AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2015 (7) TMI 186
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.... 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 pending consideration before the Appellate Deput....
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....ment 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 issued in Form-III. Consequent upon such issuance of....
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....n 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 interest is automatic for delayed payments, it is outside the scheme of Act 41 of 2....
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....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 Act 41 of 2001, the claims of petitioner for the assessment years 1993-94, 1995-96 and 1996-9....
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....elf 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 notified under Act 41 of 2001, petitioner would not have applied for settlement of dispute withou....