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TMI Blog2015 (7) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... interest and penalty, there was no occasion for the petitioner to apply for settling the same. Even against the persons from whom there were dues towards interest and penalty, 90% of such dues is waived. In the absence of any claim against the petitioner, respondent cannot be allowed to charge interest on the amount already settled under the scheme. Further, when the claim of the petitioner is considered as per the scheme notified under Act 41 of 2001, in the absence of any specific provision for collection of interest on the amount settled, it is not open for the respondent to collect the same from the petitioner. - Decided in favour of assessee. - Writ Petition No. 25538 of 2003 - - - Dated:- 10-3-2015 - R. Subhash Reddy And B. Si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tional tax, turnover tax, penalty or interest in dispute under relevant acts relating to sales tax, entertainments tax by way of settlement of such disputes and for matters connected therewith or incidental thereto. From the preamble of the Act, it is clear that the said Act is enacted to provide for expeditious enforcement of payment of arrears of tax and settlement of disputes relating to any arrears of tax, additional tax, turnover tax, penalty or interest as the case may be, under the provisions of the Andhra Pradesh General Sales Tax, 1957, A.P. Entertainments Tax Act, 1939, Central Sales Tax Act, 1956. 4. The salient features of Act 41 of 2001 are that to claim settlement under the Act, where an appeal/revision is pending before ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars after settlement of dispute and after payment of 50% of the tax arrived at on the application filed by the petitioner in Form-I, respondent has issued a summary demand notice demanding interest on settled amounts for the assessment years 1993-94, 1995-96 and 1996-97. The interest demanded and amount settled for the said assessment years read as under : Assessment year Interest demanded Amount settled (a) 1993-94 (CST) ₹ 4,31,431/- Rs. 2,11,223/- (b) 1995-96 (CST) ₹ 8,87,563/- Rs. 6,56,623/- (c) 1996-97 (CST) ₹ 19,58,772/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l apply in the matter of levy of interest on the amounts settled in the scheme. It is further stated that as the levy of interest is automatic and being undisputed one, interest is calculated from the date of tax due from the petitioner i.e. from the date of filing of returns and such demand notice is in conformity with law. 9. From a perusal of various provisions under Act 41 of 2001, it is clear that it is intended for expeditious enforcement of recovery of arrears of tax, additional tax, turnover tax, penalty or interest in dispute under relevant Acts relating to Sales Tax, Entertainments Tax etc. Under Section 6 of Act 41 of 2001, 50% waiver of all the disputed taxes due as on 31.03.2001 is provided and with regard to interest and pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as also issued Settlement Certificate under Form-III. It is true that under the scheme of Central Sales Tax Act and Rules made thereunder, it is always open to the authorities to charge interest on the tax due from the dealers, from the date of filing of their returns. The scheme provides for settlement of disputes not only with regard to taxes due but also with regard to interest and penalty. From a perusal of the provisions under Section 6 of Act 41 of 2001, it is clear that so far as the Tax is concerned, waiver of 50% is provided and with regard to interest and penalties, 90% waiver is permissible over the amounts due as on 31.03.2001. During the relevant time, there were no orders passed by the authorities for charging interest payable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llate forum. The Certificate of Settlement issued under Section 12 of the Act is final and conclusive and once such certificate is issued in Form-III, the dealer/applicant shall be discharged from his liability of paying balance amount of arrears of tax, penalty or interest, if any. Even against the orders levying penalty and interest, there is a provision in the Act itself for settlement by payment of 10% of the tax and interest, but for the fact that as there were no demand notices or orders for payment of interest and penalty, there was no occasion for the petitioner to apply for settling the same. Even against the persons from whom there were dues towards interest and penalty, 90% of such dues is waived. In the absence of any claim agai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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