Excise & Taxation

The Excise & Taxation Department is revenue department. It administers the various Acts such as the Sales Tax Act, Central Sales Tax Act, Motor Spirit Taxation Act, Passenger & Goods Tax Act, Entertainment & Show Tax Act and Excise Act. Under all these Acts levy of tax is collected by the Assessing Authorities in their respective field consisting of Wards which are seven in number. Under the above Acts these Assessing Authorities who are AETC/ETOs, ensures the realization of the taxes with 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 department contributes a major chunk of revenue to the State exchequer of Union Territory, Chandigarh. Administration of every enactment is being ensured in accordance with the statutory provisions of each Act and Rules framed thereunder. Although these enactments are based on a very old system of working being in operation for more than fifty year’s earlier stage, yet to maintain a pace with the changed system of working in every field, the department has simplified various procedures to make it a public friendly and self compliance.

The following simplification of the procedures involving public interests have been made by the department:-

  • Computerisation of all the records, which enables the dealer to have an access to their respective information with regard to Returns filed, payments of tax made and verification of encashment of cheques/drafts etc. This ensures the expeditious disposal of their Assessment cases.
  • One of the senior officer has been entrusted the work of Central Public Information Officer, to facilitate the dealers/the persons having any interest in the working of the department, for obtaining any information.
  • Some Sampark Centres 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 that area to save their time and energy. The working time of such Sampark Centres is from 8 A.M. to 8 P.M. which is more convenient as compared with office working of the department.

In order to pace with the changed system of implementation and realization of the tax on the sales as well as on the purchases under the VAT Act in Union Territory, Chandigarh, 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:

(i) Regulatory

Regulatory Functions

Ensuring the proper realization of the tax on the sales/ purchase of taxable items under the VAT Law, by way of various provisions of the VAT Act, which consists compulsory registration of a person liable to pay tax, making inspections/ raids and roadside checking to detect the tax evasion in the hands of the unscrupulous dealers. The department also conduct the Audit on scrutiny as per the policy of the VAT Act and assess the return filed by the dealer. Compliance of the VAT provisions with regard to maintenance of books of accounts of the dealer is also enforced by this department failing to which penal action is taken 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 enforces various provisions under these enactments by paying surprise inspections also.

(ii) Service Providing System Service Providing Functions

Although the main functioning of the department is to ensure the compliance of various provisions of the VAT Law by the dealers, yet out of those various functions enunciated under the VAT Act/ Rules, the following works can be treated as Service Providing ones:

  • Issuance of various declaration forms

The department issues to the assesses on their demand preferred by way of application, various declaration forms such as Form ‘C’, ‘F’, ‘ST XXII’, ‘H’, ‘I’, ‘E1’, ‘EII’, etc. This process is promptly attended to. The application is examined by the Taxation Inspector and the issuance of above declaration forms are ordered by the Excise and Taxation Officer of the Ward concerned and then on the same day the official put on this duty issues the same to the applicant. This system is attended very promptly and it takes hardly one hour for the assesses to collect these forms.

  • Grant of Registration Certificate

On the receipt of the application on the prescribed Performa under the VAT Law alongwith the required fee, the application is received in the office by the Dairy Clerk and marked to the Taxation Inspector of the area concerned and the later verify the contents of the application and also verify the Sureties if any, and pay the visit to the spot i.e. business premises in order to ascertain the genuineness and bonafide of the dealer before the report is submitted to the E.T.O. The Excise and Taxation Officer concerned passes the order for the grant of Registration Certificate and the same is prepared and issued by the official in the Establishment Branch. The time earmarked for whole system is one month, where the applications are received with all documents required under the Law.

  • Amendment

The amendment applications of various kinds as per the request of the dealer is received in the office and the acknowledgement is issued. The Taxation Inspector of the area concerned examine the same and verify the contents of the application and submit his report to the Excise and Taxation Officer concerned for ordering the amendment. 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 VAT Law vis-à-vis the report of the Taxation Inspector and the amendment is allowed within 15 days by the E.T.O. The whole process is completed within one month.

  • General Queries

In case of any doubt with regard to the sales/ purchase transactions for the tax liability, the dealer can file application under Section 85 of the VAT Act addressed to the Excise and Taxation Commissioner, which is decided by giving an opportunity to the applicant of being heard by the Excise and Taxation Commissioner. The clarification is given by way of passing an order as provided under the VAT Act by the later and is communicated to the applicant promptly. The time to decide such cases may vary case to case as it depends upon the nature of the query asked for. However, every effort is made to decide it on priority basis. On an average it takes two months time.

