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TMI Blog2025 (2) TMI 738X X X X Extracts X X X X X X X X Extracts X X X X ..... eal Case No. JR/JKSYA-01/2023-24 for the period 2001-02, 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 dated 3rd May, 2023 (Anneuxre-9) passed by Respondent No.3 under Settlement Scheme of 2022 pertaining to the period 2001-02 to the extent the amount of pre-deposit of Rs. 2.20 crores, 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. 1,32,03,446/- or alternatively Rs. 1,18,02,056/- as per revised computation filed before the Appellate Authority (Annexure-15). (iii) For issuance of further appropriate writ/order/ direction, including Writ of Mandamus, directing the Respondents to refund an amount of Rs. 1,32,03,446/- or alternatively, to refund an amount of Rs. 1,18,02,056/- as per revised computa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ereinafter referred to as 'Rules of 2023']. 5. Petitioner being desirous of availing benefit under the Scheme filed online application in prescribed format in terms of Rule 3(1) of Rules of 2023 but it is the case of the petitioner that while filing online application form suo-motu computation of the benefit under Amnesty Scheme was determined, wherein the amount of pre-deposit of Rs. 2.20 crores was first adjusted against the disputed amount and upon remaining balance, waiver of 60% and 50% of tax respectively was extended to petitioner. The same was illustrated as under:- Amount admitted in Return 8,17,38,401/- Amount of Tax assessed 13,63,45,498/- Balance to be paid 5,46,07,097/- Less amount of pre-deposit 2,20,00,000/- Remaining Balance 3,26,07,097 Waiver granted [60% of 5,18,04,317 after deduction of Rs. 2,20,00,000 & 50% of Rs. 28,02,780 i.e. Rs.1,78,82,590 + 14,01,390] 1,92,83,980/- Amount to be paid 1,33,23,117/- N.B. Amount directed to be paid is for Rs. 1,33,26,563.12 (marginal difference in computation for Rs. 3446/-) + Rs. 16239/- on account of balance amount as admitted tax. 6. It is the case of petitioner that under the Settlement Scheme, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isputed amount' is defined under Amnesty Scheme itself vide Section 2 (i) and 2 (viii). 11. It was further submitted that Section 3 of Amnesty Scheme clearly provided, inter alia, that amount of waiver was to be calculated being the difference between the tax component of assessed tax and the amount of tax already paid. It was submitted that amount of tax already paid is the amount of admitted tax paid by an assessee and would not include any amount pertaining to disputed tax which has been paid either as pre-deposit or as condition of stay, etc. 12. It has been submitted that almost identical provisions of Central Amnesty Scheme i.e. Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 came up for interpretation by this Hon'ble Court, wherein exactly similar dispute was adjudicated by this Hon'ble Court and it was held that intent of the Scheme was to give waiver of disputed tax amount and, merely, because some amount towards pre-deposit/deposit is made by an assessee, the same cannot be first deducted from disputed tax amount for determining the measure for extending benefit of waiver. 13. Per contra, Mr. Ashok Yadav counsel for Respondent-State while referring to the paragr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ales Tax Tribunal (vi) The High Court; (vii) The Supreme Court of India; Explanation:- For the purposes of this clause a dispute includes: (i) Any levy of tax, interest and penalty by an authority prescribed and/or authorized under the relevant Acts, which has not been paid into Government Treasury, or (ii) A proceeding for recovery of any tax, interest, or penalty pending for recovery under the Bihar and Orissa Public Demand Recovery Act, 1914; (viii) "Disputed Amount" , in relation to a dispute, means any tax or interest or penalty which has been determined as being payable by the person pursuant to an order of assessment, reassessment, scrutiny or any other order made or passed under the Relevant Acts and which is not admitted and for such demand a litigation has been filed before any Appellate Authority or Forum but shall not include any demand in pursuant to an order of assessment, reassessment, scrutiny or any other order made or passed under the Relevant Acts where the Government has filed any case against such demand before any Appellate Authority or higher Courts. 17. A perusal of Settlement Scheme would reveal that under Settlement Scheme, term 'admitted tax' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty as per statutory order (90% waiver) Provided that, where the amount of tax involved in the value of acceptable forms/ certificates/ declarations, alongwith the amount already paid, becomes more than the arrear amount, no refund shall be made as a result of the Settlement. Provided further that, no application for settlement shall be entertained by the authority, in which the State Government/Department has moved to higher court. Explanation-I Where settlement application is made only against interest and penalty order, it shall be considered provided the relevant tax component in the statutory order has been paid; Explanation-II For the purpose of settlement of dispute, each statutory order/Demand Note issued by the department/ authority shall be construed as one dispute and person has to apply separately for settlement for each such dispute.' 20. In the present case, disputed tax of the petitioner also pertained to non-furnishing of declaration forms and, thus, waiver of tax to the extent of 60% and 50% respectively were applicable to petitioner. It is not in dispute that disputed amount was Rs. 5,18,04,317/- and amount of Rs. 2,20,00,000/-was deposited as pre-deposit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aiver of 60% and 50% respectively, but while computing the tax liability, Settlement Officer first deducted the amount of pre- deposit from the amount in dispute and, thereafter, extended the benefit of waiver under the scheme which is clearly travelling beyond the contours of the scheme itself. 23. The methodology adopted by the assessing officer can be summarized in the following chart:- Amount admitted in Return 8,17,38,401/- Amount of Tax assessed 13,63,45,498/- Balance to be paid 5,46,07,097/- Less amount of pre-deposit 2,20,00,000/- Remaining Balance 3,26,07,097 Waiver granted [60% of 5,18,04,317 after deduction of Rs. 2,20,00,000 & 50% of Rs. 28,02,780 i.e. Rs.1,78,82,590 + 14,01,390] 1,92,83,980/- Amount to be paid 1,33,23,117/- N.B. Amount directed to be paid is for Rs. 1,33,26,563.12 (marginal difference in computation for Rs. 3446/-) + Rs. 16239/- on account of balance amount as admitted tax. 24. So, in our opinion, determination of tax liability under the Scheme was to be undertaken in the following manner and not as done by the assessing officer :- Part-1 Admitted amount as per return of the Petitioner. Rs. 8,17,38,401/- Amount paid as admi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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