Uttar Pradesh VAT Rules

Security in the interest of revenue

1. Where it appears necessary to the registering authority so to do -
   • for the proper realisation of any tax, penalty or other sums due or payable under this Act; or
   • for the proper custody or use of forms prescribed under this Act or the rules framed thereunder; or
   • as a condition for the grant or, as the case may be, the continuance in effect of registration certificate,

     it may, by an order in writing and for reasons to be recorded therein, direct, before the grant or as the case may be, at any time while such certificate is in force, that the dealer or the person concerned shall furnish, in the prescribed manner and within such time as may be specified in the order such security or, if dealer or person concerned has already furnished such security, additional security of any nature, as may be specified, for all or any of the aforesaid purposes.

2. No dealer or the person concerned shall be required to furnish any security or additional security under sub-section (1) by the registering authority unless he has been given an opportunity of being heard, and the amount of such security or additional security that may be required to be furnished by any dealer shall also in no case exceed the tax payable, in accordance with the estimate of such authority on the turnover of the dealer for the assessment year in which such security is required to be furnished.
3. Notwithstanding anything contained in sub-section (1) or sub-section (2) the Commissioner may, in respect of any goods notified by the Government in this behalf, by a general order in writing, direct that a cash security of such amount as may be specified in such order shall be required to be furnished by a dealer or person requiring any of the forms prescribed under this Act.
4. Where the security furnished by a dealer or person concerned under sub-section (1) is in the form of a surety bond and any surety dies or becomes insolvent, the dealer or the person concerned shall, within thirty days of the occurrence of any of the aforesaid events, inform the authority granting the certificate under section 17 or issuing the forms referred to in clause (b) of sub-section (1), as the case may be, and shall within sixty days of such occurrence furnish a fresh surety bond or furnish in the prescribed manner other security for the amount of the bond.
5. The assessing authority may, by order and for good and sufficient cause, forfeit the whole or any part of the security furnished by a dealer or the person concerned -
   • for realising any amount of tax, penalty or other amount payable by the dealer or the person concerned; or
   • if any dealer or person concerned is found to have misused any of the forms referred to in sub-section (1) or to have failed to keep them in proper custody;

     Provided that no order shall be passed under this sub-section without giving the dealer or the person concerned an opportunity of being heard.

6. Where by reason of an order under sub-section (5) the security furnished by any dealer or the person concerned is rendered insufficient, he shall make up the deficiency in such manner and within such time as may be directed by the assessing authority.
7. The registering authority may -
   • refuse to grant; or
   • suspend any such certificate already issued; or
   • refuse to issue any of the forms referred to in sub- section (1) or sub-section (3);

     to any dealer or the person concerned, who has failed to comply with an order under sub-section (1) or sub-section (3), or with the provisions of sub-section (4 ) or sub-section (6 ), until the dealer or the person concerned has complied with such order or such provisions, as the case may be:

     Provided that no order under clause (a) or clause (b) above, shall be passed without giving the dealer or the person concerned an opportunity of being heard.

8. The registering authority may, on application by the dealer or the person concerned, order the return of the surety bond or refund any amount or part thereof deposited by way of security by the dealer or the person concerned under this section or under any other section if it is not required for the purpose of this Act.
9. An appeal under section 59 shall lie against an order passed under this section.
10. Any person aggrieved by an order of the appellate authority may, within ninety days of the service of the order on him but after furnishing the security, file an appeal before the Tribunal under section 61.
11. The provisions of this section shall mutatis mutandis, apply in relation to security required to be furnished under the order of any authority under this Act or the Court.

Quoting of Taxpayers' Identification Number, etc.

1. Every registered dealer shall quote his Taxpayers’ Identification Number, allotted to it on his registration certificate, on all correspondence made, statement and return submitted, information furnished and documents issued by him and on each copy of treasury challan while depositing amount of tax, fee or any other dues under this Act.
2. While making purchases of any taxable goods, if purchaser of such goods demands, the selling dealer shall show his registration certificate.
3. While making purchases of any taxable goods, every purchasing dealer shall give his name, address and Taxpayers’ Identification Number, if any, to the selling dealer and the selling dealer shall mention such particulars on tax invoice, sale invoice, transport memo, challan or transfer invoice, as the case may be, issued by him.
4. Every registered dealer shall present registration certificate issued to him before an officer or official of the State Government whenever required by such officer or official in connection with any proceedings under this Act.
5. Every dealer who possesses Permanent Account Number allotted under the Income-Tax Act, 1961, shall mention such number on annual return of turnover and tax and shall furnish such number whenever required by any authority under this Act.