Sales Tax Instructions

Sales Tax Instructions, 2009
NIC No._____________________
Address _____________________
Signature ____________________
NIC No.________________________
Address ________________________
Signature _______________________
(N)
BLACKLISTING AND SUSPENSION OF REGISTRATION
30. In order to ensure that the Sales Tax Collectorates follow a uniform
policy for blacklisting and suspension of sales tax registration of suspected persons under
section 21(2) of the Sales Tax Act, 1990 and for subsequent proceedings in such cases,
the Board is pleased to make the following procedure:
Blacklisting
31. Under section 21(2) of the Sales Tax Act, 1990, a registered person may
be blacklisted on his registration suspended pending further inquiry where the Collector
is satisfied that he has issued fake invoices, evaded tax or committed tax fraud.
32. Before blacklisting or suspending the registration of any registered
person, the Collectorate shall make efforts to confirm the facts and veracity of the
information. In case of reported non-availability at the given address, it may be checked
from the Registration Division whether the person submitted any information about
change in address, the given address may be visited by an officer of the Collectorate, or
any 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.
33. If the Collector is satisfied that the person needs to be blacklisted or his
registration suspended, he shall first issue notice to the registered person and give him an
opportunity of being heard. In case the registered person does not respond to the notice
within the specified time, or his reply is not satisfactory, the Collector may issue order for
blacklisting or suspension of his registration, mentioning reasons for the same. Copies of
the order shall be endorsed to the registered person concerned, all other Sales Tax
Collectorates, the Sales Tax Wing computer system and the STARR computer 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 persons.
Removal from Blacklisting or Suspension
34. After issuing order for blacklisting or suspension of
registration/enrolment, the Collectorate should proceed to conduct inquiry under section
21(2) 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.