Tax Bar Association, Jodhpur has made a representation on Issues in Processing of Rectification Application, Service of Order of Rectification, Summary Rejection of Rectification Application and Pendency of ITC Mismatch. Representation is been made on 26th June 2021 to Deputy Commissioner (Administration), Jodhpur. Full text of the representation is as follows:-

JODHPUR (Rajasthan)

CA.Rakesh Bhandari
R. Bhandari & Co.
Near Shanti Tower, Jalori
Gate Bari
Mobile : 98290-26549
Email:[email protected]
CA. Manoj Gupta
16, Imertiya Bera
Paota C Road,
Mobile : 98285-10543
E-mail: [email protected]

Date: 26th June 2021

Deputy Commissioner (Administration).

Hon’ble Sir,

Greetings of the Day!

Sub: Issues in Processing of Rectification Application, Service of Order of Rectification, Summary Rejection of Rectification Application and Pendency of ITC Mismatch

Dear Sir,

As your goodself is aware that VAT Amnesty scheme is going on. We all are committed to make it a success and to settle the past issues and the intention of the representation is to evolve a system wherein rectification applications and ITC Mismatch applications are processed in a regularized manner with orders being served properly.

The department was fully functional in Covid-19 Lockdown and the officials were one of front line workers during that phase, however the offices of the taxpayers and the businesses were closed during that period. Now since the department was working, all the demands howsoever correct or wrong they were uploaded in the system and the 10 days from the last date pf phase I were completed. Now after completion of the lockdown, when the taxpayers are observing the demands, they are observing that either rectifications applications were not processed and even if processed they were not uploaded in the system or rectification applications were processed incorrectly. Now if they using the revert option, they are being transferred to the next phase and this will not happen only in the first phase of the Amnesty Scheme, this will be norm in the IInd Phase and the last Phase as well if not taken care of.

1. Issues regarding processing of Rectification Application and Service of orders thereof-Processing of Rectification applications giving proper opportunity of hearing and communication of the order therein is the biggest challenge. It seems that the present practice is either disposing off the rectification application by rejecting it or even if the order is passed, no opportunity of hearing is given and further non-service of rectification order is norm rather than exception. Much time is being lost in search of assessment and processing of rectification order and in many cases even the rectification order are not traceable.

Rajasthan VAT

2. Effort should be to dispose of the Rectification Application following principle of Natural Justice rather than Nil Pendency on the system-That, there are no applications pending in the system should not be the only target which the department should sought to achieve. The aim should be disposing off the rectification application by following principle of natural justice. A statistic needs to be collected by the department regarding how many applications were rejected, or passed with orders and how many order were served upon the taxpayer. The result will lead to a better and transparent functioning for all the stakeholders of the system. This is leading to multiplicity of the action and wastage of efforts of Taxpayers, Professionals and Officials.

3. Lapses in processing of Rectification Applications and ITC Mismatch Application is the biggest hindrance in success of Amnesty Scheme-Amnesty Scheme was launched with much Fanfare in February 2021. The result is yet to achieve the desired result as the people who have to deposit amount under amnesty scheme are facing many issues before arriving at the final amount. There mismatch applications are pending, rectifications have either rejected summarily or partially without order being served and searching the orders in the department has itself become a herculean task. Further due to Lockdown in various States has hampered the taxpayers in receiving the Declaration Forms.

4. Taxpayers being made to face the brunt of higher slab with no fault of theirs with incorrect demand being uploaded due to pendency of rectification, mismatch applications or incorrect category of demand being uploaded- The Taxpayers are being juggled between the various phases with no fault of them. They are being made to face the brunt of higher slab in the Amnesty Scheme due to final amount not being crystallized. If a mismatch application is pending or the demand uploaded in the system in phase I is incorrect and the taxpayer has to file the revert option, it’s not the fault of the taxpayer that he has been shifted to IInd Phase. The applications are pending at head office for their disposal for correct interpretation of the scheme.

In many cases, the challan paid is not reflecting in the system and that’s why the assesse is not able to file the Form on the Portal.

That, it is humbly brought to your kind attention and it is highlighted that this is resulting in gross injustice with the taxpayers and needs to be addressed immediately.

Kindly consider the above issue and provide appropriate relief.

Yours Faithfully,
A Definite Partner in Nation Building

Tax Bar Association, Jodhpur

(CA. Rakesh Bhandari)  

(CA. Manoj Gupta)

Download Full Text of representation in PDF


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October 2021