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[Cites 0, Cited by 0] [Entire Act]

State of Madhya Pradesh - Section

Section 2 in The M.P. Vanijyik Kar Adhiniyam, 1994

2. Definitions.

- In this Act, unless there is anything repugnant in the subject or context-
(a)Appellate Deputy Commissioner means an Appellate Deputy Commissioner of Commercial Tax appointed under Section 3 and includes an Additional Appellate Deputy Commissioner of Commercial Tax;
(b)Assistant Commissioner means an Assistant Commissioner of Commercial Tax appointed under Section 3;
(c)Business includes-
(a)any trade, commerce, 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 irrespective of the volume, frequency, continuity or regularity of such trade, commerce, manufacture, adventure or concern; and
(b)any transaction of sale or purchase of goods in connection with or incidental or ancillary to the trade, commerce, manufacture, adventure or concern referred to in sub-clause (a), that is to say-
(i)goods of the description referred to in sub-section (3) of Section 8 of the Central Sales Tax Act, 1956 (No. 74 of 1956), whether or not they are specified in the registration certificate, if any, of the dealer under the said Act and whether or not they are in their original form or in the form of second hand goods, unserviceable goods, obsolete or discarded goods, mere scrap or waste material; and
(ii)goods which are obtained as waste products or by-products in the course of manufacture or processing of other goods or mining or generation of or distribution of electrical energy or any other form of power;
(d)Commerce means sale or purchase of goods within the meaning of clause (29-A) of Article 366 of the Constitution of India and the expression "Commercial" shall be construed accordingly;
(dd)[ Commercial Tax Office means an office of any officer appointed under Section 3 of this Act;] [Inserted by M.P. Commercial Tax (Second Amendment) Act, 2002 w.e.f. 13-8-2002.]
(e)Commercial Tax Officer means a Commercial Tax Officer appointed under Section 3 and includes an Additional Commercial Tax Officer.
(f)Commissioner means the Commissioner of Commercial Tax appointed under Section 3;
(g)Cooked food includes sweets and sweetmeats, mishri, batasha, chironji, shrikhand, rabadi, doodhpak, prepared tea and prepared coffee but excludes ice-cream, kulfi, ice-candy, nonalcoholic drink containing ice-cream, cakes, pastries, biscuits, chocolates, toffees, lozenges, peppermint drops and mawa;
(h)Dealer means any person who carries on the business of buying, selling, supplying or distributing goods, directly or otherwise, whether for cash, or for deferred payment or for commission, remuneration or other valuable consideration and includes-
(i)a local authority, a company, an undivided Hindu family or any society (including a co-operative society), club, firm or association which carries on such business;
(ii)a society (including a co-operative society), club, firm or association which buys goods from, or sells, supplies or distributes goods to, its members;
(iii)a commission agent, broker, a del-credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of buying, selling, supplying or distributing goods on behalf of the principal;
(iv)[ any person who transfers the right to use any goods for any purpose, (whether or not for a specified period) in the course of business to any other person;] [Inserted by MP Commercial Tax (Amendment) Act, 1995 w.e.f. 1-4-1995.]
Explanation. - (I) Every person who acts as an agent of a nonresident dealer, that is as an agent on behalf of a dealer residing outside the State and buys, sells, supplies or distributes goods in the State or acts on behalf of such dealer as-
(i)a mercantile agent as defined in the Indian Sale of Goods Act, 1930 (III of 1930); or
(ii)an agent for handling goods or documents of title relating to goods; or
(iii)an agent for the collection or the payment of the sale price of goods or as a guarantor for such collection or payment, and every local branch of a firm or company situated outside the State.
shall be deemed to be a dealer for the purpose of this Act.
(II)The Central or a State Government or any of their departments or offices which, whether or not in the course of business, buy, sell, supply or distribute goods, directly or otherwise, for cash or for deferred payment, or for commission, remuneration or for other valuable consideration, shall be deemed to be a dealer for the purpose of this Act.
