Settlement scheme time limit held directory where delay in payment arose from government processing under the tax amnesty framework.

The West Bengal Sales Tax (Settlement of Dispute) Act, 1999 was treated as a settlement scheme meant to secure expeditious recovery of arrears and promote revenue collection, not to defeat relief on technical delay. The court held that the time limit for filing the application and making payment was directory in the circumstances, especially where the applications were filed within time and the delay in disbursement resulted from governmental execution and interdepartmental processing. Rigid enforcement of the deadline would have frustrated the object of the scheme, so the authorities were required to accept and process the admitted tax payment for transfer to the sales tax department.

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Issues: Whether the time limit for making application and payment under the West Bengal Sales Tax (Settlement of Dispute) Act, 1999 was mandatory or directory, and whether the authorities could refuse acceptance of the admitted tax amount where the applications were filed within time but disbursement was delayed due to governmental action.

Analysis: The statutory scheme was treated as a settlement or amnesty measure intended to enable expeditious realization of arrear tax, penalty, and interest and to promote revenue collection rather than defeat it on technical grounds. The provisions permitting filing up to 31 December 2001, together with the power of the State Government to specify a later date by notification, indicated that the time prescription was not intended to operate as an absolute bar in every situation. Since the applications were made within time and the delay in payment arose from execution and interdepartmental processing by government authorities, rigid insistence on the deadline would frustrate the object of the scheme and work injustice to the applicant company.

Conclusion: The time prescription was held to be directory in the circumstances, and the authorities were directed to accept and process the payment for transfer to the sales tax department.

Final Conclusion: The writ petition succeeded and the relief granted ensured that the settlement mechanism was not defeated by delay attributable to the State.

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