Section 44 in The M.P. Vanijyik Kar Adhiniyam, 1994
44. Saving for dealers dealing in tax free and tax paid goods.
(1)If before the commencement of any year a registered dealer files with the Commissioner, a declaration in the prescribed form, and manner in respect of such year to the effect that-(i)he will be dealing exclusively during that year in goods declared tax free under Section 15 or exempted in whole under Section 17, or(ii)his turnover in a year does not exceed rupees forty lacs and that he will deal exclusively in tax paid goods or deal, along with such goods, in goods declared tax free under Section 15 or exempted in whole under Section 17 during that year,the provisions of Sections 26, 27 and 43 shall not apply to such dealer so long as he deals exclusively in tax paid goods or in tax paid goods and goods declared tax free under Section 15 or exempted in whole under Section 17 in that year.(2)Every registered dealer of the category specified in clause (ii) of sub-section (1) shall, before filing a declaration under the said sub-section pay such fee as may be prescribed.(3)If at any time during the year in respect of which a dealer has filed a declaration under sub-section (1), he desires to deal in any taxable goods, he shall send previous intimation thereof to the Commissioner and thereupon his declaration shall cease to be in force.(4)Where the Commissioner, in consequences of information which has come into his possession, is satisfied that any dealer has at any time during-the year, in respect of which he has filed a declaration under sub-section (1), dealt in any taxable goods without complying with the requirement of sub-section (3), he may, after giving the dealer a reasonable opportunity of being heard and after making such enquiry as he considers necessary, make an order annulling the declaration and also impose upon him a penalty equal to three times the amount of tax payable on the taxable goods sold by him during that year.(5)The Commissioner shall direct every year that detailed inspection upto five per cent of the dealers falling in clause (ii) of sub-section (1), in each circle to be selected on sample basis in the manner decided by the Commissioner shall be carried out to ensure that the dealers concerned have not acted in contravention of the declaration filed by them.
