Indirect Taxes

ASSESSMENT, RECTIFICATION AND APPEALS

Assessment (section 23)

Sr. No.	Section	Description	Notice Form	Time Limit for Passing Order	Post Assessment Remedy	Time Limit for Remedy	Form for Remedy
1.	23(1)	Ex parte Assessment, where return is not filed by dealer. Order is passed without giving reasonable opportunity of being heard to dealer.	NA	3 years from the end of F.Y., containing assessment period.	Pay taxes File return Automatically Asst. Order gets cancelled.	Refer Circular 12T of 2012. No time limit specified.	Normal return Forms.
2.	23(2)	Return filed on time but Commissioner needs to check the claims of return so submit all details as asked in notice.	301	4 years from the end of F.Y. containing assessment period.	Apply for cancellation as explained in Section 23(11) below. OR Rectification application u/s 24, if any mistake apparent from records. OR If aggrieved file appeal u/s 26, AND Apply for stay AND, Intimate Assessing Officer for stay & appeal.	30 days of the date of service of the Asst. Order. 2 years from the end of F.Y. in which any order passed has been served. 60 days of service of order. 30 days of service of order.	316 307 310 311 314
3.	23(2A)	Summary Assessment to be done on the basis of returns filed applicable from 1st April, 2012 New provision, inserted vide Maharashtra Tax Laws (Levy, Amendment and Validation) Act, 2016 (refer Circular No. 14T of 2016 dated 7-5-2016)	No Notice re-quired	4 years from the end of F.Y. containing assessment period. If no order is passed within aforesaid period than returns filed shall be deemed to have been accepted.	Conditions: Only Regd. Dealer eligble. All Return to be filed within time provided for revised return. Tax payable as per returns should be paid. AO to be satisfied about correctness, completeness of returns.
4.	23(3)	Return not filed by the prescribed date by the dealer.	301	5 years from the end of F.Y. containing assessment period.	Apply for cancellation as explained in Sec. 23(11) below. OR Rectification application u/s. 24, if any mistake apparent from records OR	30 days of the date of service of the Asst. Order. 2 years from the end of F.Y. in which any order passed has been served.'	316 307
					If aggrieved file appeal u/s. 26, AND Apply for stay, AND Intimate officer for stay & appeal.	60 days of service of order 30 days of service of order.	310 311 314
5.	23(3A)	Returns filed on time or returns not filed on or before prescribed date (Assessment for period ending on or up to 31-3-2008)	301	7 Years from the end of F.Y. containing the assessment Period.	Apply for cancellation as explained in Sec 23(11) below. OR Rectification application u/s. 24, if any mistake apparent from records. OR If aggrieved file appeal u/s. 26, AND Apply for stay, AND Intimate officer about stay & appeal	30 days of the date of service of the Asst. Order 2 years from the end of F.Y. in which any order passed has been served 60 days of service of order 30 days of service of order.	316 307 310 311 314
6.	23(4)	Failed to apply for registration within prescribed period or not registered at all though liable i.e. URD Asst.	301	8 years from the end of F.Y. containing the assessment period.	Apply for cancellation as explained in Sec . 23(11) below. OR Rectification application u/s 24, if any mistake apparent from records. OR If aggrieved file appeal u/s. 26, AND Apply for stay, AND Intimate officer about stay & appeal	30 days of the date of service of the Asst. Order 2 years from the end of F.Y. in which any order passed has been served. 60 days of service of order. 30 days of service of order.	316 307 310 311 314
