2 Definitions

2.  Definitions

In this Act, unless the context otherwise requires,-

(1)  agriculture, with all its grammatical variations and cognate expressions, includes floriculture, horticulture, the raising of crops, grass or garden produce, and also grazing; but does not include dairy farming, poultry farming, stock breeding, the mere cutting of wood or grass, gathering of fruit, raising of man-made forests or rearing of seedlings or plants;

Explanation.” For the purposes of this clause and clause (4), the expression forest means the forest to which the Indian Forest Act, 1927, (XXVI of 1927) in its application to the State of Maharashtra, applies;

(2)  agriculturist means a person who cultivates land personally, for the purpose of agriculture;

1[(3) appointed day means the 1st April, 2005];

2[(3-a)  brand name  when used in the Schedule means a brand name, (whether registered or not), that is to say, a name or a mark such as a symbol, monogram, label, signature or invented words or any writing which is used in relation to a product for the purpose of indicating, or so as to indicate, a connection in the course of trade between the product and some person using such name or mark with or without any indication of the identity of that person;]

(4)  business includes, -

(a)   any service;
(b)   any trade, commerce or manufacture;
(c)    any adventure or concern in the nature of service, trade,   commerce or manufacture;

whether or not the engagement in such service, trade, commerce, manufacture, adventure or concern is with a motive to make gain or profit and whether or not any gain or profit accrues from such service, trade, commerce, manufacture, adventure or concern.    

Explanation.“ For the purpose of this clause,-

(i)  the activity of raising of man-made forest or rearing of seedlings or plants shall be deemed to be business;
(ii) any transaction of sale or purchase of capital assets pertaining to such service, trade, commerce, manufacture, adventure or concern shall be deemed to be a transaction comprised in business;
(iii) sale or purchase of any goods, the price of which would be credited or, as the case may be, debited to the profit and loss account of the business under the double entry system of accounting shall be deemed to be transactions comprised in business;
(iv) any transaction in connection with the commencement or closure of business shall be deemed to be a transaction comprised in business;

(5)  capital asset shall have the same meaning as assigned to it, from time to time, in the Income Tax Act, 1961 (43 of 1961), but the said expression shall not include jewellery held for personal use or property not connected with the business;

 (6)  Commissioner means the person appointed to be the Commissioner of Sales Tax for the purposes of this Act;

 (7)  to cultivate personally, with its grammatical variations and cognate expressions, means to carry on any agricultural operation on one™s own account,-

(a) by one™s own labour, or
(b) by the labour of one™s own family, or
(c) by servants on wages payable in cash or kind (but not in crop share), or by hired labour under one™s personal supervision or the personal supervision of any member of one™s family.

Explanation I.” A widow or a minor or a person who is subject to any physical or mental disability or is a serving member of the armed forces of the Union, shall be deemed to cultivate land personally if it is cultivated by her or his servants or by hired labour.

Explanation II.” In the case of a Hindu Undivided Family, land shall be deemed to be cultivated personally, if it is cultivated by any member of such family;

(8)  dealer means any person who, for the purposes of or consequential to his engagement in or, in connection with or incidental to or in the course of, his business buys or sells, goods in the State whether for commission, remuneration or otherwise and includes,-

(a)   a factor, broker, commission agent, del-credere agent or any other mercantile agent, by whatever name called, who for the purposes of or consequential to his engagement in or 3[in connection with or incidental to or] in the course of the business, buys or sells any goods on behalf of any principal or principals whether disclosed or not;
(b) 4[an auctioneer who sells or auctions goods whether acting as an agent or otherwise or, who organises the sale of goods or conducts the auction of goods whether or not he has the authority to sell the goods] belonging to any principal whether disclosed or not and whether the offer of the intending purchaser is accepted by him or by the principal or a nominee of the principal;
(c) a non resident dealer or as the case may be, an agent, residing in the State of a non-resident dealer, who buys or sells goods in the State for the purposes of or consequential to his 5[engagement in or in connection with or incidental to or in the course of, the business],
(d) any society, club or other association of persons which buys goods from, or sells goods to, its members;

Explanation.” For the purposes of this clause, each of the following persons, bodies and entities who 6[sell any goods] whether by auction or otherwise, directly or through an agent for cash, or for deferred payment, or for any other valuable consideration shall, notwithstanding anything contained in clause (4) or any other provision of this Act, be deemed to be a dealer, namely:-

(i)  Customs Department of the Government of India administering the Customs Act, 1962 (52 of 1962);

(ii) Departments of Union Government and any Department of any State Government;

(iii) Local authorities;

