Settlement of arrears scheme eligibility turns on the original assessment date, not a later consequential demand order.

Section 4 of the Tamil Nadu General Sales Tax (Settlement of Arrears) Ordinance, 2008 covers arrears arising from assessments made before 1 April 2002. Where the original assessment was completed in 1994, a later demand order passed after revision remained only consequential to the restored assessment and did not change the assessment date for eligibility purposes. The later procedural order therefore did not take the matter outside the settlement scheme. On that basis, the petitioner was eligible to seek settlement, and rejection of the application for ineligibility was unsustainable.

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Issues: Whether the petitioner was eligible to seek settlement under Section 4 of the Tamil Nadu General Sales Tax (Settlement of Arrears) Ordinance, 2008 when the original assessment was made prior to 1 April 2002 but the consequential demand order was passed later.

Analysis: Section 4 applies to arrears relating to assessments made prior to 1 April 2002. The original assessment in the case was made in 1994. Although the appellate order was later set aside in revision and the assessing officer passed a demand order on 1 April 2002, that demand was only consequential to the revisional order restoring the original assessment. The later demand order did not convert the assessment into one made after 1 April 2002. The clarification issued by the Commissioner also supported the view that where the original assessment was prior to 1 April 2002, later modification pursuant to appeal or revision would still fall within the scheme.

Conclusion: The petitioner was eligible to apply under Section 4, and the rejection of the application on the ground of ineligibility was unsustainable.

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