Trade Cir. No. 12.T of 2012
Sub : Automatic cancellation of Unilateral Assessment Order.
Ref.: Sub-section (1) of section 23 of the MVAT Act, 2002.
Gentlemen / Sir / Madam,
Section 23 of the Maharashtra Value Added Tax Act, 2002 provides for assessment in certain circumstances. Sub-section (1) of section 23 provides for Uni-lateral assessment [“UAO” in short] for failure to file return within prescribed time. Sub-section (1) mandates assessment without service of notice and also without providing opportunity of being heard, the purpose of which is effectuating timely riling of return and also timely and effective pursuance of the return non-filer.
1. PRESENT PROCEDURE FOLLOWED FOR PASSING AND CANCELLATION OF UAO:-
(1) In the event of failure to file return, the assessing authority undertakes the assessment in respect of the period under default. The assessment order is passed in Form-303.
(2) At present, after service of the assessment order along with the demand notice, the dealer after receipt of the said order, files the return, makes the payment of tax due as per return, if any. Thereafter, the dealer submits the evidence in respect of filing of return and payment of tax due as per return and makes an application in Form-304 so as to cancel the UAO. On receipt of said application the concerned authority verifies the correctness of the application. If the application is found in order then it is mandatory for the assessing authority to cancel UAO so passed.
2. NEW PROCEDURE TO BE FOLLOWED FOR PASSING AND CANCELLATION OF UAO:-
(1) The new system of automatic cancellation of UAO shall be applicable with effect from 1st August 2012.
(2) With effect from 1st August 2012, assessing authority shall pass an UAO only through MAHAVIKAS.
(3) MAHAVIKAS will automatically ascertain the return filing status for a particular period and in respect of a particular dealer vis-a-vis UAO. If, after mapping requisite criteria, it is noticed that the dealer has filed the return in respect of a particular period under UAO, then the MAHAVIKAS shall cancel the order of assessment so passed. There will be no need for the dealer to make an application in Form-304. As explained above, it will not be necessary to pass separate order for cancellation of UAO. An e-mail will be sent to the dealers e-mail ID provided by the Sales Tax Department. This e-mail will give information about the cancellation of UAO, The dealer may also access his e-mail at <Your mail> menu at departments web-site.
(4) In order to give effect to the above procedure some changes will be required in MVAT Act, 2002 and rules made thereunder. The same is being proposed to the Finance Department. However, till such time the Govt. carries the necessary changes, it has been administratively decided to implement the aforesaid procedure.
2. If any member of the trade has any doubt, he may refer the matter to this office for further clarification or may contact the Help Desk.
3. You are requested to bring contents of this circular to the notice of the members of your association.
Commissioner of Sales Tax,
Maharashtra State, Mumbai