TaxTMI 
TaxTMI 
2015 (7) TMI 186
X X X X Extracts X X X X
X X X X Extracts X X X X
....e arrears of tax under the provisions of the Central Sales Tax Act, 1956 for the assessment years 1993-94, 1995- 96 and 1996-97 as illegal and arbitrary and to restrain the respondent from enforcing the aforesaid demands. 2. The petitioner is a registered dealer under the Andhra Pradesh General Sales Tax Act, 1957 and the Central Sales Tax Act, 1956 and is engaged in the business of sale of electrical, electronic and X-Ray equipment and also executes works contracts. He is assessed for tax under the provisions of the Central Sales Tax Act for the years 1993- 94, 1995-96 and 1996-97, and against such assessment orders, the petitioner has filed appeals before the appellate authority. 3. When the appeals filed by the petitioner were pend....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Appellate Deputy Commissioner against the assessment orders passed for the assessment years 1993-94, 1995-96 and 1996-97, the petitioner has applied for settlement by filling Form-I before the Deputy Commissioner (CT), Secunderabad, who is competent authority to settle the disputes under the Act. The tax due for these assessment years was determined at Rs. 4,22,446/- for 1993-94, Rs. 13,13,245/- for 1995-96 and Rs. 22,87,844/- for 1996-97. The competent authority after satisfying himself with the contents in Form-I, accepted the application of petitioner for settlement and permitted the petitioner to pay 50% of the disputed tax under the above scheme, which was paid by the petitioner, and accordingly, Certificate of Settlement was also issu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nder Act 41 of 2001. 8. Counter affidavit is filed on behalf of respondent. In the counter, while referring to various factual aspects with regard to the application filed by the petitioner in Form-I for settlement of dispute and further orders passed by the competent authority and admitting payment of 50% of tax as determined by the competent authority, it is stated that the Audit Party of the Accountant General, A.P., Hyderabad, during the course of audit, verified the office records and found that the interest on the amount settled under the scheme is leviable, since, while formulating Act 41 of 2001, no clear-cut provision was made with regard to levy of interest on the amounts payable by the dealers. It is stated that as levy of int....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o make payment of the balance amount of such arrears of tax, penalty or interest in dispute. Provided that a certificate of settlement shall be issued by the competent authority separately in respect of every application. (2) The competent authority, for reasons to be recorded in writing, may refuse to settle a dispute where it appears to him that the applicant has concealed any material evidence or suppressed any information or particulars by furnishing untrue or false or incorrect or incomplete information. Provided that no order adversely affecting the applicant shall be passed without giving the applicant a reasonable opportunity of showing cause against such refusal. 10. In this case, it is not in dispute that in terms of A....
X X X X Extracts X X X X
X X X X Extracts X X X X
....or to settlement of dispute on the claim made by the petitioner, once the arrears of tax itself are settled, it is not open to the respondent to pass any further orders for collection of interest on the amount which is already paid. Once Certificate of Settlement is issued under the scheme of the Act, it discharges the liability of petitioner not only for payment of balance amount of tax but also for payment of penalty and interest. Having settled the dispute under the Act, it is not open for the respondents to pass subsequent orders or issue demand notices for payment of interest. Further, it is to be noticed that as against the very assessment orders, matters were carried in appeal by the petitioner and but for the settlement scheme notif....