Rajasthan Sales Tax Act,1994
Section 79. Establishment of checkpost on contract basis
(1) Where the Commissioner is of the view that without establishing a departmental checkpost, it is in the interest of the State to collect a fixed sum of a tax on contract basis, in respect of all kinds of building stones, marble and granite in all their forms, gitti, bazri and animals at a particular point or for a specified area, he may through a contract, permit a contractor to collect such tax at such point or for such area, on such terms and conditions as may be specified by him, for a period not exceeding two years at a time.
(2) A contractor covered by sub-section (1) shall deposit the fixed amount of tax subject to revision on account of any increase or decrease in the rate of tax or grant of exemption from tax, in such manner and within such time as may be fixed by the Commissioner, and all the provisions of this Act including the provisions of recovery and interest shall, so far as may be, apply to such contractor.
(3) Where the period of a contract entered into sub-section (1) expires and no further contract is awarded, the same contract may be extended for a further period of three months or up to the date of the award of the next contract, whichever is earlier, and the contractor shall accordingly deposit the proportionate amount of tax for such extended period, as directed by the Commissioner.
(4) The contractor shall not collect tax on the goods under sub-section (1) exceeding the amount of tax leviable thereon under the provisions of the Act.
(5) Where a contractor violates the provisions of sub-section (4), the Commissioner or any officer not below the rank of Assistant Commercial Taxes Officer authorised by the Commissioner, shall after affording an opportunity of being heard, direct that such contractor shall pay by way or penalty, in addition to the amount of excess tax collected, a sum equal to double the amount of excess tax collected by him or any other person on his behalf.
(6) Where a contractor violates any of the terms or conditions of the contract, the Commissioner may, after recording reasons in writing, terminate the contract at any time and shall be empowered to recover the full amount of tax as stipulated under the contract from such contractor, as if such amount was a demand of tax under the Act.