Vat Actupdated - RS Goyal & Associates

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(6) The Appellate Board shall, for the purpose of discharging its functions, have all the
powers which are vested in the commercial tax authorities referred to in section 3,
and any proceeding before the Appellate Board shall be deemed to be a judicial
proceeding within the meaning of sections 193 and 228 and for the purpose of
section 196 of the Indian Penal code, 1860 (45 of 1860), and the Appellate Board
shall be deemed to be a civil court for all the purposes of section 195 and Chapter
35 of the Code of Criminal Procedure, 1898 (No. 5 of 1898).
[from 10.8.10]
CHAPTER - III Incidence of tax
5 : Incidence of tax.
(1) Every dealer whose turnover during a period of twelve months immediately preceding
the commencement of this Act exceeds the prescribed limits, which shall not exceed rupees
five lacs, shall from such commencement be liable to pay tax under this Act in respect of
sales or supplies of goods effected by him in Madhya Pradesh. Different limits may be
prescribed for different category of dealers.
(2) Every dealer to whom sub-section (1) does not apply shall be liable to pay tax under this
Act in respect of sales or supplies of goods effected by him in Madhya Pradesh with effect
from the date on which his turnover in a year first exceeds the limit prescribed under the said
sub-section but for the purpose of assessment of the tax for that year, only so much of his
turnover as is in excess of such limit, shall be taken into consideration.
6 : Determination of liability to pay tax
(1) The Commissioner shall, in the prescribed manner, institute proceedings for the purpose
of determining the liability of a dealer to pay tax under this Act. Such liability shall be
determined by an order and such determination shall be made within a period of twelve
months from the date of institution of such proceedings.
(2) Notwithstanding anything contained in sub-section (2) of Section 5, liability of a dealer to
pay tax under this Act shall not be determined from a date earlier than five years prior to -
(i)the date of institution of proceedings under sub-section (1); or
(ii) the date of validity of the registration certificate,
whichever is earlier.
7 : Joint and several liability of certain class of dealers.
(1) (a) Where a dealer who carries on the business of supplying goods in the course of
execution of a works contract entered into by him (hereinafter referred to as a contractor)
through another such dealer (hereinafter referred to as a sub-contractor) directly or
otherwise, and the sub-contractor executes such works contract and each or either of them
is liable to pay tax under this Act, then notwithstanding anything contained in this Act, the
contractor and the sub-contractor shall be jointly and severally liable to pay tax in respect of
transfer of property in goods whether as goods or in some other form involved in the
execution of such works contract.
(b) If the contractor proves in the prescribed manner to the satisfaction of the Commissioner
that the tax has been paid by the sub-contractor on the turnover of the goods supplied in the
course of execution of the works contract, the contractor shall not be liable to pay tax again
on the turnover of such goods.
6 (c) If the sub-contractor proves in the prescribed manner to the satisfaction of the
Commissioner that the contractor has opted for composition under section 11-A in respect of
the works contract being executed by the sub-contractor, the sub-contractor shall not be
liable to pay tax on the turnover of the goods supplied in the execution of the works contract. 6
(2) 2 Omitted 2