DELHI VAT CIRCULAR, WHETHER SAME THEORY WILL APPLY ON SECTION 82(A) OF AVAT ACT, 2003

CIRCULAR ISSUED IN REFERENCE TO DELHI VAT:-

New Delhi: 03.09.2014

GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI
DEPARTMENT OF TRADE AND TAXES - POLICY BRANCH
No.F.3(458)/Policy/VAT/2014/335-341
 

CIRCULAR NO. 10 OF 2014-2015

Third proviso to section 74(1) of Delhi Value Added Tax Act, 2004 was inserted vide Notification No.F.14(6)/LA-2011/Iclaw/193 dated 28/09/11 which was made effective from 01/10/2011 vide Notification No. No.3(15)Fin.(Rev-I)/2011-12/ssf/113 dated 30/09/2011. The proviso is reproduced as under:-
“PROVIDED ALSO that the Commissioner may, after giving to the dealer an opportunity of being heard, may direct the dealer to deposit an amount deemed reasonable, out of the amount under dispute, before such objection is entertained.”

Since the above Notification came into effect from, 01/10/2011, the Objection Hearing Authorities can impose a pre-condition on the dealer to deposit an amount out of the amount under dispute, before such objection is entertained, only in case the objection pertains to tax periods after the above said amendment.
This issues with the approval of the Commissioner, Value Added Tax conveyed vide diary No. 1266 dated 27.08.2014.

COMMENT :-
Section 82 (A) has been inserted in Assam VAT Act, 2003 on 8th April, 2008, which contains "
An application by a dealer or person shall not be entertained by the Commissioner unless such application is accompanied by satisfactory proof of payment of minimum twenty five percent of the disputed tax, penalty, if any, imposed and the interest accrued thereon, if any............................" The aforesaid sub-section was not inserted with any retrospective effect. I have tried in my book "VAT Laws in Assam" to interpret the aforesaid sub-section and opined that the condition of pre-deposit is applicable in cases of tax periods after the date of 8th April, 2009.

For my comments on this point, please click here