December 1, 2014
Summons to produce document or other thing
- Whenever any Court or any officer in charge of a police station considers that the production of any document or other thing is necessary or desirable for the purposes of any investigation, inquiry, trial or other proceeding under this Code by or before such Court or officer, such Court may issue a summons, or such officer a written order, to the person in whose possession or power such document or thing is believed to be, requiring him to attend and produce it, or to produce it, at the time and place stated in the summons or order.
- Any person required under this section merely to produce a document or other thing shall be deemed to have complied with the requisition if he causes such document or thing to be produced instead of attending personally to produce the same.
- Nothing in this section shall be deemed-
- to affect, sections 123 and 124 of the Indian Evidence Act, 1872(1 of 1872), or the Bankers, Books Evidence Act, 1891 (13 of 1891), or
- to apply to a letter, postcard, telegram or other document or any parcel or thing in the custody of the postal or telegraph authority.
December 1, 2014
Husband or relative of husband of a woman subjecting her to cruelty
Whoever, being the husband or the relative of the husband of a woman, subjects such woman to cruelty shall be punished with imprisonment for a term which may extend to three years and shall also be liable to fine.
Explanations
- For the purposes of this section, “cruelty” means:
- any willful conduct which is of such a nature as is likely to drive the woman to commit suicide or to cause grave injury or danger to life, limb or health (whether mental or physical) of the woman; or
- harassment of the woman where such harassment is with a view to coercing her or any person related to her to meet any unlawful demand for any property or valuable security or is on account of failure by her or any person related to her to meet such demand.
December 1, 2014
Power to examine the accused
- In every inquiry or trial, for the purpose of enabling the accused personally to explain any circumstances appearing in the evidence against him, the court-
- may at any stage, without previously warning the accused put such questions to him as the Court considers necessary;
- shall after the witnesses for the prosecution have been examined and before he is called on for his defence question him generally on the case:Provided that in a summons-case where the Court has dispensed with the personal attendance of the accused, it may also dispense with his examination under clause (b).
- No oath shall be administered to the accused when he is examined under Sub-Section (1).
- The accused shall not render himself liable to punishment by refusing to answer such question, or by giving false answers to them.
- The answers given by the accused may be taken into consideration in such inquiry or trial, and put in evidence for or against him in any other inquiry into, or trial for, any other offence which such answers may tend to show he had committed.
- The Court may take help of Prosecutor and Defence Counsel in preparing relevant questions which are to be put to the accused and the Court may permit filing of written statement by the accused as sufficient compliance of this section.
December 1, 2014
Unnatural offences
Whoever voluntarily has carnal intercourse against the order of nature with any man, woman or animal, shall be punished with imprisonment for life, or with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.
Explanations
- Penetration is sufficient to constitute the carnal intercourse necessary for the offence described in this section.
December 1, 2014
Cheating and dishonestly inducing delivery of property
Whoever cheats and thereby dishonestly induces the person deceived to deliver any property to any person, or to make, alter or destroy the whole or any part of a valuable security, or anything which is signed or sealed, and which is capable of being converted into a valuable security, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.
November 30, 2014
Section 1. Short title, extent and commencement.
(1) This Act may be called the Delhi Sales Tax Act, 1975.
(2) It extends to the whole of the National Capital Territory of Delhi.
(3) It shall come into force on 3[such date] as the Administrator may, by notification in the Official Gazette, appoint.
Section 2. Definitions:
In this Act, unless the context otherwise requires:-
(a) “Lieutenant. Governor” means Administrator of National Capital Territory of Delhi as appointed by the President under Article 239 of the Constitution.
(b) “Appellate Tribunal” means the Appellate Tribunalconstituted under section 13;
(c) “business” includes:-
(i) any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture, whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make gain or profit and whether or not any gain or profit accrues from such trade, commerce, manufacture, adventure or concern, and
(ii) any transaction in connection with, or incidental ancillary to, such trade, commerce, manufacture, adventure or concern.
(d) “Commissioner” means the the Commissioner of Sales Tax appointed under sub-section (1) of section 9.
(e) ” Dealer” means any person who carries on business of selling goods in Delhi and it includes:-
(i) the Central Government or the State Government carrying on such business,
(ii) an incorporated society (including a co-operative society); Club or Association which sells or supplies goods whether or not in the course of
business to its members for cash or for deffered payment or for commission, remuneration or other valuable consideration;
(iii) a manager, factor, broker, commission agent or any del credere or any mercantile agent,by whatever named called, and whether of the same
description as herein before mentioned or not, who sells goods belonging to any principal whether disclosed or not , and
(iv) an auctioner who sells or auctions goods belonging to any principal whether disclosed or not , and whether the offer of the intending purchaser is accepted by him or by the principal or a nominee of the principal;
(f) “Delhi” means the 5[National Capital Territory] of Delhi;
(g) “Goods” includes all materials, articles, commodities and all other kinds of movable property, but does not include newspaper, claim stocks, shares, securities or money.
(h) “Manufacture”, with its grammatical variations and cognate expressions, means producing, making, extracting, altering, ornamenting, finishing or otherwise processing, treating or adapting any goods, but does not include any such process or mode of manufacture as prescribed.
(i) “Official Gazette” means the Delhi Gazette.
(j) “prescribed” means prescribed by rules;
(k) “registered ” means a dealer registered under this Act;
(l) “Sale” means any transfer of property in goods by one person to another for cash or for deferred payment or for any other valuable consideration and includes-
(i) A transfer of goods on hire purchase or other system of payment by instalments, but does not include a mortgage or hypothecation of or a
charge or pledge on goods;
(ii) Supply of goods by a society (including a Co-Operative Society), club, firm or any association to its members for cash or deferred payment, or for commission, remuneration or other valuable consideration, whether or not in course of business; and
(iii) Transfer of goods by an auctioner referred to in sub-clause (iv) of clause (e);
(m) Sale Price means the amount payable to the dealer as consideration for the sale of any goods including any sum charged for anything done by
the dealer in respect of the goods at the time of or before the delivery of the goods other than the cost of freight or delivery or the cost of installation, but less the sum which is allowed as cash discount on that good.
(n)”tax” means the tax payable under this Act;
(o) “turnover ” means the aggregate of the amount of sale price receivable, or if adelear so elects, actually received by a dealer in respect of any sale of property in goods, made during any prescribed period in any year after deducting the amount of sale price, if any, refunded by the delear to a purchaser in respect of any goods purchased and returned by the purchaser within the prescribed period;
PROVIDED that an election as aforesaid once made shall not be altered except with the permission of the Commissioner and on such terms and conditions, as he may think fit to impose;
(p)”year” means the financial year
CHAPTER-II. Incidence and Levy of Tax
Section 3. Incidence of tax.
(1) Every dealer whose turnover of sales during the year immediately preceding the commencement of this Act exceeds the taxable quantum and every dealer who at the commencement of Act,is registered or liable to pay tax under Central Sales Tax Act,1956 (74 of 1956) shall be liable to pay tax under this Act on all sales effected by him on or after such commencement
(2) Every dealer to whom sub-section (1) does not apply, shall:
(i) with effect from the date immediately following the day on which his turnover calculated from the commencement of any year first exceeds, within such year, the taxable quantum, be liable to pay tax under this Act on all sales effected by him after that day.
(ii) if he becomes liable to pay tax under the Central Tax Act, 1956 (74 of 1956) or is registered as a dealer under the said act at any time after the commencement of of this Act, be liable to pay tax on all tax on all sales affected by him or on his behalf within Delhi on or after the date he become so liable or is registered under the said Act, whichever is earlier
(3) Every dealer who becomes liable to pay tax under this Act, shall continue to be so liable until the expiry of three consecutive years during each of which his turnover has failed to exceed the taxable quantum and such further period after the date of such expiry may be prescribed and on
the expiry of such further period his liability to pay tax shall cease:
PROVIDED that any dealer may, after the expiry of one-year following the year in which his turnover has failed to exceed the taxable quantum, apply for the cancellation of his certificate of registration, and on such cancellation, his liability to pay tax shall cease:
PROVIDED FURTHER that in respect of any goods purchased by any dealer before the date of any cancellation and remaining unsold or unutilised for the purpose for which they are purchased , he shall be liable to pay so much of tax as would have been payable had he not been registered as a dealer on the date
(4) Every dealer whose liability to pay tax under this Act has ceased under sub-section (3),shall,if his turnover calculated from the commencement of any year again exceeds the taxable quantum, on any day within such year, be liable to pay such tax with effect from the date immediately following the day on which his turnover first exceeds the taxable quantum, on all sales affected by him after that day.
(5) Any dealer whose certificate of registration has been canceled under sub-section (3) of section 20,shall:
(i) if his turnover calculated from the date of cancellation of such certificate exceeds the taxable quantum on any day within the year ; or
(ii) if his turnover calculated from the commencement of any subsequent year, exceeds the taxable quantum on any day within the year ; be liable to pay tax under this Act with effect from the date immediately following the day on which such turn over again first exceed the taxable quantum on all sales effected by him after that day of goods imported by him from outside Delhi or manufactured by him in Delhi or purchased by him without payment of tax leviable under this Act.
(6) No dealer who deals exclusively on one or more classes of goods specified in the Third Schedule shallbe liable to pay any tax under this Act.
(7) For the purposes of this Act, “taxable quantum” means,
(a) in relation to any dealer who imports for sale any goods into Delhi – Nil,
(b) in relation to any dealer who manufactures goods for sale regardless of the value of goods manufactured – [Rs. 2,00,000-00] 1,
(c) in relation to any other dealer – [4,00,000-00] 2;
PROVIDED that if the 3[Lieutenant Governor] is of opinion that having regard to the difficulty in maintaining accounts or for other sufficient cause, the taxable quantum in respect of any class of dealers falling under clause (b) or (c) should be increased, the 4[Lieutenant Governor] may, by notification in the official Gazette, fix in respect of such class of dealers such taxable quantum, not exceeding 5[5,00,000 for clause (b) and Rs. 10,00,000] for clause (c), as may be specified in the notification.
6[Explanation. – For the purpose of computation of taxable quantum under sub-section (7), the turnover of sales effected by a dealer shall be
taken into account irrespective of whether such sales are taxable under this Act or not.]
1. Increased from Rs. 1,00,000/- vide Notification No. F.101(48)/2001-Fin(A/Cs)138-146 dated 31.3.2001 w.e.f. 1.4.2001; earlier raised from Rs.30,000/- to Rs. 1,00,000/- vide Delhi Sales Tax Amendment Act 1994 w.e.f. 8.4.1994.
2. Increased from Rs. 2,50,000/- vide Notification No. F.101(48)/2001-Fin(A/Cs)138-146 dated 31.3.2001 w.e.f. 1.4.2001; earlier raised from Rs.1,00,000/- to Rs. 2,50,000/- vide Delhi Sales Tax Amendment Act 1994 w.e.f. 8.4.1994.
3. Subs. By Notification No. F.4/(120)/94 Fin.(G)/2137 to 2145 dated 2.3.1998; Delhi Act 1 of 1998, for “Union Territory” (w.e.f 2-3-1998).
4. Subs. By Notification No. F.4/(120)/94 Fin.(G)/2137 to 2145 dated 2.3.1998; Delhi Act 1 of 1998, for “Union Territory” (w.e.f 2-3-1998).
5. Subs. for the word “Rs. 2.50 lacs for clause (b) and Rs. 5.00 lacs ” by Delhi Sales Tax (Second Amendment) Act 2000, dt. 19.2.2001 w.e.f 8-4-1994.
6. Subs. by Delhi Sales Tax (Amendment) Act, 1994 w.e.f. 8-4-1994, and again by Delhi Sales Tax (Second Amendment) Act, 2000, dt. 19.2.2001 w.e.f. 8.4.1994.
CHAPTER-II. Incidence and Levy of Tax
Section 4. Rate of tax
(1) The tax payable by a dealer under this Act shall be levied –
(a) 1[ in the case of taxable turnover in respect of the goods specified in the first schedule, at the rate of twelve paise per rupee].
(b) in the case of taxable turnover inrespect of the goods specified in the second schedule, at such rate not exceeding four paise in a rupee as the 2[Lieutenant Governor] may, from time to time , by notification in the official Gazette, determine;
(C) in the case of taxable turnover in respect of any food or drink served for consumption in a hotel or restaurant or part thereof, with which a cabaret floor show or similar entertainment is provided therein, at the rate of forty paise in a rupee;
(d) 3[ (cc) in the case of taxable turnover in respect of the goods specified in the forth schedule, at the rate of twenty paise in a rupee.] (CCC) 4[***]
(i) in the case of taxable turnover of any other goods , at the rate of 5[eight paise] in a rupee;
PROVIDED that the 6[Lieutenant Governor] may 7[***] by notification in the Official Gazette, add to or omit from, or otherwise amend, the First Schedule, the Second Schedule or the Forth Schedule,either retrospectively or prospectively, and there upon the First Schedule, the Second Schedule 8[ or the case may be the Forth Schedule], shall be deemed to be amended accordingly:
PROVIDED FURTHER that no such amendment shall be made retrospectively if it would have the effect of prejudicially affecting the interest of any dealer:
PROVIDED ALSO that in respect of any goods or class of goods the 9[Lieutenant Governor] is of opinion that it is expedient in the interest of the general public so to do, he may 10[***] by notification in the Official Gazette, direct that the tax in respect of taxable turnover of such goods or class of goods shall, subject to such conditions may be specified, be levied at such modified rate not exceeding the rate applicable under this section , as may be specified in the notification.
(2) For the purposes of this Act, “taxable turnover” means that part of a dealer’s turnover during the prescribed period in any year which remains
after deducting there from :-
(i) sale of goods, the point of sale at which such goods shall be taxable is specified by the 11[Lieutenant Governor] under section 5 and in respect of which due tax is shown to the satisfaction of the commissioner to have been paid;
(ii) sale of goods declared tax-free under section 7;
(iii) sale of goods not liable to tax under section 8;
(iv) sale of goods which are proved to the satisfaction of the commissioner to have been purchased within a period of twelve months prior to the date of registration of the dealer and subjected to tax under the Bengal Finance (Sales Tax) Act,1941 (Bengal Act VI of 1941),as it wasthen in force, or under this Act;
(v) sale of registered dealer –
(A) of goods of the class or classes specified in the certificate of registration of such dealer,as being intended for use by him as raw materials in manufacture in Delhi of any goods, other than specified in the Third Schedule or news papers, –
(1) for sale by him inside Delhi; or
(2) for sale by him in the course of inter-State trade or commerce being a sale occasioning, or effected by transfer of documents of title of such goods during the movement of such goods from Delhi; or
(3) for sale by him in the course of export outside India being a sale occasioning the movements of such goods from Delhi, or a sale affected
by transfer of documents of title to such goods effected during the movement of such goods from Delhi, to a place outside India and after the goods have crossed the customs frontiers of India; or
(B) of goods of the class or classes specified in the certificate of the registration of such dealer as being intend for resale by him in Delhi, or for sale by him in the course of inter-state trade or commerce or in the course of export outside India in the manner specified in sub-item (2) or sub-item (3) (A), as the case may be; and
(C) of containers or other materials, used for the packing of goods, of the class or classes specified in the certificate of registration of such dealer, other than goods specified in the Third Schedule, intended for sale or resale;
(vi) such other sales as are exempt from payment of tax under section 66 or as may be prescribed :
PROVIDED that no deduction in respect of any sale referred to in subclause (iv) shall be allowed unless the goods, in respect of which deduction is claimed, are proved to have been sold by the dealer within a period of twelve months from the date of his registration and the claim for such deduction is included in the return required to be furnished by the dealer in respect of the said sale:
12[PROVIDED FURTHER that no deduction in respect of any sale referred to in sub-clause(v) shall be allowed unless a true declaration duly filled and signed by the registered dealer to whom the goods are sold and containing the prescribed particulars in the prescribed form obtainable from the prescribed authority in the manner and subject to such condition as may be prescribed is furnished in the prescribed manner and within the prescribed time, by the dealer who sells the goods:]
PROVIDED ALSO that where any goods are purchased by a registered dealer for any of the purposes mentioned in sub-clause (v), but are not so utilised by him, the price of the goods so purchased shall shall be allowed to be deducted from the turnover of the selling dealer but shall be included in the taxable turnover of the purchasing dealer; and
(b) the tax collected by the dealer under this Act as such and shown separately in cash memoranda or bills, as the case may be.
1. Rate of tax on goods under the First Schedule have been varied by Notification No. F.4(44)/90-Fin.(G) (ii) dated 8th February, 1993, Notification No. 4(11)/94-Fin.(G)(I), dated 19th May 194, Notification No. F.4(11)/94-Fin.(G), dated 2nd June 194, Notification No. F.4(1)/(99)-Fin. (G)(ii). dated March 31, 1999, etc.
2. Subs. by Notification No. F.4/(120)/94 Fin.(G)/2137 to 2145 dated 2.3.1998; Delhi Act 1 of 198, for “Union Territory” (w.e.f. 2-3-1998).
3. Subs. by Delhi Sales Tax (Amendment) Avt, 2000 w.e.f. 6-1-2000 for “lottery tickets at the rate of twenty paise in the rupee” [Inserted by Delhi Sales Tax (Second Amendment) Act, 1994 w.e.f. 3-12-1994].
4. Omitted by Delhi Sales Tax (Amendment) Act, 2000, w.e.f. 6-1-2000 earlied read as “in the case of taxable turnover in respect of liquor (foreign and Indian made foreign liquor) at the rate of fifteen paise in the rupee”.
5. Subs. by No. F.4(52)/99-Fin(G)(viii)/1564 dt. 15.1.2000 w.e.f. 16-1-2000.
6. Subs. for “Central Government” by Delhi Act 1 of 1998, w.e.f. 2.3.1998.
7. Words “with the previous approval of the Central Government and” deleted by Delhi Act 1 of 1998 w.e.f. 2.3.1998.
8. Inserted by The Delhi Sales Tax (Amendment) Act, 2000, w.e.f. 6-1-2000.
9. Subs for “Administrator” by Delhi Act 1 of 1998, w.e.f. 2.3.1998.
10. Words “with the previous approval of the Central Government and” deleted by Delhi Act 1 od 1998, (w.e.f. 2.3.1998).
11. Subs. for “Administrator” by Delhi Act 1 of 1998, w.e.f. 2.3.1998.
12. Subs. by Delhi Sales Tax (Second Amendment) Act, 2000, dt. 19.2.2001 w.e.f. 19.2.2001 for “PROVIDED FURTHER that no deduction in respect of any sale referred to in sub-clause (iv)shall be allowed unless a true declaration duly filled and signed by the registered dealer to whom the goods are sold containing the prescribed particulars in the particulars in the prescribed form obtainable from obtainable from the prescribed authority is furnished in the prescribed manner and within the prescribed time, by the dealer who sells the goods.”
CHAPTER-II. Incidence and Levy of Tax
Section 5. Power of Administrator to prescribe points at which goods may be taxed
Notwithstanding anything contained in the Act, the 1[Lieutenant Governor] may, be notification in the Official Gazette and subject to such conditions, if any, as may be specified therein, specify the point of sale at which any goods or class of goods may be taxed, and on the issue of such notification, the points of sale in relation to any such goods or class of goods other than the point of sale so notified, shall be exempt from payment of tax under this Act:
2[PROVIDED that no such exemption shall be allowed unless a true declaration duly filled and signed by the registered dealer by whom the goods are sold and containing the prescribed particulars in the prescribed form obtainable form the prescribed authority in the manner and subject to such conditions as maybe prescribed is furnished in the prescribed manner and within the prescribed time, by dealer who purchases the goods.]
PROVIDED FURTHER that the Administrator may, if he is of opinion that it is necessary in public interest so to do, by notification in the Official Gazette, exempt, subject to such restrictions and conditions as may be specified therein, any dealer or class of dealers from furnishing a declaration under the first provison
1. Subs. for “Administrator” by Delhi Act 1 of 1998, w.e.f. 2.3.1998.
2. Subs. by Delhi Sales Tax (Second Amendment) Act, 2000, dt. 19.2.2001 w.e.f. 19.2.2001 for “PROVIDED that no such exemption shall be allowed unless a true declaration duly filled and signed by the registered dealer by whom the goods are sold and containing the prescribed particulars in the prescribed form the prescribed authority is furnished in the prescribed manner and within the prescribed time, by who purchases the goods.”
CHAPTER-II, Incidence and Levy of Tax
Section 6. Burden of proof
The burden of proving that in respect of any sale effected by a dealer he is not liable to pay tax under this Act shall lie on him.
CHAPTER-II, Incidence and Levy of Tax
Section 7. Tax-free goods
(1) No tax shall be payable under this Act on the sale of goods specified in the Third Schedule subject to the conditions and exceptions, if any, set out therein.
(2) The 1[Lieutenant Governor may] by notification in the Official Gazette, add to, or omit from, or otherwise amend, the Third Schedule either retrospectively or prospectively, and thereupon the Third Schedule shall be deemed to be amended accordingly :
PROVIDED that no such amendment shall be made retrospectively if it would have the effect of prejudicially affecting the interests of any dealer.
1. Subs. for “Administrator may with the previous approval of the Central Government and” by Delhi Act 1 of 1998, w.e.f. 2.3.1998
CHAPTER II- Incidence and Levy of Tax
Section 8. Certain sales and purchases not liable to tax
Nothing in this Act or the rules made thereunder shall be deemed to impose, or authorise the imposition of a tax on any sale or purchase of any goods when such sale or purchase takes place-
(i) In the course of inter-state trade or commerce, or
(ii) Outside Delhi, or
(iii) In the course of the import of the goods into or export of the goods out of the territory of India
Explanation- Section 3,4 and 5 of the Central Sales Tax Act, 1956 (74 of 1956) shall apply for determining whether or not a particular sale or purchase takes place in the manner indicated in clause (i), clause (ii) or clause (iii) of this section.
CHAPTER III- Sales Tax Authorities and Appellate Tribunal
Section 9. Sales tax authority
(1) For carrying out the purposes of this Act, the 1[ Lieutenant Governor] shall appoint a person to be the Commissioner of Sales Tax.
(2) To assist the Commissioner in execution of his functions under this Act, the 2[ Lieutenant Governor] may appoint as many Additional Commissioners of Sales Tax, Sales Tax Officers and such other persons with such designations as the Administrator thinks necessary.
(3) The Commissioners shall have jurisdiction over the whole of Delhi and the other persons appointed under sub-section (2) shall have jurisdiction over such areas as Commissioner may specify.
(4) The Commissioner and other persons appointed under sub-section (2) shall exercise the powers may be conferred, and perform the duties as required by or under this Act.
1. Subs. for “Administrator” by Delhi Act 1 of 1998, w.e.f. 2.3.1998.
2. Subs. for “Administrator” by Delhi Act 1 of 1998, w.e.f. 2.3.1998
CHAPTER III- Sales Tax Authorities and Appellate Tribunal
Section 10. Delegation of Commissioner’s powers
Subject to such restrictions and conditions as may be prescribed, the Commissioner may by order in writing delegate any of his powers under this Act except those under sub-section (3) of section 9 and sub section (1) of section 52 to any person appointed under sub-section (2) of section 9.
PROVIDED that the powers of the Commissioner under clauses (i) to (vi) (both inclusive) of sub-section (3) of section 41 shall not be delegated to any person lower in rank than that of a Sales Tax Officer, and those under sub-section (1) of section 49 shall not be delegated to any person other than an Additional Commissioner of Sales Tax appointed under sub-section (2) of section 9.
CHAPTER III- Sales Tax Authorities and Appellate Tribunal
Section 11. Power to transfer Proceedings
(1) The Commissioner may, by order in writing, transfer any proceedings or class of proceedings under any provision of this Act from any person appointed under sub-section (2) of section 9 to any other person so appointed whether or not such other person has jurisdiction in respect of the area to which such proceedings or class of Proceeding relate, and the Commissioner may likewise transfer any such proceedings (including a proceeding already transferred under this section) from any such person to himself.
(2) The person to whom any proceeding is transferred under sub-section (1) shall proceed to dispose it of as if it had been initiated by himself.
(3) The transfer of a proceeding shall not render necessary the reissue of any notice already issued before such transfer and the person to whom the proceeding is transferred may, in his discretion, continue, continue it from the stage at which it was left by the person from whom it was transferred.
Explanation- For the purposes of this section, “proceedings” in relation to any person whose name is specified in any order issued thereunder, means all proceedings under this Act in respect of any year which may be pending on the date of such order or which may have been completed on or before such date, and includes also such proceedings which may be commenced after the date of such order in respect of any year.
CHAPTER III- Sales Tax Authorities and Appellate Tribunal
Section 12. Disputes regarding territorial jurisdiction
(1) No person shall be entitled to call in question the jurisdiction of any sales tax authority appointed under section 9, not being an appellate authority, after the expiry of ninety day from the date of receipt by that person of any notice under this Act issued by such sales tax authority.
(2) Any objection as to the jurisdiction of any such sales tax authority may be raised within the period aforesaid by submitting a memorandum to the authority concerned who shall refer the question to the Commissioner and the Commissioner shall after giving the person raising the objection a reasonable opportunity of being heard, make an order determining the question and his decision in this behalf shall be final.
CHAPTER III- Sales Tax Authorities and Appellate Tribunal
Section 13. Appellate Tribunal
(1) The [Lieutenant Governor] shall, as soon as may be after the commencement of this Act, constitute an Appellate Tribunal Tribunal consisting of one or more members, as it thinks fit, to exercise the powers and discharge the functions conferred on the Appellate Tribunal by or under this Act:
PROVIDED that where the Appellate Tribunal consists of one member that member shall be a person who has held a civil judicial post for at least ten years or who has been a member of the [Indian Legal Service] (not below Grade III) for at least three years or who has been in practice as an advocate for at least ten years, and where the Appellate Tribunal consists of more than one member, one such member shall be a person be a person qualified as aforesaid.
(2) Where the number of members of the Appellate Tribunal is more than one, the 3[Lieutenant Governor] shall appoint one of those members to be the Chairman of the Appellate Tribunal.
(3) Subject to the provisions of sub-section (1), the qualifications and other conditions of service of the member or members constituting the Appellate Tribunal and the period for which such member or members shall hold office, shall be such as may be determined by the 4[Lieutenant Governor]
(4) Any vacancy in the membership of the Appellate Tribunal shall be filled up by the 5[Lieutenant Governor] as soon as practicable.
(5) Where the number of members of the Appellate Tribunal is more than one and if the members differ in opinion on any point, the point shall be decided according to the opinion of the majority, if there is a majority, if there is a majority, but if the members are equally divided, the decision of the Chairman of the Appellate Tribunal thereon shall be final.
(6) Subject to the previous sanction of the 6[Lieutenant Governor], the Appellate Tribunal shall, for the purpose of regulating its procedure and disposal of its business, make regulations consistent with the provisions of this Act and the rules made thereunder.
(7) The regulations made under sub-section (6) shall be published in the Official Gazette.
(8) The Appellate Tribunal shall, for the purpose of discharging its functions, have all the powers which are vested in the Commissioner under section 42 and any proceeding before the Appellate Tribunal shall be deemed to be a judicial proceeding within the meaning of section 193 and 228, and for the purpose of section 196 of the Indian Penal Code, 1860 (45 of 1860) and the Appellate Tribunal shall be deemed to be a civil court for all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973. (2 of 1974)
3. Subs. for “Central Government” by Delhi Act 1 of 1998, w.e.f. 2.3.1998.
4. Subs. for “Central Legal Service” by Delhi Act 1 of 1998, w.e.f. 2.3.1998.
5. Subs. for “Central Government” by Delhi Act 1 of 1998, w.e.f. 2.3.1998.
6. Subs. for “Central Government”by Delhi Act 1 of 1998, w.e.f. 2.3.1998.
7. Sub. for “Central Government” by Delhi Act 1 of 1998, w.e.f. 2.3.1998.
8. Subs. for “Central Government” by Delhi Act 1 of 1998, w.e.f. 2.3.1998.
CHAPTER IV- Registration, Amendment and Cancellation
Section 14. Registration
(1) No dealer shall, while being liable to pay tax under section 3, carry on business as a dealer unless he has been registered and possesses a certificate of registration.
(2) Every dealer required by sub-section (1) to be registered shall make an application for registration within such time, in such manner and to such authority, as may be prescribed.
(3) If the said authority is satisfied that the application is in order, it shall, in accordance with such rules as may be prescribed, register the applicant within the prescribed period and grant him a certificate of registration in the prescribed form which shall specify the goods or class of goods for the purposes of sub-clause (v) of clause (a) of sub-section 4:
PROVIDED that if the said authority is of opinion that the application is not in order, it shall, by an order passed within the said period and for reasons to be recorded in writing, reject the application;
PROVIDED FURTHER that no goods or class of goods in respect of which the 1[ point of sale] has been specified by the 2[Lieutenant Governor] under section 5 shall be specified in a certificate of registration, and where a notification is issued under that section subsequent to the grant of any certificate of registration in respect of any goods or class of goods specified in a certificate, the said certificate shall be deemed to have been amended to omit the references to such goods or class of goods.
(4) For the removal of doubts, it is hereby declared that the goods or class of goods to be specified in a certificate of registration granted under sub-section (3) of this section or sub-section (2) of section16 shall not include goods referred to in sub-clause (i) or sub clause (a) of sub-section(2) of section 4.
1. Subs. by Act 38 of 1978, for “point of sale.”
2. Subs. for “Administrator” by Delhi Act 1 of 1998, w.e.f. 2.3.1998
Section 15. Voluntary registration
(1) Any dealer, other than a dealer who deals exclusively in one or more classes of goods specified in the Third Schedule whose turnover during a year exceeds twenty-five thousand rupees may, notwithstanding that he may not be liable to pay tax under section 3, apply for registration under this section.
(2) The provision of sub-section (2), (3) and (4) of section 14 shall, as far as may be, apply in relation to registration of dealers under this section.
(3) Every dealer who has been registered under this section shall, for so long as his registration remains in force, be liable to pay tax under this Act.
(4) The registration of a dealer under this section shall be in force for a period of not less than three complete years and shall remain in force thereafter unless cancelled under the provisions of this Act.
CHAPTER IV- Registration, Amendment and Cancellation
Section 16. Provisional Registration
(1) Any person who intends to establish a business in Delhi for purpose of manufacturing goods of a value exceeding thirty thousand rupees per year, may, not-with standing that he is not required to be registered under section 14, apply for provisional registration in such manner and to such authority as may be prescribed.
(2) If the said authority, after making such inquiry as it may consider necessary, is satisfied as to the bona fide intention of the person making the application, it may, subject to such restrictions and conditions it may impose, grant a provisional certificate of registration on such person furnishing such security as it may consider necessary and shall specify in such certificate the goods or class of goods for the purposes of sub-clause (v) of clause (a) of sub-section (2) of section 4.
(3) Every person who has been granted a provisional certificate of registration under this section shall, for so long as such certificate is in force, be liable to pay tax under this Act.
(4) A provisional certificate of registration granted under this section shall be in force for such period as may be specified therein.
(5) The authority prescribed under sub-section (1) may, on application made in this behalf in the prescribed manner and subject to such restrictions and conditions as it may impose, extend, from time to time, the period specified in the provisional certificate of registration.
(6) The provisions of section 18 shall, so far as may be, apply in relation to security required to be furnished under sub-section (2) of this section.
(7) If a person, who has been granted a provisional certificate of registration under this section, fails without sufficient cause to establish a business within the period specified in such certificate or fails to comply with any of the restrictions or conditions subject to which such certificate was granted, he shall be liable to pay a penalty equal to one and a half times the amount of tax which would have been payable had he not been so registered under this section.
Section 17. Special registration
(1) No dealer shall, while being liable to pay tax under sub-section (5) of section 3, carry on business as a dealer unless he obtained a special certificate of registration.
(2) Every dealer required to be registered under sub-section (1) shall make an application for registration within such time, in such manner and to such authority, as may be prescribed.
(3) If the said authority is satisfied that the application is in order, it shall, in accordance with such rules as may be prescribed, grant a special certificate of registration to the applicant in the prescribed form:
PROVIDED that the said authority shall not specify in any such certificate the goods or class of goods for the purposes of sub-clause (v) of clause (a) of sub-section (2) of section 4.
Section 18. Security from certain class of dealers
(1) The Commissioner may, if it appears to him to be necessary so to do for the proper realisation of the Tax, composition money or other dues payable under this Act or for the proper custody and use of the forms referred to in the second proviso to clause (a) of sub-section (2) of section 4, or the first proviso to section 5, as the case may be, impose, for reasons to be recorded in writing as a condition of the grant of the certificate of registration under section 14, section 15 or section 17 to a dealer of the continuance in effect of such certificate granted to any dealer, a requirement that the dealer shall furnish in the prescribed manner and within such time as may be specified in the order of such security or, as the case may be, such additional security as may be so specified, for all or any of the aforesaid purposes
(2) No dealer shall be required to furnish any security or additional security under sub-section (1) unless he has been given an opportunity of being heard and the amount of security or additional security that may be required to be furnished, shall-
(a) in the case of a dealer liable to pay tax under sub-section (2) of section 3 who has applied for the grant of a certificate of registration under section 14, be such amount as the Commissioner may, having regard to the nature and size of the business of such dealer, determine for the payment of the tax for which the dealer may be or become liable under this Act:
(b) in a case where security is to be given for the proper custody and use of the forms referred to in sub-section (1), be the amount of tax determined by the Commissioner which is likely to be saved by dealer by the issue of such forms:
(c) in the case of a dealer liable to pay tax under sub-section (2) of section 3 who has applied for the grant of a certificate of registration under section 14, be such amount as the Commissioner may, having regard to the nature and size of the business of such dealer, determine for the payment of the tax for which the dealer may be or become liable under this Act:
(3) Where the security or additional security furnished by a dealer is in the form of a security bond and the surety dies or becomes insolvent, the dealer shall, within thirty days of the occurrence of such event, inform the authority granting the certificate of registation and shall, within ninety days of such occurrence, execute a fresh surety bond.
(4) The Commissioner may be order, for good and sufficient cause, and after giving the dealer an opportunity of being heard, forfeit the whole or any part of the security furnished by a dealer.
(5) Where, by reason of an order under sub-section (4) the security furnished by any dealer is forfeited in whole or is rendered insufficient, he shall furnish a fresh security of the requisite amount or, as the case may be, shall make up the deficiency in such manner and within such period as may be specified in the order.
CHAPTER IV- Registration, Amendment and Cancellation
Section 19.Amendment of certificate of registration
(1)The Commissioner may, after considering any information furnished under this Act or otherwise received and after making such inquiry as he may deem fit, amend from time to time any certificate of registration.
(2) An amendment of the certificate of registration made under sub-section (1) shall take effect:-
(a) in the case of a change in the name, ownership or place of business, or opening of a new place of business, from the date of the contingency which necessitates the amendment whether or not information in that behalf is furnished within the time prescribed under section 40;
(b) in the case of any addition or modification in the description of any goods or class of goods in the certificate of registration, from the date of the contingency if information in that behalf is furnished within the time prescribed under section 40 and from the date of receipt of request for such addition or modification by the Commissioner, in any other case:
(c) in the case of deletion of any goods or class of goods, from the date of order of deletion:
PROVIDED that the Commissioner shall, before amending on his own motion a certificate of registration, give the dealer affected by such amendment a reasonable opportunity of being heard:
PROVIDED that where in consequence of a change in the ownership of a business the liability to pay tax of a dealer ceases, the amendment of the certificate of registration shall take effect from the date on which information in respect of such change is furnished under section 40.
(3) Any amendment of a certificate of registration under this section shall be without prejudice to any liability for tax or penalty imposable, or for any prosecution for an offence under this Act.
(4) For the removal of doubts, it is hereby declared that where a registered dealer-
(a) effects a change in the name of his business: or
(b) is a firm and there is a change in the constitution of the firm without dissolution thereof: of
(c) is a trustee of a trust and there is a change in the trustees thereof:of
(d) is a guardian of a ward and there is a change in the guardian: of (e) is a Hindu undivided family and the business of such family is converted into a partnership business with all or any of the copartners as partners thereof,
then, merely by reason of any of the circumstances aforesaid, it shall not be necessary for the dealer, or 1[the firm which changed the constitution] or the new trustees, or the new guardian, or as the case may be, the partners of such partnership business, to apply for a fresh certificate of registration and on information being furnished in the manner required by section 40 the certificate of registration shall be amended.
1 Subs. by Act 38 of 1978, for “the firm who charged the constitution.”
Section 20. Cancellation of certificate of registration
(1) Where-
(a) any business in respect of which a certificate of registration has been granted to a dealer under this Act, is discontinue ; or
(b) in the case of transfer of business by a dealer, the transferee already holds a certificate of registration under this Act; or
(c) a dealer has ceased to be liable to pay tax under this Act, the Commissioner may cancel the certificate of registration of such dealer or the transferor, as the case may be, from such date as may be specified by him :
PROVIDED that in a case referred to in clause (a) or clause (b), the certificate of registration shall be deemed to be inoperative with effect from the date of discontinuance or transfer of the business, as the case may be, and in a case referred to clause (c) from the date on which the dealer’s liability to pay tax has ceased, notwithstanding the fact that the order of cancellation is passed or that the particulars of the dealer regarding cancellation are published, as required by section 65, in the Official Gazette, after the aforesaid date:
PROVIDED FURTHER that where a dealer has failed to furnish information regarding discontinuance of his business as required by section 40, the Commissioner shall before canceling the certificate from any specified date, publish in the Official Gazette, a notice of his intention so to do for the information of the dealer and shall hear objections, if any, of the dealer before passing the order.
(2) A dealer registered under section 15 may, subject to the provisions of sub-section (4) of that section, apply in the prescribed manner not later than six months before the end of a year to the Commissioner for cancellation of his certificate of registration and the Commissioner shall, unless the dealer is liable to pay tax under section 3, cancel the certificate of registration accordingly, and such cancellation shall take effect from the end of the year.
(3) Notwithstanding anything contained in sub-section (1) and (2), the Commissioner may at any time for reasons to be recorded in writing and after giving the dealer an opportunity of being heard, cancel the certificate of registration held by such dealer from such date as the Commissioner may specify in this behalf-
(a) if the dealer has failed to pay tax (including any penalty) due from him under any provisions of this Act; or
(b) if the dealer holds or accepts or furnishes or causes to be furnished a declaration for the purposes of sub-clause (v) of clause (a) of sub-section (2) of section 4 or section5 which he knows or has reason to be false; or
(c) if the dealer who has been required to furnish the security under the provisions of section 18 has failed to furnish the security under the provisions of section 18 has failed to furnish such security; or
(d) if the dealer contravenes or has contravened any of the provisions of this Act; or
(e) if the dealer has been convicted of an offence under this Act or under the Bengal Finance (Sales Tax) Act 1941 (Bengal Act, VI of 1941), as then in force in Delhi; or
(f) if there is any other reason which in the opinion of the Commissioner warrants such cancellation
(4) (a) If an order of cancellation passed under sub-section (3) is set aside as a result of an appeal or other proceeding under this Act, the certificate of registration of the dealer shall be restored and he shall be liable to pay tax as if his certificate had not been canceled.
(b) If any dealer whose certificate of registration has been restored under clause (a) satisfies the Commissioner that tax has been paid by such dealer on sale of goods made to him during the period his certificate of registration was inoperative which, but for the cancellation of such certificate he would not have paid, then the amount of such tax shall be adjusted or refunded in such manner as may be prescribed.
(5) Every dealer who applies for cancellation of his registration shall surrender with his application the certificate of registration granted to him and every dealer whose registration is canceled otherwise than on the basis of his application shall surrender the certificate of registration within seven days of the date of communication to him of the order of cancellation.
(6) If a dealer fails to surrender his certificate of registration as provided in sub-section (5), the Commissioner may, by an order in writing and after giving the dealer an opportunity of being heard, direct that the dealer shall pay, by way of penalty, a sum not exceeding twenty-five rupees for every day of default.
(7) The cancellation of a certificate of registration shall not affect the liability of any person to pay tax due for any period prior to the date of such cancellation, but remains unpaid or is assessed thereafter notwithstanding that he is not liable to pay tax under this Act.
(8) Where by any order passed under this Act it is found that any person registered as a dealer ought not to have been so registered, then notwithstanding anything contained in this Act, such person shall be liable to pay tax for the period commencing with the date of his registration and ending with the date of such order, as if he were a dealer.
Section 21. Periodical payment of tax and filing or returns
(1) Tax payable under this Act shall be paid in the manner hereinafter provided at such intervals as may be prescribed.
(2) Every registered dealer and every other dealer who may be required so to do by the Commissioner by notice served in the prescribed manner shall furnish such returns of turnover by such dates and to such authority as may be prescribed.
(3)Every registered dealer required to furnish returns under sub-section (2) shall pay into Government Treasury or the Reserve Bank of India or in such other manner as may be prescribed, the full amount of tax due from him under this Act according to such return and shall where such payment is made into a Government Treasury or the Reserve Bank Of India furnish alongwith the return a receipt from such Treasury of Bank showing the payment of such amount.
(4)If any registered dealer discovers any mistake or error in any return furnished by him, he may at any time, before the expiry of three months next following the last date prescribed for furnishing of the return, furnish a revised return, and if the revised return shows a higher amount of tax to be due that was shown in the original return, it shallbe accompanied by a receipt showing payment in the manner provided in sub-section (3) of the excess amount.
(a)in the case of an individual, by the individual himself, and where the individual is absent from India by the individual concerned or by some person duly authorised by him in this behalf and where the individual is mentally incapacitated from attending to his affairs, by his guardian or by any other person competent to act on his behalf;
(b)in the case of a Hindu undivided family, by a Karta, and where the Karta is absent from India or mentally incapacitated from attending to his affairs, by any other adult member of such family;
(c)in the case of a company or local authority, by the principal officer thereof;
(d)in the case of a firm, by any partner thereof not being a minor;
(e)in the case of any other association, by any member of the association or the principal officer thereof; and
(f)in the case of any other person, by that person or by some person competent to act on his behalf.
(6)For the purposes of sub-section (5) of this section and section 59 the expression “principal officer” shall have the meaning assigned to it under clause (35) of section 2 of the Income-tax Act, 1961(43 of 1961).
Section 22. Collection of tax only by registered dealer
(1)No person who is not a registered dealer shall collect in respect of any sale of goods by him in Delhi any amount by way of tax under this Act, and no registered dealer shall make any such collection except in accordance with this Act and the rules made thereunder.
(2) Notwithstanding anything contained in sub-section (1) a dealer who has been permitted by the Commissioner to make a lump sum payment under section 29 shall not collect any sum by way of tax on the sale of goods if made during the period to which such lump sum payment relates.
CHAPTER V- Returns, Assessment, Recovery and Refund of Tax
Section 23. Assessment
(1)The amount of tax due from a registered dealer shall be assessed separately for each year during which he is liable to pay the tax :
PROVIDED the when such dealer fails to furnish a return relating to any period of a year by the prescribed date, the Commissioner may, if he thinks fit, assess the tax due from such dealer separately for that period or any other period of such year :
PROVIDED FURTHER that the Commissioner may, subject to such conditions as may be prescribed and for reasons to be recorded in writing, assess the tax due from any dealer for a part of a year.
(2)If the Commissioner is satisfied that the returns furnished in respect of any period are correct and complete, he shall assess the amount of tax due from the dealer on the basis of such return.
(3)(a)If the Commissioner is not satisfied that the returns furnished in respect of any period are correct and complete and he thinks it necessary to require the presence of the dealer or the production of further evidence, he shall serve on such dealer in the prescribed manner a notice requiring him on a date and at a place specified therein either to attend and produce or cause to be produced all evidence on which such dealer relies in support of his returns, or to produce such evidence as is specified in the notice.
(b) On the date specified in the notice, or as soon as may be thereafter, the Commissioner shall, after considering all the evidence which may be produced, assess the amount of tax due from the dealer.
(4) If a dealer fails to comply with the terms of any notice issued under sub-section (3), the Commissioner shall assess to the best of his judgment the amount of tax due from him.
(5) If a dealer fails to furnish returns in respect of any period by the prescribed date, the Commissioner shall, after giving the dealer a reasonable opportunity of being heard, assess to the best of his judgment the amount of tax, if any, due from him.
(6) If, upon information which has come into his possession, the Commissioner is satisfied that any dealer who has been liable to pay tax under this Act in respect of any period, has failed to get himself registered under section 14 or section 17, as the case may be , the Commissioner shall proceed in such manner as may be prescribed to assess to the best of this judgment the amount of tax due from the dealer in respect of such period and all subsequent periods and in making such assessment shall give the dealer a reasonable opportunity of being heard, and the Commissioner may, if he is satisfied that the default was made without reasonable cause, direct that the dealer shall pay, by way of penalty, in addition to the amount of the tax so assessed, a sum not exceeding twice that amount.
(7) 1[No assessment under the provisions of sub-sections (1) to (5) shall be made after the expiry of two years, and no assessment under the provision of subsection (6) shall be made after the expiry of six years from the end of the year in respect of which or part of which the tax is assessable:
PROVIDED that for the assessments of the years 1997-98, no assessments under the provisions of sub-sections (1) to (5) shall be made after the expiry of two and a half years 2[and no assessments of the year 1999-2000 under the provisions of the said sub-sections shall be made after the expiry of one year and nine months].
PROVIDED FURTHER that where such assessment is made in consequence of, or to give effect to, any order of an appellate or revisional authority or of a court, the period of two years or six years, as the case may be, shall be reckoned from the date of such order and further that the provisions of sub-section (1) of section 24 regarding time limit for service of notice shall not apply for assessment made under this provision.
Explanation : For the assessment made in consequence of, or to give effect to , any order of an appellate or revisional authority or of a court, the revised limitation period shall be applicable for the order to the appellate or revisional limitation period shall be applicable for the order of the appellate or revisional authority or of the court, made after the commencement of the Delhi Sales Tax (Second Amendment) Act, 2000]
(8) Any assessment made under this section shall be without prejudice to any prosecution for an offense under this Act.
1. Subs. by Delhi Sales Tax (Second Amendment) Act, 2000, dt. 19.2.2001 w.e.f. 9.8.2000 earlier read as: “No assessment under the provisions of sub-section (1) to (5) shall be made after the expiry of three years [substituted by “four years” vide the Delhi Sales Tax Amendment Act, 1997 (Delhi Act No. 2 of 1999) w.e.f. 1.12.1999] and no assessment under the provisions of sub-section (6) shall be made after the expiry of six years from the end of the year in respect of which or part of which the tax is assessable”.
PROVIDED that where such assessment is made in consequence of or to give effect to, any order of an appellate or revisional authority or of a court, the period of three years, [substituted by “four years” vide the Delhi Sales Tax amendment Act, 1997 (Delhi Act No. 2 of 1999) w.e f. 1.12.1999] or six years, as the case may be, shall be reckoned from the date of such order and further that the provisions of sub-section (1) of section 24 regarding time for service of notice shall not apply for assessment made under this proviso.”
2. Inserted by The Delhi Sales Tax (Amendment) Ordinance, 2001 (Ordinance No. 2 of 2000) (published in Delhi Gazette, Extraordinary No. 140 dt. 27 th August 2001
Section 24. Periodical payment of tax and filing or returns
(1) Tax payable under this Act shall be paid in the manner hereinafter provided at such intervals as may be prescribed.
(2) Every registered dealer and every other dealer who may be required so to do by the Commissioner by notice served in the prescribed manner shall furnish such returns of turnover by such dates and to such authority as may be prescribed.
(3)Every registered dealer required to furnish returns under sub-section (2) shall pay into Government Treasury or the Reserve Bank of India or in such other manner as may be prescribed, the full amount of tax due from him under this Act according to such return and shall where such payment is made into a Government Treasury or the Reserve Bank Of India furnish alongwith the return a receipt from such Treasury of Bank showing the payment of such amount.
(4)If any registered dealer discovers any mistake or error in any return furnished by him, he may at any time, before the expiry of three months next following the last date prescribed for furnishing of the return, furnish a revised return, and if the revised return shows a higher amount of tax to be due that was shown in the original return, it shallbe accompanied by a receipt showing payment in the manner provided in sub-section (3) of the excess amount.
