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TMI Blog2025 (2) TMI 739X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeal Case No. JR/JKSYA-06/2023-24 for the period 2002-03, wherein the Appeal filed by the Petitioner in terms of 'Jharkhand Karadhan Adhiniyamon Ki Bakaya Rashi Ka Samadhan Act, 2022' [hereinafter referred to as 'Settlement Scheme of 2022' for short], has been dismissed. (ii) For issuance of further appropriate writ/order/direction, including Writ of Certiorari, for quashing/setting aside the order of settlement issued under Jharkhand Karadhan Adhiniyamon Ki Bakaya Rashi Ka Samadhan Act, 2022 contained in Form JKSY-V dated 12.05.2023 [Annexure-9] passed by Respondent No. 4 pertaining to the period 2002-03 to the extent the amount of pre-deposit of Rs. 49 Lakhs, being the amount of disputed tax paid by Petitioner has not been allowed to be adjusted against the final settlement amount while issuing settlement order, due to which, Petitioner was compelled to deposit excess payment of Rs. 29,40,000/-. (iii) For issuance of further appropriate writ/order/ direction, including Writ of Mandamus, directing the Respondents to refund an amount of Rs. 29,40,000/- being the excess amount realized by Respondents in terms of Settlement Scheme of 2022 by adopting the mechanism of deducting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmined in the following manner:- Sl. No. Particulars Amount (Rs.) 1. Amount of Admitted Tax 33,79,374.00 2. Amount of Assessed Tax 6,27,82,417.00 3. Remaining balance to be paid (2-1) 5,94,03,043.00 4. Pre-Deposit 49,00,000.00 5. Balance after Pre-Deposit (3-4) 5,45,03,043.00 6. Settlement Amount (40%) 2,18,01,217.20 6. However, as per petitioner, determination of tax liability should have been as under:- Sl.No. Particulars Amount (Rs.) 1. Amount of Admitted Tax 33,79,374.00 2. Amount of Assessed Tax 6,27,82,417.00 3. Remaining balance to be paid (2-1) 5,94,03,043.00 4. Settlement amount (40%) 2,37,61,217.20 5. Pre-Deposit 49,00,000.00 6 Final Settlement amount (4-5) 1,88,61,217.20 7. Due to the aforesaid difference in determination of amount payable under Amnesty Scheme, an excess amount of Rs. 29,40,000/- i.e. [Rs. 2,18,01,217.20 - Rs. 1,88,61,217.20] was determined as payable by petitioner which petitioner paid under protest. Under the Amnesty Scheme, vide Section 8 thereof, provisions were incorporated for filing Appeal before Additional Commissioner of State Tax (Appeal), Jamshedpur Division, Jamshedpur and, accordingly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efinition of "disputed amount" would mean the amount disputed by an assessee minus the amount already paid by it at any interim stage of the proceedings, may be either as pre-deposit/deposit/suo-motu deposit etc. and, thus, while passing the settlement order, rightly the settlement officer issued certificate after first adjusting the amount of pre-deposit from disputed amount and, thereafter, extending the benefit of waiver under the Scheme. 14. We have carefully considered the submissions of the parties at bar and perused the provisions of 'Jharkhand Karadhan Adhiniyamon Ki Bakaya Rashi Ka Samadhan Act, 2022' and the corresponding Rules. For the sake of ready reference, certain relevant provisions of the aforesaid Amnesty Scheme is quoted herein under:- 2 DEFINITIONS- (i) "Admitted tax"- means the amount of tax admitted as being payable as per the returns filed by the person under the relevant Act; (ii) "Assessed tax"- means tax, interest and penalty determined as being payable under an order of assessment or reassessment under the relevant Act; (vii) "Dispute" means an Appeal, Revision, Review, Reference, Writ Petition, or Special Leave Petition, arising out of any order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of this Act, old arrears of tax or tax in a dispute pending under the relevant Act may, on an application made in this behalf by a person, be settled upon payment of the settlement amount as specified in column 3 and 4 of the Table below: No. Type of Cases Settlement amount 1 2 3 (Tax) 4 (Interest) 1 Arrear of admitted tax, interest and penalty 100% amount of admitted tax 10% of unpaid amount of interest and penalty (90% waiver). 2 Arrear amount of assessed tax upto Financial year 2017-18. 40% of the difference between the tax component of assessed tax and the amount of tax already paid (60% waiver) 10% of the unpaid amount of interest and penalty in that statutory order (90% waiver) 3 Arrear amount related to statutory declarations / Forms / certificates upto Financial Year 2017-18 50% of the unpaid amount of tax calculated after the deduction of (50% waiver) (a) The amount of tax involved in the value of acceptable Forms/ Certificates/Declarations submitted by the applicant before the prescribed authority under this Act, and (b) The amount already paid towards the total arrear of tax. 10% of the unpaid amount of interest and penalty as per statutor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00.00 5. Balance after Pre-Deposit (3-4) 5,45,03,043.00 6. Settlement Amount (40%) 2,18,01,217.20 21. In our considered opinion, this calculation made by the respondent is erroneous for the following reason. If an assessee is having a liability of Rs. 1 crore and he does not pay any amount, he will get benefit of 60% waiver as per the scheme and he will have to pay Rs. 40 lakhs. But if an assessee who is having a tax liability of Rs. 1 Crore, pays as pre-deposit pending appeal Rs. 30 lakhs, his balance tax liability is Rs. 70 lakhs; benefit which is to accrue to him cannot be computed at 60% of Rs. 70 lakhs i.e. Rs.42 lakhs. If this is done, then he would be worse off by paying Rs.30 lakhs (as he would get a lesser benefit of only Rs. 42 lakhs under the scheme) than an assessee who does not pay any amount pursuant to demand and gets waiver of 60% of Rs.1 Crore i.e. Rs. 60 Lakhs. This could never have been the intention of the scheme. Similar view has been taken in Vassu Enterprises & analogous cases v. Union of India & Ors. (2023) 11 GSTR 21 while interpreting the Central Amnesty Scheme i.e. Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, it was held:- '28. E ..... X X X X Extracts X X X X X X X X Extracts X X X X
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