From
the time MVAT Act has come in force hardly any Assessment Orders were passed,
only Refund Orders were generally passed in case of Refund cases, as time limit
for completing assessment were not getting time barred & therefore they
were not on the Department’s priority list. But as on date assessments of the
two financial years i.e. 2005-06 & 2008-09 are on priority as they are
getting time barred on 30th June 2013 (earlier this date was
31st March 2013) but due to the Notification Maharashtra Value Added tax
(Amendment) Act, 2013, (Mah Act No. 4 of 2013 dtd 20-04-2013 time limit for
passing order for F.Y. 2005-06 & 2008-09 is extended from 31st March
2013 to 30th June 2013. In view of above, lets discuss some of the provisions
related to Assessment & Refund & Practical Problems & other
Remedies etc…. which may be important to the STP’s, C.A.’s & Advocates
etc…. at time of Assessment & Refund.
Sec
21 Time Limit for Issue of Notice in Certain Cases
*
Sec. 21: No Notice for assessment in certain cases
1.
Where a return is filed by the prescribed date by a registered
dealer, no notice calling the dealer for assessment in respect of the period
covered by the return shall be served on the dealer after 2
years from the end of the year containing the period to which the return
relates
2.
Where a registered dealer has not filed a return in respect of any
period by the prescribed date, no notice calling the dealer for assessment in
respect of the said period shall be served on the dealer after 3
years from the end of the year containing the period to which the return
relates
3.
Notwithstanding anything contained in sub-sec (1) or (2), a notice for
assessment in respect of any period ending on or before the
31st March 2008, may be served on the dealer within a period
of 6 years from the end of the year containing the period to
which the return relates”
* The
above mentioned section is deleted w.r.e.f 01/04/2005 by Mah. 6 of
2011 & hence now there being no limit for issuing notice for assessment
under MVAT Act, 2002.
Generally
In every law or an Act there is a time limit for issue of Notice for starting
an Assessment but in MVAT act, as stated above, there is no time limit for
issue of Notice for Assessment under MVAT Act. Therefore, now the time limit
specified in every Sub-Section of Section 23 for completion of assessment , 15
days prior to that (see Rule 21) may be deemed to be the last date
till which Notice for assessment can be issued as per my view &
understanding.
Sec
23: Assessment under MVAT Act, 2002
Sec.
23(1): Assessment where Dealer fails to file a Return
“Sec
23 (1) Where a registered dealer fails to file a return in respect of any
period by the prescribed date, the Commissioner may assess the dealer in
respect of the said period to the best of his judgment without serving a
notice for assessment and without affording an opportunity of being heard:
Provided
that, if after the assessment order is passed, the dealer submits the return
for the said period along with evidence of payment of tax due as per the return
or submits evidence of return for the said period having been filed before the
passing of the assessment order along with evidence of payment of tax due as
per the return, then the Commissioner shall cancel, by order in writing, the
said assessment order and after such cancellation, the dealer may be assessed
in respect of the said period under the other provisions of this section:
Provided
further that, such cancellation shall be without prejudice to any interest or
penalty that may be levied in respect of the said period”
The
time limit for passing the order in this case is 3 years from the end of the
year containing the said period. It is to be noted that the said order is
non appealable. However, on dealer’s furnishing evidence of return being filed
with payment of tax, such order will be cancelled. The dealer shall have to
make application for cancellation of assessment in Form 304 as per Rule 24 (1).
(Rule
24(1) - Removed from MVAT 2nd amendment rules dtd 21.05.2013)
(No
time limit to submit F.304, acc. To me.)
(See
Trade Circular 12T of 2012 – Where New Procedure for cancelling UAO is given)
Sec
23(2): Assessment of Full Books of Accounts, Notice in Form 301
“Sec
23(2): Where the return in respect of any period is filed by a registered
dealer by the prescribed date and if the Commissioner considers it necessary or
expedient to ensure that return is correct and complete] and he thinks it
necessary to require the presence of the dealer or the production of further
documents, he shall serve on such dealer, a notice requiring him on a date and
at a place specified therein, either to attend and produce or cause to be
produced all documents on which such dealer relies in support of his return or
to produce such documents or evidence as is specified in the notice”.
