Chapter V PROCEDURE AND ADMINISTRATION OF TAX

1. (1) Every dealer registered under Section 17 of the Act, shall submit such return or returns, along with proof of payment of tax in such manner, within such time, and to such authority as may be prescribed.
2. (2) If a return has been filed within the prescribed time and the return so filed is found to be in order, it shall be accepted as self-assessment subject to adjustment of any arithmetical error apparent on the face of the said return. (3)
   • (a) Without prejudice to the powers of the authority prescribed under sub- section
3. (3) of Section 21, every return shall be subject to scrutiny to verify the correctness of calculation, application of correct rate of tax and input tax credit claimed therein and full payment of tax payable for such tax period.
   • (b) If any mistake is detected as a result of such scrutiny made as specified in clause (a), the authority prescribed shall issue a notice of demand in the

prescribed form for any short payment of tax or for recovery of any excess

input tax credit claimed.

1. (4) Every dealer shall be deemed to have been assessed to tax based on the return filed by him, if no assessment is made within a period of four years from the date of filing of the return.

1. (1) Where a VAT dealer or TOT dealer fails to file a return in respect of any tax period within the prescribed time, the authority prescribed shall assess the dealer for the said period for such default in the manner prescribed.
2. (2) If a VAT dealer or TOT dealer submits a return along with evidence for full payment of tax, subsequent to the prescribed time the assessment made under sub-section
3. (1) shall be withdrawn without prejudice to any interest or penalty leviable.
4. (3) Where the authority prescribed is not satisfied with a return filed by the VAT dealer or TOT dealer or the return appears to be incorrect or incomplete, he shall assess to the best of his judgement within four years of due date of the return or within four years of the date of filing of the return whichever is later.
5. (4) The authority prescribed may, based on any information available or on any other basis, conduct a detailed scrutiny of the accounts of any VAT dealer or TOT dealer and where any assessment as a result of such scrutiny becomes necessary, such assessment shall be made within a period of four years from the end of the period for which the assessment is to be made.
6. (5) Where any willful evasion of tax has been committed by a dealer, an assessment shall be made to the best of his judgement by the authority prescribed within a period of six years of date of filing of the return or the first return relating to such offence.
7. (6) The authority prescribed may reassess, where an assessment was already made under sub-sections
8. (1) to
9. (5) and such assessment understates the correct tax liability of the dealer, within a period of four years from the date of such assessment.
10. (7) Where any assessment has been deferred on account of any stay order granted by the High Court or where an appeal or other proceedings is pending before the High Court or Supreme Court involving a question of law having a direct bearing on the assessment in question, the period during which the stay order was in force or such appeal or proceedings was pending shall be excluded in computing the period of four years or six years as the case may be for the purpose of making the assessment.
11. (8) Where an assessment made has been set aside by any Court, the period between the date of such assessment and the date on which it has been set aside shall be excluded in computing the period of four years or six years as the case may be, for making any fresh assessment;

1. (1) The tax payable in respect of a tax period along with a return and the tax assessed under the Act shall be payable in such manner and within such time as may be prescribed.
2. (2) If any dealer fails to pay the tax due on the basis of return submitted by him or fails to pay any tax assessed or penalty levied or any other amount due under the Act, within the time prescribed or specified there for, he shall pay, in addition to the amount of such tax or penalty or any other amount, interest calculated at the rate of one percent per month for the period of delay from such

prescribed or specified date for its payment. The interest in respect of part of a

month shall be computed proportionately and for this purpose, a month shall mean a period of 30 days.

1. (3) In the case of a dealer executing works contract for Government or local authority, a tax at the rate of 4% shall be deducted from the amount payable to him and such contractee deducting tax at source shall remit such amount in the manner as may be prescribed.
2. (4) In case of (a VAT dealer) a dealer executing works contract (for a company) for Central Government or a Company or a statutory body or an undertaking or an

institution other than Government or local authority irrespective of the quantum

of value of the contract or for any other dealer or a firm where the value of the contract exceeds Rs.10,00,000/- (Rupees ten lakhs only), a tax (at the rate of 2%) at the rate of four percent (4%) shall be deducted from the amount payable to him and such contractee deducting tax at source shall remit such amount in the manner as may be prescribed.

