Sales Tax Instructions

Sales Tax Instructions, 2009
address may be visited by an officer of the Collectorate, or an attempt
may be made to trace the person from documents such as National
Identity Card, income tax records, bank account, etc. In case of reported
non-access to the premises and/or non-production of record, a notice may
be issued through registered post to the person to allow access/produce
records, clearly indicating that refusal or delay will result in blacklisting
or suspension of his registration/ enrolment.
(iii)
If the Collector is satisfied that the person needs to be blacklisted or his
registration/enrolment suspended, he shall issue an order for the same,
mentioning reasons for such blacklisting/suspension. Copies of the order
shall be endorsed to the person concerned, all other Sales Tax
Collectorates, the Sales Tax Wing computer system and the STARR
system. Each Collectorate shall circulate all such lists to their refund,
audit and other concerned staff to ensure that no refund is paid or input
adjustment is taken on invoices issued by such suspected persons.
2. Removal from blacklisting or suspension lists
(i) After issuing order for blacklisting or suspension of
registration/enrolment, the Collectorate should proceed to conduct
inquiry under section 21(4) of the Sales Tax Act, 1990, and in case of
confirmation of the offence, proceed to take legal and penal action under
the relevant provisions of the Sales Tax Act, 1990. Such inquiry may
extend to suppliers and buyers of the blacklisted/suspended person to
ascertain whether any inadmissible inputs or refunds have been taken by
them.
(ii)
(iii)
(iv)
Where the case is not established against a suspected person, the
Collector shall issue an order revoking the blacklisting or suspension of
registration/enrolment, endorsing copies to the person concerned, all
other Sales Tax Collectorates, the Sales Tax Wing computer system, and
the STARR system for deletion from their lists. Each Collectorate shall
circulate copies of all such orders to their concerned staff for
information.
Unless the Collector specifies otherwise, such orders shall have effect
from the date of original blacklisting or suspension of
registration/enrolment of the concerned person, so that invoices issued by
him during the intervening period are acceptable.
In case audit of the blacklisted/suspended person was already conducted
before initiating the inquiry under section 21(4) of the Sales Tax Act,
1990, and such audit report is approved by an officer not below the rank
of an Additional Collector, it may be accepted for the purpose of
revoking the blacklisting or suspension/enrolment. However, if the audit