Settlement certificate finality under sales tax dispute law can bar consequential penalty proceedings based on the same assessment.

A settlement certificate issued under the West Bengal Sales Tax (Settlement of Dispute) Act, 1999 becomes final and conclusive if not disturbed, and the Act treats the related pending appeal or revision as withdrawn. Where a penalty proceeding under section 76 is founded entirely on the same assessment order that has been settled, the settled assessment removes the for continuing the consequential penalty matter. The statutory bar in section 9 prevents reopening or continuation of that derivative proceeding, unless the Act itself permits refusal or revocation on stated grounds.

---

---

Issues: Whether a certificate of settlement issued under the West Bengal Sales Tax (Settlement of Dispute) Act, 1999, in relation to the assessment dispute, precluded or terminated penalty proceedings initiated under section 76 of the West Bengal Sales Tax Act, 1994 on the basis of the same assessment order.

Analysis: The settlement statute permits resolution of arrear tax, penalty, or interest in dispute while an appeal or revision is pending, and the certificate issued under section 8(1) becomes final if not disturbed and is made conclusive by section 9. The statutory scheme also provides that the pending appeal or revision is deemed withdrawn on settlement, and the authority may refuse or revoke settlement only in the circumstances stated by the Act. On the facts, the penalty proceeding under section 76 was founded entirely on the assessment order that had itself been settled. Once the assessment dispute was resolved by certificate, the basis for continuing the consequential penalty proceeding disappeared, and the bar under section 9 operated against further reopening or continuation of the matter.

Conclusion: The certificate of settlement under the 1999 Act barred continuation of the penalty proceeding, and the penalty order could not survive.

Final Conclusion: The writ petitions succeeded, the penalty proceedings were quashed, and the Tribunal's order sustaining the reduced penalty was set aside.

Ratio Decidendi: Where a settlement certificate issued under the dispute-settlement statute becomes final and conclusive in respect of the assessment dispute from which the penalty proceeding derives, any consequential penalty proceeding based on that settled assessment cannot be continued or reopened.

---