1. (5) Where a VAT dealer paid entry tax on any goods under Andhra Pradesh Entry Tax on entry of Motor Vehicles into Local Areas Act 1996 and Andhra Pradesh Tax on Entry of goods into Local Areas Act 2001, such amount shall be adjusted against VAT payable provided the credit for input tax is not restricted under *(....) Section 13 of the Act. (6)
   • (a) The Deputy Commissioner, on an application made by a VAT dealer or any other dealer, permit the payment of any tax, penalty or other amount due under the Act in such instalments within such intervals and subject to such conditions, as he may specify in the said order, having regard to the circumstances of the each case;
   • (b) Where such payment in instalments is permitted, the dealer shall pay in addition to such tax, penalty, instalment or other amount, interest at the rate of one percent per month for the amount for the period from the date specified for its payment on the instalments so permitted.
2. (7) Any person required to deduct tax at source under sub-sections
3. (3) and (4) fails to deduct or to remit such tax shall be liable to pay interest at the rate of twelve percent (12%) per annum for the delayed period.

1. (1) Where any dealer doing business in respect of which tax is payable under the Act is dead, the Executor, Administrator, Successor in title or other legal representative of the deceased dealer shall, in respect of such business, be liable to submit the returns due under the Act and to assessment under Section 21 and to pay out of the estate of the deceased dealer, the tax, interest and any penalty assessed or levied as payable by the deceased dealer.
2. (2) The provision relating to appeals and revisions shall be applicable to assessment made under sub-section
3. (1) as if the Executor, Administrator, Successor in title or other legal representative were himself the dealer.
4. (3) The provisions of sub-sections
5. (1) and
6. (2) shall apply mutatis mutandis to a partnership firm of which the managing partners have died.

1. (1) Where any firm is liable to pay any tax or other amount under the Act, the firm and each of the partners of the firm shall be jointly and severally liable for such payment.
2. (2) Where any business carried on by a firm or a Hindu Undivided Family or an Association has been discontinued or dissolved, the authority prescribed shall make an assessment on the taxable turnover and determine the tax payable as if no such discontinuance or dissolution had taken place and all the provisions of the Act including provisions relating to levy of penalty or any other amount payable under any of the provisions of the Act shall apply, to such assessment.
3. (3) Every person who was at the time of such discontinuance or dissolution, a partner of the firm, or a member of such Hindu Undivided Family or Association and the legal representative of any such person who is deceased, shall be jointly and severally liable for the amount of tax, penalty or any other amount payable, and all the provisions of the Act shall apply to any such assessment or levy of penalty or any other amount.
4. (4) Where such discontinuance or dissolution takes place after any proceedings in respect of any year have commenced, the proceedings may be continued against the VAT dealer or TOT dealer referred to in sub-section
5. (2) from the stage at which such proceedings stood at the time of such discontinuance or dissolution and all the provisions of the Act shall apply accordingly.
6. (5) When any private company is wound up and any tax assessed on the company under the Act for any period, whether before or in the course of or after its liquidation, cannot be recovered, then every person who was a director of the private company at any time during the period for which the tax is due, shall be jointly and severally liable for the payment of such tax, unless he proves that the non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company.

If the tax assessed or penalty levied or interest payable under the Act, or any amount of tax including deferred tax which is treated as a loan extended by the Government to the dealer and any instalment thereof, are not paid by a dealer within the time specified therefor, the whole of the amount then remaining unpaid may be recovered as if it were an arrear of land revenue.

Notwithstanding anything to the contrary contained in any law for the time being in force, any amount of tax, including deferred tax which is treated as a loan extended by the Government to the dealer, penalty, interest and any other sum payable by a VAT dealer or TOT dealer or any other dealer under the Act, shall be the first charge on the property of the VAT dealer or TOT dealer or any other dealer as the case may be.

1. (1) Where during the pendency of any proceedings under the Act, or after the completion thereof, any VAT dealer or TOT dealer or any other dealer creates a charge on, or parts with the possession by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever, or any of his assets in favour of any other person such charge or transfer shall be void unless he proves that such charge or transfer was not with the intention to defraud any tax or any other sum payable. (2)
   • (a) where, during the pendency of any proceeding for the assessment or reassessment of any tax or turnover tax which has escaped assessment, the authority prescribed is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, may with the previous approval of the Commissioner, by order in writing, attach provisionally in the prescribed manner any property belonging to the dealer;
   • (b) every such provisional attachment shall cease to have effect after the expiry of a period of six months from the date of the order made under clause (a): Provided that the Commissioner may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as he thinks fit, so, however, that the total period of extension shall not in any case exceed two years.