Notice
in such cases is issued in Form 301 calling the dealer to attend & to
produce or cause to be produced evidence i.e. books of account & other
documents/evidence in support of the returns filled by him. Time limit for
passing the order is 4 years from the end of the year to which return relates.
As
per 3rd proviso inserted by Maharashtra Value Added tax (Amendment) Act,
2013, (Mah Act No. 4 of 2013 dtd 20-04-2013 time limit for passing order for
2008-09 is extended from 31st March 2013 to 30th June 2013.
At
time of assessment the dealer is generally required to furnish following
statements & Forms:
1.
VAT & CST Returns & Acknowledgements & Payment challan copies.
2.
VAT Audit & TAX Audit report, if applicable, alongwith Trading, P&L A/c
& Balance sheet with fixed assets schedules.
3.
Monthwise Sale & Purchase summary details ( having total break up of Net
amt., VAT amt., OMS , Labour etc..) along with reconciliation with P & L
A/c and returns .
4.
Purchase list of Parties from whom purchases made during the year exceeds
Rs.25,000/- along with their name ,address, VAT TIN & sample purchase bill
copies & original Tax invoices for verification.
5.
Original C - forms, H- forms, F-forms ( duly filled in all respects ) received
against sales made against the declarations, with Invoices & transport
receipts etc…along with statement.
6.
Export related documents , i.e sale bill , bill of lading/ airway bill/shipping
bill, packing list etc…., if export sale are there.
7.
Contract copies in case of WCT , Forms 406, 409 etc…, Original WCT TDS
Certificates, workings of WCT etc..
8.
Letter of Authority.
9.
Fixed Assets or Capital equipments etc…. purchased details, bills & ITC on
the same.
10.
Ledger confirmations of Top 10 parties
11.
VAT Calculations, i.e. Output VAT collected , ITC claimed, Reductions in set
off, statement of Taxes paid already etc….
12.
Other details, as per case to case requirements.
Sec
23(3): Best Judgment Assessment/ Ex Parte Assessment
“Sec
23(3) - Where a registered dealer has not filed the return in respect of any
period by the prescribed date, then the Commissioner may, serve on the dealer a
notice requiring him to attend on a date and at a place specified therein
and after giving the dealer a reasonable opportunity of being
heard, proceed to assess, to the best of his judgment, the amount of tax
due from him”
(U/s
23 (1) – No opportunity of being heard – difference)
When
the dealer fails to file the return in respect of any period by the prescribed
date, the Commissioner may issue a notice & proceed to assess to the best
of his judgment.
Time
limit for passing order under this sub section is 5 years from the end of the
year to which return relates.
The
Commissioner while passing any best judgment assessment order shall have to
consider past records of the dealer & all the materials available before
him. Under the power of best judgment, the Commissioner is not empowered to
pass any order as per his wish. Whatever disallowances or estimations or
additions made should be on sound basis or reason, otherwise it may not sustain
in appeal. There is no standards for it but it should be sound & reasonable
having regard to the circumstances of the case.
Imp.
Judgements:-
1.
State of Kerala V/s C Velkutty (1966) 60 ITR 239 (SC) –
"The
limits of the power are implicit in the expression "best of his
judgment". Judgment is a faculty to decide matters with wisdom truly and
legally. Judgment does not depend upon the arbitrary caprice of a judge, but on
settled and invariable principles of justice. Though there is an element of
guess- work in a "best judgment assessment", it shall not be a wild
one, but shall have a reasonable nexus to the available material and the
circumstances of each case.”
2.
