Guidelines for framing and issuance of statutory orders/notices under the DVAT Act - VAT - Delhi - 01

Guidelines for framing and issuance of statutory orders/notices under the DVAT Act FOR INTERNAL CIRCULATION GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI DEPARTMENT OF TRADE AND TAXES (POLICY BRANCH) VYAPAR BHAWAN: I.P. ESTATE, NEW DELHI-110002 Dated : 14.05.2007 CIRCULAR No. 1 OF 2007-08 Sub : Guidelines for framing and issuance of statutory orders/notices under the DVAT Act. During a recent meeting chaired by worthy Commissioner, VAT, the Objection Hearing Authorities have pointed out that the statutory orders/notices, especially the notice proposing rejection of an application for registration and notices regarding default assessment of tax and penalty under DVAT are not being framed and passed properly by the operational/ward circle authorities. Many of such orders are non-speaking ones and also there is no mention of any ground or even the section under the provisions of which such orders are issued. This assigns unwarranted interpretations and causes delay in disposal of objections filed under the provisions of section 74 of the DVAT Act. In order to over come these difficulties and to improve the working of the department, it has been desired that the following guidelines should be adhered to by the ward/circle authorities:- 1. The comments and relevant files should be sent to the Objection Hearing Authorities on the date as desired by them without fail as the Objections are to be decided in the time bound manner. 2. In case of rejection of an application for registration under DVAT Act, the rejection order should clearly mention the reasons in detail for rejecting the registration application instead of using the phrases like 'Reply to DVAT-05 not received'. 3. DVAT-05 should be issued in a time bound manner and should contain all the deficiencies as observed by them because in some cases it has been notices that the grounds of rejection are different than the grounds mentioned in DVAT-05. 4. Sufficient time should be given to the applicant to remove the deficiency as it has also been observed that in some cases DVAT-05 was dispatched either on the same date on which the applicant should remove the deficiency or on a date very close to the appearances date. 5. While sending the comments, the VATOs AVATOs should mention whether the DVAT-05 was sent through Regd. Post or the applicant/his counsel had received the same in the ward by hand. 6. The scrutiny Performa as prescribed should be filled up when the DVAT-16 is called for the relevant period by any of the Objection Hearing Authorities and it should also be mentioned whether the dealer is a habitual defaulter or not or any other important information which may help in deciding the Objection. 7. The Default Assessment and Penalty Orders should be passed judiciously stating why the Default Assessment and Penalty Orders are being issued and the reasons for accepting/not accepting the version of the dealer and the reasons/basis for assuming the turnovers in the Default Assessments and Penalty Orders. 8. Before issuing the Default Assessment and Penalty Orders, the VATOs and AVATOs should verify from the ward record whether the dealer has filed the return or not because it has been observed that sometimes the Default Assessment Orders stating non filing of return were issued even after the dealer had filed the return and sufficient effort was not made by the ward authorities to ascertain the availability of returns. 9. The Default Assessment and Orders should be issued as separate orders and relevant Sub-Sections should be quoted in the Penalty Orders under which the particular penalty has been imposed. 10. The tax period of Default Assessment and Penalty should be mentioned while issuing the Orders. 11. Separate Assessment Orders should be issued under Local Central Acts. 12. The designation of the issuing/signing officer should be mentioned in the orders. 13. The departmental stamp should also be affixed on the orders. This issues with the prior approval of Commissioner, VAT. Sd/- (G.D. GROVER) Value Added Tax Officer (Policy) No.F.6(41)/Policy-I/VAT/2007/92-96 Dated: 14.05.2007 1. P.S. to Commissioner, Value Added Tax, for information. 2. P.A.s to All Additional Commissioners/Joint Commissioners, for information. 3. All Zonal Joint Commissioners/Deputy Commissioners, for information. 4. All VATOs/AVATOs, for ensuring compliance. 5. Guard File. Sd/- (G.D. GROVER) Value Added Tax Officer (Policy)