1. (1) A Deputy Commissioner shall have the powers of a Collector under the Andhra Pradesh Revenue Recovery Act, 1864 for the purpose of recovery of any amount due under the Act.
2. (2) Subject to the provisions of sub-section
3. (3) all Deputy Commercial Tax Officers shall, for the purposes of recovery of any amount due under the Act, have the powers of the Mandal Revenue Officer under the Andhra Pradesh Rent and Revenue Sales Act, 1839 for the sale of property distrained for any amount due under the Act.
4. (3) Notwithstanding anything contained in the Andhra Pradesh Rent and Revenue Sales Act, 1839 the Deputy Commercial Tax Officer in the exercise of the powers conferred by sub-section
5. (2) shall be subject to the control and superintendence of the Deputy Commissioner.

1. (1) The Commissioner or any other authority prescribed may at any time or from time to time, by notice in writing (a copy of which shall be forwarded to the dealer at his last address known to such authority) require any person from whom money is due or may become due to the defaulter, or any person who holds or may subsequently hold money for, or on account of the defaulter, to pay to such authority, either forthwith if the money has become due or is so held, within the time specified in the notice but not before the money becomes

due or is held, so much of the money as is sufficient to pay the amount due by

the defaulter in respect of arrears of tax, interest, penalty or the whole of the money when it is equal to or less than that amount.

1. (2) The authority prescribed may, at any time, or from time to time, amend or revoke any such notice or extend the time of making any payment in pursuance of the notice.
2. (3) Any person making any payment in compliance with the notice under this section shall be deemed to have made the payment under the authority of the

defaulter and the receipt of the authority prescribed shall constitute a good and

sufficient discharge of the liability of such person to the extent of the amount referred to in the receipt.

1. (4) Any person discharging any liability to the defaulter after receipt of the notice referred to in this section, shall be personally liable to the authority prescribed to the extent of the liability discharged or to the extent of the liability of the defaulter for the amount due under the Act, whichever is less.
2. (5) Where any person to whom a notice under this section is sent proves to the satisfaction of the authority prescribed that the sum demanded or any part thereof is not due by him to the defaulter or that he does not hold any money for or on account of the dealer, then nothing contained in this Section shall be deemed to require such person to pay the sum demanded or any part thereof, to the authority prescribed.
3. (6) Where any person to whom a notice under sub-section
4. (1) is sent, fails to pay to the authority prescribed the sum demanded or any part thereof as required in the said notice, such sum shall be recoverable from such person as if it were an arrear of land revenue due from him.
5. (7) The provisions of this Section shall be without prejudice to any action that may be taken for the recovery of the money due from the dealer.

Where ownership of the business of a dealer registered under the Act and liable to pay tax is transferred, any tax or any other amount payable under the Act in respect of such business and remaining unpaid at the time of the transfer, may without prejudice to any action that may be taken for its recovery from the transferor, be recoverable from the transferee as if the transferee were the dealer liable to pay such tax or other amount.

1. (1) Any VAT dealer or TOT dealer or any other dealer objecting to any order passed or proceeding recorded by any authority under the provisions of the Act other than an order passed or proceeding recorded by an Additional Commissioner or Joint Commissioner or Deputy Commissioner, may within thirty days from the date on which the order or proceeding was served on him, appeal to such authority as may be prescribed:

Provided that the appellate authority may within a further period of thirty days

admit the appeal preferred after a period of thirty days if he is satisfied that the VAT dealer or TOT dealer or any other dealer had sufficient cause for not preferring the appeal within that period: Provided further that an appeal so preferred shall not be admitted by the appellate authority concerned unless the dealer produces proof of payment of tax admitted to be due, or of such instalments as have been granted, and the proof of payment of twelve and half percent of the difference of the tax assessed by the authority prescribed and the tax admitted by the appellant, for the relevant tax period, in respect of which the appeal is preferred.