7.	23(5)	Issued based/Transaction based Audit/ Asst. or during the course of any proceedings if the Commissioner is satisfied that there is tax evasion in any manner.	302	6 years from end of FY containing the said assessment period.	Apply for cancellation as explained in Sec 23(11) below. OR Rectification application u/s 24, if any mistake apparent from records. OR If aggrieved file appeal u/s 26, AND Apply for stay, AND Intimate officer about stay and appeal	30 days of the date of service of the Asst. Order 2 years from the end of F.Y. in which any order passed has been served. 60 days of service of order. 30 days of service of order.	316 307 310 311 314
8.	23(5A)	Closure of Assessment proceedings u/ss. 23(2), 23(3), 23(4), 23(5). New provision, inserted vide Maharashtra Tax Laws (Levy, Amendment and Validation) Act, 2016 (refer Circular No. 14T of 2016 dated 7-5-2016). Sub-section 5B states that the provisions of sub-section (5A) shall also be applicable to the assessment proceedings under sub-sections (2), (3), (4) or, as the case may be, (5) pending on the 1st April, 2016	No pres-cribed form. Only inti-mation.	Intimation to be sent for closure of proceedings without passing of order, at least 6 months prior to expiry of limitation period for said assessment proceeding.	Dealer should agree, pay tax with interest & file revised return u/s. 20(4)(c) within 30 days from date of receipt of intimation.	30 days from date of receipt of intimation
9.	23(6)	Commissioner of opinion that any turnover of sales or of purchase has not been disclosed or sales suppression or tax paid at lesser rate or wrongly set-off/ deduction claimed.	315	6 years from the end of the year containing assessment period.	Rectification application u/s 24, if any mistake apparent from records. OR If aggrieved file appeal u/s 26, AND Apply for stay, AND Intimate officer about stay & appeal.	2 years from the end of F.Y. in which any order passed by him has been served. 60 days of service of order. 30 days of service of order.	307 310 311 314
10.	23(7)	Fresh Assessment for giving effect to direction/findings of any order made under this Act or by Tribunal/ High Court/ Supreme Court.	Nil	36 months from date intimating the said findings or directions.	Nil	Nil	Nil
11.	23(8)	Calls for all records & pass order though in similar matter Tribunal has given decision against Commissioner/ State Government & S.G. has filed appeal.	Nil	No order of recovery till final decision.	Nil	Nil	Nil
12.	23(9)	Cancelled w.e.f. 26-6-2014
13.	23(10)	Dealer may be assessed under single notice & by single order, if assessed for more than one period covered by return so long all periods are comprised in one year.	Nil	Nil	Nil	Nil	Nil
14.	23(11)	Cancellation of Asst. Order passed u/s 23(2), 23(3), 23(3A), 23(4), 23(5).	NA	18 months from date/deemed date of serving cancellation order in Form 317.	Apply in Form 316 for cancellation of order ↓ Cancellation order within 3 months, if not cancelled than deemed to be cancelled at end of 3 months, ↓ Complete fresh Asst. within 18 months from the date / deemed date of service of the cancellation order.	30 Days from service of assessment order, 3 months from the end of the month in which application in Form 316 received from dealer.	316 317
15.	23(12)	Fresh order in place of order cancelled on application u/s. 23(11).			Complete Asst. within 18 months from the date / deemed date of service of the cancellation order.

