20th June, 2007

The Commissioner of Sales Tax

Maharashtra State, Room No. 829,

Mumbai - 400 010

Sub. : On-line issue of C.S.T. Declaration.

Ref. : Trade Cir. No. 44T of 2007.

Kindly refer to the above Circular dated 14th June, 2007. It appears that the Scheme is nice and workable.

However, the common problem faced by big public limited companies are not at all solved.

There are several public limited companies in Maharashtra who have got several places of business in Maharashtra and are trading in different trade names. Though the company is one-but it is running several factories in different names and manufacturing different commodities. Right from the day one we have been representing that these units should be allowed to file separate Returns as it was there under the Bombay Sales Tax Act, 1959.

In response to the representations made Act and Rules both have been amended, applications in Form-211 have been made but no decision has been take so far.

However, the problem of obtaining declarations in "C" Form is more serious then filling of the Returns.

An unit in Vidharbha is asked to obtain "C" Form from Mumbai as H.O. is at Mumbai - now the Vidharbha Unit-Pune Unit - Jalgaon Unit and Kalyan Unit all together have to send their list to Mumbai - Mumbai office has to consolidate the same - apply here - and then obtain and send separately to each unit and then the problem of trading in different names arises, because Mumbai Central Re-depository Grants "C" Form in the name of Company only.

May I, therefore, request you to kindly discuss the issue with Trade Associations or individually with those who have difficulty and take a decision.

Thanking you,

With Warmest Regards,

Yours sincerely,
(Mahabirprasad S. Deora)
Authorised representative

Date : 5-7-2007

To,
The Joint Commissioner of Sales Tax (Adm)
Amravati Division, Amravati

Respected Sir,

Reg :— Non availability Declaration forms & Statutory forms

This is to bring to your kind notice that the declaration form "C" is not available with the Sales Tax Officer, Akola since last more than a month.

It is humbly requested that the said forms be kindly made available immediately and oblige.

Further number of statutory forms such as Appeal Memo, Application for Cancellation, C.S.T. Returns III B, Application for Declaration etc. etc. are not yet made available which was brought to your kind notice from time to time earlier. Also kindly arrange to make available all the prescribed forms at the Sales Tax Office, Akola at the earliest and oblige.

Thanking you,

Yours sincerely,

(Girish R. Dhabalia)
Secretary

Date : 5-7-2007

To,
The Commissioner of Sales Tax,
(M.S.) Mumbai

Respected Sir,

This is to bring to your kind notice that the challan for Profession Tax
for 2007-08 are not received till todate in spite of the fact that the due date is
over.

It is humbly requested to kindly arrange to send the challans to the tax-payers and the due date be kindly extended to 30-9-2007.

Kindly do the needful and oblige.

Thanking you,

Yours sincerely,

(Girish R. Dhabalia)
Secretary

17-7-2007

To,

The Commissioner of Sales Tax

Maharashtra State, Mumbai.

Dear Sir,

URGENT

In case of refund proceedings, the Department can ask for Bank Guarantee. The format of Bank Guarantee is given along with Trade Circular No.33T of 2005 dt. 21-10-2005.

The copy of said format is enclosed herewith for ready reference.

We draw kind attention of your goodself to para 6 of the Bank Guarantee. Though in earlier part of said para the Guarantee is restricted to 37 months by putting particular expiry date, the further part of the said para is not in tune with the said earlier part. The later part is contrary to the earlier part and reads as under (underlined portion).

6. "We, the Bank, further agree that the guarantee herein contained shall remain in full force and effect during the period that would be taken for the Authorities to decide whether the Obligator is eligible for a refund and that it shall continue to be enforceable till all the claims are satisfied or discharged or till __/__/200__ or till the ………………………………………..(name the authority and their full address ), certifies that the issue relating to the refund has been sorted out completely and accordingly can discharge this guarantee. We undertake to renew this Bank Guarantee on our own till the aforesaid purpose for which this Bank Guarantee is being given is fully discharged by the ……………………… (Mention the appropriate authority)

(underlining ours)

Due to above wording the bank liability gets extended indefinitely and that also on its own. No bank can take such responsibility and the banks are reluctant to issue such bank Guarantees. We can produce before your goodself the copy of Bank Guarantee issued by UCO Bank which has removed the said later part of para 6. The Department authorities are not ready to accept this modified bank Guarantee unless the Bank Guarantee from itself is amended.

As per Rule 61 of MVAT Rules also the maximum period for bank guarantee can be 36 months. The above later portion is also, thus, contrary to above Rule as it extends the time beyond 36 months.

Considering above we request to amend above Bank Guarantee format at the earliest. Our client’s refund application is pending due to above problem. We request for the necessary action at the earliest.

We will provide any further information on hearing from your good office.

Thanking you,

Yours faithfully,

C. B. THAKAR

Date: 16-7-2007

To,

The Commissioner of Sales Tax,

Maharashtra State, Mumbai.

Dear Sir,

Ref: Pending amendment in Revision/Rectification provisions under BST Act, 1959

We refer to our earlier letter dated 16.-1-2007 (copy enclosed). By this letter we have already pointed out the difficulties faced by dealer in respect of revision/ rectifications in view of judgment of Bombay High Court in case of Shiv Shyam Sales Enterprises [34 MTJ 544]. It was therefore submitted to make necessary changes at the earliest. However till today nothing of said sort is done nor any clarification about future course of action is given.

We bring to your kind notice the recent judgment of Hon'ble M.S.T. Tribunal in case of Borosil Glass Works Ltd. (R.A.26 of 2002 dt.28-6-2007) (Copy enclosed) wherein the Hon'ble Tribunal has dismissed rectification as not maintainable on account of delay in passing of order. We feel that the dealers will be suffers because of inaction on part of Government though we are time and again assured of necessary action. A reference can be made to Service Cell Minutes dated 2-3-2007 wherein at point 27 it is mentioned that necessary steps are being taken.

In view of the course of action being adopted by the appellate authorities, we suggest for following steps at the earliest.

1. A Trade Circular about steps being taken to remedy the situation created by High Court judgment in above case be clarified and the appellate authorities be requested to keep such matters pending till such necessary changes are effected in the Act.
    

2. The steps required to be taken to amend the position, both, in relation to Rectification/Revision be taken up at the earliest.

We hope your goodself will appreciate the urgency of the matters and will do needful in the matter.

Thanking you,