Draft

Date : 26-07-2014
To,
The Principal Accountant General( Audit-1),
Maharashtra, Maharshi Karve Road,
Mumbai 400 001.
Sub : Irregularities committed by Sales Tax Department
of the Government of Maharashtra.
Respected Sir,
Sales Tax Receipt Audit ( S.T.R.A) wing of your office,
functioning in Vikrikar Bhavan, Mazgoan, Mumbai, must be
aware of the provisions of Section 48(5) the MVAT Act, which
allows the set off claim to a subsequent dealer, only if the
previous dealer/ manufacturer

has already credited that

amount of Sales Tax in the Government Treasury. It is true that

the provision of claiming set off has been made by the
Government to save the ultimate customer from the cascading
effect of Sales Tax and at the same time provisions of Section
48(5) ibid

ensure the guarantee of revenue to the State

Government.
2.

Unfortunately,

while implementing the MVAT Act, the

Sales Tax Department has been adopting, since many years, a

practice of recognizing Havalla (now being termed as
suspicious)

dealers. Further, in many cases, Sales Tax

Department has been canceling registrations retrospectively ,

which is very serious and illegal. We are enclosing a copy of

an article by Shri Baheti, a C.A., for your information. It
indicates some of the irregularities of Sales Tax Department, as
mentioned therein, the information of which has been obtained
through the R.T.I. Act. In this process the Sales Tax Department
is inflicting undue, unwarranted, heavy financial burden on the
honest dealers.
3.

Since your office can have direct access to the official

record of that department, it might have noticed / reported

many such irregularities. If so, kindly communicate to us those
details / page no.s, para no.s of your reports, so that we will try
to download that information, to ascertain from the State
Government remedial measures, if any, taken up by the State
Government.

To facilitate quick communication, we are

authorizing our Cluster Advisor ( Shri. S.G Wad) to liaison with

your office.

Thanking you,
Yours faithfully,

Chairman,
L.A Akiwate Industrial
Co-operative Esate
Ltd, Jaysingpur