Whereas the State Government considers it necessary that the following amendments in the Madhya Pradesh Vat Rules, 2006 should be made at once without previous publication in the official Gazette;

Now, therefore, in exercise of the powers conferred by section 71 of the Madhya Pradesh Vat Act, 2002 (No. 20 of 2002), the State Government, hereby, makes the following further amendments in the Madhya Pradesh Vat Rules, 2006, namely:-

AMENDMENTS

In the said rules,-

1. For rule 4, the following rule shall be substituted, namely:-

"4. Constitution of the Appellate Board and its functions.

(1) The Appellate Board shall consist of a Chairman and such number of members as may be appointed by the State Government.

(2) The Chairman of the Appellate Board referred to in sub-rule (1) shall be appointed by the Government.

(3) (a) The members of the Appellate Board referred to in sub-rule (1) shall be appointed by the Government on the recommendation of a selection committee consisting of the following :

(i) Chief Secretary, Government of Madhya Pradesh - Chairman

(ii) Chairman, Appellate Board - Member

(iii) Principal Secretary, Government of Madhya Pradesh, Law and Legislative Affairs Department - Member

(iv) Principal Secretary, Government of Madhya Pradesh, Commercial Taxes Department - Member secretary

(b) The selection shall be made in accordance with the manner and procedure as may be decided by the selection committee.

(4) The Chairman of the Board shall draw monthly salary and allowances payable to the Chief Secretary less the monthly pension being paid to him.

(5) A member of the Board who is on deputation from the Madhya Pradesh Higher Judicial Service shall draw monthly salary and allowances payable to him as a member of that Service:

Provided that on the date of superannuation in the parent service, the member shall cease to be member of his parent service, but shall continue as member of the Board :

Provided further that if the Member is a retired member of the Madhya Pradesh Higher Judicial Service, he shall draw monthly salary and allowances payable to him at the time of superannuation less monthly pension being paid to him.

(6) A member of the Board who was / is not a member of the Madhya Pradesh Higher Judicial Service, shall draw monthly salary and allowances payable to an officer of the rank of the Secretary to the State Government:

Provided that if the member has already retired from the Madhya Pradesh State Taxation Service before his appointment as a member of the Board, he shall draw monthly salary and allowances payable to the Secretary less monthly pension being paid to him.

(7) A working member of the Board who fulfills the qualification as required under sub-section (7) and (8) of section 4, shall be eligible to draw salary and allowances in accordance with the provisions of sub-rule (5) and (6).

(8) A serving member of the Madhya Pradesh State Taxation Service on being appointed as a member of the Board, shall be deemed to have retired from the service on the date he assumes the charge of member, but his subsequent service as a member shall be counted as his service in the Madhya Pradesh State Taxation Service for pension and retirement benefits under the rules applicable to him.

(9) Subject to the provisions of sub-rule (6), the other conditions of service of the members appointed from the State Service, shall be regulated by the rules applicable to the members of that service.

(10) A member of the Board may at any time tender his resignation from the post and such resignation shall take effect from the date of its acceptance by the State Government.

(11) The Headquarters of the Appellate Board shall be at Bhopal.

(12) (a) Subject to the provisions of section 4-B, the functions of the Appellate Board under the Act and the rules made thereunder may be discharged by any of the members sitting in single Bench, or in a Bench of two members, or a larger Bench, as may be constituted by the Chairman.

(b) The Chairman shall be competent to transfer a pending case/ proceeding from one Bench to another Bench.

(c) The larger Bench presided over by the Chairman shall hear and decide an appeal if it--

(i) pertains to classification of goods ;

(ii) pertains to a dealer whose total turnover as computed by the Assessing Officer is rupees fifty crores or more ;

(iii) is against the order of the Commissioner.

(d) When the Chairman is unable to discharge his functions owing to absence, illness or any other cause, any member can be authorised by the State Government to discharge the functions of the Chairman and during this period that member shall have all the powers vested in the Chairman under the Act and the rules made thereunder.

(13) (a) The State Government shall determine and category of the officers and employees required to assist the Appellate Board in the discharge of its functions and provide the Appellate Board such officers and other employees, as it may think fit.

(b) The officers and other employees of the Appellate Board shall discharge their functions under the general superintendence of the Chairman.

(c) The salaries, allowances and conditions of service of the officers and other employees of the Appellate Board shall be such, as the State Government may, by order, specify. ".

2. After Chapter II, the following Chapter shall be inserted, namely:-

"CHAPTER II-A

4-A. Sitting of Bench.

A Bench shall hold its sittings at its headquarters or at such other place or places as may be authorised by the Chairman.

