An Act to give effect to certain financial proposals of the Government of Kerala for the financial year 2004-05.
Preamble.- WHEREAS, it is expedient to give effect to certain financial proposals of the Government of Kerala for the Financial Year 2004-05;
BE it enacted in the Fifty-fifth Year of the Republic of India as follows:-
1. Short title and commencement.-(1) This Act may be called the Kerala Finance Act,2004
(2) Item (iv) (b) of sub-section (1) and sub-section (3) of section 3 shall be deemed to have come into force on the 1st day of July, 1987,sub-section (14) of section 3 and sub-section (1) of section 6 shall be deemed to have come into force on the 4th day of February, 2004 and the remaining provisions of this Act shall be deemed to have come into force on the 1st day of April, 2004.
2. Amendment of Act 35 of 1958.- In the Kerala Money Lenders Act, 1958 (35 of 1958),-
(1) in section 7, after the existing proviso to sub-section(1), the following proviso shall be inserted, namely:-
“Provided further that the Government may specify, by notification, the rate of interest under sub-section (1) from time to time.”;
(2) in section 16B, in sub-section (1A), for the words “one hundred rupees” the words “three hundred rupees” shall be substituted.
(3) after section 16B, the following section shall be inserted, namely:—
"16C, Fees for filing Interlocutory Applications.—Every interlocutory application prescribed by the Government and filed before, the authorities under this Act specified below, other than those filed by officers empowered by Government, shall be accompanied by the following fees, namely:—
(a) before any Appellate Authority—One hundred and fifty rupees;
(b) before any Revisional Authority—One hundred and fifty rupees.";
(4), in section 20A, in sub-section (1A), for the words "two hundred and fifty rupees", the words "seven hundred rupees" shall be substituted.
3. Amendment of Act 15 of 1963.—In the Kerala General Sales Tax Act, 1963,—
(1) in Section 2,-
(i) after clause (vi), the following clauses shall be inserted, namely:-
"(vi a) "Books of Accounts" means and includes ledger, day book, Cash book, accounts book and other records whether kept in written form or print-outs of data stored in a floppy, disc, tape or any form of electro magnetic data storage device.
(viaa) "Brand name" means a name or trade mark whether registered or not registered under the Trade Marks Act, 1999 (Central Act 47 of 1999) and includes a name or mark, such as a symbol, monogram, label signature or intended words or any writing which is used in relation to a product for the purpose of indicating or so as to indicate, a connection in the course of trade between the product and a dealer using such name or mark with or without any indication of the said dealer;";
(ii) after clause (x), the following clause shall be inserted, namely;—
"(x a) "document" includes written or printed records of any sort, title deed and any electronic record as defined in the Information Technology Act, 2000 (Central Act 21 of 2000);";
(iii) after clause (xi), the following clause shall be inserted, namely:—
"(xi a) "Fair market price" means the sale price for the sale of goods fixed by the assessing authority if he has reason to believe that the dealer has practiced undervaluation and the sale price shall be the value or price at which the goods of the kind or quality are sold or capable of being sold in the open market or the price obtained from the Kerala State Civil Supplies Corporation Ltd. Or Economics and Statistics Department of the State or other reliable sources on the date of sale pf such goods;.";
(iv) in clause (xxvii),—
(a) in sub-clause (i) of Explanation (1 A), after the words "in the execution of such contract" the following shall be added at the end, namely:—
but shall not include the amount received or receivable by the contractor from the awarder for the execution of the contract towards labour charges and other service chargers.";
(b) after sub-clause (iii) of Explanation (1 A), the following sub-clause shall be added, namely:—
"(iv) The turnover in respect of liquor imported or manufactured at any distillery, brewery, winery or other manufactory established under section 14 of Abkari Act, 1 of 1077, shall include any duty of excise payable by such importer or manufacturer.";
(2) in section 4, in clause (c) of sub-section (3), for the words "one lakh fifty thousand rupees" the words "three lakh rupees" shall be substituted;
(3) in clause (i) of sub-section (2C) of section 5, after sub-clause (b), the following clause shall be inserted, namely:—
"(c) by any manufacturer of distillery, brewery, winery or other manufactory established under section 14 of Abkari Act, 1 of 1077, shall be liable to pay turnover tax on the turnover including any duty of excise leviable on such liquor at the hands of such person, whether such duty is paid by such person or any subsequent dealer as per the provisions in section 18 of the said Act.";
(4) in section 5B,-
(i) for the words and figures "serial number 46 and 60 of the First Schedule", the words and figures "serial number 46, 46A and 60 of the First Schedule" shall be substituted; -
(ii) the existing section shall be numbered as sub-section (1) of that section and after the sub-section (1) as so numbered, the following sub-section shall be inserted, namely.—
"(2) Catering units which supply cooked food to hotels, parties in connection with marriages and other ceremonial functions, whose total turnover in a year exceeds rupees five lakh shall pay an amount of rupees five hundred per annum for every one lakh rupees or part thereof in excess of rupees five lakh as licence fee in such manner as may be prescribed.";
(5) for section 5BA, the following section shall be substituted, namely:—
"5BA. Levy of licence fee of lottery tickets.—Any dealer liable to pay tax under sub-section (1) of section 5 shall pay licence fee per draw at the following rates, in lieu of tax payable under that section, namely:—
"(a) Paper Lottery—
(i) Weekly lotteries
Rs. 25,000
(ii) Bi-weekly lotteries
Rs. 30,000
(iii) Monthly lotteries
Rs. 60,000
(iv) Bumper/Super/Festival lotteries
Rs. 1,10,000
(v) Mega Bumper lotteries
Rs. 3,10,000
(b) On-line lotteries
Rs. 5,000 for weekly draw per one retail outlet.
