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Weak financial position

     In the case of Sahil Trading Company, Amritsar v State of Punjab, in appeal No.186 of 2017, decided on 4.9.2017, Tribunal accepted the request of assessee for depositing sum of Rs. 25000/- in lumpsum within one month and directed the autorities for hearing on its depositing....

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Weak financial position

   In the case of Dhingra Rice and General Mills, Amritsar v State of Punjab, in appeal No. 85 of 2017, decided on 31.8.2017, Tribunal accepted the request of assessee to deposit sum of Rs. 10 lakhs in lumpsun within two months and directed the authorities for hearing on its depositing....

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Weak financial position

     In the case of B.G. International Pvt. Ltd. Amritsar V State of Punjab , in appeal No.62 of 2017 , decided on 8.8.2017, Tribunal keeping in view the financial position , allowed the assessee to deposit sum of Rs.13,39,772/- out of the demand of Rs. One Crore, in lumpsum within two months, so as to be heard on merits....

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Article on Prosecution under GST Act,2016

Nature and Scope of Prosecution under GST Act.   … Dr. Naveen Rattan, Advocate.     Amritsar Every rational being will readily agree that Laws are meant for strict compliance. Such compliance is ensured by those for whom such laws are meant for. An enactment and enforcement of laws are extremely significant. If the enforcement is ineffective then the very purpose of enactment stands defeated. The legislature is well aware of the fact that some of the persons, in a society have strong tendency to break the law for their vested interests. Therefore, strong need arises to incorporate the provisions of penalty and prosecution to control evasion of tax and strict compliance of the law. In fact, the principle object of the penalty and prosecution as observed by the High Court in Bharat Plywood Production Private Ltd. V. Commissioner of Sales Tax, UP, STI 1989 All HC 446, is         “Its principal object is to work as a deterrent against recurrence of a default on the part of the assesses or the person concerned. Its consequences are intended to have effective detriment which will put a stop to the practices which the Legislature considered to be against the public interest.” Under the Model of...

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An essay on Advance Ruling in GST, 2016

An Essay on Advance Ruling under GST Act, 2016. By Dr. Naveen Rattan, Karan Rattan Recently, Lok Sabha has passed 122nd constitutional amendment (GST) Bill as amended by the Rajya Sabha. It is basically a single tax on the supply of goods and services right from the manufacturer to the consumer. Undoubtedly credits of input taxes paid at each stage will be available in subsequent stage of value addition. Final consumer will thus have to bear only GST charged by the last dealer in supply chain. Set off benefits at all previous stages shall also be available under the GST Act, 2016. Presently more than 150 countries have adopted the GST and India has adopted it in year 2016. GST Act is claimed essentionally as a major reform in the field of indirect taxation. Though the Act is comprehensive, elaborated and is unambiguous yet it cannot be said with high degree of certainty that its implementation will be easy and free from complications. The prospective tax payers may not be certain and clear about the taxability of goods and services under the GST Act, admissibility of Input Tax Credit and applicability of notifications under provisions of the Act etc. Under such circumstances strong...

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Article on E-Filling of Returns

E-FILING OF RETURNS UNDER PUNJAB VALUE ADDED TAX ACT, 2005. Dr.Naveen Rattan, Advocate, Amritsar.           Filing of returns is a statutory requirement of the law. The Hon’ble Supreme Court has held in the case of Khazan Chand v State of J&K(1984)56 STC 241(All.), that every dealer making sales or purchases of goods is statutory bound to pay the tax due whether or not the same is collected by him. The profit criterion is also not a relevant consideration for filing the return. The dealer is statutory obliged to file the return even if he may be sustaining losses in the business. The return can be filed even without the payment of tax. The Allahabad High Court has held in the case of State Trading Corporation v Sheo Nath Raj Kanhaiya Lal(1973)32 STC 436(All.), that if return is filed and the tax is not paid, the return does not become in valid. However, the assessee can be penalized for not paying the tax along with the return under the relevant section. Moreover, what is required under the Act is to file a correct and a complete return. Truncated return cannot be regarded as furnishing of the correct return. Return must disclose the amount of...