CIT vs. Laxminarain Badridas (1937) 5 ITR 170 (PC) –
"The
officer is to make an assessment to the best of his judgment against a person
who is in default as regards supplying information. He must not act dishonestly
or vindictively or capriciously because he must exercise judgment in the matter.
He must make what he honestly believes to be a fair estimate of the proper
figure of assessment, and for this purpose he must, their Lordships think, be
able to take into consideration local knowledge and repute in regard to the
assessee's circumstances, and his own knowledge of previous returns by and
assessments of the assessee, and all other matters which he thinks will assist
him in arriving at a fair and proper estimate ; and though there must
necessarily be guesswork in the matter, it must be honest guesswork. In that
sense, too, the assessment must be, to some extent, arbitrary. "
If not
satisfied with the order, dealer can prefer Appeal in Form 310, within
60 days from the date of communication of the order which is a subject matter
of the appeal.
|
Sec
23(3A): Time Limit for Asst. for period till 2007-08
This
sub-section is substituted by Mah Act 6 of 2011 & provides that the
assessment under sub-section (2) or (3) of section 23 for any period upto
31st March 2008 may be made within 7 years from the end of the year
containing the said period.
As
per proviso inserted by Maharashtra Value Added tax (Amendment) Act, 2013, (Mah
Act No. 4 of 2013 dtd 20-04-2013 time limit for passing order for 2005-06 is
extended from 31st March 2013 to 30th June 2013.
Section
|
Time
Limit for Passing Order
|
23(3A) (for the
period ending on or before 31st March 2008)
|
7 years from
the end of the year containing the said period.
|
23(2) & (3)
for the period commencing on or after 01st April 2008
|
1.
4
years (where returns are filed) from the end of the year containing the
said period.
2.
5
years (where return is not filed) from the end of the year containing
the said period.
|
Sec
23(4): Assessment for Unregistered Period
Where
the dealer has failed to apply for registration within the time required, the
Commissioner may issue Notice & assess him for any period or periods
subsequent thereto. The time limit in this case is 8 years from the end
financial year containing the said period.
Sec.
23(5): Transaction/Period/Claim wise Assessment, Notice in Form 302:
Clause
(a) of this sub section was substituted by Maharashtra Tax Laws (Levy
& Amendment) Act, 2010 & is effective from 01/05/2010.
This
section reads as follows;
“Sec
23(5)(a) During the course of any proceedings under this Act, if the
prescribed authority is satisfied that the tax has been evaded or sought
to be evaded or the tax liability has not been disclosed correctly or excess
set-off has been claimed by any dealer or person] in respect of any
period or periods by not recording or recording in an incorrect
manner, any transaction of sale or purchase, or that any claim
has been incorrectly made, then in such a case notwithstanding that any notice
for assessment has been issued under other provisions of this section or any
other section of this Act, the prescribed authority may, after giving such
dealer or person a notice in the prescribed form and a reasonable opportunity
of being heard, initiate assessment of the dealer or person in respect of such
transaction or claim.
(b) During
the course of any proceedings under section 64, if the prescribed authority is
satisfied that the tax has been or is sought to be evaded, as provided under
clause (a) by any dealer or person, the said authority may, after issuing a
notice in the prescribed form and after giving a reasonable opportunity of
being heard to such dealer or person, proceed to assess such dealer or person as
provided in clause (a) in respect of any such transaction or claim relating to
any period or periods and such authority shall, notwithstanding anything
contained in section 59, be deemed to have the requisite jurisdiction and power
to assess such dealer or person in respect of such transaction of sale or
purchase or claim, covered by clause (a) and such assessment proceedings shall,
for all purposes of this Act, be deemed to have been transferred to such
authority.
(c) The
assessment proceedings under this sub-section shall be without
prejudice to the assessment proceedings in respect of the said period or
periods under any other provisions of this Act by any authority who
otherwise has the jurisdiction to assess such dealer or person in respect
of other transactions of sale or purchase or any other claim which are not
covered by clause (a) and clause (b).
