UT excise and taxation department has decided to crack the whip against registered value added tax (VAT) dealers in Chandigarh who
have not been filing the statutory quarterly tax return on a regular basis.

An official said such dealers in the city were detected during analysis of the department’s database for the last three quarters of 2008-09. The department has already declared those dealers “non-functional” who closed down their businesses or did not receive its notices.

A public show-cause notice has been issued to defaulters asking why their tax payers’ identification numbers (TIN) should not be cancelled, said the official. The department has uploaded lists of non-functional dealers on the administration’s website advising them to file returns to avoid cancellation of their TIN.

It has also started a campaign encouraging consumers to ask for bills so that no revenue loss occurs and tax enforcement improves.

Since the system of accepting VAT returns and Sampark centres started in July this year registered success, it was decided that excise wing would also follow a similar model.

Special software has been created to help the department in issuing various licences required for the transport and possession of liquor, said sources.

This is expected to result in a better management information system (MIS) for the excise wing and is expected to lead in increase in internal efficiency of the department, said sources.