In exercise of the powers conferred by sub-sections (3), (4) and (5) of section 13 of the Central Sales Tax Act, 1956 (74 of 1956), the state Government do hereby make the following rules further to amend the Central Sales Tax (Odisha) Rules, 1957, namely :-

1. (1) These rules may be called the Central Sales Tax (Odisha) Amendment Rules, 2016.

(2) They shall be deemed to have come into force with effect from the 1st day of October, 2015.

2. In the Central Sales Tax (Odisha) Rules, 1957, (hereinafter referred to as the said rules), rule 10 shall be omitted.

3. In the said rules, in rule 11, the following proviso shall be inserted, namely:-

"Provided that returns filed electronically shall not require any signature by the dealer or his authorized person."

4. In the said rules, for rule 12, the following rule shall be substituted, namely:-

"12. Assessment.

(1)(a) On scrutiny of returns(s) with reference to the related forms of declaration or certificates submitted in accordance with rule 7A relating to the preceding quarter(s) or year(s), if it is found that declaration forms or certificates not furnished in support of claim for exemption, deduction or concession claimed, if any, in the return(s); or the declaration(s) or certificate(s) so furnished being not in order or incomplete or defective, the assessing authority shall proceed to assess the tax for the quarter(s) or year(s), after giving a reasonable opportunity of being heard to the dealer:

Provided that the turnover assessed under this clause in respect of same period shall be excluded from the turnover assessed under sub-section (2) of Section 9 of the Central Sales Tax Act, 1956 and rules made thereunder and vice-versa.

(b) For assessment under clause (a), the registered dealer shall be issued with a notice in Form ll-B and assessment order and demand notice shall be issued in Form VI and VII respectively.

(c) Without prejudice to any interest or penalty that may have been levied or imposed under any of the provisions of the Act, an amount equal to the amount of tax assessed under clause (a) shall be imposed by way of penalty in respect of any assessment completed under the said clause.

(d) No order of the assessment shall be made under this sub-rule after expiry of five years from the end of the period in respect of which the tax is assessable.

(2) Notwithstanding anything contained in this rule but subject to provisions under Central Sales Tax Act, 1956 and Central Registration and Turnover Rules, 1957 no penalty shall be imposed only due to non-submission of declaration form by the dealer.

(3) For any other matters not specified under this rule but required to identify dealers for audit, assess, assess in lieu of audit, re-assess, collect and enforce payment of any tax, the provisions of Odisha VAT Act, 2004 and rules made thereunder shall, mutatis mutandis, apply."

5. In the said rules, for rule 15, the following rule shall be inserted:-

"The order of assessment passed under rule 12 of these rules, shall be issued in Form VI."

6. In the said rules, for "Form-IIB", the following Form shall be substituted, namely:-

FORM II-B

NOTICE FOR ASSESSMENT

DUE TO DEFICIENCIES IN THE RETURN

[See sub-rule (1) of rule 12 Central Sales Tax (Odisha) Rules,1957 ]

4. Where as, you have filed the return for the period from ------------ to ----------- and the relatable forms of declaration / certificates along with the prescribed statement on --------

Whereas, on scrutiny of the return filed with reference to the forms of declaration / certificates alongwith the prescribed statement, it is noticed as under:-

(a) You have failed to furnish forms of declaration / certificates in support of the following transactions

(i)-------------------------
(ii)------------------------
(iii)------------------------

(b) The following forms of declaration / certificates are found to be, not in order / incomplete / defective (briefly mention the defect or omission)

(i)-------------------------

(ii)------------------------
(iii)------------------------

(c) The following arithmetical mistakes have occurred resulting in less payment of tax / not resulting in less payment of tax:

(i)-------------------------

(ii)------------------------
(iii)------------------------

5. You are, therefore, called upon to furnish the wanting declaration forms / certificates, make good the deficiencies in the forms of declaration / certificates and/or the arithmetical mistakes pointed out above on dt.__________ at _____ A.M / P.M, failing which tax will be assessed ex parte without any further reference to you.

7. In the said rules "Form-IIC", shall be deleted.

8. In the said rules, for "Form-IV", the following Form shall be substituted, namely:-

FORM IV

NOTICE FOR ASSESSMENT OF TAX AS A RESULT OF AUDIT

[See rule 22 of the Central Sales Tax (Orissa) Rules, 1957]

4.Tax Audit of your business was undertaken by the officers of the Audit unit of this office on --------- or during the period commencing from ------------ to -------------. Examination of the records, documents, stock in trade and other relevant information pertaining to your business for the period from ----------- to ----------- reveals that you have not declared the correct amount of tax due for the aforesaid period in the returns filed.

5. A copy of the 'Audit Visit Report' is enclosed herewith for your reference.

6. You are, therefore, required to appear in person or through your authorised agent at my office on dt ----------- at ---------- A.M / P.M and produce or cause to be produced the accounts and documents relating to or incidental to your business as specified below for the period mentioned above in order to enable me to satisfy whether the return filed by you for the said period is correct and complete.

