Non receipt of h forms

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S Kumar

export exe.

38 Points Posted on 16 August 2011

Hello,

We had exported medicines through a merchant exporter aginst Form H promise. Now the merchant exporter is unable to provide H forms for that particular period due to some problems at his end. Our sales assessement is underway and the sales tax officer is demanding H forms. My queries are as below

- What is the penalty if H forms are not submitted. What is the rate of duty applicable. Our company is based in gujarat.

- Can we show the sales tax officer proof of export and clear our assessement. Will he consider that instead of H forms.

- If the officers releases order asking us to pay the penalyt, what is the further process to appeal. What is the time limit etc.

- Will the exporter be legally liable to pay the penalty i.e can we file a case against him for non submission of H forms.

I would be very grateful if you can clarify on the above issues and provide some sales tax Act reference.

Regards,

Rahul R.

Replies (2)

Kapil Dev

Manager Indirect Taxes

54 Points Posted on 17 August 2011

In the absence of Form H your sale would attract VAT at normal rate. Request your buyer whether he can provide form C in that event your sale will be assessed at concenssion rate of tax under central sales tax act.

You should adduce all the alernative proof of export at assessment stage. It moght not give your benefit at assessment stage but it will certainly help you case at litigation stage.

The libilty of differential tax will arise in this case alongwith interest. But given the facts and circumstance of the case you may get waiver of interest at level of Tribunal or high court.

Your buyer is not legally bound to pay the penalty if any levied on you. But you can certainly move a civil court and file a case against him on the ground of breach of commercial terms and conditions