Explanation:—-For the purpose of this section "retail outlet" means any premises where vending machine is placed for the purpose of selling on-line lottery tickets to customers and each vending machine from which tickets are generated shall be deemed to be a separate retail outlet"; :
(6) for section 5C, the following section shall be substituted, namely:—
"5C. Computation of turnover of a denier in respect of transfer of goods involved in the execution of works contract.—The turnover of a dealer in respect of transfer of goods involved in the execution of works contract, where the transfer takes place not in the form of goods, but in some other form and the circumstances are such that the actual turnover is not ascertainable from the books of accounts of the dealer, may be computed after deducting labour and other charges as specified in the table below from the total amount of contract.
Table
Serial
Number
Type of works contracts
Labour or other charges as a percentage value of the works contract
(1)
(2)
(3)
1.
Electrical contract
20
2.
All structural contract
30
3.
Sanitary contract
33.5
4.
Retrading contract
50
5.
Dyeing and textile printing contract
50
6.
Photography and Printing contract
30
7.
Sculptural contracts or contracts relating to arts
70
8.
Refrigeration, air conditioning or other machinery,rolling shutters, cranes, installation contract
15
9.
All other contract
30";
in section -7,
(i) in sub-section (1),—
(a) for clause (a) and the Explanation the following clause and explanation shall be substituted, namely:—
"(a) Any dealer in gold or silver ornaments or wares, may at his option instead of paying tax in accordance with the provisions of that sub section, pay tax at one hundred and thirty per cent of the tax payable by him as conceded in the return or accounts or the tax paid for the previous consecutive three years whichever is higher.
Explanation:-- Forthe purpose of this clause "tax payable as conceded in the return or accounts for the previous consecutive three years means tax payable on the sales turnover under sub-section (1) of section 5 and the tax payable on the purchase turnover under section 5A."
(b) after clause (a), the following clause shall be inserted, namely:-
"(aa) an application for compounding tax as provided in clause (a) shall be filed before the assessing authority on or before 31st May of the respective financial year and the assessing authority shall issue the order of accepting or rejecting the application on or before 30th day of June thereof:
Provided further that the option for the financial year 2004-05 shall be filed before the assessing authority on or before 31st,day of August, 2004 and the assessing authority shall issue the order of accepting or rejecting the option on or before 30th September, 2004: :
Provided further that a dealer who had already filed the option for the financial year 2004-05 as per clause (aa) above may withdraw or file fresh option within the above said period."
(c) in clause (b), for the Explanation, the following Explanation shall be substituted, namely:—
"Explanation:—For the purpose of this clause primary crusher shall also be reckoned for computation of the quantum of compounded tax and the rate of compounded tax applicable to primary crusher shall be 50 per cent of therates mentioned in items (i), (ii) and (iii) above.";
(ii) for sub-section (7), the following sub-section shall be substituted, namely:—
"(7) Notwithstanding anything contained in sub-section,(l) of section 5, every contractor; in civil works may, at his option, instead of paying tax in accordance with clause (iv) of that sub-section, pay tax at the rate of two per cent on the whole amount of contract.
Explanation:- For the purpose of this section "civil works" means construction or repair or maintenance of buildings, bridges, roads, runways, dams, canals, wells, ponds, swimming pools, water tanks or culvert including any masonry work or any other, work of the like nature as may be, notified by Government in this behalf, from time to time, but shall not include any improvement or upgradation of such, civil work by means of fixing or laying of all kinds of floor tiles, mosaic tiles, slabs, stones, marbles, glazed tiles, painting, polishing, partitioning, wall panelling interior decoration, false sealing, carpeting, electrification, air conditioning or any other improvement on an existing structure.";
(iii) for sub-section (7C), the following sub-section shall be substituted,namely:-
"(7C) Every awarder shall obtain from the contractor or assessee who is liable to pay tax under sub-section (1) of section 5 including those who opted payment of tax under section 7, a declaration from the contractor or assessee with the details of tax liability at the time of every payment in relation to the works contract including the advance payment:
Provided that the awarder shall obtain quarterly certificate issued by the assessing authority, showing the tax liability or the tax remittance as the case may be, of the contractor upto the previous quarter from the contractor or assessee:
Provided further that the awarder shall be personally liable for any tax escaped frorn collection for the reason of payments effected without obtaining the certificate as stated in the preceding, proviso.";
(8) section 12, shall be re-numbered as sub-section (1) of that section and after sub-section (1) as so re-numbered the following sub-sections shall be inserted, namely:-
"(2) The burden of proving that the dealer has not received fair market price on any transaction shall lie on such dealer.
3. The burden of proving the genuineness of the transport of goods using thedocuments prescribed in section 29, shall lie on such dealer".