7. In the event of your failure to comply with all the terms of this notice, I shall proceed to assess you under rule 22 of the Central Sales Tax (Orissa) Rules, 1957 to the best of my judgment.

(Mark " ", whichever is applicable)

(a) Books of account maintained in support of transactions made under the provisions of the Central Sales Tax Act, 1956 and the rules made there under.

(b) Records and documents required to be maintained in support of transactions made under the said Act and the rules made there under claiming exemption/ deductions from the Turnover under the said Act.

(c) Documents and evidence in support of the returns filed for the period under reference.

(d) Accounts and documents relating to the financial transactions of the business including Bank Pass Book or Bank Statement.

(e) Such other documents as may be specifically required for the assessment (to be specified),-

(i)

(ii)
(iii)

9. In the said rules, for "Form-IVA", the following Form shall be substituted, namely:-

FORM IV A

NOTICE FOR ASSESSMENT OF TAX IN CASE OF ESCAPEMENT OF TURNOVER OR UNDER-ASSESSMENT

[See rule 22 of the Central Sales Tax (Orissa) Rules, 1957]

You have been assessed under sub-rules (1)/ (2)/ (3)/(5) of rule 12 of the Central Sales Tax(Orissa) Rules, 1957, for the period from---------to--------- on dt----------.

Now, it appears to me that the whole / part of the turnover of sales/purchases for the aforementioned period has -

(Strike out whichever is not applicable)

(i) escaped assessment.

(ii) been under-assessed

(iii) has been assessed at a rate lower than the rate of at which it is assessable.

OR

You have been allowed deductions from the turnover or exemptions from payment of tax under the Central Sales Tax Act, 1956 wrongly to which you are not eligible.

OR

You have been wrongly allowed set off of input tax credit in excess of the amount admissible under rule 7(3)(c) of these rules. You are, therefore, required to appear in person or through your authorised agent at my office at----A.M./P.M on dt-------- and produce or cause to be produced accounts and documents relating to your business as specified below.

You are also directed to show cause why in addition to the amount of tax that may be assessed on you, a penalty equal to twice the amount of tax additionally assessed shall not be imposed on you clause (c) of sub-rule (4) of rule 12 of the Central Sales Tax (Registration and Turn over) rules, 1957.

In the event of your failure to comply with all the terms of this notice, I shall proceed to assess you under rule 12(4)(d) of the Central Sales Tax (Orissa) Rules,1957 to the best of my judgment without any further reference to you.

Particulars of Accounts and documents required -
1.

2.
3.
4.

10. In the said rules, for "Form-IVB", the following Form shall be substituted, namely:-

FORM IV B

NOTICE FOR ASSESSMENT OF TAX IN CASE OF UNREGISTERED DEALER

[See 22 of the Central Sales Tax (Orissa) Rules, 1957]

3. I have reason to believe on the basis of records available in this office that your liability to pay tax under the CST Act, 1956 has accrued on dt._________, but you have nevertheless failed to apply for registration under Section 7 of the Act without sufficient cause.

4. A copy of the Audit Visit Report is enclosed herewith for your reference.

5. You are therefore, required to appear in person or through your authorised agent at my office on dt. _______________ at __________ A.M / P.M. & produce or cause to be produced the account and documents maintained for your business including such other documents as may be required for the period (s) from _____________to _______________as specified below.

6. You are also required to show cause why in addition to the amount of tax that may be assessed on you, penalty equal to the amount of tax assessed shall not be imposed on you under sub-rule (5) of rule 12 of the CST (O) Rule, 1957.

7. In the event of your failure to comply with all the terms of this notice, I shall proceed to assess you under rule 22 of CST (O) Rule, 1957 to the best of my judgment without further reference to you.

8. Particulars of Accounts and Documents required:-

1.

2.
3.

11. In the said rules, for "Form-VII", the following Form shall be substituted, namely:-

FORM VII

NOTICE OF DEMAND

[See rules 8,8A,12(1) and 16 of the Central Sales Tax (Orissa) Rules, 1957]

4. Please take notice that a sum of Rs.------------/- (Rupees --------------) has been determined as dues payable by you for the period from ------- to -----under the Central Sales Tax (Orissa) Rules, 1957 as per details given below:

(Strike out which ever is not applicable)

5. You are required to pay this amount of Rs.-------/-(Rupees---------) in the Government Treasury at -------on or before dt.--------and to produce the receipt in proof of payment in the office not later than dt.----failing which, the said sum will be recoverable from you as an arrear of land revenue.

6. You are further warned that unless the amount as aforesaid is paid and evidence of such payment is produced by the date fixed above, penalty as specified under sub-rule (2) of rule 16 shall be imposed.

7. If you are dissatisfied with the order of assessment or order imposing penalty, you may prefer appeal before the ------within thirty days from the date of receipt of the said order.

11. In the said rules, for "Form-VIIAA", the following Form shall be substituted, namely:-

"FORM VIIAA

AUDIT VISIT REPORT

[Refer Rule 22 of the Central Sales Tax (Odisha) Rules, 1957]

By Order of the Governor

Deputy Secretary to Government