(d) The
assessment under this sub-section shall be made separately in respect of the
transaction or claim relating to the said period or periods to the best of the
judgment of the prescribed authority where necessary and irrespective of
any assessment made under this sub-section, the dealer may be assessed
separately under the other provisions of this section in respect of the said
period or periods:
Provided
that, once the dealer or person is assessed under this sub-section, no tax from
such transaction or claim and penalty and interest, if any, consequent upon
such tax shall be levied or demanded from such dealer or person, at the time of
assessment to tax under the other provisions of this section in respect of the
said period or periods relating to such transaction or claim.”
In
Simple terms it means that if during investigation proceedings / or as per any
information with the department, if tax-evasion or incorrect recording of
transactions/claim in any period is noticed then transaction / period / claim
wise assessment can be completed. The transaction / period / claim wise
assessment can be made for a any transaction of sales/ purchase or any claim
taken incorrectly for any period. This assessment shall be without prejudice to
the other provisions of assessment & once the tax has been assessed on
particular transaction / period / claim by the Assessing Officer it shall not
be taxed again at the time of regular assessment.
Note
- No
Time Limit is given in Sec. 23(5), for Passing Asst. Order.
Issues/Problems
Faced during transaction / period / claim assessment also called as Issue
Based Audit or Desk Audit by the department :
|
1. J1
J2 mismatch or Excess ITC Credit due to bill date & delivery date
difference & J3 J4 mismatch ( i.e Dealer showing less purchase returns than
the sales returns shown by suppliers ).
2.
Composition dealer wrongly issuing Tax Invoice collecting VAT Separately &
during the IBA/DA proceedings same being disallowed & purchasing dealer
asked to pay the same without first enquiring or initiating proceedings against
the Non-compliant Composition dealer.
3.
F.Y. 2008-09 being the 1st year of Annexures all the VAT Tin Nos of the
Customers & Suppliers not available & hence not inserted in the VAT
audit report, , or wrong TIN insertion in VAT audit report resulting in notices
of Sales suppression , J1 J2 mismatch, TAX Credit from Wrong TIN etc….
4.
CST Declarations not filed properly & given by customers & even
incomplete in some cases etc…. & Form C or F Excess Value – Value of C of F
forms issued by the Central Repository is in excess of the OMS purchases shown
in the Returns or 704.
5.
Declartions not recd. shown in Audit report, Consequential diff. Tax + Interest
payable notices & Notices for Asked to pay MVAT / CST by Auditor.
6.
Tax credit from Return defaulter, i.e Department proposes to recover Tax along
with interest from ITC claimant dealer whose supplier has not filed returns,
instead of catching hold that defaulting dealer first.
7.
Tax Credit from RCC , i.e Disallowance of ITC claimed by the dealer on the Tax
Invoice from such Suppliers whose registrations are cancelled prior to the
audit period of the ITC claimant dealer.
8.
ITC Disallowance from purchases effected from Hawala Dealers.
(Acc.
To my info. Hawala lists includes:
1)
Hawala dealer,
2)
Payment & Return defaulter,
3) Dealer
not found at POB.)
Imp. Note
- Application in Form 316 (i.e. cancellation of Asst. Order in case of
unability to remain present at time of hearing when Asst. Order was passed)
cannot be made against the order passed under this sub section as explained
in Sec 23(11).
|
Sec.
23(6): Notice in Form 315 - If Commissioner is of the
opinion that there is non disclosure of sales/purchases, wrong set-off claim,
deduction has been wrongly claimed or payment of tax at lesser rate, then
notwithstanding anything contained in the other provisions of this section, he
may serve a notice & proceed to assess after giving a reasonable
opportunity of being heard. The time limit to pass assessment order here
is within 6 years from end of year containing such period.
Sec.
23(7): Where
Fresh assessment has to be made to give effect to any findings or directions
given by the Tribunal or High Court or supreme court , then notwithstanding
anything contained in this section, such assessment shall be made within
36 months from the date of communication of such finding or direction.
