Law: Sales Tax Act, 1990

Section: 33,34,34A

See Sections 33, 34 , 34A of the Sales Tax Act, 1990. SALES TAX ACT, 1990 (VII OF 1990) Sections 33, 34 , 34A There is no bar in the Notification No. S.R.O. 606(I)/2012, dated 1-6-2012 and no possible disadvantage caused to department if the principal amount of sales tax is deposited prior to the date of amnesty notification, the registered person making such payment voluntarily before the cut-off date and has not filed and case against department is entitled to benefit of it.—The sole question that has come up for our determination is whether the benefit of SRO 606(I)/2012 dated 01.06.2012 (“amnesty notification”), can be extended to the respondent. The amnesty scheme under the notification grants exemption of the whole amount of default surcharge and penalties to a person against whom an amount of sales tax is outstanding on account of illegally adjusted input tax provided that two conditions are met: (i) the whole principal amount of illegally adjusted sales tax is paid by the 25th June, 2012 and (ii) any case, complaint or proceedings filed by the registered person before any court of law, etc. are withdrawn by the said date. Once the above conditions are complied with, all criminal proceedings lodged against the taxpayer by the department shall also abate. Plain reading of the amnesty notification shows that if the default surcharge and penalties payable by a registered person are outstanding on account of illegally adjusted input tax, the registered person may avail exemption against default surcharge and penalties provided the whole of the principal amount of illegally adjusted input tax is deposited by 25th June, 2012 and any case or complaint filed by the registered person against the department is withdrawn by the said date. The contention of the department that the amount of sales tax must be outstanding against the person on 01.06.2012 for the amnesty notification to apply, is not convincing. The spirit and object of the amnesty notification is to incentivize quick recovery of stuck up tax revenue, hence the notification offers that if only the principal amount of illegally adjusted sales tax is deposited by 25th June, 2012 the default surcharge and…

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