(9) in section 14,-
(i) in sub-section (1).—
(a) for clauses (a) to (d), the following, clauses shall be substituted, namely:-
“(a)
Where the total turnover is less than three lakhruppes
Five hundred rupees
(b)
Where the total turnover is three lakh rupees and above but is less than ten lakh rupees
Seven hundred and fifty rupees
(c)
where thetotal turnover is ten lakh rupees and above but less than fifty lakh rupees
One thousand rupees plus twenty five rupees for each lakh or part thereof above ten lakh
(d)
were the total turnover is fifty lakh rupees and above
Two thousand rupees-plus fifty rupees for each lakh or part thereof above fifty lakh:
Provided that the total registration fee payable shall in no case exceed twenty thousand rupees.";
(b) in the second proviso, for the words "one thousand rupees" the words "onethousand and five hundred rupees" shall be substituted;
(c) after the second proviso, the following proviso shall be inserted, namely:-
“Provided also that the certificate issued to casual traders shall be valid for a periodof three months from the date of issue of the certificate.";
(ii) in sub-section (3), for the words- "one hundred rupees" the words "one hundred and fifty rupees'' shall be substituted;
(iii) after sub-section (3), the following sub-section shall be inserted, namely:-
“ (3 A) A dealer conducting exhibitions, exchange melas or any prize schemes for sales promotion, shall obtain a written permission from the assessing authority, in whose jurisdiction the dealer is registered under the Act, for conducting the same by remitting a fee of rupees five hundred for each such scheme and the assessing authorityshall issue a certificate in the manner prescribed and such certificate shall be exhibited at a conspicuous place where exhibitions or exchange rnelas or prize schemes are conducted.
(iv) after sub-section (5), the following sub-sections shall be inserted, namely:—
"(5A) A certificate issued under sub-section (2) shall bevalid for a period of one year and shall be renewed annually on payment of the fees as specified below;—
(a)
dealers registered under the Kerala General Sales Tax Act, 1963
Rs. 500 (Rupees five hundred) per year
(b)
dealers registered under the Kerala General Saks Tax Act, 1963 and the Central Sales Tax Act, 1956
Rs. 1,500 (Rupees One thousand and five hundred) per year.
(5B) Every registered dealer shall be issued an electronic identity card subject to such conditions as may be notified by Government in this behalf.";
(10) in section 15,—
(i) in sub-section (4), for the words "one hundred rupees" the words "one hundred and fifty rupees" shall be substituted;
(ii) in sub-section (6), for the words "one hundred rupees" the words" one hundred and fifty rupees" Shall be substituted;
(11) in section 17,—
(a)in sub-section (8), after the proviso, the following provisos shall , be inserted, namely:— .
"Provided further that any modified assessment or modified re-assessment in pursuance of an order of the appellate or the revisional authority shall be completed within a period of one year from the expiry of the year in which the order was received:
Provided also that all such modified assessments pending as on 1st day of April, 2004 shall be completed on or before the 31st day of March, 2005.”;
(b)after sub-section (8), the following sub-section shall be inserted, namely:-
"(8A) Notwithstanding anything contained in sub-section (8) in case any investigation or enquiry is pending under this Act or any other law, where any assessment cannot be completed within the period specified under the said subsection, the Commissioner may, for good and sufficient reasons, extend the period of completion of the assessment not exceeding a period of six months from the period specified in that sub-section.";
(12) in section 19B, in sub-section (1), for the words "prevailing market price" the words "fair market price" shall be substituted;
(13) in section 23, for sub-section (3A), the following sub-section shall be substituted, namely:-
“(3A) Where any dealer has failed to include any turnover or taxable turnoverof his business or to pay the tax due thereon on the taxable turnover in any return filed or where any turnover or tax due has escaped assessment, interest under sub-section (3) shall accrue on the tax due on the turnover with effect from such date on which the tax due would have fallen due for payment, had the dealer included the same in the return relating to the period to which the turnover or tax as the case may be, relates.”;
(14) after section 23 AA, the following section shall be inserted, namely:—
“23B.”Reduction of interest in certain cases.— ( 1) Notwithstanding anything contained in this Act, or in any judgment, decree or order of any Court or Tribunal, an assessee, who is in arrears to pay tax or any other amount due under this Act uptothe period ending on 3.1st March, 2003 may opt for settling the arrears, by availing a reduction of interest, by paying the amount as shown below:—
(i) outstanding tax amount along with 30 per cent of interest already due on the date of payment, if paid on or before 29th February, 2004.
(ii) outstanding tax amount with 40 per cent of interest already due on the date of payment if paid on or before 31st March, 2004;
Provided that the reduction in interest granted under this section shall be applicable to cases in which revenue recovery proceedings have already been initiated and where the amount is settled under this section, the assessing authority shall withdraw the revenue recovery proceedings against such assessee;
Provided further that the assessing authority shall have the power to collect the taxadvised for revenue recovery.
(2)A dealer who opt for payment of the arrears under this section shall make an application to the assessing authority in writing on or before the 15th February, 2004.
(3) On receipt of an application under sub-section (2), the assessing authority shall intimate the quantum of tax or other amount due under this Act and the interest payable under sub-section (3) of section 23 as on date of payment after allowing the reduction of interest under sub-section (1).
