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TMI Blog2018 (11) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... gible for the settlement under the Tamil Nadu Sales Tax (Settlement of Arrears) Act, 2008. The petitioner also sought for a direction to the respondents to accept their application and settle the arrears of interest. 2. As the issue involved in all these writ petitions is one and the same, they are disposed of by this common order. 3. The facts of the case are as follows: 3.1. The petitioner before this Court is a firm and an assessee on the file of the second respondent. The subject assessment years are 1997-98 to 2000-01, for which, on various dates during 2001 & 2002, according to the petitioner, adverse assessment orders came to be passed. Hence, the petitioner has preferred appeals before the Appellate Assistant Commissioner (CT), V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 2(1)(b) of the Act, Samadhan Scheme would apply in cases where the assessment has been made prior to 01.04.2002. As per Section 4 of the Act, no appeal/revision should be pending on the date of filing the application for Samadhan Scheme. Therefore, the petitioner has withdrew the appeals before the Tribunal and has made an application under Samadhan Scheme by paying 25% of penal interest, ie., eligible amount, however, the applications of the petitioner were rejected by way of the impugned orders and hence, the present writ petitions came to be filed. 4. Learned Counsel for the petitioner would submit that the revisional authority has set aside the demand of penal interest and remanded the matter, with a direction to the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the first respondent has rightly held that the petitioner is not eligible for Samadhan Scheme and the learned Additional Government Pleader prays for dismissing the writ petitions. 7. Heard the learned Counsel appearing on either side and perused the materials placed before this Court. 8. The facts of this case are not in dispute. As per the Second proviso to Section 24(3) of the Tamil Nadu General Sales Tax Act, if an appeal/revision is preferred, then the interest payable is postponed till disposal of appeal/revision and after such disposal, it shall be calculated on the amount that becomes due. For better appreciation, the Second proviso to Section 24(3) is extracted thus: "Section 24(3): .. Provided further that where a dealer o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioner. The Assessing Authority ought to have waited till the finality of appeal filed by the dealer. In view of the above facts, the levy of penal interest under Section 24(3) of the Act made by the Commercial Tax Officer, Aruppukottai for the above year is set aside and remanded back to the Assessing Officer for denova consideration after receipt of the order on the appeal petition filed by the petitioner before the Sale Tax Appellate Tribunal (AB), Madurai, against the levy of tax on the sale of hank yarn obligation." 10. A bare reading of the proviso and the revision order would make it crystal clear that the demand is only postponed and not completely deleted, as rightly contended by the petitioner. 11. Section 4 of the Act read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cting the Tamil Nadu Sales Tax (Settlement of Arrears) Act, 2008, is for expeditious settlement of arrears of tax, penalty or interest. Our legislation itself is a welfare legislation and that is why Samadhan Scheme came into action. Therefore, the first point raised by Department that there is no demand as on the date of application lack merits and the same is accordingly, rejected. 13. The second point raised by the Department is that as per Section 4 of the Act, arrears accrued prior to 01.04.2002 alone is eligible for settlement and in this case, though assessment has been completed prior to the crucial date, demand and levy of interest accrued only on 07.05.2005. This Court is not inclined to accept this stand. This is because, when a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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