(a)in the case of an individual, by the individual himself, and where the individual is absent from India by the individual concerned or by some person duly authorised by him in this behalf and where the individual is mentally incapacitated from attending to his affairs, by his guardian or by any other person competent to act on his behalf;
(b)in the case of a Hindu undivided family, by a Karta, and where the Karta is absent from India or mentally incapacitated from attending to his affairs, by any other adult member of such family;
(c)in the case of a company or local authority, by the principal officer thereof;
(d)in the case of a firm, by any partner thereof not being a minor;
(e)in the case of any other association, by any member of the association or the principal officer thereof; and
(f)in the case of any other person, by that person or by some person competent to act on his behalf.
(6)For the purposes of sub-section (5) of this section and section 59 the expression “principal officer” shall have the meaning assigned to it under clause (35) of section 2 of the Income-tax Act, 1961(43 of 1961).
Section 25. Payment and recovery of tax
(1)The amount of Tax-
(2) No dealer shall be required to furnish any security or additional security under sub-section (1) unless he has been given an opportunity of being heard and the amount of security or additional security that may be required to be furnished, shall-
(a) due where returns have been furnished without the receipt showing full payment thereof;and
(b) assessed, reassessed or re-computed for any period under section 23 or section24, less the amount if any, already paid by the dealer in respect of the said period, shall together with any penalty that may be directed to be paid under any of the provisions of this section, sub-section (6) of section 23, section 55, section 56 or section 57 be paid by the dealer or the person liable therefor into Government Treasury or the Reserve Bank of India or in such other manner as may be prescribed within thirty days from the date of service of notice of demand issued by the Commissioner for this purpose :
PROVIDED that where the Commissioner has reason to believe that it will be detrimental to revenue if the full period of thirty days aforesaid is allowed, he may direct that the sum specified in the notice of demand shall be paid within such period being a period less than the period of thirty days aforesaid, as may be specified by him in that notice.
(2) On an application made before the expiry of the due date under sub-scetion (1), the Commissioner may, in respect of any particular dealer or person and for reasons to be recorded in writing, extend the time for payment or allow payment by installment or grant stay, subject to such condition as he may think fit to impose in the circumstances of the case.
(3) If the amount of tax and penalty, if any, is not paid within the time specified in sub section (1) or extended under sub-section (2), as the case may be, the dealer or the person liable therefor shall be deemed to be in default in respect of that amount.
(4) In a case where payment by installment is allowed under sub-section (2) and the dealer or the person liable for such payment commits default in paying any one of the installment within the time fixed under that sub-section, the dealer or the person aforesaid shall be deemed to be in default in respect of the whole of the amount then outstanding and the other installment shall be deemed to have been due on the same date as the installment actually in default.
(5) When a dealer or a person is in default or is deemed to be in default in making payment of tax and penalty, if any, he shall, in addition to the amount of arrears payable under the foregoing sub-sections, be liable to pay, by way of penalty, an amount which in the case of a continuing default may be increased, from time to time, so however, that the total amount of penalty does not exceed the amount in arrears :
PROVIDED that, before levying any such penalty, the dealer or the person aforesaid shall be given a reasonable opportunity of being heard.
(6) Where as a result of any final order amount of tax and penalty, if any, with respect to the default, in the payment of which the penalty was levied, has been wholly reduced, the penalty levied shall be refunded.
(7) Any amount of tax or penalty in respect of which a dealer or person is in default, or any composition money due under section 29 or section 54 which remains unpaid, shall be recoverable as an arrear of land revenue :
PROVIDED that where security, other than in the form of surety bond, has been furnished by a dealer under sub-section (2) of section 16 or section 18, the Commissioner may, for good and sufficient reasons in writing, realised any amount of tax or penalty or composition money remaining unpaid as aforesaid or part thereof ordering forfeiture of the whole or any part of the security.
Section 26. Continuation of certain recovery proceedings
Where any notice of demand in respect of any tax or penalty or any other amount payable under this Act (hereafter in this section referred to as “Government dues”) is served upon any dealer, and any appeal, revision application or other proceeding is filed or taken in respect of such Government dues, then,-
(a)where such Government dues are enhanced in such appeal, revision or other proceeding, the Commissioner shall serve upon the dealer another notice of demand only in respect of the amount by which such Government dues are enhanced and any recovery proceeding in relation to such Government dues as are covered by the notice of demand served upon him before the disposal of such appeal, revision application or proceeding any, without the service of any fresh notice of demand, be continued from the stage at which such proceedings stood immediately before such disposal;
(b) where such Government dues are reduced in such appeal, revision or proceeding.-
(i)it shall not be necessary for the Commissioner to serve upon the dealer a fresh notice of demand;
(ii) the Commissioner shall give intimation of such reduction to him and to the appropriate authority with whom recovery proceedings are pending;
(iii) any recovery proceedings initiated on the basis of the notice of demand served upon him before the disposal of such appeal, revision application or proceeding may be continued in relation to the amount so reduced from the stage at which such proceedings stood immediately before such disposal.
Section 27. Interest
(1) If any dealer fails to pay the tax due as required by sub-section (3) of section 21, he shall, in addition to the tax (including any penalty) due, be liable of pay simple interest on the amount so due at one per cent per month from the date immediately following the last date for the submission of the return under sub-section (2) of the said section for a period of one month thereafter for so long as he continues to make default in such payment or till the date of completion of assessment under section 23 whichever is earlier.
(2) When a dealer or a person is in default or is deemed to be in default in making the payment of tax, he shall, in addition to the amounts payable under section 23 or section 24, be liable to pay simple interest on such amount at one per cent per month from the date of such default for a period of one month, and at one and a half per cent per month thereafter for so long as he continues to make default in the payment of the said amount.
(3) Where as a result of any final order the amount of tax (including any penalty) due or in default is wholly reduced, the amount of interest, if any, paid shall be refunded, or if such amount is varied, the interest due shall be calculated accordingly :
PROVIDED that where any amount of tax payable is enhanced by any such order, interest shall be payable on the amount by which the tax is enhanced after the expiry of a period of three months from the date of the order :
PROVIDED FURTHER that where the realisation of any amount remains stayed by the order of any court or authority and such order is subsequently vacated, interest shall be payable also for any period during which such order remained in operation.
(4) The interest payable under this section shall be deemed to be tax due under this Act.
Section 28. Special mode of recovery
(1) Notwithstanding anything contained in any law or contract to the contrary, the Commissioner may, at any time or from time to time, by notice in writing, a copy of which shall be forwarded to the dealer at his last known address, require-
(a) Any person from whom any amount of money is due, or may become due, to a dealer on whom notice has been served under sub-section (1) of section 25, or
(b) any person who holds or may subsequently hold money for or on account of such dealer, to pay to the Commissioner, either forthwith upon the money becoming due or being held or within the time specified in the first mentioned notice (but not before the money becomes due or is held as aforesaid) so much of the money as is sufficient to pay the amount due by the dealer in respect of the arrears of tax and penalty under this Act, or the whole of the money when it is equal to or less than that amount .
Explanation.- For the purposes of this sub-section, the amount of money due to a dealer from,or money held for or on account of a dealer by, any person, shall be calculated by the Commissioner after deducting therefrom such claims (if any) lawfully subsisting, as may have fallen due for payment by such dealer to such person.
(2) The Commissioner may amend or revoke any such notice or extend the time for making any payment in pursuance of the notice.
(3) Any person making any payment in compliance with a notice under this section shall be deemed to have made the payment under the authority of the dealer, and the receipt thereof by the Commissioner shall constitute a good and sufficient discharge of the liability of such person to the extent of the amount specified in the receipt.
(4) Any person discharging any liability to the dealer after receipt of the notice referred to in this section, shall be personally liable to the Commissioner to the extent of the liability discharged or to the extent of the liability of dealer for tax and penalty which ever is less.
(5)where a person to show a notice under this section is sent, proves to the satisfaction of the Commissioner that the sum demanded or any part thereof is not due to the dealer or that he does not hold any money for or on account of the dealer, then, nothing contained in this section shall be deemed to require such person to pay any such sum or part thereof, as the case may be, to the Commissioner.
(6) Any amount of money which the aforesaid person is required to pay to the Commissioner, or for which he is personally liable to the Commissioner under this section shall, if it remains unpaid, be recoverable as an arrear of land revenue.
(7) The Commissioner may apply to the court in whose custody there is money belonging to the dealer for payment to him of the entire amount of such money or if it is more than the tax and penalty, if any, due, an amount sufficient to discharge such tax and the penalty.
Section 29. Lump sum payment of tax
The Commissioner may, in such circumstances and subject to such conditions as may be prescribed, permit any dealer to pay in lieu of the amount of tax payable by him under the provisions of this Act, a lump sum determined in the prescribed manner, by way of composition.
Section 30. Refund
(1)If any person satisfies the Commissioner that the amount of tax paid by him or on his behalf for any year exceeds the amount payable by him under this Act for that year, he shall, on making claim in the prescribed form and verified in the prescribed manner, be entitled to refund of the excess either by cash payment or at his option by deduction of such excess from the amount of tax and penalty (if any) due in respect of any other period :
PROVIDED that the Commissioner shall first apply such excess towards the recovery of amount in respect of which a notice under section 25 has been issued and shall then refund the balance, if any.
Explanation.- When no assessment is made, the due tax paid under section 21 by the dealer shall be deemed to be the tax payable under this Act.
(2) Where on account of death, incapacity, insolvency, liquidation or other cause a person is unable to claim or receive any refund due to him, his legal representative or the trustee or guardian or receiver, as the case may be, shall be entitled to claim or receive such refund for the benefit of such person or his estate.
(3) No claim for refund under sub-section (1) shall be allowed unless it is made within a period of twelve months from the date of the order giving rise to a claim for such refund, and the Commissioner shall, except as otherwise provided in this Act, refund any amount which becomes due to a dealer in the prescribed manner :
PROVIDED that the Commissioner may allow a claim for refund to be made after the expiry of the said period but not later than twelve months from such expiry, if he is satisfied that there was sufficient cause for not making such claim within that period.
(4) where an amount required to be refunded by the Commissioner to any person as a result of any order passed in appeal or other proceedings under this Act is not so refunded to him within ninety days from the date of his claim under sub-section (3),such person shall be entitled to be paid simple interest on such amount at one per cent per month from the date immediately following the expiry of the period of ninety days for a period of one month and at one and a half per cent per month, thereafter for so long as the refund is not made.
Explanation.- If the delay in making the refund during any of the periods referred to in this sub-section is attributable to the person making the claim, whether wholly or in part, the period of the delay attributable to him shall be excluded from the period for which interest is payable.
(5) Where any question arises as to the period to be excluded for the purposes of calculation of interest under sub-section (4), such question shall be determined by the Commissioner whose decision thereon shall be final.
(6) where an order giving rise to a refund is the subject matter of an appeal or further proceeding or where any other proceeding under this Act is pending and the Commissioner is of opinion that the grant of the refund is likely to adversely affect the revenue, the Commissioner may withhold the refund till such time as the Commissioner may determine.
(7) In any claim for refund, it shall not be open to the dealer to question the correctness of any assessment or other matter decided which has become final and conclusive or ask for a review of the same and the dealer shall not be entitled to any relief on such claim except refund of tax wrongly paid or paid in excess.
(8) Any tax levied and collected under this Act in respect of sale in Delhi of any declared goods which are subsequently sold in the course of inter-State trade or commerce, shall be reimbursed to the person making the sale in the course of inter-State trade or commerce, in such manner and subject to such conditions as may be prescribed.
Explanation.- For the purpose of sub-section (8), “declared goods” means goods declared by section 14 of the Central Sales Tax Act, 1956 (74 of 1956) to be of special importance in inter-State trade or commerce.
Section 31. Set-off
(1) Where the Commissioner is satisfied that delay beyond the prescribed period has occurred in the grant of a certificate of registration to a dealer and that such delay was not wholly due to any fault, commission or negligence on the part of the dealer, the amount of tax, if any, paid on sales of goods made to such dealer which would not have been payable but for the delay in the grant of a certificate of registration as aforesaid, shall be adjusted against any amount payable by the dealer under this Act. PROVIDED that-
(a) in case the amount of tax so paid by the dealer exceeds his liability to pay any amount under this Act the adjustment shall be made to the extent of such liability and the balance shall be refunded to the dealer; and
(b) in case there is no liability to pay amount under this Act, the entire amount of tax paid shall be refunded to the dealer;
PROVIDED FURTHER that the dealer shall not be entitled to any such adjustment or refund in respect of the goods, which are not specified in the certificate of registration granted to him.
(2) No application for adjustment or refund of tax under this section shall be entertained unless it is made within three months from the date on which a certificate of registration is granted to the dealer.
Section 32. Liability in case of transfer of Business
(1) Where a dealer, liable to pay tax under this Act, transfer his business in whole in part, by sale, gift, lease, leave or license, hire or in any other manner whatsoever, the dealer and the person to whom the business is so transferred shall jointly and severally be liable to pay the tax (including any penalty) due from the dealer upto the time of such transfer, whether such tax (including any penalty) has been assessed before such transfer, but has remained unpaid or is assessed thereafter.
(2) Where the transferee or the lease of a business referred to in sub-section (1) carries on such business either in his own name or in some other name, he shall be liable to pay tax on the sale of goods effected by him with effect from the date of such transfer and shall, if he is an existing dealer, apply within the prescribed time for amendment of his certificate of registration.
CHAPTER VI- Liability in Special Cases
Section 33. Liability in case of company liquidation
(1) Every person –
(a) who is a liquidator of any company which is being wound up whether under the orders of a court or otherwise ; or
(b) who has been appointed the receiver of any assets of a company (hereinafter reffered to as the “liquidator”), shall, within thirty days after he has become such liquidator, give notice of his appointment as such to the Commissioner.
(2) The Commissioner shall, after making such enquiries or calling for such information as he may deemed fit, notify the liquidator within three months from the date on which he receive notice of the appointment of the liquidator, the amount which in the opinion of the Commissioner would be sufficient to provide for any tax (including any penalty) which is then, or is likely thereafter, to become payable by the company.
(3) The Liquidator shall not part with any of the assets of the company or the properties in his hand until he has been notified by the Commissioner under sub-section (2) and on being so notified, the liquidator shall set aside an amount equal to the amount notified and, until he so set aside such amount , he shall not part with any of the assets of the company or the properties in his hand :
PROVIDED that nothing contained in this sub-section shall debar the liquidator from parting with such assets or properties in compliance with any order of a court or for the purpose of the payment of the tax and penalty, if any, payable by the company under this Act or for making any payment to secured creditors whose debts are entitled under law to priority of payment over debts due to Government on the date of liquidation or for meeting such costs and expenses of the winding up of the company as are in the opinion of the Commissioner reasonable
(4) If the liquidator fails to give notice in accordance with sub-section (1) or fails to set aside the amount as required by sub-section (3) or part with any assets of the company or the properties in his hand and contravention of the provisions of that subsection , shall be to the extent of such amount.
PROVIDED that if the amount of any tax and penalty, if any, payable by the company is notified under this subsection (2) the personal liability of the liquidator under this subsection shall be to the extent of such amount.
(5) Where there are more liquidator than one, the obligation and liabilities attached to the liquidator under this section shall attach to all the liquidators jointly and severally.
(6) When any private company is wound up and any tax and penalty, if any, assessed under this Act on the company for any period , whether before or in the course of or after its liquidation , cannot be recovered, than every person who was a director of the private company at any time during the period for which the tax is due , shall be jointly and severally liable for the payment of such tax and penalty, if any, unless he proves to the satisfaction of the Commissioner that non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company.
(7) The provision for this section shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force.
(8) For the purposes of this section, the expressions “company” and “private company shall have the meanings respectively assigned to them under clauses (i) and (ii) of subsection (1) of section 3 of the companies Act, 1956 (1 of 1956).
Section 34. Liabilities of partners of firm to pay tax
Not withstanding any contract to the contrary, where any firm is liable to pay any tax (including any penalty) under this Act, the firm and each of the partners of the firm shall be jointly and severally liable for such payment :
PROVIDED that where any such partner retires from the firm, he shall intimate the data of his retirement to the commissioner by a notice in that behalf in writing and he shall be liable to pay (including any penalty) remaining unpaid at the time of his retirement through unassessed on that date:
from the date of retirement and any tax (including any penalty) due up to the date of his retirement though unassessed on that date :
PROVIDED FURTHER that if no such intimation is given within fifteen days from the date of retirement, the liability of the partner under the first provision shall continue until the date on which such intimation is received by the Commissioner.
CHAPTER VI- Liability in Special Cases
Section 35. Liability of guardians, trustees, 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 his behalf and for the benefit of such minor or other incapacitated person, the tax (including any penalty) shall be levied upon and recoverable from such guardian, trustee or agent, as the case may be, in like manner and to the same extent as it would be assessed upon and recoverable from any such minor or other incapacitated person, if he were of full age and of sound mind and if he were conducting the business himself, and all the provisions of this Act shall, so far may be, apply accordingly.
Section 36. Liability of Court of Wards, etc.
Where the estate or any portion of the estate of a dealer owning a business in respect of which taxis payable under this Act is under the control of the Court of Wards, the Administrator-General, the Official Trustee or any receiver manager (including any person, whatever be this designation, who in fact manages the business) appointed by or under any order of a court, the tax (including any penalty) shall be levied upon and be recoverable from such Court of Wards, Administrator-General, Official Trustee, receiver or manager in like manner and to the same extent as it would assessable upon and be recoverable from the dealer if he were conducting the business himself; and all the provisions of this Act shall, so far as may be, apply accordingly.
Section 37. Liability in other cases
(1) Where a dealer is a firm or an association of persons or a Hindu undivided family, and such firm, association or family has discontinued business-
(a) the tax payable under this Act, by such firm, association or family up to the date of the discontinuance may be assessed as if no such discontinuance had taken place; and
(b) every person who was at the time of such discontinuance a partner of such firm, or a member of such association or family, shall, notwithstanding such discontinuance be liable jointly and severally for the payment of tax assessed and penalty imposed and payable by such firm, association or family, whether such tax (including any penalty) has been assessed prior to or after such discontinuance, and subject as aforesaid, the provisions of this Act shall, so far as may be, apply as if every such person or partner or member were himself a dealer :
PROVIDED that where the partner of a firm liable to pay such tax (including any penalty) dies, the provision of subsection (4) shall, so far as may be, apply.
(2) Where a change has occurred in the constitution of a firm or association, the partners or members of the firm or association as it existed after its reconstitution, shall, without prejudice to the provisions of section 34, jointly and severally be liable to pay tax (including any penalty) due from such firm or association for any period before its re-constitution.
(3) The provisions of subsection (1) shall, so far as may be, apply where the dealer, being a firm or association of persons is dissolved or where the dealer , being a Hindu undivided family, has affected partition with respect to the business carried on by it and accordingly references in that subsection to discontinuance shall be construed as references to dissolution or, as the case may be , to partition.
(4) Where the dealer is liable to pay tax under this Act dies, then –
(a) if a business is carried on by the dealer is continued after his death by his legal representative or any other person , such legal representative or other person, shall be liable to pay tax (including any penalty) due from the dealer under this Act, whether such tax (including any penalty) has been assessed before his death but has remained unpaid, or is assessed after his death;
(b) if the business carried on by the dealer is discontinued after his death, his legal representative shall be liable to pay out the estate of the deceased, to the extent the estate is capable of meeting the charge, the tax (including any penalty) due from the dealer under this Act, whether this tax (including any penalty) has been assessed before his death but has remained unpaid, or is assessed after his death, and the provisions of this Act shall, so far as may be, apply to such legal representative or other person as if he the dealer himself.
Explanation. – For this purposes of this section and section 40 “legal representative” has the meaning assigned to it in clause (11) of section 2 of the Code of Civil Procedure, 1908 (5 of 1908).
Section 38. Accounts
(1) Every dealer liable to pay tax under this Act, and every other dealer on whom a notice has been served to furnish returns under sub-section-2 of section 21 shall keep at his place of business a true account of the value of goods bought and sold by him, and if the Commissioner considers that such account is not sufficiently clear and intelligible to enable him to make a proper check of the returns reffered to in that sub-section, he may require such dealer by notice in writing to keep such accounts (including records of purchases and sales) as may be specified therein.
(2)The Commissioner may, by notification in the Official Gazette, direct any class of registered dealers generally to keep such accounts (including records of purchases and sales) as may be specified in the notification subject to such conditions and restrictions as may be prescribed.
CHAPTER VII- Liability to produce Accounts and supply of Information
Section 39. Memoranda of sales.
If a registered dealer –
(a)sells goods to another registered dealer, or
(b) makes sales in the course of inter-State trade or commerce, or
(c) sells any goods exceeding 1[one hundred rupees] in value in any one transaction to any other person, he shall issue to the purchaser a bill or cash memorandum serially numbered, signed and dated by him or his servant, manager or agent and showing therein his name and address and such other particulars as may be prescribed and he shall keep a duplicate or copy of such bill or cash memorandum duly signed and dated and preserve it for a period of not less than five years from the end of the year unless any proceedings in respect of that year are pending in which case they shall be preserved till the final decision in those proceedings:
PROVIDED that if in respect of any goods or class of goods or any dealers or class of dealers, the 2[lieutenant Governor] is of opinion that it is not practicable to issue any bills or cash memoranda for sales of goods exceeding 3[one hundred rupees] in value in any one transaction to any other person, he may, by notification in the Official Gazette, –
(i) specify such amount exceeding 4[one hundred rupees] in value as the amount for the issue of such bills or cash memoranda:
(ii) exempt such goods or class of goods or dealers or class of dealers from the operation of this section.
1. Subs. by Delhi Sales Tax (Amendment), 1994, and Subs. by Delhi Sales Tax (Second Amendment) Act, 2000, dt. 19.2.2001 for “ten rupees” w.e.f. 8.4.1994.
2. Subs. for “Administrator” by Delhi Act 1 of 1998, w.e.f 2.3.1998.
3. Subs. for “ten rupees” by Delhi Sales Tax (Amendment), 1994; Delhi Sales Tax (Second Amendment) Act, 2000, dt 19.2.2001 (w.e.f 8.4.1994).
4. Subs for “ten rupees” by Delhi Sales Tax (Amendment), 1994; Delhi Sales Tax (Second Amendment) Act, 2000, dt 19.2.2001 (w.e.f 8.4.1994).
Section 40. Information to be furnished regarding change of business
if any dealer to whom the provisions of sub-section (2) of section 21 apply –
(a) sells or otherwise disposes of his business or any part of his business or any place of business, or effects or comes to know of any other change in the ownership of the business; or
(b) discontinues his business or changes his place of business or warehouse, or opens a new place of business; or
(c) changes the name or nature of his business or effects any change in the goods or class of goods in which he carries on his business and which is or are specified in his certificate of registration; or
(d) enters into partnership or other association in regard to his business , he shall, within the prescribed time, inform the prescribed authority accordingly, and if any such dealer dies, his legal representative shall in like manner inform the said authority.
CHAPTER VII. Liability to produce Accounts and supply of Information
Section 41. Production and inspection of accounts and documents and search of premises
(1) The Commissioner may, subject to such conditions as may be prescribed, require any dealer 1[or any other person] –
(a) to produce before him such books of accounts, registers or documents,
(b) to furnish such information relating to the stock of goods of, or purchases, sales or delivery of goods by the dealer or any other information relating to his business , as may be deemed necessary, for the purposes of this Act.
(2)(a) All books of accounts, registers and documents relating to the stock of goods, or purchases , sales deliveries of goods by any dealer, and
(b) All goods kept in any place of business or ware-house of any dealer, 2[or at any other place for and on behalf of a dealer] shall at all reasonable times be open to inspection by the commissioner and the commissioner may take or cause to be taken such copies or extracts of the said books of accounts, registers or documents and such inventory of the goods found as appear to him necessary for the purposes of this Act.
(3) Where the Commissioner, upon information in his possession or otherwise, has reasonable ground to believe that –
(a) any person to whom a notice under this Act was issued to produce or cause to be produced, any book of accounts or other documents has omitted or failed to produce or caused to be produced such books of accounts, or other documents, as required by such notice, or
(b) any person to whom a notice as aforesaid has been or might be issued, will not, or would not, produce or caused to be produced any books of accounts or other documents which will be useful for, or relevant to , any proceeding under the Bengal Finance (Sales Tax) Act, 1941, Bengal Act (VI of 1941), as it was in force in Delhi, or under this Act, or
(c) book of accounts, registers or documents of any dealer may be destroyed , mutilated, falsified or secreted or any sales by that dealer have been or may be suppressed, 3[or any goods have not been or may not be accounted for in the books of accounts, registers or other documents required to be maintained under this Act] with a view to evade or attempt to evade payment of tax due under the Bengal Finance (Sales Tax) Act, the Commissioner or any other person appointed under sub-section (2) of section 9 if so authorised by the Commissioner may –
(i) enter and search any building or place where he has reason to suspect that books of accounts and other documents 4[or the goods] or the sale proceeds are kept;
(ii) break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause (1) where the keys thereof are not available ;
(iii) seize any such books of accounts or other documents or any inventory of goods 5[or any goods] as appear to him necessary for the purposes of this Act;
(iv) place marks of identification on any books of accounts or other documents or make or cause to be made extracts or copies therefrom ;
(v) make a note or any inventory of any such money or goods found as a result of such search 6[or place marks of identification on such goods];
(vi) seal the premises including the office, shop, godown, box, locker, sage, almirah or other receptacle if the owner or the person in occupation or in charge of such office, shop, godown, box, locker, safe, almirah, or other receptacle leaves the place or is not available or fails or refuses to open it when called upon to do so 7[or causes or attempts to cause obstruction to the Commissioner or the authorised officer in the discharge of his duties under this section.]
(4) The commissioner may requisition the services of any police officer or any public servant, or of both to assist him for all or any of the purposes specified in sub-section (3).
(5) where the Commissioner seizes, any books of accounts or other documents 8[or any goods], he shall give the dealer or the person present on his behalf, as the case may be, a receipt for the same and obtain acknowledgment of the receipt so given to him :
PROVIDED that if the dealer or person from whose custody the books of accounts or other documents 9[or the goods] are seized refuses to give an acknowledgment, the Commissioner any leave the receipt at the premises and record this fact:
PROVIDED FURTHER that the dealer or person aforesaid may file objection before the Commissioner against such search, seizure or inventory within seven days of such search, seizure or inventory.
10[(5A) Where it is not feasible to seize the accounts or other documents or the goods under sub-section (3), the Commissioner or the authorised officer, may serve on the owner or the person who is in immediate possession or control thereof, an order that he shall not remove or part with or otherwise deal with them except with the previous permission of the Commissioner or such officer.]
(6) The Commissioner shall keep in his custody the books of accounts, registers or documents seized under sub-section (3) for such period not later than the completion of all the prceedings under this Act in respect of years for which those books of accounts, registers or documets are relevant, as he considers necessary, and thereafter shall return the same to the dealer or any other person from whose custody or power they were
seized :
PROVIDED that the Commissioner may, before returning such books of accounts or other documents as aforesaid, place or cause to be placed such marks of identification thereon as appear to him to be necessary :
PROVIDED FURTHER that the Commissioner may, before returning the books of accounts and other documents, require that the dealer or the person, as the case may be, shall give written undertaking that the books of accounts and other documents shall be presented whenever required by any competent authority for any proceedings under this Act.
(7) Save as otherwise provided n this section, every search or seizure made under this section shall 11[as far as possible] be carried on in accordance with the provision of the Code of Criminal Procedure, 1973 (2 of 1974), relating to searches or seizures made under that Code.
(8) The Commissioner may, for the purposes of this Act-
(a) require any person, including a banking company, post office or any officer thereof, to furnish information in relation to such points or matters or to furnish statements of accounts and affairs verified in the manner specified by him, giving information in relation to such points or matters as in his opinion will be useful for, or relevant to, any proceeding under this Act;
(b) require any person-
(i) who transports or holds in custody, for delivery to or on behalf of any dealer any goods to give any information likely to be in his possession in respect of such goods or to permit inspection thereof, as the case may be ;
(ii) who maintains or has in his possession any books of accounts, registers or documents relating to the business of a dealer to produce such books of accounts, registers or documents for inspection.
(9) 12[If any person, who transports or holds in custody for delivery to or on behalf of any dealer any goods, on being required by the Commissioner under sub-clause (i) of clause (b) of sub-section (8) of this section so to do, fails to give the information likely to be in his possession in respect of such goods or fails to permit inspection thereof, as the case may be, the Commissioner may pass any order of detention or seizure of goods in his custody or possession in respect of which the default is committed.
(10) The order of detention or seizure passed under sub-section (9) of this section shall remain in force so long as the person concerned does not furnish information required under sub-clause (i) of clause (b) of sub-section (8) or make proper arrangement for inspection of the goods under the said sub-section.
(11) If any person, who transports or holds in custody for delivery to or on behalf of any dealer any goods, on being required by the Commissioner under sub-clause (i) of clause (b) of sub-section (8) of this section so to do, fails to give any information likely to be in his possessions in respect of such goods or fails to permit inspection thereof, as the case may be, without prejudice to any other action which may be taken against such person, a presumption may be raised that the goods, in respect of which he was failed to furnish information or permit inspection, were meant for sale by him and he is a dealer liable to pay tax under this Act and the provisions of this Act shall apply accordingly.
(12) If any person commits default under clause (a) or sub-clause (ii) of clause (b) of sub-section (8) of this section, the Commissioner may, without prejudice to any other action which may be taken against such person under any other provision of this Act, direct, after giving an opportunity of being heard to such person that such person shall pay by way of penalty a sum not exceeding fifty thousand rupees.
(13) If the Commissioner is satisfied that any person on being required by him so to do, has failed to furnish the information in respect of the goods in his custody for delivery to or on behalf of any dealer or to permit inspection thereof under subclause (i) of clause (b) of sub-section (8) of this section, the Commissioner may, by order in writing and after giving opportunity of being heard to such person, impose by way of penalty a sum not exceeding three and a half time the amount of tax leviable under this Act on the goods in respect of which the default was committed.
(14) Where an order of detention or seizure of goods is made under the provisions of this section, the Commissioner or the officer so authorised in this behalf may release the goods on such person exercising the option of paying by way of penalty such sum as may be directed, not exceeding three and a half times the amount of tax leviable on such goods under this Act.
(15) Where any premises including the office, shop, godown, box, locker, safe, almirah or other receptacle have been sealed under sub-section (3) of this section, the Commissioner, on an application made by the owner or the person in occupation or in charge of such shop, godown, box, locker, safe, almirah or other receptacle, may order de-sealing thereof on such terms and conditions including furnishing of security for such sum in such form and manners as may be directed.
(16) Where an order of detention of seizure of goods is made under this section and no claims lodged by any person with respect to such goods within a period of three months from the date of such order, the Commissioner may, by order in writing, direct the auction of such goods:
PROVIDED that if the goods, in respect of which an order of detention or seizure is made, are of a perishable nature or subject to speed and natural decay or when the expenses of keeping them in custody are likely to exceed their value, the same may be ordered to be auctioned as soon as it is practicable soon after an order of detention or seizure of such goods is made; and the amount so realised by the auction of goods shall be remitted in the Government reasury immediately.
(17) Where an order imposing penalty is passed under sub-section (13) or an option of paying penalty is exercised under sub-section (14) of this section and the person liable fails to pay the penalty within the prescribed period, the goods detained or seized may be sold by public auction and the sale proceeds deposited in Government Treasury.
(18) Auction of goods to be made under sub-section (16) or sub-section (17) of this section shall be carried out in the manner prescribed for disposal of goods under sub-section (6) of section 64 of this Act.
(19) Any person entitled to the sale proceeds of goods auctioned under the provisions of this section shall, on application made to the Commissioner and upon sufficient proof, be paid the sale proceeds of the goods auctioned, after deducting the expenses of the sale and other incidental charges and the amount of sales tax and penalty leviable under this Act.
(20) No action shall lie for damages or for any other claim by any person against the Commissioner or any other officer authorised in this behalf for anything done in good faith in discharge of their duties under this section.]
41A[13 Furnishing of information by owners of cold stores, warehouses, godowns, etc.
(1) Notwithstanding anything to the contrary contained in any law for the time being in force every owner or lessee of a cold store, warehouse, godown or any such place, who stores goods for hire or reward shall maintain or cause to be maintained a correct and complete account indicating the full particulars of the person whose goods are stored and the quantity, value, date of delivery of such goods.
(2) Such accounts shall, on demand, be produced before the Commissioner or any officer authorised in this behalf who may take or cause to be taken such extracts therefrom or require such extracts to be furnished as he may consider necessary.
(3) If any owner or lessee of a cold store, warehouse, godown or any other such place, who stores goods for hire or reward, contravenes any of the provisions of sub-section (1) or sub-section (2) in a manner likely to lead to evasion of any tax payable under this Act, the Commissioner may, without prejudice to any other action which may be taken against such owner or lessee under any other provision of this Act, direct, after giving an opportunity of being heard, that such owner or lessee shall pay by way of penalty a sum not exceeding three and a half times the tax, leviable on the goods in respect of which default is committed under sub-section (1) or sub-section (2).]
1. Inserted vide Delhi Sales Tax (Second Amendment) Act, 2000, dt.19.2.2001 w.e.f. 19.2.2001.
2. Inserted vide Delhi Sales Tax (Second Amendment) Act, 2000, dt.19.2.2001 w.e.f. 19.2.2001.
3. Inserted vide Delhi Sales Tax (Second Amendment) Act, 2000, dt.19.2.2001 w.e.f. 19.2.2001.
4. Inserted vide Delhi Sales Tax (Second Amendment) Act, 2000, dt.19.2.2001 w.e.f. 19.2.2001.
5. Inserted vide Delhi Sales Tax (Second Amendment) Act, 2000, dt.19.2.2001 w.e.f. 19.2.2001.
6. Inserted vide Delhi Sales Tax (Second Amendment) Act, 2000, dt.19.2.2001 w.e.f. 19.2.2001.
7. Inserted vide Delhi Sales Tax (Second Amendment) Act, 2000, dt.19.2.2001 w.e.f. 19.2.2001.
8. Inserted vide Delhi Sales Tax (Second Amendment) Act, 2000, dt.19.2.2001 w.e.f. 19.2.2001.
9. Inserted vide Delhi Sales Tax (Second Amendment) Act, 2000, dt.19.2.2001 w.e.f. 19.2.2001.
10. Inserted vide Delhi Sales Tax (Second Amendment) Act, 2000, dt.19.2.2001 w.e.f. 19.2.2001.
11. Inserted vide Delhi Sales Tax (Second Amendment) Act, 2000, dt.19.2.2001 w.e.f. 19.2.2001.
12. Sub-section (9) to (20) were inserted vide Delhi Sales Tax (Second Amendment) Act, 2000. dt.19.2.2001 w.e.f. 19.2.2001.
13. Section 41A was inserted vide Delhi Sales Tax (Second Amendment) Act, 2000, dt. 19.2.2001.
Section 42. Power of Commissioner and other authorities to take evidence on oath, etc.
(1) The Commissioner or any person appointed under sub-section (2) of section 9 to assist him shall, for the purposes of this Act, have the same powers as are vested n a court under the Code of Civil Procedure.1908 (5 of 1908), when trying a suit, in respect of the following matters, namely,-
(a) enforcing the attendance of any person and examining him on oath or affirmation ;
(b) compelling the production of accounts and documents; and
(c) issuing commissions for the examination of witnesses, and any proceeding under this Act before the Commissioner or any person appointed under sub-section (2) of section 9 to assist him shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 and for the purposes of section 196 of the Indian Penal Code, (45 of 1860).
(2) Subject to any rules made in this behalf, any authority referred to in sub-section (1) may impound and retain in its custody for such period as it thinks fit any books of accounts or other documents produced before it in any proceedings under this Act :
PROVIDED that a person appointed under sub-section (2) of section 9 to assist the Commissioner shall not;-
(a) impound any books of accounts or other documents without recording his reasons for so doing ; or
(b) retain in his custody any such books or documents for a period exceeding thirty days, without obtaining the approval of the Commissioner therefor.
Section 43. Appeals
(1) Any person aggrieved by any order, not being an order mentioned in section 44 passed under this Act or the rules made thereunder, may appeal to the prescribed authority :
PROVIDED that where an order, not being an order mentioned in section 44 or made under section 47 is passed by the Commissioner, the person aggrieved may appeal therefrom to the Appellate Tribunal.
(2) The Commissioner or any person aggrieved by an order passed in appeal by the prescribed authority may appeal to the Appellate Tribunal against such order.
(3) Subject to the provisions of section 62, no appeal shall be entertained unless it is filed within sixty days from the date of service of the order appealed against.
(4) Every appeal filed under this section shall be in prescribed form and shall be verified in the prescribed manner and in the case of an appeal to the Appellate Tribunal filed by any person other than the Commissioner , shall be accompanied by a fee of fifty rupees.
(5) No appeal against an order of assessment with or without penalty or against an order imposing the penalty shall be entertained by an appellate authority unless such appeal is accompanied by a satisfactory proof of the payment of tax with or without penalty or, as the case may be, of the payment of the penalty in respect of which the appeal has been preferred :
PROVIDED that the appellate authority may, if it thinks fit, for reasons to be recorded in writing, entertain an appeal against such order-
(a) without payment of the tax and penalty, if any, or as the case may be, of the penalty, on the appellant furnishing in the prescribed manner security for such amount as it may direct, or
(b) on proof of payment of such smaller sum, with or without security for such amount of tax or penalty which remains unpaid, as it may direct :
PROVIDED FURTHER that no appeal shall be entertained by to appellate authority unless it is satisfied that such amount of tax as the appellant may admit to be due from him has been paid.
(6) The appellate authority may, after giving the appellant an opportunity of being heard,-
(a) confirm reduce, enhance or annual the assessment (including any penalty imposed), or
(b) set aside the assessment (including any penalty imposed) and direct the assessing authority to make a fresh assessment after such further inquiry as may be directed,or
(c) pass such order as it may think fit.
(7) Save as provided in section 45, an order passed by the Appellate Tribunal on appeal shall be final
Section 44. Non-appealable orders
No appeal and no application for revision shall lie against-
(a) a notice issued under this Act calling upon a dealer for assessment or asking a dealer to show cause as to why he should not be prosecuted for an offence under this Act ; or
(b) an order pertaining to the seizure or retention of books of accounts, registers and other documents ;or
(c) an order sanctioning prosecution under this Act ; or
(d) an interim order passed in the course of any proceedings under this Act.
Section 45. Statement of case to the High Court
(1) Within sixty days from the date of an order passed by the Appellate Tribunal under sub-sction (6) of section 43, the dealer or the Commissioner may, by application in writing, and accompanied, where the application is made by a dealer, by a fee of fifty rupees, require the Appellate Tribunal to refer to the High Court any question of law arising out of such order, and subject to the other provisions contained inthis section, the Appellate Tribunal shall, within one hundred and twenty days of the receipt of such application, draw up a statement of the case and refer it to the High Court :
Provided that the Appellate Tribunal may, if it is satisfied that the dealer or the Commissioner was prevented by sufficient cause from presenting the application within the period here-in-before specified, allow it to be presented within a further period not exceeding thirty days.
(2) If the Appellate Tribunal refuses to state the case which it has been required to do, on the ground that no question of law arises, the dealer or the Commissioner, as the case may be, may within thirty days of the communication of such refuse either withdraw his application (and if he does so, any fee paid shall be refunded), or apply to the High Court against such refusal.
(3) If upon receipt of an application under sub-section (2), the High Court is not satisfied as to the correctness of the decision of the Appellate Tribunal, it may require the Appellae Tribunal to state the case and refer it, and on receipt of such requisition, the Appellate Tribunal shall state the case and refer it accordingly.
(4) If the High Court is not satisfied that the statement in as case referred to it is sufficient to enable it to determine the question so raised thereby, the Court may refer the case back to the Appellate Tribunal for the purpose of making such additions thereto or alterations therein as it may direct in that behalf.
(5) The High Court upon the hearing of any such case shall decide the question of law raised thereby, and shall deliver its judgment thereon containing the grounds on which such decision is founded, and shall to the Appellate Tribunal a copy of such judgment under the seal of the Court and the signature of the Registrar, and the Appellate Tribunal shall dispose of the case accordingly.
(6) Where a reference is made to the High Court under this section, the costs [which shall not include the fee referred to in sub-section (1)] shall be in the discretion of the Court.
(7) The payment of the amount of tax and penalty (if any) due in accordance with the order of the Appellate Tribunal in respect of which an application has been made under sub-secion (1) shall not be stayed pending the disposal of such application or any reference made in consequence thereof but if such amount is reduced as a result of such reference, the excess tax paid shall be refunded in accordance with the provisions of section 30.
Section 46. Revision of orders prejudicial to revenue
(1) The Commissioner may call for and examine the record of any proceeding appointed under sub-section (2) of section 9 to assist him is erroneous in so far as it is prejudicial to the interests of revenue, he may, after giving the dealer an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment and penalty (if any) imposed or canceling the assessment and penalty (if any) imposed and directing fresh assessment
PROVIDED that a final order under this section shall be made before the expiry of five years from the date of the order sought to be revised.
Section 47. Revision of other orders
(1) In the case of any order other than an order referred to in section 44 or to which section 46 applies, passed by a person appointed under sub-section (2) of section 9 to assist him, the Commissioner may, either on his own motion or on an application filed in accordance with such rules as may be prescribed, call for the record of any proceeding under this Act in which any such order has been passed and may make such inquiry or cause such inquiry to be made and, subject to the provisions of this Act, may pass such orders thereon, not being an order prejudicial to the dealer, as he thinks fit :
PROVIDED that the Commissioner shall not revise any order under this subsection,-
(a) where an appeal against the order is pending before the appellate authority under section 43 ; or
(b) where, if such appeal lies, the time within which it may be filed has not expired ; or
(c) where in the case of the second appeal, the dealer has not waived his right of appeal.
(2) The Commissioner shall not on his own motion revise any order under this section after the expiry of two years from the date of the order sought to be revised.
(3) In the case of an application for revision under this section by the dealer, the application shall be made within two years from the date on which the order in question was communicated to him or the date on which he otherwise comes to know of it, whichever is earlier.
Section 48. Rectification of mistakes
(1) The Commissioner or any person appointed under sub-section (2) of section 9 to assist him, may at any time within two years from the date of any order passed by the Commissioner or by that person, as the case may be, on his own motion, rectify any mistake apparent from the record and shall within a like period rectify any such mistake which has been brought to his notice by any person affected by such order :
PROVIDED that no such rectification shall be made, if it has the effect of enhancing the tax or reducing the amount or refund, unless the Commissioner or the person appointed under sub-section (2) of section 9 to assist him, as the case may be, has given notice in writing to the person likely to be affected by the order to his intention to do so and has allowed such person a reasonable opportunity of being heard.
(2) The provisions of sub-section (1) shall apply to the rectification of a mistake by an appellate authority under section 43 as they apply to the rectification of a mistake by the Commissioner.
(3) Where any matter has been considered and decided in any preceding by way of appeal or revision relating to an order referred to in sub-section (1) or sub-section (2), the authority passing such order may, notwithstanding anything contained in any law for the time being in force, amend the order under sub-section (1) or sub-sectin (2), as the case may be, in relation to any matter other than the matter which has been so considered and decided.
(4) Where any such rectification has the effect of reducing the amount of the tax or penalty, the commissioner shall, in the prescribed manner, refund any amount due to such person.
(5) Where any such rectification has the effect of enhancing the amount of the tax or penalty, or reducing the amount of the refund, the Commissioner shall recover the amount due from such person in the manner provided for in Chapter V.
(6) Save as provided in the foregoing sub-sections, and subject to such rules as may be prescribed, any assessment made or order passed under this Act or the rules made thereunder by any person appointed under section 9 or by the Appellate Tribunal may be reviewed by such person or by the Appellate Tribunal, as the case may be, suo moto or upon an application made in that behalf.
(7) Before any order is passed under sub-section (6), which is likely to affect any person adversely, such person shall be given a reasonable opportunity of being heard.
Section 49. Determination of disputed question
(1) If any question arises, otherwise than in proceedings before a court, or before the Commissioner has commenced assessment or reassessment of a dealer under section 23 or section 24, whether for the purposes of this Act,
(a) any person, society, club or association or any firm or any branch or department of any firm is a dealer; or
(b) any particular thing done to any goods amounts to or results in the manufacture of goods within the meaning of that term as given in clause (h) of section 2; or
(c) any transaction is a sale, and if so, the sale price therefor; or
(d) any particular dealer is required to be registered; or
(e) any tax is payable in respect of any particular sale, or if the tax is payable, the rate thereof, the Commissioner shall, within such period as may be prescribed, make an order determining such question.
Explanation.- For the purposes of this sub-section, the Commissioner shall be deemed to have commenced assessment or reassessment of a dealer under section 23 or section 24, when the dealer is served with any notice by the Commissioner under section 23 or section 24, when the dealer is served with any notice by the Commissioner under section 23 or section 24, as the case may be.
(2) The Commissioner may direct that the determination shall not affect the liability of any person under this Act as respects any sale effected prior to the determination.
(3) If any such question arises from any order already passed under this Act or under the Bengal Finance (Sales Tax) Act, 1941, [Bengal] Act, VI of 1941], as then in force in Delhi, on such question shall be entertained for determination under this section; but such question may be raised in appeal against, or by way of revision of such order.
CHAPTER IX- Offences and Penalties
Section 50. Offences
(1) Whoever-
(a) holds, gives, produces or accepts a declaration under the second proviso to clause (a) of sub-section (2) of section 4, or under the first proviso to section 5, which he knows or has reason to believe to be false; or
(b) carries on business as a dealer without obtaining a certificate of registration as required under sub-section (1) of section 14 or sub-section (1) of section 17; or
(c) not being a registered dealer, represents when purchasing goods that he is a registered dealer; or
(d) being a registered dealer, represents when purchasing any goods or class of goods not covered by his certificate of registration, that such goods or class of goods are covered by such certificate; or
(e) fails to comply with the provisions of sub-section (5) of section20; or
(f) fails to submit any return as required by sub-section (2) of section 21 by the prescribed date or submits a false return ; or
(g) not being a registered dealer, collects any amount by way of tax under this Act or make any collection of such tax otherwise than in accordance with this Act or the rules made thereunder; or
(h) fails to keep a true account of the value of goods bought or sold by him as required by section 38, or fails when required so to do under that section, to keep any account or record of purchases or sales specified in any notice or notification referred to in that section; or
(i) fails or neglects to issue cash memorandum or bills as required under section 39; or
(j) knowingly maintains or produces incorrect accounts, registers or documents or knowingly furnishes incorrect information; or
(k) neglects to furnish any information required by section40; or
(l) refuses to comply with any requirements made of him under section 41 1[or section 41A]; or
(m) closes his places of business with a view to preventing inspection under section 41; or
(n) obstructs or prevents any officer making inspection, search or seizure under section 41; or performing any functions under section 64, as the case may be; or
(o) being the owner or person in charge of a goods vehicle fails, neglects or refuses to comply with any of the requirements contained in section 64; or
(p) aids or abets any person in the commission of any offence specified in clauses (a) to (o),
shall be punishable with rigorous imprisonment for a term which may extend to six months or with fine, or with both, and where the offence is a continuing one, with a daily fine not exceeding two hundred rupees during the period of the continuance of the offence :
PROVIDED that no prosecution for an offence under this Act shall be instituted in respect of the same facts in respects of which a penalty has been imposed under sub-section (6) of section 20, sub-section (6) of Section 23, section 55 section 56 or section 57:
PROVIDED FURTHER that a person shall not be deemed to have committed an offence under clause (b) if he had applied for registration under this Act in accordance with the provisions of sub-section (2) of section 14, or sub-section (2) of section 17, as the case may be.
(2) Notwithstanding anything contained in sub-section (1), if any person commits an offence under clause (a) or clause (f) or clause (j) or clause (l) or clause (m) or clause (o) of that sub-section and the court is satisfied that the offence has been committed willfully, he shall be punishable with rigorous imprisonment for a term which may extend to six months and with fine, and where the offence is a continuing one, with a daily fine not exceeding three hundred rupees during the period of the continuance of the offence.
