Settlement application rejection set aside for failure to consider objections, payment adjustment and provide an effective hearing.

Under the Tamil Nadu Sales Tax (Settlement of Disputes) Act, 2002, the Designated Authority must consider the amount already paid, the applicant's objections and any request for adjustment before deciding a settlement application. A summary rejection that does not deal with those contentions, and is made without giving an effective personal hearing, cannot be sustained. The impugned order was set aside and the matter remanded for fresh consideration on merits after hearing the applicant.

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Issues: Whether the rejection of the settlement application under the Tamil Nadu Sales Tax (Settlement of Disputes) Act, 2002 was sustainable when the Designated Authority allegedly failed to consider the applicant's objections and did not afford a personal hearing.

Analysis: The settlement scheme required the Designated Authority to consider the amount already paid and the objections raised by the applicant in deciding the application. The impugned order rejected the application summarily and did not deal with the petitioner's contentions, including the treatment of the amount paid and the request for adjustment, and no effective opportunity of hearing was given. In these circumstances, the rejection could not be sustained and the matter required reconsideration on merits after hearing the petitioner.

Conclusion: The impugned order was set aside and the matter was remanded for fresh consideration after affording an opportunity of hearing to the petitioner.

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