Settlement scheme eligibility survives remand where the original assessment predated the cut-off, despite a later fresh assessment.

Under the Tamil Nadu Sales Tax (Settlement of Arrears) Act, 2008, "arrears" covered tax, penalty or interest arising from an assessment made before 1 April 2002 and still pending collection when the application was filed. Where an original assessment was set aside in appeal or revision and the matter was remanded, the fresh assessment passed on remand did not change the character of the original pre-cut-off assessment. A clarification treating the original assessment as non est and denying the scheme benefit on that basis was therefore unsustainable, and the dealer remained eligible for settlement scheme relief.

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Issues: Whether a dealer remained eligible for the benefit of the settlement scheme when the original assessment order had been set aside in appeal or revision and a fresh assessment order was passed after 1 April 2002.

Analysis: The definition of "arrears" under section 2(1)(b) of the Tamil Nadu Sales Tax (Settlement of Arrears) Act, 2008 refers to tax, penalty or interest for which assessment had been made prior to 1 April 2002 and remained pending collection on the date of application. Where the original assessment is set aside on appeal or revision and the matter is remanded, the subsequent fresh assessment substitutes the earlier order. The mere fact that the fresh order is made after remand and after 1 April 2002 does not alter the character of the original assessment for the purpose of the scheme. A contrary clarification denying the benefit on the footing that the original assessment became non est was not accepted.

Conclusion: The dealer was entitled to the benefit of the settlement scheme, and denial of eligibility on the ground of remand and fresh assessment was unsustainable.

Ratio Decidendi: When an assessment made prior to the cut-off date is set aside in appeal or revision and replaced by a fresh assessment on remand, the fresh order does not destroy the dealer's entitlement under a settlement scheme that turns on the date of the original assessment.

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