2003 (9) TMI 735 - HC - VAT and Sales Tax

Summary

Issues:
Petition for writ of certiorarified mandamus to quash an order and direct the issuance of Certificate of Settlement under the Samadhan Scheme.

Analysis:
The petitioner sought relief through a writ petition to quash an order by the Principal Commissioner dated May 8, 2001, related to the Samadhan Scheme under the Tamil Nadu Sales Tax, Entertainments Tax and Luxury Tax (Settlement of Disputes) Act, 1999. The petitioner was held liable for Tamil Nadu sales tax and opted for the Scheme. A certificate was issued directing payment within thirty days with interest. The petitioner requested condonation of the delay in payment, which was rejected by the Principal Commissioner citing no provision for condonation. The petitioner argued that once a provisional certificate is issued, the scheme is finalized, and delayed payment incurs only interest, relying on a judgment emphasizing a liberal construction of payment limitation provisions under a similar scheme. The Revenue contended no provision existed to condone delay.

The Court considered both arguments, noting that form II of the Scheme did not prescribe a strict time limit for payment, with interest accruing until payment. The Court emphasized that while payment cannot be endlessly postponed, delays with valid explanations should be considered objectively. The petitioner explained delays due to unforeseen circumstances, including the death of a client affecting payment realization. The Principal Commissioner's rejection solely based on the lack of provision for condonation was deemed insufficient. The Court ordered the quashing of the impugned order, directing the amount paid by the petitioner to be appropriated under the Scheme, entitling the petitioner to scheme benefits.

In conclusion, the Court found the Principal Commissioner's rejection inadequate, considering the absence of a strict time limit for payment under the Scheme. The Court emphasized the need for objective consideration of delays with valid explanations, ultimately ruling in favor of the petitioner and granting the requested relief through the writ petition.