Madhya Pradesh Govt Notifies Deemed Assessment Scheme for VAT and Fuel Cess Cases for FY 2023–24 [Read Notification]

The Madhya Pradesh Government issued Notification No. 141 dated 3rd June 2025, introducing a Deemed Assessment Scheme for the financial year 2023–24. This scheme covers pending assessments under the Madhya Pradesh VAT Act, 2002, the Central Sales Tax Act, 1956, the Motor Spirit Upkar Adhiniyam, 2018, and the High-Speed Diesel Upkar Adhiniyam, 2018.

The notification aims to simplify the compliance process for dealers, primarily petrol pump operators, by allowing eligible cases to be treated as deemed assessed, provided they meet certain criteria and follow the prescribed procedure.

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Eligibility and Scope

The scheme is applicable to registered dealers engaged in the sale of petrol, diesel, and CNG, who have purchased their stock after payment of tax or cess from:

• Notified oil companies, or
• Other registered dealers within Madhya Pradesh.

Certain categories of dealers are specifically excluded:

• Those found guilty of tax evasion during FY 2023–24.
• Dealers who received notices under Section 18(5)(b) or Section 19(6) of the VAT Act and failed to comply.
• Dealers who have claimed refunds under any of the relevant Acts for the same period.

Application Process

Eligible dealers are required to submit a separate application for each relevant Act using designated forms:

• Form A for the Madhya Pradesh VAT Act
• Form B for the Central Sales Tax Act
• Form C for Motor Spirit Cess
• Form D for High-Speed Diesel Cess

The application must be filed within 90 days of the notification date, i.e., by September 1, 2025, before the Assessing Officer handling their 2023–24 case.

Documents Required

The following documents must be enclosed with the application:

• Challan copy as proof of tax and interest payment.
• Audit report (mandatory for dealers with turnover exceeding ₹2 crore).
• Declaration forms (like C/F/E-1/E-2/H/I) for tax exemption or concessional rates.

Procedure and Outcome

If the Assessing Officer finds the application in order, the case is accepted, and assessment is deemed completed. If errors are found, the officer will issue a show cause notice and provide one chance for correction. If the dealer fails to respond or correct the errors, the application will be rejected.

Interestingly, if no communication is received within 30 days of submission, the application will be considered accepted by default.

Objective and Significance

The initiative is part of the state government’s effort to reduce assessment backlog, promote tax compliance and simplify the process for compliant fuel dealers

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It balances compliance enforcement with administrative efficiency by encouraging voluntary disclosure and removing bottlenecks in assessments. For implementation and clarity, the Commissioner of Commercial Tax may issue further instructions.

Madhya Pradesh Govt Notifies Deemed Assessment Scheme for VAT and Fuel Cess Cases for FY 2023–24
Notification 

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