RST Rules 23Chapter VII · Concessions and Declaration forms

Section 23 · Furnishing of declaration forms for claiming concessions

(1)

(a)

A dealer, who claims exemption from the payment of tax or payment of tax at a concessional rate or non-liability to pay tax, on the sales made to a registered dealer of goods-

(i)for resale within the State; or

(ii)for sale in the course of inter-state trade or commerce; or

(iii)for being used as raw material under sub-section (1) of section 10; or

(iv)for being used as processing articles under sub-section (3) of section 10; or

(v)for being used or disposed off in accordance with any condition specified in a notification;

shall obtain a declaration form from the purchasing dealer in form ST 17 duly filled in and signed, and shall furnish all such declaration forms to his assessing authority.

(b)

A dealer, who claims exemption from payment of tax on sale of goods to another dealer on the ground that the sale of such goods is a sale in the course of export of those goods out of the territory of India within meaning of sub-section (3) of section 5 of the Central Sales Tax Act, 1956 (Act No. 74 of 1956), shall furnish to his assessing authority a declaration in form ST 17 B, duly filled in and signed by the exporter.

(2)

A dealer may furnish the declaration forms referred to sub- rule (1) before his assessing authority-

(a)

either with the return or returns to be filed under rule 19; or

(b)

at the time of assessment; or

(c)

[ within such further time as the assessing authority may allow but not exceeding four months from the date of assessment or upto the date of expiry of period of limitation for such assessment, whichever is later] [Substituted by Notification dated 14-6-2001, Published in Rajasthan Gazette Extraordinary part 4(ga), dated 16-6-2001, page 142, w.e.f. 16-6-2001.]:

[Provided that where the assessment have been completed by 31.3.2002 and extended time, if any, as mentioned in clause (c) has also expired, the assessee shall furnish the declaration form upto 31.3.2003] [Substituted by Notification dated 20-1-2003, Published in Rajasthan Gazette Extraordinary part 4(ga), dated 22-1-2003, page 525-3, w.e.f. 22-1-2003.][Provided also that where the assessments have been completed by 31.03.2004 and extended time, if any, as mentioned in clause (c) has also expired, the assessee shall furnish the declaration forms up to 31-12.2004.] [Inserted by Notification dated 12-7-2004, Published in Rajasthan Gazette Extraordinary part 4(ga), dated 12-7-2004, page 180, w.e.f. 12-7-2004.]

(3)

[ A declaration form referred to in sub-rule (1), may cover all transactions of sales made to a registered dealer in one assessment year.] [Substituted by Notification dated 12-3-1997, Published in Rajasthan Gazette Extraordinary part 4(ga), dated 12-3-1997, page 430, w.e.f. 12-3-1997.]

(4)

The articles referred to in sub-section (3) of section 10 which a registered dealer may purchase, shall be the articles intended for use by him as processing articles (other than raw materials) such as plant, machinery, equipment, tools, stores, spare parts and accessories in the manufacture or processing of goods for sale or in the mining or in the generation or distribution of electricity.

(5)

Blank declaration forms ST 17 and ST 17B shall be obtained from the Assistant Commissioner or Commercial Taxes Officer having jurisdiction or from the assessing authority or any other officer authorized by the commissioner, as the case may be, on payment in Government treasury, authorized bank or the office of the issuing authority, a sum of Rupees fifty for each book containing twenty five declaration forms.Explanation. - The Assistant Commissioner, the Commercial Taxes Officer or the assessing authority or any other Officer authorized by the Commissioner, as the case may be, who issues the declaration forms shall be known as the issuing authority.

(6)

(a)

For obtaining declaration forms referred to in sub-rule (1), the registered dealer shall apply in form ST 16 to the Issuing Authority stating his requirement of such forms and shall furnish such other particulars, statements, information and documents as the said authority may require for his satisfaction about the bona fide use of such forms issued to the applicant on previous occasions and the bona fide purpose to the applicant's present requirement of such forms.

(b)

If the applicant is found to have failed to comply with an order demanding initial or additional security under section 23, the issuing authority may reject the application.

(c)

The issuing authority may, for reasons to be recorded in writing, reject the application of the applicant, on being satisfied that he has not made proper use of such forms previously issued to him or that he does not require the forms applied for.

(d)

The issuing authority shall with-hold the issue of declaration forms to the applicant if he has defaulted-

(i)in making payment of any outstanding demand; or

(ii)in paying tax under the provisions of section 25; or

(iii)in furnishing any return or returns in accordance with the provisions of section 26 and rule 19 of these rules;

till such times as the defaults referred to in sub-clause (i), (ii) and (iii) are removed or made good; however, where the said authority in a particular case is satisfied that the interest of the State revenue so requires, it may, instead of with holding the declaration forms, issue such forms in such number and subject to such conditions and restrictions as may be considered reasonable.

