harrasment by sale tax department
Querist :
Anonymous
(Querist) 01 January 2011
This query is : Resolved
i am a businessman and i deals in hardware goods and mainly doing interstate sales from punjab to uttaranchal and we done all our business in 1 number and our bill is also very high in amount but when it crossed on the barriers the sale tax deptt stops it and said the bill is undervalued and ask for settlement and imposed a very heavy penalty what is the benefit to us for paying lot amount of taxes if we again has to pass through these things. what can we do in this matter
please favour me and reply me
SANJAY GUPTA
(Expert) 02 January 2011
agree with Mr.Bhagat file appeal before the concerned authority for the same.
Kirti Kar Tripathi
(Expert) 02 January 2011
in case is forum of appeal is available, file appeal otherwise approach to High Court.
H.M.Patnaik
(Expert) 03 January 2011
It is understood your's is a establishment duly regd. under the CST act and the goods are accompanied by Deptt. issued Transit Permit( Way Bills )as well as bill & challans. If the border checkpost has charged addl. amount of taxes over and what is charged on the bill on the ground of undervaluation, they are to raise an order of assessment & Demand notice at their level on the basis of which , tax has to be deposited . You can immediately, file a Revision petition before the Commissioner of Sales Tax of Punjab against the arbitrary demand which is taken up for hearing on expeditious basis to avoid indefinite detention of the goods . If you are still dissatisfied with the order passed by that forum, you can go ahead for seeking relief from the local Highcourt. If you are a manufacturer / processor, in order to prove that goods are properly valued , you have to produce evidence regarding cost of Rawmaterial, consumables etc. that go into production of the finished goods and in case you are a trader you have to show purchase / acquisition cost including storage and carrying cost as per terms of sale .
AMIT BAJAJ ADVOCATE
(Expert) 05 January 2011
To levy tax on the barrier u/s 51(6) of PVAT Act on the ground of under valuation, it must be proved based upon some relevant material that goods in question were undervalued.
Any blind levy of tax without evidence will be quashed by the appellatte authorities.
Filling appeal is best option available once the tax has been levied.
PARVEZ RAFIQUE SHEKHANI
(Expert) 08 January 2011
Sir,
Next time when it happens, record the undertable settlement proceeding by some hiden camera and submit such recording with written complains to higher authorities as well as news chanels and also to anti-corruption department.
