The apex court, in a decade-long dispute, found that Bhat-Bhateni Super Market, Shankar Oxygen Pvt Ltd and Mahesh Baniya among others faked VAT bills to evade taxes. Bhat-Bhateni had evaded Rs 38 million in fiscal year 2010 and 2011 through the faking of bills for transaction in  items that it never imported.

KATHMANDU, Jan 14: The Supreme Court on Monday upheld the finding of the Revenue Tribunal that some business entities including Bhat-Bhateni Super Market had faked VAT bills.

The apex court, in a decade-long dispute, found that Bhat-Bhateni Super Market, Shankar Oxygen Pvt Ltd and Mahesh Baniya among others faked VAT bills to evade taxes. 

A division bench of Chief Justice Cholendra SJB Rana and Justice Prakash Kumar Dhungana upheld the finding of the Revenue Tribunal two years ago that the firms faked the VAT bills. The firms were supposed to pay millions in VAT.

The Department of Revenue Investigation (DRI) had charged various companies with evading Rs 90 million in 2010 and 2011 and more than Rs 200 million in previous years. The issue reached the desk of the DRI director general under administrative review. They then appealed to the Revenue Tribunal, which upheld the findings of the lower authorities. The dispute then reached the Supreme Court.

DRI concluded that Bhat-Bhateni Super Market had evaded Rs 38 million in fiscal year 2010 and 2011 through the faking of bills for transaction in items that it never imported. The super market chain was rapidly expanding in Kathmandu and elsewhere at the time.

The apex court also upheld the Revenue Tribunal’s findings concerning Shanker Oxygen Gas Pvt Ltd, AIT Pvt Ltd and Mahesh Baniya. Arun Intercontinental, however, was acquitted of the same charge.

After it determined the initial VAT amount due seven years ago, DRI had written to Bhat-Bhateni to pay the tax, the interest as well as fines. 

 
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