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2019 (4) TMI 1455 - HC - VAT and Sales TaxRecovery of arrears of interest and penalty - lifting of attachment of property - HELD THAT - Having accepted the conclusion of the aforesaid committee, it does not now lie in the mouth of the department to state that the Special Committee could not have considered a matter falling within the compass of the Entry Tax Act. The fact that the petitioner has remitted the tax component also does not advance the case of the respondent. Thus, particularly for the reason that the Entry Tax assessment relating to the period 1995-96, dated 31.12.1997 has been set aside and no other demand admittedly exists, the petitioners stand is accepted - The impugned order is quashed and the respondents are directed to lift the attachment on the property within a period of four (4) weeks from the date of receipt of a copy of this order. Petition allowed.
Issues:
Challenge to demand notice for arrears of interest and penalty under Tamil Nadu Sales Tax Act, 1959. Validity of the demand notice in light of previous settlement under Samadhan Scheme. Jurisdiction of Special Committee under TNGST Act and Entry Tax Act. Finality of Special Committee's order and its impact on subsequent assessments. Lifting of attachment on property based on quashing of impugned order. Analysis: The Writ Petitioner challenged a demand notice for arrears of interest and penalty under the Tamil Nadu Sales Tax Act, 1959, amounting to ?18,92,075. The petitioner contended that there were no pending arrears of Sales Tax or Entry Tax, making the demand contrary to law. In a previous case, the petitioner had sought a Writ of Mandamus to lift an attachment on their property based on a settlement under the Samadhan Scheme. The court directed the respondent to consider the representation, take note of the settlement certificate, and lift the attachment if no other arrears were payable. The impugned order quantifying the demand was issued in response to the petitioner's representation. The respondent argued that there were pending arrears related to an Entry Tax assessment for 1995-1996, and the remaining amount was rightly quantified as arrears in the order. The petitioner had appealed before a Special Committee under the TNGST Act to set aside assessment orders for various years. The Committee set aside all assessments, including the one for Entry Tax in 1995-1996, and remanded the matters to the Assessing Officer. The respondent failed to produce orders passed after the remand for the Entry Tax assessment. The court noted that the Special Committee's order had finality and rejected the argument that it could not consider Entry Tax matters. As the Entry Tax assessment for 1995-1996 had been set aside with no other demand, the impugned order was quashed, and the attachment on the property was directed to be lifted. In conclusion, the Writ Petition was allowed, and the connected Miscellaneous Petition was closed, with no costs imposed.
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