(e)

Where the issuing authority does not proceed under clauses (b). (c) and (d), it shall issue the requisite number of declaration forms to the applicant or such lesser number of declaration forms which in its opinion, could satisfy the reasonable requirements of the applicant.

(7)

[ All declaration forms shall be authenticated by the issuing authority with the date of issue and the period of its validity, while issuing the said forms to the dealer and such forms shall remain valid for three years from the date of issue or for such further extended period of one year, as may be permitted by the issuing authority.] [Substituted by Notification dated 26-3-1999, Published in Rajasthan Gazette Extraordinary part 4(ga), dated 26-3-1999, page 515-121, w.e.f. 26-3-1999.]

(8)

No registered dealer to whom declaration forms are issued by the issuing authority shall either directly or otherwise, transfer the same to any other person.

(9)

Every registered dealer to whom declaration forms referred to in sub-rule (1) are issued by the issuing authority, shall maintain in part A of the register in form ST 16 A, a true and complete account of such forms received and shall also maintain in part B thereof a true and complete account of his purchases made on the strength of such forms.

(10)

Every registered dealer shall keep the declaration Forms received by him in safe custody and shall be personally responsible for the loss of Government revenue, if any, directly or in directly from any theft, loss or destruction thereof. If any such form is stolen, lost or destroyed, the dealer shall immediately report the fact to his assessing authority and shall make appropriate entries in the remarks column of part A of the register in form ST 16A and shall take such further steps to issue public notice of theft, loss or destruction, as the assessing authority may direct.

(11)

The dealer who reports theft, loss or destruction from his custody of a blank or duly completed form, shall be required to furnish security by way of an indemnity bond against any possible misuse of the form, and where a form duly completed and signed is reported to have been stolen, lost or destroyed while in transit between the purchasing dealer and the selling dealer or between the selling dealer and the assessing authority, the purchasing dealer or the selling dealer, as the case may be, shall required to furnish security as aforesaid.

(12)

In the case of a purchasing dealer, security under sub-rule (11) be of such amount having regard to the circumstances of the case, as may be required by his assessing authority and shall be furnished to such authority with such period as may be directed.

(13)

Where the security under sub-rule (11) is to be furnished by the selling dealer, it shall be of such amount having regard to the circumstances of the case, as may be required by the assessing authority to whom such dealer has to submit the periodical returns of turnover and shall be furnished to such authority within such period as may be specified.

(14)

Security required under sub-rule (11) shall be furnished in form ST 32, in respect of all forms, declared as stolen, lost or destroyed.

(15)

Before furnishing of a declaration form to the selling dealer, the purchasing dealer, or any person authorised by him in this behalf shall fill in all the required particulars in the form and shall also affix his signature in the space provided in the form for the purpose. Thereafter, the counterfoil of the form shall be retained by the purchasing dealer and the other two portions marked "original" and "duplicate" shall be handed over by him to the selling dealer.

(16)

No purchasing dealer shall furnish and no selling dealer shall accept a declaration form, which is-

(i)

forged or fake, or not obtained under sub-rule (6): or

(ii)

time-barred for being used under sub-rule (7); or

(iii)

reported stolen, lost or destroyed under sub-rule (10): or

(iv)

declared obsolete and invalid by the State Government under sub-rule (20),

(17)

Any unused declaration form or forms remaining in stock with a registered dealer on the permanent discontinuance or closure of his business, shall be surrendered by him to his assessing authority within a period of 30 days from the date of such discontinuance or closure.

(18)

A dealer, who claims to have made such sales as are envisaged in sub-rule (1) to another dealer, shall in respect of such claims produce before the assessing authority the portion marked "original" of the declaration form received by him from the purchasing dealer. In case of loss of the "original" foil of the declaration form, the assessing authority may permit the selling dealer to produce the "duplicate" foil thereof.

(19)

Where both the foils "original" and "duplicate" of a declaration form are lost, the selling dealer may obtain a duplicate declaration form the purchasing dealer and the purchasing dealer shall record the following certificate thereon in red ink duly signed by him :-"I hereby declare that this is the duplicate of declaration form No.............. signed on........... and issued to M/S........... on (date).............(Signature of the issuing/purchasing dealer)"

(20)

The State Government may, by notification in the Official Gazette, declare that forms of a particular series, design or colour shall be deemed obsolete and invalid for use with effect from such date as may be specified in the notification.

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