DELHI VAT – Circular No. 12 OF 2015-16 – (Instruction regarding processing of Refund), dated 10.06.2015.

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OFFICE OF THE SPECIAL COMMISSIONER
(POLICY & REFUNDS)
DEPARTMENT OF TRADE AND TAXES
ROOM NO.304, 3 rd FLOOR, VYAPAR BHAWAN,
I.P. ESTATE,
NEW DELHI-110002.
NO.F.3(378)/Policy/VAT/2015/ 264-270
Dated: 10th June, 2015
CIRCULAR NO.12 OF 2015-16 SUB :
INSTRUCTIONS REGARDING PROCESSING OF REFUND

Your kind
attention is invited to the Circular No.6 of 2014-15 issued by the Special
Commissioner (Policy) vide Circular No.F.3(378)/Policy/VAT/2013/238-244 dated
04.08.2014 (copy enclosed) wherein the legal provisions and rule position
relating to refund claims to be passed by the department as per the DVAT Act,
2004 and DVAT Rules, 2005 were described in detail. The basic concept of the
refund was also dealt in detail. However, it is felt that some practical
aspects relating to day-today processing of the refunds need to be further
reiterated. The refund is a vital activity in VAT regime. The claim for the
refund is made by the dealer in the return filed by the dealer and hence the
return itself becomes the application for refund. As per the DVAT Act and DVAT
Rules, refund has to be given to the applicant within a period of 60 days from
the date of application.
However,
wherein the Value Added Tax Officer is of the view that he needs some
information/document from the dealer for satisfying himself about the amount
and genuinity of the refund he may seek the information and the documents by
sending a notice under Section 59(2) of the DVAT Act, 2004. Therefore, either
the refund should be disbursed within two months of filing of
application/return or the notice u/s 59(2) for seeking more information is to
be issued within the prescribed time. There can be no other situation. There
are also provisions in the Act for payment of interest to the dealer in case of
delay of disbursement of refund. Thus, the VATO concerned is squarely
responsible for taking one of the actions as mentioned above. It has been
observed from the files sent to the Special Commissioner (Refund) for approval
of refund above Rs.10 lacs that there is no uniformity and pattern in
examination of the file. Many times officers, while sending the file to the
Special Commissioner (Refund), put their notings in such a way that suggests
that they have deliberately attempted not to make categorical recommendations
in favour or against the case, the language used is evasive of owning the
responsibility. All officers in the chain have to perform their duties and also
own the responsibilities for anything which they ought to do. In view of the
above, following certificates are required to be recorded by the concerned
officer in noting side of the file:
-2- Certificate by Value Added Tax
Inspector (VATI)
It is hereby
certified that the transporters have been found functioning on field visit. All
the GRs have been verified. Transportation charges have been received by the
transporters from dealers in authorized mode of payment.
Value Added Tax Inspector (VATI)
Certificate by Ward In-Charge
It is certified
that all the ITCs are duly and adequately matched with the corresponding VAT
payments. All the requisite information available in the computer data base
relating to this refund case has been thoroughly examined and verified in the
light of the DVAT Act 2004, DVAT Rules 2005, CST Act 1956, CST (Delhi) Rules
2005 and CST (Registration & Turnover) Rules 1957 and all the guidelines
and circulars issued time to time under these Acts and Rules and also in the
light of audit para-CAG/Internal raised by the audit in the past relating to
refund cases. The proposal for release of refund amount to Rs……………………. is in
order. Therefore, after being fully satisfied, I hereby propose and recommend
that the competent authority may be requested for approval of refund amount to
the tune of Rs…………………… for the period………………… in favour of M/s…………………………..
VATO/AVATO/WARD INCHARGE Certificate by Zonal Accounts Officer (Refund) Seen
the proposal of Ward In-Charge and it has been found that the Ward InCharge has
earlier examined and verified all the requisite documents and the information
available in the computer system related to this refund case. I have also
examined the proposal thoroughly in the light of the DVAT Act 2004, DVAT Rules
2005, CST Act 1956, CST (Delhi) Rules 2005 and CST (Registration & Turnover)
Rules 1957 and all the guidelines and circulars issued time to time under these
Acts and Rules and also in the light of CAG/ internal audit para raised in
respect of refund cases. The proposal for release of refund amount to the tune
of Rs……….………..……….. is in order. Therefore, after being fully satisfied, I
hereby propose and recommend that the competent authority may be requested for
approval of refund amount to the tune of Rs….……………………….for the
period……..…………….. in favour of M/s……………………………. . Z.A.O.
-3- Certificate by Zonal Incharge
Proposal
submitted by the Ward In-Charge duly examined and verified and re-examined and
re-verified by Z.A.O. has been seen and found in order. Therefore, I recommend
to approve the above refund.
Zonal Incharge
(S.S. Kanawat)
Spl. Commissioner
(Policy & Refunds)
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