2003 (8) TMI 480

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the original petition is to quash the notice in R.C. No. 13935/02/B11 (S.R. No. 170 of 2002) dated June 12, 2003 issued by the first respondent and to direct issue of certificate of settlement to the petitioner. 2.. The petitioner has averred that for the year 1996-97, against the assessment, he had preferred an appeal in A.P. No. 240 of 1998 and the same was partly remanded and partly dismissed.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....towards the penalty amount due and therefore, the applicant is yet to pay Rs. 1,31,392 towards penalty. Against this notice, the petitioner replied on February 13, 2003 claiming adjustment of excess tax towards penalty due as per the proviso to section 6(1) of the Act. Further, the respondent has issued the impugned notice dated June 12, 2003 proposing to reject the application based on the Specia....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rdance with the rates specified in section 7 of the said Act and under the first proviso to section 6(1), the designated authority shall take into account any amount of tax, penalty or interest paid by the applicant before making an application under section 5 and deduct the amount so paid by him from the amount determined under this sub-section. The wordings in the first proviso to section 6(1) ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....held that: "When the amount under section 6(1) shall have to be determined strictly in accordance with the rates specified under section 7, it is implied that any amount which falls short of determined amount has to be collected from the applicant and any amount paid in excess of determined amount has to be refunded to the applicant. This is the true spirit of the provision in section 6(1). " 6.....