Reasonable opportunity under a settlement scheme is mandatory before rejecting relief; refusal without notice was set aside.

Rejection of a settlement application under a beneficial arrears scheme was held unsustainable because the authority did not give the applicant the statutory reasonable opportunity to show cause before refusing relief. The petitioner had already paid the amounts contemplated under the scheme, and the dispute centred on whether interest had to be computed from the original assessment order. As the application was rejected without compliance with the proviso to Section 8(2), the order was set aside. The petitioner was directed to pay the balance interest, and the authority was required to reconsider and dispose of the settlement application afresh.

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Issues: Whether the rejection of the petitioner's application under the settlement scheme was vitiated for want of reasonable opportunity and whether the petitioner was entitled to consideration of the application on payment of the balance interest.

Analysis: The petitioner had already paid the tax-related amounts contemplated under the settlement scheme and the application was accepted to that extent. The rejection was based on the view that interest ought to have been computed from the original assessment order, but the order was passed without giving the applicant a reasonable opportunity to show cause against refusal, as required by the proviso to Section 8(2) of the settlement enactment. The dispute was also approached in the context of a beneficial legislation, and the petitioner expressed readiness to pay the balance interest demanded by the authority.

Conclusion: The rejection order was unsustainable for breach of the statutory requirement of reasonable opportunity and was set aside. The petitioner was directed to pay the balance interest, and the authority was directed to reconsider and dispose of the settlement application afresh.

Final Conclusion: The writ petition succeeded, and the settlement application was restored for fresh disposal after compliance with the balance interest direction.

Ratio Decidendi: Where a settlement application is rejected under a beneficial arrears scheme, the authority must afford the applicant the statutory reasonable opportunity before refusal, failing which the rejection cannot stand.

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