Section 51. Offences by companies
(1) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
PROVIDED that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of or that the commission of the offence is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
Explanation – means a body corposes of this section,-
(a) “company” means a body corporate, and includes a firm or other association of individuals; and
(b) “director”, in relation to a firm, means a partner in the firm.
Section 52. Cognizance of offences
(1) No court shall take cognizance of any offence under this Act or rule made thereunder except with the previous sanction of the Commissioner, and no court inferior to that of a Metropolitan Magistrate shall try any such offence.
(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973(2 of 1974), all offences punishable under this Act or rules made thereunder shall be cognizable and bailable
Section 53. Investigation of offences
(1) Subject to such conditions as may be prescribed, the Commissioner may authorise either generally or in respect of a particular case or class of cases any person appointed under sub-section (2) of section 9 to assist him to investigate all or any of the offences punishable under this Act.
(2) Every person so authorised shall, in the conduct of such investigation, exercise the powers conferred by the Code of Criminal Procedure, 1973 (2 of 1974), upon an officer in charge of a police station for the investigation of a cognizable offence.
Section 54. Composition of offences
(1) Subject to such conditions as may be prescribed, the Commissioner may accept, from any person alleged to have committed an offence under section 50 or under any rules made under this Act, either before or after the commencement of the proceedings against such person in respect of such offence, by way of composition for such offence, a sum not exceeding five thousand rupees or where the offence alleged to have been committed is under any of the clauses (a), (b), (c), (d) and (f) of that section, not exceeding three time the amount of tax which would thereby have been avoided, whichever is higher.
(2) On payment in full of such sum as may be determined by the Commissioner under sub-sedtion (1);
(a) no proceedings shall be commenced against such person as aforesaid; and
(b) if any proceedings have already been commenced against such person as aforesaid, such proceeding shall not be further proceeded with.
Section 55. Imposition of penalty
(1) If a dealer fails without reasonable cause to furnish any return by the prescribed date as required under sub-section (2) of section 21, or to pay the tax due according to the return as required under sub-section (3) of that section, the Commissioner may after giving the dealer an opportunity of being heard, direct that the dealer shall pay, by way of penalty in addition to the amount of tax payable, a sum not exceeding twice that amount or where no tax is payable a sum not exceeding two thousand rupees.
(2) The penalties specified under sub-section (1) may be imposed by the Commissioner notwithstanding the fact that assessment proceeding have not been initiated against the dealer under section23.
Section 56. Penalty for concealment of sales or furnishing inaccurate particulars or making false representations
(1) If the Commissioner or any person appointed under sub-section (2) of section 9 to assist him, in the course of any proceedings under this Act, is satisfied that a dealer has concealed the particulars of his sales or has furnished inaccurate particulars of his sales, he may, after giving the dealer a reasonable opportunity of being heard, direct that the dealer shall pay, be way of penalty, in addition to the amount of tax payable, a sum not exceeding two and a half times the amount of tax which would thereby have been avoided.
(2) If a person commits an offence under clause (a) of section 50, the Commissioner or any person appointed under sub-section (2) of section 9 to assist him may, after giving that person a reasonable opportunity of being heard, by order in writing, impose upon such person by way of penalty, a sum not exceeding two and a half time the amount of tax which would thereby have been avoided.
(3) If a person purchasing goods commits an offence under clause (c) or cause d) of section 50, the authority which granted him, or as the case may be, is competent to grant him a certificate of registration under this Act, may, after giving him reasonable opportunity of being heard, by order in writing impose upon him by way of penalty, a sum not exceeding two and a half time the tax which would have been levied under this Act in respect of the sale to him of the goods, if the offence had not been committed.
Section 57. Penalty for contravening provision regarding collection of tax by dealers
(1) If a person acts in contravention of the provisions of section 22, he shall be liable to a penalty not exceeding two and half times the tax wrongly collected :
PROVIDED that the Commissioner shall not impose such penalty unless the person concerned has been given an opportunity of being heard.
Section 58. Service of notice when family is disrupted or firm is dissolved
(1) Where a Hindu undivided family has been partitioned, notices under this Act shall be served on the person who was the last manager of the Hindu family, or if such person cannot be found, then on all adults who were members of the Hindu family, immediately before the partition.
(2) Where a firm or an association of persons is dissolved notices under this Act may be served on any person who was a partner (not being a minor) of the firm, or member of the association, as the case may be, immediately before its dissolution.
Section 59. Service of notice in the case of discontinued business
Where an assessment is to be made in respect of business which has been discontinued, a notice under this Act shall be served in the case of a firm or an assoiciation of persons or any person who was a member of such firm or association at the time of its discontinuance or in the case of a company on the principal officer thereof.
CHAPTER X- Miscellaneous
Section 60. Appearance before any authority in proceedings
(1) Any person, who is entitled or require to attend before any authority in connection with any proceedings under this Act, may attend, –
(a) by a person authorised by him inwriting in his behalf, being a relative of a person regularly employed by him; or
(b) by the legal practitioner or chartered accountant who is not disqualified by or under sub-section(2); or
(c) by a sales tax practitioner who possesses the prescribed qualifications and is entered in the list, which the commissioner shall maintain in that behalf, who is not disqualified by or under sub-section (2).
(2) The commissioner may, by order in writing and for reasons to be recorded therein, disqualify for such period as is stated in the order from attending before any such authority, any legal practitioner , chartered accountant or sales tax practitioner;
(i) who has been dismissed from Government service; or
(ii) who being a legal practitioner or chartered accountant is found guilty of misconduct in connection with any proceedings under this Act by an authority empowered to take dusciplinary action against the members of the profession to which he belongs; or
(iii) who being a legal practitioner is found guilty of such misconduct by the Commissioner.
(3) No order of disqualification shall be made in respect of any particular person unless he has been given a reasonable opportunity of being heard.
(4) Any person against whom any order of disqualification is made under this section may, within one month of the date of communication of such order, appeal to the 1[Lieutenant Governer] to have the order cancelled.
(5) The order of the Commissioner shall not take effect until one month of the making thereof or when an appeal is preferred, until the appeal is decided.
(6) The commissioner may at any time suo moto or on application made to him in this behalf, revoke any order made against any person under sub-section (2) and there uponsuch person shall cease to be disqualified.
1. Inserted vide Delhi Sales Tax (Second Amendment) Act, 2000, dt. 19.2.2001 w.e.f. 19.2.2001
Section 61. Change of an incumbent of an office
(1)Whenever in respect of any proceeding under this Act the Commissioner or any person appointed under sub-section (2) of section 9 to assist him, ceases to exercise jurisdiction and is succeeded by another who has and exercises jurisdiction, the person so succeeding may continue the proceeding was left by his predecessor :
(1)PROVIDED that the dealer concerned may demand that before the proceeding is so continued, the previous proceeding is so continued, the previous proceeding or any part thereof be reopened or that before any order of assessment is passed against him, he be reheard.
Section 62. Extension of period of limitation in certain cases
(1) An appellate authority may admit an appeal under section 43 after the period of limitation laid down in that section, if the appellant satisfies the appellate authority that he had sufficient cause for not preferring the appeal within such period.
(2) In computing the period laid down under sections 43,45,46 and 47, the provisions of sections 4 and 12 of the Limitation Act, 1963 (36 of 1963), shall, so far as may be, apply.
(3) In computing the period of limitation prescribed by or under any provision of this Act, or the rules made thereunder, other than sections 43,45,46 and 47, any period during which any proceeding is stayed by an order or injunction of any court shall be excluded.
CHAPTER X- Miscellaneous
Section 63. Returns, etc. to be confidential
(1) All particulars contained in any statement made, return furnished or accounts or documents produced in accordance with this Act, or in any record of evidence given in the course of any proceedings under this Act, other than this proceedings before a criminal court, shall save as provided in sub-section (3), be treated as confidential, and notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872), no court shall , save as aforesaid, be entitled to require any servant of the Government to produce if any such statement, return, account, document or record or any part thereof, or to give evidence before it in respect thereof.
(2) If, save as provided in sub-section (3), any servant of the Government discloses any of the particulars referred to in sub-section (1), he shall be punishable with imprisonment which may extend to six months, and shall also be liable to fine.
(3) Nothing in this section shall apply to the disclosure –
(a) of any of the particulars referred to in sub-section (1) for the purposes of investigation or prosecution under this Act or the Indian Penal Code (45 of 1860) or any other enactment for the time being in force; or
(b) of such facts to an officer of the Central Government or any State Government as may be necessary for verification of such facts or for the purposes of enabling that Government to levy to realise any tax imposed by it; or
(c) of any of the particulars where such disclosure is occasioned by the lawful employment under this Act of any process for the service of any notice or recovery of any demand ; or
(d) of any of the particulars to a civil court in any suit or proceeding to which the Government or any sales tax authority is a party and which relates to any matter arising out of any proceeding under this Act or under any other law for the time being in force authorising any sales tax authority to exercise any powers thereunder; or
(d) of any such particulars to a civil court in any suit or proceeding to which the Government or any sales tax authority is a party and which relates to any matter arising out of any proceeding under this Act or under any other law for the time being in force authorising any sales tax authority to exercise any powers thereunder ; or of any such particulars by any public servant where the disclosure is occasioned by the lawful exercise by him of his powers under the Indian Stamp Act, 1899 (2 of 1899) to impound an insufficiently stamped document ; or
(f) of any such particulars to the Reserve Bank of India as are required by that Bank to enable it to compile financial statistics of international investment and balance of payment ; or
(g) of any such particulars to any officers appointed by the controller and Auditor-General of tax receipts or refunds ; or
(h) of any such particulars relevant to any inquiry into a charge of misconduct in connection with income-tax proceedings against a legal practitioner or chartered accountant, to the authority empowered to take disciplinary action against members of the profession to which he belongs ; or
(i) of such particulars to the officers of the Central Government or any State Government for such purposes, as the 2[Lieutenant Governer] may by general or special order direct.
2. Subs. for “Administrator” by Delhi Act 1 of 1998, w.e.f. 2.3.1998.
Section 64. Setting upof check-post and barriers
(1) the 3[Lieutenant Governer] may , by notification in the Official Gazette, setup check-posts or barriers, or both, at any place in Delhi with a view to preventing evasion of tax and other dues payable under this Act.
(2) The owner or person in charge of a goods vehicle shall carry with him a goods vehicles record, a trip sheet or a log book, as the case may be and a bill of sale or delivery note containing such particulars as may be prescribed in respect of the goods vehicle and produce the same before any officer in charge of check post or barrier or any other officer as may be empowered by the 4[Lieutenant Governer] in this behalf.
(3) The owner or person in charge of goods vehicle entering or leaving Delhi shall also file a declaration containing such particulars in the prescribed form obtainable from the prescribed authority and in such manner as may be prescribed, before the officer incharge of a check-post or barrier or before the other officer empowered as aforesaid:
PROVIDED that where the owner or person in charge of a goods vehicle after filing a declaration at the time of entering Delhi that the goods are meant to be carried toa place outside Delhi, fails, without reasonable cause, to carry such goods outside Delhi within the prescribed period, he shall, in addition to the payment of tax, if any, be liable to a penalty not exceeding two and a half times the tax that would have been payable had the goods been sold inside Delhi or one thousand rupees, whichever is more.
(4) At every check-post or barrier, or at any other place when so required by an officer empowered by the 5[Lieutenant Governor] in this behalf, the driver or any other person in charge of a goods vehicle shall stop the vehicle and keep it stationary so long as may be required by the officer in charge of the check-post or barrier or the officer empowered as aforesaid to search the goods vehicle or part thereof, examine the contents therein and inspect all records relating to the goods carried, which are in the possession of such driver or other person in charge, who shall, if so required, give his name and address and, the name and address or the owner of the vehicle as well as those of the consignor and consignee of the goods.
6[(5) If on an examination of the contents in a goods vehicle or the inspection of records relating to the goods carried, any officer empowered by the lieutenant Governer in this behalf has reason to believe that the owner or person in charge of such goods vehicle is not carrying the documents as required by sub-section (2) or is not carrying proper and genuine documents or is attempting to evade payment of the tax under this Act, he may, for reasons to be recorded in writing and after hearing the owner or person in charge of goods vehicle, detain the goods or impound the goods vehicle along with the goods and documents relating to the goods and the goods vehicle:
PROVIDED that the goods vehicle, the goods or the documents so impounded or detained may be alllowed to be released in case the owner or his agent or the person in charge of the goods vehicle requests for the time to adduce further evidence in respect of goods ordered to be detained or impounded subject to furnishing of security to the satisfaction of such officer in such form and in such manner as may be prescribed for an amount of tax payable, if such goods were sold in Delhi:
PROVIDED FURTHER that where the owner or his agent or person in charge of the goods vehicle exercises the option of paying by way of penalty a sum equal to three and a half times the tax, which in the opinion of the officer so empowered, would be leviable on such goods, if such goods were sold in Delhi, the officer empowered in this behalf instead of detaining or impounding the goods vehicles shall release the same.
(5A) Where the goods are being carried without the documents or without proper and genuine documents or without being properly accounted for in the documents referred to in sub-section (2) of this section, the Commissioner or the officer so empowered by the lieutenant Governer in this behalf, may levy a penalty not exceeding three and a half times the amount of tax payable on such goods after giving reasonable opportunity of being heared to the person likely to be effected, against the proposed penalty.
(5B) An officer empowered by the lieutenant Governer in this behalf to act under sub-section (5), may, in this discretion, permit the owner or person in charge of goods detained under sub-section (5) subject to an undertaking given by the owner or person incharge of goods vehicle-
(i) that the goods shall be kept in the office, godown or other place within Delhi, belonging to the owner of the goods vehicle and in the custody of such owner,
(ii) that the goods shall not be delivered to the consignor, consignee or any other person without orders in writing of the said officer, and for this purpose the person in charge of the goods vehicle shall furnish an authorization from the owner of the goods vehicle authorizing him to give such undertaking on his behalf.]
(6) Where the security required to be furnished under sub-section (5) is not furnished within the prescribed period such goods shall be disposed of in such manner and subject to such conditions as may be prescribed.
Explanation:- For the purposes of this section, “goods vehicle” shall include a motor vehicle, vessel, boat, animal, and any other form of conveyance.
Section 65. Publication of names, etc of dealers whose certificates of registration are cancelled
The Commissioner shall, at intervals not exceeding three months, publish in the Official Gazette such particulars as may be prescribed the dealers whose certificate of registration are cancelled under the provision of this Act.
CHAPTER X- Miscellaneous
Section 66. Exemptions
(1) If the 1[lieutenant Governer] is of opinion that it is necessary or expedient in the public interest so to do, he may 2[***], exempt, by notification in the Official Gazette, and subject to such conditions, if any impose specified class of sales by any specified class of dealers from payment of the whole or any part of the tax payable under this Act.
(2) If inrespect of any sales which are exempt from payment of tax under sub-section (1), a breach of any of the conditions subject to which such exemption was granted is committed, the dealer is responsible for such breach shall be liable to pay tax in respect of all such sales as if no such exemption had been granted.
1. Subs. for “Administrator” by Delhi Act 1 of 1998, w.e.f. 2.3.1998.
2. Words “with the previous approval of the Central Government” were deleted by Delhi Act 1 of 1998, w.e.f. 2.3.1998
Section 67. Bar of suits in civil courts
(1) No suit shall be brought in any civil court to set aside or modify any assessment made or any order passed under this Act or the rules made thereunder and no prosecution, suit or other proceeding shall lie against the Government or any officer of the Government for anything in good faith done or intend to be done under this Act or the rules made thereunder.
Section 68. Transfers during pendency of proceedings void
Where, during the pendency of any proceedings under this Act, any person creates a charge on or parts with the possession by way of sale, mortgage, gift or exchange or any other mode of transfer whatsoever, of any of his assets in favour of other person, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by such person as a result of the completion of the said proceedings.
Section 69. Chapter XXXVI of the Code of Criminal Procedure, 1973, not to apply to certain offences
Nothing in Chapter XXXVI, of the Code of Criminal Procedures, 1973 (2 of 1974) shall apply to –
(i) any offence punishable under this Act ;or
(ii) any other offence which under the provisions of that Code may be tried along with such offence reffered to in clause (i) or clause (ii) may be taken cognizance of by the court having jurisdiction under this Act as if the provisions of that Chapter were not enacted. 70. Application of the provisions of the Delhi Land Reforms Act, 1954 for purposes of recovery of sales tax recoverable as arrears of land revenue
For the purposes of recoverable as arrear of land revenue under this Act, the provisions of Delhi Land Reforms Act, 1954, as to recovery of arrears of land revenue shall notwithstanding anything contained in that Act or in any other enactment, be deemed to be in force throught Delhi and the provisions of the Revenue Recovery Act, 1890 (1 of 1890) shall have effect accordingly.
CHAPTER X- Miscellaneous
Section 71. Power to make rules
(1) The 1[Lieutenant Governer] may make rules for carrying out the purposes of this Act.
(2) In particulars and without prejudice to the generality of the for going power, such rules may provide for, –
(a) the further period after the date of expiry of three consecutive years referred to in sub-section (3) of section 3 for which liability to pay tax of dealer shall continue ;
2[(b)the particulars to be contained in a declaration under sub-clause (v) of clause (a) of sub-section (2) of section 4, or under section 5, as the case may be, the form of such declaration, the authority from whom and the manner and conditions subject to which such forms shall be obtainable and the manner in which and the time within which such declaration is to be furnished ;]
(c) the period of turnover, the manner in which the turnover in relation to sale of any goods under this Act shall be determined and the sales turnover which may be deducted under sub-clause (vi) of clause (a) of sub-section (2) of section 4 ;
(d) the restrictions and conditions subject to which the Commissioner may delegate his powers under section 10
(e) the authority to whom applications for registration under section 14,15,16 and 17 may be made and the form of such applications and the fees payable in respect thereof ;
(f) the procedure for and other matters incidential to registration of dealers, the granting of certificates of registration, the period within which such certificates shall be granted and the forms of such certificates ;
(g) the intervals at which, and the manner in which, the tax under this Act hall be payable under section 21 ;
(h) the returns to be furnished under sub-section (2) of section 21 and the dates by which, and the authority to whom, such returns shall be furnished;
(i) the procedure to be followed for assessment under section 23;
(j) the circumtances in which, and the conditions subject to which, a dealer may be permitted to pay a lump sum by way of composition under section 29 and the manner of determining such sum;
(k) the form in which claims for refund or set-off may be preferred, the manner in which such claims for refund shall be verified and the refunds or set-off under this Act shall be allowed ;
(l) the authority to whom information shall be furnished under section 40 ;
(m) the conditions under which the production of accounts or documents of accounts or the furnishing of information may be required under sub-section (1) of section 41 ;
(n) the form and manner in which, and the authority to whom, appeals against assessment may be filed under section 43, the manner in which such appeals shall be verified and the fees payable in respect thereof and the procedure, to be followed by the authority ;
(o) the form and the manner in which applications for revision under section 47 or for review under sub-section (5) of section 48 may be filed and the fee payable in respect thereof ;
(p) the conditions subject to which the Commissioner may authirise the persons appointed under sub-section (2) of section 9 to assist him to investigate offences under sub-section (1) of section 53
(q) the conditions under which offences may be compounded under section 54 ;
(r) the manner in which, and the time within which, applications shall be made (including fees payable in respect thereof), information furnished, securities given and notices served under this Act ;
(s)any other matter which is required to be, or may be, prescribed.
(3) Any rules made under this Act may provide that a contravention thereof shall be punishable with fine which may extend to five hundred rupees, and in the case of a continuing contravention, with an additional fine which may extend to twenty-five rupees for every day during which such contravention continues after conviction for the first such contravention.
1. Subs. for “Administrator” by Delhi Act 1 of 1998, w.e.f. 2.3.1998.
2. Substituted by Delhi Sales Tax (Second Amendment) Act, 2000, dt.19.2.2001 w.e.f. 19.2.2001, earlier read as : “the particulars to be contained in a declaration under sub-clause (v) of clause (a) of sub sub-section (2) of section 4, or under sub section 5, as the case may be, the form of such declaration, the authority from whom such forms shall be obtainable and the manner in which and the time within which such declaration is to be furnished ;”.
CHAPTER X- Miscellaneous
Section 72. Rules to be laid before Legislative Assembly
Every rule made under this Act shall be laid, as soon as may be after it is made before the Legislative Assembly of the 1[National Capital Territory of Delhi], while it is in session for a total period of thirty days which may be comprised in one session or two or more successive sessions or the successive sessions aforesaid, 2[the House agrees in making any modification in the rule or the House agrees] that the rule should not be made, the rule shall have effect only in such modified form or be of no effect, as the case may be; so however, that any such modification or annulment without prejudice to the validity of anything previously done under that rule.
1. Subs. for “Union Territory” by Delhi Act 1 of 1998, w.e.f. 2.3.1998.
2. Subs. for “both Houses agree in making any modification in the rule or both Houses agree” by Delhi Act 1 of 1998, w.e.f. 2.3.1998
CHAPTER X- Miscellaneous
Section 73. Repeal and savings
(1) The Bengal Finance (Sales Tax) Act, 1941, (Bengal Act VI of 1941 ) as in force in Delhi (here in after referred to as the said Act), is hereby repealed.
PROVIDED that such repeal shall not effect the previous operation of the said Act or any right, title, obligation or liability already acquired, accrued or incurred thereunder and subject there to, any thing done or any action taken including any appointment, notification, notice, order, rule, form or certificate in the exercise of any power conferred by or under the said Act shall be deemed to have been done or taken in the exercise of the powers conferred by or under this Act, as if this Act were in force on the date on which such thing was done or action was taken, and all arrears of tax and other amounts due at the commencement of this Act may be recovered as if they had accures under this Act.
(2) Any application for revision pending immediately before the date on which the Appellate Tribunal is constituted under section 13 (hereafter in this section referred to as the notified date), before the Commitioner under the Bengal Finance (Sales Tax) Act, 1941, (Bengal Act VI of 1941) as in force in the 1[National Capital Territory of Delhi], shall on such date stand transferred to, and be disposed of by the Tribunal :
PROVIDED that no application for revision shall be transferred to the Appellate Tribunal if the petitioner making the application for revision waives his right of appeal to the Tribunal if the petitioner making the application for revision waives his right of appeal to the Tribunal within fifteen days after the notified date, in which case the application for revision shall be disposed of by the Commissioner as if it were an application for revision made under section 47.
(3) Any application for revision, pending immediately before the notified date, before the Commissioner and transferred to the Appellate Tribunal under sub-section (2) shall be disposed of by the Appellate Tribunal as if it were an appeal made under and in accordance with the provisions of section 43 of this Act.
(4) Where an appeal against an order passed by an officer under this Act lies to the Appellate Tribunal after the notified date, and the period of limitation specified for filing such appeal under this Act has not expired, then , such appeal shall lie to the Tribunal within thirty days of the notified date or within the expiry of the period of limitation specified for filing such appeal, whichever is later.
1. Subs. for “Union Territory” by Delhi Act 1 of 1998, w.e.f. 2.3.1998
Section 74. Removal of difficulties
(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by general or special order published in the Official Gazette,make such provisions not inconsistent with the provision of this act as appear to it to be necessary or expedient for the removal of the difficulty:
PROVIDED that no such order shall be made after the expiration of one year from the commencement ofthis Act.
(2) Every order made under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which will be comprised in one session or in two of more successive sessions, and if, before the expiry of the session immediately following the session or successive aforesaid, both Houses agree in making any modification in the order or both Houses agree that the order should not be made, the order shall thereafter have effect only in such modified form or to be no effect, as the case may be ; so, however, that any such modification or annulment shallbe without prejudice to the validity of anything previously done under that order
Section 75. Transitional provisions
Where a dealer liable to pay tax under the Bengal Finance (Sales Tax) Act, 1941, (Bengal Act, VI of 1941) as in force in Delhi immediately before the commencement of this Act is not liable to pay tax under the provisions of this Act, he shall, notwithstanding the repeal of the first mentioned Act, continue to be liable to pay tax on the sales made by him after such commencement of all goods –
(i) purchased by him before such commencement,
(ii) manufactured by him before or after such commencement out of raw material purchased before such commencement.
THE FIRST SCHEDULE
[Notification No. F.4(52)/99-Fin.(G)(i) dated 15.01.2000 and Notification No. F.4(52)/99-Fin.(G)(ii) dated 15.01.2000 w.e.f. 16.01.2000,
as amended from time to time]
| S.N. |
Name of the goods |
| 1. |
Motor vhicles including chassis of motor vehicles and motor bodies, but not including tractors, tyres, tubes, accessories, component parts and spare parts of motor vehicles
1[***] |
| 1-A. |
2[Motor cycles, motor cycle combinations, motor scooters, motorettes, two wheelers and three wheelers] |
| 2. |
| (a) |
Refrigerators. |
| (b) |
Air-conditioning and other cooling appliances and apparatus including room coolers and water coolers |
| (c) |
All kind of cooking appliances, cooking ranges, microwve ovens and grills |
| (d) |
Vacuum cleaners, electrical and electronic air purifiers and dish washers |
| (e) |
Television sets 3[***], video cassette recorders, video cassette players, CD players, home-theaters and video camera |
| (f) |
Washing machines |
| (g) |
4[Room Air Convectors] and air circulators |
| (h) |
Voltage stablizers, 5[6(***), Incerters] and transformers |
| (i) |
Transmission towers, 7[***] |
| (j) |
Electronic toys and games 8[***] |
| (k) |
9[Video-CD and CVD players] |
| (l) |
10[ACSR Conductors] |
|
| 3. |
Telecommunication equipments including telephones, tele-printers, wireless equipment and fax machines 11[but excluding mobile phone hand sets] |
| 4. |
Cinematographic equipments including cameras projectors and sound recording and reproducing equipments and spare partas, component parts and accessories required for use therewith and lenses, films and cinema carbons |
| 5. |
All clocks, time pieces, watches, electrical time switches and mechanical timers and component parts, spare part and accessories thereof |
| 6. |
All arms including rifles, revolvers pistols and ammunition for the same and component parts and accessories thereof |
| 7. |
Cigarette eases and lighters |
| 8. |
Typewriters, tabulating, calculating cash registeing, indexing, card punching, franking and addressing machines, tele-printers, duplicating machines and photocopying machines, component parts, spare parts and accessories thereof |
| 9. |
Binoculars, telescopes and opera glasses and component parts, spare parts and accessories thereof |
| 10. |
All type of cutlery including knives, forks and spoons |
| 1112. |
| a. |
All goods made of glass including glassware, but not including glass bangles and optical lenses. |
| b. |
Utensils, kitchenware and tableware made of glass or china clay. |
| c. |
Glazed earthenware. |
| d. |
Chinaware including crockery |
|
| 12. |
Vacuum flask of all kind (including thermos, thermic jugs, ice buckets or boxes urns and other domestic receptacles to keep food or beverages hot or cold) and refills therof |
| 13. |
Picnic set sold as a single unit |
| 14. |
Iron and steel safes and almirahs |
| 15. |
| (a) |
Light Diesel oil/high speed Diesel |
| (b) |
Kerosene oil sold through modes other than fair price shops |
|
| 16. |
Cosmetics, perfumery and toilet goods including soaps, shampoos, and hair oils but not including tooth brush, toothpaste, tooth powder and kumkum |
| 17. |
Leather goods, excepting footwear, belts and sports articles made of leather |
| 18. |
Furniture including iron and steel and moulded furniture, but excluding wooden furniture |
| 19. |
Cushion and mattresses of foam, including foam sheets, pillows and other articles made from foam rubber, or plastic foam or other synthetic foam |
| 20. |
Furs and skins with fur and articles made therefrom including garments made therof |
| 21. |
Articles made of stainless steel excluding safety razor blades and surgical instruments or parts of industrial machinery and plant, Utensils, kitchenwares and Table wares made up of stainless steel |
| 22. |
Plastic, PVC, celluliod, bakelite and rubber goods and goods made of similar other substances, but not including domestic goods having maximum retail price inclusive of all taxes upto two hundred rupees per item |
| 23. |
Fireworks including coloured matches |
| 24. |
Lifts and elevators of all kinds |
| 2513. |
| a. |
All types of glazed of glazed & vitrum tiles, mosaic tiles and ceramic tiles. |
| b. |
All types of laminated sheets such as Sunmica Formica etc |
|
| 26. |
Carpets of all kinds |
| 27. |
Weatherproofing compounds |
| 28. |
Ivory articles |
| 29. |
14[***] |
| 30. |
All kinds of marble, granite and their tiles |
| 31. |
Sandalwood and Oil thereof |
| 32. |
15[***] |
| 33. |
Meat, Fish, fruits and Vegetables when sold in preserved form |
| 34. |
Silk and garments made of silk, 16[***] |
| 35. |
Musical Instruments |
| 36. |
Synthetic Gems |
| 37. |
Spark Plugs |
| 38. |
Adhesives |
| 39. |
17[***] |
| 40. |
Oxygen and Gases |
| 41. |
Aeronautics, including aeroplanes, ground equipments, their accessories and parts |
| 42.18 |
[***] |
| 43.19 |
All tupes of Sanitary goods, Sanitary wares and fittings |
| 44.20 |
Paints and Colours |
| 45. |
21[***] |
| 46.22 |
Pan Masala and Gutkha |
| 47.23 |
All kinds of preserved food articles when sold in sealed containers |
| 48.24 |
Lubricants including all kinds of non petroleum lubricants |
| 49.25 |
Imported Vanaspati |
| 1 |
Omitted vide Notification No.F.4(52)/99-Fin(G)/47 dt. 12.5.2000 w.e.f. 15.5.2000; earlier inserted vide Notification No. F.4(52)/99 – Fin.(G)/1576 dated 24.01.2000 w.e.f. january 25,2000 and read as: Explanation-Motor vehicles shall include motor cycles, motor cycle combination, motor scooters, motorettes, two-wheelers and three wheelers. |
| 2 |
Inserted vide Notification No. F.4(52)/99-Fin(G)/47 dt. 12.5.2000 w.e.f. 15.5.2000 |
| 3 |
Omitted vide Notification No.F.4/8/2000 Fin.(E-1)(i)/564 dt. 22.8.2000 w.e.f. 22.8.2000 earlier inserted w.e.f. April 1, 2000 and read as: “but not including black and white television sets.” |
| 4 |
Substituted for “Fan” vide Notification No. F.4(52)/99-Fin.(G)/1576 dt. 24.01.2000 w.e.f. 25.01.2000. |
| 5 |
Inserted vide Notification No. F.4(52)/99-Fin(G)/1576 dt. 24.01.2000 w.e.f. 25.01.2000. |
| 6 |
Omitted the words “Un-interrupted Power Supply” vide Notification No.F.101(69)/2001-FIN.(A/Cs)/2271/78 dated 31st August 2001 w.e.f. of 1st September 20001. |
| 7 |
Words “Transmission wires” , ACSR conductors and cables” omitted vide Notification No.F.4(52)/99-Fin.(G)/1576 dated 24.01.2000 w.e.f January 25,2000. |
| 8 |
Omitted vide Notification No. F.4/8/2000 Fin(E-1)(i)/564 dt. 22.8.2000 w.e.f 22.8.2000 earliar inserted w.e.f. 16.1.2000 and read as: “having maximum retail price greater than or equal to [two hundred fifty rupees] per piece excluding manufactured indigenously”. Earlier rupees “two hundreds” were substituted with “two hundred fifty rupees per piece” vide Notification No. F.4(75)/99-Fin.(G) dated 31.03.2000 w.e.f. 01.03.2000. |
| 9 |
Inserted vide Notification No. F.4(52)/99-Fin(G)/1576 dt. 24.01.2000 w.e.f. 25.01.2000. |
| 10 |
Inserted vide Notification No. F.4/8/2000 Fin.(E-1)(i)/564 dt.22.8.2000. |
| 11 |
Inserted vide No. F.101(112)/2002-Fin.(A/Cs)/(vi)/318-27 dt. 24.4.2002 w.e.f. 24.4.2002. |
| 12 |
Substituted for “All goods made of glass, including glassware, but not including glass bangles, utensils, kitchenware and table ware made of glass” vide Notification No. F.4(52)/99-Fin.(G)/1576 dated 24.01.2000 w.e.f. January 25, 2000. |
| 13 |
Substituted for “All types of glazed and vitrum tiles mosaic tiles, laminated sheets like Suncica, Formica etc. “”vide Notification No. F.4(52)/99-Fin.(G)/1576 dt. 24.1.2000 w.e.f. 25.1.2000. |
| 14 |
Words “Aerated drinks” omitted vide No. F.4(75)/99-Fin.(G) dt. 31.03.2000 w.e.f. 1.4.2000. |
| 15 |
Words “Dry Fruits including roasted and fried” omitted vide Notification No. F.4(52)/99-Fin.(G)/1576 dated 24.01.2000 w.e.f. January 25, 2000. |
| 16 |
Words “Silk fabrics” omitted vide No. F.4(75)/99-Fin.(G) dt. 31.03.2000 w.e.f. 1.4.2000. |
| 17 |
Words “Asphaltic Roofing” omitted vide No. F.4(52)/99-Fin.(G)/1576 dt. 24.1.2000 w.e.f. 25.1.2000. |
| 18 |
The words “Imported toys of all kinds” inserted vide Notification No. F.4(52)/99-Fin.(G)/1576 dated 24.01.2000 w.e.f. January 25, 2000 and later omitted vide Notification No.F.101(88)/2001-Fin(a/cs)3108-16 dated 25th October 2001. |
| 19 |
Inserted vide Notification No. F.4(52)/99-Fin.(G)/1576 dated 24.01.2000 w.e.f. 25.1.2000. |
| 10 |
Inserted vide Notification No. F.4(52)/99-Fin.(G)/1576 dated 24.01.2000 w.e.f. 25.1.2000. |
| 21 |
Words “Tyres and tubes of all kinds” omitted vide Notification No. F.4(75)/99-Fin.(G) dt. 31.3.2000. w.e.f. 1.4.2000; earlier inserted vide No. F.4(52)/99-Fin.(G)/1576 dt. 24.1.2000 w.e.f. 25.1.2000. |
| 22 |
Inserted vide Notification No. F.4(75)/99-Fin.(G) dated 31.3.2000 w.e.f. 1.4.2000. |
| 23 |
Inserted vide Notification No. F.4/8/2000 Fin.(E-1)/564 dated 22.8.2000 w.e.f. 22.8.2000. |
| 24 |
Inserted vide No. F.101(112)/2002-Fin.(A/Cs)/(vi)/318-27 dt. 24.4.2002 w.e.f. 24.4.2002. |
| 25 |
Inserted vide No. F.101(112)/2002-Fin.(A/Cs)/(vi)/318-27 dt. 24.4.2002 w.e.f. 24.4.2002. |
THE SECOND SCHEDULE
[Notification No. F.4(52)/99-Fin.(G)/1519 dated 15.01.2000 and Notification No. F.4(52)/99-Fin.(G)(iv) dated 15.01.2000 w.e.f. 16.01.2000, as amended from time to time]
| S.N. |
Name of the goods |
| 1. |
Coal including coke in all its forms |
| 2. |
Cotton as defined in section 14 of the Central Sales Tax Act, 1956 (74 of 1956) |
| 3. |
Iron and steels as defined in section 14 of the Central Sales Tax Act, 1956 (74 of 1956) |
| 4. |
Jute as defined in section 14 of the Central Sales Tax Act, 1956 (74 of 1956) 1 [and jute products] |
| 5. |
Oil seeds as defined in section 14 of the Central Sales Tax Act, 1956 (74 of 1956) |
| 6. |
Hides and skins, whether in a raw or dressed state |
| 7. |
Cotton yarn, but not including cotton yarn waste, as defined in section 14 of the Central Sales Tax Act, 1956 (74 of 1956) |
| 8. |
Crude oil as defined u/s 14 of Central Sales Tax Act, 1956 (74 of 1956) |
| 9. |
Imported sugar in all forms |
| 10. |
Imported textiles and fabrics in all forms |
| 11. |
All kinds of edible oils, hydrogenated vegetable oil 2 [(vanaspati ghee but not including imported Vanaspati)] and gingili oil |
| 12. |
Vegetable solvent oils and Bran oil |
| 13. |
Vegetables,fruits, fish and meat not covered by any other entry in any other schedules appended to the Delhi Sales Tax Act 1975 |
| 14. |
kerosene sold through fair price shops |
| 15. |
| Renewable energy devices, specified below:- |
| a. |
Flat plate solar collectors. |
| b. |
Concentrating and pipe type solar collectors |
| c. |
Solar cookers. |
| d. |
Solar water heaters and systems. |
| e. |
Air/gas/fluid heating systems. |
| f. |
Solar Crop dryers and systems |
| g. |
Solar refrigeration, cold storage and air conditioning systems. |
| h. |
Solar stills and desalination system |
| i. |
Solar pumps based on solar thermal and solar photo-voltaic conversion. |
| j. |
Solar power generating systems. |
| k. |
Solar photovoltaic modules and panels for water pumping and other applications. |
| l. |
Wind mills and any specially designed devices which run on wind mills. |
| m. |
Any special devices including electric generators and pump running on wind energy. |
| n. |
Bio-gas plants and bio-gas engines. |
| o. |
Electrically operated vehicles including battery powered or fuel-cell powered vehicles. |
| p. |
Agricultural and municipal waste conversion devices producing energy. |
| q. |
Equipment for utilizing ocean waves and thermal energy. |
|
| 16.3 |
| Kiryana items that is to say- |
| (a) |
all kinds of spices and condiments including cumin seeds, turmeric, ajwain, haldi, dhania, hing, methi, sonth, kalaunji, saunf, khatai, amchur, imli, 4[***], long-patta, dal-chini, tej-patta, javatri, jaiphal, pepper, elaichi of all kind; |
| (b) |
dried chilies, garlic and ginger, kankaul mirch; |
| (c) |
ararote, singhara, kuttu and their atta; |
| (d) |
kala namak, sendha namak; |
| (e) |
aam papar, mushrum, khumba and guchchi; |
| (f) |
gola, goley ka burada, seik narial; |
| (g) |
til, rai; |
| (h) |
postdana, 5[***], magaj of all kind; |
| (i) |
mungafali dana, sabudana; |
| (j) |
6[***], roli; |
| (k) |
Mehandi Patti, pisi mehendi; |
| (l) |
Kesar. |
|
| 17. |
Bidi leaves. |
| 18. |
Starch. |
| 19. |
Maize products. |
| 20. |
Ready-made garments but not including those made of leather, fur, 7[khadi] and silk. |
| 21. |
Hosiery goods 8[***] 9[but not including undergarments, that is to say underwear, vests, panties and brassieres having MRP per piece upto Rs. 100/-] |
| 22.10 |
Utensils and kitchenwares including tablewares, but not including crockery, glazed earthenwares and those made of glass or china-clay |
| 23. |
Bone-meal 11[***] |
| 24. |
Pesticides, insecticides and weedicides. |
| 25. |
Safety Matches, but not including hand made safety matches. |
| 26. |
Ice. |
| 27. |
All kinds of yarns, including staple yarn. |
| 28. |
Raw wool. |
| 29. |
Knitting yarn and knitting wool. |
| 30. |
Raw silk. |
| 31. |
| Packing materials as specified below:- |
| a. |
Gunny bags. |
| b. |
HDPE bags. |
| c. |
Corrugated boxes. |
| d. |
Plastic & tin containers including Barrels. |
| e. |
Wooden boxes, cardboard boxes. |
| f. |
Packing paper. |
| g. |
HDPE packs. |
| h. |
Thermocol Packs, |
| i. |
Polythene sheets used for packing only. |
| j. |
Empty bottles and cork. |
| k. |
Alkaline and bituminous packing materials. |
|
| 32. |
Ores and minerals. |
| 33. |
12[***] |
| 34. |
Bicycles, parts, 13[tyres and tubes] and accessories thereof. |
| 35. |
G. I. Pipes. |
| 36. |
Sponge Iron. |
| 37. |
14[Computer hardware], software 15[and accessories] |
| 38. |
Electronic component and parts including Computer component and parts. |
| 33. |
Meat, Fish, fruits and Vegetables when sold in preserved form |
| 34. |
Silk and garments made of silk, 16[***] |
| 35. |
Musical Instruments |
| 36. |
Synthetic Gems |
| 37. |
Spark Plugs |
| 38. |
Adhesives |
| 3917. |
Chemicals, industrial dyes and industrial whitening agents not covered under any other entry of any of the Schedules appended to the Delhi Sales Tax Act, 1975; including caustic soda but not including detergents, washing materials, household shitening agents, distilled water, paints, non-indystrrial dyes, colours, ink and bulk drugs |
| 40. |
Tractors, 18[tractor chassis and spare parts thereof] |
| 41. |
19[***] |
| 42. |
Plastics in raw form, normally used for manufacturing of plastic goods, but not including plastic colours. |
| 43. |
Non ferrous metals and their alloys, such as aluminum, copper, brass and zinc, but not including finished goods made therfrom.
