Sales tax recovery notice received for the year 2001-02

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 June 2011 Hello Experts,

We have received sales tax recovery notice for Rs.2,50,000 for the period of FY 20001-02.

As we were not having any domestic sale during the said period we have not attended the hearing & overlooked the same.

Now sales tax dept has attached our Bank accounts for the said amount. after this we have made an appeal & got the Interim stay order against this notice.This stay order has also been expired few days before & now sales tax is not giving any further extension to stay order. We are very much worried that Bank will issue a DD to sales tax for the said amount & we will loose this amount.

Please note that actually we are not liable to pay any sales tax as no sales where there during 2001-02.

Please advise if bank issue a DD to Sales tax dept, can we still get refund of the same ? Can we adjust against our future VAT / CST liability ??

Please advise at earliest.

Thanks a lot in anticipation.

U S Sharma

U S Sharma (Expert)

30 June 2011 no, such amounts are part of recovery, and is non refundable
you have to take interim stay from high court of your place, and then persue the case in high court only.

as you habe obtained sales tax number and were bound to file returns, even nil ......... if you have done filing of nil return, then there is little hope for your win the case.

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