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TMI Blog2020 (7) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... erence to a penalty imposed where there is no best judgment assessment made or contemplated. The requirement is, filing of an application before the dates specified and the withdrawal of the appeals filed by the assessee. There is no requirement of a specific provision requiring the State to withdraw the appeal filed, since the settlement arrived at on the basis of the statutory provision is binding on the Department. Here we emphasize sub-section (2), which contemplates cases in which revenue recovery proceedings have already been initiated; which proceedings have to be withdrawn when the matter is settled under Section 31A. That the State's appeal would be rendered infructuous on a settlement arrived at under Section 31A is an ine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that there is an appeal intended by the State from the order of the first appellate authority. 2. The learned Single Judge found that the intention in introducing an Amnesty Scheme was to bring an expeditious end to the pending litigation while the State is also assured of recovery of tax dues. Reading the scheme as such it was found that there is no provision by which the application can be rejected on the mere contemplation of an appeal before the statutory authorities. The rejection was based on a Circular of the Tax Department, which was held to travel beyond the statutory provisions under the guise of a clarification. 3. We have heard Sri. C.E. Unnikrishnan, learned Special Government Pleader (Taxes) for the State and Sri.Harisan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Section 31A is a non-obstante provision, by which an option is provided to any assessee having arrears of tax or any other amounts to pay the principal amount of tax in arrears, upon which the assessee would stand absolved from the interest due and also any penalty imposed. The proviso also mandates that for such settlement to be arrived at, the assessee shall also be liable to pay applicable tax relating to a penalty which is not utilized or not liable to be utilized for a best judgment assessment. Sub-section (2) requires that in every case where revenue recovery is initiated to collect arrears due; when a settlement is arrived at under sub-section (1), the revenue recovery proceedings shall stand withdrawn for reason of the settleme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or interest from being credited towards tax. Sub-section (9) prohibits any refund or any adjustment subsequently of the amounts settled under the Scheme. 7. The Circular subsequently issued by the Department, produced as Exhibit P5 in W.P(C) No.31691 of 2019 from which W.A.No.573 of 2020 arises, however speaks of the appeals filed by the State being continued and the assessees, who are respondent in such appeals, being not eligible for availing the provisions of the Scheme. Immediately we have to notice that even the Circular only speaks of cases in which appeals have already been filed by the State. The rejection orders in two cases contemplate the filing of an appeal. Exhibit P4 in W.P(C) No.31691 of 2019 from which W.A.No.573 of 2020 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he basis of the statutory provision is binding on the Department. Here we emphasize sub-section (2), which contemplates cases in which revenue recovery proceedings have already been initiated; which proceedings have to be withdrawn when the matter is settled under Section 31A. That the State's appeal would be rendered infructuous on a settlement arrived at under Section 31A is an inevitable consequence on deposit of amounts determined under sub-section (7). 9. In this context, we also have to notice that there is no power given to the State to reject an application and the requirement under sub-section (7); on the filing of an application, is determination of the amounts due as tax, and other amounts, and intimation for the purpose o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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