RE: NOTICE DEMANDING JUSTICE.
We act for COMPANY 1 Our client has instructed us to serve this notice upon you as follows:
01. That you have issued Letter No. ……………. dated 04.04.2002 upon our client demanding payment of Tk. 2,52,13,497.00 only as unpaid VAT. You have not mentioned the period and the basis of the demand made by you. However, our client apprehends that your demand relates to a period from July, 1991 to May, 1994 and it has been made on the basis of electricity consumption of our client.
02. That your Letter No. …………… dated 04.04.2002 upon our client demanding payment of Tk. 2,52,13,497.00 only as unpaid VAT is ex-facie illegal inasmuch as the same has been issued without disclosing the period and basis of your demand.
03. That even if the apprehension of our client is correct, your demand is illegal inasmuch as the demand is in violation of section 6(2) of the Value Added Tax Act, 1991 which reads as follows:
(2) †Kvb wbewÜZ ev wbeÜb‡hvM¨ e¨w³ KZ…©K e¨emvq Kvh© cwiPvjbv ev mgcÖmvi‡Yi j‡¶ cÖ¯‘ZK…Z ev Drcvw`Z cY¨ ev Avg`vbxK…Z, µqK…Z, AwR©Z ev Ab¨ †Kvbfv‡e msM„nxZ c‡Y¨i Dci gj¨ ms‡hvRb Ki cÖ‡`q nB‡e wbæewY©Z Kvhv©ejxi g‡a¨ hvnv me©v‡MÖ N‡U, Dnv msNwUZ nIqvi mg‡q –
(K) hLb cY¨ Ac©Y ev mieivn Kiv nq,
(L) hLb cY¨ mieivn msµvš PvjvbcÎ cÖ`vb Kiv nq
(M) hLb †Kvb cY¨ e¨w³MZfv‡e e¨envi Kiv nq ev A‡b¨i e¨env‡ii Rb¨ cÖ`vb Kiv nq
(N) hLb AvswkK ev cY© gj¨ cvIqv hvq
04. That our client neither supplied any goods, nor issued any Challan, nor utilised the goods for its own purpose, nor received any price of the goods, for which any VAT is unpaid during the period from July, 1991 to May, 1994. As such your demand is contrary to section 6(2) of the Value Added Tax Act, 1991 and as such untenable in law.
05. That your demand is also barred by section 55 of the Value Added Tax Act, 1991 since the demand was first made after three years from the relevant period.
06. That in addition to the above, your demand is also subjudiced in that the matter has already been referred to the National Board of Revenue and the process of calculation of VAT on the basis of electricity consumption is under consideration of the Board. The Commissioner, Customs, Excise and VAT, Dhaka (South), Dhaka vide his letter dated 01.07.97 requested the Member, (VAT) of the Board to give directives with regard to the matter in question and a directive is yet to be given by the Board.
In the premises stated above, since your demand has not been made under the Value Added Tax Act, 1991 you are requested to withdraw/rescind your letter No. …………….. dated 04.04.2002 demanding an amount of Tk. 2,52,13,497.00 (Taka two crore fifty two lac thirteen thousand four hundred ninety seven) only as unpaid VAT and inform us or our client about your compliance within 48 hours of receipt of this notice. Should you fail to comply with the request, our client will be compelled to seek necessary relief against you from the High Court Division of the Supreme Court of Bangladesh in Writ Jurisdiction.
A copy of this notice is kept in our office for future reference.
For: “The Lawyers & Jurists”