1. (2) The appeal shall be in such form, and verified in such manner, as may be prescribed and shall be accompanied by a fee which shall not be less than Rs.50/- (Rupees fifty only) but shall not exceed Rs.1000/- (Rupees one thousand only) as may be prescribed. (3)
   • (a) Where an appeal is admitted under sub-section (1), the appellate authority may, on an application filed by the appellant and subject to furnishing of such security or on payment of such part of the disputed tax within such time as may be specified, order stay of collection of balance of the tax under dispute pending disposal of the appeal;
   • (b) Against an order passed by the appellate authority refusing to order stay under clause(a), the appellant may prefer a revision petition within thirty days from the date of the order of such refusal to the Additional Commissioner or the Joint Commissioner who may subject to such terms and conditions as he may think fit, order stay of collection of balance of the tax under dispute pending disposal of the appeal by the appellate authority;
   • (c) Notwithstanding anything in clauses
   • (a) or (b), where a VAT dealer or TOT dealer or any other dealer has preferred an appeal to the Appellate Tribunal under Section 33, the stay, if any, ordered under clause
   • (b) shall be operative till the disposal of the appeal by such Tribunal, and, the stay, if any ordered under clause
   • (a) shall be operative till the disposal of the appeal by such Tribunal, only in case where the Additional Commissioner or the Joint Commissioner on an application made to him by the dealer in the prescribed manner, makes specific order to that effect.
2. (4) The appellate authority may, within a period of two years from the date of admission of such appeal, after giving the appellant an opportunity of being

heard and subject to such rules as may be prescribed:

1. (a) confirm, reduce, enhance or annul the assessment or the penalty, or both; or
2. (b) set aside the assessment or penalty, or both, and direct the authority prescribed to pass a fresh order after such further enquiry as may be directed; or
3. (c) pass such other orders as it may think fit.

1. (5) Before passing orders under sub-section (4), the appellate authority may make such enquiry as it deems fit or remand the case to any subordinate officer or authority for an inquiry and report on any specified point or points.
2. (6) Every order passed in appeal under this section shall, subject to the provisions of Sections 32, 33, 34 and 35 be final.

1. (1) The Commissioner may suo moto call for and examine the record of any order passed or proceeding recorded by any authority, officer or person subordinate to him under the provisions of the Act, including sub-section
2. (2) and if such order or proceeding recorded is prejudicial to the interests of revenue, may make such enquiry, or cause such enquiry to be made and subject to the provisions of the Act, may initiate proceedings to revise, modify or set aside such order or proceeding and may pass such order in reference thereto as he thinks fit.
3. (2) Powers of the nature referred to in sub-section
4. (1) may also be exercised by the Additional Commissioner, Joint Commissioner, Deputy Commissioner and Assistant Commissioner in the case of orders passed or proceedings recorded by the authorities, officers or persons subordinate to them:

Provided that the power under sub-sections

1. (1) or
2. (2) shall not be exercised by the authority specified therein in respect of any issue or question, which is the subject matter of an appeal before or which was decided on appeal by

or questions, which are not the subject matter of an appeal before the Appellate Tribunal.

1. (3) In relation to an order of assessment passed under the Act, the powers conferred by sub-sections
2. (1) and
3. (2) shall be exercisable only within a period of four years from the date on which the order was served on the dealer.
4. (4) No order shall be passed under sub-section
5. (1) or
6. (2) enhancing any assessment unless an opportunity has been given to the dealer to show cause against the proposed enhancement.
7. (5) It shall be lawful for the Commissioner to defer any proceedings under this section by the reason of the fact that an appeal or other proceeding is pending before the High Court or Supreme Court involving a question of law having a direct bearing on the order or proceeding in question.
8. (6) Where an order passed under this section has been set aside by any court or other competent authority under the Act for any reason, the period between the date of such order and the date on which it has been so set aside shall be excluded in computing the period of four years specified in sub-section (3), for the purpose of making a fresh revision, if any, under this section.
9. (7) Where any proceeding under this section has been deferred on account of any stay order granted by the High Court or Supreme Court in any case, or by reason of the fact that an appeal or other proceeding is pending before the High Court or the Supreme Court involving a question of law having a direct bearing on the order or proceeding in question, the period during which the stay order was in force or such appeal or proceeding was pending shall be excluded in computing the period of four years specified in sub-section (3), for the purposes of exercising the power under this section.

1. (1) Any dealer objecting to an order passed or proceeding recorded:-

a) by any authority prescribed on appeal under Section 31; or

b) by the Additional Commissioner, or Joint Commissioner or Deputy Commissioner under Section 21 or 32 or 38, may appeal to the Appellate Tribunal within sixty days from the date on which the order or proceeding was served on him.