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Article on E-Filling of Returns

E-FILING OF RETURNS UNDER PUNJAB VALUE ADDED TAX ACT, 2005. Dr.Naveen Rattan, Advocate, Amritsar.           Filing of returns is a statutory requirement of the law. The Hon’ble Supreme Court has held in the case of Khazan Chand v State of J&K(1984)56 STC 241(All.), that every dealer making sales or purchases of goods is statutory bound to pay the tax due whether or not the same is collected by him. The profit criterion is also not a relevant consideration for filing the return. The dealer is statutory obliged to file the return even if he may be sustaining losses in the business. The return can be filed even without the payment of tax. The Allahabad High Court has held in the case of State Trading Corporation v Sheo Nath Raj Kanhaiya Lal(1973)32 STC 436(All.), that if return is filed and the tax is not paid, the return does not become in valid. However, the assessee can be penalized for not paying the tax along with the return under the relevant section. Moreover, what is required under the Act is to file a correct and a complete return. Truncated return cannot be regarded as furnishing of the correct return. Return must disclose the amount of...

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Article on Survey

Summery of Survey Act Under Punjab Value Added Tax.    Importance of Survey :                       Survey is an essentially effective tool for bringing all the relevant information relating to the business of unregistered person on record to unearth the evasion of Value Added Tax. Through survey the department not only collects tax and penalty to meet objectives of taxation but also discourages tax evasion and on the basis of survey an optimum tax policy and strategy can be formulated by the State machinery. The success of survey largely depends on the present machinery  which the department holds for handling survey operations. Apart from this, survey will be useful only, if information gathered and collected during survey is properly utilised by the administrative authority. It is significant that administrative authorities must conduct survey operations strictly in accordance with the provisions of Punjab Value Added Tax Act, 2005 or otherwise the reports and findings of survey will be nullity in the eyes of law if an appeal is filed against such survey before the legal forum and any order passed on the basis of the survey shall be quashed.              The provision relating to survey has been incorporated u/s 48 of the Punjab Value Added...

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Article on R. C.

REASONABLE OPPORTUNITY OF BEING HEARD UNDER THE SALES TAX LAWS The doctrine of “Audi Alteram Partem” is one of the strongest principles of natural justice. The doctrine enjoins that no person should be condemned without a hearing and it requires that no person shall be saddled with a liability without having been heard. When any orders are passed by any judicial, quassi – judicial or sometimes even by administrative authority behind the back of the person adversely affected thereby without affording him a reasonable opportunity of meeting the case against him, the doctrine is violated. Any orders of revenue an authority imposing a penalty obviously saddles the person with a liability and affects him adversely. The natural justice therefore requires that he is afforded a reasonable opportunity of being heard before a penalty imposed. This doctrine is incorporated in all the statutory provisions governing the imposition of penalties under all fiscal statutes. But even in absence of specific statutory provision to this effect, the courts have held that any order passed in violation of the principle of Audi Alteram Partem would be bad in law. The Kerala High Court in case of Commissioner of Agroculture Income Tax vs. Smt. P.Parukutti Amma (1976)...

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Article on VAT

An Outlook of Value Added Tax System            The Punjab Government has categorically declared its intention to implement Value Added Tax w.e.f. 1st April 2005. Presently the provisions relating sale and purchase within the State of Punjab are governed by the Punjab General Sales Tax Act, 1948 and Punjab General Sales Tax Rules, 1949. The Punjab Government has prepared a Punjab VAT Ordinance, 2005, which shall come into force on such date, which will be notified by the government of Punjab in the Official Gazette. It is preferred to the existing tax system because the present system is of orchaic and irrational and is complex in the world. Free play of market forces and competition are hindered, economic distortion, high cost of compliance and administration are its main shortcomings. However, on contrary VAT reduces economic distortions, controls tax evasion and brings greater fairness and uniformly in the tax system. Its proper designing and effective implementation will not only yield government revenue but also bring a tax system which will be conducive to economic growth and development. Value Added Tax: Value Added Tax belongs to the family of the sales tax. VAT is a tax not on the total value...

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