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TMI Blog2015 (1) TMI 723X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessment years 2000-01 and 2001-02 dated 31.10.2002 and 28.10.2003 respectively. The petitioner filed applications under the Samadhan Act for both the assessment years by applications dated 28.8.2010 requesting for settlement of their case at the earliest. Both the applications were processed by the first respondent and an order was passed by the second respondent dated 22.2.2011 calling upon the petitioner to pay the differential amount. In fact, this order was passed in terms of Section 6(2) of the Act. On receipt of the said order, the petitioner submitted two representations dated 8.3.2011 stating that they have complied with the conditions mentioned in the Samadhan Scheme and calculated the amount correctly as per the Scheme and reported the taxable turnover correctly, therefore, requested for the copy of the workings so as to enable them to submit their reply. This was followed by another representation dated 7.10.2011. Since the copies of the documents sought for were not forthcoming, the petitioner moved this Court by filing a writ petition in W.P.No.27540 of 2011 praying for issuance of a writ of mandamus to provide the details as requested by the petitioner in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal surcharge and central sales tax or penalty or interest pertaining to the assessment years upto 2006-2007 for which assessment has been made prior to 01.08.2011 under the relevant Act and pending collection on the date of filing of application under the Settlement Act. 20. It is not in dispute that the first respondent is the designated authority under the provisions of the Act and appointed by the Government under Section 3. The persons, who are eligible for settlement under the Act has to fulfill the conditions under Section 4 and in this case it is not in dispute that the petitioner was entitled to avail the provisions of the Settlement Act. The procedure for filing an application has been spelt out in Section 5 of the Act. Section 6 deals with determination of amount payable by the applicant and Section 7 deals with rate applicable in determining amount payable and they are as follows: ''5. Application for settlement.- (1) An application for the purp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sp; 7. Rate applicable in determining amount payable. - The amount payable by the applicant and to be waived shall be determined as follows:- (a) Where it relates to arrears of tax which was assessed on the best of judgment due to non-production of accounts with corresponding arrears of penalty and interest, the application shall pay forty per cent of arrears of tax pending collection on the date of application along with interest calculated at seven and a half per cent per annum thereon and on such payment of tax, the balance of tax and interest and the entire penalty shall be waived. (b) Where it relates to arrears of tax, including any arrears of tax accrued due to non-filing of declaration forms which was in excess of the tax admitted as per the returns filed for the year with the corresponding arrears of penalty and interest, the applicant shall pay forty per cent of such arrears of tax pending collection on the date of application along with interest at seven and a h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... py of the application to the said authority in terms of Section 5(3). Therefore, at the first instance, the onus lies on the dealer/applicant to determine the payment payable under Section 7. We have noticed that under Section 7, it is a rate applicable for determining the amount payable, which at the first instance is on the dealer/applicant. In terms of Section 6(1), the designated authority is bound to verify the correctness of the particulars furnished in the application made under Section 5 with reference to all relevant records and determine the amount payable at the rate specified in Section 7. 23. Therefore, at that stage the designated authority has to verify as to whether the rates as calculated by the petitioner while submitting application under Section 7 was correct. In the event the designated authority finds any discrepancy, in terms of Section 6(2), shall demand further amount payable in the form prescribed. However, there is an important rider in sub-section 2 to Section 6, which states that if the amount paid by the applicant along with application (in terms of Section 7) falls s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority, for reasons, to be recorded in writing, may refuse to settle the arrears of tax, penalty or interest and such orders shall be passed after giving reasonable opportunity to the applicant to show-cause against such refusal. In terms of sub-section (3) to Section 8, the authority notified by the Government may, at any time, within ninety days from the date of issuance of certificate under sub-section (1) of Section 8 by the designated authority, modify the certificate by rectifying any error apparent on the face of the record. Therefore, the applicant to be entitled to certificate under Section 8(1) has to first satisfy the designated authority about the payment of the amount determined under sub-section (1) to Section 6. Even if the applicant satisfies such requirements, still the designated authority has power to refuse to settle the arrears of tax, penalty or interest by recording reasons in writing after issuing show-cause notice.'' 4. From a reading of the above order, it is seen that the Scheme of the Samadhan Act has provided necessary checks and balances and it is not as if as and when applications are filed under Section 7, they are automatically accepted. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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