4-B. Powers of Bench.

(1) Subject to the provisions of section 4-B, a Bench shall hear and determine such appeals and applications made under the Act as the Chairman may by general or special order direct.

(2) Where there are two or more Benches of the Appellate Board working at a place, the Chairman or the senior most member present at the place may transfer an appeal or an application from any one of such Benches to any other.

4-C. Powers and functions of the Registrar.

(1) The Registrar shall have the custody of records of the Appellate Board and shall discharge such other functions including weeding out of old records as may be assigned to him under these rules by the Chairman or senior member of the Bench.

(2) Subject to any general or special order of the Chairman, the Registrar shall have the following powers and duties, namely:-

(i) to receive all appeals and miscellaneous applications for stay as well as the other documents including application for early hearings, transfer of appeals, applications for adjournment;

(ii) to endorse on such appeals and applications the date of the receipt for the purpose of calculating limitation ;

(iii) to scrutinize all appeals and applications so received to find out whether they are in conformity with rules;

(iv) to point out defects in such appeals and applications to the parties requiring them to rectify by affording reasonable opportunity and, if within the time so granted defects are not rectified, to obtain the orders of the Bench for the return of the appeals and applications;

(v) to check whether the appeal or appeals are barred by limitation and if so, intimate the appellant and place the matter before the Bench for orders;

(vi) to send the memo of appeals and applications along with enclosures to the respondents within the reasonable time;

(vii) subject to the directions of the Chairman and senior member of the Bench, to fix the date of hearing of the appeals and applications and direct the issue of notices therefor;

(viii) to ensure that sufficient number of cases are fixed before the Bench or Benches under the directions of the Chairman or senior member, as the case may be;

(ix) to bring on record legal representative, in case of death of any appellant to the proceedings;

(x) to verify the service of notice or other processes and to ensure that the parties are properly served and after obtain the orders of the Bench whenever required for substituted service;

(xi) to requisition records from the custody of any authority;

(xii) to allow inspection of records of the Appellate Board;

(xiii) to return the documents filed by any authority on record of the Bench;

(xiv) to consolidate the appeals relating to the same appellant or the same issue or for any reason on the direction of the Chairman or senior member;

(xv) to fix cases out of turn on the direction of the Chairman or senior member;

(xvi) to certify and issue copies of the records of the Appellate Board to the parties;

(xvii) to grant certified copies of the documents filed in the proceedings to the parties, in accordance with the rules;

(xviii) to grant certified copies of the orders of Appellate Board for publication, in accordance with the rules;

(xix) to segregate cases to be heard by single member and fix them for hearing separately;

(xx) to ensure that remand reports are submitted in time whenever called for by the Bench by issuing necessary reminders to the authority concerned;

(xxi) to obtain orders of the Bench on applications for withdrawal of appeals and applications and put up before the Bench.

4-D. Procedure for filing appeals.

(1) A memorandum of appeal to the Appellate Board shall be presented by the appellant in person or by an agent to the Registrar at the headquarters of the Appellate Board at Bhopal or to an officer authorised in this behalf by the Registrar, or sent by registered post addressed to the Registrar or to such officer.

(2) A memorandum of appeal sent by post under sub-rule(1) shall be deemed to have been presented to the Registrar or to the officer authorised by the Registrar, on the day on which it is received in the office of the Appellate Board at Bhopal, or, as the case may be, in the office of such officer.

4-E. Date of presentation of appeal.

The Registrar, or, as the case may be, the authorised officer, shall endorse on every memorandum of appeal the date on which it is presented or deemed to have been presented under rule 4-D and shall sign the endorsement.

4-F. Memorandum of appeal.

Every memorandum of appeal shall be in Form 43 and shall set forth concisely and under distinct heads, the grounds of appeal without any argument or narrative and such grounds shall be numbered consecutively.

4-G. What to accompany memorandum of appeal.

(1) Every memorandum of appeal shall be in duplicate and shall be accompanied by two authenticated copies of the order appealed against and a copy of the Challan in Form 26 or e-Receipt in Form 26-A in proof of payment of the amount required to be paid, in accordance with the provisions of sub-section(6) of section 46 .

(2) In the case of appeal against the order of penalty, the memorandum of appeal shall also be accompanied by two copies of the assessment order, if any.

(3) The Appellate Board may in its discretion accept a memorandum of appeal which is not accompanied by all or any of the documents referred to in sub-rule (1).

4-H. Filing of affidavits.

Where a fact which cannot be borne out by, or is contrary to, the record is alleged, it shall be stated clearly and concisely and supported by a duly sworn affidavit.

