The Excise & Taxation Department is a revenue department of the Administration. It administers various Acts such as the Punjab Value Added Tax Act 2005 as extended to U.T., Chandigarh, The Central Sales Tax Act, 1956, The Motor Spirit Taxation Act, Passenger & Goods Tax Act, Entertainment & Show Tax Act and The Punjab Excise Act, 1914. Under these Acts the levies are collected by the Designated Officers within their respective fields .For the collection and administration of Value Added Tax, nine wards have been constituted with an Excise and Taxation Officer assisted by the Excise and Taxation Inspector responsible for their functioning. The Assessing Authorities, who are AETC/ETOs, ensure the realization of the taxes with the help of the supporting staff deployed in their Wards. The Department is headed by the Excise and Taxation Commissioner, who is superintending this office through the Deputy Excise and Taxation Commissioner under various enactments referred to above. The Finance Secretary, U.T., Chandigarh holds the charge as The Secretary, Excise and Taxation Department. The department contributes a major chunk of revenue to the exchequer and the Administration of every enactment is being ensured in accordance with the statutory provisions of the Act and Rules framed there under. The Department is committed to provide a healthy working environment to its dealers and the simplification of the procedures remains top on the list of priorities.
In the furtherance of this initiative, the Department has been able to computerize the most of its processes under the Commercial Taxes-Mission mode Project launched by the Government of India for the purpose. At present, the core services such as Returns, Registration, Payments, issuance of the Statutory forms under the Central Sales Tax Act, Refund Applications and Grievances are being provided online to the stakeholders. Internally, the Department officials have an access to the State of the Art Hardware and software (SVAT) for performing their day to day activities. One of the officers of the Department has been designated as the Central Public Information Officer, to facilitate the applicants in obtaining any information under the Right to Information Act 2005. The Sampark Centers formulated by the Chandigarh Administration in various parts of the city have been authorized to conduct the business relating to this office such as receipt of taxes and returns. This system facilitates the dealers, particularly falling in the respective areas in saving the precious time and energy besides reducing the legwork. The working time of such Sampark Centers is from 8 A.M. to 8 P.M., which is very convenient as well as flexible.
In order to keep pace with the changed system of implementation and realization of the tax , the functioning of the department can be classified into two categories, (1) Regulatory System (2) Service Providing System. The scope of the both fields is detailed below:
Ensuring the proper realization of the tax on the sales/ purchase of taxable items under the VAT Law by Registering the Dealers, conducting inspections/ raids and roadside checking to detect the tax evasion in the hands of the unscrupulous dealers. The department also conducts the Audit and scrutiny of the Dealer returns under the relevant sections, for detecting the evasion of the taxes. The Assessments are framed by the concerned Designated Officers u/s 29(2) of the Act creating additional demands to be recovered. Furthermore, the maintenance of books of accounts by the dealer is also enforced by this department as per the provisions of the VAT Act. The department also ensures the implementation and realization of the taxes levied under the Punjab Entertainment Tax Act and Punjab Passenger and Goods Taxation Act. In order to ensure the recovery of the tax under these Acts, the department further conducts surprise inspections of the concerned dealers.
Although the main function of the department is to ensure the compliance of the provisions of the Law by the dealers, yet out of various functions enunciated under the Acts/ Rules, the following areas can be treated as Service Providing ones:
The department issues, on receipt of application from the dealers, various declaration forms such as Form ‘C’, ‘F’, ‘H’, ‘I’, ‘E1’, ‘EII’, etc.
On receipt of the application in the prescribed Performa under the relevant Acts along with the requisite fee, the Excise and Taxation Officer concerned passes the order for the grant of Registration Certificate after verification of the documents and place of business.Thereafter, the certificates are prepared and issued by the official from the Establishment Branch. The prescribed timeframe for the grant of RCs earmarked for whole process is one month, where the applications are complete in all respects.
Under the Act, there is a process to make amendments in the Registration Certificates. The amendment applications of various kinds are received in the office and the acknowledgement is issued. The Taxation Inspector of the area concerned examines and verifies the contents of the application and submits his report to the Excise and Taxation Officer. Where it is necessary to visit the premises of the applicant assesses under the VAT Act/Rules, he also pays visit to the premises to verify the genuineness of the applicant’s request. Fifteen days are earmarked to the Taxation Inspector to verify the contents of the application and submit its report to the Excise and Taxation Officer. On the receipt of the application by the E.T.O., he scrutinizes the application as per provisions of the Act in light of the report submitted by the Excise and Taxation Inspector. The whole process is completed within one month and the amended certificates are issued to the applicant.
In case of any doubt with regard to any provision of the Act, the dealer can file application under Section 85 of the VAT Act addressed to the Excise and Taxation Commissioner. The clarification is given by way of passing an order u/s 85 of the Act ibid and is communicated to the applicant promptly. The time to decide such cases may vary from case to case as it depends upon the nature of the query asked for. However, every effort is made to decide the request on priority basis. On an average it takes two months to dispose off an application filed under section 85 of the Act.
The department keeps uploading the relevant information with regard to the VAT rates, VAT Forms and latest notifications on the Department’s website for the information of its stakeholders.
Ensuring the proper realization of the tax on the sales/ purchase of taxable items under the VAT Law by enforcing various provisions .This includes compulsory registration of a person liable to pay tax.
Making inspections/ raids u/s 46(4) and roadside checking under the provisions of section 51 of the Act to detect the cases of tax evasion in the hands of the unscrupulous dealers.
The department also conducts the Audit or scrutiny as per the provisions of the VAT Act and makes assessments u/s 29 to determine the tax liability of the dealer after perusing the returns filed.
Compliance of the VAT provisions with regard to maintenance of books of accounts of the dealer is also enforced by this department.
A fifteen days notice to general public is required to be given for the grant of these Licenses in forms L-3/L-4/L-5/L-12C. These Licenses are granted in less than one month time even as the file has to move up to the Excise and Taxation Commissioner, U.T. Chandigarh for consent.
The disposal of breach cases of licenses is done within 15 days after giving at least 7 days notice to the erring licensee.
Punjab Entertainment Tax Act and Punjab Passenger and Goods Tax Act
The department also ensures the implementation and realization of the taxes levied under the Punjab Entertainment Tax Act and Punjab Passenger and Goods Taxation Act. In order to ensure the recovery of the tax under these Acts, the department enforces various provisions under these enactments by even doing surprise inspections of concerned dealers.
Issued within one day of receipt of application.
Within one day of the receipt of the applications by the Licensee.
Takes 4 to 5 days from the date of announcement of Excise Policy for the year for which the renewal is sought.
Within one day to the Export Liquors out of U.T. Chandigarh by the Chandigarh Bottling Plants on receipt of their application.
Clearance Certificates are issued on the same day on receipt of application from the Transport Company or the owner of the Vehicle.