Defence Levy

(1) This Act shall apply to every person who-

(2) Every person referred to in subsection (1) shall, hereafter in this Act be referred to as a ” person to whom this Act applies”.

(1) Subject to the succeeding provisions of this Act, there shall be charged from a very person to whom this Act applies, for every quarter of the year commencing on January 1, 1992, (hereinafter in this Act referred to as a “relevant quarter”), a defence levy (hereinafter in this Act referred to as the ” levy ” equivalent to one -per centum of the turnover, within the meaning of section 5 of the Turnover Tax Act, of that person for that quarter.

(2) Notwithstanding the preceding provisions of this section, turnover of a person to whom this Act applies shall, for the purposes of this Act, be deemed not to include”

(a) an amount equivalent to one per centum of the turnover of that person for the first month of that quarter, on or before the fifteenth day of the second month of that quarter ;

(b) an amount equivalent to one per centum of the turnover of that person for the second month of that quarter, on or before the fifteenth day of the third month of that quarter ; and

(c) the amount of the levy payable by such person for that quarter reduced by the aggregate of the amounts paid by him in accordance with the provisions of paragraph (a) and of paragraph (b), on or before the fifteenth day of the month immediately succeeding the end of that quarter.

(1) Every bank shall-

(2) Every bank which collects any amount in accordance with the provisions of subsection (1), shall make an endorsement on the import invoice relating to the letter of credit with reference to which such amount was collected specifying the amount so collected.

(3) Any amount collected by any bank from any person to whom this Act applies, in accordance with the provisions of subsection (1), shall be deemed to have been paid to the Commissioner-General by such person on the date on which such bank collected such amount, and shall be set off against the levy payable by such person for the relevant quarter in which such, amount was deemed to have been paid by him.

(4) Notwithstanding anything in any other law, any amount collected by any bank under the preceding provisions of this section and held by such bank for remittance to the Commissioner-General shall be deemed not to be such property of such bank as is liable to execution or administration in the event of the bankruptcy, liquidation or dissolution of such bank or to assignment for the benefit of creditors and such amount shall remain apart from, and form no part of, the estate in bankruptcy, liquidation or assignment of such bank.

(5) Where any bank fails to collect, from any person to whom this Act applies, any amount required to be collected From such person under this section, or where any bank has collected such amount and has not remitted the amount so collected to the Commissioner-General on or before the fifteenth day of the month immediately succeeding the month in which such amount was collected, such bank shall be liable to the amount it was required to collect under the provisions of this section but has not collected, or as the case may be, for the amount or part thereof collected and not remitted to the Commissioner-General and such amount not collected or collected and not remitted, as the case may be, shall be deemed to be in default from the day following the day on which such amount was required to have been remitted to the Commissioner-General and such bank shall be deemed to be a defaulter, with effect from such date, and such amount may be recovered from such bank in the manner provided in this Act

(1) Where the levy payable by a person to whom this Act applies for any relevant quarter is not paid on or before the date specified in section 4, for the payment of that Levy, or part thereof, the amount of the levy or part thereof shall be deemed to be in default with effect from that date and the person by whom such amount is payable, or where such amount is payable by more than one person or by a partnership, then each of such persons and each, partner of the partnership, shall be deemed to be a defaulter for the purposes of this Act, with effect from such date.

(2) Where any levy or part thereof is in default by reason of the operation of section 5 or this section the defaulter shall, in addition to the levy or part thereof in default, pay as a penalty”

Provided, however, that the total amount payable as a penalty under this subsection shall in no case exceed fifty per centum of the levy or part thereof in default and any such amount may be waived or reduced if the Commissioner-General is satisfied, that by reason of any special circumstances in which the default occurred, a waiver or reduction of such amount would be just and equitable.

(a) The requirement imposed by this Act, on any person to whom this Act applies, to furnish a return of the turnover in respect of which the levy is payable by such person under this Act, for every relevant quarter, shall apply notwithstanding that his turnover for that quarter is less than twenty five thousand rupees;

(b) Where an Assessor makes an assessment or an additional assessment on any person to whom this Act applies, of the turnover tax payable by such person under the Turnover Tax Act, for any quarter referred to in paragraph (a), the Assessor may, at the same time and in the same form, make an assessment or additional assessment, as the case may be, of the levy payable by such person under this Act, for that quarter. The assessments or the additional assessments, as the case may be, shall be deemed to be separate assessments issued under the respective Acts :

Provided that an Assessor may, make an assessment or an additional assessment on any person to whom this Act applies, of the levy payable by such person under this Act for any relevant quarter, without at the same time making an assessment or an additional assessment of turnover tax payable, for that quarter, under the Turnover tax Act; and

(c) Where under Chapter XII of the Turnover Tax Act. a certificate is issued to a Magistrate or a notice, statement or certificate is issued to any person, such notice, statement or certificate, as the case may be. may also include the particulars of the levy, if any, in default under this Act. The notices statements or the certificates shall be deemed to be separate notices, statements or certificates issued under the respective Acts.