20[Exp;anation.- Finished goods will not include non-ferrous metals or their alloys in intermediate form such as ingots, billets, patta, etc. normally used as an input in the industry] |
| 44. |
21[Toys excluding those covered under First Schedule appended to the DST Act, 1975 and having MRP inclusive of all taxes less than Rs. 200 per piece or set as the case may be.]] |
| 45. |
22[***] |
| 46. |
Dry fruits, 23[***] |
| 47.24 |
Ferro alloys, super alloys and ferro-silicon |
| 48.25 |
Bearings |
| 49.26 |
V-Belts |
| 50.27 |
Stainless steel, but not including finished goods made thereof |
| 51.28 |
Silicon Carbide |
| 52.29 |
Sewing Thread |
| 53.30 |
Bricks other than refractory bricks |
| 54.31 |
Mon-block pumpsets of 5 to 10 horsepwer used for agriculture purposes |
| 55.32 |
Candles |
| 56.33 |
[***] |
| 57.34 |
Sweet and Khara (Namkeen) |
| 58.35 |
Sulphar and Hydrogen Peroxide |
| 59.36 |
Zipper/ Zip fastener |
| 60.37 |
School Bags having MRP upto Rs. 300/- |
| 61.38 |
Fresh Flowers |
| 62.39 |
[***] |
| 63.40 |
Medicinal Herbs 23[including Amla, harrad and bahera, sikakai, rattanjot and khusk pudina] |
| 64.41 |
[***] |
| 65.42 |
Semiya |
| 66.43 |
Sports Goods |
| 67.44 |
REP, DEPB and other tradable licences |
| 68.45 |
Khoya |
| 69.46 |
Chemical Fertilizer |
| 70.47 |
[***] |
| 71.48 |
[***] |
| 72.49 |
Un-interrupted Power Supply |
| 73.50 |
All cereals and pulses including all forms of rice and their brans when sold packed (upto 20 Kg. in weight) and under a brand name |
| 74.51 |
All kind of flours and processed cereals and pulses such as maida, besan, suji, rice flour, dalia and atta (except atta made out of wheat) when sold packed (upto 20 Kg. in weight) and brand name. |
| 75.52 |
Paper |
| 76.53 |
Mobile phone hand sets |
| 1 |
Inserted vide Notification No. F.4(75)/99-Fin(G) dt. 31.3.2000 w.e.f. 14.4.2000 |
| 2 |
Substituted for the words “(vanaspati ghee)” vide No.F.101(112)/2002-Fin.(A/Cs)/(iv)/298-307 dt. 24.4.2002 w.e.f. 24.4.2002. |
| 3 |
Substituted vide Notification No. F/101(11)/2000-Fin.(A/Cs)/21-27dt. 28.11.2000, w.e.f. 28.11.2000, for the words “Kiryana items including all items execepting medicinal herbs as notified by the Govt. of India, MHA under the CST Act vide notification No. F.14(12)/89-PPR/PF/Voll. III / 25274-523 dated 3.12.1997″. Earlier substituted vide Notification No. F.4(75)/99 – Fin.(G) dated 31.3.2000 w.e.f. 1.4.2000. for the “Kiryana items that is to say – (a) all kinds of spices and condiments including cumin seeds, turmeric, ajwain, haldi, dhania, hing, methi, sonth, kalaunji, saunf, khatai, amchur, imli, amla, harra and bahera, ratanjot, long-patta, dal-chini, tej-patta, javatri jaiphal, pepper, elaichi of all kind; (b) dried chilies, garlic and ginger, kankaul mirch; (c) ararote, singhara, kuttu and their atta; (d) kala namak, sendha namak; (e) aam papar, mushrum, khumba and guchchi; (f) gola, goley ka burada, seik narial; (g) til, rai; (h) postdana, khushk pudina, magaj of all kind; (i) mungafali dana, sabudana; (j) hawan samagri,shikakai, roli; (k) sat-esabgoal, bhuj-esabgoal, bhusi-esabgoal; (l) mehendi patti, pisi mehendi; (m) keser. (n) herbs used in kitchen.” |
| 4 |
Words omitted “amla, harrad and bahera, ratanjot” vide Notification No. F.101(112)/2002-Fin.(A/Cs)/ (iv)/298-307 dt. 24.4.2002 w.e.f. 24.4.2002. |
| 5 |
Words omitted “Khushk pudina” vide Notification No. F.101(112)/2002-Fin.(A/Cs)/ (iv)/298-307 dt. 24.4.2002 w.e.f. 24.4.2002. |
| 6 |
Works omitted “Sikakai” vide Notification No.F.101(112)/2002-Fin.(A/Cs)/(iv)/298-307 dt. 24.4.2002 w.e.f. 24.4.2002. |
| 7 |
Inserted vide Notification No.F.4(75)/99-Fin.(G) dated 31.3.2000 w.e.f. 1.4.2000. |
| 8 |
Works omitted “excluding undergarments made of hosiery having maximum retail price upto Rs. 100/- “vide Notification No.F.101(69)/2001-Fin.(A/Cs)2271-78 dated 31.8.2001 w.e.f. 1.9.2001. These words were earlier inserted vide No.f.4(75)/99 – Fin.(G) dated 31.3.2000 w.e.f. 1.4.2000. |
| 9 |
Inserted vide Notification No. F.101(112)/2002-Fin.(A/Cs)(iv)/298-307 dt. 24.04.2002 w.e.f. 24.04.2000. |
| 10 |
Substituted for “Utensils and kitchenwares including table wares” vide Notification No. F.4(52)/99-Fin.(G)/1576 dated 24.01.2000 w.e.f. 25.1.2000. |
| 11 |
The words “and chemical fertilizers” omitted vide Notification No. F.101(48)/2001-Fin.(A/Cs)120-128 dated 31.03.2001 w.e.f. 01.4.2001. |
| 12 |
Words “Oil cake and De-oiled cakes” omitted vide Notification No. F.4(52)/99 -Fin.(G)/1576 dated 24.1.2000 w.e.f. 25.1.2000. |
| 13 |
Inserted vide Notification No. F.4(75)/99 -Fin.(G) dated 31.03.2000 w.e.f. 1.4.2000. |
| 14 |
As per Clarification No. F.9(J)/97-98 Policy/22754-23157 dated 2/3/2000/ Computer Hardware means (I) Computer of analog or digital varieties and (II) Computer Peripherals such as (a) Computer moniter (b) Computer Keyboards (c) Computer printer * (d) Computer modms including set top modems used with cable TV for internet access (e) Multimedia kits # and (f) Computer scanners *
Note : * digital Photocopiers, digital fax machines which can also be used as Printers / Scanners are not covered under the Entry No.37 of Second Schedule as they are convered under specific Entry No.8 & 3 respectively of First Schedule taxable at 12%. # speakers ampli-speakers when not sold as part of multimedia kit will not be covered under this entry and will be taxed @ 8% being unspecified item and covered under unclassified general good. It is clarified that routers, networking switches and hubs will be covered under Entry No. 38. It is further clarified that UPS & CVT are not covered under this entry and they are taxable @ 12% being covered under Entry No. 2(h) of First Schedules. |
| 15 |
Inserted vide Notification No. F.4(75)/99 – Fin.(G) dated 31.3.2000 w.e.f. 1.4.2000. |
| 16 |
Substituted for “Chemicals not covered under any other entry of any of the Schedules appended to the Delhi Sales tax Act, 1975; including caustic soda but not including detergents, washing materials, whitening agents, soda ash, distilled water, Paints, dyes and colours, Sulphur, ink and bulk durgs”vide notification No. F.4(52)/99 – Fin.(G)/1576 datd 24.01.2000 w.e.f.25.1.2000. |
| 17 |
Inserted vide Notification No. F.4(75)/99 – Fin.(G) dated 31.3.2000 w.e.f.1.4.2000. |
| 18 |
Omitted vide Notification No. F.4/8/2000 – Fin.(E-1)(i)/564 dt. 22.8.2000 w.e.f.22.8.2000 and read as: “Tea sold in loose form”. Earlier substituted for “Un-branded tea, sold in loose form” vide Notification No. F.4(75)/99 – Fin.(G) dt.31.3.2000 w.e.f.1.4.2000. |
| 19 |
Inerted vide Notification No. F.4(52)/99 – Fin.(G)/1576 dated 24.01.2000 w.e.f.25.1.2000. |
| 20 |
Substituted vide Notification No. F.4/8/99 – Fin.(E-1)(i)/564 dt.22.8.2000 w.e.f.22.8.2000 earlier read as: Toys having maximum retail price inclusive of all taxes less than Rs. 250 per piece excluding imported toys. [Rs.250/- substituted for Rs.200 vide Notification No. F.4(75)/99 – Fin.(G) dated 31.3.2000 w.e.f.1.4.2000]. [Words “excluding imported toys” inserted vide Notification No. F.4(52)/99 – Fin.(G)/1576 dated 24.01.2000 w.e.f.25.1.2000. |
| 21 |
Words “Footwear having maximum retail price inclusive of all taxes less than Rs. 200 per pair” omitted vide Notification No. F.4(75)/99 – Fin.(G) dated 31.3.2000 w.e.f.1.4.2000. |
| 22 |
Words “other than canned, sold in sealed container or in packed form” omitted vide Notification No. F.4(75)/99 – Fin.(G)/ dated 31.3.2000 w.e.f.1.4.2000. Earlier inserted vide Notification No. F.4(52)/99 – Fin.(G)/1576 dated 24.01.2000 w.e.f.25.1.2000. |
| 23 |
Inserted vide Notification No. F.4(52)/99 – Fin.(G)/1576 dated 24.01.2000 w.e.f.25.1.2000. |
| 24 |
Inserted vide Notification No. F.4(52)/99 – Fin.(G)/1576 dated 24.01.2000 w.e.f.25.1.2000. |
| 25 |
Inserted vide Notification No. F.4(52)/99 – Fin.(G)/1576 dated 24.01.2000 w.e.f.25.1.2000. |
| 26 |
Inserted vide Notification No.F.4.(52)/99 – Fin.(G)/1576 dated 24.01.2000 w.e.f. 25.1.2000. |
| 27 |
Inserted vide Notification No.F.4(52)/99 – Fin.(G)/1576 dated 24.01.2000 w.e.f. 25.1.2000. |
| 28 |
Inserted vide Notification No.F.4(52)/99 – Fin.(G)/1576 dated 24.01.2000 w.e.f. 25.1.2000. |
| 29 |
Words substituted for “bricks used for construction of buildings” vide Notification No.F.4(75)/99 – Fin.(G) dated 31.3.2000 w.e.f. 1.4.2000. Earlier inserted vide Notification No.F.4(52)/99 – Fin.(G)/1576 dated 24.01.2000 w.e.f. 25.1.2000. |
| 30 |
Inserted vide Notification No.F.4(52)/99-Fin.(G)/1576 dated 24.01.2000 w.e.f. 25.1.2000. |
| 31 |
Inserted vide Notification No.F.4(52)/99-Fin.(G)/1576 dated 24.01.2000 w.e.f. 25.1.2000. |
| 32 |
Words “Dhoop and Agarbatti” omitted vide Notification No.F.4(75)/99-Fin.(G) dt. 31.3.2000 w.e.f. 1.4.2000. Earlier inserted vide No. F.4(52)/99 – Fin.(G)/1576 dt. 24.01.2000 w.e.f. 25.1.2000. |
| 33 |
Inserted vide Notification No.F.4(52)/99 – Fin.(G)/1576 dated 24.01.2000 w.e.f. 25.1.2000. |
| 34 |
Inserted vide Notification No.F.4(75)/99 – Fin.(G) dated 31.3.2000 w.e.f. 1.4.2000. |
| 35 |
Inserted vide Notification No.F.4(75)/99 – Fin.(G) dated 31.3.2000 w.e.f. 1.4.2000. |
| 36 |
Inserted vide Notification No.F.4(75)/99 – Fin.(G) dated 31.3.2000 w.e.f. 1.4.2000. |
| 37 |
Inserted vide Notification No.F.4(75)/99 – Fin.(G) dated 31.3.2000 w.e.f. 1.4.2000. |
| 38 |
Words “Silk Fabrics” omitted vide Notification No.F.101(48)/2001 – Fin.(A/Cs)/120-128 dt. 31.3.2001 w.e.f. 1.4.2001. Earlier inserted vide No.F.4(75)/99 – Fin.(G) dt. 31.3.2000 w.e.f. 1.4.2000. |
| 39 |
Inserted vide Notification No.F.101(48)/2001 – Fin.(A/Cs)/120-128 dt. 31.3.2001 w.e.f. 1.4.2001. |
| 40 |
Inserted vide Notification No.F.101(112)/2002 – Fin.(A/Cs)/(iv)298-307 dt. 24.4.2002 w.e.f. 24.4.2002. |
| 41 |
Words “Oil Cake” omitted vide Notification No.F.101(48)/2001 – Fin.(A/Cs)/120-128 dt. 31.3.2001 w.e.f. 1.4.2001; Earlier inserted vide No.F.4/8//2000 – Fin.(E-1)(i)/654 dt. 22.8.2000 w.e.f. 22.8.2000. |
| 42 |
Inserted vide Notification No.F.101(48)/2001-Fin.(A/Cs)/120-128 dt. 31.3.2001 w.e.f. 1.4.2001. |
| 43 |
Inserted vide Notification No.F.101(48)/2001-Fin.(A/Cs)/120-128 dt. 31.3.2001 w.e.f. 1.4.2001. |
| 44 |
Inserted vide Notification No.F.101(48)/2001-Fin.(A/Cs)/120-128 dt. 31.3.2001 w.e.f. 1.4.2001. |
| 45 |
Inserted vide Notification No.F.101(48)/2001-Fin.(A/Cs)/120-128 dt. 31.3.2001 w.e.f. 1.4.2001. |
| 46 |
Inserted vide Notification No.F.101(69)/2001-Fin.(A/Cs)/2271-78 dt. 31.8.2001 w.e.f. 1.9.2001. |
| 47 |
Entry “oil-cake” omitted vide Notification No.F.101(112)/2002-Fin.(A/Cs)/(iv)/298-307 dt. 24.4.2002 w.e.f. 24.4.2004. Earlier inserted vide Notification No.F.101(69)/2001-Fin.(A/Cs)/2271-78 dt. 31.8.2001 w.e.f. 1.9.2001. |
| 48 |
Entry “De-oiled cake” omitted vide Notifiction No.F.101(112)/2002-Fin.(A/Cs)/(iv)298-307 dt. 24.4.2002 w.e.f. 24.4.2002. Earlier inserted vide Notification No.F.101(69)/2001-Fin.(A/Cs)/2271-78 dt. 31.8.2001 w.e.f. 1.9.2001. |
| 49 |
Inserted vide Notification No.F.101(69)/2001- Fin (A/Cs)2271-78 dt.31.08.2001 w.e.f 1.9.2001 ; |
| 50 |
Inserted vide Notification No.F.101(112)/2002- Fin (A/Cs)/(iv)/298-307 dt.24.04.2002 w.e.f 24.4.2002 ; |
| 51 |
Inserted vide Notification No.F.101(112)/2002- Fin (A/Cs)/(iv)/298-307 dt.24.04.2002 w.e.f 24.4.2002 ; |
| 52 |
Inserted vide Notification No.F.101(112)/2002- Fin (A/Cs)/(iv)/298-307 dt.24.04.2002 w.e.f 24.4.2002 ; |
| 53 |
Inserted vide Notification No.F.101(112)/2002- Fin (A/Cs)/(iv)/298-307 dt.24.04.2002 w.e.f 24.4.2002 ; |
THE THIRD SCHEDULE
[The Delhi Sales Tax (Amendment) Ordinance, 2000; No. F.4(52)-Fin.(G)/1435 dated 05.01.2000
w.e.f. January 06, 2000 as amended from time to time]
| S.No. |
Name of the goods |
DST |
| 1. |
| Petroleum Products other than liquid perroleum gas, diesel (HSD / LDO),1[Compressed Natural gas] and Kerosene such as |
| (i) |
Natural Gas ; |
| 2[(ia) |
Naphtha] ; |
| (ii) |
Aviation Turbine Fuel ; |
| (iii) |
Spirit ; |
| (iv) |
Gasoline ; |
| (v) |
Fumace Oil ; |
| (vi) |
3[***] ; |
| (vii) |
Organic Solvent ; |
| (viii) |
Coal Tar ; |
| (ix) |
Wax 4[except Petroleum wax used for manufacture of candles] ; |
| (x) |
Mixture and combination of above products |
|
5[Petroleum wax used for manufacture of candles |
|
12% |
| 2. |
Liquor (Foreign and Indian Made Foreign Liquor) |
20% |
| 3. |
Country Liquor |
20% |
| 4. |
Narcotics (Bhaang) |
20% |
| 5. |
Molasses |
20% |
| 6. |
Rectified Spirit |
20% |
| 7. |
Lottery Tickers |
20% |
| 8.6 |
Aerated Tickets |
712% |
| 9.8 |
Brake Fluid |
20% |
| 1 |
Substituted for “Naphtha” vide No. F.4(52)/99-Fin.(G)(vii)/1546 & 1555 dt. 15.1.2000 w.e.f. 16.1.2000. |
| 2 |
Inserted vide Notification No.F.4(52)/99-Fin.(G)(vii)/1546 & 1555 dt. 15.1.2000 w.e.f. 16.1.2000. |
| 3 |
Entry omitted “Lubricants” vide Notification No.F.101(112)/2002Fin.(A/Cs)/(ii)/278-87 dt.24.4.2000. w.e.f. 24.4.2002. Earlier inserted vide Notification No.F.101(112)/2002Fin.(A/Cs)/(iii)/288-97 dt.24.4.2000. w.e.f. 24.4.2002. |
| 4 |
Inserted vide Notification No.F.4(52)/99-Fin.(G)/1585 dated.24.01.2000 w.e.f. 25.01.2000. |
| 5 |
Inserted vide Notification No.F.4(52)/99-Fin.(G)/1585 dated.24.01.2000 w.e.f. 25.01.2000. |
| 6 |
Inserted vide Notification No.F.4(75)/99-Fin.(G) dated.31.3.2000 w.e.f. 1.4.2000. |
| 7 |
Substituted for “15%” vide Notification No.F.4/8/2000 Fin.(E-I)(i)/564 dt.22.08.2000 w.e.f. 22.08.2000 |
| 8 |
Substituted for “All kinds of Non-Petroleum Lubricants and Brake Fluid” vide Notification No.F.101(112)/2002-Fin.(A/Cs)/(ii)/278-87 dt. 24.4.2002 w.e.f. 24.4.2002. Earlier inserted vide Notification No.F.101(48)/2001-Fin.(A/Cs)/120-128 dt. 31.3.2001 w.e.f. 1.4.2001. |
THE FOURTH SCHEDULE
| THE FORTH SCHEDULE |
| [(See section 4(1) (cc)] |
|
[The Delhi Sales Tax (Amendment) Ordinance, 2000; No. F.4(52)-Fin.(G)/1435 dated 05.01.2000
w.e.f. January 06, 2000 as amended from time to time] |
| S.No. |
Name of the goods |
DST |
| 1. |
| Petroleum Products other than liquid perroleum gas, diesel (HSD / LDO),1[Compressed Natural gas] and Kerosene such as |
| (i) |
Natural Gas ; |
| 2[(ia) |
Naphtha] ; |
| (ii) |
Aviation Turbine Fuel ; |
| (iii) |
Spirit ; |
| (iv) |
Gasoline ; |
| (v) |
Fumace Oil ; |
| (vi) |
3[***] ; |
| (vii) |
Organic Solvent ; |
| (viii) |
Coal Tar ; |
| (ix) |
Wax 4[except Petroleum wax used for manufacture of candles] ; |
| (x) |
Mixture and combination of above products |
|
5[Petroleum wax used for manufacture of candles |
|
12% |
| 2. |
Liquor (Foreign and Indian Made Foreign Liquor) |
20% |
| 3. |
Country Liquor |
20% |
| 4. |
Narcotics (Bhaang) |
20% |
| 5. |
Molasses |
20% |
| 6. |
Rectified Spirit |
20% |
| 7. |
Lottery Tickers |
20% |
| 8.6 |
Aerated Tickets |
712% |
| 9.8 |
Brake Fluid |
20% |
| 1 |
Substituted for “Naphtha” vide No. F.4(52)/99-Fin.(G)(vii)/1546 & 1555 dt. 15.1.2000 w.e.f. 16.1.2000. |
| 2 |
Inserted vide Notification No.F.4(52)/99-Fin.(G)(vii)/1546 & 1555 dt. 15.1.2000 w.e.f. 16.1.2000. |
| 3 |
Entry omitted “Lubricants” vide Notification No.F.101(112)/2002Fin.(A/Cs)/(ii)/278-87 dt.24.4.2000. w.e.f. 24.4.2002. Earlier inserted vide Notification No.F.101(112)/2002Fin.(A/Cs)/(iii)/288-97 dt.24.4.2000. w.e.f. 24.4.2002. |
| 4 |
Inserted vide Notification No.F.4(52)/99-Fin.(G)/1585 dated.24.01.2000 w.e.f. 25.01.2000. |
| 5 |
Inserted vide Notification No.F.4(52)/99-Fin.(G)/1585 dated.24.01.2000 w.e.f. 25.01.2000. |
| 6 |
Inserted vide Notification No.F.4(75)/99-Fin.(G) dated.31.3.2000 w.e.f. 1.4.2000. |
| 7 |
Substituted for “15%” vide Notification No.F.4/8/2000 Fin.(E-I)(i)/564 dt.22.08.2000 w.e.f. 22.08.2000 |
| 8 |
Substituted for “All kinds of Non-Petroleum Lubricants and Brake Fluid” vide Notification No.F.101(112)/2002-Fin.(A/Cs)/(ii)/278-87 dt. 24.4.2002 w.e.f. 24.4.2002. Earlier inserted vide Notification No.F.101(48)/2001-Fin.(A/Cs)/120-128 dt. 31.3.2001 w.e.f. 1.4.2001. |
SPECIAL RATE OF TAX
[Notification No. F.4(52)/99 – Fin.(G)(viii)/1564 dated 15.01.2000
w.e.f. 16.01.2000]
| 1. |
Bullion |
1% |
| 2. |
Articles and ornaments made of gold or silver |
1% |
| 3. |
Precious stones |
1% |
GENERAL RATE OF TAX
[Notification No. F.4(52)/99 – Fin.(G)(viii)/1564 dated 15.01.2000
w.e.f. 16.01.2000]
| All other goods covered by clause (d) of the sub-section (1) of Section 4 i.e. goods not specified in any of the Schedule to this Act |
1% |
| 2. |
Articles and ornaments made of gold or silver |
1% |
| 3. |
Precious stones |
1% |
November 30, 2014
Section 1. Short title, extent and commencement
[Act No. 16 of 1908]
[18th December 1908]
An Act to consolidate the enactments relating to the Registration of Documents.
Whereas it is expedient to consolidate the enactments relating to the registration of documents;
It is hereby enacted as follows:
(1) This Act may be called the 1[Registration Act, 1908.
2[(2) It extends to the whole of India except the State of Jammu and Kashmir:
Provided that the State Government may exclude any districts or tracts of country from its operation.]
(3) It shall come into force on the first day of January, 1909.
——————–
1. The word “Indian” omitted by Act No. 45 of 1969.
2. Subs. by Act No. 3 of 1951.
Section 2. Definitions
In this Act, unless there is anything repugnant in the subject or context, –
(1) “Addition” means the place of residence, and the profession, trade, rank and title (if any) of person described, and, in the case of an Indian, his father’s name, or where he is usually described as the son of his mother, then his mother’s name;
(2) “Book” includes a portion of a book and also any number of sheets connected together with a view of forming a book or portion of a book;
(3) “District” and “sub-district” respectively mean a district and sub-district formed under this Act;
(4) “District Court” includes the High Court in its ordinary original Civil jurisdiction;
(5) “Endorsement” and “endorsed” include and apply to an entry in writing by a registering officer on a rider or covering slip to any document tendered for Registration under this Act;
(6) “Immovable property” includes land, buildings, hereditary allowances, rights to ways, lights, ferries, fisheries or any other benefit to arise out of land, and things attached to the earth, or permanently fastened to anything which is attached to the earth, but not standing timber, growing crops nor grass;
[(6A) “India” means the territory of India excluding the State of Jammu and Kashmir ;
(7) “ Lease” includes a counter part, kabuliyat, an undertaking to cultivate or occupy, and an agreement to lease;
(8) “Minor” means a person who, according to the personal law to which he is subject, has not attained majority;
(9) “Movable property” includes standing timber, growing corps and grass, fruit upon and juice in trees, and property of every other description, except immovable property; and
(10) “Representative” includes the guardian of a minor and the committee or other legal curator of a lunatic or idiot.
Section 3. Inspector General of Registration
(1) The State Government shall appoint an officer to be the Inspector General of Registration for the territories subject to such Government:
Provided that the State Government may, instead of making such appointment, direct that all or any of the powers and duties hereinafter conferred and imposed upon the Inspector-General shall be exercised and performed by such officer or officers, and within such local limits, as the State Government appoints in this behalf.
(2) Any Inspector-General may hold simultaneously any other officer under the Government.
Section 4. Repealed
4. [Repealed.]
Section 5. Districts and sub-districts
(1) For the purposes of this Act, the State Government shall form districts and sub-districts, and shall prescribe, and may alter, the limits of such districts and sub-districts,
(2) The districts and sub-districts formed under this section, together with the limits thereof, and every alternation of such limits, shall be notified in the Official Gazette.
(3) Every such alternation shall take effect on such day after the date of the notification as is therein mentioned.
Section 6. Registrars and Sub-Registrars
The State Government may appoint such person, whether public officers or not, as it thinks proper, to be Registrars of the several districts, and to be Sub-Registrars of the several sub-districts, formed as aforesaid, respectively.
Section 7. Offices of Registrar and Sub-Registrar
(1) The State Government shall establish in every district and office to be styled the office of the Registrar and in every sub-district an office or offices to be styled the office of the Sub-Registrar or the offices of the Joint Sub-Registrars.
(2) The State Government may amalgamate with any office of a Registrar any office of a Sub-Registrar subordinate to such Registrar, and may authorize any Sub-Registrar whose office has been so amalgamated to exercise and perform, in addition to his own powers and duties, all or any of the powers and duties of the Registrar to whom he is subordinate:
Provided that no such authorization shall enable a Sub-Registrar to hear an appeal against an order passed by himself under this Act.
Section 8. Inspectors of Registration-offices
(1) The State Government may also appoint officers, to be called Inspectors of Registration-offices, and may prescribe the duties of such officers.
(2) Every such Inspector shall be subordinate to the Inspector-General.
Section 9. Repealed
9. [Repealed]. –
Section 10. Absence of Registrar or vacancy in his office
(1) When any Registrar, other than the Registrar of a district including a Presidency-town is absent otherwise than on duty in his district, or when his office is temporarily vacant, any person whom the Inspector-General appoints in this behalf, or, in default of such appointment, the Judge of the District Court within the local limits of whose jurisdiction the Registrar’s office is situate, shall be the Registrar during such absence or until the State Government fills up the vacancy.
(2) When the Registrar of a district including a Presidency-town is absent otherwise than on duty in his district, or when his office is temporarily vacant, any person whom, the Inspector-General appoints in this behalf shall be Sub-Registrar during such absence, or until the State Government fills up the vacancy.
Section 11. Absence of Registrar on duty in his district
When any Registrar is absent from his office on duty in his district, he may appoint any Sub-Registrar or other person in his district to perform, during such absence, all the duties of a Registrar except those mentioned in Sections 68 and 72.
Section 12. Absence of Sub-Registrar or vacancy in his office
When any Sub-Registrar is absent, or when his office is temporarily vacant, any person whom the Registrar of the district appoints in this behalf shall be Sub-Registrar during such absence, or until the vacancy is filled up.
Section 13. Report to State Government of appointments under Sections 10, 11 and 12
(1) All appointments made under Section 10, Section 11 or Section 12 shall be reported to the State Government by the Inspector-General.
(2) Such report shall be either special or general, as the State Government directs.
Section 14. Establishments of registering officers
[(1) Omitted
(2) State Government may allow proper establishments for the several offices under this Act.
Section 15. Seal of registering officers
The several Registrars and Sub-Registrars shall use a seal hearing the following inscription in English and in such other language as the State Government directs:-
“The seal of the Registrar (or of the Sub-Registrar) or”
Section 16. Register-books and fire-proof boxes
(1) The State Government shall provide for the office of every registering officer the books necessary for the purposes of this Act.
(2) The books so provided shall contain the forms form time to time prescribed by the Inspector-General, with the sanction of the State Government, and the pages Of Such books shall be consecutively numbered in print, and the number of pages in each book shall be certified on the title-page by the officer by whom Such books are issued.
(3) The State Government shall supply the office of every Registrar with a fireproof box, and shall in each District make suitable provision for the safe custody of the records connected with the registration of documents in such districts
Section 17. Documents of which registration is compulsory
(1) The following documents shall be registered, if the property to which they relate is situate in a district in which, and if they have been executed on or after the date on which, Act No, XVI of 1864, or the Indian Registration Act, 1866, or the Indian Registration Act, 1871, or the Indian Registration Act, 1877, or this Act came or comes into force, namely:-
(a) Instruments of gift of immovable property;
(b) Other non-testamentary instruments which purport or operate to create, declare, assign, limit or extinguish, whether in present or in future, any right, title or interest, whether vested or contingent, of the value of one hundred rupees and upwards, to or in immovable property;
(c) Non-testamentary instruments which acknowledge the receipt or payment of any consideration on account of the creation, declaration, assignment, limitation or extinction of any such right, title or interest; and
(d) Lease of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent;
(e) Non-testamentary instruments transferring or assigning any decree or order of a Court or any award when such decree or order or award purports or operates to create, declare, assign, limit or extinguish, whether in present or in future, any right, title or interest, whether vested or contingent, of the value of one hundred rupees and upwards, to or in immovable property:
Provided that the State Government may, by order published in the Official Gazette, exempt from the operation of this sub-section any lease executed in any district, or part of a district, the terms granted by which do not exceed five years and the annual rents reserved by which do not exceed fifty rupees.
(2) Nothing in clauses (b) and (c) of sub-section (1) applies to. –
(i) Any composition-deed; or
(ii) Any instrument relating to shares in a Joint Stock Company, notwithstanding that the assets of such Company consist in whole or in part of immovable property-, or
(iii) Any debenture issued by any such Company and not creating, declaring, assigning, limiting or extinguishing any right, title or interest, to or in immovable property except in so far as it entitles the holder to the security afforded by a registered instrument whereby the Company has mortgaged, conveyed or otherwise transferred the whole or party of its immovable property or any interest therein to trustees upon trust for the benefit of the holders of such debentures; or
(iv) Any endorsement upon or transfer of any debenture issued by any such Company; or
(v) Any document not itself creating, declaring, assigning, limiting or extinguishing any right, title or interest of the value of one hundred rupees and upwards to or in immovable property, but merely creating a right to obtain another document which will, when executed, create, declare, assign, limit or extinguish any such right, title or interest; or
(vi) Any decree or order of a Court except a decree or order expressed to be made on a compromise and comprising immovable property other than that which is the subject-matter of the suit or proceeding, or (vii) Any grant of immovable property by Government or
(viii) Any instrument of partition made by a Revenue-officer; or
(ix) Any order granting a loan or instrument of collateral security granted under the land improvement Act, 1871, or the Land Improvement Loans Act, 1883; or
(x) Any order granting a loan under the Agriculturists Loans Act, 1884, or instrument for securing the repayment of a loan made under that Act; or
(xa) Any order made under the Charitable Endowments Act, 1890. (6 of 1890) vesting any property in a Treasurer of Charitable Endownments or divesting any such Treasurer of any property; or
(xi) Any endorsement on a mortgage-deed acknowledging the payment of the whole or any part of the mortgage-money, and any other receipt for payment of money due under a mortgage when the receipt does not purport to extinguish the mortgage; or
(xii) Any certificate of sale granted to the purchaser of any property sold by public auction by a Civil or Revenue-officer.
Explanation. – A document purporting or operating to effect a contract for the sale of immovable property shall not be deemed to require or ever to have required registration by reason only of the fact that such document contains a recital of the payment of any earnest money or of the whole or any part of the purchase money.
(3) Authorities to adopt a son, executed after the Ist day of January, 1872, and not conferred by a will, shall also be registered.
Section 18. Document of which registration is optional
Any of the following document may be registered under this Act, namely:
(a) Instruments (other than instrument of gift and wills) which purport or operate to create, declare, assign, limit or extinguish, whether in present or in future, any right, title or interest, whether vested or contingent, of a value less than one hundred rupees, to or in immovable property;
(b) Instruments acknowledging the receipt or payment of any consideration of account of the creation, declaration, assignment, limitation or extinction of any such right, title or interest;
(c) Leases of immovable property for any term not exceeding one year, and leases exempted under Section 17;
(cc) Instruments transferring or assigning any decree or order of a Court or any award when such decree or order or award purports or operates to create, declare, assign, limit or extinguish, whether in present or in future any right title or interest, whether vested or contingent, or a value less than one hundred rupees, to or in immovable property;
(d) Instruments (other than wills) which purport or operate to create, declare, assign, limit or extinguish any right, title or interest to or in movable property;
(e) Wills; and
(f) All other documents not required by Section 17 to be registered.
Section 19. Documents in language not understood by registering officer
If any document duly presented for registration be in a language which the registering officer does not understand, and which is not commonly used in the district, he shall refuse to register the documents, unless it be accompanied by a true translation into a language commonly used in the district and also by a true copy.
Section 20. Documents containing interlineations, blanks, erasures or alterations
(1) The registering officer may in his discretion refuse to accept for registration any document in which any interlineations, blank, erasure or alteration appears, unless the persons executing the document attest with their signature or initials such interlineations, blank, erasure or alteration.
(2) If the registering officer registers any such document, he shall, at the time of registering the same, make a note in the register of such interlineations, blank, erasure or alteration.
Section 21. Description of property and maps or plans
(1) No non-testamentary document relating to immovable property shall be accepted for registration unless it contains a description of such property sufficient to identify the same.
(2) Houses in towns shall be described as situate on the north or other side of the street or road (which should be specified) to which they front, and by their existing and former occupancies, and by their numbers if the houses in such street or road are numbered.
(3) Other houses and lands shall be described by their name, if any, and as being the territorial division in which they are situate, and by their superficial contents, the roads and other properties on which they abut, and their existing occupancies, and also, whenever it is practicable, by reference to a Government map or survey.
(4) No non-testamentary document containing a map or plan of any property comprised therein shall be accepted for registration unless it is accompanied by a true copy of the map or plan, or, in case such property is situate in several districts, by such number of true copies of the map or plan as are equal to the number of such districts.
Section 22. Description of houses and land by reference to Government maps or surveys
(1) Where it is, in the opinion of the State Government, practicable to describe houses, not being houses in towns, and lands by reference to a Government map or survey, the State Government may, by rule made under this Act, require that such houses and lands as aforesaid shall, for the purposes of Section 21, be so described.
(2) Save as otherwise provided by any rule made under sub-section (1), failure to comply with the provision of Section 21, subsection (2) or sub-section (3), shall not disentitle a document to be registered if the description of the property to which it relates is sufficient to identify that property.
Section 23. Time for presenting documents
Subject to the provisions contained in Section 24, 25 and 26, no document other than a will shall be accepted for registration unless presented for that purpose to the proper officer within four months from the date of its execution:
Provided that a copy of a decree or order may he presented within four months from the day on which the decree or order was made, or, where it is appealable, within four months from the day on which it becomes final.
Section 23 A. Re-registration of certain documents
Notwithstanding anything to the contrary contained in this Act, if in any case a document requiring registration has been accepted for registration by a Registrar or Sub-Registrar from a person not duly empowered to present the same, and has been registered, any person claiming under such document may, within four months from his first becoming aware that the registration of such document is invalid, present such document or cause the same to be presented, in accordance with the provision of Part VI for re-registration in the office of the Registrar of the district in which the document was originally registered; and upon the Registrar being satisfied that the document was so accepted for registration from a person not duly empowered to present the same, he shall proceed to the re-registration of the document as if it has not been previously registered, and as if such presentation for re-registration was a presentation for registration made within the time allowed therefor under Part IV, and all the provisions of this Act, as to registration of documents, shall apply to such re-registration; and such document, if duly re-registered in accordance with the provisions of this section, shall be deemed to have been duly registered for all purposes from the date of its original registration:
Provided that, within three months, from the twelfth day of September 1917, any person claiming under a document to which this section applies may present the same or cause the same to be presented for re-registration in accordance with this section, whatever may have been the time when the first became aware that the registration of the document was invalid.
Section 24. Documents executed by several persons at different times
Where there are several persons executing a document at different times, such document may be presented for registration and re-registration within four months from the date of each execution.
Section 25. Provision where delay in presentation is unavoidable
(1) If, owing to urgent necessity or unavoidable accident, any document executed, or copy of a decree or order made, in India is not presented for registration in after the expiration of the time herein before prescribed in that behalf, the Registrar, in cases where the delay in presentation does not exceed four months, may direct that, on payment of a fine not exceeding ten times the amount of the proper registration-fee, such document shall be accepted for registration.
(2) Any application for such direction may be lodged with a Sub-Registrar, who shall, forthwith forward it to the Registrar to whom he is subordinate.
Section 26. Documents executed out of India
When a document purporting to have been executed by all or any of the parties out of India is not presented for registration in after the expiration of the time hereinbefore prescribed in that behalf, the registering officer, if satisfied. –
(a) That the instrument was so executed, and
(b) That it has been presented for registration within four months after its arrival in India,
May, on payment of the proper registration-fee, accept such document for registration.
Section 27. Wills may be presented or deposited at any time
A will may at any time be presented for registration or deposited in manner hereinafter provided.
Section 28. Place for registering documents relating of land
Save as in this Part otherwise provided every document mentioned in Section 17, sub-section (1), clauses (a), (b), (c), (d) and (e) Section 17, subsection (2), in so far as such document affects immovable property, and Section 18, clauses (a), (b) (c) and (cc), shall be presented for registration in the office of a Sub-Registrar within whose sub-district the whole or some portion of the property to which such document relates is situate.
Section 29. Place for registering other documents
(1) Every document not being a document referred to in Section 28 or a copy of a decree or order, may be presented for registration either in the office of the Sub-Registrar in whose sub-district the document was executed, or in the office of any other Sub-Registrar under the State Government at which all the persons executing and claiming under the document desire the same to be registered.
(2) A copy of a decree or order may be presented for registration in the office of the Sub-Registrar in whose sub-district the original decree or order was made, or, where the decree or order does not affect immovable property, in the office of any other Sub-Register under the State Government at which all the persons claiming under the decree or order desire the copy to be registered.
Section 30. Registration by Registrars in certain cases
(1) Any Registrar may in his discretion receive and register any document which might be registered by any Sub-Registrar subordinate to him.
(2) 1[The Registrar of a district in which a Presidency-town in included and the Registrar of the Delhi district] may receive and register any document referred to in Section 28 without regard to the situation in any part of India of the property to which the document relates.
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1. Subs. by Act No. 45 of 1969, for “the Registrar of t district including a Presidency-town”.
Section 31. Registration or acceptance for deposit at private residence
In ordinary cases the registration or deposit of documents under this Act shall be made only at the office of the officer of the officer authorized to accept the same for registration or deposit:
Provided that such officer may on special cause being shown attend at the residence of any person desiring to present a document for registration or to deposit a will, and accept for registration or deposit such document or will.
Section 32. Persons to present documents for registration
Except in the cases mentioned in Sections 31, 88 and 89, every document to be registered under this Act, whether such registration be compulsory or optional, shall be presented at the proper registration-office,-
(a) By some person executing or claiming under the same, or, in the case of a copy of a decree or order, claiming under the decree or order, or
(b) By the representative or assign of such a person, or
(c) By the agent of such a person, representative or assign, duly authorized by power-of-attorney executed and authenticated in manner hereinafter mentioned.
Section 33. Power-of-attorney recognizable for purposes of Section 32
(1) For the purposes of Section 32, the following powers-of-attorney shall alone be recognized namely:-
(a) If the principal at the time of executing the power-of-attorney resides in any part of India in which this Act is for the time being in force, a power-of-attorney executed before and authenticated by the Registrar or Sub-Registrar within whose district or sub-district the principal resides;
(b) If the principal at the time aforesaid resides in any part of India in which this Act is not in force, a power-of-attorney executed before and authenticated by any Magistrate;
(c) If the principal at the time aforesaid does not reside in India, a power-of-attorney executed before and authenticated by a Notary Public, or any Court, Judge, Magistrate, Indian consul or Vice-Consul, or representative of the Central Government:
Provided that the following persons shall not be required to attend at ally registration office or Court for the purposes of executing ally such power-of-attorney as is mentioned in clauses (a) and (b) of this section, namely:-
(i) Persons who by reason of bodily infirmity are unable without risk or serious inconvenience are to attend;
(ii) Persons who are in jail under civil or criminal process; and
(iii) Persons exempt by law form personal appearance in Court.
Explanation. -In this sub-section “India” means India, as defined in clause (28) of Section 3 of the General Clauses Act, 1897.
(2) In the case of every such person the Registrar or Sub-Registrar or Magistrate, as the case may be, if satisfied that the power-of-attorney has been voluntarily executed by the person purporting to be the principal, may attest the same without requiring his personal attendance at the office or Court aforesaid.
(3) To obtain evidence as to the voluntary nature of the execution, the Registrar or Sub-Registrar or Magistrate may either himself go to the house of the person purporting to be the principal, or to the jail in which he is confined, and examine him, or issue a commission for his examination.
(4) Any power-of-attorney mentioned in this section may he proved by the production of it without further proof when it purports oil the face of it to have been executed before and authenticated by the person or Court hereinbefore mentioned in that behalf.
Section 34. Enquiry before registration by registering officer
(1) Subject to the provisions contained in this Part and in Sections 41, 43, 45, 69, 75, 77, 88, and 89, no document shall be registered under this Act, unless the persons executing such document or their representatives, assigns or agents authorized as aforesaid, appear before the registering officer within the time allowed for presentation under Sections 23, 24, 25, and 26:
Provided that, if owing to urgent necessity or unavoidable accident all such persons do not so appear, the Registrar, in cases where the delay in appearing does not exceed four months, may direct that oil payment of a fine not exceeding ten times the amount of the proper registration fee, in addition to the fine, it’ any, payable under Section 25, the document may be registered.
(2) Appearances under subsection (1) may be simultaneous or at different times.
The registering officer shall thereupon-
(a) Enquire whether or not such document was executed by the persons by whom it purports to have been executed;
(b) Satisfy himself as to the identity of the persons appearing before him and alleging that they have executed the document; and
(c) In the case of any person appearing as a representative, assign or agent, satisfy himself of the right of such person so to appear.
Section 35. Procedure on admission and denial of execution respectively
(1) (a) If all the persons executing the document appear personally before the registering officer and are personally known to him, or if he otherwise satisfied that they are the person they represent themselves to be, and if they all admit the execution of the document, or
(b) If in the case of any person appearing by a representative , assign or agent, such representative, assign or agent admits the execution, or
(c) If in the case of any person executing the document is dead, and his representative or assign appears before the registering officer and admits the execution, the registering officer shall register the document as directed in Section 58 to 61, inclusive.
(2) The registering officer may, in order to satisfy himself that the persons appearing before him are the persons they represent themselves to be, or for any other purpose contemplated by this Act, examine any one present in his office.
(3) (a) If any person by whom the document purports to be executed denies its execution, or
(b) If any such person appears to the registering officer to be a minor, an idiot or a lunatic, or
(c) If any person by whom the document purports to be executed is dead, and his representative or assign denies its execution, the registering officer shall refuse to register the document as to the person so denying, appearing or dead:
Provided that, where such officer is a Registrar, he shall fallow the procedure prescribed in Part XII:
Provided further that the State Government may, by notification in the Official Gazette, declare that any Sub-Registrar named in the notification shall, in respect of documents sub-section and of Part XII.
Section 36. Procedure where appearance of executant or witness is desired
If any person–presenting any document for registration or claiming under any document, which is capable of being so presented, desires the appearance of any person whose presence or testimony is necessary for the registration of such document, the registering officer may, call upon such officer or Court as the State Government directs in this behalf to issue a summons requiring him to appear at the registration–office, either in person or by duly authorized agent, as in the summons may be mentioned, and at a time named therein.
Section 37. Officer or Court to issue and cause service of summons
The officer or Court, upon receipt of the peon’s fee payable in such cases, shall issue the summons accordingly, and cause it to be served upon the person whose appearance is so required.
Section 38. Persons exempt from appearance at registration-office
(1) (a) A person who by reason of bodily infirmity is unable without risk or serious inconvenience to appear at the registration-office, or
(b) A person in jail under civil or criminal process, or
(c) Person exempt by law from personal appearance in Court, and who would but for the provision next hereinafter contained be required to appear in person at the registration-office, shall not be required so to appear.
(2) In the case of every such person the registration-officer shall either himself go to the house of such person, or to the jail in which he is confined, and examine him or issue a commission for his examination.
Section 39. Law as to summonses commissions and witness
The law in force for the time being as to summonses, commissions and compelling the attendance of witnesses, and for their remuneration in suits before Civil Courts, shall, save as aforesaid and mutatis mutandis, apply to any summons or commission issued and any person summoned to appear under the provisions of this Act.
Section 40. Persons entitled to present wills and authorities to adopt
(1) The testator, or after his death any person claiming as executor or otherwise under a will, may present it to any Registrar or Sub-Registrar for registration.
(2) The donor, or after his death the donee, of any authority to adopt, or the adoptive son, may present it to any Registrar or Sub-Registrar for registration.
Section 41. Registration of wills and authorities to adopt
(1) A will or an authority to adopt presented for registration by the testator or donor, may be registered in the same manner as any other document.
(2) A will or authority to adopt presented for registration by any other person entitled to present it shall be registered if the registering officer is satisfied-
(a) That the will or authority was executed by the testator or donor, as the case may be;
(b) That the testator or donor is dead; and
(c) That the person presenting the will or authority is, under Section 40 entitled to present the same.
Section 42. Deposit of wills
Any testator may, either personally or by duly authorized agent deposit with any Registrar his will in a sealed cover superscribed with the name of the testator and that of his agent (if any) and with a statement of the nature of the document.
Section 43. Procedure on deposit of Wills
(1) On receiving such cover, the Registrar, if satisfied that the person presenting the same for deposit is the testator or his agent, shall transcribe in his Register-book No. 5 the superscription aforesaid, and shall note in the same book and on the said cover the, y ar, month, day and hour of such presentation and receipt, and the names of any persons who may testify to the identity of the testator or his agent, and any legible inscription which may be on the seal of the cover.
(2) The Registrar shall then place and retain the scaled cover in his fireproof box.
Section 44. Withdrawal of sealed cover deposited under Section 42
If the testator who has deposited such cover wishes to withdraw it, he may apply, either personally or by duly authorized agent, to the Registrar who holds it in deposit, and such Registrar, if satisfied that the applicant is actually the testator or his agent, shall deliver the cover accordingly.
Section 45. Proceedings on death of depositor
(1) If, on the death of a testator who has deposited a sealed cover under Section 42, application be made to the Registrar who holds it in deposit to open the same, and if the Registrar is satisfied that the testator is dead, he shall, in the applicant’s presence, open the cover, and, at the application’s expense, cause the contents thereof to be copied into his Book No. 3.
(2) When such copy has been made, the Registrar shill re-deposit the original will.
Section 46. Saving of certain enactments and powers of Courts
(1) Nothing herein-before contained shall affect the provisions of Section 259 of the Indian Succession Act, 1865, or of Section 81 of the Probate and Administration Act, 1881, or the power of any Court be order to compel the production of any will.
(2) When any such order is made, the Registrar shall, unless the will has been already copied under Section 45, open the cover and cause the will to be copied into his Book No. 3 and make a note on such copy that the original has been removed into Court in pursuance of the order aforesaid.
Section 47. Time from which registered document operates
A registered document shall operate from the time from which it would have commenced to operate if no registration thereof had been required or made, and not from the time of its registration.
Section 48. Registered documents relating to property when to take effect against oral agreements
All non-testamentary documents duly registered under this Act, and relating to any property, whether movable or immovable, shall take effect against any oral agreement or declaration relating to such property, unless where the agreement or declaration has been accompanied or followed by delivery of possession and the same constitutes a valid transfer under any law for the time being in force:
Provided that a mortgage by deposit of title deeds as defined in Section 58 of the Transfer of Property Act, 1882, shall take effect against any mortgage-deed Subsequently executed and registered which relates to the same property.
Section 49. Effect of non-registration of documents required to be registered
No document required by Section 17 or by any provision of the Transfer of Property Act, 1882 to be registered shall-
(a) Affect any immovable property comprised therein, or
(b) Confer any power to adopt, or
(c) Be received as evidence of any transaction affecting such property or conferring such power; unless it has been registered:
Provided that an unregistered document affecting immovable property and required by this Act or the Transfer of Property Act, 1882, to be registered may be received as evidence of a contract in a suit for specific performance under Chapter 11 of the Specific Relief Act, 1877, or as evidence of part performance of a contract for the purposes of Section 53A of the Transfer of Property Act, 1892, or as evidence of any collateral transaction not required to be effected by registered instrument.
Section 50. Certain registered documents relating to land to take effect against unregistered documents
(1) Every document of the kinds mentioned in clauses (a), (b), (c) and (d) of Section 17, sub-section (1) and clauses (a) and (b) of Section 18, shall, if duly registered, take effect as regards the property comprised therein, against every unregistered document relating to the same property, and not being a decree or order, whether such unregistered document be of the same nature as the registered document or not.
(2) Nothing in sub-section (1) applies to leases exempted under the provision to sub-section (1) of Section 17 or to any document mentioned in subsection (2) of the same section, or to any registered document which had not priority under the law in force at the commencement of this Act.
Explanation. -In cases where Act No. XVI of 1864 or the Indian Registration Act, 1866, was in force in the place and at the time in and at which such unregistered document was executed, “unregistered” means not registered according to such Act, and, where the document is executed after the first day of July, 1871, not registered under the Indian Registration Act, 1871, or the Indian Registration Act, 1877, or this Act.
Section 51. Register-books to be kept in the several offices
(1) The following books shall be kept in the several offices hereinafter named, namely: –
A-In all registration offices-
Book 1, “Register of non-testamentary documents relating to immovable property”;
Book 2, “Record of reasons for refusal to register”;
Book 3, “Register of wills and authorities to adopt”; and Book 4, “Miscellaneous Register;”
B-In the offices of Registrars-
Book 5, “Register of deposits of wills”-.
(2) In Book I shall be entered or filed all documents or memoranda registered under Sections 17, 18, and 89, which relate to immovable property, and are not wills.
(3) In Book 4 shall be entered all documents registered under clauses (d) and (f) of Section 18 which do not relate to immovable property.
(4) Nothing in this section shall be deemed to require more than one set of books where the office of the Registrar has been amalgamated with the office of a Sub-Registrar.
Section 52. Duties of registering officers when document presented
(1) (a) The day, hour and place of presentation, and the signature of every person presenting a document for registration, shall be endorsed on every such document at the time of presenting it;
(b) A receipt for such document shall be given by the registering officer to the person presenting the same; and
(c) Subject to the provisions contained in Section 62, every document admitted to registration shall without unnecessary delay be copied in the book appropriated therefor according to the order of its admission.
(2) All such books shall be authenticated at such intervals and in such manner as is from time to time prescribed by the Inspector-General.
Section 53. Entries to be numbered consecutively
All entries in each book shall be numbered in a consecutive series, which shall commence and terminate with the year, a fresh series being commenced at the beginning of each year.
Section 54. Current indexes and entries therein
In every office in which any of the books hereinbefore mentioned are kept, there shall be prepared current indexes of the contents of such books; and every entry in such indexes shall be made, so far as practicable, immediately after the registering officer has copied, or filed a memorandum of, the document to which it relates.
Section 55. Indexes to be made by registering officers, and their contents
(1) Four such indexes shall be made in all registration offices, and shall be named, respectively, Index No. 1, Index No. II, and Index No. III and Index No. IV.
(2) Index No. I shall contain the names and additions of all persons executing and of all persons claiming under every document entered or memorandum filed in Book No. 1
(3) Index No. II shall contain such particulars mentioned in Section 21 relating to every such document and memorandum as the Inspector-General from time to time directs in that behalf.
(4) Index No. III shall contain the names and additions of all persons executing every will and authority entered in Book No. 3, and of the executors and persons respectively appointed thereunder, and after the death of the testator or the donor (but not before) the names and additions of all persons claiming under the same.
(5) Index No. IV shall contain the names and additions of all persons executing and of all persons claiming under every document entered in Book No. 4.
(6) Each Index shall contain such other particulars, and shall be prepared in such form, as the Inspector-General from time to time directs.
Section 56. Repealed by Act No. 15 of 1929
56. [Repealed by Act No. 15 of 1929]
Section 57. Registering officers to allow inspection of certain books and indexes, and to give certified copies of entries
(1) Subject to the previous payment of the fees payable in that behalf, the Books Nos.1 and 2 and the Indexes relating to Book No. I shall be at all times open to inspection by any person applying to inspect the same; and, subject to the provisions of Section 62, copies of entries in such books shall be given to all persons applying for such copies.
(2) Subject to the same provisions, copies of entries in Book No. 3 in the Index relating thereto shall be given to the persons executing the documents to which such entries relate, or to their agents, and after the death of the executants (but not before) to any person applying for such copies.
(3) Subject to the same provisions, copies of entries in Book No. 4 and in the Index relating thereto shall be given to any person executing or claiming under the documents to which such entries respectively refer, or to his agent or representative.
(4) The requisite search under this section for entries in Book No. 3 and 4 shall be made only by the registering officer.
(5) All copies given under this section shall be signed and scaled by the registering officer, and shall admissible for the purpose of proving the contents of the original documents.
Section 58. Particulars to be endorsed on documents admitted to registration
(1) On every document admitted to registration, other than a copy of a decree or order, or a copy sent to a registering officer under Section 89, there shall be endorsed from time to time the following particulars, namely: –
(a) The signature and addition of every person admitting the execution of the document, and, if such execution has been admitted by the representative, assign or agent of any person, the signature and addition of such representative, assign or agent;
(b) The signature and addition of every person examined in reference to such document under any of the provisions of this Act; and
(c) Any payment of money or delivery of goods make in the presence of the registering officer in reference to the execution to the document, and any admission of receipt of consideration, in whole or in part, made in his presence in reference to such execution.
(2) If any person admitting the execution of a document refuses to endorse the same, the registering officer shall nevertheless register it, but shall at the same time endorse a note of such refusal.
Section 59. Endorsements to be dated and signed by registering officer
The registering officer shall affix the date and his signature to all endorsements made under section 52 and 58, relating to the same document and made in his presence on the same day.
Section 60. Certificate of registration
(1) After such of the provisions of sections 34, 35, 58 and 59 as apply to any document presented for registration have been complied with, the registering officer shall endorse thereon a certificate containing the word registered,” together with the number and page of the book in which the document has been copied.
