Sales Tax Instructions

III.
IV.
(xi)
(i)
(ii)
(i)
(ii)
Sales Tax Instructions, 2009
handled in a transparent and prompt manner.
As part of the rationalization of existing levies, food supplied on domestic
flights by flight kitchens has also been exempted from sales tax. However,
the food supplied by restaurants for consumption on-board in local flights
shall continue to remain chargeable to sales tax.
REMOVAL OF IRRITANTS AND IMPEDIMENTS:
Section 7 of the Sales Tax Act, 1990 has been suitably amended to allow a
registered person to adjust input tax paid on purchases in the preceding 12
months/tax periods. The monthly sales tax return that, has separately been
notified, now carries a separate column so as to enable a taxpayer to reflect
such claim.
The ‗carry forward‘ scheme as provided for in section 10 of the Act has now
been abolished. Instead, the amount of input tax and other adjustments in
excess of the output tax liability shall be refunded to the registered person
within the same tax period. For the purposes of claiming refund of the
amount of input tax and other adjustments in excess of the output tax
liability, the tax return filed by the registered person shall be treated as an
application for refund under section 10 of the Sales Tax Act, 1990. The
Collectors are advised to immediately assess the carry forward being
reflected in the returns, upto tax period May, 2005 and communicate the final
to the Board by 25.06.05 to assess the total outstanding amount. Separate
"Dedicated Cells" should be set up in each Collectorate, which will handle
such claims.
SIMPLIFICATION OF TAX LAWS AND PROCEDURES:
The present system of adjudication and appeals in the Sales Tax and Central
Excise statutes has been re-organized and simplified, so as to provide
maximum relief to the taxpayers. The new arrangement will have the
following features:--
Adjudication proceedings will now only be handled upto the level of an
Additional Collector, who will function administratively under the
revenue collector;
The department would not be having the right of appeal to the Collector
(Appeals), however, the department can file appeal before the Appellate
Tribunal against the orders of Collector (Appeals).
The procedure of appeal to the High Court has been changed. Now, instead
of filing appeal, the aggrieved person, including Sales Tax Department shall
make a reference to the High Court, stating therein the points of law arising
out of the decision of Appellate Tribunal against which an appeal is intended
to be filed. Special forms for filing such references have been prescribed vide
Notification SRO 524(I)/2005, dated 06.06.2005. In view of the amendments
made in section 46 of the Sales Tax Act, 1990, instead of Collectors, any