribed authority may decide to sell the
goods by auction before a period of thirty days.
(f) In case where the goods have been released on the deposit of a security as mentioned in clause
(c)
and evidence regarding proper accounting of goods, to the satisfaction of the authority referred to in clause
(a) is not produced within thirty days from the date on which the security is deposited, the amount of
security shall stand forfeited to the State Government:
Provided that in case evidence or document to the satisfaction of the authority mentioned in clause
(a)
regarding the proper accounting of goods is produced within the said period of thirty days, the security shall
be released in the prescribed manner.
(5)
(a) The power conferred under sub-sections
(3) and
(4) shall include the power to break open the
lock of any box or receptacle or door of any other place or premises where any accounts, registers or other
documents or goods may be kept or are reasonably suspected to be kept.
(b) The powers conferred under sub-sections
(3) and
(4) shall also include the power to seal any box or
receptacle, godown or building where any accounts, registers or other documents or goods may be kept or
are reasonably suspected to be kept.
(6) An authority appointed under section 10 may require the assistance of any person, public servant or
police officer in making a search and a seizure or for safe custody of goods seized under this section, and
such person, public servant or police officer shall render necessary assistance in the matter.
(7) Where any books of account, other documents, money or goods are found in the possession or
control of any person in the course of any search under sub-section
(2) or sub-section
(3), it shall be
presumed, unless it is proved to the contrary, that such books of account, documents, money or goods
belong to such person.
Explanation.–For the purposes of this section the expression “proper accounting”, shall–
(i) in the case of a dealer, mean that the goods have either not been entered in the books of
account or they have been classified in a manner which is likely to lead to evasion of tax payable
under this Act; or
(ii) in the case of the owner of a warehouse, or a clearing, booking or forwarding agent, or a
person engaged in the business of transporting goods, mean properly entered in such registers and
accounts as may be prescribed under sub-section
(2) of section 59.
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(8) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to searches and seizure
shall apply, so far as may be, to searches and seizure under this section.
57. Cross checking or verification of transactions.–
(1) With a view to preventing evasion of tax
payable under this Act and ensuring proper compliance with the provisions of this Act, the prescribed
authority may, from time to time, collect information regarding sales and purchases effected by any class
of dealers and cause any of such transactions of sale and purchase to be cross-checked.
(2) For this purpose, the prescribed authority may, from time to time and by issuing a notice, in the
manner and form prescribed, require any class of dealers to furnish, before such authority and by such date
as may be specified in the said notice, such information, details and particulars as may be specified in the
notice, regarding the transactions of sales and purchases effected by the dealers during the period mentioned
in the said notice.
(3) The prescribed authority shall cause any of such transactions to be cross-checked with reference to
the books of account of the purchasing and selling dealers and for this purpose, the prescribed authority
shall send an intimation required for the purpose of cross-checking, stating therein the details of the
transactions proposed to be cross-checked and the time and date on which any officer or person duly
authorised to cross check the transaction shall visit the place where the books of account are ordinarily kept
by the dealer.
58. Survey.–
(1) With a view to identifying dealers who are liable to pay tax under this Act, but have
remained unregistered, the prescribed authority, shall, from time to time, cause a survey of unregistered
dealers to be done for this purpose.
(2) For the purposes of the survey, the prescribed authority may, by notice in the prescribed form,
require any dealer or class of dealers to furnish the names, addresses and other particulars, in the manner
specified, of the persons and dealers who have purchased or sold any goods from, or, to, such dealer or
class of dealers during a given period.
(3) For the purposes of survey, the prescribed authority may call for, by notice in the prescribed form,
details and particulars regarding the services provided by public utilities, financial institutions including
banking companies, clearing and forwarding agents, owners of warehouses, dalals and persons engaged in
the business of transporting goods which such authority is of the opinion, shall be relevant and useful for
the purposes of this Act.
59. Control on clearing, forwarding or booking agent and any person transporting goods.–
(1)
Every clearing, forwarding or booking agent or dalal or a person transporting goods, who during course of
his business handles the document of title to the goods or transports goods or takes delivery of goods for or
on behalf of a dealer and having his place of business in the State of Bihar, shall furnish true and complete
particulars and information relating to his place of business to the prescribed authority, within such time
and in such manner as may be prescribed.
(2) Every agent or person referred to in sub-section
(1), shall maintain true and complete accounts,
registers and documents, as may be prescribed, in respect of the goods handled by him and the documents
of title relating thereto and shall produce the said accounts, registers and documents before the prescribed
authority as and when required by him.