4-I. Grounds which may be taken in appeal.

The appellant shall not, except by leave of the Appellate Board, urge or be heard in support of any ground not set forth in the memorandum of appeal, but the Appellate Board, in deciding the appeal, shall not be confined to the grounds set forth in the memorandum of appeal or taken by leave of the Appellate Board under this rule:

Provided that the Appellate Board shall not rest its decision on any other ground unless the appellant who may be affected thereby has had a sufficient opportunity of being heard on that ground.

4-J. Rejection or amendment of memorandum of appeal.

The Appellate Board may reject a memorandum of appeal, if it is not in the prescribed form or return it for being amended within such time as it may allow. On presentation after such amendment, the memorandum shall be signed and dated by the officer competent to make an endorsement under rule 4-E.

4-K. Who may be joined as respondent in an appeal by appellant.

In an appeal by an appellant under sub-section (2) of section 46, the Commissioner shall be made a respondent to the appeal.

4-L. Who may be joined as respondent in an appeal by the Commissioner.

In an appeal by the Commissioner under sub-section (3) of section 46 or sub-section (5) of section 47, the appellant before the Appellate Authority /Commissioner/ Director of Commercial Tax/ Additional Commissioner of Commercial Tax, as the case may be, shall be made a respondent to the appeal.

4-M. Authorising a representative to appear.

In any appeal by any appellant, where the memorandum of appeal is signed by his authorised representative, the appellant shall append to the memorandum a document authorising the representative to appear for him and if the representative is a relative of the appellant, the document shall state what his relationship is with the appellant, or if he is a person regularly employed by the appellant, the document shall state the capacity in which he is at the time employed.

4-N. Authorisation to be filed.

An authorised representative appearing for the appellant at the hearing of an appeal shall, unless the document referred to in rule 4-M has been appended, file such a document before the commencement of the hearing.

4-O. Preparation of paper books, etc.

(1) If the appellant or the respondent, as the case may be, proposes to refer or rely upon any document or statements or other papers on the file of or referred to in the assessment or appellate orders, he may submit a paper book in duplicate containing such papers duly indexed and paged at least a day before the date of hearing of the appeal along with proof of service of a copy of the same on the other side at least a week before:

Provided that the Bench may in an appropriate case condone the delay and admit the paper book.

(2) The Appellate Board may suo motu direct the preparation of a paper book in duplicate by and at the cost of the appellant or the respondent containing copies of such statements, papers and documents as it may consider necessary for the proper disposal of the appeal.

(3) The papers referred to in sub-rule (1) or (2) above must always be legibly written or type-written in double space or printed. If xerox copy of a document is filed, then the same should be legible. Each paper should be certified as a true copy by the party filing the same, or his authorised representative and indexed in such a manner as to give the brief description of the relevance of the document, with page numbers and the Authority before whom it was filed.

(4) The additional evidence, if any, shall not form part of the same paper book. If any party desires to file additional evidence, then the same shall be filed by way of a separate paper book containing such particulars as are referred to in sub-rule (3) accompanied by an application stating the reasons for filing such additional evidence.

(5) The parties shall not be entitled to submit any supplementary paper book, except with the leave of the Bench.

(6) Documents that are referred to and relied upon by the parties during the course of arguments shall alone be treated as part of the record of the Appellate Board.

(7) Paper/paper books not conforming to the above rules are liable to be ignored.

4-P. Date and place for hearing of appeal.

(1) The Appellate Board shall send notice to the parties specifying the date and place of hearing of the appeal and send a copy of the memorandum of appeal to the respondent either before or with such notice.

(2) The issue of the notice referred to in sub-rule (1) shall not by itself be deemed to mean that the appeal has been admitted.

4-Q. Date and place of hearing of appeal, how fixed.

The date and place of hearing of the appeal shall be fixed with reference to the current business of the Appellate Board and the time necessary for the services of the notice of appeal, so as to allow the parties sufficient time to appear and be heard in support of or against the appeal.

4-R. Hearing of the appeal.

On the day fixed, or any other day to which the hearing may be adjourned, the appellant shall be heard in support of the appeal. The Appellate Board shall, then, if necessary, hear the respondent against the appeal, and in such case the appellant shall be entitled to reply.

4-S. Hearing of appeal ex-parte for default by the appellant.

Where, on the day fixed for hearing or on any other date to which the hearing may be adjourned, the appellant does not appear in person or through an authorised representative when the appeal is called on for hearing, the Appellate Board may dispose of the appeal on merits after hearing the respondent:

4-T. Hearing of appeal ex-parte for default by the respondent.

