February 2007 - STR — Important Trade Circulars

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Sales Tax Review

February 2007

Important Trade Circulars

No.VAT/Refund/MIA-10-07/Adm-5/3

Cir. No. 10T of 2007	Mumbai dt: 05/02/2007

Sub:	Refund (Corrigendum to Trade Circular 4 T of 2007)
Ref :	Trade Circular No. 4T of 2007 dt. 12.01.2007.

Gentlemen /Sir /Madam,

In the Trade Circular No. 4T of 2007 dt. 12/1/2007, in para 2(i), it is mentioned that refund under this circular is admissible to only those dealers who have filed the return for any earlier period on or before 31^st December 2006. It is now clarified that the refund under this circular can be granted to those dealers also who have filed the return before 31^st December, 2006 and the fresh return or revised return is filed after 31^st December, 2006. However, such dealers should now file the Form-501 to the concerned refund authority on or before 28th February, 2007.
For Para No. 5(c) of the Trade Circular 4T of 2007, the following should be read:-

“There could be cases wherein refund cannot be granted only because all or some of the declarations under the CST Act for any period are not received. Now such cases after adjusting the CST payable as per the Central Sales Tax Act, 1956 in respect of all such unreceived declarations, refund shall be granted as per the conditions mentioned in Para 5(a), 5(b), 5(d), 5(e) or 5(f) of the Trade Circular No. 4T of 2007 as the case may be, without the pre-condition of refund audit. Needless to say that the dealer will have to submit a statement of declarations received and not received along with Form-501.”
In case of units holding the certificate of entitlement (C.O.E.) under P.S.I. under exemption mode, the liability due to non-receipt of CST declaration should be considered while computing the CQB benefit and the VAT refund to be granted accordingly. In case of deferral unit, the dues arising due to non-submission of CST declarations should be deferred as per rule 81 of the Maharashtra Value Added Tax Rules, 2005.
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,

(B.C. Khatua)
Commissioner of Sales Tax,
Maharashtra State, Mumbai.