(4) Where any second appeal or revision filed by the Government is pending against any order or proceedings giving rise to any demand and an assessee has opted to avail himself of the benefit under this section in respect of such demand, such appeal or revision may be continued as if the dealer had not opted for the benefit under this section.";
(15) in section 28A, in sub-section (1), for the words "prevailing market price", the words " fair market price" shall be substituted;
(16)in section 30E, in sub-section (9), for the words "rupees five hundred", the words " rupees seven hundred" shall be substituted;
(17)in section 34, in sub-section (2), for the words "two hundred rupees", the words " three hundred rupees" shall be substituted;
(18)in section 36, in sub-section (2), for the words "two hundred rupees", the words " three hundred rupees" shall be substituted;
(19)in section 38, in sub-section (2), for the words "five hundred rupees", the words " seven hundred rupees" shall be substituted;-
(20)in section 39, in sub-section (3), for the words "five hundred rupees", the words " seven hundred rupees" shall be substituted;
(21) in section 42 A, in clause (a) for the words "one hundred rupees", the words " one hundred and fifty rupees" shall be Substituted;
(22) in section 45A, in sub-section (5A), for the words "rupees two hundred" and "rupees five hundred", the words "rupees three hundred" and "rupees seven hundred" shall, respectively, be substituted;
23. Amendment of the Schedule,—
(i) in the First schedule,—
(a) after serial number 5 in column (1) and the entries against it in
columns (2) to (4), the following serial number and entries shall, respectively be inserted, namely:—
"6. Aluminium products (including aluminium extrusions) and products, aluminium alloys not elsewhere mentioned in this schedule
do.
8";
(b) against serial number 20, in column (4) for the figure '4' the figure '1' shall be substituted;
(c) after serial number 26 in column (1) and the entries against it in columns (2) to (4), the following serial number and entries shall, respectively be inserted, namely:—-
"27. Cement including white cement do. 15";
(d) after serial number 46 in column (1) and the entries against it in columns (2) to (4) the following serial number and entries shall, respectively be inserted, namely:—
“46A.
Cooked food including beverages, not falling under entry 60 of the Schedule, sold to Airline service Companies and Institutions, Shipping Companies, for serving in Aircraft ships or steamers or served in Air craft, ship or steamers
do.
8”
(e) against item No. (1) of serial No. 54, for the figure 8 in column (4), the figure ‘12’ shall be substituted;
(f)after serial number 54 in column (1) and the entries against it in columns (2) to (4), the following serial numbers and entries shall, respectively be inserted, namely:—
“55.
Electronic systems, instruments, apparatus and appliances other than those specified elsewhere in this schedule and spare part and accessories thereof
do.
8”;
56.
Computers of all descriptions
do.
4";
(g) after serial number 61 in column (1) and the entries against it in columns(2) to (4), the following serial number and entries shall, respectively be inserted, namely:—
“62.
Food including vegetative or animal preparations sold in airtight containers and food colours,essences of all kinds and powers or tablets used for making food preparations
do.
12";
(h) after serial number 63 in column (1) and the entries against it in columns (2) to (4), the following serial number and entries shall, respectively be inserted, namely:—
“64.
Furniture of all kinds whether sold as finished goods or in unassembled form
do.
12”;
Explanation.—Slotted angles when assembled form furniture or rack shall be deemedto be furniture for the purpose of this entry";
(i) after serial number 81 in column (1) and the entries against it in columns (2) to (4), the following serial number and entries shall, respectively, be inserted, namely:—
"82. Linoleum and flexible flooring material"; do. 12";
(j) after serial number 86 in column (1) and the entries against it in columns (2) to (4), the following serial number and entries shall, respectively be inserted, namely:—
"87.
Medicines and drugs including Allopathic, Ayurvedic, Homoeopathic, Sidha and Unani preparations and glucose I.P.
do.
8";
(k) against serial number 92, the entries in columns (2) to (4) shall be renumbered as item (i), thereof and after the entry as so numbered the following item and entries shall, respectively, be inserted, namely:—
"(ii)
Fresh milk including pasteurised, tonned or reconstituted milk
At the point of first sale in the State by a dealer who is liable to tax under section 5
2";
(l) after serial number 92 A in column (1) and the entries against it in columns (2) to (4) the following serial numbers and entries shall, respectively be inserted, namely:—
"'92B.
Mobile phone
At the point of first sale in the State by a dealer who is liable to tax under section 5
4";
(m) after serial number 96 in column (1) and the entries against it in columns (2) to (4), the following serial number and entries shall, respectively be inserted, namely:—
"97.
Non-alcoholic drinks, whether or not bottled, canned or packed
do.
25
Explanation.—Powders, Tablets, Granules and concentrates used for the preparation of non-alcoholic drinks shall, whether or not they are bottled or canned, be liable to tax under this entry"; -
(n)after serial number 102 in column (1) and the entries against it in columns(2) to (4), the following serial, number and entries shall, respectively be inserted, namely :-
(o) for serial number L08 in column (1) and the entries against it in columns (2) to (4) the following serial number and entries shall, respectively, be substituted, namely:-
“108. Petroleum products namely:-
(i)
High speed Diesel Oil
At the point of sale in the State by any oil company liable to tax under section 5 except where the sale is by an oil company to another oil company and at the point of first sale in the State by a dealer who is liable to tax under section 5 when the sale is not by an oil company
40
(ii)
Kerosene
do.
