TaxTMI 
TaxTMI 
2025 (2) TMI 1634
X X X X Extracts X X X X
X X X X Extracts X X X X
....ioner of State Tax (Appeal), Jamshedpur Division, Jamshedpur in Appeal Case No. JR/JKSYA-03/2023-24 for the period 2003-04, wherein the appeal filed by the Petitioner in terms of 'Jharkhand Karadhan Adhiniyamon Ki Bakaya Rashi Ka Samadhan Act, 2022' (hereinafter referred to as 'Settlement Scheme of 2022' for short), has been dismissed. (ii) For issuance of further appropriate writ/order/direction, including Writ of Certiorari, for quashing/setting aside the order of settlement dated 3rd May, 2023 (Anneuxre-9) passed by Respondent No.3 under Settlement Scheme of 2022 pertaining to the period 2003-04 to the extent the amount of pre-deposit of Rs. 23.10 crores, being the amount of disputed tax paid by Petitioner has not been allowed to be adjusted against the final settlement amount while issuing settlement order, due to which, Petitioner was compelled to deposit excess payment of Rs. 10,51,37,934.60. (iii) For issuance of further appropriate writ/order/ direction, including Writ of Mandamus, directing the Respondents to refund an amount of Rs. 10,51,37,934.60 being the excess amount realized by them in terms of Settlement Scheme of 2022 by adopting the mechanism of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ling online application form suo-motu computation of the benefit under Amnesty Scheme was determined, wherein the amount of pre-deposit of Rs. 23,10,00,000/- was first adjusted against the disputed amount and upon remaining balance, waiver of 60% and 50% of tax respectively was extended to petitioner. The same was illustrated as under:- Admitted Tax 9,02,93,276/- + 69,00,328/- i.e. Rs. 9,71,93,604/- Amount of Tax assessed 59,00,83,540/- Balance to be paid 49,28,89,936/- Less amount of pre-deposit 23,10,00,000/- Remaining Balance 26,18,89,936/- Waiver granted [60% Rs. 48,90,70,334 after first deduction of Rs. 23,10,00,000/-] & 50% on 38,19, 602/-) (Rs. 15,48,42,200.40 + Rs. 19,09,801/-) 15,67,52,001.40/- Amount to be paid 10,51,37,934.60/- 6. It is the case of petitioner that under the Settlement Scheme, 60% waiver of disputed tax under Section 3 was applicable, where disputed tax related to amount other than certificate/declaration forms and in respect of declaration forms/certificates waiver of tax to the extent of 50% was admissible. According to petitioner, waiver pertaining to disputed tax should have been applied first before adjust....
X X X X Extracts X X X X
X X X X Extracts X X X X
....me amount towards pre-deposit/deposit is made by an assessee, the same cannot be first deducted from disputed tax amount for determining the measure for extending benefit of waiver. 12. Per contra, Mr. Ashok Yadav learned Sr. S.C.I appearing for Respondent-State while referring to the paragraphs of the Counter Affidavit submitted that it is an admitted fact that petitioner deposited an amount of Rs. 23,10,00,000/- pursuant to demand notice under protest, but, the moot question for adjudication would be as to whether the amount deposited by petitioner under protest would remain a disputed amount of tax or a tax realized against the demand raised by revised orders passed pursuant to remand order passed by appellate authority. 13. It has been submitted that although amounts were deposited under protest but once remand assessment orders were passed and the amounts paid under protest were adjusted against disputed demand, then the said amounts paid under protest would stand appropriated against the disputed amount and disputed amount to that extent would stand reduced. 14. It was further submitted that under the Scheme, definition of "disputed amount" would mean the amount disp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....filed before any Appellate Authority or Forum but shall not include any demand in pursuant to an order of assessment, reassessment, scrutiny or any other order made or passed under the Relevant Acts where the Government has filed any case against such demand before any Appellate Authority or higher Courts. 16. A perusal of Settlement Scheme would reveal that under Settlement Scheme, term 'admitted tax' is defined to mean an amount of tax admitted as being payable as per return filed by an assessee, and, the term 'disputed amount' means the amount of tax, interest or penalty which is determined as payable by an assessee pursuant to an order of assessment/re-assessment/scrutiny or any other order and which is not admitted, and, for such demand, a litigation has been filed by an assessee. 17. Thus, under the Scheme, amount of 'admitted tax' clearly represents an amount which is admitted by assessee, whereas 'disputed amount' means amount of tax, interest or penalty which is in dispute pursuant to a litigation filed by an assessee. 18. Under Section 3 of Settlement Scheme, waiver is provided to the extent of 60% disputed amount being other taxes and waiver of 50% was provided ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....utory order/Demand Note issued by the department/ authority shall be construed as one dispute and person has to apply separately for settlement for each such dispute.' 19. In the present case, disputed tax of the petitioner also pertained to non-furnishing of declaration forms and, thus, waiver of tax to the extent of 60% and 50% respectively were applicable to petitioner. It is not in dispute that disputed amount was Rs. 49,28,89,936/- and amount of Rs. 23,10,00,000/- was deposited as pre-deposit and/or condition of stay. 20. In our opinion, difference between disputed tax and admitted tax was the amount in dispute and under the scheme, petitioner was entitled for waiver of 60% and 50% respectively, but while computing the tax liability, Settlement Officer first deducted the amount of pre-deposit from the amount in dispute and, thereafter, extended the benefit of waiver under the scheme which is clearly travelling beyond the contours of the scheme itself. 21. In our considered opinion, this calculation made by the respondent is erroneous for the following reason:- If an assessee is having a liability of Rs.1 crore and he does not pay any amount, he will get benefit of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....4 after first deduction of Rs. 23,10,00,000/-] & 50% on 38,19, 602/-) (Rs. 15,48,42,200.40 + Rs. 19,09,801/-) 15,67,52,001.40/- Amount to be paid 10,51,37,934.60/- 23. So, in our opinion, determination of tax liability under the Scheme was to be undertaken in the following manner and not as done by the assessing officer:- Part-1 Admitted amount as per return of the Petitioner. Rs. 9,02,93,276/- Amount paid as admitted tax Rs. 9,02,93,276/- Balance to be paid as admitted tax 0 Tax assessed by the Assessing Officer (other than rejection of claim arising out of non-submission of declaration Forms) Rs. 59,31,64,266/- Amount paid in respect of assessed tax Rs. 69,00,328 Remaining Balance to be paid Rs. 49,59,70,662/- Settlement amount to be paid (40% of Remaining Balance) Rs. 19,83,88,264.80 Part-2 Arrear amount arising out of the non-submission of the declaration Forms. Rs. 38,19,602/- Tax amount arising out of Value of declaration Forms which are now available but not considered 0 Balance of tax amount arising out of value of forms which are not supported with declaration Forms. Rs. 38,19,602/- Settlement....