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2009 (8) TMI 767 - RAJASTHAN HIGH COURTAbatement of application of settlement - amendment vide Finance Act, 2007 w.e.f. 1.6.2007 - applications were filed before 1.6.2007 - the instant matters pertain to applications being filed before the Settlement Commission on or before June 1, 2007 and all such applications being finally decided by the Commission by March 31, 2008, what has been pointed out by counsel for the respective parties is that the Settlement Commission has failed to comply with mandate pro- vided under section 245D(4) of the Act and if having failed to comply with the statutory requirement-legal obligation whereof is cast upon it, as a result of violation whereof, the orders impugned cannot be said to be in consonance with the requirement of law. - Held that: Question arises for consideration as to whether in the facts of the instant cases, there can be considered to be true compliance with the statutory mandate under section 245D(4) of the Act. There cannot be two opinions about it and the irresistible conclusion is that the Settlement Commission has failed to afford a reasonable opportunity of hearing nor examined the records as per the statutory requirement of law and has passed the orders impugned without due application of mind ; in such circumstances, the orders impugned in no manner are legally sustainable and are in violation of section 245D(4) of the Act. Remanded matters - The Settlement Commission holds the authority under the Act and power is vested and only by amendment, vide the Finance Act, 2007 by putting rider of March 31, 2008, the Legislature only intended that if applications remained pending, it stands abated but it will not render the Settlement Commission functus officio to examine matter afresh after orders having been passed remitting back to the Settlement Commission. Matters are remitted back to the respective Settlement Commission Benches to decide the applications of the assessees filed under section 245C after affording opportunity of hearing to the parties - as a consequence whereof, if there would be any refund ordered, the assessee would certainly be entitled for interest at 15 per cent. per annum
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