RECTIFICATION OF MISTAKES (SECTION 24)

The Commissioner may, at any time within two years from the end of a financial year in which any order passed by him has been served, on his own motion, rectify any mistake apparent on the record, and shall within the said period or thereafter rectify any such mistake which has been brought to his notice within the said period (two years), by any person affected by such order.

A dealer seeking rectification shall file an application in Form 307 within two years from the end of financial year in which the said order has been served.

Provided that, no such rectification shall be made if it has the effect of enhancing the tax or reducing the amount of a refund or interest payable on refund, unless the Commissioner has given notice in writing in the prescribed form to such person of his intention to do so and has allowed such person a reasonable opportunity of being heard. An application for rectification shall not be rejected on the ground that there is no mistake apparent on record unless the person concerned has been given a reasonable opportunity of being heard.

In cases, where dues have arisen due to non-production of Declaration Forms, due to any reason, at the time of passing an order, such orders can also be rectified on bringing an application made by the dealer within the aforesaid period of two years from the end of financial year in which the said order was served. Provided that an appeal has not been preferred and only one such application can be entertained against such an order.

Further as per Trade Circular No. VAT/AMD-2019/1A/1/Adm-8/B-193 dated 06/05/2019, a new sub-section (2A) in sec. 24, a dealer can make an application to the assessing officer even if set-off claimed in the returns is disallowed in the assessment order for any reasons whatsoever. In such a situation too, a dealer has the option to either file an application for rectification or file an appeal. This amendment is explained as follows :

In case, set-off has been disallowed in the assessment order and if the dealer is in a position to produce the necessary evidence regarding eligibility of such set-off, then such a dealer can apply for rectification under sec. 24(2A) to the assessing authority.
Such an application Shall be made within two years from the end of the financial year, In which the said assessment order has been served.
The assessing officer, on verifying the evidence produced and on making necessary enquires, can allow such set-off and rectify the assessment order, if the claim for set-off is confirmed.
Dealer, Who desires to make such an application u/s 24(2A) should not have filed an appeal against such assessment order.

In case, any dealer, who has already filed an appeal desires to make an application u/s 24 (2A) to the assessing authority then he can make such application only after he withdraws the said appeal completely. If the dues, as per the said assessment order were earlier stayed by the appellate authority, then such dues shall not be recovered till the passing of rectification order u/s 24 (2A)

Appeals (Section 26)

Section 26 permits a dealer to prefer appeal against any order passed under MVAT Act, Rules and/or notifications (except as provided in section 85).

All such appeals have to be submitted, in the prescribed manner, in prescribed form (Form 310), after paying prescribed fees and within the permitted time limit of 60 days from the date of receipt of the order appealed against.

The First Appeal against an order passed by Sales Tax Officer or Assistant Commissioner of Sales Tax shall lie to the Deputy Commissioner of Sales Tax (Appeals).

The First Appeal against an order passed by a Deputy Commissioner or Sr. Deputy Commissioner of Sales Tax shall lie to the Joint Commissioner of Sales Tax (Appeals). The First Appeal against an order passed by a Joint Commissioner or Sr. Additional Commissioner or the Commissioner of Sales Tax shall lie to the Tribunal.

In the case of an order passed, in appeal, by a Deputy Commissioner or a Joint Commissioner of Sales Tax, the Second Appeal shall lie to the Tribunal.

A dealer seeking stay against the order, shall submit an application, in Form 311, for grant of stay by the Appellate Authority. The Appellate Authority, after examining the matter and circumstances may stay the order appealed against either in full or part with such conditions or restrictions as it may deem necessary including a direction for depositing of a part or whole of the disputed amount by the appellant.

Further, the provisions of sub-sections (6A), (6B) and (6C) shall be applicable for any appeal, against all such orders, referred to in those sub-sections, irrespective of the period to which the order, appealed against, relates or irrespective of the date on which the proceedings in respect of such order have commenced. In view of this explanation, stipulated payment, as per provisions of sec. 26(6A) and sec. 26(6B) continues to be mandatory for filing an appeal before the appellate authority and the Tribunal, against orders passed on or after the 15th April 2017, irrespective of the period to which the order, appealed against relates or the date on which proceddings, in respect of such order has commenced.

Fees Payable

(a)	Where the quantum of relief sought is less than rupees one lakh	₹ 100/-
(b)	Where the quantum of relief sought is rupees one lakh or more	1/10th per cent of the amount in dispute (subject to maximum ₹ 1,000/-)
(c)	In case of appeal not covered by (a) or (b)	₹ 100/-
(d)	Application for grant of stay (Form 311)	₹ 25/-

Note: Wherever the amount of fees payable is up to ₹ 100/- only, the same can be paid by affixing court fee stamps of same value. Otherwise all such fees so payable shall be paid into the Government Treasury in the same manner as taxes are being paid. (In challan Form No. 210/MTR-6 to be paid through authorised banks).

Other Amendments

A technical amendment has been done to sec.10 of the MVAT Act w.e.f. 1st July 2017 to provide that the officers, appointed by the state government under the MGST Act shall be deemed to be officers appointed under the MVAT Act.