24
(iii)
Motor spirit including Light Diesel Oil (LDO) and excluding petrol, aviation turbine fuel and high speed diesel oil
At the point of sale in the State by any oil company liable to tax under section 5 except where the sale is by an oil company to another oil company and at the point of first sale in the State by a dealer who is liable to tax under section 5 when the sale is not by an oil company
50
(iv)
Naphtha
do.
40
(v)
Petrol other than Naphtha
do.
44
(vi)
Other petroleum products namely
do.
30
1. Aromex
2. Base oil
3. Benzene
4. Bitumen
5. Carbon Black Feed Stock
6. Civol
7. Cutting oil
8. Glass cleaner
9. Heavy Petroleum Stock
10. Hexane
11.HHS
12.Tomax
13. J.S.P.
14. Low Sulphur Heavy Stock
15. Menthol
16. Methmix
17. Mineral Turpentine Oil
18. Mosquito Larvicidal Oil
19. Polyisobutene
20. Process Oil
21. Residual Fuel Oil, and furnace oil
22. Slop Cut
23. Solvent 1425
24. Solvent Oil
25. Special Boiling Point Spirit
26. Spray Oil
27. Toluene
28. Transformer Oil Feed Stock
29. Water Menthanol Mix
30. Wax
31. White Oil
32. Any other petroleum products not elsewhere mentioned in this Schedule or in the Second Schedule
(viii)
Aviation Turbine Fuel including Aviation Gasoline
At the point of sale in the State by any oil company liable to tax under section 5 except where the sale is by an oil company to another oil company and at the point of first sale in the State by a dealer who is liable to tax under section 5 when the sale is not by an oil company
50
(viii)
Liquified Petroleum Gas
At the point of, first sale in the State by a dealer who is liable to tax under section 5
22
(ix)
Lubricating Oil, grease, break fluid, transformer oil and other quenching oils
do.
35
(x)
Automotive LPG
do.
20
(xi)
Liquified Natural Gas {Compressed Gas)
do.
28
Explanation:—For the purpose serial No. 108 (i) to (xi) above, Oil Company means Cochin Refineries Ltd., Indian Oil Corporation Ltd., Bharath Petroleum Corporation Ltd., Hindustan Petroleum Corporation Ltd., Indo-Burma Petroleum Co. Ltd. and includes such other company as the Government may by notification in the Gazette specify in this behalf.";
(p) after serial number 112 in column (1) and the entries against it in columns (2) to (4), the following serial number and entries shall, respectively be inserted, namely:—
113
Plastic and articles of plastics including PVC pipes, plastic paper, , cellophane, polythene, polyurethene, polythelene, polyster, whether expanded or not, polystereneformated sheet, sun control polyster film, polyster tracing and drafting film, polyster self adhesive insulation tapes, fibre, re-inforced plastics not coming under any other entry in this schedule or in the fifth schedule.
do.
12”;
(q) after serial number 119 in. column, (1) and the entries against it in columns (2) to (4), the following serial number, and entries shall, respectively be inserted, namely::—
"120.
Ready-made garments, hosiery goods, bed sheets, towels, pillow covers, napkins and baby diapers
do.
8";
(r) after serial number 134 in column (1) and the entries against it in columns (2) to (4), the following serial number and entries shall, respectively be inserted, namely:-
"135.
Spare parts and accessories of motor vehicle and motor vessels including those, relating to tractors, power tiller and bearing, with bore diameter below 5 centimetres
At the point of first sale in the State by a dealer who is liable to tax under section 5
8";
(s) after serial number, 140 in column (1) and the entries against it in columns (2) to (4), the following serial number and entries shall, respectively be inserted, namely:-—
"141
Squashes, sauces, fruit juices, fruit pulp, soda, mineral water, Horlicks, Boost, Bournvita, Complan, Glucose D, Glucovita and similar other items whether or not bottled, canned or packed
do.
20
Explanation:—Powders, tables, granules and concentrates used for the preparation of beverages shall, whether or not they are bottled or canned, be liable to tax under this entry.";
(t) after serial number 143 in column (1) and the entries against it in columns (2) to (4), the following serial number and entries shall, respectively be inserted, namely:—-
"144.
Shampoo, Talcum Powder including medicated talcum powder, sandal wood oil, ramachom oil, Cinnamon oil, other perfumeries and cosmetics not falling under any other entry in this Schedule.
do.
20";
(u) after serial number 145 in column (1) and the entries against it in columns (2) to (4), the following serial number and entries shall, respectively be inserted, namely:—
"146.
Suitcases and brief cases of all kinds made of plastics, nylon,
leather or moulded material
do.
12";
(v) after serial number 150 in column (1) and the entries against it in columns (2) to (4), the following serial number and entries shall, respectively be inserted, namely:—;
"151.
Television sets and picture tube thereof
do.
12";
(w) after serial number 159 in- column (1) and the entries against it in columns (2) to (4) the following Serial number and entries shall,-respectively be inserted, namely:—
"160.
