Proposal for Maharashtra VAT Amnesty Scheme by BJP CA Cell, Mumbai
Shri Devendta Fadnavis ji
Hon’ble Dy Chief Minister of Maharashtra (Finance portfolio)
May It Please your Honor
Sub: VAT Amnesty
The erstwhile MVA Government had announced the Amnesty Scheme for waiver of tax, interest and penalty payable under the MVAT and allied laws and the period was from 01/04/2022 to 30/09/2022.
However, It did not contain the much needed benefit of partial withdrawal of the appeal as well as unassisted pending dues except dues as per returns filed up to 31/03/2022.
In 2019 the Government had given such an option as a result thereof the large number of persons had opted the benefit of it.
But the said benefit was available to any order including appeal pending or not as on 31/03/2022 passed during the period of scheme.
The department was not ready with the portal as such the portal was started from May 2022 and the courtesy letters and intimation of dues to the taxpayers about pending dues started thereafter. Therefore, the taxpayers were required to get their pending assessments and appeal decided during the period of scheme so that they can take the benefit of the scheme on modified demands.
The Department issued instructions to the taxpayers to get their orders passed during the period of scheme.
Due to following reasons the large number of eligible cases are pending in appeal and in less than 15 days it is not possible for them to take the benefit of the scheme although otherwise eligible.
- During the lockdown periods, large numbers of cases were passed ex parte creating huge demand and the order was not served physically but on The taxpayers did not know about it so they cannot file necessary appeals.
- The appeal under the act was to be filed by making 10% payment and the constitutional validity of the provision was pending before the Larger Bench of Bombay High Court. The High Court gave its verdict only in the month of July As a result of this large number of appeals could not be filed and take the benefit of the amnesty.
- Large number of cases is pending in the tribunal since lockdown. For want of appointment of members, the tribunal was defunct and not many cases could be taken up for hearing. Even today only two technical members are available against the sanctioned strength of 7.
- The department proposed the restructuring of the department to increase the number of officers to the Government long back, but still it was not approved. As a result thereof number of Appellate posts were vacant. Considering the number of appeals pending it was expected to fill the posts and create new posts for the disposal of appeals in the period of scheme so that a large number of deserved cases can take benefit of it. This is not done and is much required.
- The department from time to time issued instructions to the appellate authorities to dispose first the old cases as a result thereof the appellate authorities are not taking the hearing of other cases of taxpayers who wanted to take the
- Same is the situation of High Courts and SC where for want of regular benches hearing of appeals are not taken up and large number of cases are pending involving significant
- It may be noted that trade and professionals had made representation to allow the benefit of partial withdrawal of appeal in the month of April 2022 had it been considered at that time then the large number of taxpayers would have taken benefit of it. This type of benefit was available in 2019.
A. There is a benefit to government also because Maharashtra government can get huge revenue from the extension of MVAt amnesty scheme up to 31-07-2023.
B. Approximately government will get 50000 crores from the extension of MVAT amnesty scheme.
C. Original MVAT dues recovery will be paid by the tax payers and business community will get benefit of interest and penalty.
There are benefit of taxpayers and government also.
Considering the overall situation we feel that it is a right time to extend the benefit of scheme to 31/03/23 which will help the department to clear all pending vat matters and allow the sufficient time and opportunity to the eligible persons to avail the benefit of the scheme.
CA Shailesh R Ghedia Adv C B Thakkar
BJP Professionl Cell, Mumbai
M: 9869437888 (Ex President:GSTPAM)
CA Manish Gadia CA Janak Waghani
Vice President secry (ex editor:GST journal )
(Ex chairman: WIRC of ICAI)