(2) Such certificate shall be signed, sealed and dated by the registering officer, and shall then be admissible for the purpose of proving that the document has been duty registered in manner provided by this Act, and that the facts mentioned in the endorsements referred to in Section 59 have occurred as therein mentioned.
Section 61. Endorsements and certificate to be copied and document returned
(1) The endorsements and certificate referred to and mentioned in Sections 59 and 60 shall thereupon be copied into the margin of the Register-book, and the copy of the map or plan (if any) mentioned in Section 21 be filed in Book No. 1.
(2) The registration of the document shall thereupon be deemed complete, and the document shall then be returned to the person who presented the same for registration, or to such other person (if any) as he has nominated in writing in that behalf on the receipt mentioned in Section 52.
Section 62. Procedure on presenting document in language unknown to registering officer
(1) When a document is presented for registration under Section 19, the translation shall be transcribed in the register of documents of the nature of the original, and, together with the copy referred to in Section 19, shall be filed in the registration office.
(2) The endorsements and certificate respectively mentioned in Sections 59 and 60 shall be made on the original, and, for the purpose of making the copies and memoranda required by Sections 57, 64, 65 and 66, the translation shall be treated as it were the original.
Section 63. Power to administer oaths and record of substance of statements
(1) Every registering officer may at his discretion administer an oath to any person examined by him under the provisions of this Act.
(2) Every such officer may also at his discretion record a note of the substance of the statement made by each such person, and such statement shall be read over, or (if made in a language with which such person is not acquainted) interpreted to him in a language with which he is acquainted, and, if he admits the correctness of such note, it shall be signed by the registering officer.
(3) Every such note so signed shall be admissible for the purpose that the statements therein recorded were made by the persons and under the circumstances therein stated,
Section 64. Procedure where document relates to land in several sub-districts
Every Sub-Registrar on registering a non-testamentary document relating to immovable property not wholly situate in his own sub district shall make a memorandum thereof and of the endorsement and certificate (if any) thereon, and send the same to every other Sub-Registrar subordinate to the same Registrar as himself in whose sub district any part of such property is sit-date, and such Sub-Registrar shall file the memorandum in his Book No. 1.
Section 65. Procedure where document relates to land in several districts
(1) Every Sub-Registrar on registering a non-testamentary document relating to immovable property situate in more districts than one shall also forward a copy thereof and of the endorsement and certificate (if any) thereon, together with a copy of the map or plan (if any) mentioned in Section 21, to the Registrar of every district in which any part of such property is situate other than the district in which his own sub-district is situate.
(2) The Registrar on receiving the same shall file in his Book No. 1., the copy of the document and the copy of the map or plan (if any), and shall forward a memorandum of the document to each of the Sub-Registrars subordinate to him within whose sub district any part of such property is situate; and every Sub-Registrar receiving such memorandum shall file in his Book No. l.
Section 66. Procedure after registration of documents relating to land
(1) On registering any non-testamentary document relating to immovable property. the Registrar shall forward a memorandum of such document to each Sub-Registrar subordinate to himself in whose sub-district any part of the property is situate.
(2) The registered shall also forward a copy of such document together with a copy of the map or plan (if any) mentioned in Section 21, to every other Registrar in whose district any part of such property is situate.
(3) Such Registrar on receiving any such copy shall file it in his Book No. 1, and shall also send a memorandum of the copy to each of the Sub-Registrars subordinate to him within whose sub-district any part of the property is situate.
(4) Every Sub-Registrar receiving any memorandum under this section shall file it in his Book No. 1.
Section 67. Procedure after registration under Section 30 sub-section (2)
On any document being registered under Section 30, subsection (2), a copy of such document and of the endorsements and certificate thereon shall be forwarded to every Registrar within whose district any part of the property to which the instrument relates is situate, and the Registrar receiving such copy shall follow the procedure prescribed for him in Section 66, sub-section (1).
Section 68. Power of Registrar to superintend and control Sub-Registrars
(1) Every Sub-Registrar shall perform the duties of his office under the superintendence and control of the Registrar in whose district the office of such Sub-Registrar is situate.
(2) Every Registrar shall have authority to issue (whether on complaint or otherwise) any order consistent with this Act which he considers necessary in respect of any act or omission of any Sub-Registrar subordinate to him or in respect of the rectification of any error regarding the book or the office in which any document has been registered.
Section 69. Power of Inspector-General to superintend registration-offices and make rules
(1) The Inspector-General shall exercise a general superintendence over all the registration-offices in the territories under the State Government, and shall have power from time to time to make rules consistent with this Act-
(a) Providing for the safe custody of books, papers and documents;
(b) Declaring what languages shall be deemed to be commonly used in each district;
(c) Declaring what territorial divisions shall be recognized under Section 21;
(d) Regulating the amount of fines imposed under Section 25 and 34, respectively;
(e) Regulating the exercise of the discretion reposed in the registering officer by Section 63;
(f) Regulating the form in which registering officers are to make memoranda of documents;
(g) Regulating the authentication by Registrars and Sub-Registrars of the books kept in their respective offices under Section 51:
(gg) Regulating the manner in which the instruments referred to in subsection (2) of Section 88 may be presented for registration;
(h) Declaring the particulars to be contained in Indexes Nos. 1, 11, III and IV respectively;
(i) Declaring the holidays that shall be observed in the registration-offices; and
(j) Generally, regulating the proceedings of the Registrars and Sub-Registrar.
(2) The rules so made shall be submitted to the State Government for approval, and after they have been approved, they shall be published in the Official Gazette, Vince oil publication shall have effect as if enacted in this Act.
Section 70. Power of Inspector-General to remit fines
The Inspector-General may also, in the exercise of his discretion, remit wholly or in part the difference between any fine levied under Section 25 or Section 34, and the amount of the proper registration fee.
Section 71. Reasons for refusal to register to be recorded
(1) Every Sub-Registrar refusing to register a document, except on the ground that the property to which it relates is not situate within his sub-district, shall make an order of refusal and record his reasons for such order in his Book No. 2, and endorse the words “registration refused” on the document; and, on application made by any person executing of claiming under the document, shall, without payment and unnecessary delay, give him a copy of the reasons so recorded.
(2) No registering officer shall accept for registration a document so endorsed unless and until, under the provisions hereinafter contained, the document is directed to be registered.
Section 72. Appeal to Registrar from orders of Sub-Registrar refusing registration on ground other than denial of execution
(1) Except where the refusal is made on the ground of denial of execution, an appeal shall lie against an order of a Sub-Registrar refusing to admit a document to registration (whether the registration of such document is compulsory or optional) to the Registrar to whom such Sub-Registrar is subordinate, if presented to such Registrar within thirty days from the date of the order; and the Registrar may reverse or alter such order.
(2) If the order of the Registrar directs the document to be registered and the document is duly presented for registration within thirty days after the making of such order, the Sub-Registrar shall obey the same, and thereupon shall, so far follow the procedure prescribed in Sections 58, 59 and 60; and take effect as if the document had been registered when it was registration.
Section 73. Application to Registrar where Sub-Registrar refuses of denial execution
(1) When a Sub-Registrar has refused to the ground that any person by whom it purports to be executed, assign, denies its execution, any person claiming under such document, or his representative, assign or agent authorized as aforesaid, may, within thirty days after the making of the order of refusal, apply to the Registrar to whom such Sub-Registrar is subordinate in order to establish his right to have the document registered.
(2) Such application shall be in writing and shall be accompanied by a copy of the reasons recorded under Section 71, and the statements in the application shall be verified by the applicant in manner required by law for the verification of plaints.
Section 74. Procedure of Registrar on such application
In such case, and also where such denial as aforesaid is made before a Registrar in respect of a document presented for registration to him, the Registrar shall, as soon as conveniently may be, enquire. –
(a) Whether the document has been executed;
(b) Whether the requirements of the law for the time being in force have been complied with on the part of the applicant or person presenting the document for registration, as the case may be, so as to entitle the document to registration.
Section 75. Order by Registrar to register and procedure thereon
(1) If the Registrar finds that the document has been executed and that the said requirements have been complied with, he shall order the document to be registered.
(2) If the document is duly presented for registration within thirty days after the making of such order, the registering officer shall obey the same and thereupon shall, so far as may be practicable, follow the procedure prescribed in Sections 58, 59 and 60.
(3) Such registration shall take effect as if the document had been registered when it was first duly presented for registration.
(4) The Registrar may, for the purpose of any enquiry under Section 74, summon and enforce the attendance of witness, and compel them to give evidence, as if he were a Civil Court, and he may also direct by whom the whole or any part of the costs of any such enquiry shall be paid, and such costs shall be recoverable as if they had been awarded in a suit under the Code of Civil Procedure, 1908.
Section 76. Order of refusal by Registrar
(1) Every Registrar refusing. –
(a) To register a document except on the ground that the property to which it relates is not situate within his district or that the document ought to be registered in the office of a Sub-Registrar, or
(b) To direct the registration of a document under Section 72 or Section 75, shall make an order of refusal and record the reasons for such order in his Book No.2, and, on application made by any person executing or claiming under the document, shall, without unnecessary delay, give him a copy of the reasons so recorded.
(2) No appeal lies form any order by a Registrar under this section or Section 72.
Section 77. Suit in case of order of refusal by Registrar
(1) Where the Registrar refuses to order the document to be registered, under Section 72 or Section 76, any person claiming under such document, or his representative, assign or agent, may, within thirty days after the making of the order of refusal, institute in the Civil Court, within the local limits of whose original jurisdiction is situate the office in which the document is sought to be registered, a suit for a decree directing the document to be registered in such office if it be duly presented for registration within thirty days after the passing of such decree.
(2) The provisions contained in sub-section (2) and (3) of Section 75 shall, mutatis mutandis, apply to all documents presented for registration in accordance with any such decree, and, notwithstanding anything contained in this Act, the documents shall be receivable in evidence in such suit.
Section 78. Fees to be fixed by State Government
The State Government shall prepare a table of fees payable. –
(a) For the registration of documents;
(b) For searching the registers;
(c) For making or granting copies of reasons, entries or documents, before, on or after registration;
And of extra or additional fees payable;
(d) For every registration under Section 30;
(e) For the issue of commissions;
(f) For filing translations;
(g) For attending at private residences;
(h) For the safe custody and return of documents; and
(i) For such other matters as appear to the State Government necessary to effect the purposes of this Act.
Section 79. Publication of fees
A table of the fees so payable shall be published in the Official Gazette, and a copy thereof in English and the vernacular language of the district shall be exposed to public view in every registration office.
Section 80. Fees payable on presentation
All fees for the registration of documents under this Act shall be payable on the presentation of such documents.
Section 81. Penalty for incorrectly endorsing, copying, translating or registering documents with intent to injure
Every registering officer appointed under this Act and every person employed in his office for the purpose of this Act, who, being charged with the endorsing, copying, translating or registering of any document presented or deposited under its provisions, endorses, copies, translates or registers such document in a manner which he knows or believes to be incorrect intending thereby to cause or knowing it to be likely that he may thereby cause, injury, as defined in the Indian Penal Code, to any person, shall be punishable with imprisonment for a term which may extend to seven years, or with fine, or with both.
Section 82. Penalty for making false statement, delivering false copies or translations, false personation, and abatement. Whoever
(a) Intentionally makes any false statement, whether on oath or not, and whether it has been recorded or not, before any officer acting in execution of this Act, in any proceeding or enquiry under this Act; or
(b) Intentionally delivers to a registering officer, in any proceeding under Section 19 or Section 21, a false copy or translation of a document, or a false copy of a map or plan; or
(c) Falsely pesonates another, and in such assumed character presents any document, or makes any admission or statement, or causes any summons or commission to be issued, or does any other act in any proceeding or enquiry under this Act; or
(d) Abets anything made punishable by this Act;
Shall be punishable with imprisonment for a term, which may extend to seven years; or with fine, or with both.
Section 83. Registering officer may commence prosecutions
(1) A prosecution for any offence under this Act coming to the knowledge of a registering officer in his official capacity may be commenced by or with the permission of the Inspector-General, the Registrar or the Sub-Registrar, in whose territories, district or sub district, as the case may be, the offence has been committed.
(2) Offences punishable under this Act shall be triable by any Court or officer exercising powers not less than those of a Magistrate of the second class.
Section 84. Registering officers to be deemed public servants
(1) Every registering officer appointed under this Act shall be deemed to be a public servant within the meaning of the Indian Penal Code.
(2) Every person shall be legally bound to furnish information to such registering officer when required by him to do so.
(3) In Section 228 of the Indian Penal Code, the words “Judicial proceeding” shall be deemed to include any proceeding under this Act.
Section 85. Destruction of unclaimed documents
Documents (other than wills) remaining unclaimed in any registration-office for a period exceeding two years may be destroyed.
Section 86. Registering officer not liable for thing bona fide done or refused in his official capacity
No registering officer shall be liable to any suit, claim or demand by reason of anything in good faith done or refused in his official capacity.
Section 87. Nothing so done invalidated by defect in appointment or procedure
Nothing done in good faith pursuant to this Act or any Act hereby repealed, by any registering officer, shall be deemed invalid merely by reason of any defect in his appointment or procedure.
Section 88. Registration of documents executed by Government officers or certain public functionaries
(1) Notwithstanding anything contained in this Act, it shall not he necessary for
(a) Any officer of Government, or
(b) Any Administrator General, Official Trustee or Official Assignee, or
(c) The Sheriff, Receiver or Registrar of a High Court, or
(d) The holder for the time being of such other public office as may be specified in a notification in the Official Gazette issued in that behalf by the State Government, to appear in person or by agent at any registration-office in any proceeding connected with the registration of any instrument executed by him or in his favour, in his official capacity, or to sign as provided in Section 58.
(2) Any instrument executed by or in favour of an officer of Government or any other person referred to in subsection (1) may be presented for registration in such manner as may be prescribe by rules made under Section 69.
(3) The registering officer to whom any instrument is presented for registration under this section may, if he things fit, refer to any Security to Government or to such officer of Government or other person referred to in subsection (1) for information respecting the same and, oil being satisfied of the execution thereof shall register the instrument.
Section 89. Copies of certain orders, certificates and instruments to be sent to registering officers and filed
(1) Every officer granting a loan under the Land Improvement Loans Act, 1883, shall send a copy of his order to the registering officer within the local limits of whose jurisdiction the whole or any part of the land to be improved or of the land to be granted as collateral security, is situate, and such registering officer shall file the copy in his Book No. 1.
(2) Every Court granting a certificate of sale of immovable property under the Code of Civil Procedure, 1908, shall send a copy of such certificate to the registering officer within the local limits of whose jurisdiction the whole or any part of the immovable property comprised in such certificate is situate, and such officer shall file the copy in his Book No.1.
(3) Every officer granting a loan under the Agricultures Loans Act, 1884, shall send a copy of any instrument whereby immovable property is mortgaged for the purpose of securing the repayment of the loan, and, if any Such property is mortgaged for the sale purpose in the order granting the loan, a copy also of that order, to the registering officer within the local limits of whose jurisdiction the whole or any part of the property so mortgaged is situate, and such registering officer shall file the copy or copies, as the case may be, in his Book No. 1.
(4) Every Revenue-officer granting a certificate of sale to the purchaser of immovable property sold by public auction shall send a copy of the certificate to the registering officer within the local limits of whose jurisdiction the whole or any part of the immovable property comprised in the certificate is situate, and such officer shall file the copy in his Book No. 1.
Section 90. Exemption of certain documents executed by or in favour of Government
(1) Nothing contained in this Act or in the Indian Registration Act, 1877, or in the Indian Registration Act, 1871, or in any Act thereby repealed, shall be deemed to require, or to have at any time required, the registration of any of the following documents or maps, namely:
(a) Documents issued, received or attested by any officer engaged in making a settlement or revision or settlement of land-revenue, and which from part of the records of such settlement; or
(b) Documents and maps issued, received or authenticated by any officer engaged on behalf of Government in making or revising the survey of any land, and which form part of the record of such survey; or
(c) Documents which, under any law for the time being in force, are filed periodically in any revenue-office by Patwaris or other officers charged with the preparation of village records; or
(d) Sanads, inam title-deeds and other documents purporting to be or to evidence grants or assignments by Government of land or of any interest in land; or
(e) Notices given under Section 74 or Section 76 of the Bombay Land-Revenue Code, 1879, or relinquishment of occupancy by occupants, or of alienated land by holders of such land.
(2) All such documents and maps shall, for the purposes of sections 48 and 49, be deemed to have been and to be registered in accordance with the provisions of this Act.
Section 91. Inspection and copies of such documents
Subject to such rules and the previous payment of such fees as the State Government prescribes in this behalf, all documents and maps mentioned in Section 90, clauses (a), (b), (c) and (e), and all registers of the documents mentioned in clause (d), shall be open to the inspection of any person applying to inspect the same, and, subject as aforesaid, copies of such documents shall be given to all persons applying for such copies.
Section 92. Rep. by the Government of India (Adaption of Indian Laws) Order, 1937
92. [Rep. by the Government of India (Adaption of Indian Laws) Order, 1937.]
Section 93. Repeals
93. [Repeals.] Rep. by the Repealing Act, 1938 (1 of 1938),
Schedule
THE SCHEDULE
[Repeal of enactments.] Rep. by the Repealing Act 1938 (1 of 1938)]
November 30, 2014
Section 1. SHORT TITLE, EXTENT, APPLICATION AND COMMENCEMENT.
(1) This Act may be called the Payment of Gratuity Act, 1972.
(2) It extends to the whole of India: Provided that in so far as it relates to plantations or ports, it shall not extend to the State of Jammu and Kashmir.
(3) It shall apply to –
(a) every factory, mine, oilfield, plantation, port and railway company;
(b) every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months;
(c) such other establishments or class of establishments, in which ten or more employees are employed, or were employed, on any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf.
(3A) A shop or establishment to which this Act has become applicable shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time after it has become so applicable falls below ten.
(4) It shall come into force on such date as the Central Government may, by notification, appoint.
Section 2. DEFINITIONS.
In this Act, unless the context otherwise requires, –
(a) “appropriate Government” means, –
(i) in relation to an establishment –
(a) belonging to, or under the control of, the Central Government,
(b) having branches in more than one State,
(c) of a factory belonging to, or under the control of, the Central Government,
(d) of a major port, mine, oilfield or railway company, the Central Government, (ii) in any other case, the State Government;
(b) “completed year of service” means continuous service for one year;
(c) “continuous service” means continuous service as defined in section 2A;
(d) “controlling authority” means an authority appointed by the appropriate Government under section 3;
(e) “employee” means any person (other than an apprentice) employed on wages, in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity.
Explanation : (f) “employer” means, in relation to any establishment, factory, mine, oilfield, plantation, port, railway company or shop –
(i) belonging to, or under the control of, the Central Government or a State Government, a person or authority appointed by the appropriate Government for the supervision and control of employees, or where no person or authority has been so appointed, the head of the Ministry or the Department concerned,
(ii) belonging to, or under the control of, any local authority, the person appointed by such authority for the supervision and control of employees or where no person has been so appointed, the chief executive office of the local authority,
(iii) in any other case, the person, who, or the authority which, has the ultimate control over the affairs of the establishment, factory, mine, oilfield, plantation, port, railway company or shop, and where the said affairs are entrusted to any other person, whether called a manager, managing director or by any other name, such person;
(g) “factory” has the meaning assigned to it in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948);
(h) “family”, in relation to an employee, shall be deemed to consist of –
(i) in the case of a male employee, himself, his wife, his children, whether married or unmarried, his dependent parents and the dependent parents of his wife and the widow and children of his predeceased son, if any,
(ii) in the case of a female employee, herself, her husband, her children, whether married or unmarried, her dependent parents and the dependent parents of her husband and the widow and children of her predeceased son, if any :
Explanation : Where the personal law of an employee permits the adoption by him of a child, any child lawfully adopted by him shall be deemed to be included in his family, and where a child of an employee has been adopted by another person and such adoption is, under the personal law of the person making such adoption, lawful, such child shall be deemed to be excluded from the family of the employee;
(i) “major port” has the meaning assigned to it in clause (8) of section 3 of the Indian Ports Act, 1908 (15 of 1908);
(j) “mine” has the meaning assigned to it in clause (j) of sub-section (1) of section 2 of the Mines Act, 1952 (35 of 1952);
(k) “notification” means a notification published in the Official Gazette;
(l) “oilfield” has the meaning assigned to it in clause (e) of section 3 of the Oilfields (Regulation and Development) Act, 1948 (53 of 1948);
(m) “plantation” has the meaning assigned to it in clause (f) of section 2 of the Plantations Labour Act, 1951 (69 of 1951);
(n) “port” has the meaning assigned to it in clause (4) of section 3 of the Indian Ports Act, 1908 (15 of 1908);
(o) “prescribed” means prescribed by rules made under this Act;
(p) “railway company” has the meaning assigned to it in clause (5) of section 3 of the Indian Railways Act, 1890 (9 of 1890);
(q) “retirement” means termination of the service of an employee otherwise than on superannuation;
(r) “superannuation”, in relation to an employee, means the attainment by the employee of such age as is fixed in the contract or conditions of service at the age on the attainment of which the employee shall vacate the employment;
(s) “wages” means all emoluments which are earned by an employee while on duty or on leave in accordance with the terms and conditions of his employment and which are paid or are payable to him in cash and includes dearness allowance but does not include any bonus, commission, house rent allowance, overtime wages and any other allowance.
Section 2 A. CONTINUOUS SERVICE.
For the purposes of this Act, – (1) an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order treating the absence as break in service has been passed in accordance with the standing order, rules or regulations governing the employees of the establishment), lay off, strike or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act.
(2) where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer –
(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than – (i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and (ii) two hundred and forty days, in any other case;
(b) for the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than –
(i) ninety-five days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and
(ii) one hundred and twenty days, in any other case;
Explanation : For the purpose of clause (2), the number of days on which an employee has actually worked under an employer shall include the days on which –
(i) he has been laid-off under an agreement or as permitted by standing orders made under the Industrial Employment (Standing Order’s) Act, 1946 (20 of 1946), or under the Industrial Disputes Act, 1947 (14 of 1947), or under any other law applicable to the establishment;
(ii) he has been on leave with full wages, earned in the previous year;
(iii) he has been absent due to temporary disablement caused by accident arising out of and in the course of his employment; and
(iv) in the case of a female, she has been on maternity leave; so, however, that the total period of such maternity leave does not exceed twelve weeks.
(3) where an employee employed in a seasonal establishment, is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer for such period if he has actually worked for not less than seventy-five per cent of the number of days on which the establishment was in operation during such period.
Section 3. CONTROLLING AUTHORITY.
The appropriate Government may, by notification, appoint any officer to be a controlling authority, who shall be responsible for the administration of this Act and different controlling authorities may be appointed for different areas.
Section 4. PAYMENT OF GRATUITY.
(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, – (a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease : Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement :
Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.
Explanation : For the purposes of this section, disablement means such disablement as incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement.
(2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days’ wages based on the rate of wages last drawn by the employee concerned : Provided that in the case of a piece-rated employee, daily wages shall be computed on the average of the total wages received by him for a period of three months immediately preceding the termination of his employment, and, for this purpose, the wages paid for any overtime work shall not be taken into account :
Provided further that in the case of an employee who is employed in a seasonal establishment and who is not so employed throughout the year, the employer shall pay the gratuity at the rate of seven days’ wages for each season.
Explanation : In the case of a monthly rated employee, the fifteen days’ wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying the quotient by fifteen.
(3) The amount of gratuity payable to an employee shall not exceed three lakhs and fifty thousand rupees.
(4) For the purpose of computing the gratuity payable to an employee who is employed, after his disablement, on reduced wages, his wages for the period preceding his disablement shall be taken to be the wages received by him during that period, and his wages for the period subsequent to his disablement shall be taken to be the wages as so reduced.
(5) Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer.
(6) Notwithstanding anything contained in sub-section (1), –
(a) the gratuity of an employee, whose services have been terminated for any act, willful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused.
(b) the gratuity payable to an employee may be wholly or partially forfeited –
(i) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or
(ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.
Section 4 A. COMPULSORY INSURANCE.
(1) With effect from such date as may be notified by the appropriate Government in this behalf, every employer, other than an employer or an establishment belonging to, or under the control of, the Central Government or a State Government, shall, subject to the provisions of sub-section (2), obtain an insurance in the manner prescribed, for his liability for payment towards the gratuity under this Act, from the Life Insurance Corporation of India established under the Life Insurance Corporation of India Act, 1956 (31 of 1956) or any other prescribed insurer : Provided that different dates may be appointed for different establishments or class of establishments or for different areas.
(2) The appropriate Government may, subject to such conditions as may be prescribed, exempt every employer who had already established an approved gratuity fund in respect of his employees and who desires to continue such arrangement, and every employer employing five hundred or more persons who establishes an approved gratuity fund in the manner prescribed from the provisions of sub-section (1).
(3) For the purpose of effectively implementing the provisions of this section, every employer shall within such time as may be prescribed get his establishment registered with the controlling authority in the prescribed manner and no employer shall be registered under the provisions of this section unless he has taken an insurance referred to in sub-section (1) or has established an approved gratuity fund referred to in sub-section (2).
(4) The appropriate Government may, by notification, make rules to give effect to the provisions of this section and such rules may provide for the composition of the Board of Trustees of the approved gratuity fund and for the recovery by the controlling authority of the amount of the gratuity payable to an employee from the Life Insurance Corporation of India or any other insurer with whom an insurance has been taken under sub-section (1), or as the case may be, the Board of Trustees of the approved gratuity fund.
(5) Where an employer fails to make any payment by way of premium to the insurance referred to in sub-section (1) or by way of contribution to an approved gratuity fund referred to in sub-section (2), he shall be liable to pay the amount of gratuity due under this Act (including interest, if any, for delayed payments) forthwith to the controlling authority.
(6) Whoever contravenes the provisions of sub-section (5) shall be punishable with fine which may extend to ten thousand rupees and in the case of a continuing offence with a further fine which may extend to one thousand rupees for each day during which the offence continues.
Explanation : In this section “approved gratuity fund” shall have the same meaning as in clause (5) of section 2 of the Income-tax Act, 1961 (43 of 1961).
Section 5. POWER TO EXEMPT.
(1) The appropriate Government may, by notification, and subject to such conditions as may be specified in the notification, exempt any establishment, factory, mine, oilfield, plantation, port, railway company or shop to which this Act applies from the operation of the provisions of this Act if, in the opinion of the appropriate Government, the employees in such establishment, factory, mine, oilfield, plantation, port, railway company or shop are in receipt of gratuity or pensionary benefits not less favourable than the benefits conferred under this Act.
(2) The appropriate Government may, by notification and subject to such conditions as may be specified in the notification, exempt any employee or class of employees employed in any establishment, factory, mine, oilfield, plantation, port, railway company or shop to which this Act applies from the operation of the provisions of this Act, if, in the opinion of the appropriate Government, such employee or class of employees are in receipt of gratuity or pensionary benefits not less favourable than the benefits conferred under this Act.
(3) A notification issued under sub-section (1) or sub-section (2) may be issued retrospectively a date not earlier than the date of commencement of this Act, but no such notification shall be issued so as to prejudicially affect the interests of any person.
Section 6. NOMINATION.
(1) Each employee, who has completed one year of service, shall make, within such time, in such form and in such manner, as may be prescribed, nomination for the purpose of the second proviso to sub-section (1) of section 4.
(2) An employee may in his nomination, distribute the amount of gratuity payable to him, under this Act amongst more than one nominee.
(3) If an employee has a family at the time of making a nomination, the nomination shall be made in favour of one or more members of his family, and any nomination made by such employee in favour of a person who is not a member of his family, shall be void.
(4) If at the time of making a nomination the employee has no family, the nomination may be made in favour of any person or persons but if the employee subsequently acquires a family, such nomination shall forthwith become invalid and the employee shall make, within such time as may be prescribed, a fresh nomination in favour of one or more members of his family.
(5) A nomination may, subject to the provisions of sub-sections (3) and (4), be modified by an employee at any time, after giving to his employer a written notice in such form and in such manner as may be prescribed, of his intention to do so.
(6) If a nominee predeceases the employee, the interest of the nominee shall revert to the employee who shall make a fresh nomination, in the prescribed form, in respect of such interest.
(7) Every nomination, fresh nomination or alteration of nomination, as the case may be, shall be sent by the employee to his employer, who shall keep the same in his safe custody.
Section 7. DETERMINATION OF THE AMOUNT OF GRATUITY.
(1) A person who is eligible for payment of gratuity under this Act or any person authorised, in writing, to act on his behalf shall send a written application to the employer, within such time and in such form, as may be prescribed, for payment of such gratuity.
(2) As soon as gratuity becomes payable, the employer shall, whether an application referred to in sub-section (1) has been made or not, determine the amount of gratuity and give notice in writing to the person to whom the gratuity is payable and also to the controlling authority specifying the amount of gratuity so determined.
(3) The employer shall arrange to pay the amount of gratuity within thirty days from the date it becomes payable to the person to whom the gratuity is payable.
(3A) If the amount of gratuity payable under sub-section (3) is not paid by the employer within the period specified in sub-section (3), the employer shall pay, from the date on which the gratuity becomes payable to the date on which it is paid, simple interest at such rate, not exceeding the rate notified by the Central Government from time to time for repayment of long-term deposits, as that Government may, by notification specify : Provided that no such interest shall be payable if the delay in the payment is due to the fault of the employee and the employer has obtained permission in writing from the controlling authority for the delayed payment on this ground.
(4) (a) If there is any dispute as to the amount of gratuity payable to an employee under this Act or as to the admissibility of any claim of, or in relation to, an employee for payment of gratuity, or as to the person entitled to receive the gratuity, the employer shall deposit with the controlling authority such amount as he admits to be payable by him as gratuity.
(b) Where there is a dispute with regard to any matter or matters specified in clause (a), the employer or employee or any other person raising the dispute may make an application to the controlling authority for deciding the dispute.
(c) The controlling authority shall, after due inquiry and after giving the parties to the dispute a reasonable opportunity of being heard, determine the matter or matters in dispute and if, as a result of such inquiry any amount is found to be payable to the employee, the controlling authority shall direct the employer to pay such amount or, as the case may be, such amount as reduced by the amount already deposited by the employer.
(d) The controlling authority shall pay the amount deposited, including the excess amount, if any, deposited by the employer, to the person entitled thereto.
(e) As soon as may be after a deposit is made under clause (a), the controlling authority shall pay the amount of the deposit –
(i) to the applicant where he is the employee; or
(ii) where the applicant is not the employee, to the nominee or, as the case may be, the guardian of such nominee or heir of the employee if the controlling authority is satisfied that there is no dispute as to the right of the applicant to receive the amount of gratuity.
(5) For the purpose of conducting an inquiry under sub-section (4), the controlling authority shall have the same powers as are vested in a court, while trying a suit, under the Code of Civil Procedure, 1908 (5 of 1908), in respect of the following matters, namely :-
(a) enforcing the attendance of any person or examining him on oath;
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavits;
(d) issuing commissions for the examination of witnesses.
(6) Any inquiry under this section shall 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).
(7) Any person aggrieved by an order under sub-section (4) may, within sixty days from the date of the receipt of the order, prefer an appeal to the appropriate Government or such other authority as may be specified by the appropriate Government in this behalf : Provided that the appropriate Government or the appellate authority, as the case may be, may, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal within the said period of sixty days, extend the said period by a further period of sixty days.
Provided further that no appeal by an employer shall be admitted unless at the time of preferring the appeal, the appellant either produces a certificate of the controlling authority to the effect that the appellant has deposited with him an amount equal to the amount of gratuity required to be deposited under sub-section (4), or deposits with the appellate authority such amount.
(8) The appropriate Government or the appellate authority, as the case may be, may, after giving the parties to the appeal a reasonable opportunity of being heard, confirm, modify or reverse the decision of the controlling authority.
Section 7 A. INSPECTORS.
(1) The appropriate Government may, by notification, appoint as many Inspectors, as it deems fit, for the purposes of this Act.
(2) The appropriate Government may, by general or special order, define the area to which the authority of an Inspector so appointed shall extend and where two or more Inspectors are appointed for the same area, also provide, by such order, for the distribution or allocation of work to be performed by them under this Act.
(3) Every Inspector shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code, 1860 (45 of 1860).
Section 7 B. POWERS OF INSPECTORS.
(1) Subject to any rules made by the appropriate Government in this behalf, an Inspector may, for the purpose of ascertaining whether any of the provisions of this Act or the conditions, if any, of any exemption granted thereunder, have been complied with, exercise all or any of the following powers, namely :-
(a) require an employer to furnish such information as he may consider necessary;
(b) enter and inspect, at all reasonable hours, with such assistants (if any),
being persons in the service of the Government or local or any public authority, as he thinks fit, any premises of or place in any factory, mine, oilfield, plantation, port, railway company, shop or other establishment to which this Act applies, for the purpose of examining any register, record or notice or other document required to be kept or exhibited under this Act or the rules made thereunder, or otherwise kept or exhibited in relation to the employment of any person or the payment of gratuity to the employees, and require the production thereof for inspection;
(c) examine with respect to any matter relevant to any of the purposes aforesaid, the employer or any person whom he finds in such premises or place and who, he has reasonable cause to believe, is an employee employed therein;
(d) make copies of, or take extracts from, any register, record, notice or other document, as he may consider relevant, and where he has reason to believe that any offence under this Act has been committed by an employer, search and seize with such assistance as he may think fit, such register, record, notice or other document as he may consider relevant in respect of that offence;
(e) exercise such other powers as may be prescribed.
(2) Any person required to produce any register, record, notice or other document or to give any information by an Inspector under sub-section (1) shall be deemed to be legally bound to do so within the meaning of sections 175 and 176 of the Indian Penal Code 1860 (45 of 1860).
(3) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974) shall so far as may be, apply to any search or seizure under this section as they apply to any search or seizure made under the authority of a warrant issued under section 94 of that Code.
Section 8. RECOVERY OF GRATUITY.
If the amount of gratuity payable under this Act is not paid by the employer, within the prescribed time, to the person entitled thereto, the controlling authority shall, on an application made to it in this behalf by the aggrieved person, issue a certificate for that amount to the Collector, who shall recover the same, together with compound interest thereon at such rate as the Central Government may, by notification, specify, from the date of expiry of the prescribed time, as arrears of land revenue and pay the same to the person entitled thereto :
Provided that the controlling authority shall, before issuing a certificate under this section, give the employer a reasonable opportunity of showing cause against the issue of such certificate :
Provided further that the amount of interest payable under this section shall, in no case exceed the amount of gratuity payable under this Act.
Section 9. PENALTIES.
(1) Whoever, for the purpose of avoiding any payment to be made by himself under this Act or of enabling any other person to avoid such payment, knowingly makes or causes to be made any false statement or false representation shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to ten thousand rupees or with both.
(2) An employer who contravenes, or makes default in complying with, any of the provisions of this Act or any rule or order made thereunder shall be punishable with imprisonment for a term which shall not be less than three months but which may extend to one year, or with fine which shall not be less than ten thousand rupees but which may extend to twenty thousand rupees, or with both :
Provided that where the offence relates to non-payment of any gratuity payable under this Act, the employer shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to two years unless the court trying the offence, for reasons to be recorded by it in writing, is of opinion that a lesser term of imprisonment or the imposition of a fine would meet the ends of justice.
Section 10. EXEMPTION OF EMPLOYER FROM LIABILITY IN CERTAIN CASES.
Where an employer is charged with an offence punishable under this Act, he shall be entitled, upon complaint duly made by him and on giving to the complainant not less than three clear days’ notice in writing of his intention to do so, to have any other person whom he charges as the actual offender brought before the court at the time appointed for hearing the charge; and if, after the commission of the offence has been proved, the employer proves to the satisfaction of the court – (a) that he has used due diligence to enforce the execution of this Act, and
(b) that the said other person committed the offence in question without his knowledge, consent or connivance, that other person shall be convicted of the offence and shall be liable to the like punishment as if he were the employer and the employer shall be discharged from any liability under this Act in respect of such offence :
Provided that in seeking to prove as aforesaid, the employer may be examined on oath and his evidence and that of any witness whom he calls in his support shall be subject to cross-examination on behalf of the person he charges as the actual offender and by the prosecutor :
Provided further that, if the person charged as the actual offender by the employer cannot be brought before the court at the time appointed for hearing the charge, the court shall adjourn the hearing from time to time for a period not exceeding three months and if by the end of the said period the person charged as the actual offender cannot still be brought before the court, the court shall proceed to hear the charge against the employer and shall, if the offence be proved, convict the employer.
Section 11. COGNIZANCE OF OFFENCES.
(1) No court shall take cognizance of any offence punishable under this Act save on a complaint made by or under the authority of the appropriate Government : Provided that where the amount of gratuity has not been paid, or recovered, within six months from the expiry of the prescribed time, the appropriate Government shall authorise the controlling authority to make a complaint against the employer, whereupon the controlling authority shall, within fifteen days from the date of such authorisation, make such complaint to a Magistrate having jurisdiction to try the offence.
(2) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Act.
Section 12. PROTECTION OF ACTION TAKEN IN GOOD FAITH.
No suit or other legal proceeding shall lie against the controlling authority or any other person in respect of anything which is in good faith done or intended to be done under this Act or any rule or order made thereunder.
Section 13. PROTECTION OF GRATUITY.
No gratuity payable under this Act and no gratuity payable to an employee employed in any establishment, factory, mine, oilfield, plantation, port, railway company or shop exempted under section 5 shall be liable to attachment in execution of any decree or order of any civil, revenue or criminal court.
Section 14. ACT TO OVERRIDE OTHER ENACTMENTS, ETC.
The provisions of this Act or any rule made thereunder shall have effect notwithstanding anything inconsistent therewith contained in any enactment other than this Act or in any instrument or contract having effect by virtue of any enactment other than this Act.
Section 15. POWER TO MAKE RULES.
(1) The appropriate Government may, by notification make rules for the purpose of carrying out the provisions of this Act. (2) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall, thereafter, have effect only in such modified form or be of no effect as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
November 30, 2014
Section 1. Title and extent.
Act title 18 of 1891 [1st October, 1891.]
An Act to amend the Law of Evidence with respect to Bankers’ Books. WHEREAS it is expedient to amend the Law of Evidence with respect to Bankers’ Books; It is hereby enacted as follows:
(1) This Act may be called THE BANKER’S BOOKS EVIDENCE ACT, 1891.
(2) It extends to 2the whole of India 3[except the State of Jammu and Kashmir.]4[***] 5[***]
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1. This Act has been extended to Pondicherry by Act 26 of 1968, sec. 3 and Sch.
2. Subs. by A.O. 1950, for “all the provinces of India ”.
3. Subs. by Act 3 of 1951, sec. 3 and Sch., for “except Part B States”.
4. The word “and” rep. by Act 10 of 1914.
5. Sub-section (3) rep. by Act 10 of 1914.
Section 2. Definitions.
In this Act, unless there is something repugnant in the subject or context,-
2[(1) “Company” means any company as defined in Section 3 of the Companies Act,1956, and includes a foreign company within the meaning of Section 591 of that Act;
(1A) “Corporation” means any body corporate established by any law for the time being in force in India and includes the Reserve Bank of India, the State Bank of India and any subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959.]
(2) “Bank” and “bankers”, mean-
3[(a) Any company or corporation carrying on the business of banking.]
(b) Any partnership of individual to whose books the provisions of this Act shall have been extended as hereinafter provided,
4[(c) Any post office savings bank or money order office;]
5(3) “Bankers’ books” include ledgers, day-books, cash-books, account-books and all other books used in the ordinary business of a bank;
6(4) “Legal proceeding” means any proceeding or inquiry in which evidence is or may be given, and includes an arbitration;
(5) “The Court” means the person or persons before whom a legal proceeding is held or taken;
(6) “Judge” means a Judge of a High Court;
(7) “Trail” means any hearing before the Court at which evidence is taken; and
78 “Certified copy” means a copy of any entry in the books of a bank together with certificate written at the foot of such copy that it is a true copy of such entry, that such entry is contained in one of the ordinary books of the bank and was made in the usual and ordinary course of business, and that such book is still in the custody of the bank, such certificate being dated and subscribed by the principal accountant or manager of the bank with his name and official title.
(b) consist of printouts of data stored in a floppy, disc, tape or any other electro-magnetic data storage device, a printout of such entry or a copy of such printout together with such statements certified in accordance with the provisions of section 2A.]
8[(c) a printout of any entry in the books of a bank stored in a micro film, magnetic tape or in any other form of mechanical or electronic data retrieval mechanism obtained by a mechanical or other process which in itself ensures the accuracy of such printout as a copy of such entry and such printout contains the certificate in accordance with the provisions of section 2A.]
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1. This Act has been extended to Pondicherry by Act 26 of 1968, sec. 3 and Sch.
2. Subs. by Act 56 of 1962, sec. 4, for clause (1) (w.e.f. 14-12-1962).
3. Subs. by Act 56 of 1962, sec. 4, for sub-clause (a) (w.e.f. 14-12-1962).
4. Added by Act 1 of 1893, sec. 2.
5. Subs. by Act 55 of 2002, sec. 11, for clause (3) (w.e.f. 6-2-2003). Earlier clause (3) was substituted by Act 21 of 2000, sec. 93 and Sch. III (w.e.f. 17-10-2000). Clause (3), before substitution by Act 55 of 2002, stood as under:
‘(3) “bankers’ books” include ledgers, day-books, cash-books, account-books and all other books used in the ordinary bussiness of a bank whether kept in the written form or as printouts of data stored in a floppy disc, tape or any other form of electro-magnetic data storage device;’.
6. Subs. by Act 1 of 1984, sec. 2(a)(i), for clause (4) (w.e.f. 15-2-1984).
7. Subs. by Act 21 of 2000, sec. 93 and Sch. III, for clause (8) (w.e.f. 17-10-2000). Earlier clause (8) was amended by Act 1 of 1984, sec. 2(a)(ii) (w.e.f. 15-2-1984).
8. Ins. by Act 55 of 2002, sec. 11 (w.e.f. 6-2-2003).
Section 2A. Conditions in the printout.
1[2A. Conditions in the printout.—A printout of entry or a copy of printout referred to in sub-section (8) of section 2 shall be accompanied by the following, namely:—
(a) a certificate to the effect that it is a printout of such entry or a copy of such printout by the principal accountant or branch manager; and
(b) a certificate by a person in-charge of computer system containing a brief description of the computer system and the particulars of—
(A) the safeguards adopted by the system to ensure that data is entered or any other operation performed only by authorised persons;
(B) the safeguards adopted to prevent and detect unauthorised change of data;
(C) the safeguards available to retrieve data that is lost due to systemic failure or any other reasons;
(D) the manner in which data is transferred from the system to removable media like floppies, discs, tapes or other electro-magnetic data storage devices;
(E) the mode of verification in order to ensure that data has been accurately transferred to such removable media;
(F) the mode of identification of such data storage devices;
(G) the arrangements for the storage and custody of such storage devices;
(H) the safeguards to prevent and detect any tampering with the system; and
(I) any other factor which will vouch for the integrity and accuracy of the system.
(c) a further certificate from the person in-charge of the computer system to the effect that to the best of his knowledge and belief, such computer system operated properly at the material time, he was provided with all the relevant data and the printout in question represents correctly, or is appropriately derived from, the relevant data.]
1. Ins. by Act 21 of 2000, sec. 93 and Sch. III (w.e.f. 17-10-2000).
Section 3. Powers to extend provisions of Act.
The State Government may from time to time, by notification in the Official Gazette, extend the provisions of this Act to the books of any partnership or individual carrying on business of bankers within the territories under its administration, and keeping a set of not less than three ordinary account-books namely, a cash-book, a day-book or journal, an a ledger, and may in like manner rescind any such notification.
Section 4. Mode of proof of entries in Bankers’ Books.
Subject to the provisions of this Act, a certified copy of any entry in a Banker’s book shall in all legal proceedings be received as prima facie evidence of the existence of such entry, and shall be admitted as evidence of the matters, transactions and accounts therein recorded in every case where, and to the same extent as, the original entry itself is now by law admissible, but not further or otherwise.
Section 5. Case in which officer of bank not comparable to produce books.
No officer of a bank shall in any legal proceeding to which the bank is not a party be comparable to produce any baker’s book the contents of which can be proved under this Act, or to appear as a witness to prove the matters, transactions and accounts therein recorded, unless by order of the Court or a Judge made for special cause.
Section 6. Inspection of Books by order of Court or Judge.
(1) On the application of any party to a legal proceeding the Court or a Judge may order that such party be at liberty to inspect and take copies of any entries in a Banker’s Book for any of the purposes of such proceeding, or may order the bank to prepare and produce, within a time to be specified in the order, certified copies of all such entries, accompanied by a further certificate that no other entries are to be found in the books of the Bank relevant to the matters in issue in such proceeding, and such further certificate shall be dated and subscribed in manner herein before directed in reference to certified copies.
(2) An Order under this or the preceding Section may be made either with or without summoning the Bank and shall be served on the Bank three clear days (exclusive of Bank holidays) before the same is to be obeyed, unless the Court or Judge shall otherwise direct.
(3) The Bank may at any time before the time limited for obedience to any such order as aforesaid either offer to produce their books at the trial or give notice of their intention to show cause against such Order, and thereupon the same shall not be enforced without further order.
Section 7. Costs.
(1) The costs of any application to the Court or a Judge under or for the purposes of this Act and the costs of anything done or to be done under an Order of the Court or a Judge made under or for the purposes of this Act shall be in the discretion of the Court or Judge, who may further Order such costs or any part thereof to be paid to any party by the Bank if they have been incurred in consequence of any fault or improper delay on the part of the Bank.
(2) Any Order made under this Section for the payment of costs to or by a Bank may be enforced as if the Bank were a party to the proceeding.
(3) Any Order under this Section awarding costs may, on application to any Court of Civil Judicature designated in the Order, be executed by such Court as if the Order were a decree for money passed by itself:
Provided that nothing in this Sub-Section shall be construed to derogate from any power which the Court or Judge making the Order may poss for the enforcement of its or his directions with respect to the payment of costs.
Section 8. Order of Court to be construed to be order made by specified officer.
2[8. Order of Court to be construed to be order made by specified officer. —In the application of sections 5, 6 and 7 to any investigation or inquiry referred to in sub-clause (iii) of clause (4) of section 2, the order of a Court or a Judge referred to in the said sections shall be construed as referring to an order made by an officer of a rank not lower than the rank of a Superintendent of Police as may be specified in this behalf by the appropriate Government.
Explanation .—In this section, “appropriate Government” means the Government by which the police officer or any other person conducting the investigation or inquiry is employed.]
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1. This Act has been extended to Pondicherry by Act 26 of 1968, sec. 3 and Sch.
2. Ins. by Act 1 of 1984, sec. 2(b) (w.e.f. 15-2-1984).
November 30, 2014
Section 1. Short title, extent, commencement and application.
(1) This act may be called the Employees’ State Insurance Act, 1948.
(2) It extends to the whole of India.1[***]
(3) It shall come into force on such date or dates as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and 2for different States or for different parts thereof.
(4) It shall apply, in the first instance, to all factories (including factories belonging to the Government other than seasonal factories :
3Provided that nothing contained in this sub-section shall apply to a factory or establishment belonging to or under the control of the Government whose employees are otherwise in receipt of benefits substantially similar or superior to the benefits provided under this Act.
(5) The appropriate Government may, in consultation with the Corporation and 4where the appropriate Government is a State Government, with the approval of the Central Government, after giving six months’ notice of its intention of so doing by notification in the Official Gazette, extend the provision of this Act or any of them, to any other establishment or class of establishments, industrial, commercial, agriculture or otherwise :
5Provided that where the provisions of this Act have been brought into force in any part of a State, the said provisions shall stand extended to any such establishment or class of establishments within that part if the provisions have already been extended to similar establishment or class of establishments in another part of that State.
6 (6) A factory or an establishment to which this Act applies shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time falls below the limit specified by or under this Act or the manufacturing process therein ceases to be carried on with the aid of power.