Tabulating machines, calculating machines, duplicating machines, parts and accessories thereof
do.
8";
(x) after serial number 169 in column (1) and the entries against it in columns (2) to (4), the following serial number and entries shall, respectively be inserted, namely:—
“170.
Water supply and sanitary equipments and fittings, water meter, its spare parts and
accessories
do.
12";
(y) for serial number 123 in column (1) and the entries against it in columns (2) to (4), the following serial number and entries shall respectively, be substituted, namely:-
“123.
Rubber,-
(a)
in natural and semi processed form not coming under items (b) and (c) below
(i) purchased within the State
At the point of last purchase in the State by a dealer, who is liable to tax under section 5
12
(ii) brought from outside the State
At the point first sale in the State by a dealer who is liable to tax under section 5
12
(b)
Reclaimed rubber all grades and qualities
At the point first sale in the State by a dealer who is liable to tax under section 5
12
(c)
Synthetic rubber
At the point first sale in the State by a dealer who is liable to tax under section 5
12
(z) for serial number 133 in column (1) and the entries-against it in columns (2) to (4), the following serial number and entries shall, respectively, be substituted, namely::—
“133. Soaps other than handmadedo..12”;
(ii) In the Second Schedule, in serial number 2, after item (P) in column (2) and the entries against it in columns (3) and (4), the following item and entries shall respectively be inserted, namely:—
“(q) GalavanisedIron Pipes (G. I. Pipe) do. 4”;
(iii) In the Third schedule,
(a)serial number 23 and the entries against it shall be omitted;
(b)in serial number 28, for the entry "Hand made paper" the entry "Handmade paper, handmade soap and handmade agarbathi" shall be substituted,
4. Validation of certain actions under Act 15 of 1963.—(1) Notwithstanding anything contained in any judgement, decree or order of any Court, Tribunal or other authority, any assessment or re-assessment made or purported to have been made under the provisions of sub-section (2C) of section 5 of the Kerala General Sales Tax Act, 1963 (15 of 1963), shall be deemed to be effective as if such assessment or re-assessment had been made under the said Act as amended by the Kerala Finance Act, 2004 and accordingly,—
(a)all acts, proceedings or things done or taken by an officer or authority in connection with the assessment, levy or collection of such tax shall, for all purposes be deemed to be and to have always been done or taken in accordance with law;
(b)no suit or other proceedings shall be maintained or continued in any Court, Tribunal or before any authority for the cancellation of any such assessment or re-assessment as the case may be, or for the refund of any such tax so collected;
(c)no Court, Tribunal or any authority shall enforce any decree or order directing the cancellation of any such assessment or re-assessment or refund of any tax collected thereunder;
(d)any tax assessed of re-assessed under the Kerala General Sales Tax Act, 1963 (15 of 1963) during the period from 1st day of July, 1987 and before the 1st day of April, 2004 but not collected before the 1st day of April, .2004 shall be recovered in the manner provided under the said Act and the Rules made thereunder.
(2) Notwithstanding anything contained in any judgement, decree or order of any Court, Tribunal or other authority, any dealer who opted for payment of arrears or purported to have exercised such option under sub-section (2) of section 23B of the Kerala General Sales Tax Act, 1963 (15 of 1963) after the expiry of the date specified in that sub-section but before the 31st March, 2004 shall be deemed to have exercised his option validly as if such option has been made under that sub-section and accordingly,—
(a) all acts, proceedings or things done or taken by an officer or authority in connection with the assessment, levy or collection of such tax shall, for all purposes be deemed to be and to have always been done or taken in accordance with law;
(b)no suit or other, proceedings shall be maintained or continued in any Court, Tribunal or other authority for the cancellation of any such assessment, levy or collection of such tax;
(c)any assessee failing to pay the tax of any other amount intimated by the assessing authority under sub-section (3) of section 23B within the time specified shall be liable to remit the entire tax with interest as if he had not filed any option under sub-section (2) of section 23B of this Act.
(3) Notwithstanding anything contained in the Kerala Provisional Collection of Revenues Act,1985 or,in the Kerala General Sales Tax Act, 1963 or any judgement, decree or order of any court, if any registered dealer had collected any sum towards tax under columns (4), (6) and (8) of serial numbers 12 to 32 of item (iv) of sub-clause 18 of clause 3 of the Kerala Finance Bill, 2004 from the 1st day of April, 2004 as per sub-clause (2) of clause I of the Said Bill read with the provisions in the Kerala Provisional Collection of Revenues Act, 1985 to the date of publication of the Kerala Finance Act, 2004 in the Gazette shall be deemed to have been validly collected under the provisions of the aforesaid Acts.
