EXTRACT OF THE WEST BENGAL FINANCE ACT, 2007.

NOTIFICATION No.480-L.- Dated 31st March, 2007.-

The following Act of the West Bengal Legislature, having been assented to by the Governor, is hereby published for general information:-

West Bengal Act III of 2007

THE WEST BENGAL FINANCE ACT, 2007.

[Passed by the West Bengal Legislature.]

[Assent of the Governor was first published in the Kolkata Gazette,

Extraordinary, of the 31st March, 2007.]

An Act to amend the Indian Stamp Act, 1899, in its application to West Bengal, the Bengal Agricultural Income-tax Act, 1944, the West Bengal Duty on Inter-State River Valley Authority Electricity Act, 1973, the West Bengal State Tax on Professions, Traders, Callings and Employments Act, 1979, the West Bengal Taxation Tribunal Act, 1987, the West Bengal Sales Tax Act, 1994, the West Bengal Sales Tax (Settlement of Dispute) Act, 1999, the West Bengal Transport Infrastructure Development Fund Act, 2002 and the West Bengal Value Added Tax Act, 2003.

WHEREAS it is expedient to amend the Indian Stamp Act, 1899,(2 of 1899.) in its application to West Bengal, the Bengal Agricultural Income-tax Act, 1944,(Ben. Act IV of 1944.) the West Bengal Duty on Inter-State River Valley Authority Electricity Act, 1973,(West Ben. Act VII of 1973.) the West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979,(West Ben. Act VI of1 979) the West Bengal Taxation Tribunal Act, 1987,9West Ben. Act VlI of 1987) the West Bengal Sales Tax Act, 1994, (West Ben. Act XLIX of 1994) the West Bengal Sales Tax (Settlement of Dispute) Act, 1999,West Ben. Act IV of 1999 the West Bengal Transport Infrastructure Development Fund Act, 2002 (West Ben. Act XXI of 2002) and the West Bengal Value Added Tax Act, 2003,(West Ben. Act XXXVII of 2003.) for the purposes and in the manner hereinafter appearing;

It is hereby enacted in the Fifty-eighth Year of Republic of India, by the Legislature of West Bengal, as follows:-

1. Short Title and Commencment

(1) This Act may be called the West Bengal Finance Act, 2007.

(2) Save as otherwise provided, it shall come into force on such date, or shall be deemed to have 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 of this Act

10.Amendment of West Ben. Act XXXVII of2003

In the West Bengal Value Added Tax Act, 2003,-

(1) in section 2,-

(a) in clause (41), in sub-clause (b), for the words "installation or insurance,", the word "installation," shall be substituted;

(b) in clause (57), in sub-clause (d), for the words "processing, treating", the words "processing, photocopying, developing, treating" shall be substituted;

(2) in section 18,-

(a) in sub-section (3), for the words "not found by the assessing authority", the words "not found by the assessing authority or the auditing authority" shall be substituted;

(b) in sub-section (4), after clause (b), the following clause shall be inserted:-

reselling goods, or";

(3) in section 22,-

(a) in sub-section (5), clause (b) shall be omitted;

(b) in sub-section (8), for the words "Notwithstanding anything contained elsewhere in the Act", the words, figure, letter and brackets

"Notwithstanding anything contained elsewhere in the Act, and subject to the provisions of sub-section (8A) shall be substituted;

(c) to sub-section (8A), the following proviso shall be added:-

"Provided that where a dealer has exercised option for refund in respect of any quarter of a year under this sub-section, such option shall be deemed to be final and in evocable for all subsequent quarters of the year for which such dealer:- is eligible for benefit under clause (a), or clause (b), or clause (c), of sub-section (I) of section 118,";

(d) in the negative list, after serial No. I3 in column (I) and the entries relating thereto column (2) and column (3), the following serial No. and the entries relating thereto in column (2) arid column (3), respectively, shall be inserted:--

"14. Industrial L.P.G. When the registered dealer is in the business of dealing in such goods.";

(4) in section 29, in sub-section (4),-

(a) for the word, figures and letter "section 34A", the words, figures and letter "section 34A and penalty calculated at such amount not exceeding rupees two thousand for each month of default or part thereof, as may be prescribed" shall be substituted;

(b) for the words "remained cancelled", the words "remained cancelled:" shall be substituted; and

(c) the following proviso shall be added:-

"Provided that where the appropriate authority has granted the dealer any installments in respect of payment of net tax, the certificate of registration, on application made by the dealer, may be restored, subject to such conditions and restrictions, and in such manner, as may be prescribed.";

(5) in section 32, in sub-section (2),-

(a) for the words "net tax and interest if any, the words "net tax, interest, and penalty calculated at such amount not exceeding rupees two thousand for each month of default or part thereof as may be prescribed, if any," shall be substituted;

(b) for the first proviso, the following proviso shall be substituted:-

"Provided that where a dealer required by sub-section (I) to furnish return for any return period is unable to make payment of the full amount of net tax or interest or penalty of amount not exceeding rupees two thousand for each month of default or part thereof as may be prescribed, payable according to such return, such dealer shall furnish the return without payment of the full amount of such tax or interest or penalty payable according to such return along with an application adducing reasons to the Commissioner for extension of time for making payment of net tax, interest and penalty up 'to the extended date of payment";

