RE: NOTICE DEMANDING JUSTICE.
We act for Company 1, Head Office at ………………….. Our client has instructed us to serve this notice upon you as follows:
01. That you have issued General Order No. 13/VAT/2000 dated 31.10.2000 giving a general direction upon all Circle Superintendent to strike out the rebate entries made in the Current Account Register of any Tax Payer as and when the concerned Superintendent becomes aware that objection has been raised (by whom?). You gave the said general direction pursuant to section 9(2) of the VAT Act on the misconception that pursuant to section 9(2) of the VAT Act any rebate if availed in violation of section 9(1) of the VAT Act can be struck out without any notice and without determining whether the said rebate has been availed in violation of section 9(1) of the VAT Act or not. But section 9(2) of the VAT Act provides that the concerned officer can give direction to cancel any rebate if availed in violation of section 9(1) of the VAT Act. It is the implied provision of section 9(2) of the VAT Act that before giving such direction, the concerned officer must determine as to whether the rebate has been availed illegally or not, since section 55(3) of the VAT Act and Rule 43 of the VAT Rule provides for giving the opportunity of personal hearing before recovery of any unpaid VAT or Supplementary Duty and cancellation rebate availed by any Tax Payer is tantamount to recover the unpaid VAT.
02. That pursuant to your General Order No. 13/VAT/2000 the Superintendent and the Inspector, Customs, Excise & VAT, Shyampur Circle, Dhaka debited an amount of Tk. 12,73,646.00 (Taka twelve lac seventy three thousand six hundred forty six) only in the Current Account Register of our client on 12.04.2001 by cancelling 40% rebate out of 100% rebate availed by our client during July, 2000 to March, 2001 on account of electricity consumed by our client for commercial purposes only in its factory. The said debit entry was made on the ground that the 100% rebate availed by our client on account of electricity is illegal pursuant to section 9(1)(cha) of the VAT Act even after filing of Appeal No. 4-A(9)31/VAT/APPEAL/2001 dated 09.04.2001 challenging the legality of cancellation of rebate of Tk. 2,22,490.00 only availed by our client in the Tax Period of August, 2000. The said cancellation has been challenged on the ground that availing of 100% rebate is not barred by section 9(1)(cha) if the inputs mentioned in the said section 9(1)(cha) are consumed/used for commercial purposes only.
03. That it is clear that the General Order issued by you is illegal and arbitrary. Pursuant to your such illegal General Order the Superintendent and the Inspector, Shyampur Circle has illegally debited the Current Account Register of our client. Your such illegal General Order is causing serious injury to the business of our client.
In the premises stated above you are requested to rescind your aforesaid General Order No. 13/VAT/2000 dated 31.10.2000 pursuant to which our client’s Current Account Register has been illegally debited by the Superintendent and the Inspector 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”