DVAT Instructions for Time bound & Speedy disposal of all refund claims

Speedy disposal of all Refund claims

In the wake of ever-increasing pendency of Refund cases, directions of the Hon’ble High Court and with a view to provide impetus to the disposal of Refund cases so as to put them on fast track, it has been decided by the DVAT Department to dispose off all pending refunds in a time bound manner.

A. DVAT (Policy) Circular No. 15/2016-2017 dt. 3 Oct. 2016*

In terms of section 38 of the DVAT, Act 2004 and rules made there-under, all refund cases pertaining to the wards/zones are required to be disposed off by the concerned Ward Incharge/ Zonal Incharge within the stipulated period of two months. In the wake of ever-increasing pendency of Refund cases, directions of the Hon’ble High Court and with a view to provide impetus to the disposal of Refund cases so as to put them on fast track, it has been decided at the departmental level to dispose off all pending refunds in a time bound manner as detailed below.

(A) Refunds upto Rs. 50000Within 02 months
(B) Refunds of amounts between Rs. 50,000 To Rs. 100,000Within 04 months
(C) All Refund cases upto Rs. 500,000Within 06 months
(D) All other pending Refund casesWithin 12 months

All the Ward/Zonal Incharges are hereby directed to submit a weekly report from now on to the CVAT containing inter-alia details of refund cases cleared by them. Any dereliction Of the above directions shall be viewed seriously.

DVAT Policy Circular No. 15/2016-17 dt. 3 Oct. 2016

* DVAT Deptt has withdrawn above Circular No. 15/ 2016-17 dt. 3 Oct. 2016, vide Circular No. 16/2016-17 dt. 4 Oct. 2016. Therefore the same is void ab-initio.

DVAT Policy Circular No. 16/2016-17 dt. 4 Oct. 2016

B. DVAT Instructions/ Order dt. 21 July 2016

The DVAT Policy Branch has directed that all refunds that are processed and found in order in respect of a registered assessee should be released in a time bound manner, as under:

DVAT (Policy Branch) Order dt. 21st July, 2016

Whereas Refunds are required to be processed strictly in accordance with the provisions as laid down u/s 38 of DVAT Act and Rule 34 made there under and two circulars have, in this regard, already been issued vide No. 6 of 2014-15, and vide No.12 of 2015-16 respectively;

And whereas, Recently, in the case of M/s New Age Generators in the W.P.(C) 5250/2016, the Hon’ble High Court has observed that processed refunds in the case of an assessee arc being issued only once in a week due to certain security checks in the system of the Department. The Hon’ble High Court has, further, observed that restricting issuance of refunds to an assessee only once in a week is not in accordance with the provisions of Section 38(3) of DVAT Act.

Now, therefore, in the light of observations of Hon’ble High Court, it is directed that all refunds that are processed and found in order in respect of a registered assessee should be released in a time bound manner. Further, in case of multiple refunds of the same assessee if are needed to be issued within a week, the prior approval of the concerned zonal officer should be taken by the Ward Incharge. System branch is directed to make necessary changes in the workflow and security checks to incorporate these provisions. The necessary software changes may be carried out as expeditiously as possible.

Non compliance of the above instructions shall be viewed seriously.

DVAT (Policy) Order dt. 21 July 2016

Leave a Reply