Levy and collection of cess

Section 3 of the Uttarakhand Cess Act, 2015 deals with levy and collection of cess. There shall be levied a cess under this Act; The Act was enacted on 17 Nov 2015.

(1) There shall be levied a cess under this Act;

(a) for the purpose of development of Road Infrastructure, on the sale or purchase of such gods, within the State, as specified in Schedule I of this Act, with effect from such sate and at such point and at such rate, as the State Government may, by notification in the official Gazette, specify provided that such rate shall not exceed ten percent of the sale or purchase price of such goods, subject to the conditions, if any, as specified in the Schedule –I.

(b) for the purpose of State Disease Fund (Rajya Vyadhi Nidhi) on the sale or purchase of such goods, within the State, as specified in Schedule II of this Act, with effect from such date and at such point and at such rate, as the State Government may, by notification in the Official Gazette, specify:

Provided that such rate shall not exceed ten percent of the sale or purchase price of such goods, subject to the conditions, if any, as specified in the Schedule II.

(c) for the purpose of protection of environment, on the goods carried by road, as specified in Schedule III of this Act, with effect from such date and at such point and at such rate, as the State Government may, by notification in the official Gazette, specify, provided that such rate shall not exceed Rs. fifty per quintal of such goods, or ten percent of the sale or purchase price of the goods, as the case may be subject to the conditions, if any, as specified in the Schedule .

(2) Every dealer or person, who sells the goods specified in Schedule I or Schedule II and who is registered or is liable to be registered under the provisions of the Uttrakhand VAT Act, 2005, shall be liable to pay Cess in a manner and within a time, as may be prescribed.

(3) The owner or person duly authorised by such owner or the driver or person in-charge of the vehicle or of such goods, as specified in Schedule III, in movement, as the case may be, who carries or intends to carry such goods by road shall, before movement of such goods, pay the said Cess or cause such Cess to be realized by such person and in such a manner as may be prescribed:

(a) Realization of tax through seller or supplier: Notwithstanding anything contained in any other provision of this Act, any person who intends to carry the goods of Schedule III to a place outside the State from any seller or supplier within the State, shall at the time of taking delivery of the goods from the supplier, pay to such supplier the cess payable on carriage of such goods to outside the State and the seller or supplier shall receive the cess so paid. The seller or supplier shall also be bound to give delivery of such goods to the transporter only when the amount of such cess has been paid by the transporter only when the amount of such cess has been paid by the transporter to the seller or supplier. The seller or supplier shall deposit the Cess so received, in such manner and within such time as may be prescribed.

(b) where any seller or supplier fails to recover the Cess or fails to deposit it under this section, he shall be liable to pay the cess along with the interest and penalty to the extent of two times of the cess, which shall be recoverable as arrears of land revenue.

(4) The proceeds of the cess collected under different schedules of this Act, shall be applied to specially created funds as follwos;

(i) Cess collected under Schedule I shall be applied to the fund created for Development of Road Infrastructure and Road Safety Measures.

(ii) Cess collected under Schedule II shall be applied to the State Disease Fund (Rajya Vyadhi Nidhi).

(iii) Cess collected under Schedule III shall be applied to the Specially Created Fund for the protection of environment (Paryavaran Sanrakshan Kosh).

Section 3, The Uttarakhand Cess Act, 2015 (Act 23 of 2015).