Section 85 DVAT Act 2004: Ruling on General Questions
Section 85 empowers the Commissioner to publish general rulings about the interpretation or application of the Delhi Value Added Tax Act, 2004, for classes of persons or transactions. It also provides conditions under which a person acting in reliance on an applicable ruling is protected.
Meaning and effect of Section 85
Publication of general rulings - sub-sections (1) and (2)
The Commissioner may issue a ruling by notification in the Official Gazette on a question of interpretation or on how the Act applies to a class of persons or transactions. A ruling can be subject to restrictions and conditions.
Effective date - sub-section (3)
A ruling takes effect from the date specified in it, which may precede publication. If no date is specified, it takes effect on the date of its publication in the Official Gazette.
Protection for reliance - sub-section (4)
Where a person acts on a published ruling that applies to the relevant class and transaction, while it remains unwithdrawn, the Commissioner cannot raise an assessment inconsistent with that ruling against that person; no penalty may be imposed if the ruling is subsequently held incorrect, subject to the statutory conditions.
Withdrawal or qualification - sub-section (5)
The Commissioner may withdraw or qualify a ruling through an Official Gazette notification. Such change does not remove the statutory protection for actions or transactions already commenced or completed in reliance on the ruling before its withdrawal or qualification.
Section 85: Statutory provisions
(1) The Commissioner may, by notification in the official Gazette, publish his ruling on the answer to any question involving the interpretation of this Act or application of this Act to a class of persons or class of transactions.
(2) A ruling issued by the Commissioner under this section may be issued subject to such restrictions and conditions as the Commissioner may deem fit.
(3) The ruling shall be treated as coming into effect on the date stated in the ruling (which may be a date prior to the publication of the ruling) or, if no date is stated in the ruling, on the date of publication of the official Gazette.
(4) Where
(a) the Commissioner has published a ruling in respect of a class of persons or transactions;
(b) a person implements a transaction or undertakes any action based on the ruling;
(c) the ruling has, at the time of implementing the transaction or undertaking the action, not been withdrawn by the Commissioner; and (d) according to the terms of the ruling, the ruling purports to apply to the transaction or action undertaken by the person;
no assessment which is inconsistent with the ruling, may be raised by the Commissioner against that person and no penalty may be imposed on the person if the ruling is later held incorrect.
Explanation.- A person may rely on the Commissioner's ruling or on the determination made under section 84 of this Act.
(5) The Commissioner may, by notification published in the official Gazette, withdraw or qualify a ruling already issued under this section but such withdrawal or qualification shall not affect the entitlement of any person to rely on the ruling with respect to any transaction or action commenced or completed by him prior to such withdrawal or qualification.
Section 84 and Section 85: Difference
Section 84 provides for a determination on a specific question raised by an applicant, whereas Section 85 concerns published rulings for a class of persons or transactions. The Explanation to Section 85(4) recognises reliance on either an applicable general ruling or a determination under Section 84.
Official references
For the applicable statutory text, Gazette notifications and departmental updates, consult the Delhi Department of Trade and Taxes, Gazette of India portal and India Code. Verify any amendment, withdrawal or qualification against the original official notification.