Sec.
23(8): The
Commissioner has powers to assess as provided in Sub-section (2) after
providing an opportunity of being heard to the dealer & pass an assessment
order, notwithstanding the fact that in a similar matter, the tribunal has
given a decision against the state government or commissioner, if in such
matter, the comm. has already filed appeal before the appropriate forum.
However No recovery of such dues shall be made pending decision by such forum.
Sec.
23(9): Application
to Commissioner in F. 305, to issue directions to complete assessment :
If
dealer applies to the Commissioner in Form 305 (i.e. Form for application for
the issuance of direction to the Assessing authority), where an assessment is
pending, & if he considers that owing to the nature of the case, or
amount involved or for any other reason, it is necessary, he may issue such
directions for the guidance of the assessing authority, to enable him to
complete the assessment & those will be binding on assessing authority. Directions
which are prejudicial to the dealer shall not be issued without giving the
dealer a reasonable opportunity of being heard.
The
exact wordings used in the section are “ The Commissioner , may on an
application in the prescribed form made by any dealer, call for
and examine the record of any proceeding in which an assessment is
pending and………..”
Issue:- Whether F.305 can be submitted
only in case , where Assessment notice is issued & the assessement is
pending or also in cases where no assessement notice is issued, but still
dealer due to some circumstances & its facts of the case wants to apply
or say in cases of refund proceedings ?
|
Sec.
23(10): Dealer
may be assessed under a single notice and by a single order of assessment in
respect of more than one period covered by a return as long as all such periods
are comprised in one year.
Sec.
23(11): Cancellation
of Assessment , Application in F.316 :-
Where
a dealer has been assessed under sub-section (2), (3) or (4) and he makes
an application in the prescribed form to the Commissioner within thirty
days of the date of service of the assessment order, for cancellation of
the assessment on the ground that he had not been able to attend or remain
present before the commissioner at the time of hearing when the assessment
order had been passed, the commissioner shall , after verifying ……… will
cancel the order including penalty or interest levied and shall make a fresh
assessment. The Fresh order of assessment may be passed before the expiry
of 18 months from the date of service of cancellation order. The dealer can
apply for such cancellation in Form 316 u/r 24(2) within 30 days from the date
of service of the order, if the order is passed u/s 23(2), (3) & (4). The
cancellation order shall be made in Form 317.
Imp. Note - Application in Form 316 (i.e.
cancellation of Asst. Order in case of unability to remain present at time of
hearing when Asst. Order was passed) can be made against the order passed
under sub section (2) (3) & (4) only & not if order is passed
under any other sub-section , i.e. the recent issue based or transaction
assessment orders ( notice issued in F.302 ) passed u/s 23(5) cannot be
cancelled u/s Sec 23(11).
|
Assessment
order u/s 23 & rule 23 shall be in Form 303 ( now F.303 also
amended by MVAT 2nd amendment rules dtd 21.05.2013 ).
Section
51 - Grant of Refunds
Section
51 (1) – Where a registered dealer has in any return, fresh return
or revised return shown any amount to be refundable and has not undertaken to
adjust such amount against the amount due as per any return in accordance with
section 50, the commissioner shall, on an application made by the
dealer and subject to rules, and other provisions of this act, grant
refund of such amount to the said dealer.
The
Important points of Section 51 are as follows:
• The
application for refund is required to be uploaded in E-Form 501. The Refund
claimed amount in the application & the refund claimed reflected in the
last return for that year should generally tally.
The
application for refund can be made after filing of return, fresh return or
revised return, as the case may be, and necessarily not to wait for completion
of year by following dealers:-
1. An
exporter with in the meaning of the section 5(1) or 5(3) of CST Act, if his
exports are more than 50% of the total turnover.
