Subject: Criteria regarding selection of cases for scrutiny assessment under the HVAT Act 2003 and the CST Act, 1956 for the assessment year 2017-18 (1st quarter and for non-GST goods for Financial Year 2017-18).

The criteria for the selection of cases for scrutiny assessment for the year 2017-18 (1st quarter ending 30.06.2017 and for non-GST goods for Financial Year 2017-18) has been approved by the State Government. The scrutiny cases will be selected for scrutiny assessment under Rule 27(2) of the Haryana Value Added Tax Rules, 2003 as per below mentioned criteria for cases pertaining to the quarter ending 30.06.2017.

1. U/r 27(1 )(i), cases having GTO of Rs. 10 cr. or exceeding Rs. 10 cr in the quarter.

2. U/r 27(1 )(ii), cases having claim of ITC of Rs. 15 lacs or exceeding Rs. 15 lacs in the quarter.

3. U/r 27( 1 )(iii), cases for claim of refund of Rs. 5 lacs or more than Rs. 5 lacs in the quarter.

4. U/r 27(1 )(iv), cases where inter state trade and commerce or in the course of export of goods out of the territory of India or in the course of import of goods into territory of India or goods exported out of the State cumulatively of individually, gross turnover is Rs. 5 cr. or more than Rs. 5 cr. under the CST Act, 1956 in the quarter.

5. U/r 27(1)(v), all cases of industrial units availing any tax concession under clause (d) of sub-section (2) of Section 61 till such units are subject to relevant provisions of Haryana General Sales Tax Rules, 1975.

6. U/r 27( 1 )(vii), where there is a substantial mismatch of sale, purchase or consignment with the accounts of the other dealers, to the transactions with the prior approval of DETC(ST) incharge of the District.

7. U/r 27(1 )(ix), cases based on definite intelligence about evasion of tax where on definite information, it is discovered that there is evasion or avoidance of tax by such dealers. Such cases shall be taken up for scrutiny assessment with the prior approval of the DETC(ST) incharge of the District.

8. U/r 27(1 )(xi), the following cases of different trade/trades shall be taken up for scrutiny-assessment under this criteria in the quarter:-

a) Mines and quarry contractors and stone crushers, whose turnover is Rs. 1.50 cr. or more than 1.50 cr. in the quarter.

b) All builders and developers in the State;

c) Works contractors have turnover of more than Rs. 5 cr. in the quarter

d) All hot mix plants;

e) All Ready Mix Concrete(RMC) dealers;

f) All Rice shelters having gross turnover of Rs. 2 cr. or more than Rs. 2 Cr. under HVAT/CST Act in the quarter.

g) Dealers exclusively dealing in biri, cigarette. Pan Masala and Gutka.

h) All liquor dealers liable to pay tax including L-4/L-5 license.

9. Petrol pump dealers whose total purchase and sales are within the State of Haryana shall not be taken up for scrutiny assessment.

10. While selecting the cases under the above scrutiny criteria, a scrutiny case selected under one criteria, would not fall under any other criteria.

Note 1. For the purpose of selection of scrutiny cases of VAT goods (6 non GST goods) during the year 2017-18 (excluding the cases selected for scrutiny for the quarter ending 30.06.2017) the quantum for whole of the year shall be determined by multiplying the amount mentioned in criteria for quarter ending 30.06.2017 by four.

For example, in criteria based on GTO, Rs. 10 crore for one quarter shall be multiplied by four, therefore, cases having GTO of Rs. 40 crore or more shall be selected for scrutiny assessment out of cases of non-GST goods for the year 2017-18. However, for the purpose of determining the turnover of Rs. 40 crore or more, turnover of quarter ending 30.06.2017 (total turnover including GST goods) and turnover of non GST goods in the remaining period of 2017-18 shall be considered.

Note 2. Where no quantum is specified for criteria of selection of scrutiny cases, the classes of trade/tradcs shall be included or excluded as per criteria above.

The above criteria be circulated among all the ETO-cum-Assessing Authorities working under your jurisdiction for State compliance.

Addl. Excise and Taxation Commissioner(T),

For Excise and Taxation Commissioner

Haryana, Panchkula.