03 February 2018
Respected Experts, Please suggest me that an assessment proceeding u/s 46 of West Bengal Value Added Tax Act 2003 has been initiated against my client, who is a Work Contractor and opted to pay tax u/s 18(4) under compounding rate of 3% on Gross Contractual Price and complied Rule 39 (3) & Rule 39(4) of West Bengal VAT Rule 2005, and after conducting several hearing the Final Assessment order has been sent to my client amounting demand of Rs. 55200/- Tax including interest. The Sales Tax Officer assessed his tax under Rule 30(2) of West Bengal Value Added Rules 2005. My Question is : 1) The Rule 30(2) is applied for Section 18 other than Section 18(4). The Section 18(4) is for Composite Dealer who opted to pay tax @ 3%. 2) Section 63 of Value Added Tax Act 2003 provide exemption to maintain Books of Accounts & Other Documents for the Dealer opted to pay tax @ 3% u/s 18(4) subject to comply rule 39(3) & Rule 39(4). My Client has full filled the provision mentioned above then also the Sales Tax Officer have made assessed tax u/r 30(2) for non-production of Books of Accounts and not given the benefit of Section 18(4) read with Rule 39(3) & Rule 39(4) and Section 63.
1) In view of above please suggest me has proceeding made above is in accordance of Law? 2) Can a review of order u/s 88 can be made to SAME Sales Tax officer because Section 88 provide review of order for officer appointed u/s 3 u/s 4, u/s 5 & u/s 6. And the Sales Tax Officer falls under purview Section 6 for review of Order. 3) Or Sall i File Appeal u/s 84 by depositing 15% of disputed tax.
In view of above I request you to kindly provide your valuable advise and suggestion.
11 July 2024
Based on the details provided regarding the assessment proceeding under the West Bengal Value Added Tax Act 2003, here are responses to your queries:
1. **Applicability of Rule 30(2)**: - Rule 30(2) of the West Bengal Value Added Rules 2005 pertains to assessments under Section 18 of the Act. However, Section 18(4) specifically applies to composite dealers who opt to pay tax at a compounded rate of 3% on the gross contractual price. This section provides certain exemptions and simplifications, including the exemption from maintaining detailed books of accounts under Section 63, subject to compliance with Rule 39(3) and Rule 39(4). - If your client has opted for payment under Section 18(4) and has complied with Rule 39(3) & Rule 39(4), they should not be assessed under Rule 30(2), which typically applies to other provisions of Section 18. The assessment under Rule 30(2) would usually require more detailed accounting records and compliance, which are exempted for Section 18(4) dealers.
2. **Review under Section 88**: - Section 88 of the West Bengal VAT Act 2003 allows for the review of an order passed by an officer appointed under Sections 3, 4, 5, and 6 of the Act. Sales Tax Officers fall under the purview of officers appointed under Section 6. Therefore, if the Sales Tax Officer has passed an order under Rule 30(2) that you believe is not in accordance with Section 18(4) and related provisions, you can request a review under Section 88. - The review should highlight the specific provisions of Section 18(4), Rule 39(3), Rule 39(4), and Section 63 that exempt your client from the requirements imposed under Rule 30(2).
3. **Filing Appeal under Section 84**: - Section 84 of the West Bengal VAT Act 2003 allows for the filing of an appeal against an assessment order. Generally, before filing an appeal, a deposit of 15% of the disputed tax amount is required. However, given the specific circumstances where your client has complied with Section 18(4) and related provisions, an appeal can be a recourse if the review under Section 88 does not yield a favorable outcome. - Ensure that all relevant documents and evidence supporting your client's compliance with Section 18(4), Rule 39(3), Rule 39(4), and Section 63 are submitted along with the appeal.
**Action Plan:** - Immediately request a review of the order under Section 88, citing the specific provisions of Section 18(4), Rule 39(3), Rule 39(4), and Section 63 that apply to your client. - If the review does not result in a satisfactory resolution, proceed with filing an appeal under Section 84, ensuring all necessary documents and the required deposit are submitted.
It's advisable to consult with a local tax consultant or lawyer who specializes in VAT laws in West Bengal to ensure all legal nuances and procedural requirements are properly addressed in your client's case.
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