(3) If any agent or person referred to in sub-section
(1) contravenes the provisions of sub-section
(1) or
sub-section
(2) in a manner which is likely to lead to evasion of any tax payable under this Act, the
prescribed authority may, without prejudice to any action under section 81, on charge of abetment, after
giving such agent or person an opportunity of being heard, direct him to pay by way of penalty an amount
which shall be equal to three times the amount of tax calculated on the value of goods in respect of which
complete particulars have not been furnished or incorrect particulars or information have been furnished.
Explanation.–For the purposes of this sub-section–
(a) “dalal” shall include a person who renders his services for booking of, or taking delivery of,
consignment of goods at a railway station, booking agency, goods transport company office, or any
place of loading or unloading of goods or contrives, makes and concludes bargains and contracts for or
on behalf of any dealer for a fee, reward, commission, remuneration or other valuable consideration or
otherwise;
35
(b) “person transporting goods” shall, besides the owner, include the manager, agent, driver or
employee of the owner, or person in-charge of a place of loading or unloading of goods other than a
rail-head, or a post office, or of a goods carrier carrying such goods, or a person who accepts
consignments of such goods for despatch to other places or gives delivery of any consignment of such
goods to the consignee.
CHAPTER IX
CHECK-POSTS AND RESTRICTIONS ON MOVEMENT
60. Establishment of check-posts.–
(1) The State Government may, by notification, set up and erect,
in such manner as may be prescribed, check-posts and barriers at any place in the State with a view to
preventing evasion of tax payable under this Act.
(2) Every person transporting goods, other than those specified in Schedule I and subject to such
conditions as may be prescribed, shall, at any check-post or barrier, referred to in sub-section
(1) and before
crossing such check-post or barrier, file before such authority or officer as may be authorised by the State
Government in this behalf, a correct and complete declaration in such form and manner as may be
prescribed.
(3) Any authority or officer who may be authorised by the State Government in this behalf, may, for
the purpose of verifying, whether any goods are being transported in contravention of the provisions of sub-
section
(2) and in such manner as may be prescribed, intercept, detain and search any goods carrier; and the
person, transporting goods or for the time being in-charge of goods, shall render all possible assistance to
such authority or officer in carrying out the search.
(4)
(a) The authority or any officer referred to in sub-section
(3) may seize any goods along with the
vehicle or carrier, which, he suspects, are being transported in contravention of the provisions of
sub-section
(2) together with any container or material for the packing of such goods:
Provided that a list of all the goods seized under this sub-section shall be prepared by such officer and
be signed by the officer, the dealer or the person in-charge of goods and not less than two witnesses and a
copy of the seizure list shall be made over to the dealer or the person in charge of the goods, as the case
may be.
(b) The provisions of section 56 shall, mutatis mutandis, apply in matters relating to such seizure,
penalty, security, release and confiscation of goods.
61. Restriction on movement of goods.–
(1) A person transporting goods–
(a) from any place outside the State of Bihar to any place inside the State of Bihar, or
(b) from any place inside the State of Bihar to any place outside the State of Bihar, or
(c) from any place within the State of Bihar to any other such place,
shall carry a declaration in such form as may be prescribed supported by a cash memo, retail invoice, bill
or tax invoice, as the case may be, in case the movement is as a result of sale or a challan in case the
movement is otherwise than as a result of sale, in respect of goods which are being transported on a goods
carrier, vehicle or a vessel or is otherwise in transit or in transit storage and shall produce such cash memo
or bill or tax invoice or challan, as the case may be, along with the aforesaid form of declaration on demand
before the prescribed authority:
Provided that the Commissioner may exempt, by notification in the Official Gazette, consignments
below a particular value or quantity from the requirement of this sub-section in so far as it relates to carrying
of a declaration.
(2) Any authority or officer who may be authorised by the State Government in this behalf may, for the
purpose of verifying whether any goods are being transported in contravention of the provisions of sub-
section
(1) intercept, detain and search any goods carrier, vehicle or vessel and may also search the
warehouse or godown or any other such place of transit storage, where goods are kept in course of
transportation and if the said authority is satisfied on such verification and search that transportation of
goods is being made in contravention of the provision of sub-section
(1), he may seize any such goods
together with any container or material for the packing of such goods:
36
Provided that a list of all the goods seized under this sub-section shall be prepared by such officer and
be signed by the officer, the dealer or the person in-charge of goods and not less than two witnesses and a
copy of the seizure list shall be made over to the dealer or the person in charge of the goods, as the case
may be.
(3) The provisions of section 56 shall, mutatis mutandis, apply in matters relating to such seizure,
penalty, security, release and confiscation of goods.
Explanation.–For the purposes of this section, the power to seize any goods shall also include the power
to seize the goods carrier on which the goods are being transported.
