RANKA CORPORATION Vs. DEPUTY COMMISSIONER (CT), CHENNAI SOUTH DIVISION AND THE DEPUTY COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) The petitioner was an assesses on the file of the second respondent, the Deputy Commercial Tax Officer, Guindy Assessment Circle, till 1997. Due to labour unrest and the financial constraint, the petitioner had closed down their business activities in the year 1998 and not renewed the Sales Tax Registration. The petitioner's sister company also faced the same problem. The enforcement wing officials of the Commercial taxes Department, inspected the petitioner's premises on 03.11.1999 and verified the books of accounts. In the year 2001, the business premises were locked and sealed by the Official Liquidator. After 2002, the petitioner was able to recover some amount and started paying the Government dues. On the basis of inspection, the assessment order for the year 1999-2000 was passed on 31.03.2003 and the writ petition challenging the said assessment order was dismissed by this Court on the ground there was no violation of the procedure.

(2.) The petitioner has further submitted that the Government of Tamil Nadu introduced Samadhan Scheme in the year 2006, for settlement of arrears of sales tax. The petitioner filed an application dated 29.12.2006 before the Designated Authority/first respondent by making necessary payments. The application filed on 29.12.2006 was returned on 27.02.2007 on the ground it is not entertainable. The petitioner represented and filed a detailed reply on 27.03.2007 and requested opportunity of hearing before passing orders on the application. But without granting an opportunity, it was returned by the Designated Authority, as not entertainable. Aggrieved by the same, the petitioner has filed this writ petition.

(3.) Learned Counsel for the petitioner submitted that the inspection was conducted on 03.11.1999 by the Enforcement Wing Officials and the words "arrears of tax accrued upto 31st day of March 2001" mentioned in Section 2 of the Tamil Nadu Sales Tax (Settlement of Arrears) Act, 2006 (in short referred to as "the Act") relate back to the date of inspection from the date when the 'lis' had commenced and therefore, the order of the respondent returning the application preferred by the petitioner for availing the Samadhan Scheme is liable to be set aside. He further submitted that the accrual of arrears refers to the assessment year 1999-2000 and therefore, all the cases where the arrears, tax, penalty due to be paid for the assessment years upto 2000-01 are eligible, for consideration.