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1. The words “except the State of Jammu and Kashmir” which were subs. for “except Part B States” by Act 53 of 1951, sec. 2, have been omitted by Act 51 of 1970, sec. 2 and Sch. (w.e.f. 1-9-1971).
2. Subs. by Act 53 of 1951, sec. 2, for “for different States” (w.e.f. 6-10-1951).
3. Ins. by Act 29 of 1989, sec. 2(i) (w.e.f. 20-10-1989).
4. Subs. by Act 53 of 1951, sec. 2, for “with the approval of the Central Government” (w.e.f. 6-10-1951).
5. Ins. by Act 29 of 1989, sec. 2(ii) (w.e.f. 16-5-1990).
6. Ins. by Act 29 of 1989, sec. 2(iii) (w.e.f. 20-10-1989).
Section 2. Definitions.
In this Act, unless there is anything repugnant in the subject or context, – (1) “appropriate Government” means, in respect of establishment under the control of the Central Government or 1a railway administration or a major port or a mine oilfield, the Central Government, and in all other cases, the State Government;
2[***]
(3) “confinement” means labour resulting in the issue of a living child, or labour after twenty six weeks of pregnancy resulting in the issue of a child whether alive or dead;
(4) “contribution” means the sum of money payable to the Corporation by the principal employer in respect of an employee and includes any amount payable by or on behalf of the employee in accordance with the provisions of this Act;
3[***]
4(6) “Corporation” means the Employees State Insurance Corporation set up under this Act;
(6A) “dependant” means any of the following relatives of a deceased insured person, namely :- (i) a widow, a minor legitimate or adopted son, an unmarried legitimate or adopted 5daughter;
6(ia) a widowed mother;
(ii) if wholly dependent on the earnings of the insured person at the time of his death, a legitimate or adopted son or daughter who has attained the age of eighteen years and is infirm;
(iii) if wholly or in part dependent on the earnings of the insured person at the time of his death, –
(a) a parent other than a widowed mother,
(b) a minor illegitimate son, an unmarried illegitimate daughter or a daughter legitimate or adopted or illegitimate if married and a minor or if widowed and a minor,
(c) a minor brother or an unmarried sister or a widowed sister if a minor,
(d) a widowed daughter-in-law,
(e) a minor child of a pre-deceased son,
(f) a minor child of a pre-deceased daughter where no parent of the child is alive, or
(g) a paternal grand-parent if no parent of the insured person is alive;
(7) “duly appointed” means appointed in accordance with the provisions of this Act or with the rules or regulations made thereunder;
7(8) “employment injury” means a personal injury to an employee caused by accident or an occupational disease arising out of and in the course of his employment, being an insurable employment, whether the accident occurs or the occupational disease is contracted within or outside the territorial limits of India;
(9) “employee” means any person employed for wages in or in connection with the work of a factory or establishment to which this Act applies and –
(i) who is directly employed by the principal employer on any work of, or incidental or preliminary to or connected with the work of, the factory or establishment, whether such work is done by the employee in the factory or establishment or elsewhere; or
(ii) who is employed by or through an immediate employer on the premises of the factory or establishment or under the supervision of the principal employer or his agent on work which is ordinarily part of the work of the factory or establishment or which is preliminary to the work carried on in or incidental to the purpose of the factory or establishment; or
(iii) whose services are temporarily lent or let on hire to the principal employer by the person with whom the person whose services are so lent or let on hire has entered into a contract of service; 8and includes any person employed for wages on any work connected with the administration of the factory or establishment or any part, department or branch thereof or with the purchase of raw materials for, or the distribution or sale of the products of, the factory or establishment 9or any person engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961), or under the standing orders of the establishment; but does not include –
(a) any member of 10the Indian naval, military or air forces; or
11(b) any person so employed whose wages (excluding remuneration for overtime work) exceed 12such wages as may be prescribed by the Central Government :
Provided that an employee whose wages (excluding) remuneration for overtime work) exceed 12such wages as may be prescribed by the Central Government at any time after (and not before) the beginning of the contribution period, shall continue to be an employee until the end of that period;
(10) “exempted employee” means an employee who is not liable under this Act to pay the employees’ contribution.
13(11) “family” means all or any of the following relatives of an insured person, namely :- (i) a spouse;
(ii) a minor legitimate or adopted child dependent upon the insured person;
(iii) a child who is wholly dependent on the earnings of the insured person and who is (a) receiving education, till he or she attains the age of twenty-one years, (b) an unmarried daughter;
(iv) a child who is infirm by reason of any physical or mental abnormality or injury and is wholly dependent on the earnings of the insured person, so long as the infirmity continues;
(v) dependent parents;
(12) “factory” means any premises including the precincts thereof – (a) whereon ten or more persons are employed or were employed for wages on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power or is ordinarily so carried on, or
(b) whereon twenty or more persons are employed or were employed for wages on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power or is ordinarily so carried on, but does not include a mine subject to the operation of the Mines Act, 1952 (35 of 1952) or a railway running shed;
(13) “immediate employer” in relation to employees employed by or through him, means a person who has undertaken the execution, on the premises of factory or an establishment to which this Act applies or under the supervision of the principal employer or his agent, of the whole or any part of any work which is ordinarily part of the work of the factory or establishment of the principal employer or is preliminary to the work carried on in, or incidental to the purpose of, any such factory or establishment, and includes a person by whom the services of an employee who has entered into a contract of service with him are temporarily lent or let on hire to the principal employer 14and includes a contractor;
15(13A) “insurable employment” means an employment in a factory or establishment to which this Act applies;
(14) “insured person” means a person who is or was an employee in respect of whom contributions are or were payable under this Act and who is, by reason thereof, entitled to any of the benefits provided by this Act;
15(14A) “managing agent” means any person appointed or acting as the representative of another person for the purpose of carrying on such other person’s trade or business, but does not include an individual manager subordinate to an employer;
16(14AA) “manufacturing process” shall have the meaning assigned to it in the Factories Act, 1948 (63 of 1948);
(14B) “mis-carriage” means expulsion of the contents of a pregnant uterus at any period prior to or during the twenty-sixth week of pregnancy but does not include any mis-carriage, the causing of which is punishable under the Indian Penal Code (45 of 1860);
(15) “occupier” of the factory shall have the meaning assigned to it in the Factories Act, 171948 (63 of 1948);
15(15A) “permanent partial disablement” means such disablement of a permanent nature, as reduces the earning capacity of an employee in every employment which he was capable of undertaking at the time of the accident resulting in the disablement : Provided that every injury specified in Part II of the Second Schedule shall be deemed to result in permanent partial disablement.
(15B) “permanent total disablement” means such disablement of a permanent nature as incapacitates an employee for all work which he was capable of performing at the time of the accident resulting in such disablement :
Provided that permanent total disablement shall be deemed to result from every injury specified in Part I of the Second Schedule or from any combination of injuries specified in Part II thereof where the aggregate percentage of the loss of earning capacity, as specified in the said Part II against those injuries, amounts to one hundred per cent or more.
18(15C) “power” shall have the meaning assigned to it in the Factories Act, 1948 (63 of 1948);
(16) “prescribed” means prescribed by rules made under this Act;
(17) “principal employer” means – (i) in a factory, the owner or occupier of the factory and includes the managing agent of such owner or occupier, the legal representative of a deceased owner or occupier, and where a person has been named as the manager of the factory under 19[the Factories Act, 1948 (63 of 1948)], the person so named;
(ii) in any establishment under the control of any department of any Government in India, the authority appointed by such Government in this behalf or where no authority is so appointed, the head of the department;
(iii) in any other establishment, any person responsible for the supervision and control of the establishment;
(18) “regulation” means a regulation made by the Corporation;
(19) “Schedule” means a Schedule to this Act;
20(19A) “seasonal factory” means a factory which is exclusively engaged in one or more of the following manufacturing processes, namely, cotton ginning, cotton or jute pressing, decortications of ground-nuts, the manufacture of coffee, indigo, lac, rubber, sugar (including gur) or tea or any manufacturing process which is incidental to or connected with any of the aforesaid processes and includes a factory which is engaged for a period not exceeding seven months in a year –
(a) in any process of blending, packing or repacking of tea or coffee; or
(b) in such other manufacturing process as the Central Government may, by notification in the Official Gazette, specify;
(20) “sickness” means a condition which requires medical treatment and attendance and necessitates abstention from work on medical grounds;
(21) “temporary disablement” means a condition resulting from an employment injury which requires medical treatment and renders an employee, as a result of such injury, temporarily incapable of 21[doing the work which he was doing prior to or at the time of the injury];
(22) “wages” means all remuneration paid or payable in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled and includes 22[any payment to an employee in respect of any period of authorised leave, lock-out, strike which is not illegal or lay-off and] other additional remuneration, if any, 23[paid at intervals not exceeding two months], but does not include—
(b) any travelling allowance or the value of any traveling concession;
(c) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or
(d) any gratuity payable on discharge.
24(23) “wage period” in relation to an employee means the period in respect of which wages are ordinarily payable to him whether in terms of the contract of employment, express or implied or otherwise;
25(24) all other words and expressions used but not defined in this Act and defined in the Industrial Disputes Act, 1947 (14 of 1947), shall have the meanings respectively assigned to them in that Act.
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1. Subs. by the A.O. 1950, for “a federal railway”.
2. Clause (2) omitted by Act 29 of 1989, sec. 3(i) (w.e.f. 1-2-1991).
3. Clause (5) omitted by Act 29 of 1989, sec. 3(ii) (w.e.f. 1-2-1991).
4. Ins. by Act 44 of 1966, sec. 2 (w.e.f. 28-1-1968).
5. Subs. by Act 29 of 1989, sec. 3(iii), for “daughter or a widowed mother, and” (w.e.f. 20-10-1989).
6. Ins. by Act 29 of 1989, sec. 3(iii) (w.e.f. 20-10-1989).
7. Subs. by Act 44 of 1966, sec. 2, for the original clause (w.e.f. 28-1-1968).
8. Subs. by Act 44 of 1966, sec. 2, for “but does not include” (w.e.f. 28-1-1968).
9. Subs. by Act 29 of 1989, sec. 3(iv), for “but does not include” (w.e.f. 20-10-1989).
10. Subs. by the A.O. 1950, for “His Majesty’s”.
11. Subs. by Act 44 of 1966, sec. 2, for the original sub-clause (w.e.f. 28-1-1968).
12. Subs. by Act 29 of 1989, sec. 3(iv), for “one thousand and six hundred rupees a month” (w.e.f. 12-1991).
13. Subs. by Act 29 of 1989, sec. 3(v), for clauses (11) and (12) (w.e.f. 20-10-1989).
14. Added by Act 29 of 1989 sec. 3(vi) (w.e.f. 20-10-1989).
15. Ins. by Act 44 of 1966, sec. 2 (w.e.f. 28-1-1968).
16. Ins. by Act 29 of 1989, sec. 3(vii) (w.e.f. 20-10-1989).
17. Subs. by Act 53 of 1951, sec. 3, for “1934” (w.e.f. 6-10-1951).
18. Ins. by Act 29 of 1989, sec. 3(ix) (w.e.f. 20-10-1989).
19. Subs. by Act 53 of 1951, sec. 3, for “clause (e) of sub-section (1) of section 9 of the Factories Act, 1934” (w.e.f. 6-10-1951).
20. Ins. by Act 29 of 1989, sec. 3(ix) (w.e.f. 20-10-1989).
21. Subs. by Act 44 of 1966, sec. 2, for “work” (w.e.f. 28-1-1968).
22. Ins. by Act 44 of 1966, sec. 2 (w.e.f. 28-1-1968).
23. Subs. by Act 53 of 1951, sec. 3, for “paid at regular intervals after the last day of the wage period” (w.e.f. 6-10-1951).
24. Subs. by Act 45 of 1984, sec. 2, for clause (23) (w.e.f. 27-1-1985).
25. Subs. by Act 44 of 1966, sec. 2, for the original clause (w.e.f. 28-1-1968).
Section 2A. Registration of factories and establishments.
1REGISTRATION OF FACTORIES AND ESTABLISHMENTS. Every factory or establishment to which this Act applies shall be registered within such time and in such manner as may be specified in the regulations made in this behalf.
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1. Ins. by Act 44 of 1966, sec. 3 (w.e.f. 28-1-1968).
Section 3. Establishment of employees’ state insurance corporation.
(1) With effect from such date* as the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established for the administration of the scheme of Employees’ State Insurance in accordance with the provisions of this Act a Corporation to be known as the Employees’ State Insurance Corporation.
(2) The Corporation shall be a body corporate by the name of Employees’ State Insurance Corporation having perpetual succession and a common seal and shall by the said name sue and be sued.
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* 1st October, 1948, vide Gazette of India, 1948, Extra., p. 1441.
Section 4. Constitution of corporation.
The Corporation shall consist of the following members, namely :
1(a) a Chairman to be 2appointed by the Central Government;
(b) a Vice-Chairman to be appointed by the Central Government;
(c) not more than five persons to be appointed by the Central Government.3[***]
(d) one person each representing each of the 4States in which this Act is in force to be appointed by the State Government concerned;
(e) one person to be 2appointed by the Central Government to represent the 5Union territories;
(f)6 persons representing employers to be appointed by the Central Government in consultation with such organisations of employers as may be recognised for the purpose by the Central Government;
(g)6 ten persons representing employees to be appointed by the Central Government in consultation with such organisations of employees as may be recognised for the purpose by the Central Government;
(h) two persons representing the medical profession to be 2appointed by the Central Government in consultation with such organisations of medical practitioners as may be recognised for the purpose by the Central 7Government;
8(i) three members of Parliament of whom two shall be members of the House of the People (Lok Sabha) and one shall be a member of the Council of States (Rajya Sabha) elected respectively by the members of the House of the people and the members of the Council of States; and
(j) the Director General of the Corporation, ex officio.
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1. Subs. by Act 44 of 1966, sec. 4, for the original clauses (a) and (b) (w.e.f. 17-6-1967).
2. Subs. by Act 29 of 1989, sec. 4, for “nominated” and “nomination” (w.e.f. 20-10-1989).
3. The words “of whom at least three shall be officials of the Central Government” omitted by Act 44 of 1966, sec. 4 (w.e.f. 17-6-1967).
4. Subs. by A.O. (No. 3) 1956, for “Part A States and B States”.
5. Subs. by the A.O. (No. 3) 1956, for “Part C States”.
6. Subs. by Act 29 of 1989, sec. 4, for “five” (w.e.f. 20-10-1989).
7. The word “and” omitted by Act 44 of 1966, sec. 4 (w.e.f. 17-6-1967).
8. Subs. by Act 44 of 1966, sec. 4, for clause (i) (w.e.f. 17-6-1967).
Section 5. Term of office of members of the corporation.
(1) Save as otherwise expressly provided in this Act, the term of office of members of the Corporation, other than 1the members referred to in clauses (a), (b), (c), (d) and (e) of section 4 and the ex officio member, shall be four years commencing from the date on which their 2appointment or election is notified :
Provided that a member of the corporation shall, notwithstanding the expiry of the said period of four years, continue to hold office until the 2appointment or election of his successor is notified.
(2) The members of the Corporation referred to in clauses 3(a), (b), (c), (d) and (e) of section 4 shall hold office during the pleasure of the Government 3appointing them.
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1. Subs. by Act 44 of 1966, sec. 5, for certain words (w.e.f. 17-6-1967).
2. Subs. by Act 29 of 1989, sec. 4, for “nominating”, “re-nomination” and “nominated” (w.e.f. 20-10-1989).
3. Subs. by Act 44 of 1966, sec. 5, for “(c), (d) and (e)” (w.e.f. 17-6-1967).
Section 6. Eligibility for re-nomination or re-election.
An outgoing member of the Corporation, the Standing Committee, or the Medical Benefit Council shall be eligible for 1reappointment or re-election as the cases may be.
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1. Subs. by Act 29 of 1989, sec. 4, for “nominating”, “re-nomination” and “nominated” (w.e.f. 20-10-1989).
Section 7. Authentication of orders, decisions, etc.
All orders and decisions of the Corporation shall be authenticated by the signature of the Director General of the Corporation and all other instruments issued by the Corporation shall be authenticated by the signature of the Director General or such other officer of the Corporation as may be authorised by him.
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1. Subs. by Act 44 of 1966, sec. 6, for section 7 (w.e.f. 17-6-1967).
Section 8. Constitution of standing committee.
A Standing Committee of the Corporation shall be constituted from among its members, consisting of –
(a) a Chairman, 1[appointed] by the Central Government;
(b) three members of the Corporation, 1[appointed] by the Central Government];
2[(bb) three members of the Corporation representing such three State Governments thereon as the Central Government may, by notification in the Official Gazette, specify from time to time;]
(c) 3[eight] members elected by the Corporation as follows:—
4[***]
(ii) 5[three] members from among the members of the corporation representing employers;
(iii) 5[three] members from among the members of the Corporation representing employees;
(iv) one member from among the members of the Corporation representing the medical profession; and
(v) one member from among the members of the Corporation elected by 6[Parliament];
7[(d) the Director General of the Corporation, ex officio].
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1. Subs. by Act 29 of 1989, sec. 4, for “nominating”, “re-nomination” and “nominated” (w.e.f. 20-10-1989).
2. Ins. by Act 53 of 1951, sec. 5 (w.e.f. 6-10-1951).
3. Subs. by Act 44 of 1966, sec. 7, for “six” (w.e.f. 17-6-1967).
4. Sub-clause (i) omitted by Act 53 of 1951, sec. 5 (w.e.f. 6-10-1951).
5. Subs. by Act 44 of 1966, sec. 7, for “two” (w.e.f. 17-6-1967).
6. Subs. by the A.O. 1950, for “the Central Legislature”.
7. Ins. by Act 44 of 1966, sec. 7 (w.e.f. 17-6-1967).
Section 9. Term of office of members of standing committee.
(1) Save as otherwise expressly provided in this Act, the term of office of a member of the Standing Committee, other than a member referred to in clause (a) or 1Clause (b) or clause (bb) of section 8, shall be two years from the date on which his election is notified :
Provided that a member of the Standing Committee, shall, notwithstanding the expiry of the said period of two years, continue to hold office until the election of his successor is notified :
Provided further that a member of the Standing Committee shall cease to hold office when he ceases to be a member of the Corporation.
(2) A member of the Standing Committee referred to in clause (a) or clause (b) or clause (bb) of section 8 shall hold office during the pleasure of the Central Government.
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1. Subs. by Act 53 of 1951, sec. 6, for “clause (b)” (w.e.f. 6-10-1951).
Section 10. Medical benefit council.
(1) The Central Government shall constitute a Medical Benefit Council consisting of – (a) the Director General, Health Services, ex officio, as Chairman;
(b) a Deputy Director-General, Health Services, to be appointed by the Central Government;
(c) the Medical Commissioner of the Corporation, ex officio;
(d) one member each representing each of the 2[3[States (other than Union territories)] in which this Act is in force] to be 1[appointed] by the State Government concerned;
(e) three members representing employers to be appointed by the Central Government in consultation with such organisations of employers as may be recognised for the purpose by the Central Government;
(f) three members representing employees to be appointed by the Central Government in consultation with such organisations of employees as may be recognised for the purpose by the Central Government; and
(g) three members, of whom not less than one shall be a woman, representing the medical profession, to be appointed by the Central Government in consultation with such organisations of medical practitioners as may be recognised for the purpose by the Central Government.
(2) Save as otherwise expressly provided in this Act, the term of office of a member of the Medical Benefit Council, other than a member referred to in any of the clause (a) to (d) of sub-section (1), shall be four years from the date on which his appointment is notified :
5[Provided that a member of the Medical Benefit Council, shall, notwithstanding the expiry of the said period of four years continue to hold office until the 4[appointment] of his successor is notified].
(3) A member of the Medical Benefit Council referred to in clauses (b) and (d) of sub-section (1) shall hold office during the pleasure of the Government appointing him.
—————
1. Subs. by Act 29 of 1989, sec. 4 for “nominated”, “nominations” and “nominating” (w.e.f. 20-10-1989).
2. Subs. by Act 53 of 1951, sec. 7, for “Part A States” (w.e.f. 6-10-1951).
3. Subs. by the A.O. (No. 3) 1956, for “Part A States or Part B States”.
4. Subs. by Act 29 of 1989, sec. 4, for “nominated”, “nomination” and “nominating” (w.e.f. 20-10-1989).
5. Added by Act 44 of 1966, sec. 8 (w.e.f. 17-6-1967).
Section 11. Resignation of membership.
A member of the Corporation, the Standing Committee or the Medical Benefit Council may resign his office by notice in writing to the Central Government and his seat shall fall vacant on the acceptance of the resignation by that Government.
Section 12. Cessation of membership.
1(1) A member of the Corporation, the Standing Committee or the Medical Benefit Council shall cease to be a member of that body if he fails to attend three consecutive meetings thereof :
Provided that the Corporation, the Standing Committee or the Medical Benefit Council, as the case may be, may, subject to rules made by the Central Government in this behalf, restore him to membership.
2(2) Where in the opinion of the Central Government any person 3appointed or elected to represent employers, employees or the medical profession on the Corporation, the Standing Committee or the Medical Benefit Council, as the case may be, has ceased to represent such employers, employees or the medical profession, the Central Government may, by notification in the Official Gazette, declare that with effect from such date as may be specified therein such person shall cease to be a member of the Corporation, the Standing Committee or the Medical Benefit Council, as the case may be.
4(3) A person referred to in clause (i) of section 4 shall cease to be a member of the Corporation, when he ceases to be a member of Parliament.
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1. Section 12 re-numbered as sub-section (1) thereof by Act 53 of 1951, sec. 8 (w.e.f. 6-10-1951).
2. Ins. by Act 53 of 1951, sec. 8 (w.e.f. 6-10-1951).
3. Subs. by Act 29 of 1989, sec. 4, for “nominated”, “nomination” and “nominating” (w.e.f. 20-10-1989).
4. Ins. by Act 44 of 1966, sec. 9 (w.e.f. 17-6-1967).
Section 13. Disqualification.
A person shall be disqualified for being chosen as or for being a member of the Corporation, the Standing Committee or the Medical Benefit Council –
(a) if he is declared to be of unsound mind by a competent Court; or
(b) if he is an undercharged insolvent; or
(c) if he has directly or indirectly by himself or by his partner any interest in a subsisting contract with, or any work being done for, the Corporation except as a medical practitioner or as a shareholder (not being a Director) of a company; or
(d) if before or after the commencement of this Act, he has been convicted of an offence involving moral turpitude.
Section 14. Filling of vacancies.
(1) Vacancies in the office of 1appointed or elected members of the Corporation, the Standing Committee and the Medical Benefit Council shall be filled by appointment or election, as the case may be.
(2) A member of the Corporation, the Standing Committee or the Medical Benefit Council appointed or elected to fill a casual vacancy shall hold office only so long as the member in whose place he is 2appointed or elected would have been entitled to hold office if the vacancy had not occurred.
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1. Subs. by Act 29 of 1989, sec. 4, for “nominated”, “nomination” and “nominating” (w.e.f. 20-10-1989).
2. Subs. by Act 29 of 1989, sec. 4, for “nominated” and “nomination” (w.e.f. 20-10-1989).
Section 15. Fees and allowances.
Members of the Corporation, the Standing Committee and the Medical Benefit Council shall receive such fees and allowances as may from time to time be prescribed by the Central Government.
Section 16. Principal officers.
(1) The Central Government may, in consultation with the Corporation, appoint a Director General and a Financial Commissioner.
(2) The Director General shall be the Chief Executive Officer of the Corporation.
(3)2 The Director General and the Financial Commissioner shall be whole time officers of the Corporation and shall not undertake any work unconnected with their office without the sanction of the Central Government 3and of the Corporation.
(4) 2The Director General or the Financial Commissioner shall hold office for such period, not exceeding five years, as may be specified in the order appointing him. An outgoing Director General or the Financial Commissioner shall be eligible for reappointment if he is otherwise qualified.
(5) 2The Director General or the Financial Commissioner shall receive such salary and allowances as may be prescribed by the Central Government.
(6) A person shall be disqualified from being appointed as or for being the Director General or the Financial Commissioner if he is subject to any of the disqualification specified in section 13.
(7) The Central Government may at any time remove the 4Director General or the Financial Commissioner from office and shall do so if such removal is recommended by a resolution of the Corporation passed at a special meeting called for the purpose and supported by the votes of not less than two-thirds of the total strength of the Corporation.
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1. Subs. by Act 29 of 1989, sec. 6, for sub-section (1) (w.e.f. 20-10-1989).
2. Subs. by Act 29 of 1989, sec. 6, for “The Principal Officers” (w.e.f. 20-10-1989).
3. Ins. by Act 44 of 1966, sec. 10 (w.e.f. 17-6-1967).
4. Subs. by Act 29 of 1989, sec. 6, for “A Principal Officer” (w.e.f. 20-10-1989).
Section 17. Staff.
(1) The Corporation may employ such other staff of officers and servants as may be necessary for the efficient transaction of its business provided that the sanction of the Central Government shall be obtained for the creation of any post 1[the maximum monthly salary of which 2[exceeds such salary as may be prescribed by the Central Government].
3[(2) (a) The method of recruitment, salary and allowances, discipline and other conditions of service of the members of the staff of the Corporation shall be such as may be specified in the regulations made by the Corporation in accordance with the rules and orders applicable to the officers and employees of the Central Government drawing corresponding scales of pay:
Provided that where the Corporation is of the opinion that it is necessary to make a departure from the said rules or orders in respect of any of the matters aforesaid, it shall obtain the prior approval of the Central Government.
(b) In determining the corresponding scales of pay of the members of the staff under clause (a), the Corporation shall have regard to the educational qualifications, method of recruitment, duties and responsibilities of such officers and employees under the Central Government and in case of any doubt, the Corporation shall refer the matter to the Central Government whose decision thereon shall be final.]
(3) Every appointment to 4[posts 5[(other than medical posts)] corresponding to 6[Group A and Group B] posts under the Central Government], shall be made in consultation with the 7[Union] Public Service Commission:
Provided that this sub-section shall not apply to an officiating or temporary appointment for 8[a period] not exceeding one year:
9[Provided further that any such officiating or temporary appointment shall not confer any claim for regular appointment and the services rendered in that capacity shall not count towards seniority or minimum qualifying service specified in the regulations for promotion to next higher grade.]
9([4) If any question arises whether a post corresponds to a 6[Group A and Group B] post under the Central Government, the question shall be referred to that Government whose decision thereon shall be final.]
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1. Subs. by Act 38 of 1975, sec. 3, for certain words (w.e.f. 1-9-1975).
2. Subs by Act 29 of 1989, sec. 7, for “exceeds two thousand and two hundred fifty rupees” (w.e.f. 1-2-1991).
3. Subs. by Act 29 of 1989, sec. 7, for sub-section (2) (w.e.f. 8-11-1989).
4. Subs. by Act 44 of 1966, sec. 11, for “post carrying a maximum monthly pay to five hundred rupees and above” (w.e.f. 17-6-1967).
5. Ins. by Act 29 of 1989, sec. 7(iii)(a) (w.e.f. 16-5-1990).
6. Subs. by Act 45 of 1984, sec. 3, for “Class I or Class II” (w.e.f. 27-1-1985).
7. Subs. by the A.O. 1950, for “Federal”.
8. Subs. by Act 29 of 1989, sec. 7(iii), for “an aggregate period” (w.e.f. 20-10-1989).
9. Ins. by Act 29 of 1989, sec. 7(iii) (w.e.f. 20-10-1989).
Section 18. Powers of the standing committee.
(1) Subject to the general superintendence and control of the Corporation, the Standing Committee shall administer the affairs of the Corporation and may exercise any of the powers and perform any of the functions of the Corporation.
(2) The Standing Committee shall submit for the consideration and decision of the Corporation all such cases and matters as may be specified in the regulations made in this behalf.
(3) The Standing Committee may, in its discretion, submit any other case or matter for the decision of the Corporation.
Section 19. Corporation’s power to promote measures for health, etc., of insured persons.
The Corporation may, in addition to the scheme of benefits specified in this Act, promote measures for the improvement of the health and welfare of insured persons and for the rehabilitation and re-employment of insured persons who have been disabled or injured and may incur in respect of such measures expenditure from the funds of the Corporation within such limits as may be prescribed by the Central Government.
Section 20. Meetings of corporation, standing committee and medical benefit council.
Subject to any rules made under this Act, the Corporation, the Standing Committee and the Medical Benefit Council shall meet at such times and places and shall observe such rules or procedure in regard to transaction of business at their meetings as may be specified in the regulations made in this behalf.
Section 21. Super session of the corporation and standing committee.
(1) If in the opinion of the Central Government, the Corporation or the Standing Committee persistently makes default in performing the duties imposed on it by or under this Act or abuses its powers, that Government may, by notification in the Official Gazette, supersede the Corporation, or in the case of the Standing Committee, supersede, in consultation with the Corporation, the Standing Committee :
Provided that before issuing a notification under this sub-section the Central Government shall give a reasonable opportunity to the Corporation or the Standing Committee, as the case may be, to show cause why it should not be superseded and shall consider the explanations and objections, if any, of the Corporation or the Standing Committee, as the case may be.
(2) Upon the publication of a notification under sub-section (1) superseding the Corporation or the Standing Committee, all the members of the Corporation or the Standing Committee, as the case may be, shall, as from the date of such publication, be deemed to have vacated their offices.
(3) When the Standing Committee has been superseded, a new Standing Committee shall be immediately constituted in accordance with section 8.
(4) When the Corporation has been superseded, the Central Government may – (a) immediately appoint or cause to be 1appointed or elected new members to the Corporation in accordance with section 4 and may constitute a new Standing Committee under section 8;
(b) in its discretion, appoint such agency, for such period as it may think fit, to exercise the powers and perform the functions of the corporation and such agency shall be competent to exercise all the powers and perform all the functions of the Corporation.
(5) The Central Government shall cause a full report of any action taken under this section and the circumstances leading to such action to be laid before 2Parliament at the earliest opportunity and in any case not later than three months from the date of the notification superseding the Corporation or the Standing Committee, as the case may be.
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1. Subs. by Act 29 of 1989, sec. 4, for “nominate” and “nominated” (w.e.f. 20-10-1989).
2. Subs. by A.O. 1950, for “the Central Legislature”.
Section 22. Duties of medical benefits council.
The Medical Benefit Council shall –
(a) advise 1the Corporation and the Standing Committee on matters relating to the administration of medical benefit, the certification for purposes of the grant of benefits and other connected matters;
(b) have such powers and duties of investigation as may be prescribed in relation to complaints against medical practitioners in connection with medical treatment and attendance; and
(c) perform such other duties in connection with medical treatment and attendance as may be specified in the regulations.
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1. Subs. by Act 53 of 1951, sec. 9, for “the Corporation, the Standing Committee and the Medical Commissioner” (w.e.f. 6-10-1951).
Section 23. Duties of director general and the financial commissioner.
The Director General and the Financial Commissioner shall exercise such powers and discharge such duties as may be prescribed.
They shall also perform such other functions as may be specified in the regulations.
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1. Subs. by Act 29 of 1989, sec. 8, for “Principal Officers” (w.e.f. 20-10-1989).
Section 24. Acts of corporation, etc., not invalid by reason of defect in constitution, etc.
No act of the Corporation, the Standing Committee or the Medical Benefit Council shall be deemed to be invalid by reason of any defect in the constitution of the Corporation, the Standing Committee or the Medical Benefit Council, or on the ground that any member thereof was not entitled to hold or continue in office by reason of any disqualification or of any irregularity in his 1appointment or election, or by reason of such act having been done during the period of any vacancy in the office of any member of the Corporation, the Standing Committee or the Medical Benefit Council.
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1. Subs. by Act 29 of 1989, sec. 4, for “nomination” (w.e.f. 20-10-1989).
Section 25. Regional boards, local committees, regional and local medical benefit councils.
The Corporation may appoint Regional Boards, Local Committees and Regional and Local Medical Benefit, Councils in such areas and in such manner, and delegate to them such powers and functions, as may be provided by the regulations.
Section 26. Employees’ state insurance fund.
(1) All contributions paid under this act and all other moneys received on behalf of the Corporation shall be paid into a fund called the Employees’ State Insurance Fund which shall be held and administered by the Corporation for the purposes of this Act.
(2) The Corporation may accept grants, donations and gifts from the Central or any State Government,1 local authority, or any individual or body whether incorporated or not, for all or any of the purposes of this Act.
2(3) Subject to the other provisions contained in this Act and to any rules or regulations made in this behalf, all moneys accruing or payable to the said Fund shall be paid into the Reserve Bank of India or such other bank as may be approved by the Central Government to the credit of an account styled the Account of the Employees’ State Insurance Fund.
(4) Such account shall be operated on by such officer as may be authorised by the Standing Committee with the approval of the Corporation.
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1. The words “Part B State,” omitted by Act 53 of 1951, sec. 10 (w.e.f. 6-10-1951).
2. Subs. by Act 53 of 1951, sec. 10, for sub-section (3) (w.e.f. 6-10-1951).
Section 27. Grant by the central government.
[Rep. by the Employees’ State Insurance (Amendment) Act</em>,<em> 1966 (44 of 1966), sec. 12 (w.e.f. 17-6-1967).
Section 8. Purposes for which the fund may be expended.
Subject to the provisions of this Act and of any rules made by the Central Government in that behalf, the Employees’ State Insurance Fund shall be expended only for the following purposes, namely :
(i) payment of benefits and provision of medical treatment and attendance to insured persons and, where the medical benefit is extended to their families, the provision of such medical benefit to their families, in accordance with the provisions of this Act and defraying the charges and costs in connection therewith;
(ii) payment of fees and allowances to members of the Corporation, the Standing Committee and the Medical Benefit Council, the Regional Boards, Local Committees and Regional and Local Medical Benefit Councils;
(iii) payment of salaries, leave and joining time allowances, traveling and compensatory allowances, gratuities and compassionate allowances, pensions, contributions to provident or other benefit fund of officers and servants of the Corporation and meeting the expenditure in respect of offices and other services set up for the purpose of giving effect to the provisions of this Act;
(iv) establishment and maintenance of hospitals, dispensaries and other institutions and the provisions of medical and other ancillary services for the benefit of insured persons and where the medical benefit is extended to their families, their families;
(v) payment of contributions to any State Government, 1[***] local authority or any private body or individual, towards the cost of medical treatment and attendance provided to insured persons and, where the medical benefit is extended to their families, their families, including the cost of any building and equipment, in accordance with any agreement entered into by the Corporation;
(vi) defraying the cost (including all expenses of auditing the accounts of the Corporation and of the valuation of its assets and liabilities;
(vii) defraying the cost (including all expenses) of the Employees’ Insurance Courts set up under this Act;
(viii) payment of any sums under any contract entered into for the purposes of this Act by the Corporation or the Standing Committee or by any officer duly authorised by the Corporation or the Standing Committee in that behalf;
(ix) payment of sums under any decree, order or award of any Court or Tribunal against the Corporation or any of its officers or servants for any act done in the execution of his duty or under a compromise or settlement of any suit or other legal proceeding or claim instituted or made against the Corporation;
(x) defraying the cost and other charges of instituting or defending any civil or criminal proceedings arising out of any action taken Under this Act;
(xi) defraying expenditure, within the limits prescribed, on measures for the improvement of the health and welfare of insured persons and for the rehabilitation and re-employment of insured persons who have been disabled or injured; and
(xii) such other purposes as may be authorised by the Corporation with the previous approval of the Central Government.
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1. The words “Part B State”, omitted by Act 53 of 1951, sec. 11 (w.e.f. 6-10-1951).
Section 28A. Administrative expenses.
The types of expenses which may be termed as administrative expenses and the percentage of the income of the Corporation which may be spent for such expenses shall be such as may be prescribed by the Central Government and the Corporation shall keep its administrative expenses within the limit so prescribed by the Central Government.
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1. Ins. by Act 29 of 1989, sec. 9 (w.e.f. 1-5-1997).
Section 29. Holding of property, etc.
(1) The Corporation may, subject to such conditions as may be prescribed by the Central Government, acquire and hold property both movable and immovable, sell or otherwise transfer any movable or immovable property which may have become vested in or have been acquired by it and do all things necessary for the purposes for which the Corporation is established.
(2) Subject to such conditions as may be prescribed by the Central Government, the Corporation may from time to time, invest any moneys which are not immediately required for expenses properly defrayable under this Act and may, subject as aforesaid, from time to time re-invest or realise such investments.
(3) The Corporation may, with the previous sanction of the Central Government and on such terms as may be prescribed by it, raise loans and take measures for discharging such loans.
(4) The Corporation may constitute for the benefit of its staff or any class of them, such provident or other benefit fund as it may think fit.
Section 30. Vesting of the property in the corporation.
All property acquired before the establishment of the Corporation shall vest in the Corporation and all income derived and expenditure incurred in this behalf shall be brought into the books of the Corporation.
Section 31. Expenditure by central government to be treated as a loan.
[Rep. by the Employees’ State Insurance (Amendment) Act, 1966 (44 of 1966), sec. 12 (w.e.f. 17-6-1967)].
Section 32. Budget estimates.
The Corporation shall in each year frame a budget showing the probable receipts and the expenditure which it proposes to incur during the following year and shall submit a copy of the budget for the approval of the Central Government before such date as may be fixed by it in that behalf.
The budget shall contain provisions adequate in the opinion of the Central Government for the discharge of the liabilities incurred by the Corporation and for the maintenance of a working balance.
Section 33. Accounts.
The Corporation shall maintain correct accounts of its income and expenditure in such form and in such manner as may be prescribed by the Central Government.
Section 34. AUDIT.
(1) The accounts of the Corporation shall be audited annually by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the Corporation to the Comptroller and Auditor-General of India.
(2) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Corporation shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General has, in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Corporation.
(3) The accounts of the Corporation as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded to the Corporation which shall forward the same to the Central Government along with its s on the report of the Comptroller and Auditor-General.
1. Subs. by Act 29 of 1989, sec. 10, for section 34 (w.e.f. 20-10-1989).
Section 35. Annual report.
The Corporation shall submit to the Central Government an annual report of its work and activities.
Section 36. Budget, audited accounts and the annual report to be placed before parliament.
The annual report, the audited accounts of the Corporation, 1[together with 2[the report of the Comptroller and Auditor-General of India thereon and the s of the Corporation on such report under section 34, and the budget as finally adopted by the Corporation shall be placed before 3[Parliament] 4[***]..
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1. Ins. by Act 44 of 1986, sec. 13 (w.e.f. 17-6-1967).
2. Subs. by Act 29 of 1989, sec. 11, for “auditor’s report thereon” (w.e.f. 20-10-1989).
3. Subs. by the A.O. 1950, for “the Central Legislature”.
4. The words “and published in the Gazette of India” omitted by Act 29 of 1989, sec. 11 (w.e.f. 20-10-1989).
Section 37. Valuation of assets and liabilities.
The Corporation shall, at intervals of five years, have a valuation of its assets and liabilities made by a valuer appointed with the approval of the Central Government :
Provided that it shall be open to the Central Government to direct a valuation to be made at such other times as it may consider necessary.
Section 38. All employees to be insured.
Subject to the provisions of the Act, all employees in factories, or establishments to which this Act applies shall be insured in the manner provided by this Act.
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The Employees’ State Insurance Act is aimed at conferring benefits on employees in case of sickness, maternity and employment injury. Section 38 of the Act mandates that all the employees in the factories or establishments shall be insured. The initial and vital endeavour should be to identify the beneficiaries or the employees for insurance; Transport Corporation of India v. Employees’ State Insurance Corporation, AIR 2000 SC 238.
Section 39. Contributions.
(1) The contribution payable under this Act in respect of an employee shall comprise contribution payable by the employer (hereinafter referred to as the employer’s contribution) and contribution payable by the employee (hereinafter referred to as the employee’s contribution) and shall be paid to the Corporation.
1(2) The contributions shall be paid at such rates as may be prescribed by the Central Government
Provided that the rates so prescribed shall not be more than the rates which were in force immediately before the commencement of the Employees’ State Insurance (Amendment) Act, 1989.
2[(3) The wage period in relation to an employee shall be the unit in respect of which all contributions shall be payable under this Act.]
(4) The contributions payable in respect of each 3[wage period] shall ordinarily fall due on the last day of the 3[wage period], and where an employee is employed for part of the 3[wage period], or is employed under two or more employers during the same 3[wage period], the contributions shall fall due on such days as may be specified in the regulations.
4(5) (a) If any contribution payable under this Act is not paid by the principal employer on the date on which such contribution has become due, he shall be liable to pay simple interest at the rate of twelve per cent per annum or at such higher rate as may be specified in the regulations till the date of its actual payment :
Provided that higher interest specified in the regulations shall not exceed the lending rate of interest charged by any scheduled bank.
(b) Any interest recoverable under clause (a) may be recovered as an arrear of land revenue or under section 45C to section 45-I.
Explanation : In this sub-section, “scheduled bank” means a bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934).
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(i) No contribution need to be made on the incentive offered to the employees for a limited period and was paid at staggered intervals; Employees State Insurance Corpn., Hyderabad v. A.P. Electrical Equipment Corporation a Unit of ECE Industries Ltd., Visakhapattnam, 2005 LLR 466.
(ii) Payment of statutory interest on delayed deposit of E.S.I. contribution cannot be waived even when the E.I. Court has granted payment by instalments; Employee State Insurance Corpn. v. Bagsvig, 2005 LLR 983.
(iii) The liability to pay the entire contribution under section 39 is of the employer; Regional Director, Employees’ State Insurance Corporation v. Fashion Fabrics, (1990) 2 CLR 844 (Ker).
(iv) Contribution is payable by the employer even in respect of casual labourers under section 39(3) and (4); Employees’ State Insurance Corporation v. Jaipur Enterprises, (1988) 56 FLR 207 (Raj).
(v) The employer is statutorily bound to contribute, whether he has sufficient resources or not; South India Viscose Co-op. Stores Ltd. v. Regional Director, Employees’ State Insurance Corporation, (1986) 68 FLR 329 (Mad).
(vi) Contribution for the past period is recoverable even if the employees had not availed the benefit of insurance; Employees’ State Insurance Corporation v. Hotel Kalpaka International, 1993 LLR 177 (SC).
(vii) Contributions are to be paid only on the wages payable to the eligible employees; Employees’ State Insurance Corporation v. Vijayamohini Mills, (1990) 76 FJR 246 (Ker).
(viii) Only wages paid to the employees can be reckoned for calculation of contributions; Employees’ State Insurance Corporation v. Ram Lal Textiles, (1990) 61 FLR 298.
(ix) The E.S.I.C. must hear an employer before determining the contribution to be payable by him if there is any dispute regarding such liability; Rameshwar Jute Mills Ltd. v. Employees’ State Insurance Corporation, AIR 1986 Pat 228.
(x) The employer can claim refund of ESI contributions which have been deposited by mistake; Anil Textile Industry v. Employees’ State Insurance Corporation, (1992) 64 FLR 856 (Raj).
(xi) Section 39(5)(a) applies where the employer fails to make contributions. If such failure is on account of circumstances beyond his control or if the circumstances make it impossible for the employer to make contributions even if he wanted to do so, unless he risks being hauled up for contempt of court, such failure on the part of the employer in making payments in time cannot be called a failure within the meaning of clause (a) of sub-section (5) so as to call for levying of interest; H.M.T. Ltd. v. Employees’ State Insurance Corporation, (1998) 92 FJR 454 (Kar).
(xii) The applicability of the clause (a) of sub-section (5) of section 39 of the Act is where the employer fails to make contributions. If such failure is on account of circumstances beyond his control or if the circumstances make it impossible for the employer to make contributions even if he wanted to do so unless the risks being hauled up for contempt of Court, such failure on the part of the employer in making payment in time cannot be called a failure within the meaning of this provision; Fenner (India) Ltd. v. Joint Regional Director, Employees’ State Insurance Corporation, (2003) 2 LLJ 447 (Mad).
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1. Subs. by Act 29 of 1989, sec. 12, for sub-section (2) (w.e.f. 1-2-1991).
2. Subs. by Act 45 of 1984, sec. 4, for sub-section (3) (w.e.f. 27-1-1985).
3. Subs. by Act 45 of 1984, sec. 4, for “week” (w.e.f. 27-1-1985).
4. Ins. by Act 29 of 1989, sec. 12(ii) (w.e.f. 20-10-1989).
Section 40. Principal employer to pay contributions in the first instance.
(1) The principal employer shall pay in respect of every employee, whether directly employed by him or by or through an immediate employer, both the employer’s contribution and the employee’s contribution.
(2) Notwithstanding anything contained in any other enactment but subject to the provisions of this Act and the regulations, if any, made there under, the principal employer shall, in the case of an employee directly employed by him (not being an exempted employee), be entitled to recover from the employee the employee’s contribution by deduction from his wages and not otherwise :
Provided that no such deduction shall be made from any wages other than such as relate to the period or part of the period in respect of which the contribution is payable, or in excess of the sum representing the employee’s contributing for the period.
(3) Notwithstanding any contract to the contrary, neither the principal employer nor the immediate employer shall be entitled to deduct the employer’s contribution from any wages payable to an employee or otherwise to recover it from him.
(4) Any sum deducted by the principal employer from wages under this Act shall be deemed to have been entrusted to him by the employee for the purpose of paying the contribution in respect of which it was deducted.
(5) The principal employer shall bear the expenses of remitting the contributions to the Corporation.
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(i) Principal employer is liable to pay contributions; Vemly Hotels v. Kuldeep Singh, (1987) 55 FLR 183 (Bom).
(ii) The employer’s liability to contribute continues till the closure of factory or establishment; Employees’ State Insurance Corporation v. Hotel Kalpaka International, 1993 LLR 117 (SC).
Section 41. Recovery of contributions from immediate employer.
(1) A principal employer, who has paid contribution in respect of an employee employed by or through an immediate employer, shall be entitled to recover the amount of the contribution so paid (that is to say the employer’s contribution as well as the employee’s contribution, if any) from the immediate employer, either by deduction from any amount payable to him by the principal employer under any contract, or as a debt payable by the immediate employer.
1(1A) The immediate employer shall maintain a register of employees employed by or through him as provided in the regulations and submit the same to the principal employer before the settlement of any amount payable under sub-section (1).
(2) In the case referred to in sub-section (1), the immediate employer shall be entitled to recover the employee’s contribution from the employee employed by or through him by deduction from wages and not otherwise, subject to the conditions specified in the proviso to sub-section (2) of section 40.
2[***]
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1. Ins. by Act 29 of 1989, sec. 13 (w.e.f. 1-2-1991).
2. Explanation omitted by Act 44 of 1966, sec. 14 (w.e.f. 28-1-1968).
Section 42. General provisions as to payment of contributions.
(1) No employee’s contribution shall be payable by or on behalf of an employee whose average daily wages are below 1during a wage period are below 2Such wages as may be prescribed by the Central Government.
Explanation.—The average daily wages of an employee shall be calculated 3[in such manner as may be prescribed by the Central Government].
(2) Contribution (both the employer’s contribution and the employee’s contribution) shall be payable by the principal employer for each 4[wage period], 5[in respect of the whole or part of which wages are payable to the employee and not otherwise].
6[***]
7[***]
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1. Subs. by Act 45 of 1984, sec. 5, for “are below one rupee and fifty paise” (w.e.f. 27-1-1985).
2. Subs. by Act 29 of 1989, sec. 14, for “six rupees” (w.e.f. 1-2-1991).
3. Subs. by Act 29 of 1989, sec. 14, for “in such manner specified in the First Schedule”(w.e.f. 1-2-1991).
4. Subs. by Act 45 of 1984, sec. 5, for “week” (w.e.f. 27-1-1985).
5. Subs. by Act 44 of 1966, sec. 15, for “during the whole or part of which an employee is employed” (w.e.f. 28-1-1968).
6. Sub-section (3) omitted by Act 45 of 1984, sec. 5 (w.e.f. 27-1-1985).
7. Sub-sections (4) and (5) omitted by Act 44 of 1966, sec. 15 (w.e.f. 28-1-1968).
Section 43. Method of payment of contribution.
