CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 25, 2016
CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 25, 2016
Delhi VAT officers cannot collect any amount during survey proceedings
Recently on 14th March 2016, in the case of Gullu’s v. Commissioner, Trade & Taxes ((2016)67 247 (Delhi)) the petitioner filed a writ petition to the Delhi High Court, wherein the Honble Court ordered the Commissioner of Trade and Taxes (CTT) to issue instructions and make it clear in the instruction itself that it is not permissible for an officer of the Department of Trade and Taxes (DT&T) to collect cheque or cash at the time of survey, inspection or sealing proceedings under threat of sealing the premises under Section 60 of the DVAT Act.
Further, the instructions shall also clarify the officers of the DT&T that under no circumstances will any officer of the DT&T, who is part of a team or individually tasked with the responsibility of the carrying out a survey or inspection or any sealing, collect any amount by way of any alleged tax dues or security or surety against tax dues either by cheque or cash from any dealer at the time of such survey, inspection or sealing proceedings.
Moreover, even where a dealer comes forward ‘voluntarily’ to deposit such cheque or cash towards tax dues at the time of such survey or inspection or sealing, the officers of the DT&T will decline to receive such cheque or cash and advise the dealer to make the payment only in the modes permitted in terms of the DVAT Act and DVAT Rules and at the places/counters designated for that purpose.
REGARDS
INDIA FINANCIAL CONSULTANCY PRIVATE LIMTED
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