TMI Blog2009 (7) TMI 1162X X X X Extracts X X X X X X X X Extracts X X X X ..... ry power judiciously by remitting 100 per cent interest and penalty as per the direction of the BIFR through approved "Rehabilitation Scheme"? Whether, on the facts and under the circumstances of the case, the Tribunal was justified in overlooking the legal position that the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985, had an overriding effect on all State enactments? Held that:- The second appellate authority having not considered the true import of section 32 of the SICA Act, the order to that extent in not granting the complete relief of interest and penalty as up to March 31, 2007 is liable to be set aside. Consequently questions (a) and (b) will have to be answered in the negative against the Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judiciously by remitting 100 per cent interest and penalty as per the direction of the BIFR through approved Rehabilitation Scheme ? (d) Whether, on the facts and under the circumstances of the case, the Tribunal was justified in overlooking the legal position that the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985, had an overriding effect on all State enactments? The Tribunal by its order dated July 19, 2008 declined to make reference. Consequently the present application. The order of assessment is for the financial year 1999-2000. The original order of the assessing officer is dated February 28, 2003. It provided for interest and penalty. The applicant herein aggrieved preferred an appeal which appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Foreign Exchange Regulation Act, 1973 (46 of 1973) and the Urban Land (Ceiling and Regulation) Act, 1976 (33 of 1976) for the time being in force or in the memorandum of articles of association of an industrial company or in any other instrument having effect by virtue of any law other than this Act. On behalf of the respondents the learned counsel sought to make a submission that before the scheme is sanctioned, the concerned authority must be heard. In the instant case, the power to waive interest and/or penalty is of the Commissioner. No notice was given to the Commissioner and consequently the scheme as sanctioned being without hearing and/or consent of the Commissioner of Sales Tax is not binding on the authorities under the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been brought to the attention of the appellate authority, could the appellate authority have ignored the scheme. We have already reproduced section 32(1) of the SICA Act. On the reading of the said provision it is clear that once the scheme is sanctioned, the provisions of the section shall have effect notwithstanding anything inconsistent therewith contained in any other law. In other words, even if under the Sales Tax Act it was open to charge interest and impose penalty considering scheme as sanctioned, it would not be open to the authorities including the quasi-judicial authorities under the Act to order payment of interest and/or penalty which is contrary to the sanctioned scheme. To that extent in our opinion, clearly the second app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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