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TMI Blog2015 (5) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... the limitation on exercise of powers of remission by the Commissioner and mandates them to be exercised only “in such circumstances and subject to such conditions as may be prescribed.” Section 2(21) of the Act provides that “prescribed” under the Act would mean as prescribed under the Rules and herein, the Rules being silent on any settlement of the nature allegedly entered into between the appellant and the State Government, the external circumstances including a settlement cannot be considered by the Commissioner while exercising power of remission of tax under the Act. - The convoluted mesh of facts and the extremely protracted proceedings which span over three decades, at the instance of appellant, indicate that the basis of case made out by the appellant does not exist in either the statute law or, in fact, any law applicable to the present proceedings. The settlement, if any, reached between the appellant and the State Government for part payment of tax liability by the partner of an assessee-Firm would not fall under the four corners of the Act or the Rules as has been claimed by the appellant since the beginning of the proceedings under the Act. - High Court has rightly ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the offer of settlement and accordingly, in the light of the said settlement, the Commissioner of Sales Tax had issued a letter on 16.01.1984 quantifying the amount due and payable by the assessee-Firm for the relevant assessment years on the basis of the partnership deed. Before the Tribunal, the respondents have denied the existence of such settlement and further submitted that there has been no decision quantifying the individual liability of the appellant and absolving him from the liability to pay for the dues of the assessee-Firm for said assessment years. Since, the question before the Tribunal was restricted to determination and payment of liability by the appellant qua the assessee-Firm, the Tribunal had refused to adjudicate upon both: (a) whether there exists any settlement between the parties regarding the tax liability and (b) whether the appellant was relieved of his obligation under the Act. 6. Aggrieved by the aforesaid, the appellant approached the Writ Court. The assessee had contended that he had approached the State Minister for Finance seeking settlement of his individual dues, which was accepted as well as implemented by the order of the Commissioner dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a partner of the assessee-Firm under the settlement entered into between him and the State Minister for Finance. He would further refer to the order of the Commissioner dated 16.01.1984 in support of the determination of his individual dues by the respondent-Revenue and therefore submit that since the appellant has discharged his share of the liability, he ought to be absolved of all the liabilities confirmed against the assessee-Firm for the relevant assessment years under the Act. 10. Per contra, the Revenue would support the impugned judgment and order passed by the High Court. 11. Before we proceed to examine the merits of submissions advanced by learned counsel appearing for the parties to the lis, relevant provisions of the Act and Rules require to be noticed by us. 12. Section 18 of the Act provides for the liability of a firm to pay tax and contemplates joint and several liability of the partners of the firm towards the payment of such tax liability under the Act. Section 45 of the Act provides for remission of tax payable by a dealer under the Act. It reads: The Commissioner may, in such circumstances and subject to such conditions as may be prescribed, remi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect to remission of sales tax under the Act by entering into any settlement, more so a settlement for the payment of individual liability of partners under the partnership deed. Therefore, in our considered opinion, in the absence of any specific provision contained in the Act or the Rules, there could be no settlement with an individual partner so as to discharge him from his obligation to pay the sales tax dues payable by the assessee-Firm. 16. Further, in our view, the submission advanced by Shri Ganesh that the conditions prescribed under the statute at hand ought to be read considering the facts and circumstances of the instant case to provide beneficial meaning to the statute, also does not hold any waters. The statute herein clearly and expressly provides for the limitation on exercise of powers of remission by the Commissioner and mandates them to be exercised only in such circumstances and subject to such conditions as may be prescribed. Section 2(21) of the Act provides that prescribed under the Act would mean as prescribed under the Rules and herein, the Rules being silent on any settlement of the nature allegedly entered into between the appellant and the Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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