Office of the Commissioner of Sales Tax Vikrikar Bhavan, 8th floor, Room No. 831, Mazgaon. Mumbai 400 010.
TRADE CIRCULAR No.VAT/MMB-1009/31/Adm-6
Trade Cir. No.13 T of 2011, Mumbai, Dt. 30/08/2011
Trade Circular No. 33T of 2007 dt. 18th April 2007.
Trade Circular No. 68T of 2007 dt. 26th November 2007.
Trade Circular No. 37T of 2008 dt. 21st October 2008.
Trade Circular No. 36T of 2009 dt. 24th December 2009.
The eligibility criteria, conditions and procedure for application of administrative relief on account of the delay in obtaining the certificate of registration have been laid down by the above referred Trade Circulars.
2. Para 2(a) of the Trade Circular 33T of 2007 dated 18th April 2007 lays down the limit of delay beyond which applications for administrative relief would not be considered. It was provided thus :
“2(a) In supersession of all previous instructions in this behalf, now it has been decided that the delay in obtaining certificate of registration beyond 5 years shall be treated as an attempt to evade or to delay the payment of legitimate tax. The dealers who have remained unregistered for a period exceeding 5 years shall not be entitled to get any Administrative Relief.”
The instructions in the above para are now modified as follows:-
“2(a) In supersession of all previous instructions in this behalf,–now it has been decided that the delay in obtaining certificate of registration beyond 5 years shall normally be treated as an attempt to evade or to delay the payment of legitimate tax. While, attempt to evade tax in no case entitles a dealer for administrative relief; in cases of delay in obtaining the certificate of registration beyond 5 years, if the claimant dealer proves that the delay was not due to negligence or disregard of the provisions of law but due to bonafide belief that he was not required to obtain the registration, and in general, the dealers similarly situated as him have not obtained the certificate of registration, then such an exceptional case may be considered for grant of administrative relief inspite of the delay being beyond 5 years.
For this, the circumstances for delay should be carefully examined and where the dealer has proved to the authority that the delay was not as an attempt to evade payment of tax or to cause loss of revenue to the Government, the authority, with reasons to be recorded in writing, may extend the benefit of administrative relief in such cases of delay beyond 5 years. The composition amount in all such cases of delay beyond 5 years shall be as per Category ‘B’ of the office order dated 18.4.2007.”
3. This circular cannot be made use of for legal interpretation of provisions of law, as it is clarificatory in nature. If any member of the Trade has any doubt, he may refer the matter to this office for further clarification.
4. You are requested to bring the contents of this circular to the notice of all concerned. Yours faithfully,
(SANJAY BHATIA) Commissioner of Sales Tax Maharashtra State, Mumbai.
Trade Cir. No.13 T of 2011