Subject to the provisions of this Act, the Corporation may make regulations for any matter relating or incidental to the payment and collection of contributions payable under this Act and without prejudice to the generality of the foregoing power such regulations may provide for –
(a) the manner and time of payment of contributions;
(b) the payment of contributions by means of adhesive or other stamps affixed to or impressed upon books, cards or otherwise and regulating the manner, times and conditions in, at and under which, such stamps are to be affixed or impressed;
(bb) the date by which evidence of contributions having been paid is to be received by the Corporation;
(c) the entry in or upon books or cards of particulars of contributions paid and benefits distributed in the case of the insured persons to whom such books or cards relate; and
(d) the issue, sale, custody, production, inspection and delivery of books or cards and the replacement of books or cards which have been lost, destroyed or defaced.
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1. Ins. by Act 44 of 1966, sec. 16 (w.e.f. 28-1-1968).
Section 44. Employers to furnish returns and maintain registers in certain cases.
1EMPLOYERS TO FURNISH RETURNS AND MAINTAIN REGISTERS IN CERTAIN CASES. (1) Every principal and immediate employer shall submit to the Corporation or to such officer of the Corporation as it may direct such returns in such form and containing such particulars relating to persons employed by him or to any factory or establishment in respect of which he is the principal or immediate employer as may be specified in regulations made in this behalf.
(2) Where in respect of any factory or establishment the Corporation has reason to believe that a return should have been submitted under sub-section (1) but has not been so submitted, the Corporation may require any person in charge of the factory or establishment to furnish such particulars as it may consider necessary for the purpose of enabling the Corporation to decide whether the factory or establishment is a factory or establishment to which this Act applies.
(3) Every principal and immediate employer shall maintain such registers or records in respect of his factory or establishment as may be required by regulations made in this behalf.
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It is mandatory on the part of the establishment to maintain the records and to produce the same whenever demanded by the authorities. If there is contravention, the punishment as stipulated by section 85(g) of the Act will be imposed; State through the Manager, State Insurance Corporation, Gulbarga v. Kranthi Kumar, 2005 LLR 376.
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1. Subs. by Act 53 of 1951, sec. 12, for section 44 (w.e.f. 6-10-1951).
Section 45. Inspectors, their functions and duties.
(1) The Corporation may appoint such persons as Inspectors, as it thinks fit, for the purposes of this Act, within such local limits as it may assign to them.
(2) Any Inspector appointed by the Corporation under sub-section (1) (hereinafter referred to as Inspector), or other official of the Corporation authorised in this behalf by it may, for the purposes of enquiring into the correctness of any of the particulars stated in any return referred to in section 44 or for the purpose of ascertaining whether any of the provisions of this Act has been complied with –
(a) require any principal or immediate employer to furnish to him such information as he may consider necessary for the purposes of this Act; or
(b) at any reasonable time enter any office, establishment, factory or other premises occupied by such principal or immediate employer and require any person found in charge thereof to produce to such Inspector or other official and allow him to examine such accounts, books and other documents relating to the employment of persons and payment of wages or to furnish to him such information as he may consider necessary; or
(c) examine, with respect to any matter relevant to the purposes aforesaid, the principal or immediate employer, his agent or servant, or any person found in such factory, establishment, office or other premises, or any person whom the said Inspector or other official has reasonable cause to believe to be or to have been an employee;
1(d) make copies of, or take extracts from, any register, account book or other document maintained in such factory, establishment, office or, other premises;
(e) exercise such other powers as may be prescribed.
(3) An Inspector shall exercise such functions and perform such duties as may be authorised by the Corporation or as may be specified in the regulations.
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1. Ins. by Act 53 of 1951, sec. 13 (w.e.f. 6-10-1951).
Section 45A. Determination of contributions in certain cases.
145A. DETERMINATION OF CONTRIBUTIONS IN CERTAIN CASES. -(1) Where in respect of a factory or establishment no returns, particulars, registers or records are submitted, furnished or maintained in accordance with the provisions of section 44 or any Inspector or other official of the Corporation referred to in sub-section (2) of section 45 is 2prevented in any manner by the principal or immediate employer or any other person, in exercising his functions or discharging his duties under section 45, the Corporation may, on the basis of information available to it, by order, determine the amount of contributions payable in respect of the employees of that factory or establishment :
3Provided that no such order shall be passed by the Corporation unless the principal or immediate employer or the person in charge of the factory or establishment has been given a reasonable opportunity of being heard;
(2) An order made by the Corporation under sub-section (1) shall be sufficient proof of the claim of the Corporation under section 75 or for recovery of the amount determined by such order as an arrears of land revenue under section 45B 4or the recovery under section 45C to section 45-I.
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(i) The plea of the employer that he was not allowed to produce all documents and the registers to attract the applicability of the E.S.I. Act will not be tenable when these have been found to be bogus; Srinidhi Bars and Restaurant, Bangalore v. Regional Director, E.S.I. Corporation, Bangalore, 2006 LLR 41.
(ii) Assessment is ad hoc with record; R.S. Ganesh Das Dhomi Mal v. Employees’ State Insurance Corporation, (1988) 56 FLR 111 (Del).
(iii) The Limitation Act will have no scope for operation in respect of any claims arising under section 45A of the Act; Employees’ State Insurance Corporation v. Ramadas Reddiar, (1980) 56 FJR 490 (Mad).
(iv) Amount determined under section 45A can be recovered from the employer as arrears of land revenue; Modi Steels v. Employees’ State Insurance Corporation, (1989) 59 FLR 176 (All).
(v) Regional Director and not the ESI Inspector is empowered to determine the contributions by giving opportunity to the employer; Employees’ State Insurance Corporation, Jaipur v. Bharat Motors, Sri Ganganagar, 2001 LLR 49 (Raj HC).
(vi) In the absence of an order determining the amount payable under section 45A of the Employees’ State Insurance Act, 1948, recovery proceedings under section 45B of the Act could not be initiated; Employees’ State Insurance Corporation v. Depot Manager, M.P.S.R.T.C., (2003) 2 LLJ 351 (MP).
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1. Ins. by Act 44 of 1966, sec. 17 (w.e.f. 17-6-1967).
2. Subs. by Act 29 of 1989, sec. 15, for “obstructed” (w.e.f. 20-10-1989).
3. Ins. by Act 29 of 1989, sec. 15 (w.e.f. 20-10-1989).
4. Added by Act 29 of 1989, sec. 15 (w.e.f. 20-10-1989).
Section 45B. Recovery of contributions.
1[45B. Recovery of contributions.—Any contribution payable under this Act may be recovered as an arrears of land revenue.
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1. Ins. by Act 44 of 1966, sec. 17 (w.e.f. 17-6-1967).
Section 45C. Issue of certificate to the recovery officer.
1[45C. Issue of certificate to the Recovery Officer.(1) Where any amount is in arrear under this Act, the authorised officer may issue, to the Recovery Officer, a certificate under his signature specifying the amount of arrears and the Recovery Officer, on receipt of such certificate, shall proceed to recover the amount specified therein from the factory or establishment or, as the case may be, the principal or immediate employer by one or more of the modes mentioned below :
(a) attachment and sale of the movable or immovable property of the factory or establishment or, as the case may be, the principal or immediate employer;
(b) arrest of the employer and his detention in prison;
(c) appointing a receiver for the management of the movable or immovable properties of the factory or establishment or, as the case may be, the employer :
Provided that the attachment and sale of any property under this sections shall first be effected against the properties of the factory or establishment and where such attachment and sale is insufficient for recovering the whole of the amount of arrears specified in the certificate, the Recovery Officer may take such proceedings against the property of the employer for recovery of the whole or any part of such arrears.
(2) The authorised officer may issue a certificate under sub-section (1)
notwithstanding that proceedings for recovery of the arrears by any other mode have been taken.
s
Attachment of Bank account of the defaulter can be undertaken for recovery of dues, notwithstanding issuance of certificate under section 45C;Ranchi Refractories v. Regional Director, Employee State Insurance Corporation, Patna, 2005 LLR 620.
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1. Ins. by Act 29 of 1989, sec. 16 (w.e.f. 1-9-1991).
Section 45D. Recovery officer to whom certificate is to be forwarded.
1[45D. Recovery Officer to whom certificate is to be forwarded.— (1) The authorised officer may forward the certificate referred to in section 45C to the Recovery Officer within whose jurisdiction the employer –
(a) carries on his business or profession or within whose jurisdiction the principal place of his factory or establishment is situate; or
(b) resides or any movable or immovable property of the factory or establishment or the principal or immediate employer is situate.
(2) Where a factory or an establishment or the principal or immediate employer has property within the jurisdiction of more than one Recovery Officer and the Recovery Officer to whom a certificate is sent by the authorised officer –
(a) is not able to recover the entire amount by the sale of the property, movable or immovable, within his jurisdiction; or
(b) is of the opinion that, for the purpose of expediting or securing the recovery of the whole or any part of the amount, it is necessary so to do, he may send the certificate or, where only a part of the amount is to be recovered, a copy of the certificate certified in the manner prescribed by the Central Government and specifying the amount to be recovered to the Recovery Officer within whose jurisdiction the factory or establishment or the principal or immediate employer has property or the employer resides, and thereupon that Recovery Officer shall also proceed to recover the amount due under this section as if the certificate or the copy thereof had been the certificate sent to him by the authorised officer.
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1. Ins. by Act 44 of 1966, sec. 17 (w.e.f.17-6-1967).
Section 45E. Validity of certificate and amendment thereof.
1[45E. Validity of certificate and amendment thereof.—(1) When the authorised officer issues a certificate to a Recovery Officer under section 45C, it shall not be open to the factory or establishment or the principal or immediate employer to dispute before the Recovery Officer the correctness of the amount, and no objection to the certificate on any other ground shall also be entertained by the Recovery Officer.
(2) Notwithstanding the issue of a certificate to a Recovery Officer, the authorised officer shall have power to withdraw the certificate or correct any clerical or arithmetical mistake in the certificate by sending an intimation to the Recovery Officer.
(3) The authorised officer shall intimate to the Recovery Officer any orders withdrawing or canceling a certificate or any correction made by him under sub-section (2) or any amendment made under sub-section (4) of section 45F.
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1. Ins. by Act 44 of 1966, sec. 17 (w.e.f. 17-6-1967).
Section 45F. Stay of proceedings under certificate and amendment or withdrawal thereof.
1[45F. Stay of proceedings under certificate and amendment or withdrawal thereof.—(1) Notwithstanding that a certificate has been issued to the Recovery Officer for the Recovery of any amount, the authorised officer may grant time for the payment of the amount, and thereupon the Recovery Officer shall stay the proceedings until the expiry of the time so granted.
(2) Where a certificate for the recovery of amount has been issued, the authorised officer shall keep the Recovery Officer informed of any amount paid or time granted for payment, subsequent to the issue of such certificate.
(3) Where the order giving rise to a demand of amount for which a certificate for recovery has been issued has been modified in appeal or other proceedings under this Act, and, as a consequence thereof, the demand is reduced but the order is the subject-matter of a further proceeding under this Act, the authorised officer shall stay the recovery of such part of the amount of the certificate as pertains to the said reduction for the period for which the appeals or other proceeding remains pending.
(4) Where a certificate for the recovery of amount has been issued and subsequently the amount of the outstanding demand is reduced as a result of an appeal or other proceeding under this Act, the authorised officer shall, when the order which was the subject-matter of such appeal or other proceeding has become final and conclusive, amend the certificate or withdraw it, as the case may be.
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1. Ins. by Act 44 of 1966, sec. 17 (w.e.f. 17-6-1967).
Section 45G. Other modes of recovery.
1[45G. Other modes of recovery.—(1) Notwithstanding the issue of a certificate to the Recovery Officer under section 45C, the Director General or any other officer authorised by the Corporation may recover the amount by any one or more of the modes provided in this section.
(2) If any amount is due from any person to any factory or establishment or, as the case may be, the principal or immediate employer who is in arrears, the Director General or any other officer authorised by the Corporation in this behalf may require such person to deduct from the said amount the arrears due from such factory or establishment or, as the case may be, the principal or immediate employer under this Act and such person shall comply with any such requisition and shall pay the sum so deducted to the credit of the Corporation :
Provided that nothing in this sub-section shall apply to any part of the amount exempt from attachment in execution of a decree of a civil court under section 60 of the Code of Civil Procedure, 1908 (5 of 1908).
(3) (i) The Director General or any other officer authorised by the Corporation in this behalf may, at any time or from time to time, by notice in writing, require any person from whom money is due or may become due to the factory or establishment or, as the case may be, the principal or immediate employer or any person who holds or may subsequently hold money for or on account of the factory or establishment or, as the case may be, the principal or immediate employer, to pay to the Director General either forthwith upon the money becoming due or being held or at or within the time specified in the notice (not being before the money becomes due or is held) so much of the money as if sufficient to pay the amount due from the factory or establishment or, as the case may be, the principal or immediate employer in respect of arrears or the whole of the money when it is equal to or less than that amount.
(ii) A notice under this sub-section may be issued to any person who holds or may subsequently hold any money for or on account of the principal or immediate employer jointly with any other person and for the purposes of this sub-section, the shares of the joint-holders in such account shall be presumed, until the contrary is proved, to be equal.
(iii) A copy of the notice shall be forwarded to the principal or immediate employer at his last address known to the Director General or, as the case may be, the officer so authorised and in the case of a joint account to all the joint-holders at their last addresses known to the Director General or the officer so authorised.
(iv) Save as otherwise provided in this sub-section, every person to whom a notice is issued under this sub-section shall be bound to comply with such notice, and, in particular, where any such notice is issued to a post office, bank or an insurer, it shall not be necessary for any pass book, deposit receipt, policy or any other document to be produced for the purpose of any entry, endorsement or the like being made before payment is made notwithstanding any rule, practice or requirement to the contrary.
(v) Any claim respecting any property in relation to which a notice under this sub-section has been issued arising after the date of the notice shall be void as against any demand contained in the notice.
(vi) Where a person to whom a notice under this sub-section is sent objects to it by a statement on oath that the sum demanded or any part thereof is not due to the principal or immediate employer or that he does not hold any money for or on account of the principal or immediate employer, then, nothing contained in this sub-section shall be deemed to require such person to pay any such sum or part thereof, as the case may be, but if it is discovered that such statement was false in any material particular, such person shall be personally liable to the Director General or the Officer so authorised to the extent of his own liability to the principal or immediate employer on the date of the notice, or to the extent of the principal or immediate employer’s liability for any sum due under this Act, whichever is less.
(vii) The Director General or the officer so authorised may, at any time or from time to time, amend or revoke any notice issued under this sub-section or extend the time for making any payment in pursuance of such notice.
(viii) The Director General or the officer so authorised shall grant a receipt for any amount paid in compliance with a notice issued under this sub-section and the person so paying shall be fully discharged from his liability to the principal or immediate employer to the extent of the amount so paid.
(ix) any person discharging any liability to the principal or immediate employer after the receipt of a notice under this sub-section shall be personally liable to the Director General or the officer so authorised to the extent of his own liability to the principal or immediate employer so discharge or to the extent of the principal or immediate employer’s liability for any sum due under this Act, whichever is less.
(x) If the person to whom a notice under this sub-section is sent fails to make payment in pursuance thereof to the Director General or the officer so authorised, he shall be deemed to be a principal or immediate employer in default in respect of the amount specified in the notice and further proceedings may be taken against him for the realization of the amount as if it were an arrear due from him, in the manner provided in sections 45C to 45F and the notice shall have the same effect as an attachment of a debt by the Recovery Officer in exercise of his powers under section 45C.
(4) The Director General or the officer authorised by the Corporation in this behalf may apply to the court in whose custody there is money belonging to the principal or immediate employer for payment to him of the entire amount of such money, or if it is more than the amount due, an
amount sufficient to discharge the amount due.
(5) The Director General or any officer of the Corporation may, if so authorised by the Central Government by general or special order, recover any arrears of amount due from a factory or an establishment or, as the case may be, from the principal or immediate employer by distrait and sale of its or his movable property in the manner laid down in the Third Schedule to the Income-tax Act, 1961 (43 of 1961).
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1. Ins. by Act 44 of 1966, sec. 17 (w.e.f. 17-6-1967).
Section 45H. Application of certain provisions of the income-tax act.
1[45H. Application of certain provisions of the Income-tax Act.
The provisions of the Second and Third Schedules to the Income-tax Act, 1961 (43 of 1961) and the Income-tax (Certificate Proceedings) Rules, 1962, as in force from time to time, shall apply with necessary modifications as if the said provisions and the rules referred to the arrears of the amount of contributions, interests or damages under this Act instead of to the income-tax :
Provided that any reference in the said provisions and the rules to the “assessee” shall be construed as a reference to a factory or an establishment or the principal or immediate employer under this Act.
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1. Ins. by Act 44 of 1966, sec. 17 (w.e.f. 17-6-1967).
Section 45-I. Definitions.
1 DEFINITIONS. For the purposes of sections 45C to 45H, –
(a) “authorised officer” means the Director General, Insurance Commissioner, Joint Insurance Commissioner, Regional Director or such other officer as may be authorised by the Central Government, by notification in the Official Gazette;
(b) “Recovery Officer” means any officer of the Central Government, State Government or the Corporation, who may be authorised by the Central Government, by notification in the Official Gazette, to exercise the powers of a Recovery Officer under this Act.
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1. Ins. by Act 44 of 1966, sec. 17 (w.e.f. 17-6-1967).
Section 46. Benefits.
(1) Subject to the provisions of this Act, the insured persons, 1[their dependants or the persons hereinafter mentioned, as the case may be,] shall be entitled to the following benefits, namely:
(a) periodical payments to any insured person in case of his sickness certified by a duly appointed medical practitioner 2[or by any other person possessing such qualifications and experience as the Corporation may, by regulations, specify in this behalf] (hereinafter referred to as sickness benefit);
3[(b) periodical payments to an insured woman in case of confinement or mis-carriage or sickness arising out of pregnancy, confinement, premature birth of child or miscarriage, such woman being certified to be eligible for such payments by an authority specified in this behalf by the regulations (hereinafter referred to as maternity benefit);]
(c) periodical payments to an insured person suffering from disablement as a result of an employment injury sustained as an employee under this Act and certified to be eligible for such payments by an authority specified in this behalf by the regulations (hereinafter referred to as disablement benefit);
(d) periodical payments to such dependants of an insured person who dies as a result of an employment injury sustained as an employee under this Act, as are entitled to compensation under this Act (hereinafter referred to as dependants’ benefit); 4[***]
(e) medical treatment for and attendance on insured persons (hereinafter referred to as medical benefit); 2[and]
2[(f) payment to the eldest surviving member of the family of an insured person who has died, towards the expenditure on the funeral of the deceased insured person, or, where the insured person did not have a family or was not living with his family at the time of his death, to the person who actually incurs the expenditure on the funeral of the deceased insured person (to be known as 5[funeral expenses]):
Provided that the amount of such payment shall not exceed 6[such amount as may be prescribed by the Central Government] and the claim for such payment shall be made within three months of the death of the insured person or within such extended period as the Corporation or any officer or authority authorised by it in this behalf may allow.]
(2) The Corporation may, at the request of the appropriate Government, and subject to such conditions as may be laid down in the regulations, extend the medical benefits to the family of an insured person.
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1. Subs. by Act 44 of 1966, sec. 18, for “or, as the case may be, their dependants” (w.e.f. 28-1-1968).
2. Ins. by Act 44 of 1966, sec. 18 (w.e.f. 28-1-1968).
3. Subs. by Act 44 of 1966, sec. 18, for original clause (b) (w.e.f. 28-1-1968).
4. The word “and” omitted by Act 44 of 1966, sec. 18 (w.e.f. 28-1-1968).
5. Subs. by Act 29 of 1989, sec. 17, for “funeral benefit” (w.e.f. 20-10-1989).
6. Subs. by Act 29 of 1989, sec. 17, for “one hundred rupees” (w.e.f. 1-2-1991).
Section 47. When person eligible for sickness benefit.
[Rep. by the Employee’s State Insurance [Amendment] Act, 1989 (29 of 1989), sec. 18 (1-2-1991)].
Section 48. When person deemed available for employment.
[Rep. by the Employees’ State Insurance (Amendment) Act, 1966 (44 of 1966), sec. 20 (28-1-1968).]
Section 49. Sickness benefit.
1[49. Sickness benefit.—The qualification of a person to claim sickness benefit, the conditions subject to which such benefit may be given, the rates and period thereof shall be such as may be prescribed by the Central Government.
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1. Subs. by Act 29 of 1989, sec. 19, for section 49 (w.e.f. 1-2-1991).
Section 50. Maternity benefit.
1[50. Maternity benefit.—The qualification of an insured woman to claim maternity benefit, the conditions subject to which such benefit may be given, the rates and period thereof shall be such as may be prescribed by the Central Government.
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1. Subs. by Act 29 of 1989, sec. 19, for section 50 (w.e.f. 1-2-1991).
Section 51. Disablement benefit.
1[51. Disablement benefit.—Subject to the provisions of this Act 2[***],—
(a) a person who sustains temporary disablement for not less than three days (excluding the day of accident) shall be entitled to periodical payment 3[at such rates and for such periods and subject to such conditions as may be prescribed by the Central Government];
(b) a person who sustains permanent disablement, whether total or partial, shall be entitled to periodical payment 3[at such rates and for such periods and subject to such conditions as may be prescribed by the Central Government]:
4[***]]
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1. Subs. by Act 44 of 1966, sec. 23, for the original section 51 (w.e.f. 28-1-1968).
2. The words “and the regulations, if any” omitted by Act 29 of 1989, sec. 20 (w.e.f. 1-2-1991).
3. Subs. by Act 29 of 1989, sec. 20, for “for the period of such disablement in accordance with the provisions of the First Schedule” (w.e.f. -2-1991).
4. Proviso omitted by Act 29 of 1991, sec. 20 (w.e.f. 1-2-1991).
Section 51A. Presumption as to accident arising in course of employment.
1[51A. Presumption as to accident arising in course of employment.—For the purposes of this Act, an accident arising in the course of an insured person’s employment shall be presumed, in the absence of evidence to the contrary, also to have arisen out of that employment.
S
Accident arisen out of employment is to be presumed and no other evidence is required; Harjinder Kaur v. Employees’ State Insurance Corporation, (1987) 55 FLR 772 (P&H).
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1. Subs. by Act 44 of 1966, sec. 23, for the original section 51 (w.e.f. 28-1-1968).
Section 51B. Accidents happening while acting in breach of regulations, etc.
1[51B. Accidents happening while acting in breach of regulations, etc.An accident shall be deemed to arise out of and in the course of an insured person’s employment notwithstanding that he is at the time of the accident acting in contravention of the provisions of any law applicable to him, or of any orders given by or on behalf of his employer or that he is acting without instructions from his employer, if –
(a) the accident would have been deemed so to have arisen had the act not been done in contravention as aforesaid or on without instructions from his employer, as the case may be; and
(b) the act is done for the purpose of and in connection with the employer’s trade or business.
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1. Subs. by Act 44 of 1966, sec. 23, for the original section 51 (w.e.f. 28-1-1968).
Section 51C. Accidents happening while traveling in employer’s transport.
1[51C. Accidents happening while travelling in employer’s transport.—(1) An accident happening while an insured person is, with the express or implied permission of his employer, traveling as a passenger by any vehicle to or from his place of work shall, notwithstanding that he is under no obligation to his employer to travel by that vehicle, be deemed to arise out of and in the course of his employment, if –
(a) the accident would have been deemed so to have arisen had he been under such obligation; and
(b) at the time of the accident, the vehicle –
(i) is being operated by or on behalf of his employer or some other person by whom it is provided in pursuance of arrangements made with his employer, and
(ii) is not being operated in the ordinary course of public transport service.
(2) In this section “vehicle” includes a vessel and an aircraft.
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1. Subs. by Act 44 of 1966, sec. 23, for the original section 51 (w.e.f. 28-1-1968).
Section 51D. Accidents happening while meeting emergency.
1[51D. Accidents happening while meeting emergency.—An accident happening to an insured person in or about any premises at which he is for the time being employed for the purpose of his employer’s trade or business shall be deemed to arise out of and in the course of his employment, if it happens while he is taking steps, on an actual or supposed emergency at those premises, to rescue, succor or protect persons who are, or are thought to be or possibly to be, injured or imperiled, or to avert or minimize serious damage to property.
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1. Subs. by Act 44 of 1966, sec. 23, for the original section 51 (w.e.f. 28-1-1968).
Section 52. Dependant’s benefits.
1[52. Dependant’s benefit.—(1) If an insured person dies as a result of an employment injury sustained as an employee under this Act (whether or not he was in receipt of any periodical payment for temporary disablement in respect of the injury) dependant’s benefit shall be payable 2[at such rates and for such period and subject to such conditions as may be prescribed by the Central Government] to his dependants specified in 3[sub-clause (i), sub-clause (ia) and] sub-clause (ii) of clause (6A) of section 2.
(2) In case the insured person dies without leaving behind him the dependants as aforesaid, the dependants’ benefit shall be paid to the other dependants of the deceased at such rates and for such period and subject to such conditions as may be prescribed by the Central Government.
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1. Subs. by Act 44 of 1966, sec. 24, for the original section 52 (w.e.f. 28-1-1968).
2. Subs. by Act 29 of 1989, sec. 21, for “in accordance with the provisions of the First Schedule” (w.e.f. 1-2-1991).
3. Subs. by Act 29 of 1989, sec. 21, for “sub-clause (i) and” (w.e.f. 1-2-1991).
Section 52A. Occupational disease.
1[52A. Occupational disease.—(1) If an employee employed in any employment specified in Part A of the Third Schedule contracts any disease specified therein as an occupational disease peculiar to that employment, or if an employee employed in the employment specified in Part B of that Schedule for a continuous period of not less than six months contracts any disease specified therein as an occupational disease peculiar to that employment or if an employee employed in any employment specified in Part C of that Schedule for such continuous period as the Corporation may specify in respect of each such employment, contracts any disease specified therein as an occupational disease peculiar to that employment, the contracting of the disease shall, unless the contrary is proved, be deemed to be an “employment injury” arising out of and in the course of employment.
(2) (i) Where the Central Government or a State Government, as the case may be, adds any description of employment to the employments specified in Schedule III to the Workmen’s Compensation Act, 1923 (8 of 1923), by virtue of the powers vested in it under sub-section (3) of section 3 of the said Act, the said description of employment and the occupational diseases specified under that sub-section as peculiar to that description of employment shall be deemed to form part of the Third Schedule.
(ii) Without prejudice to the provisions of clause (i), the Corporation after giving, by notification in the Official Gazette, not less than three months’ notice of its intention so to do, may, by a like notification, add any description of employment to the employments specified in the Third Schedule and shall specify in the case of employments so added the diseases which shall be deemed for the purposes of this section to be occupational diseases peculiar to those employments respectively and thereupon the provisions of this Act shall apply, as if such diseases had been declared by this Act to be occupational diseases peculiar to those employments.
(3) Save as provided by sub-sections (1) and (2), no benefit shall be payable to an employee in respect of any disease unless the disease is directly attributable to a specific injury by accident arising out of and in the course of his employment.
(4) The provisions of section 51A shall not apply to the cases to which this section applies.
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1. Subs. by Act 44 of 1966, sec. 24, for the original section 52 (w.e.f. 28-1-1968).
Section 53. Bar against receiving or recovery of compensation or damages under any other law.
1[53. Bar against receiving or recovery of compensation or damages under any other law.An insured person or his dependants shall not be entitled to receive or recover, whether from the employer of the insured person or from any other person, any compensation or damages under the Workmen’s Compensation Act, 1923 (8 of 1923), or any other law for the time being in force or otherwise, in respect of an employment injury sustained by the insured person as an employee under this Act.
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1. Subs. by Act 44 of 1966, sec. 25, for the original section 53 (w.e.f. 28-1-1968).
Section 54. Determination of question of disablement.
1DETERMINATION OF QUESTION OF DISABLEMENT. Any question – (a) whether the relevant accident has resulted in permanent disablement; or
(b) whether the extent of loss of earning capacity can be assessed provisionally or finally; or
(c) whether the assessment of the proportion of the loss of earning capacity is provisional or final; or
(d) in the case of provisional assessment, as to the period for which such
assessment shall hold good, shall be determined by a medical board constituted in accordance with the provisions of the regulations and any such question shall hereafter be referred to as the “disablement question”
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1. Subs. by Act 44 of 1966, sec. 26, for the original section 54 (w.e.f. 28-1-1968).
Section 54A. References to medical boards and appeals to medical appeal tribunals and employees’ insurance courts.
1[54A. References to medical boards and appeals to medical appeal tribunals and Employees’ Insurance Courts.
(1) The case of any insured person for permanent disablement benefit shall be referred by the corporation to a medical board for determination of the disablement question and if, on that or any subsequent reference, the extent of loss of earning capacity of the insured person is provisionally assessed, it shall again be so referred to the medical board not later than the end of the period taken into account by the provisional assessment.
(2) If the insured person or the Corporation is not satisfied with the decision of the medical board, the insured person or the Corporation may appeal in the prescribed manner and within the prescribed time to – (i) the medical appeal tribunal constituted in accordance with the provisions of the regulations with a further right of appeal in the prescribed manner and within the prescribed time to the Employees’ Insurance Court, or
(ii) the Employees’ Insurance Court directly :
2Provided that no appeal by an insured person shall lie under this sub-section if such person has applied for commutation of disablement benefit on the basis of the decision of the medical board and received the commuted value of such benefit :
Provided further that no appeal by the Corporation shall lie under this sub-section if the Corporation paid the commuted value of the disablement benefit on the basis of the decision of the medical board.
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1. Subs. by Act 44 of 1966, sec. 26, for the original section 54 (w.e.f. 28-1-1968).
2. Ins. by Act 29 of 1989, sec. 22 (w.e.f. 20-10-1989).
Section 55. Review of decisions by medical board or medical appeal tribunal.
1[55. Review of decisions by medical board or medical appeal tribunal.—(1) Any decision under this Act of a medical board or a medical appeal tribunal may be reviewed at any time by the medical board or the medical appeal tribunal, as the case may be, if it is satisfied by fresh evidence that the decision was given in consequence of the non-disclosure or misrepresentation by the employee or any other person of a material fact (whether the non-disclosure or misrepresentation was or was not fraudulent).
(2) Any assessment of the extent of the disablement resulting from the relevant employment injury may also be reviewed by a medical board, if it is satisfied that since the making of the assessment there has been a sub-spatial and unforeseen aggravation of the results of the relevant injury :
Provided that an assessment shall not be reviewed under this sub-section unless the medical board is of opinion that having regard to the period taken into account by the assessment and the probable duration of the aggravation aforesaid, substantial injustice will be done by not reviewing it.
(3) Except with the leave of a medical appeal tribunal, an assessment shall not be reviewed under sub-section (2) on any application made less than five years, or in the case of a provisional assessment, six months, from the date thereof and on such a review the period to be taken into account by any revised assessment shall not include any period before the date of the application.
(4) Subject to the foregoing provisions of this section, a medical board may deal with a case of review in any manner in which it could deal with it on an original reference to it, and in particular may make a provisional assessment notwithstanding that the assessment under review was final; and the provisions of section 54A shall apply to an application for review under this section and to a decision of a medical board in connection with such application as they apply to a case for disablement benefit under that section and to a decision of the medical board in connection with such case.
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1. Subs. by Act 44 of 1966, sec. 27, for the original section 55 (w.e.f. 28-1-1968).
Section 55A. Review of dependants’ benefit.
1[55A. Review of dependants’ benefit.—(1) Any decision awarding dependants’ benefit under this Act may be reviewed at any time by the Corporation if it is satisfied by fresh evidence that the decision was given in consequence of non-disclosure or misrepresentation by the claimant or any other person of a material fact (whether the non-disclosure, or misrepresentation was or was not fraudulent) or that the decision is no longer in accordance with this Act due to any birth or death or due to the marriage, re-marriage or cesser of infirmity of, or attainment of the age of eighteen years by, a claimant.
(2) Subject to the provisions of this Act, the Corporation may, on such review as aforesaid, direct that the dependent’s benefit be continued, increased, reduced or discontinued.
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1. Subs. by Act 44 of 1966, sec. 27, for the original section 55 (w.e.f. 28-1-1968).
Section 56. Medical benefit.
(1) An insured person or (where such medical benefit is extended to his family) a member of his family whose condition requires medical treatment and attendance shall be entitled to receive medical benefit.
(2) Such medical benefit may be given either in the form of out patient treatment and attendance in a hospital or dispensary, clinic or other institution or by visits to the home of the insured person or treatment as inpatient in a hospital or other institution.
(3) A person shall be entitled to medical benefit during any 1[period] for which contributions are payable in respect of him or in which he is qualified to claim sickness benefit or maternity benefit 2[or is in receipt of such disablement benefit as does not disentitle him to medical benefit under the regulations]:
Provided that a person in respect of whom contribution ceases to be payable under this Act may be allowed medical benefit for such period and of such nature as may be provided under the regulations :
3Provided further that an insured person who ceases to be in insurable employment on account of permanent disablement shall continue, subject to payment of contribution and such other conditions as may be prescribed by the Central Government, to receive medical benefit till the date on which he would have vacated the employment on attaining the age of superannuating had he not sustained such permanent disablement :
Provided also that an insured person, who has attained the age of super-annotation, and his spouse shall be eligible to receive medical benefit subject to payment of contribution and such other conditions as may be prescribed by the Central Government.
Explanation : In this section, “superannuating”, in relation to an insured person, means the attainment by that person of such age as is fixed in the contract or conditions of service as the age on the attainment of which he shall vacate the insurable employment or the age of sixty years where no such age is fixed and the person is no more in the insurable employment.
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1. Subs. by Act 45 of 1984, sec. 8, for “week” (w.e.f. 27-1-1985).
2. Subs. by Act 53 of 1951, sec. 17, for “or, as provided under the regulations, is in receipt of disablement benefit” (w.e.f. 6-10-1951).
3. Ins. by Act 29 of 1989, sec. 23 (w.e.f. 1-2-1991).
Section 57. Scale of medical benefit.
(1) An insured person and (where such medical benefit is extended to his family) his family shall be entitled to receive medical benefit only of such kind and on such scale as may be provided by the State Government or by the Corporation, and an insured person or, where such medical benefit is extended to his family, his family shall not have a right to claim any medical treatment except such as is provided by the dispensary, hospital, clinic or other institution to which he or his family is allotted, or as may be provided by the regulations.
(2) Nothing in this Act shall entitle an insured person and (where such medical benefit is extended to his family) his family to claim reimbursement from the Corporation of any expenses incurred in respect of any medical treatment, except as may be provided by the regulations.
Section 58. Provision of medical treatment by state government.
(1) The State Government shall provide for insured persons and (where such benefit is extended to their families) their families in the State reasonable medical, surgical and obstetric treatment :
Provided that the State Government may, with the approval of the Corporation, arrange for medical treatment at clinics of medical practitioners on such scale and subject to such terms and conditions as may be agreed upon.
(2) Where the incidence of sickness benefit payment to insured persons in any State is found to exceed the all-India average, the amount of such excess shall be shared between the Corporation and the (Substituted for “Provincial” and “Province” by the A. O. 1950) State Government in such proportion as may be fixed by agreement between them :
Provided that the Corporation may in any case waive the recovery of the whole or any part of the share which is to be borne by the State Government.
(3) The corporation may enter into an agreement with a State Government in regard to the nature and scale of the medical treatment that should be
provided to insured persons and (where such medical benefit is extended to the families) their families (including provision of buildings, equipment, medicines, and staff) and for the sharing of the cost thereof and of any excess in the incidence of sickness benefit to insured persons between the Corporation and the State Government.
(4) In default of agreement between the Corporation and any State Government as aforesaid the nature and extent of the medical treatment to be provided by the State Government and the proportion in which the cost thereof and of the excess in the incidence of sickness benefit shall be shared between the Corporation and that Government, shall be determined by an arbitrator (who shall be or shall have been a Judge of the High Court of a State appointed by the Chief Justice of India (and the award of the arbitrator) shall be binding on the Corporation and the State Government.
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1. Subs. by the A.O. 1950, for “High Court of a Province”.
2. Subs. by Act 53 of 1951, sec. 18, for “for a Part A State” (w.e.f. 6-10-1951).
Section 59. Establishment and maintenance of hospitals, etc., by corporation.
(1) The Corporation may, with the approval of the State Government establish and maintain in a State such hospitals, dispensaries and other medical and surgical services as it may think fit for the benefit of insured persons and (where such medical benefit is extended to their families) their families.
(2) The Corporation may enter into agreement with any1[***] local authority, private body or individual in regard to the provision of medical treatment and attendance for insured persons and (where such medical benefit is extended to their families) their families, in any area and sharing the cost thereof.
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1. The words “Part B State”, omitted by the A.O. (No. 4) 1957 (w.e.f. 1-11-1956).
Section 59A. Provision of medical benefit by the corporation in lieu of state government.
1[59A. Provision of medical benefit by the Corporation in lieu of State Government.—(1) Notwithstanding anything contained in any other provisions of this Act, the Corporation may, in consultation with the State Government, undertake the responsibility for providing medical benefit to insured persons and where such medical benefit is extended to their families, to the families of such insured persons in the State subject to the condition that the State Government shall share the cost of such medical benefit in such proportion as may be agreed upon between the State Government and the Corporation.
(2) In the event of the Corporation exercising its power under sub-section (1), the provisions relating to medical benefit under this Act shall apply, so far as may be, as if a reference therein to the State Government were a reference to the Corporation.
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1. Ins. by Act 44 of 1966, sec. 28 (w.e.f. 17-6-1967).
Section 60. Benefit not assignable or attachable.
(1) The right to receive any payment of any benefit under this Act shall not be transferable or assignable.
(2) No cash benefit payable under this Act shall be liable to attachment or sale in execution of any decree or order of any Court.
Section 61. Bar of benefits under other enactments.
When a person is entitled to any of the benefits provided by this Act, he shall not be entitled to receive any similar benefit admissible under the provisions of any other enactment
Section 62. Persons not to commute cash benefits.
Save as may be provided in the regulations no person shall be entitled to commute for a lump sum any 1[disablement benefit] admissible under this Act.
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1. Subs. by Act 29 of 1989, sec. 24, for “periodical payment” (w.e.f. 20-10-1989).
Section 63. Persons not entitled to receive benefit in certain cases.
Save as may be provided in the regulations, no person shall be entitled to sickness benefit or disablement benefit for temporary disablement on any day on which he works or remains on leave or on a holiday in respect of which he receives wages or on any day on which he remains on strike.
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1. Subs. by Act 29 of 1989, sec. 25, for section 63 (w.e.f. 20-10-1989).
Section 64. Recipients of sickness or disablement benefit to observe conditions.
A person who is in receipt of sickness benefit or disablement benefit (other than benefit granted on permanent disablement) –
(a) shall remain under medical treatment at a dispensary, hospital, clinic or other institution provided under this act and shall carry out the instructions given by the medical officer or medical attendant in charge thereof;
(b) shall not while under treatment do anything which might retard or prejudice his chances of recovery.
(c) shall not leave the area in which medical treatment provided by this Act is being given, without the permission of the medical officer, medical attendant or such other authority as may be specified in this behalf by the regulations; and
(d) shall allow himself to be examined by any duly appointed medical officer 1[***] or other person authorised by the Corporation in this behalf.
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1. The words “or sick visitor” omitted by Act 29 of 1989, sec. 26 (w.e.f. 20-10-1989).
Section 65. Benefits not to be combined.
(1) An insured person shall not be entitled to receive for the same period –
(a) both sickness benefit and maternity benefit; or
(b) both sickness benefit and disablement benefit for temporary disablement; or
(c) both maternity benefit and disablement benefit for temporary disablement.
(2) Where a person is entitled to more than one of the benefits mentioned in sub-section (1), he shall be entitled to choose which benefit he shall receive.
Section 66. Corporation’s right to recover damages from employer in certain cases.
Rep. by the Employees’ State Insurance (Amendment) Act, 1966 (44 of 1966), sec. 29 (w.e.f. 17-6-1967)
Section 67. Corporations right to be indemnified in certain cases.
Rep. by the Employees’ State Insurance (Amendment) Act, 1966 (44 of 1966), sec. 29 (w.e.f. 17-6-1967).]
Section 68. Corporation’s rights where a principal employer fails or neglects to pay any contribution.
(1) If any principal employer fails or neglects to pay any contribution which under this Act he is liable to pay in respect of any employee and by reason thereof such person becomes disentitle to any benefit or entitled to a benefit on a lower scale, the Corporation may, on being satisfied that the contribution should have been paid by the principal employer, pay to the person the benefit at the rate to which he would have been entitled if the failure or neglect had not occurred and the Corporation shall be entitled to recover from the principal employer either –
1(i) the difference between the amount of benefit which is paid by the Corporation to the said person and the amount of the benefit which would have been payable on the basis of the contributions were in fact paid by the employer; or
(ii) twice the amount of the contribution which the employer failed or neglected to pay, whichever is greater.
(2) The amount recoverable under this section may be recovered as if it were an arrear of land-revenue 2[or under section 45C to section 45-I].
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Default is sufficient for the levy and recovery of damages; Employees’ State Insurance Corporation v.Jaipur Spinning and Weaving Mills Ltd., (1988) 56 FLR 431 (Raj).
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1. Subs. by Act 53 of 1951, sec. 19, for clause (i) (w.e.f. 6-10-1951).
2. Added by Act 29 of 1989, sec. 27 (w.e.f. 20-10-1989).
Section 69. Liability of owner or occupier of factories, etc., for excessive sickness benefit.
1) Where the Corporation considers that the incidence of sickness among insured persons is excessive by reason of –
(i) unsanitary working conditions in a factory or establishment or the neglect of the owner or occupier of the factory or establishment to observe any health regulations enjoined on him by or under any enactment, or
(ii) unsanitary conditions of any tenements or lodgings occupied by insured persons and such unsanitary conditions are attributable to the neglect of the owner of the tenements or lodgings to observe any health regulations enjoined on him by or under any enactment, the Corporation may send to the owner or occupier of the factory or establishment or to the owner of the tenements or lodgings, as the case may be, a claim for the payment of the amount of the extra expenditure incurred by the Corporation as sickness benefit; and if the claim is not settled by agreement, the Corporation may refer the matter, with a statement in support of its claim, to the appropriate Government.
(2) If the appropriate Government is of opinion that a prima facie case for inquiry is disclosed, it may appoint a competent person or persons to hold an inquiry into the matter.
(3) If upon such inquiry it is proved to the satisfaction of the person or persons holding the inquiry that the excess in incidence of sickness among the insured persons is due to the default or neglect of the owner or occupier of the factory or establishment or the owner of the tenements or lodgings, as the case may be, the said person or persons shall determine the amount of the extra expenditure incurred as sickness benefit, and the person or persons by whom the whole or any part of such amount shall be paid to the Corporation.
(4) A determination under sub-section (3) may be enforced as if it were a decree for payment of money passed in a suit by a Civil Court.
(5) For the purposes of this section “owner” of tenements or lodgings shall include any agent of the owner and any person who is entitled to collect the rent of the tenements or lodgings as a lessee of the owner.
Section 70. Repayment of benefit improperly received.
(1) Where any person has received any benefit or payment under this Act when he is not lawfully entitled thereto, he shall be liable to repay to the Corporation the value of the benefit or the amount of such payment, or in the case of his death his representative shall be liable to repay the same from the assets of the deceased, if any, in his hands.
(2) The value of any benefits received other than cash payments shall be determined by such authority as may be specified in the regulations made in this behalf and the decision of such authority shall be final.
(3) The amount recoverable under this section may be recovered as if it were an arrear of land-revenue 1or under section 45-C to section 45-I.
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1. Added by Act 29 of 1989, sec. 27 (w.e.f. 20-10-1989).
Section 71. Benefit payable up to and including day of death.
1 If a person during any period for which he is entitled to a cash benefit under this Act, the amount of such benefit up to and including the day of his death shall be paid to any person nominated by the deceased person in writing in such form as may be specified in the regulations or, if there is no such nomination, to the heir or legal representative of the deceased person.
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1. Subs. by Act 29 of 1989, sec. 28, for “Except as provided in the provision to sub-section (2) of section 50, if a person dies” (w.e.f. 1-2-1991).
Section 72. Employer not to reduce wages, etc.
No employer by reason only of his liability for any contributions payable under this act shall, directly or indirectly, reduce the wages of any employee, or except as provided by the regulations, discontinue or reduce benefits payable to him under the conditions of his service which are similar to the benefits conferred by this Act.
Section 73. Employer not to dismiss or punish employee during period of sickness, etc.
(1) No employer shall dismiss, discharge, or reduce or otherwise punish an employee during the period the employee is in receipt of sickness benefit or maternity benefit, nor shall he, except as provided under the regulations, dismiss, discharge or reduce or otherwise punish an employee during the period he is in receipt of disablement benefit for temporary disablement or is under medical treatment for sickness or is absent from work as a result of illness duly certified in accordance with the regulations to arise out of the pregnancy or confinement rendering the employee unfit for work.
(2) No notice of dismissal or discharge or reduction given to an employee during the period specified in sub-section (1) shall be valid or operative.
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(i) Section 73 is not applicable to a case where termination of services follows automatically; Moti Singh v. Factory Manager, Cimmco Ltd., (1989) 58 FLR 900 (Raj).
(ii) The employer cannot dismiss, discharge or reduce or otherwise punish the employee during the period an employee is in receipt of sickness benefits or maternity benefits; Management of Guest Keen Williams Ltd. v. Presiding Officers, 2nd Addl. Labour Court, (1992) 1 CLR 433 (Karn).
Section 74. Constitution of employees’ insurance court.
(1) The State Government shall, by notification in the Official Gazette, constitute an Employees’ Insurance Court for such local area as may be specified in the notification.
(2) The Court shall consist of such number of Judges as the State Government may think fit.
(3) Any person who is or has been a judicial officer or is a legal practitioner of five years standing shall be qualified to be a Judge of the Employees’ Insurance Court.
(4) The State Government may appoint the same Court for two or more local areas or two or more Courts for the same local area.
(5) Where more than one Court has been appointed for the same local area, the State Government may by general or special order, regulate the distribution of business between them.
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An employee insured under this Act cannot claim ‘compensation’ under the Workmen’s Compensation Act; Abad Fisheries v. Commissioner for Workmen’s Compensation, (1985) 50 FLR 512.
Section 75. Matters to be decided by employees’ insurance court.
(1) If any question or dispute arises as to – (a) whether any person is an employee within the meaning of this Act or whether he is liable to pay the employee’s contribution, or
(b) the rate of wages or average daily wages of an employee for the purposes of this Act, or
(c) the rate of contribution payable by a principal employer in respect of any employee, or
(d) the person who is or was the principal employer in respect of any employee, or
(e) the right of any person to any benefit and as to the amount and duration thereof, or
1[(ee) any direction issued by the Corporation under section 55A on a review of any payment of dependants’ benefit, or]
2[***]
(g) any other matter which is in dispute between a principal employer and the Corporation, or between a principal employer and an immediate employer or between a person and the Corporation or between an employee and a principal or immediate employer, in respect of any contribution or benefit or other dues payable or recoverable under this Act, 3[or any other matter required to be or which may be decided by the Employees’ Insurance Court under this Act],
such question or dispute 4[subject to the provisions of sub-section (2A)] shall be decided by the Employees’ Insurance Court in accordance with the provisions of this Act.
(2) 4[Subject to the provisions of sub-section (2A), the following claims] shall be decided by the Employees’ Insurance Court, namely:—
(a) claim for the recovery of contributions from the principal employer;
(b) claim by a principal employer to recover contributions from any immediate employer;
5[***]
(d) claim against a principal employer under section 68;
(e) claim under section 70 for the recovery of the value or amount of the benefits received by a person when he is not lawfully entitled thereto; and
(f) any claim for the recovery of any benefit admissible under this Act.