(iv) Port Trusts;

7[(iv-a) Public Charitable Trust;]

 (v) Railway Administration as defined under the Indian Railways Act, 1989 (24 of 1989)  and Konkan Railway Corporation Limited;

(vi) Incorporated or unincorporated societies, clubs or other associations of persons;

(vii) Insurance and Financial Corporations, institutions or companies and Banks included in the Second Schedule to the Reserve Bank of India Act 1934 (II of 1934);

(viii) Maharashtra State Road Transport Corporation constituted under the Road Transport Corporation Act, 1950 (LXIV of 1950);

(ix) Shipping and construction companies, Air Transport Companies, Airlines and Advertising Agencies;

(x) any other corporation, company, body or authority owned or constituted by, or subject to administrative control, of the Central Government, any State Government or any local authority:

          8[* * *]

Exception I.” An agriculturist who sells exclusively agricultural produce grown on land cultivated by him personally, shall not be deemed to be a dealer within the meaning of this clause.

Exception II.“ An educational institution carrying on the activity of  manufacturing, buying or selling goods, in the performance of its functions for achieving its objects, shall not be deemed to be a dealer within the meaning of this clause.

Exception III.” A transporter holding permit for transport vehicles (including cranes) granted under the Motor Vehicles Act, 1988 (5 of 1988), which are used or adopted to be used for hire or reward shall not be deemed to be a dealer within the meaning of this clause in respect of sale or purchase of such transport vehicles or parts, components or accessories thereof.

(9)  declared goods means declared goods as defined, from time to time, in the Central Sales Tax Act, 1956 (74 of 1956);

9[(10) document includes electronic record as defined in the Information Technology Act, 2002 (16 of 2002);]

 (11)  earlier law means any of the following laws, that is to say,-

(i)   The Bombay Sales of Motor Spirit Taxation Act, 1958 (Bom. LXVI of 1958),

(ii)  The Bombay Sales Tax Act, 1959 (Bom. LI of 1959),

 10[(iii) * * * deleted]

(iv) The Maharashtra Sales Tax on the Transfer of the Right to use any goods for any Purpose Act, 1985 (Mah. XVIII of 1985) and

(v)  The Maharashtra Sales Tax on the Transfer of Property in Goods involved in the Execution of Works Contract (Re-enacted) Act, 1989 (Mah. XXXVI of 1989),
each of them as amended, from time to time, and includes enactments which have validated anything done or omitted to be done under any of the above-mentioned laws;

(12)  goods means every kind of movable property not being newspapers, actionable claims, money, stocks, shares, securities or lottery tickets and includes live stocks, growing crop, grass and trees and plants including the produce thereof including property in such goods attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale;

(13)  importer means a dealer who brings any goods into the State or to whom any goods are dispatched from any place outside the State;

(14)  legal representative shall have the meaning assigned to it in clause   (11) of section 2 of the Code of Civil Procedure, 1908 (V of 1908);

 (15)  manufacture, with all its grammatical variations and cognate expressions includes producing, making, extracting, altering, ornamenting, finishing or otherwise processing, treating or adapting any goods;

 (15A) motor spirit means,-
(a)          High Speed Diesel Oil;
(b)          Aviation Turbine Fuel (Duty paid);
(c)          Aviation Turbine Fuel (Bonded);
(d)          Aviation Gasoline (Duty paid);
(e)          Aviation Gasoline (Bonded);
(f)           Petrol;

and any other product as the State Government may, from time to time, notify in the  Official Gazette;]

(16)  non-resident dealer means a dealer who effects purchases or sales of any goods in the State, but who has no fixed place of business 11[* * *] in the State;


(17)  person includes an individual, any State Government, the Central Government, any company or society or club or association or body of individuals whether incorporated or not, and also a Hindu Undivided Family, a firm and a local authority and every artificial juridical person not falling within any of the preceding descriptions;

 (17A)  petroleum products means,-

(a)            Superior Kerosene Oil (SKO);

(b)            Liquefied Petroleum Gas (LPG);

(c)            Furnace Oil (FO);

(d)            Light Diesel Oil (LDO);

(e)            Raw Naptha or Naptha;

(f)             Low Sulpher Heavy Stock; 

                 and any other product as the State Government may, from time to time, notify in the  Official Gazette;]

(18)  place of business includes a warehouse, godown or other place  where a dealer stores his goods and any place where the dealer keeps his books of accounts;

(19)  prescribed means prescribed by the rules or by any notification;

 (20)  purchase price means the amount of valuable consideration paid or payable by a person for any purchase made including any sum charged for anything done by the seller in respect of the goods at the time of or before delivery thereof,other than the cost of insurance for transit or of installation, when such cost is separately charged;

Explanation I.” The amount of duties levied or leviable on the goods under the Central Excise Act, 1944, (I of 1944) or the Customs Act, 1962 (52 of 1962) or the Bombay Prohibition Act, 1949 (Bom. XXV of 1949) shall be deemed to be part of the purchase price of such goods, whether such duties are paid or payable by or on behalf of the seller or the purchaser or any other person.