5. Amendment of Act 32 of 1976.—In the Kerala Tax on Luxuries Act, 1976 (32 of l976),—
(1) in section 2,—
(i) after clause (d), the following clause shall be inserted, namely:— “(dd). ‘house Boat' means a floating vessel, used for boating provided with amenities and services rendered by way of business for monitory consideration.”;
(ii) in clause (f), after the words “a hotel” and before the words “the rate of charges” the words “or a house boat” shall be inserted;
(2) in section 4,—
(i) in sub-section (1) after the words “in a hotel” and before the words “and in respect of” the words “or a house boat” shall be inserted;
(ii) in sub-section (2) after clause (c) the following clause shall be inserted, namely:—
“(cc) Where the rate of charges for accommodation for residence in non air-conditioned room and other amenities and services (exclusive of charges for food, drink and telephone call) is more than Rupees five hundred per day per room.
ten per cent
of such rate”;
(iii) for clause (d), the following clause shall be substituted, namely:—
“(d) Where, the rate of charges for accommodation fifteen per cent for residence in air conditioned rooms and otheramenities and services (exclusive or- charges for food, drink and telephone call) is more than rupees five hundred per day per room.
fifteen per cent of such rate”;
(iv) after sub-section (2), the following section shall be inserted, namely:—
“(2A) The luxury tax shall be payable by the proprietor of the house boat at the rate of 4 per cent of the rent received on all amenities and services provided (exclusive of charges for food, drink and telephone calls) per boat per day.”;
(3) after section 4B, the following section shall be inserted, namely:—
“4C. Registration of house boats.—(1)Every proprietor of a house boat rented for accommodation for residence or leisurely cruising shall get his house boat registered and renewed annually.
(2) An application for registration or renewal thereof shall be made to such authority, in such manner and within such period, as may be prescribed, along with a registration fee of rupees one thousand or a renewal fee of rupees five hundred as the case may be per boat per annum”;
(4) in section 7, in sub-section (2), for the words “one hundred rupees” the words “three hundred rupees” shall be substituted;
(5) in section 8, in sub-section (4) for the words rupees “two hundred and fifty” the words rupees “seven hundred rupees” shall be substituted;
(6) in section 9, in entires against clause (a), for the words rupees “one hundred”, the words “one hundred and fifty rupees” shall be substituted;
(7)in section 12, in sub-section (1), after the words “a hotel” and before the words “or place of business” the words “or house boat” shall be inserted;
“(8) in section 12B, —
(i) in clause (5) for the words “one hundred rupees” the words “three hundred rupees” shall be substituted;
(ii) in clause (6) for the words “two hundred and fifty rupees” the words “seven hundred rupees” shall be substituted;”
(9) in section 13,—
(i) in clause (b) of sub-section (1), after the word "hotel" and before the words “or business” the words “or house boat” shall be inserted;
(ii) in clause (b) of sub-section (2), after the words “hotel” and before the words “or business” the words “or house boat” shall be inserted;
(iii) in clause (a) of sub-section (3), after the word “hotel” and before the words “or place of business” the words “or house boat” shall be inserted;
(iv) in sub-section (3), after the word “hotel” and before the words “or business” the words “or house boat” shall be inserted;
6. Amendment of Act 15 of 1991.—In the Kerala Agricultural Income Tax Act, 1991 (15 of 1991), —
(1) after section 37A, the following section shall be inserted, namely:—
"37B. Reduction of interest in certain cases.—(1) Notwithstanding anything contained in this Act or in any judgment, decree, or order of any court, or tribunal, an assessee; who is in arrears to pay tax or any other amount due under this act upto the period ending with 31st March 2003 may opt for settling the arrears by availing a reduction of interest by paying the amount as shown below:
(i) outstanding tax amount along with 30 per cent of the interest already due on the date of payment, if paid on or before 29th February, 2004.
(ii) outstanding tax amount along with 40 percent of the interest already due on the date of payment, if paid on or before 31st March, 2004:
Provided that the reduction in interest granted under this section shall be applicable to eases in which revenue recovery proceedings have already been initiated and where the amount is settled under this section, the assessing authority shall withdraw the revenue recovery proceedings against such assessee:
provided further that assessing authority shall have the power to collect the tax advised for revenue recovery.
(2) An assessee who opt for payment of the arrears under this section shall makeapplication to the assessing authority, in writing on or before the 15tbFebruary,2004.
(3) On receipt of an application, under sub-section (2), the assessing authority shall intimate the quantum of tax or other amount due under this Act and the interest payable under sub-section (4) of section 37 as on the date of payment after allowing the reduction of interest under sub-section (1).
(4) Whereany second appeal or revision filed by the Government is pending against any order or proceedings giving rise to any demand and an assesseehas opted to availhimself of the benefit under this section in respect of such demand, such appeal or revision may be continued, as if the assessee had not opted for the benefit under this section.”;
(2) in section 72, in sub-section (3) for the words “two hundred rupees”, the words “three hundred rupees” shall be substituted;
(3) in section 74, in sub-section (6), for the words “five hundred rupees” the word “seven hundred rupees” shall be substituted;
(4) in section 77, in sub-section (2), for the words “five hundred rupees”, the words “seven hundred rupees” shall be substituted;
(5) in section 78A, for the words “one hundred rupees” against clauses (a) and (b), the words “one hundred and fifty rupees” shall, respectively, be substituted.
