Whereas the Government is of the opinion that for the reasons recorded in the sub-joined schedule, it is necessary so to do in the public interest-

Now, therefore, in exercise of the powers conferred by section 42-A of the Jammu and Kashmir Value Added Tax Act, 2005, the Government hereby order:-

1. that the assessed/unassessed cases for the period 2005-06 where demands have been raised or are likely to be raised due to technical defaults enunciated hereinafter shall be reviewed by the jurisdictional Assessing Authorities either of their own motion after seeking permission from Additional Commissioner Commercial Taxes of respective divisions or on an application from the dealer on plain paper affixed with court fee stamp worth rupees ten;

2. that wherever necessary the jurisdictional Assessing Authorities shall summon such dealers and require them to produce such books of accounts and other documentary evidence.

3. that after due satisfaction and, wherever necessary, verification of books of accounts and scrutiny of documentary evidence produced, the jurisdictional Assessing Authority shall pass an order in writing condoning the technical default/defaults involved therein and reduce the demand proportionately on account of tax, interest and penalty as the case may be and such order may be passed within 15 days of the last hearing;

4. that the minimum period of notice for summoning a dealer and/or production of books of accounts/documentary evidence shall be 15 days from the service of such notice.

5. that all the provisions of the aforesaid Act relating to appeal, recovery, reassessment, rectification and refund shall apply to the orders passed under this scheme.

6. that no refund shall be allowed on account of any payment already made in consequence of demand created as a result of technical default during 2005-06; and

7. that the following defaults shall be considered as technical defaults for the purposes of this notification in respect of traders as well as industrial unit holders:-

i failure / delay in seeking/granting registration under the J&K VAT Act, 2005;

ii. non-inclusion of goods in the certificate of registration;

iii. non-filing/late filing of returns/revised returns/audited reports as required under Section 60 of J&K VAT Act, 2005

iv. non-filing, late filing of claims of set off credit for the taxable stock held on the appointed day by dealers registered or those who have sought registration within three months from the appointed day provided such stocks hace been disclosed by the dealers in their trading accounts filed for 2005-06;

v. non-submission / late submission of statutory or non-statutory forms / annexure / statements / affidavits / documents;

vi. claim of input tax on improper invoice and;

vii. any other default which in the opinion of Commissioner Commercial Taxes is of technical nature. For this purpose the Assessing Authority concerned shall refer the matter to the Commissioner whose decision to the effect whether the same constitutes a technical default or not, shall be final.

This scheme shall commence from the date of issuance of this notification and shall close on 31st December, 2010.

By Order of the Government of Jammu and Kashmir.