My client registered under The Gujarat Value Added Tax Act, 2003. VAT Assessment completed for the period from April.2017 to June.2017 (Pre-GST) with the dissatisfied below points:
1) Opening ITC (Tax Credit as of 01.04.2017) not considered in the assessment order.
2) Disallowed ITC on purchase as one of the suppliers hadn't paid tax.
Aggrieved with the above assessment order we preferred the first appeal before the appellant authority within time. Meanwhile, the Gujarat government has declared the "VERA SAMADHAN YOJNA-2019" scheme under various conditions, among them subject to one condition as an appeal to be withdrawn if it is filed against the said scheme, Therefore, we decided to get the benefit of such a scheme for only above para no. 2, however, we wanted to continue appeal for para no.1. Therefore, we availed it and paid necessary tax for para no. 2 under the scheme by subject to withdrawal first appeal, but actually we should had to withdrawal partial appeal instead of the entire appeal but by mistakenly we had entire by received appeal order from the appellant authority in the month of Sept.2021.
Now, the local department has started recovery proceedings in connection with para no. 1 which is genuine. So, my query is that any remedy available in this matter?
Such as a request to first appeal authority to re-appeal or revision or others.......
I am thinking as a request to the local officer to generate a task for assessment for the previous period (FY 2016-17) to get the refund of closing ITC which ITC was not considered by the AO in the FY 2017-18 (April to June.17) as above mentioned.
Kindly guide me in this regard for any remedy available.
06 July 2024
In the scenario you've described, where there are issues with VAT assessment and subsequent actions under the VERA SAMADHAN YOJNA-2019 scheme, here are some considerations and potential remedies:
### Current Situation:
1. **Appeal Withdrawal Mistake:** - You mentioned that the entire appeal was withdrawn under the VERA SAMADHAN YOJNA-2019 scheme, whereas you intended to withdraw only part of it related to para no. 2 (disallowed ITC on purchases). - The appeal related to para no. 1 (Opening ITC as of 01.04.2017) was inadvertently withdrawn.
2. **Recovery Proceedings:** - The local department has initiated recovery proceedings related to para no. 1, which was not intended to be withdrawn under the scheme.
### Possible Remedies:
1. **Request for Reconsideration or Re-Appeal:** - You can approach the first appeal authority (Appellant Authority) and explain the mistake in withdrawing the entire appeal instead of only the part related to para no. 2. - Request the authority to reconsider the withdrawal or allow you to re-file the appeal specifically for para no. 1. - Provide documentation and evidence to support your claim regarding the Opening ITC issue.
2. **Request for Assessment for FY 2016-17:** - As an alternative approach, you can request the local assessing officer to initiate an assessment task for the previous financial year (FY 2016-17). - This assessment task would aim to validate and claim the refund of the Closing ITC from FY 2016-17 that was not considered by the Assessing Officer (AO) during the FY 2017-18 assessment period (April to June 2017).
### Steps to Take:
- **Document Preparation:** Gather all relevant documents, including the original assessment order, appeal order, and any communication related to the VERA SAMADHAN YOJNA-2019 scheme.
- **Formal Request:** Draft a formal request addressed to the first appeal authority explaining the mistake in appeal withdrawal and requesting reconsideration or re-appeal specifically for para no. 1.
- **Engage with Local Officer:** Discuss with the local assessing officer regarding the possibility of initiating an assessment task for FY 2016-17 to claim the refund of Closing ITC.
### Conclusion:
It's important to act swiftly and communicate clearly with both the appellate authority and the local department to rectify the appeal withdrawal mistake and pursue the rightful claim for Opening ITC refund. Providing clear documentation and explanations will strengthen your case for reconsideration or re-appeal. If needed, seek assistance from a tax professional or legal advisor who specializes in VAT matters to navigate these procedures effectively.
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