2007 (3) TMI 689 - HC - VAT and Sales Tax

Summary

Issues:
Writ petitions involving commercial tax, entry tax, and Central sales tax for the period from April 1, 1996, to March 31, 1997; Applicability of Madhya Pradesh Bakaya Rashi Saral Samadhan Yojna, 2002; Levying of penalty under the Commercial Tax Act post the Samadhan Scheme.

Analysis:

Issue 1: Writ Petitions Related to Tax Assessments
The writ petitions involved assessments for commercial tax, entry tax, and Central sales tax for the period from April 1, 1996, to March 31, 1997. Assessment orders were passed raising demands against the petitioner in all three cases. Revision petitions were filed challenging these assessments.

Issue 2: Madhya Pradesh Bakaya Rashi Saral Samadhan Yojna, 2002
The Madhya Pradesh Bakaya Rashi Saral Samadhan Yojna, 2002, introduced by the State, allowed for the settlement of outstanding tax and penalty amounts under specific tax Acts. The scheme aimed to facilitate the payment of arrears outstanding as of April 1, 2001, by offering a reduced payment option based on the total arrears related to years up to March 31, 1997. The scheme also provided immunity from penal actions upon settlement under its provisions.

Issue 3: Levying of Penalty Post Samadhan Scheme
The petitioner availed the Samadhan Scheme by making the required payment and receiving a certificate indicating the settlement of arrears without any penalty liability. However, the Deputy Commissioner later levied a penalty under the Commercial Tax Act for the same period. The petitioner challenged this penalty on the grounds that it was against the provisions of the Samadhan Scheme, which barred penal actions post-settlement.

Court's Decision
The court found that the penalty imposed post the issuance of the Samadhan Certificate was without jurisdiction as per the scheme's provisions. The court held that the authorities had no power to levy penalties after the case was disposed of under the Samadhan Scheme. Consequently, the court quashed the orders imposing penalties for commercial tax, entry tax, and Central sales tax, as they were found to be without jurisdiction.

Conclusion
The court allowed the writ petitions, setting aside the penalty orders and upholding the provisions of the Madhya Pradesh Bakaya Rashi Saral Samadhan Yojna, 2002. The judgment emphasized the importance of adhering to the scheme's guidelines and preventing penal actions post-settlement under the scheme.