Published On : Sat, Dec 27th, 2014

NVCC delegation meets MOS Finance, Sudhir Mungantiwar, Gom. raises objections on setting up of check posts by vat deptt.

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sudhir mungantiwar
Nagpur.

A delegation of Nag Vidarbha Chamber of Commerce led by Shri Mayur Panchmatia, President, NVCC and consisting of Dipen Agrawal, IPP. met Shri Sudhir Manguntiwar, MOS Finance, Government of Maharashtra, today.

Shri Mayur Panchmatiya, & Dipen Agrawal informed the Minister about the amendment being carried out in MVAT Rules 2005 vide notification no. VAT 1514/CR30/Taxation, dt-23-05-2014 & notification no.VAT /1514/CR30/Taxation1, dt-23-06-2014. By virtue of this notification from 25th July, 2014 onwards for economy incoming loot going movements of goods from outside the State in to the State or from inside the state to outside State, the consignor/consignee and the transporter is required to upload the document called “e-way bill” in prescribed form on website of the State Government. Every transporter, who transports the goods from any place outside the State to any place out side the State & passes through the State shall upload a transit pass in form 904.  Further vide the above notifications MVAT department proposes to establish the check-posts and erect the barrier on the State and at the border of the State.

Dipen Agrawal further said that NVCC vehemently protests and rejects the establishment of check-post and barrier in the State and at the border of the State and also the proposed draft rules to amend the MVAT Rules-2005. Thus check-posts/barriers if established within State & on State border will result in major hindrance in free movement of goods & wastage of fuel. In justification he further said that the previous government had also considered the objections raised by NVCC & kept above laws of Checks/Barriers in abeyance. We have full faith and confidence in the present Government.

Shri Mayur Panchmatiya, President presented a Memorandum stating that due to regional imbalances of taxation in Maharashtra State the business have shifted to Chhattisgarh (Raipur) & M.P. Free moment of goods is need of the hour. There is no creditable statistics to demonstrate any co-relation between non-establishment of check-post/barriers and tax evasion.

From Notification Dt. 23.05.2014 we understand that entire business community is termed as tax-evader, whereas official tax collection figures reflect contrary position to such allegations.  Tax collections have increased from Rs. 20,494.91 Crores in 2004-05 to Rs. 65,083.25 Crores in 2013-14, that translates to about 16% PA average growth. Establishment of check-post / barriers will result in long queues of commercial vehicles on both sides of check-post/barriers and putting private commuters at hardship.

Further Shri Panchmatiya submitted to the Minister that proposed rules do not address various issues such as process to be adopted when an e-waybill generated is required to be cancelled, Process to be adopted for retail consignment collected by transporter & shipped to place outside the State or vice-versa, in one vehicle, Validity of e-waybill once generated, Treatment of vehicle when it reports at the check post on a prior date or after the expected date of entry/exit as mentioned in the e-waybill, Proposed rules are framed without any practical approach to ground realities. It is well acknowledged fact that there is more than one route to enter / exit the State when traveling between two cities. In such situation it would be next to impossible any dealer/ consignor/ consignee/ transporter to mention the Entry or Exist check post, as the case may be, in the proposed e-waybill template.

In view of the facts placed before the Finance Minister Shri Mayur Panchmatiya, submitted that in the interest of revenue, business & to meet the ends of justice, State should withdraw both the Notifications namely, Notification No. VAT/1514/CR. 30/Taxation1 dated 23.06.2014 and Notification No. VAT 1514/CR 30/Taxation-1 dated 23.05.2014 with immediate effect.

After giving a patient hearing to the issues placed before him, Shri Sudhir Mungantiwar, Finance Minister assured that in the light of above submissions he respectfully assured the delegation to consider, support in improvements of laws of the State and there can be free and easy movements goods for trading community, at the earliest.

On the occasion prominent present were Sarvashri  Prakash Mehadia, Vice President, Raju Vyas, Treasurer, Sachin Puniyani & Arjundas Ahuja, Jt. Secretaries, Chunibhai Shah, Hon. Office Bearer, states in a press note issued by Shri Mayur Panchmatiya, President of the Chamber.