TRADE CIRCULAR

Date: 11/04/2011

No.VAT/Refund/ACST VAT 1/B-437

Trade Circular 5T of 2011

Grant Of Refunds against Bank Guarantee

Ref.:- 1) Trade Circular 22T of 2010 dated 05.10.2010

Gentlemen/Sir/Madam,

Background:

A Trade Circular 22T of 2010 was issued in supersession of all earlier Circulars relating to grant of refund. This Circular explained in detail the procedure for grant of refunds. Fresh instructions were given as the process for grant of refunds was substantially changed due to automation of the entire process of refunds. The manual cross checking of the transaction by sending the inspectors has been discontinued and the electronic cross checking has been started.

Part B of the said circular is related with granting of Refunds against Bank Guarantee. It is mentioned in para (g) of the said trade circular that refunds against bank guarantee will be granted till the due date of furnishing of audit Form 704. It is also mentioned that the subsequent refunds against bank guarantee shall be granted only after completing the refund audit of the financial year to which Form 704 pertains.

The said condition stands deleted in view of the representations from the trade. The above instructions are being modified as follows. “The refunds against bank guarantee shall be granted any time for any period even after the due date of filing of audit form 704 is over. The condition of refund audit of previous period and major discrepancy will not be applicable in the bank guarantee cases.”

It may be noted that after granting the refund against bank guarantee, if the refund audit officer notices that the deafer Is avoiding/ delaying the process of refund audit then the concerned Joint Commissioner shall encash the bank guarantee submitted by the dealer Immediately.

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

Yours faithfully,

(Sanjay Bhatia)

Commissioner if Sales Tax

Maharashtra State, Mumbai

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Category : Goods and Services Tax (6272)
Type : Circulars (7679) Notifications/Circulars (31386)
Tags : MVAT (793)

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