7. Validation of certain actions under Act 15 of1991.—(1) Notwithstanding anything contained in any judgement decree or order of any Court, Tribunal or other authority, any assessee who opted for payment of arrears or purported to have exercised such option under sub-section (2) of section 37b of the Kerala Agricultural Income Tax Act, 1991 (15 of 1991) after the expiry of the date specified in that sub-section but before the 31 st March, 2004 shall be deemed to have exercised his option validly as if such option had been made under that sub-section and accordingly,—
(a)all acts, proceedings or things done or taken by an officer or authority in connection with the assessment, levy or collection of such tax shall,' for all purposes he deemed to be and to have always been done or taken in accordance with law;
(b)no suit or other proceedings shall be maintained or continued in any Court, Tribunal or other authority for the cancellation of any such assessment, levy or collection of such tax;
(c)any assessee failing to pay the tax or any other amount intimated by the assessing authority under sub-section (3) of section 37B within the time specified shall be liable to remit the entire tax with interest as if he had not filed any option under sub-section (2) of section 3 7B of this Act.
8. Amendment of Act 15 of 1994.—In the Kerala Tax on Entry of Goods into Local Areas Act, 1994 (15 of 1994),—
(1)in section 2, in sub-section (1), after clause (b), the following clause shall be inserted, namely:—
“(ba) ‘Appellate Tribunal' means the Appellate Tribunal appointed under section 4 of the Kerala General Sales Tax Act, 1963 (15 of 1963).
(2)in section 6, after the words “Assistant Commissioner” and before the words “of Sales Tax” the words “or Deputy-Commissioner” shall be inserted;
(3) for section 13, the following section shall be substituted, namely:—
“13. Appeals .—(I) An appeal from every original order under this Act, shall lie before the Appellate Assistant Commissioner or Deputy Commissioner (Appeals) as the case may be;
(2) No appeal shall be entertained by the Appellate Assistant Commissioner or the Deputy Commissioner (Appeals) unless it is filed within thirty days from the date of receipt of the order appealed against by the assessee accompanied by a fee of rupees three hundred and unless the entire amount of tax and penalty, if any, has been remitted by the assessee in the Government treasury or in any bank notified by the Government in this behalf.
(3) Every authority referred to in sub-section (.1) shall, subject to such rules, as may be made in this behalf, have the following powers, namely:—
(a) in an appeal against an order, to confirm, reduce, enhance or annul assessment, or set aside the assessment and refer the case back to the assessing authority for making a fresh assessment in accordance with the direction given by it or him; and,
(b) in any other case, to pass such order in the appeal as may be deemed just and proper”;
(4)in section 14, in clause (b) or sub-section (2), the words “or the Deputy Commissioner of Sales Tax” shall be omitted.;
(5)for section 14A, the following section shall be substituted,namely:-
“I4A. Appeal to Appellate Tribunal.-(1)Any person aggrieved by an order passed under section 13 may, within a period of sixty days from the date of receipt of theorder by him, appeal against such order to the Appellate, tribunal, in such manner as may be prescribed:
Provided that Appellate Tribunal may admit an appeal presented after the expiration of the said period if it is satisfied that the appellant has sufficient cause for not presenting the appeal within the said period.
(2) Every appeal shall be in the prescribed form and shall be verified in such manner, as may be prescribed, and shall be accompanied by a fee of rupees seven hundred.
(3) In disposing of an appeal, the Appellate Tribunal may, after giving the parties a reasonable opportunity of being heard, either in person or by a representative,-
(a) in the case of an order of assessment or penalty,—
(i) confirm, reduce. enhance or annul the assessment or penalty
(ii) set aside the assessment and direct the assessing authority to make a fresh assessment after such enquiry as may be directed; or
(iii) pass such other orders as it may think fit; or
(b) in the case of any other order, confirm, cancel or vary such order:
Provided that if the appeal involves a question of law on which the Appellate Tribunal has previously given its decision in another appeal and the matter is pending for decision before High Court or the Supreme Court as the case may be, die Appellate Tribunal may defer the hearing of the appeal before it,till the matter is finally disposed of by the High Court or the Supreme Court as the case may be .
(4) Every order passed by-the Appellate Tribunal under sub-section(3) shall be communicated in the manner prescribed, to the appellant, respondent, the authority from whose order the appeal was preferred, the Deputy Commissioner concerned and to the Commissioner of Commercial Taxes.”;
(6) after section 14A, the following section shall be inserted, namely :—
“14AA. Notwithstanding anything contained in sections 13 and 14A of this Act, any appeal or revision pending before any authority under this Act as on 31st day of March, 2004; shall be finally disposed of by such authority on or before the 31st day of December, 2004”
(7) in section 14B,—
(i) in clause (a), for the words “one hundred rupee” the words ”one hunderd and fifty rupees” shall be substituted;
(ii) for clause (b) following clause shall be substituted, namely:—
“(b) Before the Appellate Tribunal—One hundred and fifty rupees”;
(8) in the Schedule, after serial number 43 and the entries against it the following serial numbers and entries shall be added, namely:-
“44.Photographic processing units of all kinds, its parts and accessories
45.Optical fibre cables
46.Mobile phone
47.Pollution testing equipment for motor vehicles
48.White cement
49.Lift, Elevators and Escalators operated by electrical, hydrolic and
other mechanical power
50.Fresh Milk including pasteurised, Tonned or re-constituted milk
51.Currency counting machine
52.Steam Boilers
53.V-SAT Antenna, Dish antenna and signal transmission equipment
54.Cables for telecommunication
55.Doors and Windows other than those made of iron and steel
56.Doors and Windows made of iron and steel
57.Transmission towers including those in dismantled form
