Sales Tax Instructions

Sales Tax Instructions, 2009
C. NO.1/1-COORD/2000 DATED 7 TH FEBRUARY, 2000
SUBJECT:- REVIEW OF ALL CASES PENDING SINCE BEFORE 31.05.1999
INVOLVING DEMAND OF TAX LIABILITY ALONGWITH
ADDITIONAL TAX & PENALTY
In a series of meetings in January, 2000 held by FPCCI with CBR and
subsequently in a meeting with the Minister for Finance, it was pointed out by FPCCI
that despite the announcement of various amnesty schemes by the government, (whether
with complete or partial waiver of additional tax/penalty), there were several cases in
which the parties against whom such liability is claimed by the department, the taxpayers
did not avail of the amnesty. The FPCCI was of the view that obviously in such cases as
were outstanding as per the Sales tax department since before 31.05.1999, the concerned
taxpayers did not opt to avail the opportunity on the ground that the very question of the
principal liability was either unresolved or was not acceptable on grounds of equity and
fair play.
2. Such amnesty notifications were issued by the CBR in May 1998, June
1998, July 1998, April 1999 (full exemption of additional tax & penalty) and in June
1999 and again in December 1999 (respectively with 80% and 75% exemption of
additional tax and penalty).
3. In a final meeting of the FPCCI with the Finance Minister on
22.01.2000, it was decided as under:-
(i)
(ii)
(iii)
(iv)
All Collectors would compile list of such cases pending since before
31.05.1999 wherein taxpayer did not avail all or any of the amnesty
schemes. The particulars of the cases included in the lists should be; brief
facts of the case, date since when principal amount is outstanding, initial
order, appeal order etc., principal amount, additional tax, penalty etc.,
present status (pending in Appeal, Tribunal, High Court, etc). In the
remarks column Collectors should briefly give views on each case
whether the case merits any review at all or the same is of a type where
recovery action should proceed as per rules.
The FPCCI would also get a positive list made through its own
resources.
The lists so compiled will be reviewed by the CBR for a final
decision/dispensation before 30.06.2000. The avenues for finalizing such
cases would include: expediting adjudication/appeal matters where
pending; requesting the Tribunal to expedite decision if matter is pending
at that end; review the cases for rectifying any obvious inequity or
miscarriage of justice, etc. For each case, a decision will be taken
individually regarding the extent of waiver of additional tax and penalty.
In the meantime, the Collectors are directed to withhold all action for
recovery for the principal amount, additional tax, penalty etc., involved
in the specific cases falling in the category explained at Para 1 above.
Utmost care should be taken by Collectors personally to ensure that this