TAMIL NADU SALES TAX (SETTLEMENT OF ARREARS) ACT, 2006 

HIGHLIGHTS

1. Arrears of tax, penalty or interest to which this Act applies

(i) The Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959.),

(ii) The repealed Tamil Nadu Sales Tax (Surcharge Act), 1971 (Tamil Nadu Act 24 of 1971.),

(iii) The Tamil Nadu Additional Sales Tax Act, 1970 (Tamil Nadu Act 14 of 1970.)and

(iv) The Central Sales Tax Act, 1956(Central Act 74 of 1956.);

2. Eligible applicants

Any dealer as defined in the relevant Act, except the following classes of dealers, namely:-

(i)  Public Sector Undertakings including Oil companies, Government companies or Corporations;

(ii) Dealers in lottery tickets;

(iii) Dealers who are availing or had availed themselves of deferral of taxes;

Separate application shall be made for each year.

3. Meaning of "Arrears of tax, penalty or interest"

Dues other than as per the return, accrued upto the 31st day of March 2001 and due as on the date of application under:

(i)  sales tax, additional sales tax, surcharge, additional surcharge and central sales tax payable by an applicant upon assessment under the relevant Act, or

(ii) Penalty payable by an applicant under the relevant Act, or

(iii) interest payable by an applicant under the relevant Act.

4. Arrears eligible for settlement

i) Where there is arrears of tax ,penalty and interest

Period to which the arrears relate

Amount payable

Amount Waived

upto the 31st day of March 1991

entire arrears of tax

entire penalty and interest

Between 01/04/1991 and the 31/03/2001

entire arrears of tax due , 10% of penalty and 25% of interest

90% of penalty and 75% of interest

ii) Where there is only arrears of penalty or interest or both

 

Period

Pay on the date of application the following amount pending collection on the date of application

Waived

up to the 31st day of March 2001

pays ten per cent of penalty and twenty-five per cent of interest

ninety per cent of penalty and seventy-five per cent of interest

5. Time limit for applying to this scheme

Within three months from the date of commencement of this Act

6. Procedure for applying

A Separate application in the prescribed form shall be made for each assessment year along with proof of payment of the amount payable

7. Discharge of liability

The designated authority, shall on being satisfied about the payment to be made under this scheme by an order, settle the arrears of tax, penalty or interest and issue a certificate.

The applicant shall be discharged from his liability to make payment of the balance amount of such arrears of tax, penalty or interest.

Separate certificate shall be issued in respect of each application.

8. Refusal to issue certificate

The designated authority, for reasons to be recorded in writing, may refuse to settle the arrears of tax, penalty or interest:

Provided that no order shall be passed without giving the applicant a reasonable opportunity of showing cause against such refusal.

9. No reopening or revision

A certificate issued as stated above shall be conclusive as to the settlement.

No matter covered by such certificate shall be reopened in any proceeding of review or revision, or in any other proceeding, under the relevant Act.

10. Withdrawal of appeal and revision

Any proceeding or appeal or revision for any period pending before the assessing authority or appellate authority or revisional authority or the Court other than the Supreme Court:

Shall be deemed to have been withdrawn from the date of making of the application by the applicant

Any order passed by the above said authorities subsequent to the date of filing of application will not be taken into consideration.

11. Authority not to proceed in certain cases

No authority shall proceed to decide in any proceeding or appeal or revision where a copy of the application has been received.

Such authority shall proceed to decide if a certificate referred to in above is refused to the applicant by an order passed by the designated authority in writing under sub-section (2) of Section 8.