Works Contract rate charged wrongly (West Bengal VAT)

[Prasun Bhuit]

We charged a vat of 5% on a product. Last year the Department assessed that 13.5% should have been charged and claimed the excess tax. We appealed and submitted before the concerned authority with documents and other proofs, that the material tax slab should be 5%. Finally the Jt Commissioner, satisfied with all evidences, ordered that the vat should be 5% as charged by us and not 13.5% as claimed by the Department.

This year, again the department do the same thing.

My question is, while one verdict was given for an appeal before by the same department, can they again pass the same erroneous order.

Every time, we should not be expected to appear before the same authority for the same reason, because this costs us money and time and distupting our business activity.

And finally I want to ask my learned expert team, what should I do now. Is there any provision to go directly to any court.

[KASTURI SETHI]

The Department has right to file appeal against order of Joint Commissioner because the department feels aggrieved with the decision of Joint Commissioner thinking that it is incorrect and and unlawful. The Department will continue issuing recurring show cause notice until justice is done to the department. If the Department goes to Supreme Court, SCNs will be issued till the final decision.

The department is legally correct.

AI Summary

Right to appeal permits recurring show cause notices pending final appellate determination and further proceedings.
The revenue retains a right to appeal against the Joint Commissioner's order and may continue to issue recurring show cause notices until a final appellate determination is reached; recurring proceedings and appeals are measures available to the tax administration and such notices will persist pending ultimate resolution.