2. A
unit specified in section 8(3), i.e. 100% EOU,SEZ,STP or EHTP,
3. A
unit holding certificate of entitlement under PSI schemes except tourism
projects,1999 scheme,
4.
The canteen stores department or the Indian Naval Canteen Services,
5.
Dealer selling the goods in the course of Interstate trade & turnover of
the said interstate sales in immediate previous year exceeds 50 % of his total
turnover of sales for that year.
In
any other case application for refund can be made only after the end of
the year.
{(Sec.
51 (2)}.
The
Commissioner may on receipt of the Refund Application require the claimant
dealer to furnish such Bank Guarantee for such period as may be prescribed. On
receipt of such guarantee, the commissioner shall subject to rules, conditions
and restrictions grant the dealer a refund of the amount claimed refundable
within one month from the date of receiving such Bank Guarantee.
Section
51 (4) - Save
as otherwise provided in this section, the Commissioner shall grant the refund
under this section within eighteen months from the end of the month
containing the date of the receipt of the application for
refund. However for the Refund applications made on or before
31st march,2011, the time period is given as below:
Date of
Application made
|
Refund to be
made
|
In respect of
the periods ending on or before the 31st march 2010
|
On or before
the 30th September 2011
|
In respect of
the periods beginning with the 1st april 2010 and ending on the
31st march 2011
|
On or before
the 30th June 2012
|
The
refund shall not be granted under this section if before the grant of
refund, a notice for assessment covering the period to which the refund relates
is issued or proceedings under subsection (3) or (4) of section 64 in respect
of the period to which the refund relates are initiated. However, refund shall
be granted of an amount equal to amount of Bank Guarantee furnished, if any.
If it
is found that the refund granted is in excess of the refund found due, then the
excess shall be recovered as if it is a tax due from the dealer and on such
excess, interest shall be leviable at the prescribed rate in rule 88(4) @ 1.25%
per month or part thereof from the date of grant of the refund.
Section
51 (7) - No refund under this section shall be granted unless an
application as provided is made and no application under this section
shall be entertained unless it is made within eighteen months from
the end of the year containing the period to which the return relates.(
Earlier 18 months time limit was 3 years, but substituted w.e.f 1.5.2011 )
But
according to the Recent Bombay High Court judgment dated 22nd March
2013 in
Writ
Petition No 10816 of 2012 , in case of M/s Sachin Impex vs. The State
of Maharashtra & Ors.,
The
refund of the petitioner was held up due to non-filling of F.501 within
prescribed time & the petitioner filed a writ in the Bombay High Court
requesting that the assessment of the dealer may be completed, since its
refund is held up in consequence. The Bombay High Court passed the judgement
in favour of the petitioner by directing the assessing officer to expedite the
completion of the assessment.
Hence
, now in cases where dealer’s have failed to upload their F.501 refund
application in time, they can take the support of the above Bombay High
Court (jurisdictional high court) & make an application to the
respective Joint/Additional Commissioner’s to complete their assessment &
grant the due refund.
a.
When the Commissioner is satisfied that the refund is due, he shall record an
order in Form 502 showing the amount of refund due and shall
communicate the same to the dealer.
b.
Earlier, there was no provision in the act, to c/fd the refund claim from 1
year to another , i.e. the dealer could have carry forward refund as per any
return to subsequent period within the said year, but not to subsequent year,
& administratively the commissioner issued Trade Circulars for allowing to
C/fd the Refunds/excess ( generally Rs.1 Lakh ) upto certain amounts from 1
year to another. i.e.
Sr. No.
|
Trade Circular
|
Refund C/fd
from year to year
|
1
|
2T of 2007,
dtd. 08.01.2007
|
2005-06 to
2006-07
|
2
|
41T of 2007,
dtd. 21.05.2007
42T of 2007,
dtd. 31.05.2007
|
2006-07 to
2007-08
|
3
|
15T of 2010,
dtd. 15.04.2010
|
2009-10 to
2010-11
|
4
|
6T of 2011,
dtd. 15.04.2011
|
2010-11 to
2011-12
|
5
|
6T of 2012,
dtd. 21.04.2012
|
2011-12 to
2012-13
|
*
Hence ,it can be noted that No c/fd was allowed in F.y. 2007-08 & F.y.
