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Chandigarh, 9 October 2025: Udyog Vyapar Mandal, Chandigarh (UVM), has expressed serious concern over the arbitrary and excessive tax demand notices being issued by the Excise & Taxation Department (State GST Wing) of Chandigarh Administration and has called for a fair and independent enquiry into the matter.

UVM President Kailash Jain and General Secretary Shri Naresh Kumar Goyal informed the Administrator, through a memorandum, that several traders across the city are being served with tax demand notices ranging from ₹10 lakh to ₹50 lakh — and in some cases even running into crores — while the actual payable tax is substantially lower.

They further stated that in many cases, the actual payable amounts are very small, yet settlements are made at the departmental level for nominal amounts ranging between ₹10,000 and ₹50,000. This significant disparity between the notice amounts and settled amounts raises serious concerns regarding the transparency and integrity of the system.

Traders whose cases cannot be settled at the departmental level are compelled to approach the appellate authority, but are required to deposit 25%–30% of the disputed amount in advance before their appeals are even entertained, placing an undue financial burden on the business community.

UVM has urged the Hon’ble Governor and Administrator to order a detailed investigation into the number of notices issued, the amounts demanded, and the actual recoveries made during the past year, as well as the role of departmental officials in issuing these notices. The Mandal has also requested the issuance of clear and transparent guidelines to prevent arbitrary issuance and withdrawal of such notices in the future.

President Kailash Jain stated, “The traders of Chandigarh are feeling harassed and demoralized due to these unfair practices. The Administration’s prompt intervention is essential to restore confidence and ensure fairness.”

He further expressed hope that with the intervention of His Excellency Shri Gulab Chand Kataria, transparency, accountability, and the vision of ‘Ease of Doing Business’ will be strengthened in Chandigarh.