8th floor, Vikrikar Bhavan,
Mazgaon, Mumbai-10




Circular No.14-T of 2007, Mumbai,dt. 08.02.2007

Sub : Grant of Provisional Refund.

Ref : (1) Trade Circular No 4T of 2007 dt.12.01.2007.

(2) Trade Circular No.10-T of 2007 dt.05.02.2007.


This office had earlier issued above referred two Circulars for grant of provisional refund.  The refund under these Circulars is admissible to those dealers who have filed return for any earlier period on or before 31.12.2006. In the trade circular dt.12.01.2007, it is mentioned that in order to be eligible for refund, the returns must have been filed before 31.12.2006 and an application in Form-501 should have been or should be filed on or before 31.01.2007.  The date for filing of Form-501 has been extended up to the 28.02.2007 by the circular dt.05.02.2007 in respect of those dealers who have filed the original return before 31.12.2006 but the fresh return or revised return is filed after 31.12.2006.

02. After considering the demand from the trade, it is now decided to extend the date of filing of Form-501 up to 20.02.2007 in respect of those dealers who were required to file the Form-501 till 31.01.2007.  It is needless to say that, this date is extended only for those dealers who have filed the returns on or before 31.12.2006.

03. In para 3 of Trade Circular No.10-T of 2007 dt.05.02.2007 it is mentioned that in case of Units holding the Certificates of Entitlement (C.O.E.) under P.S.I. under exemption mode, the liability due to non-receipt of C.S.T. declarations should be considered while computing the CQB  benefit and the VAT refund to be granted accordingly. This was an inadvertent mistake. If the inter-State sales made by the exempted units are not supported by the declaration in Form ‘C’ or ‘D’ then it will be necessary for such Units to pay tax at the rate of 10 percent or at the appropriate higher rate, as the case may be, for the goods sold in the course of inter-State trade. Thus, the exempted units are required to make actual payment of C.S.T. liability due to non-production of declarations and such liability should not be considered for calculation of Cumulative Quantum of Benefit (CQB) availed of by the Eligible Units. This point was already explained in the trade circular No.22-T of 2002 dt.20.07.2002. Thus, the instructions issued in this regard in the Trade Circular No.10-T of 2007 dt.05.02.2007 are to that extent hereby withdrawn.

04. 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.

05. You are requested to bring the contents of this circular to the notice of the members of your association.

Yours faithfully,

Commissioner of Sales Tax,
Maharashtra State, Mumbai.

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