Tax waiver under a government order requires factual verification of conditions before relief; remand for fresh disposal upheld.

A government order granting waiver of tax liability under the Tamil Nadu General Sales Tax Act applied only on fulfilment of its stated conditions, including factual verification of whether dealers had collected tax or made provision for it. As no such verification had been undertaken by the assessing authority, the Tribunal was justified in remitting the matter for fresh consideration. The Revenue's reliance on a different decision was rejected as distinguishable on facts and on the terms of the exemption order. The remand was upheld and the Revenue's revision failed.

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Issues: Whether the assessees were entitled to the benefit of G.O. Ms. No. 1089 dated 29th June, 1977 for waiver of tax liability arising under section 7-A of the Tamil Nadu General Sales Tax Act, 1959, and whether the Tribunal was right in remanding the matters for fresh disposal.

Analysis: The assessees claimed that the Government Order, issued after the Supreme Court upheld the vires of section 7-A of the Tamil Nadu General Sales Tax Act, 1959, conferred relief for the relevant period, but the benefit was subject to fulfilment of the conditions stated in the order. The Court noted that the Government Order required factual verification, especially whether the dealers had collected any amount by way of tax or made provision for tax liability, and that no such investigation had been undertaken by the assessing authority. The Tribunal was therefore justified in remitting the matter for fresh consideration. The decision relied on by the Revenue was held to be distinguishable because it dealt with a different factual setting and with an exemption order that could not be extended beyond its express terms.

Conclusion: The remand ordered by the Tribunal was upheld, and the revision filed by the Revenue failed.

Ratio Decidendi: A statutory benefit or waiver under a government order can be granted only after the prescribed conditions are factually established, and where such verification has not been made, remand for fresh disposal is proper.

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