Settlement scheme procedure controls rejection where the dispute concerns only computation, not eligibility, under the arrears settlement framework.

The Tamil Nadu Sales Tax (Settlement of Arrears) Act, 2010 requires an applicant to compute and pay the amount due with the settlement application, and allows the designated authority to verify the particulars and raise a further demand only within the statutory limits. Once the applications were entertained and a demand was issued under section 6(2), rejection on the ground that the applicant was not entitled to the Scheme was inconsistent with that procedure, because the dispute concerned only computation and not eligibility. A settlement or amnesty scheme must be applied strictly within its own framework. The rejection was therefore invalid and settlement remained available under the Scheme.

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Issues: Whether the rejection of the applications under the Tamil Nadu Sales Tax (Settlement of Arrears) Act, 2010 was valid when the applications had already been processed, a demand under section 6(2) had been issued, and the dispute was only about the quantum payable.

Analysis: The settlement scheme requires the applicant to compute and pay the amount payable at the prescribed rate with the application, and the designated authority may verify the particulars and demand further amount only if the shortfall does not exceed the statutory limit. Once the applications were entertained and demand was raised under section 6(2), the subsequent rejection on the footing that the petitioner was not entitled to the benefit of the Scheme was inconsistent with the statutory procedure. The scheme does not permit the authority to reopen the matter at that stage merely because the officer changed, especially when the dispute related only to computation and not to eligibility. A settlement or amnesty scheme has to be strictly applied within its own framework.

Conclusion: The rejection was invalid and the petitioner remained entitled to settlement under the Scheme.

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