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M/s. Cheran Cements Limited Versus The Joint Commissioner (CT) & The Commercial Tax Officer,

2015 (3) TMI 1109 - MADRAS HIGH COURT

Rejection of the settlement application - Best Judgment assessment - Sections 7(a) and 7(c) - Held that:- Petitioner company's properties is sought to be auctioned by tomorrow. Further, it is stated by the learned counsel appearing for the petitioner that the petitioner company is already in a financial crunch. According to the Petitioner Company, the interpretation given by the respondents in respect of the Sections 7 of the Act is wrong. - Before even filing of Settlement, an applicant ha .....

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argument cannot be accepted for the reason that there is a provision to the effect that which shall be deemed to have been withdrawn from the date of making of application under sub-section(1) of Section 5. - There is no infirmity or illegality in the orders impunged in these Writ Petitions - Decided against Assessee. - W.P(MD).Nos.4156 to 4159 and 4189 to 4194 of 2015 and M.P.(MD).Nos.1 and 2 of 2015 (in all Wps) - Dated:- 24-3-2015 - MR. E B.RAJ ENDRAN, J. For petitioner : Mr.S.Rajasekar For .....

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r, the respondents had wrongly interpreted the Act and applied Sections 7(a) and 7(c) together for arriving at the amount. In other words, a Best Judgment assessment as contemplated under Section 7(a) is distinctively different from assessment made under Section 7(c). Therefore, the rejection of the settlement application by the respondents is absolutely not correct. Further, the Petitioner Company is not liable to pay the amount as sought for by the respondents. Due to wrong interpretation, the .....

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well that on the date when he applies for the Settlement, necessarily, he has to comply with the mandatory provisions, namely, Section 6 and 7 of the Tamil Nadu Sales Tax (Settlement of Arrears) Act, 2011. (for short 'the Act'). Conveniently, the petitioner company had paid the lesser amount and claiming the Settlement Certificate as if the Petitioner Company has paid the amount as per the Best Assessment Order, which is far below than the actual amount to be remitted as prescribed in t .....

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y very low. Similarly, in the same order, in the interest portion, the Petitioner Company has to pay the amount along with interest was ₹ 82,05,177/-. But, the petitioner Company had paid ₹ 25,78,636/-. Therefore, the balance amount is to be paid by the petitioner Company is ₹ 56,25,6541/-. The difference in depositing the amount is 69%. 6. He would further contend that, at the time of filing of the Settlement Application itself, he had more than 69% of the amount due, which is .....

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on and for personal hearing to the Petitioner Company and thereafter, directed the authorities concerned to pass orders afresh. The learned Additional Government Pleader would point out that the orders impugned in these Writ Petitions are passed after giving opportunity of hearing to the petitioner company. In any view of the matter, when the petitioner company fails to comply with the norms laid down in the Settlement Scheme, he becomes ineligible in availing the Scheme itself. Therefore, right .....

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is wrong. For better understanding of the case, Clause 7 of the Tamil Nadu Sales Tax (Settlement of Arrears) Act,2011, is usefully extracted below:- 7.Rat e applic abl e in determining amount payabl e:- 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 nonproduction of accounts with corresponding arrears of penalty and interest, the applicant shall pay forty per cent of a .....

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t shall pay forty per cent of such arrears of tax pending collection on the date of application along with interest 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. c) Where it relates to arrears of tax, which was admitted as tax due as per return filed for the year with corresponding arrears of penalty and interest, the applicant shall pay the entire arrears of tax pending collection along with int .....

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n filing of Settlement, an applicant has to necessarily comply with the mandatory conditions laid down in the Scheme. There is no dispute in this regard. Now, the petitioner wants to take advantage of Section 7(a) alone whereas, the authorities, in the case on hand, have invoked 7(a) and 7(c) of the Act together. Therefore, he has come forward with these Writ Petitions for the relief stated earlier. 10. As rightly pointed by the Additional Government Pleader, Section 7 does not say 'either&# .....

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