Explanation-IA.-Purchase price shall not include the amount of service tax levied or leviable under the Finance Act, 1994 and collected separately by the seller.

 Explanation II.” Purchase price shall not include tax paid or payable by a person in respect of such purchase.

Explanation III.” Purchase price shall include the amount paid by the purchaser by way of deposit whether refundable or not which has been paid whether by way of a separate agreement or not, in connection with or incidental or ancillary to, the said purchase of goods.

12[Explanation IV. deleted w.e.f. 1-7-2007]

(21)  registered dealer means a dealer registered under this Act;

 (22)  resale means a sale of purchased goods-

(i)  in the same form in which they were purchased, or
(ii) without doing anything to them which amounts to, or results in, a manufacture, and the word resell shall be construed accordingly;

 (23)  rules means the rules made under this Act;

(24)  sale means a sale of goods made within the State for cash or deferred payment or other valuable consideration but does not include a mortgage, hypothecation, charge or pledge; and the words sell, buy and purchase, with all their grammatical variations and cognate expressions, shall be construed accordingly;

Explanation.” For the purposes of this clause,-

(a)  a sale within the State includes a sale determined to be inside the State in accordance with the principles formulated in section 4 of the Central Sales Tax Act, 1956 (74 of 1956);

(b)(i) the transfer of property in any goods, otherwise than in pursuance of a contract, for cash, deferred payment or other valuable consideration;

(ii) the transfer of property in goods (whether as goods or in some other form) involved in the execution of a 13[14[works contract including], an agreement for carrying out for cash, deferred payment or other valuable consideration, the building, construction, manufacture, processing, fabrication, erection, installation, fitting out, improvement, modification, repair or commissioning of any movable or immovable property;]


(iii) a delivery of goods on hire-purchase or any system of payment by instalments;

(iv) the 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;


(v) the supply of goods by any association or body of persons incorporated or not, to a member thereof for cash, deferred payment or other valuable consideration;

(vi) the 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 made or given for cash, deferred payment or other valuable consideration;

   15[(vii) * * *]

          shall be deemed to be a sale.

(25)  sale price means the amount of valuable consideration paid or payable to a dealer for any sale made including any sum charged for anything done by the seller in respect of the goods at the time of or before delivery thereof, other than the cost of insurance for transit or of installation, when such cost is separately charged.

Explanation I.” The amount of duties levied or leviable on goods under the Central Excise Act, 1944 (1 of 1944) or the Customs Act, 1962 (52 of 1962) or the Bombay Prohibition Act, 1949 (Bom. 25 of 1949), shall be deemed to be part of the sale price of such goods, whether such duties are paid or payable by or on behalf of, the seller or the purchaser or any other person.

Explanation-IA.-Sale price shall not include the amount of service tax levied or leviable under the Finance Act, 1994 collected separately from the purchaser.

Explanation II.” Sale price shall not include tax paid or payable to a 16[seller] in respect of such sale.

Explanation III.” Sale price shall include the amount received by the seller by way of deposit, whether refundable or not, which has been received whether by way of a separate agreement or not, in connection with or incidental or ancillary to, the said sale of goods;

17[Explanation IV. deleted w.e.f. 1-7-2007]

(26)  Schedule means the Schedule appended to this Act.

 (27)  service means any service as may be notified by the State Government, from time to time, in the Official Gazette;

 (28)  the State means the State of Maharashtra;

(29)  tax means a 18[sales tax or purchase tax  leviable] or as the case may be, payable, under this Act and includes any amount payable by way of composition;

(30)  tax-free goods means goods against which the rate of sales tax is shown to be NIL in the Schedule and taxable goods means goods other than tax free goods;

 (31)  Tribunal means the Maharashtra Sales Tax Tribunal constituted under section 11;

(32)  turnover of purchases means the aggregate of the amounts of purchase price paid and payable by a dealer in respect of any purchase of goods made by him during a given period, after deducting the amount of,-
 (a)   purchase price, if any, refunded to the dealer by the seller in respect of any goods purchased from the seller and returned to him within the prescribed period; and

  (b) deposit, if any, refunded in the prescribed period to the dealer by the seller, in respect of any goods purchased by the dealer.

