Section 8(3) of Punjab VAT Act, 2005 provides that a prior 15 days notice is required to be issued by notification of intention to amend the schedules, before any schedules are amended. However the State Government may also dispense with the requirement of issuance of the prior notice if the circumstances so exist. Section 8(3) runs as under:
The State Government after giving fifteen days notice by notification, of its intention so to do, may by like notification, alter the rate of tax specified in any of the Schedules, add to or omit from or otherwise amend the Schedules and thereupon, the Schedule shall be deemed to have been amended accordingly:
Provided that if, the State Government is satisfied that circumstances exist, which render it necessary to take immediate action, it may, for reasons to be recorded in writing, dispense with the condition of previous notice.
Although a 15 days prior notice is required to be issued before amending the schedules of PVAT Act, 2005. However the recent notifications regarding increase of VAT by 0.5% have been issued in pursuance of the powers as conferred in the proviso to section 8(3) of PVAT Act, 2005 as is clear from the starting words of the notifications. (download notifications)
The State Government after giving fifteen days notice by notification, of its intention so to do, may by like notification, alter the rate of tax specified in any of the Schedules, add to or omit from or otherwise amend the Schedules and thereupon, the Schedule shall be deemed to have been amended accordingly:
Provided that if, the State Government is satisfied that circumstances exist, which render it necessary to take immediate action, it may, for reasons to be recorded in writing, dispense with the condition of previous notice.
Although a 15 days prior notice is required to be issued before amending the schedules of PVAT Act, 2005. However the recent notifications regarding increase of VAT by 0.5% have been issued in pursuance of the powers as conferred in the proviso to section 8(3) of PVAT Act, 2005 as is clear from the starting words of the notifications. (download notifications)
The notification states that the circumstances exist to dispense with issuance of prior public notice in the public interest. The point is what are those circumstances which led the State Government to believe that prior notice should be dispensed with in public interest.
Do such circumstances exist every time when the schedules are amended as the procedure as prescribed u/s 8(3) is rarely followed by the State Government before amendment in the schedules.
In my view powers to dispense with the prior notice under proviso to section 8(3) should not be exercised in a casual manner but should be exercised only in exceptional circumstances.
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