1. (2) The Appellate Tribunal may within a further period of sixty days admit the appeal preferred after the period of sixty days specified in sub-section (1), if it is satisfied that the dealer had sufficient cause for not preferring the appeal within that period: Provided that no appeal against the order passed under Section 31 shall be admitted under sub-section
2. (1) or sub-section
3. (2) of this section unless it is

accompanied by satisfactory proof of the payment of fifty percent of the tax as

ordered by the Appellate Authority under Section 31:

Provided further that no appeal against the order passed under sub-section

(2) of Section 32 shall be admitted under sub-section

1. (1) or
2. (2) unless it is accompanied by satisfactory proof of the payment of the tax admitted by the appellant to be due or in such instalments thereof as might have become payable as the case may be, and twenty five percent of the difference of the tax ordered by the revisional authority under sub-section
3. (2) of Section 32 and the tax admitted by the appellant: Provided also that the authority prescribed shall refund the said amount of twelve and half percent or twenty five percent or fifty percent of the difference of tax assessed by the authority prescribed or revisional authority as the case

may be and the tax admitted and paid by the appellant, with interest calculated

at the rate of 12% per annum if the refund is not made within 90 days from the date of receipt of the order passed under Section 31 or 33.

1. (3) The appeal shall be in the prescribed form, shall be verified in the prescribed manner, and shall be accompanied by such fee which shall not be less than Rs. one hundred only but shall not exceed Rupees two thousand only as may be prescribed.
2. (4) The Appellate Tribunal may, after giving both parties to the appeal a reasonable opportunity of being heard:-
   • (a) confirm, reduce, enhance or annul the assessment or the penalty or both; or
   • (b) set aside the assessment or the penalty or both, and direct the authority prescribed to pass a fresh order after such further inquiry as may be directed; or
   • (c) pass such other orders as it may think fit: Provided that if the appeal involves a question of law, a decision on which is pending in any proceeding before the High Court or the Supreme Court, the Appellate Tribunal may defer the hearing of the appeal before it, till such proceeding is disposed of. (5)
   • (a) Before passing any order under sub-section (4), the Appellate Tribunal may make such inquiry as it deems fit or remand the case to the appellate authority against whose order the appeal was preferred or to the authority prescribed concerned, for an inquiry and report on any specified point or points.
   • (b) Notwithstanding anything contained in sub-section (4), where the VAT dealer or TOT dealer or any other dealer who has filed an appeal to the Appellate Tribunal fails to appear before the Appellate Tribunal either in person or by counsel when the appeal is called on for hearing, it shall be open to the Tribunal to make an order dismissing the appeal: Provided that the Appellate Tribunal may, on an application made by the dealer within thirty days from the date of communication of the order of dismissal and on sufficient cause being shown by him for his non- appearance when the appeal was called on for hearing, re-admit the appeal on such terms as it thinks fit, after giving notice thereof to the authority against whose order or proceeding the appeal was preferred. (6)
   • (a) Where a VAT dealer or TOT dealer or any other dealer, objecting to an order passed or proceeding recorded by a Deputy Commissioner under Section 21 or 32 has preferred an appeal to the Appellate Tribunal, the Additional Commissioner, or the Joint Commissioner may, on an application filed by the dealer, subject to such terms and conditions, as he may think fit, order stay of collection of the tax under dispute pending disposal of the appeal by the Appellate Tribunal;
   • (b) The payment of tax and penalty, if any, due in accordance with the order of the first appellate authority or of the Deputy Commissioner under Section 21 or in revision under Section 32, in respect of which an appeal has been preferred under sub-section (1), shall not be stayed pending disposal of the appeal.
3. (7) Except as provided in the rules Appellate Tribunal shall not have the power to award costs to either of the parties to the appeal.
4. (8) Every order passed by the Appellate Tribunal under sub-section
5. (4) shall be communicated by it to the dealer, the authority against whose order the appeal was preferred, the Commissioner and such other authorities as may be prescribed.
6. (9) Every order passed by the Appellate Tribunal under sub-section
7. (4) shall, subject to the provisions of Section 34 be final.

