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TMI Blog2017 (10) TMI 1165X X X X Extracts X X X X X X X X Extracts X X X X ..... pass necessary orders in accordance with law - petition allowed. - W.P.No.25961 of 2017, W.M.P.No.27539 of 2017 - - - Dated:- 4-10-2017 - T. S. Sivagnanam, J. For the Petitioner : Mr. S. Ramanathan For the Respondents : Mr. K. Venkatesh ORDER Heard Mr. S. Ramanathan, the learned counsel appearing for the petitioner and Mr. K. Venkatesh, the learned Government Advocate, who accepts notice on behalf of the respondents. With consent of learned counsel appearing on either side, the Writ Petition is taken up for disposal. 2. The petitioner has filed this Writ Petition, challenging the order passed by the first respondent, by which, the application filed by the petitioner under the provisions of Tamil Nadu Sales Tax Settlement of Arrears Act 2010, (i.e., Act by which, a Samadhan Scheme providing for settlement of arrears of tax, penalty or interest was brought in by the Government) was rejected. 3. The impugned order is dated 03.11.2014. The reasons set out by the petitioner for approaching this Court, challenging the said order at this juncture, is on account of the fact that, such order was not intimated to the petitioner, and only when the petitioner recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pe of the Samadhan Act and as to how the Scheme of the Act operates and at this stage, it will be useful to refer to the relevant portions of the order in the writ petitions, as follows:- ''18.........The Act provides for settlement of arrears of tax, penalty or interest pertaining to sales tax and the matter connected therewith or incidental thereto. The Act came into force on 26.09.2011. Section 2(1)(a) defines 'applicant' to mean the dealer as defined in the relevant Act. The 'relevant Act' has been defined under Section 2(1)(e) to mean the repealed Tamil Nadu General Sales Tax Act, repealed Tamil Nadu Sales Tax (Surcharge) Act and the repealed Tamil Nadu Additional Sales Tax Act as well as the Central Sales Tax Act and the Rules made or notifications issued under this enactment. 19. The arrears of tax, penalty or interest has been defined in Section2(1)(b) and it includes additional sales tax, surcharge, additional surcharge and central sales tax or penalty or interest pertaining to the assessment years upto 2006-2007 for which assessment has been made prior to 01.08.2011 under the relevant Act and pending collection on the date of filing of ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urpose, 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 follows:- (a) Where it relates to arrears of tax which was assessed on the best of judgment due to non-production of accounts with corresponding arrears of penalty and interest, the application shall pay forty per cent of arrears of tax pending collection on the date of application along with interest calculated at seven and a half per cent per annum thereon and on such payment of tax, the balance of tax and interest and the entire penalty shall be waived. (b) Where it relates to arrears of tax, including any arrears of tax accrued due to non-filing of declaration forms which was in excess of the tax admitted as per the returns filed for the year with the corresponding arrears of penalty and interest, the applicant shall pay forty per cent of such arrears of tax pending collection on the date of application along with interest at seven and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 authority has to verify as to whether the rates as calculated by the petitioner while submitting application under Section 7 was correct. In the event the designated authority finds any discrepancy, in terms of Section 6(2), shall demand further amount payable in the form prescribed. However, there is an important rider in sub-section 2 to Section 6, which states that if the amount paid by the applicant along with application (in terms of Section 7) falls short of not more than 10% of the amount determined under sub-section (1), then and then alone the question of demanding further amount under Section 6(2) would arise. If the applicant failed to fulfill the conditions under sub-section (2) of Section 6, his application stands summarily rejected in terms of sub-section (3) of Section 6. Thus, the Act being a Settlement Act to give r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 power to refuse to settle the arrears of tax, penalty or interest by recording reasons in writing after issuing show-cause notice.'' 9. Reverting to the case on hand, it appears that the petitioner has filed the applications for settlement of arrears under Samadhan Scheme for the assessment years 1991-92 and 1992-93 on the tax liability that was given effect to by the Assessing Officer pursuant to the Appellate Deputy Commissioners orders, dated 16.2.2010, viz., Tax Demanded Tax paid under Samadhan 1. Rs.1507404/- - ₹ 1,14,428/- 2. Rs.1507404/- - ₹ 4,18,941/- Total: - ₹ 5,33,369/- 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment orders, it would automatically supersede the orders of the Assessing Officer and thereby, the original assessment orders, dated 30.10.2009 are no longer in force, unless and until the order of the Appellate Deputy Commissioner is stayed or set aside by the Tribunal, which is the appellate authority over the orders of the Appellate Deputy Commissioner. 12. In this regard, it is worthwhile to refer the decision of the Hon'ble Supreme Court, in Union of India v. Kamlakshi Finance Corpn. Ltd., reported in 1992 Supp (1) SCC 443 wherein, it has been held as under in para 6: 6. It cannot be too vehemently emphasised that it is of utmost importance that, in disposing of the quasi-judicial issues before them, revenue officers are bound by the decisions of the appellate authorities. The order of the Appellate Collector is binding on the Assistant Collectors working within his jurisdiction and the order of the Tribunal is binding upon the Assistant Collectors and the Appellate Collectors who function under the jurisdiction of the Tribunal. The principles of judicial discipline require that the orders of the higher appellate authorities should be followed unreservedly by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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