Uttar Pradesh VAT Rules

Composition of offences

The assessing authority may accept from any person who has committed or is reasonably suspected of having committed an offence under this Act, by way of composition of such offence -

1. Where the offence consists of failure to pay any tax recoverable under this Act, a sum of money not exceeding double the amount of tax in addition to the tax so recoverable.
2. Where the offence consists of an evasion of any tax recoverable under this Act, a sum of money not exceeding Rupees 5000 (five thousand) or triple the amount of tax recoverable whichever is greater in addition to the amount of the tax recoverable;
3. Where the offence consists of import or transport or abetment to import or transport of any goods in contravention of the provisions of section 50 or section 51, a sum of money not less than the amount of tax that can be evaded and not exceeding three times of the amount of such tax or forty percent of the value of goods whichever is higher.

Appeal Review And Revision

Review by assessing authority

1. Where in any assessment order amount of tax has been assessed in excess of amount of tax admitted by the dealer only on the grounds of non-submission of any form of declaration or certificate prescribed for seeking either exemption from tax or reduction in rate of tax, and where time for submitting such form or certificate, on the application of the dealer could not be extended for any reason by the assessing authority, the assessing authority may, on the application of the dealer, review such assessment order after expiry of a period of six months but before expiry of period of one year from the date of service of such order on the dealer to allow him the benefit on account of declaration form or certificate submitted within six months from the date of service of order subject to the following conditions: -
   • The dealer informs in writing to the assessing authority of his intention of submitting such form of declaration or certificate within thirty days from the date of service of order on him;
   • The dealer furnishes an affidavit to the effect that he has not filed an appeal against the assessment order;
   • The dealer furnishes security of disputed amount of tax to the satisfaction of assessing authority;
   • The dealer has deposited admitted tax within thirty days from the date of service of order on him; and
   • Forms of declaration or certificates submitted by the dealer are found in order;
2. Where any dealer has fulfilled conditions referred to in clause (i) to clause (iv) of sub-section (1), the assessing authority may stay the recovery of disputed amount of tax till the disposal of review application.

Appeal

1. Any dealer or other person aggrieved by an order made by the Assessing Authority, other than an order mentioned in sub-section (7) of section 48, section 58 or section 65 may, within thirty days form the date of service of the copy of the order, after serving a copy appeal memo on the Assessing Authority or the Commissioner, appeal to such authority (herein after referred to as appellate authority), as may be prescribed.
2. Where an appeal has been filed against an order referred to in sub-section (1), the Commissioner may apply to the appellate authority to examine the legality and propriety of such order on such point as may be mentioned in the application. A copy of such application shall be served on the appellant and shall be decided along with the appeal filed by the appellant:

   Provided that no application for examination of legality and propriety shall be entertained after the disposal of appeal.

   Provided further where the Commissioner has filed an application, the appellant shall not be entitled to withdraw appeal filed by him.

   Explanation - For the purpose of this section Commissioner includes an officer authorised to file appeal on behalf of Commissioner before the Tribunal under section 61.

3. No appeal against an assessment order under this Act shall be entertained unless the appellant has furnished satisfactory proof of the payment of the amount of tax or fee due under this Act on the turnover of sale or purchase, or both, as the case may be, admitted by the appellant in the returns filed by him or at any stage in any proceedings under this Act, whichever is greater.
4. The appeal shall be in the prescribed from and shall be verified in the prescribed manner.
5. The Appellate Authority may, after calling for and examining the relevant records and after giving a reasonable opportunity of being heard -
   • in the case of an order of assessment and penalty.-
     1. confirm or annul such order ; or
     2. vary such order by reducing or enhancing the amount of assessment or penalty, as the case may be, whether such reduction or enhancement arises from a point raised in the grounds of appeal or otherwise ; or
     3. set aside the order and direct the Assessing Authority to pass a fresh order after such inquiry as may be specified ; or
     4. direct the Assessing Authority to make such inquiry and to submit its report within such time as may be specified in the direction or within such extended time as it may allow from time to time, and on the expiration of such time the Appellate Authority may, whether the report has been submitted or not decide the appeal in accordance with the provisions of the preceding sub-clauses; or
   • in the case of any other order-
     1. confirm, cancel or vary such order; or
     2. set aside the order and direct the Assessing Authority to pass a fresh order after such inquiry as may be specified,

        Provided that nothing in this sub-section shall preclude the Appellate Authority from dismissing the appeal at any stage with such observations as it deems fit where the appellant applies for withdrawal of the same and no request for examination of legality or propriety of order under appeal has been made by the Commissioner.

6. The appellate Authority, may, on the application of the appellant and after giving the Commissioner a reasonable opportunity of being heard stay the operation of order appealed against or the realisation of the disputed amount of tax, fee or penalty payable by the appellant till the disposal of the appeal ;

   Provided that –

   • where an order under appeal does not involve any dispute about tax, fee or penalty, appellate authority may stay the operation of such order till the disposal of appeal subject to such conditions as it may deem fit, including condition of furnishing of security in cash;
   • where an order under appeal involves dispute about tax, fee or penalty, no stay order shall remain in force after thirty days from the date of on which the same has been granted, if the appellant, does not furnish security to the satisfaction of the Assessing Authority for payment of the amount, the realisation whereof has been stayed within the aforesaid period of thirty days;
   • no such application shall be entertained unless it is filed along with the memorandum of appeal under sub-section (1):
7. Section 5 of the Limitation Act, 1963, shall apply to appeals or other applications under this section.
8. The appellate authority shall be under the superintendence and control of the Commissioner:

   Provided that in the exercise of such superinten

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