1 W.P.No.17965/2012 M/s Punjab Stores,Katni, Assistant Commissioner of Commercial Tax, Katni & others 22.11.2012 Shri Mukesh Agrawal, Counsel for petitioner.
Shri Samdarshi Tiwari, Govt.
Advocate for respondents.
Learned counsel for petitioner submits that after filing of the application for settlement under Section 24-B of the M.P.VAT Act, 2002, respondents have issued notice under Section 146 of the M.P.Land Revenue Code for recovery of the amount, while Section 24-C(8) of the M.P.VAT Act provides that after the settlement, no penal action shall be taken against the applicant.
It is submitted that respondent No.4 may be directed to decide the aforesaid application expeditiously.
Shri Samdarshi Tiwari, learned counsel for respondents submitted that within a period of four weeks, aforesaid application would be considered and decided by the respondent No.4 in accordance with law.
In an identical matter Writ Petition No.10551/2011 M/s Surjeet Auto Agency versus State of M.P.& others decided on 12.12.2011, a Division Bench of this Court considering similar controveRs.held thus:- “The case of the petitioner is that as per Section 24-B of the M.P.Value Added Act, 2002, the petitioner has moved an application before the competent Authority for settlement of its case for the years from 2003 to 2006-07.
The aforesaid application for settlement was filed in the month of May 2011 before the Authority but the Assessing Officer before completion of the settlement proceedings is proceeding against the petitioner for recovery of the dues.
It is submitted that until and unless matter is settled by the Authority, the Assessing Authority may be directed not to take any action against the petitioner for recovery of the dues.
Shri Samdarshi Tiwari, learned Government advocate, submitted that respondents have already submitted an undertaking before this Court on 7.7.2011 that the respondents shall not take any action for 2 W.P.No.17965/2012 M/s Punjab Stores,Katni, Assistant Commissioner of Commercial Tax, Katni & others 22.11.2012 cancellation of the registration of the petitioner during the pendency of the aforesaid application.
not reply has been filed.
It is also submitted by Shri Tiwari that the aforesaid settlement may take about six months as various assessment orders are under consideration of the Settlement Authority.
It is submitted that a period of 6 months from today, be provided to the Authority for settlement of the matteRs.It is also brought to our notice that Sections 24- B and 24-C of the VAT, 2002, have been incorporated in the Statutory Rule on 10.8.2010 itself which is a new procedure prescribed under the Act.
As per procedure prescribed in section 24-C of the Act, sometime is required to the Authority to decide the dispute between the parties.
For ready reference, we quote Sectins 24-B & 24-C of the VAT Act which read as under:- “Section 24-B: Application for Settlement of cases.
(1) Notwithstanding anything to the contrary contained in this Act, if any amount of tax, interest and penalty under the Madhya Pradesh General Sales Tax Act, 1958 (No.2 of 1959) (Repealed Act).Madhya Pradesh Commercial Tax Act, 1994 (No.5 of 1995) (Repealed Act).Madhya Pradesh VAT Act, 2002 (No.20 of 2002).Central Sales Tax Act, 1956 (No.74 of 1956) and the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (No.52 of 1976):- (i) is disputed by a dealer and the dispute is pending before the High Court for adjudication; (ii) hardship is being caused to a dealer due to any order passed under any of the provisions of the Act.
the dealer may apply for the settlement of the amount of tax, interest and penalty to the Settlement Authority (2) an application for settlement of the amount shall be submitted in the form and the manner as may be prescribed.
(3) The dealer shall pay,- (i) the undisputed amount of tax in full and twenty five percent of the disputed amount of tax, in case of application under clause (i) of sub-section (1).(ii) the full undisputed amount of tax in case of application under clause (ii) of the sub-section (1) 3 W.P.No.17965/2012 M/s Punjab Stores,Katni, Assistant Commissioner of Commercial Tax, Katni & others 22.11.2012 before submission of the application.
Section 24(Sic 24C) Procedure on receipt of an application.
(1) The Settlement Authority shall pass an appropriate order, including waiver of the whole or part of the interest and the penalty levied and included in the amount payable by the dealer, on every application for settlement after affording an opportunity of hearing to the dealer.
(2) The Settlement Authority shall consider the application and the submissions, if any made before them by the dealer and thereafter decide the amount to be deposited by the applicant.
(3) The dealer shall submit an application for withdrawal of the case pending before the High Court and a copy thereof shall be submitted to the Settlement Authority before the issue of order of settlement.
(4) If the amount required to be deposited under sub-section (2) has already been deposited by the dealer, the Settlement Authority shall pass an order of settlement.
If the amount deposited is less than the amount decided by the Settlement Authority, the balance amount shall be deposited by the dealer within the time as may be decided by the Settlement Authority.
On receipt of proof of payment of the balance amount, the Settlement Authority shall pass an order of settlement.
(5) The Settlement Authority shall pass settlement order on every application indicating the balance amount of interest and penalty waived on settlement.
(6) The Settlement Authority may remand the case wherever it thinks fit.
(7) An order of settlement shall not form the basis for any claim by the applicant in cases other than the case in which such settlement order has been passed.
(8) No penal action against the applicant under any Act administered by the department shall be initiated after an order of settlement has been passed under this section.
The dealer also shall not be 4 W.P.No.17965/2012 M/s Punjab Stores,Katni, Assistant Commissioner of Commercial Tax, Katni & others 22.11.2012 entitled to refund of any amount or any other benefit under any Act afterwards.”
The petitioner has already approached to the Settlement Authority under Section 24-B and as per the procedure prescribed under Section 24-C, the Authority has to decide the matter in accordance with law.
Section 24-(8) {Sic 24-C(8).provided that after settlement of the dispute no penal action shall be initiated against the assessee under any Act administered by the Department after an order of settlement has been passed under this Section.
Meaning thereby that a protection is provided to the assessee who had moved an application before the settlement Authority to settle the cases under Section 24-B of the Act.
In view of the aforesaid, we find it appropriate to dispose of this matter with following directions:- (i) That, the settlement Authority shall expedite the matter and make an endeavour to decide/settle all the matters expeditiously as far as possible within a period of 6 months from the date of this order but not later than 30th June, 2012.
(ii) Till the matters are settled by the Authority, no coercive action shall be taken against the petitioner in respect of dues for the assessment years 2003-04 to 2006-07 as stated in paragraph 2 of the return.
However, any amount which is not disputed by the petitioner shall be deposited by the petitioner as per provisions as contained under Section 24-B and 24-C within a period of 30 days from today.
(iii) The settlement Authority shall communicate its final order to the petitioner for its compliance by the petitioner in accordance with law.”
As controveRs.in the present case is identical, this petition is also finally disposed of in terms of the directions issued in M/s Surjeet Auto Agency (supra).Aforesaid directions shall be 5 W.P.No.17965/2012 M/s Punjab Stores,Katni, Assistant Commissioner of Commercial Tax, Katni & others 22.11.2012 applicable in the present case as far as they are applicable.
The period of deciding the application shall commence from the date of receipt of certified copy of this order.
No order as to costs.
C.C.as per rules.
(Krishn Kumar Lahoti) (Smt.Vimla Jain) Judge Judge C.