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2018 (9) TMI 300 - HC - VAT and Sales TaxRecovery of arrears of tax, interest and penalty - recomputation of amounts - Karasamadhana Scheme-2017 - State had contended that the amount in deposit during the pendency of appeals was to be adjusted first against the head of ‘interest’ and not under the head of ‘tax’ as had been resorted to by the assessee - rejection of their applications on the ground of non-compliance with the eligibility conditions as regards deposit of ‘arrears of tax, interest and penalty’ as envisaged under the Scheme. Held that:- The payments made which are referred to by any nomen-clature being made while preferring an appeal or as a prerequisite to consider the application for stay being statutorily mandated cannot be the subject matter of appropriation till the adjudication process has reached a finality and such deposits could only be regarded as ‘colourless deposits.’ The finding of the learned Single Judge as regards the payments made pending adjudication being in the nature of ‘colourless deposits’ requires no interference - The very Scheme as envisaged in its preamble provided for waiver of 90% of penalty and interest remaining unpaid as on 15.03.2017; and further, it provided for payment of tax including arrears and 10% of penalty resulting in waiver of remaining penalty and interest. The purpose and intent of the Scheme was clear that all tax would be cleared and only a portion of penalty and interest need be paid. In this particular case, it is clear that the payments made by the respondents for admitting their appeals under various statutory provisions were under dispute and were not referable to any particular component of tax or penalty or interest and were only ‘colourless deposits’. Accordingly, these remittances cannot be deemed to be paid and offset from unpaid amount for calculation of arrears to be waived. Appeal dismissed.
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