Section 78: Burden of Proof under the DVAT Act, 2004

Section 78 determines who must establish facts concerning liability for tax or other amounts in proceedings on objections under Section 74 and before the Appellate Tribunal. It expressly leaves the burden of proof in criminal prosecutions unaffected.

Text of Section 78 - Burden of proof

Meaning and scope of Section 78

The burden of proof is the obligation to substantiate a disputed fact or claim with appropriate evidence. Under Section 78, when the dispute concerns liability to pay tax or another amount under the DVAT Act, that burden rests on the person alleged to be liable. This provision operates specifically in objection proceedings under Section 74 and proceedings before the Appellate Tribunal.

What should a dealer establish?

Depending on the actual issue in dispute, relevant records may include sales and purchase invoices, books of account, tax returns, payment challans, reconciliation statements, statutory declarations and supporting correspondence. The quality and relevance of the evidence matter; Section 78 does not itself determine that every assessment is correct or dispense with procedural safeguards.

Objections and appeals

Section 74 governs objections to qualifying assessments, orders and decisions. Section 76 governs appeals to the Appellate Tribunal, subject to its prescribed conditions and restrictions. Section 78 addresses the evidentiary burden within these proceedings, rather than independently creating a right of appeal or extending a limitation period.

Criminal prosecutions are different

The Explanation to Section 78 explicitly states that the burden of proof in criminal prosecutions is unaffected. Consequently, the evidentiary rule for DVAT objections and Tribunal proceedings must not be treated as a reversal of the burden in criminal proceedings.

Position after introduction of GST

GST replaced VAT for many categories of transactions from 1 July 2017. However, DVAT provisions can remain relevant to legacy assessments, disputes and transactions or goods continuing under the applicable VAT framework. The relevant tax period, amendments, notifications and transitional provisions must be checked before applying this section to an individual case.

Official legal resources

For statutory amendments, notifications and applicable procedures, consult the Delhi Department of Trade and Taxes, India Code and the GST Portal. The statutory text above is retained from the original webpage; verify the version in force for the relevant assessment period against official publications.