(c) in the second proviso, for the words "net tax and interest", the words "net tax, interest and penalty, if any" shall be substituted;

(6) in section 40, in sub-section (1),-

(a) in clause (f), for the words "an educational institution, or", the words "an educational institution," shall be substituted;

(b) for clause (g), the following clauses shall be substituted:-

"(g) a promoter,

(h) any bank,

(i) any hospital or nursing home or diagnostic center, or

(j) a partnership firm,";

(7) in section 41, in sub-section (1), for the words, figures and brackets "furnished under sub-section (1) of section 32", the words, figures and brackets "furnished under sub-section (1), or sub-section (3), of section 32" shall be substituted;

(8) in section 42, in sub-section (1), for the words, figures and brackets "under sub-section (1) of section 32", the words, figures and brackets "under sub-section (1), or sub-section (3), of section 32 or has failed to disclose the interest payable under sub-section (1) of section 33," shall be substituted;

(9) in section 46,-

(a) in sub-section (1),-

(i) in clause (e), for the words, figures, letters and brackets "under clause (a) or clause (aa) of section 61", the words, figures, letters and brackets "under clause (a), or clause (aa), or .clause (ab), of section 61" shall be substituted;

(ii) after clause (e), the following clauses shall be inserted:-

"(ea) a refund has been made to a registered dealer under subsection (8A) of section 22; or

(eb) the Commissioner has reasons to believe that an assessment under sub-section (2) of section 9 of the Central Sales Tax Act, 1956,(74 of 1956.) is required to be made for any year or part thereof; or";

(b) in the second proviso to sub-section (1), for the words, figure and brackets "has not been revoked under sub-section (3) of said section", the words, figures and brackets "has not been revoked under subsection (3), or sub-section (4), of the said section" shall be substituted

(10) in section 61,-

(a) in clause (a), for the words "situated anywhere in West Bengal", the words "situated anywhere in West Bengal outside" shall be substituted;

(b) after clause (aa), the following clause shall be inserted:-

"(ab) to a registered dealer, whose all sales of goods in the course of export out of India within the meaning of section 5 of the Central Sales Tax Act, 1956, to the total sales equal to or exceed seventy-five per centum in a return period, the input tax credit available during such return period. as referred to as 'A' in sub-section (17) of section 22 after adjustment of reverse credit, if any:

Provided that no refund for a particular return period shall be made to a registered dealer where such dealer fails to furnish a declaration appended to this section obtained from the selling dealer, in case the total purchase from such selling dealer during that return period exceeds rupees five lakhs.

DECLARATION

This is to declare under clause (ab) of section 61 that the under mentioned sales have been effected and tax has been charged on the bill(s) raised on the dealer and this is to certify that the net tax, if any, as per the return for the quarter ending under the West Bengal Value Added Tax Act, 2003, has been deposited at the appropriate Government Treasury and the return for the said quarter has been fi led with (name of the office) on (date).

I also declare that I do not enjoy any incentive by way of remission/ tax holiday/deferment under section 118 of the West Bengal Value Added Tax Act, 2003.

(11) in section 84, sub-section (3) shall be omitted;

(12) in section 86, the first proviso shall be omitted;

(13) in section 118,-

(a) in sub-section (1), in clause (c), for the words "may be allowed remission of tax", the words "may be allowed remission of output tax" shall be substituted;

(b) sub-section (3) shall be omitted;

(14) in Schedule A,-

(a) in the entry in column (2) against serial No.3 in column (l), for the words "de-oiled cake", the words "de-oiled cake, de-oiled rice bran," shall be substituted;

(b) after serial No.4 in .column (1) and the entry relating thereto in column (2), the following serial No. in column (l) and the entry relating thereto in column (2) shall be inserted:-

"4A. Bio-fertilisers and micronutrients, plant growth promoters and regulators.";

(c) after serial No. 19 in column (1) and the entry relating thereto in column (2), the following serial No. in column (1) and the entry relating thereto in column (2) shall be inserted:-

"19A. Glass chimney, hurricane lantern, and kerosene lamp and accessories and components thereof.";

(d) after item (ii) and entry relating thereto in column (2) against serial No. 20B in column (1), the following item and entry in column (2) shall be inserted:-

"(iii) Readymade garments of value, whether printed or otherwise, not exceeding rupees fifty per piece, when sold from a Hat.";

(e) for the entry in column (2) against serial No. 22 in column (1), the following entry shall be substituted:-

"Handmade musical instruments, that is to say-

(i) Tabla, khol, dhol, pckhwaj, mridanga, dhak, madal and dugdugi;

(ii) Flute;

(iii) Jaltaranga; and (iv) Ghungru.";

(f) in the entry in column (2) against serial No. 23B in column (I), for the words "as Chimati pati', the words "as Chimati pati or made wholly of plastic," shall be substituted;

(g) for the entry in column (2) against serial No. 37B in column (I), the following entry shall be substituted:-

