GEI ENGINEERING LTD Vs. ADDITIONAL COMMISSIONER COMMERCIAL TAX

JUDGEMENT

(1.) IN these writ petitions a common question arises about the applicability of the Madhya Pradesh Bakaya Rashi Saral Samadhan Yojna, 2002 for liquidating the arrears of tax under the Madhya Pradesh Vanijyik Kar Adhiniyam, 1994 and the Central Sales Tax Act, 1956. Petitioners have availed the benefit of the Madhya Pradesh Deferment of Payment of Tax Rules, 1994 issued as per Notification No. A-3-24-94-ST-V (108) dated October 6, 1994. Under the deferment scheme tax is payable on a future date. The amount of deferred liability to a date after April 1, 2001 has been treated as not "due" under the M. P. Bakaya Rashi Saral Samadhan Yojna, 2002 (hereinafter referred to as the "scheme") and Rules framed there under. The question which has been agitated precisely whether the amount of liability of tax which has been determined, but has been "deferred" to a future date, can be said to be a tax "due" to extend benefit of the "scheme".

(2.) THE relevant factual matrix of each writ petitions indicates that each of the petitioners has been assessed to tax covered under one or other Acts mentioned in Scheme and the petitioners' industries are availing the benefit of deferment scheme as per notification dated October 6, 1994. The State Government has issued the eligibility certificate and the petitioners have been given the benefit of deferment of amount due under the provisions of the State Act/the Central Act of the maximum of 300 per cent of total capital investment for the periods as per their entitlement in deferment Rules commencing from date of commencement of the production. It is also relevant to note that under the deferment scheme on the tax liability so deferred interest is not payable whereas with respect to tax liability which has not been deferred interest is payable at present at the rate of 24 per cent per annum.

(3.) THE State Government issued a Notification No. A-7-15-2001- A ST-V (98) dated January 5, 2002 for the purpose of liquidating the amount of arrears which include tax, penalty and interest under the Madhya Pradesh General Sales Tax Act, Madhya Pradesh Vanijyik Kar Adhiniyam, Central Sales Tax Act and Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam. It is meant for liquidating the amount of arrears which were "outstanding" and "due" for payment on April 1, 2001. The Scheme is known as "madhya Pradesh Bakaya Rashi Saral Samadhan Yojna, 2002". The application under this Scheme could be submitted up to January 31, 2002. Clause 2 of the Scheme provides that the amount of tax, penalty/interest which was outstanding for payment on April 1, 2001, the facility granted under this Scheme shall be available for that amount of arrears, which is related to any year ending up to March 31, 1997. Cases of arrears were also classified and the calculation of amount to be paid for Samadhan shall be made according to the Schedule. A case in which arrear is up to Rs. 50,000, 25 per cent of the amount of arrear has to be paid towards Samadhan and the case in which the amount exceeds sum of Rs. 50,000, 40 per cent of the amount of arrears has to be paid. Explanation is that if any amount exceeding 25/40 per cent, as the case may be, has been deposited between April 1, 2001 and date of coming into force of this Scheme the amount deposited in excess shall not be refunded.