In order to claim VAT refunds, filling up forms C and H have been made mandatory else no refund will be made. The instructions, issued by the Centre, have sent a panic wave in the entire industrial sector in the state but the government functionaries are adamant that there is no room for relaxation.

Punjab Excise and Taxation Director K B S Sidhu while talking to Newsline said, “It was implemented long ago but the department was not following it religiously. But after the multi-crore bogus billing contract surfaced, we have issued strict instructions that no refund will be issued without these forms.”

According to information, more than Rs 100-crore VAT refund has been issued to various industrialists last year without C and H forms. The C form is to be filled for inter-state sale while H form is for the trade in the foreign countries.

In the recent scam of bogus billing which has crossed Rs 1,500 crore, lack of filling of C& H forms was also one of the reason of claiming bogus refunds.

Sources said filling the forms was made mandatory since long, but due to political pressure they were allowing traders to claim VAT refunds even without these forms. Forms are pending for the past two years in many cases, revealed sources. However, Chamber of Industrial and Commercial Undertakings (CICU) members said filling form C and H after every quarter is not feasible. Avtar Singh, general secretary of CICU, said,”The new condition will put undue pressure on the industry. This instruction should be withdrawn.”

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