Office of the
Commissioner of Commercial Taxes
Andhra Pradesh :: Hyderabad.
Circular No. 14 CCT's Ref. No. AIII(1)/116 /2012. Dated 27th May, 2012
Sri Suresh Chanda, I.A.S., Commissioner of Commercial Taxes
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Sub:- APVAT Rules, 2005 – Rule 14 (5) and (8) - Cancellation of Registrations – Withdrawl of VAT 124 and VAT 125 - Certain instructions – Issued – Reg
The attention of all the Deputy Commissioners (CT) in the State is invited to the subject matter cited.
It is observed that Forms VAT 124 and VAT 125 are issued as a matter of routine, while cancelling the VAT registrations. It should be noted that no order, affecting the interests / rights of the dealer, shall be vague and issued without giving opportunity to dealer and such order should be well reasoned and self explanatory, since they are appealable and subjected to judicial scrutiny. VAT 124 and 125 does not full fill that requirement adequately.
Therefore, all the Deputy Commissioners (CT) in the State are directed to instruct the assessing authorities under their control to necessarily issue show cause notice in writing, mentioning the omissions and violations on the part of the Dealer, wherever the cancellation of the registration is proposed. The show notice must end with , "… show cause within 15 days of receipt of this notice why the Registration should not be cancelled". Further, the assessing authorities should be instructed to discuss the objections, filed, if any, by the dealer against the proposed cancellation of the Registration Certificate, while issuing final order which should be a speaking order. After issue of cancellation order, RC should be cancelled in VATIS with effect from final order date.
Same process will apply for TOT dealers also.
The VAT Form 124 and 125 are withdrawn.
The receipt of the instructions shall be acknowledged immediately.
Sd/- Suresh Chanda,