6[(2A) If in any proceedings before the Employees’ Insurance Court a disablement question arises and the decision of a medical board or a medical appeal tribunal has not been obtained on the same and the decision of such question is necessary for the determination of the claim or question before the Employees’ Insurance Court, that Court shall direct the Corporation to have the question decided by this Act and shall thereafter proceed with the determination of the claim or question before it in accordance with the decision of the medical board or the medical appeal tribunal, as the case may be, except where an appeal has been filed before the Employees’ Insurance Court under sub-section (2) of section 54A in which case the Employees’ Insurance Court may itself determine all the issues arising before it.]
7[(2B)No matter which is in dispute between a principal employer and the Corporation in respect of any contribution or any other dues shall be raised by the principal employer in the Employees’ Insurance Court unless he has deposited with the Court fifty per cent of the amount due from him as claimed by the Corporation :
Provided that the Court may, for reasons to be recorded in writing, waive or reduce the amount to be deposited under this sub-section.
(3) No Civil Court shall have jurisdiction to decide or deal with any question or dispute as aforesaid or to adjudicate on any liability which by or under this Act is to be decided by a medical board, or by a medical appeal tribunal or by the Employees’ Insurance Court.
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(i) When an appropriate remedy is available for appeal under section 75 of the E.S.I. Act, the employer cannot file a writ petition; Tuticorin Thermal Power Station Industrial Cooperative Society Ltd. v. Deputy Regional Director, E.S.I. Corpn., Madurai, 2005 LLR 963.
(ii) Section 75(2A) is applicable in cases of unscheduled injuries; Employees’ State Insurance Corporation v. Hari Hazra, (1989) 58 FLR 762 (Cal).
(iii) Insurance Court is a court for all practical purposes; J.C. Patel Kamalaben v. Employees’ State Insurance Corporation, (1987) 55 FLR 337 (Bom).
(iv) Jurisdiction of civil court on a dispute as to whether this Act is applicable to a factory or not has been excluded under section 75(3); Employees’ State Insurance Corporation v. Nirmala Chemical Industries, (1994) 1 ALT 4 (DN) AP.
(v) Applying the theory of notional extension, the E.S.I.C. will be liable to pay compensation to the employee’s dependants, who died on his way to the factory; Sheela v. Employees’ State Insurance Corporation, (1990) 77 FJR 119 (P&H).
(vi) The ESI Court has power to grant an injunction or interim stay; Aggarwal Hardware Industries v. Employees’ State Insurance Corporation, 1976 Lab IC 1354.
(vii) A Civil Court cannot determine whether this Act is applicable to an establishment or not; Employees’ State Insurance Corporation v. Jalandhar Gymkhana Club, 1992 LLR 733 (P&H).
(viii) Jurisdiction of a civil court is barred/ousted; Employees’ State Insurance Corporation v. Jalandhar Gymkhana Club, 1992 LLR 733 (P&H).
(ix) The cause of action for contribution would arise only after the decision of the Insurance Court in the proceedings laid under section 75 of the Act. Therefore, in all matters arising for consideration of the Court under section 75 which relate back to the period anterior to October 20, 1989, from when on the amended Act came into force, the bar of limitation would not operate; Deputy Director, Employees’ State Insurance Corporation v. Bhuwalka Steel Industries Ltd., (2003) 2 LLJ 348 (Kar).
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1. Subs. by Act 44 of 1966, sec. 32, for clause (ee) (w.e.f. 28-1-1968).
2. Clause (f) omitted by Act 44 of 1966, sec. 32 (w.e.f. 28-1-1968).
3. Ins. by Act 44 of 1966, sec. 32 (w.e.f. 28-1-1968).
4. Subs. by Act 44 of 1966, sec. 32, for “The following claims” (w.e.f. 28-1-1968).
5. Clause (c) omitted by Act 44 of 1966, sec. 32 (w.e.f. 28-1-1968).
6. Ins. by Act 44 of 1966, sec. 32 (w.e.f. 28-1-1968).
7. Ins. by Act 29 of 1989, sec. 29 (w.e.f. 20-10-1989).
8. Subs. by Act 44 of 1966, sec. 32, for “the Employees’ Insurance Court” (w.e.f. 28-1-1968).
Section 76. Institution of proceedings, etc.
(1) Subject to the provisions of this Act and any rules made by the State Government, all proceedings before the Employees’ Insurance Court shall be instituted in the Court appointed for the local area in which the insured person was working at the time the question or dispute arose.
(2) If the Court is satisfied that any matter arising out of any proceeding pending before it can be more conveniently dealt with by any other Employees’ Insurance Court in the same State, it may, subject to any rules made by the State Government in this behalf, order such matter to be transferred to such other Court for disposal and shall forthwith transmit to such other Court the records connected with that matter.
(3) The State Government may transfer any matter pending before any Employees’ Insurance Court in the State to any such Court in another State with the consent of the State Government of that State.
(4) The Court to which any matter is transferred under sub-section (2) or sub-section (3) shall continue the proceedings as if they had been originally instituted in it.
Section 77. Commencement of proceedings.
(1) The proceedings before an Employees’ Insurance Court shall be commenced by application.
1 (1A) Every such application shall be made within a period of three years from the date on which the cause of action arose.
Explanation : For the purpose of this sub-section, –
(a) the cause of action in respect of a claim for benefit shall not be deemed to arise unless the insured person or in the case of dependants’ benefit, the dependants of the insured person claims or claim that benefit in accordance with the regulations made in that behalf within a period of twelve months after the claim became due or within such further period as the Employees’ Insurance Court may allow on grounds which appear to it to be reasonable;
2(b) the cause of action in respect of a claim by the Corporation for recovering contributions (including interest and damages) from the principal employer shall be deemed to have arisen on the date on which such claim is made by the Corporation for the first time : Provided that no claim shall be made by the Corporation after five years of the period to which the claim relates;
(c) the cause of action in respect of a claim by the principal employer for recovering contributions from an immediate employer shall not be deemed to arise till the date by which the evidence of contributions having been paid s due to be received by the Corporation under the regulation.
(2) Every such application shall be in such form and shall contain such particulars and shall be accompanied by such fee, if any, as may be prescribed by rules made by the State Government in consultation with the Corporation.
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(i) For disablement benefit, ESIC should be approached first; Radhey Shyam v. Employees’ State Insurance Corporation, (1989) 58 FLR 133 (MP).
(ii) An insured employee cannot claim “disablement benefit” from the Employees’ Insurance Court without first approaching the E.S.I.C.; Radhey Shyam v. Employees’ State Insurance Corporation, (1989) 58 FLR 133 (MP).
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1. Ins. by Act 44 of 1966, sec. 33 (w.e.f. 28-1-1968).
2. Subs. by Act 29 of 1989, sec. 30, for clause (b) (w.e.f. 20-10-1989).
Section 78. Powers of employees’ insurance court.
(1) The Employees’ Insurance Court shall have all the powers of a Civil Court for the purposes of summoning and enforcing the attendance of witnesses, compelling the discovery and production of documents and material objects, administering oath and recording evidence and such Court shall be deemed to be a Civil Court within the meaning of 11[section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974)].
(2) The Employees’ Insurance Court shall follow such procedure as may be prescribed by rules made by the State Government.
(3) All costs incidental to any proceeding before an Employees’ Insurance Court shall, subject to such rules as may be made in this behalf by the (Substituted for “Provincial” by the A. O. 1950) [State] Government, be in the discretion of the Court.
(4) An order of the Employees’ Insurance Court shall be enforceable as if it were a decree passed in a suit by a Civil Court.
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Only some of the powers of the Civil Court have been conferred on the ESI Court;Arul Theatre v. Regional Director, Employees’ State Insurance Corporation (1987) 55 FLR 3 (Bom).
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1. Subs. by Act 45 of 1984, sec. 9, for “section 195 Chapter XXXV of the Code of Criminal Procedure, 1898” (w.e.f.27-1-1985).
Section 79. Appearance by legal practitioners, etc.
Any application, appearance or act required to be made or done by any person to or before an Employees’ Insurance Court (other than appearance of a person required for the purpose of his examination as a witness) may be made or done by a legal practitioner or by an officer of a registered trade union authorised in writing by such person or with the permission of the Court, by any other person so authorised.
Section 80. Benefit not admissible unless claimed in time.
[Rep. by the Employees’ State Insurance (Amendment) Act, 1966 (44 of 1966), sec. 34 (w.e.f. 28-1-1968).]
Section 81. Reference to high court.
An Employees’ Insurance Court may submit any question of law for the decision of the High Court arid if it does so, shall decide the question pending before it in accordance with such decision.
Section 82. Appeal.
(1) Save as expressly provided in this section, no appeal shall lie from an order of an Employees’ Insurance Court.
(2) An appeal shall lie to the High Court from an order of an Employees’ Insurance Court if it involves a substantial question of law.
(3) The period of limitation for an appeal under this section shall be sixty days.
(4) The provisions of sections 5 and 12 of the 1limitation Act, 1963 (36 of 1963) shall apply to appeals under this section.
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(i) Different units of appellant constitute single unit for the purpose of application of the Act; Srinidhi Silks and Textiles, Shimoga v. Regional Director, E.S.I. Corporation, Bangalore, 2006 LLR 76.
(ii) Recommendations of Medical Board are not binding on the E.S.I. Court; Chhotelal v. Regional Director of Employees’ State Insurance Corporation, (1989) 58 FLR 158 (MP).
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1. Subs. by Act 29 of 1989, sec. 31, for “Indian Limitation Act, 1908 (9 of 1908) (w.e.f. 20-10-1989).
Section 83. Stay of payment pending appeal.
Where the Corporation has presented an appeal against an order of the Employees’ Court, that Court may, and if so directed by the High Court, shall, pending the decision on the appeal, withhold the payment of any sum directed to be paid by the order appealed against.
Section 84. Punishment for false statement.
Whoever, for the purpose of causing any increase in payment or benefit under this Act, or for the purpose of causing any payment or benefit to be made where no payment or benefit is authorised by or under this Act, or for the purpose of avoiding any payment to be made by himself under this Act or enabling any other person to avoid any such payment, knowingly makes or causes to be made any false statement or false representation, shall be punishable with imprisonment for a term which may extend to 1six months or with fine not exceeding 2two thousand rupees or with both :
3Provided that where an insured person is convicted under this section, he shall not be entitled for any cash benefit under this Act for such period as may be prescribed by the Central Government.
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1. Subs. by Act 29 of 1989, sec. 32(i), for “three months” (w.e.f. 20-10-1989).
2. Subs. by Act 29 of 1989, sec. 32, for “five hundred” (w.e.f. 20-10-1989).
3. Ins. by Act 29 of 1989, sec. 32(iii) (w.e.f. 1-2-1991).
Section 85. Punishment for failure to pay contributions, etc.
If any person – (a) fails to pay any contribution which under this Act he is liable to pay, or
(b) deducts or attempts to deduct from the wages of an employee the whole or any part of the employer’s contribution, or
(c) in contravention of section 72 reduces the wages or any privileges or benefits admissible to an employee, or
(d) in contravention of section 73 or any regulation dismisses, discharges, reduces or otherwise punishes an employee, or
(e) fails or refuses to submit any return required by the regulations or makes a false return, or
(f) obstructs any Inspector or other official of the Corporation in the discharge of his duties, or
(g) is guilty of any contravention of or non-compliance with any of the requirements of this Act or the rules or the regulations in respect of which no special penalty is provided,
1[he shall be punishable—
2[(i) where he commits an offence under clause (a), with imprisonment for a term which may extend to three years but—
(a) which shall not be less than one year, in case of failure to pay the employee’s contribution which has been deducted by him from the employee’s wages and shall also be liable to fine of ten thousand rupees;
(b) which shall not be less than six months, in any other case and shall also be liable to fine of five thousand rupees :
Provided that the Court may, for any adequate and special reasons to be recorded in the judgment, impose a sentence or imprisonment for a lesser term; (ii) where he commits an offence under any of the clauses (b) to (g) (both inclusive), with imprisonment for a term which may extend to one year or with fine which may extend to four thousand rupees, or with both.
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(i) Offences on the part of the employer for non-compliance of the provisions of the Act does not get wiped off with the belated payment; Sub-Regional Office, E.S.I. Corporation v. Krishchand Shetty, 2005 LLR 853.
(ii) As a partner of the firm owning the factory, he is liable to be prosecuted for non-distribution of the identity/contribution cards; Shankar Bhattacharjee v. Bholanath Ghosh, (1987) 1 CLR 413 (Cal).
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1. Subs. by Act 38 of 1975, sec. 4, for certain words (w.e.f. 1-9-1975).
2. Subs. by Act 29 of 1989, sec. 33, for clauses (i) and (ii) (w.e.f. 20-10-1989).
Section 85A. Enhanced punishment in certain cases after previous conviction.
1 ENHANCED PUNISHMENT IN CERTAIN CASES AFTER PREVIOUS CONVICTION. –
Whoever, having been convicted by a court of an offence punishable under this Act, commits the same offence shall, for every such subsequent offence, be punishable with imprisonment for a term which may extend to 2two years and with fine of five thousand rupees :
Provided that where such subsequent offence is for failure by the employer to pay any contribution which under this Act he is liable to pay, he shall, for every such subsequent offence, be punishable with imprisonment for a term which may extend to 3five years but which shall not be less than two years and shall also be liable to fine of twenty-five thousand rupees.
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1. Ins. by Act 38 of 1975, sec. 5 (w.e.f. 1-9-1975).
2. Subs. by Act 29 of 1989, sec. 34, for “one year or with fine which may extend to two thousand rupees, or both” (w.e.f. 20-10-1989).
3. Subs. by Act 29 of 1989, sec. 34, for certain words (w.e.f. 20-10-1989).
Section 85B. Power to recover damages.
1[85B. Power to recover damages.—(1) Where an employer fails to pay the amount due in respect of any contribution or any other amount payable under this Act, the Corporation may recover 2[from the employer by way of penalty such damages not exceeding the amount of arrears as may be specified in the regulations]:
Provided that before recovering such damages, the employer shall be given a reasonable opportunity of being heard:
3[Provided further that the Corporation may reduce or waive the damages recoverable under this section in relation to an establishment which is a sick industrial company in respect of which a scheme for rehabilitation has been sanctioned by the Board for Industrial and Financial Reconstruction established under section 4 of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986), subject to such terms and conditions as may be specified in regulations.]
(2) Any damages recoverable under sub-section (1) may be recovered as an arrear of land revenue 4[or under section 45C to section 45-I].]
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(i) Damages may be levied for delay in payment of contributions; Employees’ State Insurance Corporation v. Indoflex Pvt. Ltd., (1988) 56 FLR 109 (Raj).
(ii) Section 68 has no bearing on section 85B; Hind Art Press v. Employees’ State Insurance Corporation, (1989) 59 FLR 778 (Karn).
(iii) Levy of damages is penal in nature. Damages cannot, therefore, be levied in a cursory manner; Beama Mfg. (P.A.) Ltd. v. Regional Director, Employees’ State Insurance Corporation, (1990) 2 LLN 24 (Mad).
(iv) In recovering the damages as envisaged in section 85B, if at a given point of time it is found that the extent of damages claimed would exceed the ceiling of 100 per cent, such damages would get frozen and can not be recovered to the extent to which the ceiling prescribed by section 85B got exceeded; Employees’ State Insurance Corporation v. Nasniat Pharmaceuticals Chemicals Pvt. Ltd., (1998) 1 SCC 185.
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1. Ins. by Act 38 of 1975, sec. 5 (w.e.f. 1-9-1975).
2. Subs. by Act 29 of 1989, sec. 35, for certain words (w.e.f. 1-1-1992)
.3. Ins. by Act 29 of 1989, sec. 35 (w.e.f. 1-1-1992).
4. Added by Act 29 of 1989, sec. 35 (w.e.f. 1-1-1992).
Section 85C. Power of court to make orders.
1[85C. Power of Court to make orders.—(1) Where an employer is convicted of an offence for failure to pay any contribution payable under this Act, the court may, in addition to awarding any punishment, by order, in writing, require him within a period specified in the order (which the court may if it thinks fit and on application in that behalf, from time to time, extend), to pay the amount of contribution in respect of which the offence was committed 2and to furnish the return relating to such contributions.
(2) Where an order is made under sub-section (1), the employer shall not be liable under this Act in respect of the continuation of the offence during the period or extended period, if any, allowed by the court, but if, on the expiry of such period or extended period, as the case may be, the order of the court has not been fully complied with, the employer shall be deemed to have committed a further offence and shall be punishable with imprisonment in respect thereof under section 85 and shall also be liable to pay fine which may extend to 3one thousand rupees for every day after such expiry on which the order has not been complied with.
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1. Ins. by Act 38 of 1975, sec. 5 (w.e.f. 1-9-1975).
2. Added by Act 29 of 1989, sec. 36 (w.e.f. 20-10-1989)
3. Subs. by Act 29 of 1989, sec. 36, for “one hundred” (w.e.f. 20-10-1989).
Section 86. Prosecutions.
(1) No prosecution under this Act shall be instituted except by or with the previous sanction of the Insurance Commissioner 1or of such other officer of the corporation as may be authorised in this behalf by the 2Director General of the Corporation.
3(2) No court inferior to that of a Metropolitan Magistrate or Judicial Magistrate of the First Class shall try any offence under this Act.
(3) No Court shall take cognizance of any offence under this Act except on a complaint made in writing in respect thereof 4[***]
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1. Added by Act 53 of 1951, sec. 22 (w.e.f. 6-10-1951).
2. Subs. by Act 44 of 1966, sec. 35, for “Central Government” (w.e.f. 17-6-1967).
3. Subs. by Act 29 of 1989, sec. 37, for sub-section (2) (w.e.f. 20-10-1989).
4. Certain words omitted by Act 29 of 1989, sec. 37 (w.e.f. 20-10-1989).
Section 86A. Offences by companies.
1 (1) If the person committing an offence under this Act is a company, every person, who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly : Provided that nothing contained in this sub-section shall render any person liable to any punishment, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed with the consent or connivance of, or is attributable to, any neglect on the part of, any director or manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
Explanation : For the purposes of this section, – (i) “company” means any body corporate and includes a firm and other associations of individuals; and (ii) “director” in relation to –
(a) a company, other than a firm, means the managing director or a whole-time director;
(b) a firm means a partner in the firm.
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When an offence has been committed by a company and to make a director liable, the averments in the complaint or the documents produced along with the complaint must prima facie indicate that such director was in charge of and responsible for the conduct of the business of the company; Siddharth Kejriwal v. Employees’ State Insurance Corporation, (1998) 92 FJR 89 (Karn).
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1. Ins. by Act 29 of 1989, sec. 38 (w.e.f. 20-10-1989).
Section 87. Exemption of a factory or establishment or class of factories, or establishments.
The appropriate Government, may, by notification in the Official Gazette and subject to such conditions as may be specified in the notification, exempt any factory or establishment or class of factories or establishments in any specified area from the operation of this Act for a period not exceeding one year and may from time to time by like notification renew any such exemption for periods not exceeding one year at a time.
Section 88. Exemption of persons or class of persons.
The appropriate Government may, by notification in the Official Gazette and subject to such conditions as it may deem fit to impose, exempt any persons or class of persons employed in any factory or establishment or class of factories or establishments to which this Act applies from the operation of the Act.
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Exempting persons or class of persons from coverage under ESI Act should not be in a mechanical manner hence an employer, seeking exemption under ESI Act, has to prove that medical facilities and other benefits as extended to employees are better than those under the ESI Act; Lark Laboratories (India) Ltd. v. Government of NCT of Delhi, 2006 LLR 1093: 2007 (1) LLJ 72 (Del HC).
Section 89. Corporation to make representation.
No exemption shall be granted or renewed under section 87 or section 88, unless a reasonable opportunity has been given to the Corporation to make any representation it may wish to make in regard to the proposal and such representation has been considered by the appropriate Government.
Section 90. Exemption of factories or establishments belonging to government or any local authority.
The appropriate Government may, 1after consultation with the Corporation, by notification in the Official Gazette and subject to such conditions as may be specified in the notifications, exempt any factory or establishment belonging to 2[***] any local authority from the operation of this Act, if the employees in any such factory or establishment are otherwise in receipt of benefits substantially similar or superior to the benefits provided under this Act.
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1. Ins. by Act 44 of 1966, sec. 36 (w.e.f. 17-6-1967).
2. The words “The Government or” omitted by Act 29 of 1989, sec. 39 (w.e.f. 20-10-1989).
Section 91. Exemption from one or more provisions of the act.
The appropriate Government may, with the consent of the Corporation, by notification in the Official Gazette, exempt any employees or class of employees in any factory or establishment or class of factories or establishments from one or more of the provisions relating to the benefits provided under this Act.
Section 91A. Exemptions to be either prospective or retrospective.
1[91A. Exemptions to be either prospective or retrospective.
Any notification granting exemption under section 87, section 88, section 90 or section 91 may be issued so as to take effect either prospectively or retrospectively on such date as may be specified therein.
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1. Ins. by Act 44 of 1966, sec. 37 (w.e.f. 17-6-1967).
Section 91B. Misuse of benefits.
1[91B. Misuse of benefits.—If the Central Government is satisfied that the benefits under this Act are being misused by insured persons in a factory or establishment, that Government may, by order, published in the Official Gazette, disentitle such persons from such of the benefits as it thinks fit :
Provided that no such order shall be passed unless a reasonable opportunity of being heard is given to the concerned factory or establishment, insured persons and the trade unions registered under the Trade Unions Act, 1926 (16 of 1926), having members in the factory or establishment.
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1. Ins. by Act 29 of 1989, sec. 40 (w.e.f. 20-10-1989).
Section 91C. Writing off of losses.
1 WRITING OFF OF LOSSES. -Subject to the conditions as may be prescribed by the Central Government, where the Corporation is of opinion that the amount of contribution, interest and damages due to the Corporation is irrecoverable, the Corporation may sanction the writing off finally of the said amount.
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1. Ins. by Act 29 of 1989, sec. 40 (w.e.f. 20-10-1989).
Section 92. Power of central government to give directions.
1(1) The Central Government may give directions to a State Government as to the carrying into execution of this Act in the State.
2(2) The Central Government may, from time to time, give such directions to the Corporation as it may think fit for the efficient administration of the Act, and if any such direction is given, the Corporation shall comply with such direction.
————
1. Section 92 renumbered as sub-section (1) thereof by Act 29 of 1989, sec. 41 (w.e.f. 20-10-1989).
2. Ins. by Act 29 of 1989, sec. 41 (w.e.f. 20-10-1989).93. CORPORATION OFFICERS AND SERVANTS TO BE PUBLIC SERVANTS. –
All officers and servants of the Corporation shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).
Section 93A. Liability in case of transfer of establishment.
1[93A. Liability in case of transfer of establishment.—Where an employer, in relation to a factory or establishment, transfers that factory or establishment in whole or in part, by sale, gift, lease or licence or in any other manner whatsoever, the employer and the person to whom the factory or establishment is so transferred shall jointly and severally be liable to pay the amount due in respect of any contribution or any other amount payable under this Act in respect of the periods up to the date of such transfer :
Provided that the liability of the transferee shall be limited to the value of the assets obtained by him by such transfer.
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A plain reading of section 93A of the ESI Act, makes it clear that the word ‘transfer’ in section 93A has a different connection than ‘transfer’ under the Transfer of Property Act, hence the purchaser of property cannot be held liable to pay ESI contributions of an establishment; ANK Seals, Nagpur v. Employees’ State Insurance Corporation, Nagpur, 2006 LLR (SN) 1277: 2007 (1) LLJ 310 (Bom HC).
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1. Ins. by Act 38 of 1975, sec. 6 (w.e.f. 1-9-1975).
Section 94. Contributions, etc., due to corporation to have priority over other debts.
There shall be deemed to be included among the debts which, under section 49 of the Presidency-towns Insolvency Act, 1909 (3 of 1909),or under section 61 of the Provincial Insolvency Act, 1920 (5 of 1920), 1or under any law relating to insolvency in force 2in the territories which, immediately before the 1st November, 1956, were comprised in a Part B State, 3or under section 530 of the Companies Act, 1956 (1 of 1956), are in the distribution of the property of the insolvent or in the distribution of the assets of a company being wound up, to be paid in priority to all other debts, the amount due in respect of any contribution or any other amount payable under this Act the liability wherefore accrued before the date of the order of adjudication of the insolvent or the date of the winding up, as the case may be.
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1. Ins. by Act 53 of 1951, sec. 23 (w.e.f. 6-10-1951).
2. Subs. by A.O. (No. 3) 1956, for “in a Part B State”.
3. Subs. by Act 29 of 1989, sec. 42, for “or under section 230 of the Indian Companies Act, 1913 (7 of 1913)” (w.e.f. 20-10-1989).
Section 94A. Delegation of powers.
1[94A. Delegation of powers.—The Corporation, and, subject to any regulations made by the Corporation in this behalf, the Standing Committee may direct that all or any of the powers and functions which may be exercised or performed by the Corporation or the Standing Committee, as the case may be, may, in relation to such matters and subject to such conditions, if any, as may be specified, be also exercisable by any officer or authority subordinate to the Corporation.
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Delegation of power in matter of levy may be made in favour of all officers; Regional Director, Employees’ State Insurance Corporation v. P.B. Bhaskaran, (1988) 56 FLR 9 (Summary) Ker.
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1. Ins. by Act 53 of 1951, sec. 24 (w.e.f. 6-10-1951).
Section 95. Power of central government to make rules.
(1) The Central Government may, 1after consultation with the Corporation and subject to the condition of previous publication, make rules not inconsistent with this Act for the purpose of giving effect to the provisions thereof.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:
2(a) the limit of wages beyond which a person shall not be deemed to be an employee;
(ab) the limit of maximum monthly salary for the purpose of sub-section (1) of section 17;
3(ac) the manner in which 4appointments and elections of members of the Corporation, the Standing Committee and the Medical Benefit Council shall be made;
(b) the quorum at meetings of the Corporation, the Standing Committee and the Medical Benefit Council and the minimum number of meetings of those bodies to be held in a year;
(c) the records to be kept of the transaction of business by the Corporation, the Standing Committee and the Medical Benefit Council;
(d) the powers and duties of the 5Director General and the Financial Commissioner and the conditions of their service;
(e) the powers and duties of the Medical Benefit Council;
6(ea) the types of expenses which may be termed as administrative expenses, the percentage of income of the corporation which may be spent for such expenses;
(eb) the rates of contributions and limits of wages below which employees are not liable to pay contribution;
(ec) the manner of calculation of the average daily wage;
(ed) the manner of certifying the certificate to recover amount by the Recovery Officer;
(ee) the amount of funeral expenses;
(ef) the qualifications, conditions, rates and period of sickness benefit, maternity benefit, disablement benefit and dependents benefit;
(eg) the conditions for grant of medical benefits for insured persons who cease to be in insurable employment on account of permanent disablement;
(eh) the conditions for grant of medical benefits for persons who have attained the age of superannuation;
07(ei) the manner in which and the time within which appeals may be filed to medical appeal tribunals or Employees’ Insurance Courts;
(f) the procedure to be adopted in the execution of contracts;
(g) the acquisition, holding and disposal of property by the Corporation;
(h) the raising and repayment of loans;
(i) the investment of the funds of the Corporation and of any provident or other benefit fund and their transfer or realisation;
(j) the basis on which the periodical valuation of the assets and liabilities of the Corporation shall be made;
(k) the bank or banks in which the funds of the Corporation may be deposited, the procedure to be followed in regard to the crediting of money accruing or payable to the Corporation and the manner in which any sums may be paid out of the Corporation funds and the officers by whom such payment may be authorised;
(l) the accounts to be maintained by the Corporation and the forms in which such accounts shall be kept and the times at which such accounts shall be audited;
(m) the publication of the accounts of the Corporation and the report of auditors, the action to be taken on the audit report, the powers of auditors to disallow and surcharge items of expenditure and the recovery of sums so disallowed or surcharged;
(n) the preparation of budget estimates and of supplementary estimates and the manner in which such estimates shall be sanctioned and published;
(o) the establishment and maintenance of provident or other benefit fund for officers and servants of the Corporation; 8
9(oa) the period of non-entitlement for cash benefit in case of conviction of an insured person;
(p) any matter which is required or allowed by this Act to be prescribed by the Central Government.
10(2A) The power to make rules conferred by this section shall include the power to give retrospective effect, from a date not earlier than the date of commencement of this Act, to the rules or any of them but no retrospective effect shall be given to any rule so as to prejudicially affect the interest of any person other than the Corporation to whom such rule may be applicable.
(3) Rules made under this sections shall be published in the Official Gazette and thereupon shall have effect as if enacted in this Act.
11(4) Every rule made under this section shall be laid, as soon as may be
after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter has effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
___________________
1. Ins. by Act 44 of 1966, sec. 38 (w.e.f. 28-1-1968).
2. Ins. by Act 29 of 1989, sec. 43 (w.e.f. 20-10-1989).
3. Clause (a) re-lettered as clause (ac) by Act 29 of 1989, sec. 43 (w.e.f. 20-10-1989).
4. Subs. by Act 29 of 1989, sec. 43, for “nominations” (w.e.f. 20-10-1989).
5. Subs. by Act 29 of 1989, sec. 43, for “Principal Officers” (w.e.f. 20-10-1989).
6. Ins. by Act 29 of 1989, sec. 43 (w.e.f. 20-10-1989).
7. Clause (ee) re-lettered as clause (ei) by Act 29 of 1989, sec. 43 (w.e.f. 20-10-1989).
8. The word “and” omitted by Act 29 of 1989, sec. 43(v) (w.e.f. 20-10-1989).
9. Ins. by Act 29 of 1989, sec. 43 (w.e.f. 20-10-1989).
10. Ins. by Act 45 of 1984, sec. 10 (w.e.f. 27-1-1985).
11. Ins. by Act 44 of 1966, sec. 38 (w.e.f. 28-1-1968).
12. Subs. by Act 38 of 1975, sec. 7, for certain words (w.e.f. 1-9-1975).
Section 96. Power of state governments to make rules.
(1) The State Government may, 1after consultation with the Corporation and, subject to the condition of previous publication, make rules not inconsistent with this Act in regard to all or any of the following matters, namely :
(a) the constitution of Employees’ Insurance Courts, the qualifications of persons who may be appointed Judges thereof, and the conditions of service of such Judges;
(b) the procedure to be followed in proceedings before such Courts and the execution of orders made by such Courts;
(c) the fee payable in respect of applications made to the Employees’ Insurance Court, the costs incidental to the proceedings in such court, the form in which applications should be made to it and the particulars to be specified in such applications;
(d) the establishment of hospitals, dispensaries and other institutions, the allotment of insured persons or their families to any such hospital, dispensary or other institution;
(e) the scale of medical benefit which shall be provided at any hospital, clinic, dispensary or institution, the keeping of medical records and the furnishing of statistical returns;
(f) the nature and extent of the staff, equipment and medicines that shall be provided at such hospitals, dispensaries and institutions;
(g) the conditions of service of the staff employed at such hospitals, dispensaries and institutions; and
(h) any other matter which is required or allowed by this Act to be prescribed by the State Government.
(2) Rules made under this section shall be published in the Official Gazette and thereupon shall have effect as if enacted in this Act.
(3) Every rule made under this section shall be laid as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or, where such Legislature consists of one House, before that House.
2[(3) Every rule made under this section shall be laid as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or, where such Legislature consists of one House, before that House.]
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1. Ins. by Act 44 of 1966, sec. 39 (w.e.f. 28-1-1968).
2. Ins. by Act 45 of 1984, sec. 11 (w.e.f. 27-1-1985).
Section 97. Power of corporation to make regulations.
(1) The Corporation may, 1[***] subject to the condition of previous publication, make regulations, not inconsistent with this Act and the rules made thereunder, for the administration of the affairs of the Corporation and for carrying into effect the provisions of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:—
(i) the time and place of meetings of the Corporation, the Standing Committee and the Medical Benefit Council and the procedure to be followed at such meetings;
2[(ia) the time within which and the manner in which a factory or establishment shall be registered;]
(ii) the matters which shall be referred by the Standing Committee to the Corporation for decision;
(iii) the manner in which any contribution payable under this Act shall be assessed and collected;
3[(iiia) the rate of interest higher than twelve per cent. on delayed payment of contributions;]
(iv) reckoning of wages for the purpose of fixing the contribution payable under this Act;
4[(iva) the register of employees to be maintained by the immediate employer;
(ivb) the entitlement of sickness benefit or disablement benefit for temporary disablement on any day on which person works or remains on leave or on holiday and in respect of which he receives wages or for any day on which he remains on strike;]
(v) the certification of sickness and eligibility for any cash benefit;
5[(vi) the method of determining whether an insured person is suffering from one or more of the diseases specified in the Third Schedule;]
(vii) the assessing of the money value of any benefit which is not a cash benefit;
(viii) the time within which 6[and the form and manner in which] any claim for a benefit may be made and the particulars to be specified in such claim;
(ix) the circumstances in which an employee in receipt of disablement benefit may be dismissed, discharged, reduced or otherwise punished;
(x) the manner in which and the place and time at which any benefit shall be paid;
(xi) the method of calculating the amount of cash benefit payable and the circumstances in which and the extent to which commutation of disablement and dependant’s benefits, may be allowed and the method of calculating the commutation value;
(xii) the notice of pregnancy or of confinement and notice and proof of sickness;
7[(xiia) specifying the authority competent to give certificate of eligibility for maternity benefit;
(xiib) the manner of nomination by an insured woman for payment of maternity benefit in case of her or her child’s death;
(xiic) the production of proof in support of claim for maternity benefit or additional maternity benefit;]
(xiii) the conditions under which any benefit may be suspended;
(xiv) the conditions to be observed by a person when in receipt of any benefit and the periodical medical examination of such persons;
8[***]
(xvi) the appointment of medical practitioners for the purposes of this Act, the duties of such practitioners and the form of medical certificates;
7[(xvia) the qualifications and experience which a person should possess for giving certificate of sickness;
(xvib) the constitution of medical boards and medical appeal tribunals;]
(xvii) the penalties for breach of regulations by fine (not exceeding two days’ wages for a first breach and not exceeding three days’ wages for any subsequent breach) which may be imposed on employees;
9[(xviia) the amount of damages to be recovered as penalty;
(xviib) the terms and conditions for reduction or waiver of damages in relation to a sick industrial company;]
(xviii) the circumstances in which and the conditions subject to which any regulation may be relaxed, the extent of such relaxation, and the authority by whom such relaxation may be granted;
10[(xix) the returns to be submitted and the registers or records to be maintained by the principal and immediate employers, the forms of such returns, registers or records, and the times at which such returns should be submitted and the particulars which such returns, registers and records should contain;]
(xx) the duties and powers of Inspectors and other officers and servants of the Corporation;
11[(xxi) the method of recruitment, pay and allowances, discipline, superannuation benefits and other conditions of service of the officers and servants of the Corporation other than the 12[Director General and Financial Commissioner];]
(xxii) the procedure to be followed in remitting contributions to the Corporation; and
(xxiii) any matter in respect of which regulations are required or permitted to be made by this Act.
13[(2A) The condition of previous publication shall not apply to any regulations of the nature specified in clause (xxi) of sub-section (2).]
(3) Regulations made by the Corporation shall be published in the Gazette of India and thereupon shall have effect as if enacted in this Act.
14[(4) Every regulation shall, as soon as may be, after it is made by the Corporation, be forwarded to the Central Government and that Government shall cause a copy of the same to be laid before each House of Parliament, while it is in session for a total period of thirty days, which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the regulation or both Houses agree that the regulation should not be made, the regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that regulation.]
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1. The words “with the prior approval of the Central Government” omitted by Act 29 of 1989, sec. 44 (w.e.f. 20-10-1989).
2. Ins. by Act 44 of 1966, sec. 40 (w.e.f. 28-1-1968).
3. Subs. by Act 29 of 1989, sec. 44, for clause (iiia) (w.e.f. 20-10-1989).
4. Ins. by Act 29 of 1989, sec. 44 (w.e.f. 20-10-1989).
5. Subs. by Act 44 of 1966, sec. 40, for clause (vi) (w.e.f. 28-1-1968).
6. Subs. by Act 44 of 1966, sec. 40, for “and the form in which” (w.e.f. 28-1-1968).
7. Ins. by Act 44 of 1966, sec. 40 (w.e.f. 28-1-1968).
8. Clause (xv) omitted by Act 29 of 1989, sec. 44 (w.e.f. 20-10-1989).
9. Ins. by Act 29 of 1989, sec. 44 (w.e.f. 20-10-1989).
10. Subs. by Act 53 of 1951, sec. 25, for clause (xix) (w.e.f. 6-10-1951).
11. Subs. by Act 53 of 1951, sec. 25, for clause (xxi) (w.e.f. 6-10-1951).
12. Subs. by Act 29 of 1989, sec. 44, for “Principal Officers” (w.e.f. 20-10-1989).
13. Ins. by Act 53 of 1951, sec. 25 (w.e.f. 6-10-1951).
14. Ins. by Act 45 of 1984, sec. 12 (w.e.f. 27-1-1985).
Section 98. Corporation may undertake duties in the indian states.
[Rep. by the Employees’ State Insurance (Amendment) Act, 1951 (53 of 1951), sec. 26.]
Section 99. Medical care for the families of insured persons.
1[99. Medical care for the families of insured persons.—At any time when its funds so permit, the Corporation may provide or contribute towards the cost of medical care for the families of insured persons.
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1. Subs. by Act 29 of 1989, sec. 45, for section 99 (w.e.f. 20-10-1989).
Section 99A. Power to remove difficulties.
1[99A. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions or give such directions, not inconsistent with the provisions of this Act, as appears to it to be necessary or expedient for removing the difficulty.
(2) Any order made under this section shall have effect notwithstanding anything inconsistent therewith in any rules or regulations made under this Act.
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1. Ins. by Act 44 of 1966, sec. 41 (w.e.f. 17-6-1967).
Section 100. Repeals and savings.
1[100. Repeals and savings.—If, immediately before the day on which this Act comes into force 2[in any part of the territories which, immediately before the 1st November, 1956, were comprised in a Part B State], there is in force in 3[that part] any law corresponding to this Act, that law shall, on such day, stand repealed:
Provided that the repeal shall not affect – (a) the previous operations of any such law; or
(b) any penalty, forfeiture or punishment incurred in respect of any offence committed against any such law, or
(c) any investigation or remedy in respect of any such penalty, forfeiture or punishment; and any such investigation, legal proceeding or remedy, may be instituted continued or enforced and any such penalty, forfeiture or punishment may be imposed, as if this Act had not been passed :
Provided further that subject to the preceding proviso anything done or any action taken under any such law shall be deemed to have been done or taken under the corresponding provision of this Act and shall continue in force accordingly unless and until superseded by anything done or any action taken under this Act
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1. Ins. by Act 53 of 1951, sec. 27 (w.e.f. 6-10-1951).
2. Subs. by the A.O. (No. 3) 1956, for “in a Part B State”.
3. Subs. by the A.O. (No. 3) 1956, for “that State”.
The first schedule.
OMITTED BY THE EMPLOYEES’ STATE INSURANCE (AMENDMENT) ACT, 1989, W.E.F. 1-2-1991.
The Second Schedule.
| Serial No. |
Description of injury |
Percentage of loss of earning capacity |
PART I
LIST OF INJURIES DEEMED TO RESULT IN PERMANENT TOTAL DISABLEMENT |
| 1 |
Loss of both hands or amputation at higher sites |
100 |
| 2 |
Loss of a hand and a foot |
100 |
| 3 |
Double amputation through leg or thigh, or amputation through leg or thigh on one side and loss of other foot. |
100 |
| 4 |
Loss of sight to such an extent as to render the claimant unable to perform any work for which eye sight is essential |
100 |
| 5 |
Very severe facial disfigurement |
100 |
| 6 |
Absolute deafness |
100 |
PART II
LIST OF INJURIES DEEMED TO RESULT IN PERMANENT PARTIAL DISABLEMENT
Amputation – upper limbs (either arm) |
| 7 |
Amputation through shoulder joint |
90 |
| 8 |
Amputation below shoulder with stump less than 20.32 c.m. from tip of acrimony |
80 |
| 9 |
Amputation from 20.32 c.m. from tip of acrimony to less than 11.43 c.m. below tip of olecranon |
70 |
| 10 |
Loss of a hand or of the thumb and four fingers of one hand or amputation from 11.43 c.m. below tip of olecranon |
60 |
| 11 |
Loss of thumb |
30 |
| 12 |
Loss of thumb and its metacarpal bone |
40 |
| 13 |
Loss of four fingers of one hand |
50 |
| 14 |
Loss of three fingers of one hand |
30 |
| 15 |
Loss of two fingers of one hand |
20 |
| 16 |
Loss of terminal phalanx of thumb |
20 |
| 16A |
Guillotine amputation of the tip of the thumb without loss of bone Amputation-lower limbs |
10 |
| Amputation-lower limbs |
| 17 |
Amputation of both feet resulting in end-bearing stumps |
90 |
| 18 |
Amputation through both feet proximal to the metatarso-phalangeal joint |
80 |
| 19 |
Loss of all toes of both feet through the metatarso-phalangeal joint |
40 |
| 20 |
Loss of all toes of both feet proximal to the proximal inter-phalangeal joint |
30 |
| 21 |
Loss of all toes of both feet distal to the proximal inter-phalangeal joint |
20 |
| 22 |
Amputation at hip |
90 |
| 23 |
Amputation below hip with stump not exceeding 12.70 c.m. in length measured from tip of great trenchanter |
80 |
| 24 |
Amputation below hip with stump exceeding 12.70 c.m. in length measured from tip of great trenchanter but not beyond middle thigh |
70 |
| 25 |
Amputation below middle thigh to 8.89 c.m. below knee |
60 |
| 26 |
Amputation below knee with stump exceeding 8.89 c.m. but not exceeding 12.70 c.m. |
50 |
| 27 |
Amputation below knee with stump exceeding 12.70 c.m. |
50 |
| 28 |
Amputation of one foot resulting in end-bearing |
50 |
| 29 |
Amputation through one foot proximal to the metatarso-phalangeal joint |
50 |
| 30 |
Loss of all toes of one foot through the metatarso-phalangeal joint Other injuries |
20 |
| 31 |
Loss of one eye, without complications, the other being normal |
40 |
| 32 |
Loss of vision of one eye without complications or disfigurement of eye-ball, the other being normal |
30 |
| 32A |
Partial loss of vision of one eye Loss of – A – Fingers of right or left hand index finger |
10 |
| 33 |
Whole |
14 |
| 34 |
Two phalanges |
11 |
| 35 |
One phalanx |
9 |
| 36 |
Guillotine amputation of tip without loss of bone Middle finger |
5 |
| 37 |
Whole |
12 |
| 38 |
Two phalanges |
9 |
| 39 |
One phalanx |
7 |
| 40 |
Guillotine amputation of tip without loss of bone Ring or little finger |
4 |
| 41 |
Whole |
7 |
| 42 |
Two phalanges |
6 |
| 43 |
One phalanx |
5 |
| 44 |
Guillotine amputation of tip without loss of bone
B. – Toes of right or left foot Great toe |
2 |
| 45 |
Through metatarso-phalangeal joint |
14 |
| 46 |
Part, with some loss of bone Any other toe |
3 |
| 47 |
Through metatarso-phalangeal joint |
3 |
| 48 |
Part, with some loss of bone Two toes of one foot, excluding great toe |
1 |
| 49 |
Through metatarso-phalangeal joint |
5 |
| 50 |
Part, with some loss of bone Three toes of one foot, excluding great toe |
2 |
| 51 |
Through metatarso-phalangeal joint |
6 |
| 52 |
Part, with some loss of bone Four toes of one foot, excluding great toe |
3 |
| 53 |
Through metatarso-phalangeal joint |
9 |
| 54 |
Part, with some loss of bone |
3 |
NOTE. – Complete and permanent loss of the use of any limb or member referred to in this Schedule shall be deemed to be the equivalent of the loss of that limb or member.
The Third Schedule.
1[THE THIRD SCHEDULE
(See section 52A)
LIST OF OCCUPATIONAL DISEASES
| No.1 |
Occupational disease |
Employment |
| PART A |
|
| 1 |
Infectious and parasitic diseases contracted in an occupation where there is a particular risk of contamination |
(a) All work involving exposure to health or laboratory work;(b) All work involving exposure to veterinary work;
(c) Work relating to handling animals, animal carcasses, part of such carcasses, or merchandise which may have been contaminated by animals or animal carcasses;
(d) Other work carrying a
particular risk of contamination. |
|
Diseases caused by work in compressed air |
All work involving exposure to the risk concerned. |
|
Diseases caused by lead or its toxic compounds |
All work involving exposure to the risk concerned. |
|
Poisoning by nitrous fumes |
All work involving exposure to the risk concerned. |
|
Poisoning by organphosphorus compounds. |
All work involving exposure to the risk concerned. |
PART B
|
Diseases caused by phosphorus or its toxic |
All work involving exposure to the compounds concerned. |
|
Diseases caused by mercury or its toxic compounds |
All work involving exposure to the risk concerned. |
|
Diseases caused by benzene or its toxic homologues |
All work involving exposure to the risk concerned. |
|
Diseases caused by nitro and amido toxic derivatives of benzene or its homologues. |
All work involving exposure to the risk concerned. |
|
Diseases caused by chromium or its toxic compounds |
All work involving exposure to the risk concerned. |
|
Diseases caused by arsenic or its toxic compounds |
All work involving exposure to the risk concerned. |
|
Diseases caused by radioactive substances and ionising radiations |
All work involving exposure to the action of radioactive substances or
ionising radiations. |
|
Primary epithelomatous cancer of the skin caused by tar, pitch, bitumen, mineral oil, anthracene, or the compounds, products of residues of these substances |
All work involving exposure to the risk concerned. |
|
Diseases caused by the toxic halogen derivatives of hydrocarbons (of the aliphatic and aromatic series) |
All work involving exposure to the risk concerned. |
|
Diseases caused by carbon disulphide |
All work involving exposure to the risk concerned. |
|
Occupational cataract due to infra-red radiations |
All work involving exposure to the risk concerned. |
|
Diseases caused by manganese or its toxic compounds |
All work involving exposure to the risk concerned. |
|
Skin diseases caused by physical, chemical or biological agents not included in other items |
All work involving exposure to the risk concerned. |
|
Hearing impairment caused by noise |
All work involving exposure to the risk concerned. |
|
Poisoning by dinitrophenol or a homologue or by substituted dinitrophenol or by the salts of such substances |
All work involving exposure to the action of radioactive substances or
ionising radiations. |
|
Diseases caused by beryllium or its toxic compounds |
All work involving exposure to the risk concerned. |
|
Diseases caused bycadmium or its toxic compounds |
All work involving exposure to the risk concerned. |
|
Occupational asthama caused by recognised sensitising agents inherent to the work process |
All work involving exposure to the risk concerned. |
|
Diseases caused by flourine or its toxic compounds |
All work involving exposure to the risk concerned. |
|
Diseases caused by nitro-glycerine or other nitroacid esters |
All work involving exposure to the risk concerned. |
|
Diseases caused by alcohols and ketones. |
All work involving exposure to the risk concerned. |
|
Diseases caused by asphyxiants: carbon monoxide, and its toxic derivatives,hydrogen sulfide |
All work involving exposure to the action of radioactive substances or ionising radiations. |
|
Lung cancer and mesotheliomas caused by asbestos. |
All work involving exposure to the risk concerned. |
|
Primary neoplasm of the epithelial lining of the the urinary bladder or the kidney or the ureter |
All work involving exposure to the risk concerned. |
PART C
|
Pneumoconioses caused by sclerogenic mineral dust (silicosis, anthraoosilicosis asbestosis) and silico-tuberculosis provided that silicosis is an essential factor in causing the resultant incapacity or death |
All work involving exposure to the risk concerned. |
|
Bagassosis |
All work involving exposure to the risk concerned. |
|
Bronchopulmonary diseases caused by cotton, flax hemp and sisal dust (Byssinosis) |
All work involving exposure to the risk concerned. |
|
Extrinsic allergic alveelitis caused by the inhalation of organic dusts |
All work involving exposure to the risk concerned. |
|
Bronchopulmonary diseases caused by hard metals |
All work involving exposure to the risk concerned. |
