Settlement eligibility under sales tax dispute scheme depends on pending appeal, regardless of whether the assessee or the State filed it.

For settlement under the Tamil Nadu Sales Tax (Settlement of Disputes) Act, 2002, the decisive requirement is that an appeal or revision relating to the assessment was filed within the prescribed time and remained pending when the application under section 5 was made. The Act does not distinguish between an appeal filed by the assessee and one filed by the State. Where the State's appeal was pending, the assessee remained exposed to tax and penalty liability and could invoke the settlement mechanism. The assessee was therefore eligible to seek settlement, and the application was maintainable.

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Issues: Whether an assessee is eligible to seek settlement under section 5 of the Tamil Nadu Sales Tax (Settlement of Disputes) Act, 2002 when an appeal filed by the State is pending before the appellate forum, though the assessee had succeeded before the first appellate authority.

Analysis: Section 4(1)(i) of the 2002 Act requires that, for settlement, an appeal or revision relating to the assessment must have been filed on or before 28 February 2002 and must be pending on the date of the application under section 5. The provision does not distinguish between an appeal filed by the assessee and an appeal filed by the State. The decisive factor is the pendency of appeal or revision before the appellate authority. The Act is intended to secure expeditious settlement of tax disputes and to grant substantial relief by allowing disputes to be resolved outside adjudication. Since the State's second appeal was pending, the assessee continued to face possible tax and penalty liability and was entitled to invoke the settlement mechanism.

Conclusion: The assessee satisfied the statutory eligibility requirements and the application for settlement was maintainable.

Final Conclusion: The challenge to the Tribunal's order failed, and the assessee's right to proceed under the settlement scheme was upheld.

Ratio Decidendi: For settlement under the 2002 Act, the relevant requirement is the pendency of an appeal or revision within the prescribed time, irrespective of whether it was filed by the assessee or by the State.

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