3. Levy and collection of tax.—

 (1) (a) There shall be levied and collected a tax on the entry of the notified goods into any local area for sale, consumption or use therein. The goods and the rates at which, the same shall be subjected to tax shall be notified by the Government. The tax shall be on the value of the goods as defined in clause (n) of sub-section (1) of section 2 and different rates may be prescribed for different goods or different classes of goods or different categories of persons in the local area;

(b) the tax shall be payable by the importer in such manner and within such time as may be prescribed;

(c) the rate of tax to be notified by the Government in respect of any commodity shall not exceed 1[the rate applicable for the commodity under the Andhra Pradesh Value Added Tax Act, 2005] or the notifications issued thereunder :

Provided that the tax payable by the importer under this Act shall be reduced by the amount of tax paid, if any, under the law relating to 2[Value Added Tax] in force in the Union Territory or State, in which the goods are purchased.

(2) Notwithstanding anything contained in sub-section (1), no tax shall be levied on the notified goods imported by a dealer registered under

3[the Andhra Pradesh Value Added Tax Act, 2005] who brings such goods into any local area for the purpose of resale 4[or using them as inputs for  manufacture of other goods] in the State of Andhra Pradesh or during the course of inter-State trade or commerce : Provided that if any such dealer, after importing the notified goods for the purpose of resale, consumes such goods in any form or deals with such goods in any other manner except reselling the same 5[or using the same as inputs for manufacture of other goods], he shall forthwith notify the assessing authority by the 20th of the month, succeeding the month in which such goods are so consumed or dealt with and pay the tax, which would have been otherwise leviable under sub-section (1), along with interest for the period of delay at the rate of 18% per annum compounded quarterly.

(3) If any dealer having imported the notified goods for the ostensible purpose of resale deals with such goods in any other manner or consumes the same and does not notify to the assessing authority as provided in subsection

(2) or does not pay the tax as required under sub-section (2) within the specified period, the assessing authority shall assess the amount of tax which such dealer is liable to pay and levy penalty equal to the amount of tax due, apart from collecting interest from the date of entry of the goods into the local area.

1. Subs. for the words “the rate specified for that commodity under the Andhra Pradesh General Sales Tax Act, 1957 (Act VI of 1957) by Act 4 of 2006, w.e.f. 1st April, 2005.

2. Subs. for the words “General Sales Tax” by Act 4 of 2006 w.e.f. 1st April, 2005.

3. Subs. for the words “Andhra Pradesh General Sales Tax Act, 1957” by Act 4 of 2006, w.e.f. 1st April, 2006.

4. Ins. by Act 4 of 2006, w.e.f. 1st April, 2006.

5. Ins. by Act 4 of 2006, w.e.f. 1st April, 2006.