Where, on the day fixed for hearing or any other day to which the hearing may be adjourned, the appellant appears and the respondent does not appear in person or through an authorised representative when the appeal is called on for hearing, the Appellate Board may dispose of the appeal on merits after hearing the appellant.

4-U. Continuation of proceedings after the death or adjudication of an appellant to the appeal.

Where an assessee whether he be the appellant or the respondent to an appeal dies or is adjudicated insolvent or in the case of a company is being wound up, the appeal shall not abate and may, if the assessee was the appellant, be continued by, and if he was the respondent be continued against, the executor, administrator or other legal representative of the appellant or by or against the assignee, receiver or liquidator, as the case may be.

4-V. Respondent may support order on grounds decided against him.

The respondent, though he may not have appealed, may support the order appealed against on any of the ground decided against him.

4-W. Remand of the case by the Appellate Board.

Where the Appellate Board is of the opinion that the case should be remanded, it may remand it to the authority from whose order the appeal has been preferred or to the Assessing Officer, with such directions as the Appellate Board may think fit.

4-X. Production of additional evidence before the Appellate Board.

The parties to the appeal shall not be entitled to produce additional evidence either oral or documentary before the Appellate Board, but if the Appellate Board requires any document to be produced or any witness to be examined or any affidavit to be filed to enable it to pass orders or for any other substantial cause, or , if the commercial tax authorities have decided the case without giving sufficient opportunity to the appellant to adduce evidence either on points specified by them or not specified by them, the Appellate Board, for reasons to be recorded, may allow such document to be produced or witness to be examined or affidavit to be filed or may allow such evidence to be adduced.

4-Y. Mode of taking additional evidence.

Such document may be produced or such witness examined or such evidence adduced either before the Appellate Board or before such commercial tax authority as the Appellate Board may direct.

4-Z. Additional evidence to be submitted to the Appellate Board.

If the document is directed to be produced or witness examined or evidence adduced before any commercial tax authority, he shall comply with the directions of the Appellate Board and after compliance send the document, the record of the deposition of the witness or the record of the evidence adduced, to the Appellate Board.

4-ZA. Adjournment of appeal.

The Appellate Board may, on such terms as it thinks fit, and at any stage, adjourn the hearing of the appeal.

4-ZB. Award of costs.

(1) The costs of any appeal shall be at the discretion of the Appellate Board.

(2) The costs awarded by the Appellate Board shall be paid or recovered as if it were a tax payable or a refund due to an appellant.

(3) Notwithstanding anything contained hereinabove, the Appellate Board may in its discretion, direct such costs to be deposited in any other manner as it deems fit.

4-ZC. Proceedings before the Appellate Board.

The proceedings before the Appellate Board shall be open to the public. However, the Appellate Board may, in its discretion, direct that proceedings before it in a particular case will not be open to the public.

4-ZD. Order to be pronounced, signed and dated.

(1) The order of the Bench shall be in writing and shall be signed and dated by the members of the Bench.

(2) The members of the Bench or, in the event of their absence by retirement or otherwise, the Chairman may mark an order as fit for publication.

(3) Where a case is referred under sub-section (4) of section 4-B, the order of the member or members to whom it is referred shall be signed and dated by him or them, as the case may be.

(4) The Bench shall pronounce its orders in the Court.

(5) The pronouncement of order may be in any of the following manners:-

(a) The Bench may pronounce the order immediately upon the conclusion of the hearing.

(b) Where the order is not pronounced immediately on the conclusion of the hearing, the Bench shall give a date for pronouncement.

(c) Where no date of pronouncement is given by the Bench, every endeavor shall be made by the Bench to pronounce the order within 60 days from the date on which the hearing of the case was concluded but where it is not practicable so to do on the ground of exceptional and extraordinary circumstances of the case, the Bench shall fix a future day for pronouncement of the order, and such date shall not ordinarily be a day beyond a further period of 30 days and due notice of the day so fixed shall be given on the notice board.

(6) The order of the Bench shall ordinarily be pronounced by the members who heard the appeal. However, if the said members or any of them is or are not available for pronouncement for any reason, then the order will be pronounced by such member or members as may be nominated by the Chairman or Senior member, as the case may be.

(7) Where the order is ready in every respect and can be made available to the parties, the Bench may advance the date of pronouncement and put this information on the notice board, and the order shall be pronounced accordingly.

(8) Where the order cannot be pronounced on the date given, the date of pronouncement may be deferred, subject to sub-rule (5)(c), to a further date and information thereof shall be given on the notice board.

