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TMI Blog2017 (9) TMI 1305X X X X Extracts X X X X X X X X Extracts X X X X ..... W.P.Nos.23956 to 23958 of 2017 & W.M.P.Nos.25233 to 25238 of 2017 - - - Dated:- 6-9-2017 - T. S. Sivagnanam, J. For Petitioner : Mr.R.Senniappan For Respondents : Mr.K.Venkatesh ORDER Heard Mr.R.Senniappan, learned counsel for the petitioner and Mr.K.Venkatesh, learned Government Advocate appearing for the respondents. With the consent on either side, these writ petitions are taken up for final disposal. 2. The petitioner, a registered dealer on the file of the second respondent under the provisions of the Central Sales Tax Act, 1956 (in short CST Act ) and the Tamil Nadu General Sales Tax Act, 1959 (in short TNGST Act ) is before this Court challenging the notices issued by the first respondent dated 31.03.2017, di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns, if an opportunity of personal hearing had been granted, the petitioner would have been able to clarify as to the effect of the judgment of the Hon ble Division Bench in the case of Amutha Mills Private Limited (supra). The first respondent seeks to distinguish the judgment by stating that in the case of Amutha Mills Private Limited (supra), the IFST agreement was not cancelled whereas, it has been cancelled in the case of the petitioner. The case in Amutha Mills Private Limited (supra) was that as per the terms of the deferral agreement, in the event of default in the repayment of IFST deferral loan, the loan can be recoverable along with interest at 24% per annum calculated from the due date for repayment of loan and not from the date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by them in Form I dated 30.04.2012. 8. The said Srinivasa Steel had entered into an IFST deferral agreement for repayment under the deferral scheme after a period of 9 years. Thereafter, the petitioner firm availed the Samadhan Scheme under the Tamil Nadu Sales Tax (Settlement of Arrears) Tax, 2011 by filing an application under Form I, dated 30.04.2012. As per the terms of the agreement, the petitioner therein was entitled for tax holiday from 07.07.1995 to 06.07.2004. Ultimately, the IFST deferral agreement was cancelled on 16.12.2003, in violation of terms of condition of agreement. While so, a show cause notice was issued by the Joint Commissioner proposing to reject the application filed by the petitioner therein under the Sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounsel appearing for the appellant/petitioner submitted that as per the terms of the deferral agreement, in the event of default in the repayment of the IFST deferral loan, the loan can be recoverable along with the interest at 24% per annum calculated from the due date for repayment of loan. Therefore, the penal interest, if any, should be calculated only from the due date for repayment of the loan and not from the date on which the IFST deferral loan was availed. He submitted that the issue has already been settled by the Tamil Nadu Taxation Special Tribunal in O.P.Nos.65 to 68 of 1998. The decision of the Special Tribunal has been accepted by the Commercial Taxes Department. This position is not disputed by the learned Special Government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tation. 11. Therefore, this Court is inclined to interfere with the impugned proceedings and remand the matter to the first respondent for fresh consideration, as the petitioner has submitted an application for re-considering the request made by the petitioner vide their application dated 17.04.2017. 12. Thus, for the above reasons, these writ petitions are allowed, the impugned notices are set aside and the matter is remanded to the first respondent for fresh consideration, who shall take note of the decisions referred to above and pass orders on merits and in accordance with law after affording an opportunity of personal hearing to the petitioner. No costs. Consequently, connected miscellaneous petitions are closed. - - TaxTMI - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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