Settlement scheme payment threshold: rejection was unsustainable where remittance exceeded the payable amount and assessment basis was incomplete.

A revenue demand under a settlement scheme cannot be enforced without a valid assessment basis, and the designated authority must compute the amount payable before rejecting an application for short payment. Here, assessment orders existed only for two years, while the applicant had already remitted an amount exceeding the quantified demand. The monetary requirement under the scheme was therefore satisfied, and excess remittance could not justify rejection. The rejection of the settlement applications was held unsustainable, the property attachment was directed to be lifted, and the excess amount was ordered to be refunded.

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Issues: Whether the rejection of the settlement applications was sustainable when no assessment orders were available for most of the years and the amount remitted exceeded the amount payable under the settlement scheme.

Analysis: A demand under a revenue statute can be enforced only if it is backed by a valid assessment order. The settlement scheme required the designated authority to verify the application, compute the amount payable under the applicable clause, and summarily reject the application only if ninety per cent of the amount payable had not been paid along with the application. On the material available, assessment orders existed only for two years, and the petitioner had remitted an amount exceeding the quantified demand of Rs. 13,04,279. The petitioner therefore satisfied the monetary requirement under the scheme, and the excess remittance could not justify rejection.

Conclusion: The rejection of the settlement applications was unsustainable and the challenge succeeded. The attachment over the property was directed to be lifted and the excess amount was ordered to be refunded.

Final Conclusion: The writ petitions were allowed by accepting the settlement computation in the petitioner's favour and by granting consequential relief against the attachment and excess retention.

Ratio Decidendi: A revenue demand under a settlement scheme cannot stand without a valid assessment basis, and where the applicant has remitted more than the amount legally payable, rejection for short payment is not justified.

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