Introduction
Taxpayers who are not satisfied with the assessment made by the Inland Revenue Department (IRD) or the excise officers can apply for an Administrative Review. Section 19 of the Excise Duty Act, 2002 (2058 BS), has provisions relating to administrative review and appeal.
What Is an Administrative Review?
An administrative review is a review of decisions taken by IRD to address errors that were made internally by the tax administration. The provisions regarding administrative review are as follows:
1. Time Limit for Filing for Administrative Review
The taxpayer may apply for administrative review to the Director General (DG) who is not satisfied with the decision of the excise officer regarding the determination and imposing of excise duty. The Taxpayer may apply for administrative review within 30 days of receiving such information. In addition, the Taxpayer may file an appeal to Revenue Tribunal against the decision of imprisonment for the offenses under subsection (1), (2), (3), and (4) of section 16.
2. Extension of Time Limit
If the time mentioned above for making an application expires and the Taxpayer applies to the Director General for an extension of the time limit within seven days, in that case, the Department may extend the time limit for thirty days if there are reasonable reasons.
3. Examination of Evidence
If it appears that the applicant’s claim is true upon examination of the evidence and documents, in that case, the DG can nullify that excise duty assessment order and order reassessment of excise duty.
4. Time Limit for Giving Decision
The DG shall give his decision on the application filed within 60 days.
5. Deposit of Undisputed and Disputed Amount
The taxpayer filing application for administrative review shall deposit 100% of the undisputed amount and 25% of the disputed amount of excise duty and penalty payable as per the order.
Revenue Tribunal
The revenue Tribunal is established to maintain the convenience and economic interests of the Taxpayer. The provisions regarding the appeal to Revenue Tribunal are as follows:
1. Time Limit for Filing an Appeal
The Taxpayer may submit an appeal with the Revenue Tribunal if the Director General fails to provide a decision on an administrative review within 60 days or if the Taxpayer is dissatisfied with the Director General’s decision within 35 days of receiving it.
2. Registration of Notice of Appeal to IRD
The applicant must register a copy of the notice of the appeal to the Inland Revenue Department (IRD) within 15 days of the filing appeal.
3. Implementation of Decision
The implementation of the decision mentioned in Sub-section (1) of Section 16 shall not be deemed to be affected by the filing of an application for administrative review or an appeal.
4. Deposit of Disputed and Undisputed Amount
The Taxpayer filing an appeal to the revenue tribunal shall pay 100% of the undisputed amount of excise duty and penalty and 50% of the disputed amount of excise duty and penalty or bank guarantee of such amount as per the order.
5. Consider the Amount Deposited At the Time of Administrative Review
In calculating the amount of deposit or bank guarantee of 50% of the disputed amount of excise duty and penalty, the deposit of 25% of the disputed amount of excise duty and penalty provided at the time of administrative review shall be included.
Conclusion
A taxpayer aggrieved by a decision of the tax officer can reach out to administrative review & reach out to Revenue Tribunal if they are aggrieved by a decision made by the Director General under administrative revi
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