Explanation I.” In respect of goods delivered on hire-purchase or any system of payment by instalment or in respect of the transfer of the right to use any goods for any purpose (whether or not for a specified period) the amounts of purchase price paid or payable during a given period shall mean the amounts paid or, as the case may be, due and payable during the said period.

19[(Explanation II) * * *]

(33)  turnover of sales means the aggregate of the amounts of sale price received and receivable by a dealer in respect of any sale of goods made during a given period after deducting the amount of -

(a) sale price, if any, refunded by the seller, to a purchaser, in respect of any goods purchased and returned by the purchaser within the prescribed period; and

(b) deposit, if any, refunded in the prescribed period, by the seller to a purchaser in respect of any goods sold by the dealer.

Explanation I.” In respect of goods delivered on hire-purchase or any system of payment by instalment or in respect of the transfer of the right to use any goods for any purpose (whether or not for a specified period) the amounts of sale price received or receivable during a given period shall mean the amounts received or as the case may be, due and payable during the said period;

20[(Explanation II) * * *]

 Explanation III.” Where the registration certificate is cancelled, the amounts of sale price in respect of sales made before the date of the cancellation order, received or receivable after such date, shall be included in the turnover of sales during a given period;

(34)  vehicle 21[means] a goods carriage as defined in the Motor Vehicles Act, 1958 (59 of 1958); and

 (35)  year means the financial year.

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1.  Clause (3) substituted by Mah. Act No. XIV of 2005, w.e.f. 1-4-2005.

2.   Clause (3-a) inserted by Mah. Act No. XXXII of 2006, dt. 5.8.2006 w.e.f. 20.6.2006.

3. These words were inserted by Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f. 1.4.2005.

4. This portion was substituted by Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f. 1.4.2005.

5. These words were substituted by Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f. 1.4.2005.

6. These words were substituted by Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f. 1.4.2005.

7. Clause (iv-a) inserted by Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f. 1.4.2005.

8. Proviso deleted by Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f. 1.4.2005.

9. Clause (10) substituted by Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f. 1.4.2005.

10. Sub-clause (iii) deleted by Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f. 1.4.2005.

10a. This clause (15A) was inserted by Mah. Act No. VIII of 2012 dated 25th April 2012 w.e.f.1.4.2005

11.These words  or residence were deleted by Mah. Act No. XXV of 2007, dt. 6.8.2007  w.e.f. 15.8.2007.

11a. This clause (17A) was inserted by Mah. Act No. VIII of 2012 dated 25th April 2012 w.e.f.1.4.2005.

12. .Explanation IV was added and shall be deemed to have been added w.e.f. 1st April, 2005 by Mah. Act No. XXXII of 2006, dt. 5.8.2006. and again Explanation IV was deleted by Mah. Act No. XIX of 2007 dt. 27.7.2007 w.e.f. 1st July, 2007. Prior to deletion the Explanation IV was read as under :-

      Explanation IV.”The amount of valuable consideration paid or payable by a dealer for the purchase of drugs specified in entry 29 of Schedule C shall be the maximum retail price printed on the package containing the drugs;

13.  These words were substituted for the words works contract by Mah. Act No. XXXII of 2006, dt. 5.8.2006 w.e.f. 20.6.2006.

14.  Again these words were substituted for the words works contract namely and shall be deemed to have been substituted w.e.f. 20th June, 2006 by Mah. Act No. XXV of 2007, dt. 6.8.2007. s.6(2).

15.   Paragraph (vii) deleted by Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f. 1.4.2005.

16.  This word was substituted by Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f. 1.4.2005.

17.  Explanation IV was added by Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f. 1.4.2005 and again Explanation IV was deleted by Mah. Act No. XIX of 2007 dt. 27.7.2007 w.e.f. 1st July, 2007. s.2(b). Prior to delet the Explanation IV was read as under :-

      Explanation IV.”The amount of valuable consideration paid or payable to a dealer for the sale of Drugs specified in entry 29 in Schedule C shall be the maximum retail price printed on the package containing the Drugs.

18.  These words were deleted by Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f. 1.4.2005 and again inserted by Mah. Act No.VIII of 2012 dated 25th April 2012 w.e.f.1.5.2012. Prior to substitution read as:sales tax leviable

19.  Explanation II was deleted by  Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f. 1.4.2005

20.  Explanation II was deleted by  Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f. 1.4.2005

21.  This word was substituted for the word includes by Mah. Act No. XIV of 2005, dated the 31st March, 2005 w.e.f. 1.4.2005