"Biri, and raw and unprocessed tobacco leaves.";

(h) after serial No. 41 in column (I) and the entry relating thereto in column (2), the following serial No. in column (I) and the entry relating thereto in column (2) shall be inserted:-

"Zari and embroidery items, namely-imi, zari, kasab, salma, dabka, chumki, gata, sitara, naqsi, kora, glass bead, badla and gizai.";

(15) in Schedule C,

(a) in Part 1,-

(i) for the entry in column] (2) against serial No. l3B in column (1), the following entry shall be substituted:-

"Battery operated vehicle as defined in clause (u) of rule 2 of the Central Motor Vehicles Rules, 1989.";

(ii) after serial No. 14A n column (1) and the entry relating thereto in column (2), the following serial No. in column (I) and the entry relating thereto in column (2) shall be inserted:-

"14B. Blades, guards, sharks, arms, and shafts of an electric fan.";

(iii) after serial No. 25AA in column (1) and the entry relating thereto in column (2), the following serial No. in column (1) and the entry relating thereto in column (2) shall be inserted:-

"25AB. Digestive preparations, commonly known as aam pachak, amla, pachak, ajwain pachak and jal jeera.";

(iv) entry in column (2) against serial No. 27 A in column (1) shall be omitted;

(v) entry in column (2) against serial No. 31A in column (1) shall be omitted;

(vi) in the entry in column (2) against serial No. 37 A in column (l), for the words "Hurricane lantern, kerosene lamp, petromax", the word "Petromax" shall be substituted;

(vii) after serial No. 41 in column (1) and the entry relating thereto in column (2), the following serial No. in column (1) and the entry relating thereto in column (2) shall be inserted:-

"41A. Industrial L.P.G.";

(viii) after serial No. 45 in column (1) and the entry relating thereto in column (2), the following serial No. in column (I) and the entry relating thereto in column (2) shall be inserted:-

"45A. Lozenges.";

(ix) in the entry in column (2) against serial No. 54B in column (1),-

(A) for item (xxv), the following item shall be substituted:"(xxv) Machinery for refrigeration, cooling towers and air-conditioners";

(B) item (xxix) shall be omitted;

(x) after serial No. 54B in column (1) and the entry relating thereto in column (2), the following serial No. in column (1) and the entry relating thereto in column (2) shall be inserted:-

"54C. Spare parts, accessories and components of the plant

and machinery mentioned in items (i) to (xxvii) in column (2) against serial No. 54B, and spare parts, accessories and components of an air-conditioner.";

(xi) for the entry in column (2) against serial No. 55 in column (1), the following entry shall be substituted:-

"Chappals and sandals made exclusively of plastic or Ethyle Vinyl Acetate commonly known as EVA; hawai chappals; and sole and strap thereof.";

(xii) after serial No. 74A in column (1) and the entry relating thereto in column (2), the following serial No. in column (1) and the entry relating thereto in column (2) shall be inserted:-

"74B. Spare parts of motor vehicles.";

(xiii) for the entry in column (2) against serial No. 75A in column (1), the following entry shall be substituted:- "Sand, stone chips, and grit.";

(xiv) in serial No. 8lA in column (1), for the entry in item (vii) in column (2), the following items shall be substituted:-

"(vii) sawn or sized timber;

(viii) plywood.";

(xv) for the entry in column (2) against serial No. 88D in column (1), the following entry shall be substituted:- "Wire net, wire netting and stranded wire.";

(b) to Part II, the following notes shall be inserted:-

"Note 1.- The provisions of the Central Excise Tariff Act, 1985, 5 of J 986. read with the Explanatory Notes, as amended from time to time published by the Customs Co-operation Council, Brussels, shall apply for the interpretation of this Part.

Note 2.-Where any of the commodities is described under any heading or, as the case may be, sub-heading, of this Part and such description is different in any manner with the corresponding description in the Central Excise Tariff Act, 1985, such commodity described as aforesaid shall be covered by the scope of this Part and any other commodities, covered by the corresponding description in the Central Excise Tariff Act, 1985, shall not be covered by the scope of this Part.

Note 3.-Where the description of any of the commodities is under the heading or, as the case may be, sub-heading, of this Part matches fully with the corresponding description in the Central Excise Tariff Act, 1985, all the commodities covered for the purposes of the said tariff under that heading or sub-heading shall be covered by the scope of this Part.

Note 4.-Where the description of any of the commodities is under any heading or sub-heading is shown as "other", the interpretation as provided in Note 1 shall apply.";

(c) in Part III,-

(i) the entry in column (4) against serial No. 189 in column (1) shall be omitted;

(ii) in column (4) against serial No. 189 in column (1), the following entry shall be inserted:-

"Purified terepthalic acid.";

(iii) in the entry in column (4) against serial No. 192 in column (I), for the words "hydrogen peroxide.", the words "hydrogen peroxide, light magnesium oxide, tolune di-isocyanate, and calcium chloride." shall be substituted;

(iv) after serial No. 200 in column (1) and the entry relating thereto in column (4), the following serial No. in column (1) and the entry relating thereto in column (4) shall be inserted:-

"201. Pentaerythritol''.