GOVERNMENT OF ANDHRA PRADESH

COMMERCIAL TAXES DEPARTMENT

PROCEEDINGS OF THE

AUTHORITY FOR CLARIFICATION AND ADVANCE RULING

(Under Section 67 of APVAT Act, 2005)

Present: Sri G. Lakshmi Prasad, Addl. Commissioner (Policy)

Dr. K. Raghavaiah, Jt. Commissioner (Audit - II )

Sri. D.Venkateswara Rao, Jt. Commissioner ( Legal)

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A.R.Com/ 78 /2007. Dated : 29th July, 2009.

Ref:- CCT's.Ref.No: PMT/P&L/A.R.Com/2005, Dated 13-04-2005.

O R D E R:

I.M/s Zuari Cement Ltd. Krishnanagar, Yerraguntla, (TIN 28030153712 .) have filed an application and sought clarification and advance ruling on the following items under Section 67 of APVAT Act, 2005 read with Rule 66(2)(i) of APVAT Rules, 2005 along with the application fee of Rs.1,000/-

II. They sought clarification on the following:

1) Whether the assessing authority can keep the files without responding to the request of the applicant to transfer the registration files to the assessing authority over its office in Hyderabad office.

2) Whether pre-deposit of disputed tax in the case of taxing in deferment period is to be deposited or to be deferred as in the case of tax payment.

III. The applicant submitted the following documents:

Writ up on the issue

IV. Mr. A.C.Gangaiah, Chartered Accountant, authorized representative, appeared for hearing and explained the case.

V. Both the issues have been examined with reference to the provisions of the APVAT Act and Rules and the ruling is given as under:

VI. As per sub-Rule (1) of Rule 13 of the APVAT Rules, dealer registered under Section 17 shall notify the authority prescribed on Form VAT 112 or on Form VAT 051 as the case may be, regarding the intention of change of his place of business from the jurisdiction of one authority to the jurisdiction of authority in the State. As per Section 17 read with Rule 59, the authority, prescribed for VAT registration, is the CTO of the circle concerned and for TOT registration, the ACTO of the circle authorized by the CTO of the circle.

As per sub-Rule (3) (b) of Rule 3 , the authority, prescribed to receive an application on Form VAT 112 or on Form TOT 051, as the case may be, for a change of place of business shall, on approval of the application, remove such registration and shall be transferred to the authority, prescribed, in whose jurisdiction the proposed new place of business is sought to be established. Hence the application for transfer shall be made to the Registering authority prescribed.

According to the second proviso to the sub-section (1) of Section 31 of the APVAT Act, 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 installments 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 admitted tax by the appellant in the relevant tax period, in respect of which the appeal is preferred.

Further, according to first proviso to sub section (2) of Section 33, no appeal passed under Section 31 shall be admitted unless it is accompanied by satisfactory proof of the payment of fifty percent of the tax ordered by the Appellate Authority under Section 31.

Further, according to second proviso to sub section (2) of Section 33, no appeal against the orders passed under sub-section (2) of Section 32 shall be admitted under sub- section (1) or (2) unless it is accompanied by satisfactory proof of payment of the tax, admitted b y the appellant to be due or such installments thereof, and twenty five percent of the difference of the tax, ordered by the revisional authority under sub-section (2) of Section 32, and the tax, admitted by the appellant.

Hence, in all the above cases, the appeals shall not be admitted unless the applications are accompanied by the satisfactory proof of payment of 12.5% or 25% or 50%, as the case may be, and the admitted tax. The payment of 12.5% or 25% or 50% taxes and the admitted taxes is a precondition for admission of appeals and such taxes cannot be shown against deferment amount treating them as having been paid for admission of appeals.

Therefore, it is clarified that, the amount calculated @ 12.5% or 25% or 50% as the case may be, of the disputed tax shall be actually paid for the purpose of admission of appeal and the notional or deemed payment, adjusted against the eligible amount of industrial incentive, is not permissible as per the relevant provisions of the APVAT Act, 2005.

NOTE:- An appeal against this proceedings can be filed before the Sales Tax Appellate Tribunal, A.P. Hyderabad within 30 days of this ruling.

Addl/Jt.Commissioner