1. (1) Within ninety days from the date on which an order under sub-section
2. (4) of Section 33 was communicated to him the VAT dealer or TOT dealer or any other dealer or the authority prescribed in this behalf may prefer a petition to the High Court against the order on the ground that the Appellate Tribunal has either decided erroneously, or failed to decide, any question of law: Provided that the High Court may admit a petition preferred after the period of ninety days aforesaid if it is satisfied that the petitioner had sufficient cause for not preferring the petition within that period.
3. (2) The petition shall be in the prescribed form, shall be verified in the prescribed manner, and shall, where it is preferred by the dealer, be accompanied by a fee of Rs.500/-.
4. (3) If the High Court, perusing the petition considers that there is no sufficient ground for interfering, it may dismiss the petition summarily : Provided that no petition shall be dismissed unless the petitioner has had a reasonable opportunity of being heard in support thereof. (4)
   • (a) If the High Court does not dismiss the petition summarily, it shall, after giving both parties to the petition, a reasonable opportunity of being heard, determine the question or questions of law raised and either reverse, affirm, or amend the order against which the petition was preferred, or remit the matter to the Appellate Tribunal with the opinion of the High Court on the question or questions of law raised, or pass such other order in relation to the matter as the High Court thinks fit.
   • (b) Where the High Court remits the matter to the Appellate Tribunal under clause
   • (a) with its opinion on the question or questions of law raised, the Appellate Tribunal shall amend the order passed by it in conformity with such opinion.
5. (5) Before passing an order under sub-section (4), the High Court may, if it considers it necessary so to do, remit the petition to the Appellate Tribunal and direct it to return the petition with its finding on any specific question or issue. (6)
   • (a) Notwithstanding that a petition has been preferred under sub-section
6. (1) tax shall be paid in accordance with the assessment made in the case:

Provided that the High Court may, in its discretion permit the petitioner

to pay the tax in such number of instalments, or give such other direction in regard to the payment of tax as it thinks fit : Provided further that if, as result of the petition, any change becomes necessary in such assessment, the High Court may authorise the authority prescribed to amend the assessment, and on such amendment being made

the excess amount paid by the dealer shall be refunded to him without

interest, or the further amount of tax due from him shall be collected in accordance with the provisions of the Act, as the case may be.

1. (b) The payment of tax and penalty, if any due in accordance with the order of the Appellate Tribunal in respect of which a petition has been preferred under sub-section

1. (1) shall not be stayed pending the disposal of the petition, but if such amount is reduced as a result of such petition, the excess tax paid

shall be refunded in accordance with the provisions of the Act.

7)

1. (a) The High Court may, on the application of the dealer or the authority prescribed review any order passed by it under sub-section

1. (4) on the basis of facts which were not before it when it passed the order;
   • (b) The application for review shall be preferred within such time, and in such manner as may be prescribed and shall, where it is preferred by the dealer, be accompanied by a fee of Rupees one hundred only.
2. (8) In respect of every petition or application preferred under sub-section
3. (1) or sub-section (7), the costs shall be in the discretion of the High Court.

1. (1) Any VAT dealer or TOT dealer or any other dealer objecting to an order

relating to assessment passed by the Commissioner suo-moto under Section 32

or 38 may appeal to the High Court within sixty days from the date on which the order was communicated to him: Provided that the High Court may admit an appeal preferred after the period of sixty days aforesaid if it satisfied that the dealer had sufficient cause for not preferring the appeal within that period.

1. (2) The appeal shall be in the prescribed form, shall be verified in the prescribed manner and shall be accompanied by such fee which shall not be less than Rupees five hundred only but shall not exceed Rupees two thousand only as may be prescribed.
2. (3) The High Court shall, after giving both parties to the appeal, a reasonable opportunity of being heard, pass such order thereon as it thinks fit.
3. (4) The provisions of sub-sections (4),
4. (7) and
5. (8) of Section 34 shall mutatis-

mutandis apply in relation to appeals preferred under sub-section

1. (1) as they apply in relation to petitions preferred under sub-section
2. (1) of Section 34.

Every petition, application or appeal preferred to the High Court under Sections 34 or 35 shall be heard by a Bench of not less than two judges, and in respect of such petition, application or appeal, the provisions of Section 98 of the Code of Civil Procedure, 1908 shall, so far as may be, apply.