2008-09, compulsory Refund claim application to be filed.
In
any other case, it could not be carried forward to the next year. Such dealers,
previously in that years, if their refund/excess amounts were more than the
limit specified in the circulars or if there were no circulars would
compulsorily had to file application in Form 501 within prescribed period, if
they wanted to claim the refund. But now as per proviso added to sub-section
(2) of section 50 by Mah. Tax Laws ( Levy & amendment ) Act, 2013 (w.e.f
01.05.2013), refunds or excess upto Rs. 5 Lakhs for periods
commencing on or after 01.04.2012 can be c/fd to immediate succeeding
year) i.e. see below actual text of proviso added to sub-section (2) of
section 50
Provided
that , for the period commencing on or after the 1st april 2012, a dealer
whose refund claim in a year is rupees five lakh or less, may, carry forward
such refund to the return or revised return for immediate succeeding year to
which such refund relates.
• For
filling of Refund Application in E-Form 501 following details are required:
a.
Invoice wise Purchase Register ( including all items on which due eligible ITC
have been claimed i.e. expenses, Capital assets etc.) having columns of Date,
Invoice No, Tin No, Net & Vat.
b.
List of Declarations Received & Not received in the format specified in
Annex C & Annex D of Form 501.
• The
detailed refund Guidelines are explained in Trade Circular 22T of 2010 dtd
05/10/2010 & 5T of 2011 dtd. 11/04/2011 & different types of
Refund procedure are also explained therewith i.e. a) Fast Track Scheme,
b) Refund under Exporters Scheme, c) Part Refund for Annual Refund & d)
General Refund.
Sections
52 and 53: Interest on refund and interest on delayed refund
Section
52 – Interest on amount of Refund
• Refund
of any tax becoming due to a R.D ( i.e. due to any assessment order etc…) is
entitled for interest @ 6% p.a. {Rule 88 (2)} commencing on the date next
following the last date of the period to which the refund relates & ending
on the date of the order sanctioning the refund or for a maximum period of 24
months, whichever is less.
• Section
52 provides that interest under this section shall not be granted towards any
refund granted under section 51 , i.e. if Refund is applied in E- Form 501, u/s
51.
Section
53 – Interest on Delayed Refund
• In
case of delayed refund, i.e. amount required to be refunded as per section 51
& it is not so refunded to him within 90 days of the respective period
provided in Section 51 or as the case may be , of the date of the said order ,
then the commissioner shall pay interest @ 6% p.a. from the date immediately
following the expiry of the period of 90 days to the date of refund.
• Rule
88: Rate of interest presently notified for Sections 52 and 53 is half percent
of amount of tax for each month or for part thereof.
Sections
54 : Power to Withhold any Refund in certain cases
•
Section 54 provides for withholding of any refund payable to dealer as a result
of any order passed under the act where that order is subject matter of any
appeal or further proceedings & competent authority has reasons to believe
that grant of such refund will affect the revenue adversely.
• The
withholding of refund cannot be made without approval from the commissioner. It
is further provided that commissioner shall approve it only if he is of the
opinion that on the conclusion of such appeal or further proceedings, then it
may not be practical or possible to recover ay amount that may become
recoverable as per that order. Further the order withholding refund cannot be
passed after 30 days from the date of service of order giving rise to the said
refund.
Disclaimer
The
views expressed in this article are the personal views of the author & the
opinion expressed in this article should not construed to legal or expert
advice, the author would not be responsible for any decisions taken by the
readers on the basis of these views.
CA
Krunal J. Davda
BCOM,
ACA
E-mail
ID – krunal_davda@yahoo.co.in and krunal.davda@gmail.com
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