In the circular cited detailed instructions were
issued regarding the procedures for scrutiny of
returns, assessments, audit visits and audit assessments.
It was directed that wherever best judgment assessments
are necessitated under sub-section (3) of section
22 consequent on detection of defects on scrutiny
of the returns or for failure to file returns, the
Asst. commissioner (Assmt) or the Commercial Tax
Officer concerned should transfer the records to
the Audit Assessment wing and that the assessments
in such cases should be done by the Audit Officers.
The Audit Officers were required to do such assessments
without detriment to their normal function of Audit.
The Audit Assessment wing was also required to undertake
the audit of the assessments completed by the assessing
authorities under the KGST Act, 1963.
A review of the progress of the work of the Audit
Assessment wing shows that the Audit Assessment
itself will put heavy pressure on the Audit Officers.
At the same time if all the best judgment assessments
under section 22(3) are entrusted with the Asst.
Commissioners/ Commercial Tax Officers of the VAT
Circles, the pace of the scrutiny of the VAT returns,
which is already in arrears, will be further delayed.
Further proper scrutiny of accounts, whether in
connection with a best judgment assessment under
section 22(3) or an audit assessment under sub-section
(1) of section 24, will provide sufficient materials
for the work of the Audit Assessment wing. Considering
all the above aspects, the following further instructions
are issued:-
(1)
Where a dealer fails to respond to a notice under
sub-section (1) of section 22 and a best judgment
assessment under sub-section (3) of section 22 is
warranted which do not require scrutiny of accounts
(in cases where the materials available in the returns
and accompanying statements are sufficient for the
completion of the best judgment assessment) the
assessments shall be completed by the Asst. Commissioners/
Commercial Taxes Officers of the VAT Circle concerned.
(2)
In cases where the dealer fails to file returns
or scrutiny of the accounts becomes inevitable for
completion of best judgment assessments, the records
will be transferred to the Audit Assessment wing
for scrutiny of accounts and for making best judgment
assessments. While forwarding the records, the returns
statements and other materials, which would be helpful
in the best judgment, assessment (including records
for the immediate previous return period/years)
shall also be forwarded.
(3)
Where the records of the dealers who fails to file
returns intimation shall, invariably, be sent to
the Dy. Commissioner (Int) concerned for further
action, including inspection, if any, required.
(4)
The receipt of the Circular shall be acknowledged
by the Dy. Commissioners and get acknowledgment
from their sub-ordinates.
Sd/
Commissioner
