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of <h1>Court quashes rejection orders, directs certificate issuance under MP Bakaya Rashi Saral Samadhan Yojna</h1> <h3>Satna Cement Works and others Versus Divisional Assistant Commissioner, Commercial Tax, Satna and others</h3> Satna Cement Works and others Versus Divisional Assistant Commissioner, Commercial Tax, Satna and others - [2007] 5 VST 606 (MP) Issues:1. Application of Madhya Pradesh Bakaya Rashi Saral Samadhan Yojna, 2000 to settle penalties under section 10-A of the Central Sales Tax Act, 1956.2. Consideration of pending appeals in settlement applications.3. Segregation of penalties imposed for different years for scheme application.4. Validity of rejecting settlement application based on consolidated penalty order.5. Quashing of order and granting requisite certificates under the Scheme.Analysis:1. The petitioners, a public limited company and a shareholder, sought settlement under the Madhya Pradesh Bakaya Rashi Saral Samadhan Yojna, 2000 for a penalty imposed under section 10-A of the Central Sales Tax Act, 1956. The State Government's scheme allowed for settling penalties up to a specified period, but the assessing officer rejected the application based on a consolidated penalty order covering three years. The court examined the scheme's applicability, emphasizing the need to segregate penalties imposed for different years to avail of the scheme's benefits. The court held that the penalties for each year were distinct, allowing for separate consideration under the scheme.2. The court addressed the issue of mentioning pending appeals in settlement applications. While the respondents argued that non-disclosure of an appeal should result in denial of benefits, the court found that the purpose of mentioning appeals was to ascertain their status and not a strict condition for application consideration. The court ruled that the absence of appeal disclosure did not hinder the application's validity, especially when the petitioner intended to settle and not pursue the appeal further.3. Regarding the rejection of the settlement application based on a consolidated penalty order, the court determined that the penalties for different years were quantified separately, allowing for segregation despite a consolidated order. The court emphasized that the scheme aimed to grant benefits for specific periods, and the common thread of irregularities did not preclude year-wise settlement under the scheme. The court quashed the rejection order and directed the issuance of requisite certificates under the scheme.4. The court further noted that the rejection order lacked substantial reasoning beyond the consolidated penalty order, making it unsustainable. Given the separability of penalties imposed for different years, the court held that the rejection based solely on consolidation was unjustified. The court emphasized the importance of segregating penalties year-wise for scheme application and directed the respondent to grant the necessary certificate for settlement.5. In conclusion, the court allowed both writ petitions, quashing the rejection orders and directing the issuance of certificates under the Madhya Pradesh Bakaya Rashi Saral Samadhan Yojna, 2000. The court did not impose any costs on the petitioners, affirming their right to settle penalties under the scheme.
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