62. Transportation of goods through State of Bihar.–
(1) If any consignment of goods is being
transported by road from a place outside the State of Bihar to another such place and the vehicle carrying
the consignment passes through the territory of the State, the driver or any other person in-charge of the
vehicle shall obtain transit permission in the prescribed manner from the authority of the first check-post
falling en route after entry into the State and shall surrender the same transit permission to the authority of
the last check-post before leaving the State and in the event of failure to do so within seventy-two hours of
leaving the first check-post falling en route, it shall be deemed that goods so transported have been sold by
the owner or the person in-charge of the vehicle within the State of Bihar.
(2) In case the driver or person referred to in sub-section
(1) fails to comply with the provisions of sub-
section
(1), he shall be liable to pay penalty at the rate of rupees five hundred for every day of the default
or a sum twice the amount of tax calculated on the value of the goods transported in contravention of that
sub-section, whichever is higher:
Provided that no such penalty shall be levied without giving the person an opportunity of being heard:
Provided further that if the person proceeded against, justifies, beyond any doubt, the reasons for any
delay exceeding seventy-two hours, the prescribed authority shall, for reasons to be recorded in writing,
condone the delay.
CHAPTER X
LIABILITIES OF REPRESENTATIVE CHARACTER
63. Liability to pay tax in case of transfer of business.–
(1) When the ownership of the business of a
dealer liable to pay tax under this Act is entirely transferred, the transferor and the transferee, shall jointly
and severally be liable to pay any tax, interest and penalty, if any, payable in respect of such business and
remaining unpaid at the time of the transfer and the transferee shall also be liable to pay tax on sales or
purchases made by the transferee on and from the date of such transfer and shall forthwith apply for the
grant of a registration certificate unless such certificate is already possessed by him.
(2) Where a dealer liable to pay tax under this Act transfers the ownership or a part of his business, the
transferor shall be liable to pay tax in respect of the stock of goods transferred with that part of the business.
64. Tax payable by deceased dealer shall be paid by his representative.–
(1) Where a dealer dies
after assessment but before payment of the tax, interest or penalty payable by him under this Act, his
executor, administrator, successor-in-interest or legal representative shall be liable to pay out of the property
of the deceased, to the extent to which it is capable of meeting the charge, the amount payable by such
dealer.
(2) When a dealer dies without having furnished the return under section 24 or after having furnished
the return but before assessment, the prescribed authority may proceed to make an assessment and
determine the amount payable under this Act by the deceased and for the said purpose he may require the
executor, administrator, successor-in interest or legal representative, as the case may be, of the deceased to
perform all or any of the obligations, which he might, under the provisions of this Act, have required the
deceased to perform and the amount thus determined shall be payable by the executor, administrator,
successor-in-interest or legal representative of the deceased to the extent to which the property of the
deceased is capable of meeting the charge.
65. Tax-liability of guardian and trustee, etc.–Where the business in respect of which tax is payable
under this Act is carried on by, or is in charge of, any guardian, trustee or agent of a minor or other
incapacitated person on behalf of and for the benefit of, such minor or other incapacitated person, the tax
37
shall be assessed upon and recoverable from such guardian, trustee or agent, as the case may be, in the
manner and to the same extent as it would be leviable upon and recoverable from any such minor or
incapacitated person, if he were of full age and sound mind, and if he were conducting the business himself
and all the provisions of this Act shall apply accordingly.
66. Tax-liability of court of wards.–Where the estate or any portion thereof of a dealer owning a
business in respect of which tax is payable under this Act is under the control of the court of wards, the
Administrator- General, the official trustee, or any receiver or manager, including any person, whatever his
designation who in fact manages the business, appointed by, or under the order of a court, the tax shall be
assessed upon and recoverable from such court of wards, Administrator-General, official trustee, receiver
or manager in like manner and to the same extent as it would be assessable upon and recoverable from the
dealer if he were conducting the business himself; and all the provisions of this Act shall apply accordingly.
67. Liability in case of dissolution of firm, etc.–Where a dealer is a Hindu undivided family, firm or
association of persons, and such family, firm or association is partitioned, dissolved or disrupted, as the
case may be–
(a) the tax, interest and penalty payable under this Act by such family, firm or association of persons
for the period up to the date of such partition, dissolution or disruption may be assessed as if no partition,
dissolution or disruption had taken place and all the provisions of this Act shall apply accordingly; and
(b) every person who was at the time of such partition, dissolution or disruption a member or partner
of a Hindu undivided family, firm or association of persons shall, notwithstanding such partition,
dissolution or disruption, be liable severally and jointly for the payment of tax, interest including
penalty, if any, payable under this Act, by such family, firm or association of persons, whether dues of
tax, interest or penalty is for the period prior to or after such partition, dissolution or disruption.
CHAPTER XI
REFUNDS AND ADJUSTMENTS
68. Refunds.–
(1) Subject to the other provisions
