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TMI Blog2016 (8) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... 1(Act No. 29/2011) 3.After elaborately hearing the learned counsel for the petitioner and carefully perusing the materials placed on record, it is evidently clear that the impugned orders have been passed in gross procedural violation of the procedure contemplated under Act 29 of 2011. In fact, I had considered the scope of the proceedings under the said Act in a batch of cases before the Madurai Bench of this Court in the case of M/S CHERAN CEMENTS LTD., REP. BY ITS DIRECTOR P. KUMAR RAJA v. THE JOINT COMMISSIONER (CT), TRICHY DIVISION AND ANR [W.P.(MD) Nos.5638 of 2014 etc. batch dt 03.09.2014]. In the said order, the Court has considered as to how an Application filed under the Act has to be considered by the designated authority and how the amount to be quantified to enable the dealer to avail the benefit under the provisions of the Act. At this stage, it would be useful to refer to the relevant portions of the said order: "18. Before we consider the factual and legal aspects raised in these writ petitions, it would be necessary to examine the manner in which the Settlement Act operates. The Act provides for settlement of arrears of tax, penalty or interest pertaining ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e designated authority. 6. Determination of amount payable by the applicant. - (1) The designated authority shall verify the correctness of the particulars furnished in the application made under section 5 with reference to all relevant records and determine the amount payable at the rates specified in section 7. (2) The designated authority shall demand further amount payable by the applicant in the form prescribed, if the amount paid by the applicant along with application falls short of not more than ten per cent of the amount determined under sub-section (1). (3) If the applicant has not paid ninety per cent of the amount payable under section 7 along with the application, the designated authority shall summarily reject the application. (4) The amount determined under sub-section (1) shall be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee, and, if such part is fifty paise or more, it shall be rounded off to the nearest rupee, and if such part is less than fifty paise, it shall be ignored. 7. Rate applicable in determining amount payable. - The amount payable by the applicant and to be waived shall be determined as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ponding arrears of tax pending collection on the date of application, the amount which the applicant has to pay under each of the clauses have been mentioned. 22. Therefore, the applicant, while submitting application under Section 5 has to calculate the amount payable as per the rates mentioned in Section 7(a) to (d) and remit the same and file proof of payment along with application. A separate application is required to be filed for each assessment. If any application or revision is pending, then the applicant has to forward the copy of the application to the said authority in terms of Section 5(3). Therefore, at the first instance, the onus lies on the dealer/applicant to determine the payment payable under Section 7. We have noticed that under Section 7, it is a rate applicable for determining the amount payable, which at the first instance is on the dealer/applicant. In terms of Section 6(1), the designated authority is bound to verify the correctness of the particulars furnished in the application made under Section 5 with reference to all relevant records and determine the amount payable at the rate specified in Section 7. 23. Therefore, at that stage the designated aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd issuance of certificate. If the authority is satisfied about the payment of amount determined under Section 6(1), by an order, settle the arrears of tax, penalty or interest and issue a certificate in such form as may be prescribed, and thereupon the applicant shall be discharged from his liability or interest. In terms of sub-section (2) to Section 8, the designated authority, for reasons, to be recorded in writing, may refuse to settle the arrears of tax, penalty or interest and such orders shall be passed after giving reasonable opportunity to the applicant to show-cause against such refusal. In terms of sub-section (3) to Section 8, the authority notified by the Government may, at any time, within ninety days from the date of issuance of certificate under sub-section (1) of Section 8 by the designated authority, modify the certificate by rectifying any error apparent on the face of the record. Therefore, the applicant to be entitled to certificate under Section 8(1) has to first satisfy the designated authority about the payment of the amount determined under sub-section (1) to Section 6. Even if the applicant satisfies such requirements, still the designated authority has p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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