4-ZE. Procedure for dealing with applications under section 4-A(2).

(1) An application under section 4-A(2) of the Act shall clearly and concisely state the mistake apparent from the record of which the rectification is sought.

(2) Every application made under sub-rule (1) shall be in triplicate and the procedure for filing of appeals in these rules will apply mutatis mutandis to such applications.

(3) The Bench which heard the matter giving rise to the application (unless the Chairman or the senior member present otherwise directs) shall dispose it after giving both the parties to the application a reasonable opportunity of being heard.

(4) An order disposing of an application, under sub-rule (3) shall be in writing giving reasons in support of its decision.

4-ZF. Order to be communicated to parties.

The Appellate Board shall, after the order is signed, cause it to be communicated to the appellant and to the Commissioner.

4-ZG. Procedure for filing of stay application.

(1) (a) Every application for stay of recovery of demand of tax, interest, penalty or any other sum shall be presented in duplicate by the appellant in person, or by his duly authorised agent, or sent by registered post, to the Registrar at the headquarters of the Appellate Board at Bhopal or to an officer authorised in this behalf by the Registrar.

(b) Separate applications shall be filed for stay of recovery of demands under different enactments.

(2) Every application shall be neatly typed on one side of the paper and shall set forth concisely the following:-

(i) short facts regarding the demand of the tax, interest, penalty or any other sum, recovery of which is sought to be stayed;

(ii) the result of the appeal filed before the Appellate Authority;

(iii) the exact amount of tax, interest, penalty or any other sum demanded, as the case may be, and the amount undisputed therefrom and the amount outstanding;

(iv) the date of filing the appeal before the Appellate Board and its number, if known;

(v) reasons in brief for seeking stay;

(vi) prayers to be mentioned clearly and concisely (stating exact amount sought to be stayed);

(vii) the contents of the application shall be supported by an affidavit sworn by the appellant or his duly authorised agent.

(3) An application which does not conform with the above requirements is liable to be summarily rejected.".

3. In rule 8, in sub-rule (1), for the words " rupees forty lacs ", the words" rupees sixty lacs " shall be substituted;

4. For rule 12, the following rule shall be substituted, namely:-

"12. Grant of Registration Certificate.

(1) On the day, the application for grant of a registration certificate is received, the Registering Authority shall register the applicant and issue a registration certificate in Form 7.

(2) After the issue of the registration certificate, the Registering Authority or an official not below the rank of Commercial Tax Inspector authorised by him, shall, with a view to verify the correctness of the particulars given in the application, visit the place of business and ask for the applicant's accounts and require him to produce evidence and documents in support of the particulars given in the application. On verification of the accounts and the documents furnished to him, if the Registering Authority is satisfied that the particulars given in the application are incorrect or the applicant has misrepresented the facts, he shall proceed to cancel the registration certificate in accordance with the provisions of clause (c) or clause (e) of sub-section (10) of section 17. Such cancellation shall take effect from the date of issue of the registration certificate.

(3) The requirement to furnish the evidence and documents under sub-rule (2) shall be limited to the particulars given in the application in Form 6 for grant of a registration certificate.".

5. After rule 43, the following rule shall be inserted, namely:-

"43-A. Application for Settlement

(1) An application for settlement shall be submitted in Form 29-A to the Commissioner, Commercial Tax, Member Secretary, Settlement Authority, by a dealer. Separate applications shall be made for separate orders.

(2) Every such application shall be accompanied by:

(a) a proof of payment as required by sub-section (3) of section 24-B;

(b) a proof of the dispute being pending before the High Court on the date of filing of the application, if application is made under clause (i) of sub-section (1) of section 24-B;

(c) copies of the original order and of subsequent appellate and/or revisional order, if any;

(d) a duplicate copy of the application along with duplicate copies of all its enclosures. ".

6. After Form 29, the following Form shall be inserted, namely:-

"Form 29-A

[See rule 43-A]

Application for Settlement

To,

The Commissioner,

Commercial Tax,

Member Secretary,

Settlement Authority,

Moti Bunglow Compound,

M.G. Road, Indore

Instructions :

1. Separate application shall be submitted for separate orders.

2. The application should be filed in duplicate.

3. Enclose certified copy of order (s) for which application for settlement is being filed,

4. Enclose proof of payment.

5. Enclose proof of case being pending before the High Court.

6. The form shall be verified and signed by a person as prescribed in sub-rule (1) of rule 11 of the M.P. Vat Rules, 2006.

7. Enclose all documents/evidences that the applicant thinks necessary.

By order and in the name of the Governor of Madhya Pradesh,