(i)The expression declared goods shall have the meaning assigned to it in the Central Sales Tax Act, 1956 (No. 74 of 1956);
(j)Deputy Commissioner means a Deputy Commissioner of Commercial Tax appointed under Section 3 and includes an Additional Deputy Commissioner of Commercial Tax;
(k)Goods means all kinds of movable property other than actionable claims, newspapers, stocks, shares securities or Government stamps and includes all materials, articles and commodities, whether or not to be used in the construction, fitting out, improvement or repair of movable or immovable property, and also includes all growing crops, grass, trees, plants and things attached to, or forming part of the land which are agreed to be severed before the sale or under the contract of sale;
(l)Import means the bringing or causing to be brought of goods into the State of Madhya Pradesh from any place outside the State;
(m)Incidental goods means goods, other than raw material and packing material, referred to in clause (b) of sub-section (3) of Section 8 of the Central Sales Tax Act, 1956 (No. 74 of 1956), for use by the registered dealer in the manufacture or processing of goods or in mining of or in the generation or distribution of electrical energy or any other form of power;
(n)Licence means a licence granted under the Act;
(o)Manufacture includes any process or manner of producing, collecting, extracting, preparing or making any goods, but does not include such manufacture or manufacturing process as may be notified.
(p)Place of business means any place where a dealer purchases or sells any goods or stores goods or keeps accounts of his purchases or sales or both and also includes-
(i)the place of business of an agent where a dealer carries on business through an agent;
(ii)any place or building whether any business is carried on therein or not, in which the person carrying on the business, states that any of his books of accounts, documents, stocks or other things, relating to his business are kept;
(q)Purchase price shall comprise of-
(i)the amount payable by a dealer as valuable consideration for the purchase of goods 'simpliciter':
Provided that where goods are purchased together with the packing material or container, then notwithstanding anything contained in this Act, the purchase price of such goods shall be inclusive of the price or cost or value of such packing material or container, whether such price or cost or value is paid separately or not as if such packing material or container were the goods purchased;
(ii)transport costs, if any;
(iii)trade commission, if any, by whatever name called;
(iv)forwarding and handling charges, if any;
(v)insurance charges, if any;
(vi)local taxes, if any;
(vii)excise duty, if any, leviable under the Central Excise and Salt Act, 1944 (No. 1 of 1944);
(viii)cost of packing, if any; and
(ix)any other charges or costs other than those specified above, if incurred or paid in respect of goods so purchased;
Explanation. - For the purpose of this clause "transport cost includes such expenses as are incurred by the dealer on transportation of goods after taking delivery from the seller;
(r)Raw material means an article used as an ingredient in any manufactured goods, or an article consumed in the process of manufacture and includes fuel and lubricants required for the process of manufacture;
(s)Registered dealer means a dealer registered under this Act;
(t)Sale with all its grammatical variations and cognate expressions means any transfer of property in goods for cash or deferred payment or for other valuable consideration and includes-
(i)a transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration;
(ii)a transfer of property in goods whether as goods or in some other form, involved in the execution of a works contract;
(iii)a delivery of goods on hire purchase or any system of payment by instalments;
(iv)a supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration;
(v)a supply, by way of or as part of any service or in any other manner whatsoever, of goods being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service is for cash, deferred payment or other valuable consideration;
and such transfer, delivery or supply of any goods shall be deemed to be a sale of those goods by the person making the transfer, delivery or supply and purchase of these goods by the person to whom such transfer, delivery or supply is made, [but does not include a mortgage, hypothecation, charge or pledge] [Substituted by MP Commercial Tax (Second Amendment) Act, 1996 w.e.f. 1-4-1995.];
(vi)[ a transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;] [Inserted by MP Commercial Tax (Amendment) Act, 1995 w.e.f. 1-4-1995.]
Explanation. - (a) Notwithstanding anything contained in the Sale of Goods Act, 1930 (III of 1930), where a sale or purchase of goods takes place in pursuance of a contract of sale, such sale or purchase shall be deemed, for the purposes of this Act to have taken place in the State wherever the contract of sale or purchase might have been made, if the goods are within the State-
(i)in the case of specific or ascertained goods, at the time the contract of sale or purchase is made; and
(ii)in the case of unascertained or future goods, at the time of their appropriation to the contract of sale or purchase by the seller or by the purchaser, whether the assent of the other party is prior or subsequent to such appropriation and
(b)Where there is a single contract of sale or purchase of goods situated at more places than one, the provisions of clause (a) shall apply as if there were separate contracts in respect of the goods at each of such places.
