In FY 07-08 we have shown purchases from M/s XYZ pvt ltd ,thane, maharashtra of Rs.2 cr and xyz pvt ltd has closed down business and 25 offices all over india on 30th september 2011. no employee there ,no phone and no responses to emails. other companies have occupied the offices there. For the same period of 07-08 we have to take refund of rs 6 lacs from maharashtra vat department and now dept is insisting on 07-08 statement of xyz to process refund .Moreover they say that some problem in xys's vat return of 07-08 and so vat credit for all 2cr purchases will be disallowed amounting to 10 lacs( @ 5%) .. so after adjusting refund of 6lacs they will be issuing demand of rs4 lacs from us.sales tax department officials couldmt trace this company after repeated attempts.registrar of companies hsows one email id and defunct phone number.. mails are not replied when sent to that email id .
also in 07-08 MVAT was not computerised i think and dept says they do not have invoice wise details of xyz and so how can they be sure that all my purchases with that company are correct?
my question is that is my company at fault if the supplier does not submit proper return ? we have made all cheque payments to that company and have all proper tax invoices. is it that the officer wants his hands to be greased to issue us refund of 6 lacs?
please suggest what to do ASAP
CAclubindia