Notwithstanding anything contained in Sections 21 and 32 where an assessment, re-assessment, rectification in or revision of an assessment is made in respect of a dealer or any person, in pursuance or in consequence of or to give effect to any finding or direction contained in an order under Sections 31, 32, 33, 34 and 35 or in an order of any court in a proceeding, otherwise than by way of appeal or revision such assessment, re-assessment, rectification in or revision, of an assessment shall be made within three years from the date of receipt of such order by the prescribed or revising authority as the case may be: Provided that if such appeal, order or order of any court has been subjected to further appeal, either partially or entirely, and if there are orders of stay prohibiting the authority concerned to pass consequential orders, the period of three years shall get extended by the period during which such stay orders were in force: Provided further that if the subsequent appeal results in modification of such appeal, order or order of any court which is subjected to further appeal, either partially or wholly, the period of three years shall be computed from the date of receipt of subsequent order of appeal but not from the date of receipt of the original appeal, order or order of any court which was subjected to further appeal.

(1)

1. (a) A VAT dealer effecting sales falling under sub-section

1. (1) or
2. (3) of Section 5 and sub-section
3. (6) of Section 8 of the Central Sales Tax Act, 1956 in any tax period shall be eligible for refund of tax, if the input tax credit exceeds the amount of tax payable subject to the condition that the exports have been made outside the territory of India. The excess of tax shall be refunded within a period of ninety days on a claim made on a VAT return prescribed to the authority prescribed subject to the provisions of the Act and the rules made thereunder;
   • (b) In all other cases, the VAT dealer may make a claim for refund of any excess credit available at the end of second year after the commencement of the Act and thereafter in the return to be filed for the month of March every year if registered as a VAT dealer for a minimum period of twelve months or in the event of cancellation of registration. The excess of input tax credit claimed as refund shall be refunded within ninety days of the date of receipt of the claim;
   • (c) The claim for refund under this Section shall be made on the VAT return in the form prescribed;
   • (d) A VAT dealer, who has paid tax in excess of the amount due for a tax period, may claim a credit in the next tax return.
4. (2) Where a VAT dealer claiming a refund is required by authority prescribed to provide accounts or records to substantiate the claim but fails to do so in a manner satisfactory to the authority prescribed within seven days of issue of notice, the time period specified in sub-section
5. (1) for making the refund shall not apply.
6. (3) Where a claim of a VAT dealer is not accepted either in full or in part, the authority prescribed, shall send a notice in writing, to the VAT dealer.
7. (4) A VAT dealer aggrieved by the decision under sub-section
8. (3) may file an appeal as prescribed in the Act.
9. (5) The tax paid under the Act on the purchases made by specialized agencies of the UNITED NATIONS ORGANISATION and Consulates or Embassies of any country located in the State, or International Crop Research Institute for Semi Arid Tropics, Hyderabad shall be refunded in such manner as may be prescribed.
10. (6) Where the authority prescribed fails to make a refund within the time specified under sub-section
11. (1) the amount of refund shall carry simple interest at the rate of one percent per month on the amount of the refund for the period of delay.
12. (7) A TOT dealer shall be eligible to adjust any excess tax paid by him in the subsequent returns or may claim refund at the time of cancellation of registration in the manner prescribed.

1. (1) Where the authority prescribed is required to refund an amount of tax to a VAT dealer or TOT dealer or any other dealer as a result of:-
   • (a) a decision under Section 31; or
   • (b) a decision of the Appellate Tribunal under Section 33; or
   • (c) a decision of the High Court under Section 35; such refund shall be made within a period of ninety days from the date of the receipt of the order.
2. (2) Where refund is not made within the stipulated time, as mentioned in sub- section
3. (1) the amount of refund shall carry interest at the rate of one percent per month for the period of delay. The interest in respect of part of a month shall be computed proportionately and for this purpose, a month shall mean a period of 30 days.

1. (1) The Commissioner or the authority prescribed shall have the power to adjust any amount due to be refunded against any tax, penalty and interest outstanding against a VAT dealer or a TOT dealer or any other dealer.
2. (2) Where an order giving rise to a refund is the subject matter of an appeal or further proceeding, or where any other proceeding is pending, and the authority prescribed is of the opinion that the grant of the refund is likely to adversely

affect the revenue, the authority prescribed may, with the previous approval of

the Deputy Commissioner, withhold the refund till such time as the Deputy Commissioner may determine.

1. (3) Where any demand of tax or penalty or both is disputed by a VAT dealer or TOT dealer before any appellate authority or Sales Tax Appellate Tribunal or High Court and the demand becomes finally due either partly or fully an interest

at the rate of one percent per month shall be charged from the date such tax or

penalty was originally due.