(u)sale price means the amount payable to a dealer as valuable consideration for the sale of any goods less any sum allowed as cash discount according to ordinary trade practice but inclusive of any sum charged for anything done by the dealer in respect of the goods at the time of or before delivery thereof other than the cost of freight or delivery or the cost of installation when such cost is separately charged;
Explanation. - Where goods are sold on hire purchase or any system of payment by instalments, the sale price of such goods shall be exclusive of insurance charges, interest and hire charges and such other charges as may be prescribed;
(v)Tax means the tax payable under this Act;
(w)Taxable turnover in relation to any period means that part of a dealer's turnover for such period which remains after deducting therefrom-
(i)the sale price of goods declared tax free under Section 15 or exempted in whole under Section 17;
(ii)the sale price of goods mentioned in [Part II to VI] [Substituted by MP Commercial Act (Amendment) Act, 2000 for the words 'Part II to VII' w.e.f. 15-3-2000.] of Schedule II which are in the nature of tax paid goods in he hands of such dealer;
(iii)the sale price of unginned cotton as specified in Part I of Schedule II and such other goods in the said Part as the State Government may from time to time, by notification, specify, sold to a registered dealer who has declared in the prescribed form that the goods are for resale or for use by him in the manufacture of goods for sale by him;
(iv)the sale price of goods specified in Part I of Schedule II other than those referred to in sub-clause (iii) sold to a registered dealer who has declared in the prescribed form that the goods are for resale by him;
(v)the amount arrived at by applying the following formula :
rate of tax X aggregate of sale prices100 + rate of tax
Provided that no deductions on the basis of the above formula shall be made if the amount by way of tax collected by a registered dealer, in accordance with the provisions of this Act, has been otherwise deducted from the aggregate of sale prices.Explanation. - Where the turnover of a dealer is taxable at different rates, the aforesaid formula shall be applied separately in respect of such part of the turnover liable to a different rate of tax under sub-section (1) of Section 9;
(vi)such other deductions as may be prescribed.
(x)Tax paid goods in relation to a dealer means any goods specified in [Part II to VI] [Substituted by MP Commercial Tax (Amendment) Act (No. 8 of 2000) for the words 'Part II to VII' w.e.f. 15-3-2000.] of Schedule II which have been purchased by such dealer from a registered dealer inside the State of Madhya Pradesh within the meaning of Section 4 of the Central Sales Tax Act, 1956 (No. 74 of 1956) except-
(i)the goods sale whereof by such registered dealer is exempted in whole from payment of tax subject to the condition that such exemption is available only to such registered dealer; and
(ii)the goods manufactured by a registered dealer in his new industrial unit in respect of which such dealer is availing of the facility of exemption from payment of tax in whole under any notification issued under the Act repealed by this Act or under this Act in pursuance of any scheme of the Slate Government formulated and enforced before or after the commencement of this Act for grant of incentives for the establishment of new industrial units in the State;
(y)[Appellate Board] [Substituted by M.P, Vanijyik Kar (Sanshodhan)Act, 2003 (32 of 2003) for the word 'Tribunal' w.e.f. 30-9-2003.] means [Appellate Board] [Substituted by M.P, Vanijyik Kar (Sanshodhan)Act, 2003 (32 of 2003) for the word 'Tribunal' w.e.f. 30-9-2003.] as constituted under Section 4;
(z)Turnover used in relation to any period means the aggregate of the amount of sale prices received and receivable by a dealer in respect of any sale or supply or distribution of goods made during that period, whether or not the whole or any portion of such turnover is liable to tax but after deducting the amount, if any, refunded by the dealer to a purchaser, in respect of any goods purchased and returned by the purchaser within the prescribed period :
Provided that-
(i)in the case of sale by bonafide agriculturist defined in clause (e) of sub-section (1) of Section 2 of the Madhya Pradesh Land Revenue Code, 1959 (No. 20 of 1959), of ghee produced by himself; or
(ii)in case of sale by a person of agricultural or horticultural produce grown by himself or grown on any land in which he has an interest whether as owner, usufructuary mortgagee, tenant or otherwise, when such produce is sold in the form in which it was produced, without being subjected to any physical, chemical or other process for being made fit for consumption save mere dehusking, cleaning, grading or sorting,
the amount of consideration relating to such sales shall be excluded from his turnover;[Explanation. [Inserted by MP Commercial Tax (Amendment) Act 1995 w.e.f. 1-4-95.] - The amount realised or realisable under Section 9-A shall be included in the turnover.]
(zz)Year means the twelve months ending on the 31st day of March.