Statutory remission for sick units under sales tax law operates from the scheme's cut-off date, with interest relief limited to the postponement period.

Section 55 of the Gujarat Sales Tax Act, 1969 authorised the State Government to grant remission in public interest, so the Government Resolution postponing recovery of sales tax dues of sick units and suspending interest was a statutory relief measure under the Act. The Tribunal was therefore competent to interpret the Resolution and apply its terms. On construction of the scheme and purpose, the relevant cut-off date for the moratorium was 31 March 1978, not 16 March 1978 or the date of later return filing or assessment. Interest was not leviable only for the period during which the postponement operated.

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Issues: (i) Whether the Tribunal was competent to interpret the Government Resolution dated 16 March 1978 and whether that Resolution was issued under the Gujarat Sales Tax Act, 1969. (ii) Whether the benefit of postponement of recovery and remission of interest under the Resolution applied from 16 March 1978 or from 31 March 1978 for returns due up to that date and assessed later.

Issue (i): Whether the Tribunal was competent to interpret the Government Resolution dated 16 March 1978 and whether that Resolution was issued under the Gujarat Sales Tax Act, 1969.

Analysis: Section 55 of the Gujarat Sales Tax Act, 1969 empowered the State Government, in public interest or to redress an inequitable situation, to remit taxes by order, generally or specially, subject to conditions. The Resolution postponed recovery of sales tax dues of sick units and also provided that no interest would be levied during the period of postponement. Since the Resolution operated as a statutory remission measure under the Act, it was not dehors the Act. The Tribunal, therefore, had jurisdiction to interpret it and grant relief in accordance with its terms.

Conclusion: The Tribunal was competent to interpret the Resolution, and the Resolution was issued under section 55 of the Gujarat Sales Tax Act, 1969.

Issue (ii): Whether the benefit of postponement of recovery and remission of interest under the Resolution applied from 16 March 1978 or from 31 March 1978 for returns due up to that date and assessed later.

Analysis: The object of the Resolution was to grant relief to sick units by postponing recovery of outstanding sales tax dues as on 31 March 1978, and the Finance Minister's speech and the scheme of the Resolution showed that 31 March 1978 was the relevant cut-off date. For returns due up to that date, though the assessment orders were passed later, the dues were to be treated as covered by the moratorium from 31 March 1978. Interest was, however, not leviable only for the period during which the postponement operated. The Resolution did not postpone recovery from 16 March 1978 or from the filing of returns.

Conclusion: The benefit of postponement and remission of interest applied from 31 March 1978, not from 16 March 1978 or from the date of filing of the returns.

Final Conclusion: The reference was answered by upholding the Tribunal's competence to construe the Resolution, while correcting the operative date for the moratorium and interest relief to 31 March 1978.

Ratio Decidendi: A government resolution granting fiscal relief to sick units, when issued under the enabling remission power of the Sales Tax Act, must be construed according to its object and scheme, and where the text and purpose fix a cut-off date, relief operates from that date rather than from the date of later assessment or administrative implementation.

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