3. Levy of tax

(1) For the purpose of development of trade, commerce and industry and for creation and maintenance of infrastructure facilities for free flow of trade and commerce in the State, there shall be levied and collected a tax on entry of all goods, except goods specified in Schedule  ‘A’, into a local area for consumption, use or sale therein, from any place outside that local area, at such rate not exceeding five percent of the value of the goods, as may be specified by the State Government by notification and different rates may be specified in respect of different goods or different classes of goods.

(2) The tax levied under sub-section (1) shall be paid by the importer :

Provided that an importer shall not be liable to pay tax so long as the aggregate value of taxable goods he brings into or receives on their entry into any local area does not, in a year, exceed ten lakh rupees or such other sum as the State Government may, by notification, specify:

Provided further that an importer who has once become liable to pay tax under this Act shall continue to be so liable until the expiry of three consecutive years during each of which the aggregate value of any taxable goods he brings into or receives on their entry into any local area does not exceed the amount specified in the first proviso to this sub-section.

Explanation. ? Where the goods are received on its entry into a local area by a person other than an importer, the importer, if any, who further receives the goods from such person shall be deemed to have received the goods on entry into the local area.

Provided further that an importer who incurred liability for payment of tax under the old Act, whose certificate of registration continues to be intact till the time of repeal of the old Act, shall continue to be so liable for tax under this Act as well.

(3) The tax shall be levied, assessed and collected in such manner and in such instalments, if any, as may be prescribed.