  • Providing various information on website

The department has uploaded VAT rates, VAT Forms and VAT Rules on the website of the Chandigarh Administration. Any change in the VAT rates is also updated on the website.

Regulatory Functions

VAT Act

  • Proper realization of tax

Ensuring the proper realization of the tax on the sales/ purchase of taxable items under the VAT Law, by way of various provisions of the VAT Act, which consists compulsory registration of a person liable to pay tax.

  • Inspections

Making inspections/ raids and roadside checking to detect the tax evasion in the hands of the unscrupulous dealers.

  • Audit of Returns

The department also conduct the Audit on scrutiny as per the policy of the VAT Act and assess the return filed by the dealer.

  • Compliance of VAT provisions

Compliance of the VAT provisions with regard to maintenance of books of accounts of the dealer is also enforced by this department failing to which penal action is taken as per the provisions of the VAT Act.

Excise Act

  • Bar Licenses

A fifteen days notice to general public is required to be given for the grant of (L-3/L-4/L-5/L-12C) these Licenses. These Licenses are granted in less than one month time as the file has to move upto the Excise and Taxation Commissioner, U.T. Chandigarh for consent.

  • Breach Cases

The disposal of breach cases of licenses within 15 days after given 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 paying surprise inspections also.

Service Providing Functions

VAT Act

  • Grant of Registration Certificate: Total Time 30 days
  i) Receipt of application One day.
  ii) Verification and report by the Taxation Inspector 15 days.
  iii) Verification and Issuance of Certificate by the E.T.O./D.O. 10 days.
  iv) Preparation and receipt of R.C. from the S.R.C.   5 days.
  • Amendments: Total Time one month.
  i) Receipt of application      One day.
  ii) Verification and report by the Taxation Inspector     15 days.
  iii) Verification and Issuance of Certificate by the E.T.O./D.O. 10 days.
  iv) Preparation and receipt of R.C. from the S.R.C.     5 days.
  • Issuance of various declaration Forms: Total Time about one to two hours (depending upon the rush of work).
  i) Verification and report by the Taxation Inspector 10 to 15 minutes.
  ii) Issue of declaration Forms by the E.T.O./D.O. 15 minutes.
  iii) Receipt of declaration Forms from the S.R.C.  One hour.
  • General Queries: Regarding queries under Section 85 of VAT Act, time taken about one to two months.
  i) Issue of notice and preparation of case by the office    20 days.
  ii) Presentation of case before the Excise and Taxation Commissioner and passing of orders after arguments    20 to 30 days.

Excise Act

  • Liquor Possession Permits (L-42 / L-50)

          Issued within one day of receipt of application.

  • Liquor Permits, Pass Permits, L-32 and L-34)

          Within one day of the receipt of the applications by the Licensee.

  • Renewal of Licensees :

          Takes 4 to 5 days from the date of announcement of Excise Policy for the year for which the renewal is sought.

  • Export Permission:

Within one day to the Export Liquors out of U.T. Chandigarh by the Chandigarh Bottling Plants on receipt of their application.

  • Passenger and Goods Tax Act:

Clearance Certificates are issued on the same day on receipt of application from the Transport Company or the owner.

Liquor possession limits

As per the provisions of the Excise Policy of the year 2008-09, Private Possession limit of liquor to be kept by the citizens in U.T. Chandigarh has been fixed. A citizen of U.T. Chandigarh can keep the following quantity of liquor without any permission:-

Country Liquor 2 Quarts (bottles) of 750 ml
IMFL/IFL 18 Quarts (bottles) of 750 ml
Beer 36 Bottles of 650 ml
Wine 18 Bottles of 750 ml

However, in case any individual wants to keep more liquor than the above-prescribed limit, he can have his possession limit enhanced by obtaining a permit in Form L-50 from the Excise & Taxation Department. The enhanced possession limit on the basis of the L-50 permit has been fixed as under:-

IMFL/IFL 36 Quarts (bottles) of 750 ml
Beer 72 Bottles of 650 ml
Wine 36 Bottles of 750 ml

The possession of liquor in excess of the above mentioned limits by any individual in U.T., Chandigarh can lead to legal action under the provisions of the Punjab Excise Act, (as applicable to U.T.).