[ 833 ]

GOVERNMENT OF PUDUCHERRY

LAW DEPARTMENT

No. 341/Adv./2019-LD.

Puducherry, the 13th October 2021.

NOTIFICATION

The following Act of the Legislative Assembly, Puducherry, received

the assent of the President of India on the 28th day of September, 2021 and

is hereby published for general information.

N. MURUGAVEL,

Under Secretary to Government (Law).

Registered with the Registrar

of Newspapers for India under

No. 10410

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Poudouchéry

Mercredi

13

Octobre

2021

No.

Puducherry

Wednesday

13th

October

2021

(21 Asvina 1943)

Registered No.

PY/44/2021-23

834

LA GAZETTE DE L'ETAT

[PART–II

THE PUDUCHERRY SETTLEMENT OF

ARREARS ACT, 2020

(Act No. 5 of 2021)

(28-09-2021)

AN

ACT

to provide for settlement of arrears of tax,

penalty and interest which were levied,

payable or imposed, respectively under

Pondicherry General Sales Tax Act, 1967,

Puducherry Value Added Tax Act, 2007

and Central Sales Tax Act, 1956 administered

by the Commercial Taxes Department,

Puducherry and for the matters connected

therewith or incidental thereto.

BE it enacted by the Puducherry Legislative

Assembly in the Seventy-first Year of the Republic

of India as follows:–

1. (1) This Act may be called the Puducherry

Settlement of Arrears Act, 2020.

(2) It extends to the whole of the Union territory

of Puducherry.

(3) It shall come into force on such date,

as the Government, may by notification in the

Official Gazette, appoint.

2. In this Act, unless the context otherwise

requires,–

(a) “Appellate Authority” means, the Appellate

Assistant Commissioner appointed under the Puducherry

Value Added Tax Act, 2007 or the erstwhile Pondicherry

General Sales Tax Act, 1967;

(b) “applicant” means, a dealer as defined

in the relevant Act who is liable to pay arrears of

tax, penalty and interest, levied or imposed under

the relevant Act and who desires to avail the

benefit of settlement, by complying with the conditions,

under this Act;

S h o r t

t i t l e ,

e x t e n t

a n d

commencement.

Definitions.

835

PART–II]

LA GAZETTE DE L'ETAT

(c) “arrears of tax, penalty and interest”

respectively, means–

(i) tax payable by an applicant under

the relevant Act;

(ii) penalty payable by an applicant under

the relevant Act, other than sub-clause (iii)

of this clause.

(iii) penalty payable by an applicant under

sub-section (3) of section 27 of the

Pondicherry General Sales Tax Act, 1967

or section 24A of the Puducherry Value

Added Tax Act, 2007.

(d) “assessing authority" means, an assessing

officer who has jurisdiction over the applicant

under the Puducherry Value Added Tax Act, 2007

or Pondicherry General Sales Tax Act, 1967 and

includes an officer authorized by the Commissioner

in this behalf under the relevant Act;

(e) “Commissioner” means, any person

appointed as the Commissioner of State Tax under

section 3 of the Puducherry Goods and Services

Tax Act, 2017 and includes the Commissioner of

Commercial Taxes appointed under section 3 of

the Puducherry Value Added Tax Act, 2007;

(f) “Government” means, the Government

of Puducherry;

(g) “Relevant Act” means, the following Acts:–

(i) the Central Sales Tax Act, 1956;

(ii) the repealed Pondicherry General Sales

Tax Act, 1967;

(iii) the Puducherry Value Added Tax Act, 2007.

Act No.

9 of

2007.

Act No.

74 of

1956.

Act No.

74 of

1967.

Act No.

9 of

2007.

Act No.

6 of

2017.

836

LA GAZETTE DE L'ETAT

[PART–II

(h) “Revisional Authority” means, the authority

conferred with special powers or powers of revision

under section 35 or 36 or 37 of the Pondicherry

General Sales Tax Act, 1967 or under section 45

or 46 of the Puducherry Value Added Tax Act,

2007, as the case may be.

(i) “Tribunal” means, the Pondicherry Sales

Tax Appellate Tribunal.

(2) Unless there is anything repugnant to

the subject or context, all expressions used in

this Act, which are not defined, shall have the

same meaning as defined or used in the relevant

Act.

3. Subject to the other provisions of this

Act, an applicant may make an application for

settlement of arrears of tax, penalty and interest

in respect of which any assessment is completed

and demand raised under the relevant Act prior

to the 1st day of July 2017:

Provided that if, an appeal or revision or

any case against assessment is pending before

the Tribunal or High Court or Supreme Court, as

on the date of submission of application under

section 4, other than the private complaints filed

by the Government before the Judicial Magistrate

Court, then the demand covered under such assessment

shall not be eligible for settlement.

4. (1) An application for the purpose of

section 3 shall be made to the Assessing Authority

by an applicant within ninety days from the date

of commencement of this Act or by such later

date as the Government may, by notification,

specify, from time to time, in such form, and in

such manner, as may be prescribed.

Eligibility for

settlement.

Application for

settlement.

837

PART–II]

LA GAZETTE DE L'ETAT

(2) The application shall be accompanied

with proof of payment of fifty percent. of the

tax amount remaining unpaid as on the date of

making application under sub-section (1).

(3) The application shall be submitted

separately for each assessment under the relevant

Act.

(4) The applicant shall send a copy of

the application made under sub-section (1) to the

Appellate Authority or the Revisional Authority

under the relevant Act, before whom any appeal

or revision, as the case may be, is pending within

seven days from the date of making such application

before the assessing authority.

5. (1) The assessing authority shall verify

the correctness of the particulars furnished in

the application made under section 4 with reference

to all relevant records and determine the amount

of tax and penalty payable by the applicant at the

rates specified in section 6. The amount so determined

shall be communicated to the applicant in the

prescribed Form within fifteen days from the

date of submission of application by the applicant

under sub-section (1) of section 4.

(2) If, the amount paid by the applicant along

with the application submitted under sub-section (1)

of section 4 falls short of not more than ten percent.

of the amount payable under sub-section (2)

of section 4, then the assessing authority shall

issue a notice to the applicant in the prescribed

Form demanding payment of differential amount

within a period of seven days from the date of

receipt of notice.

Determination of

t h e

a m o u n t

payable by the

applicant and

p a y m e n t

thereof.

838

LA GAZETTE DE L'ETAT

[PART–II

(3) If, the amount paid by applicant

along with the application falls short of more

than ten percent. of the amount payable under

sub-section (2) of section 4 or the applicant fails

to pay the differential amount as per the notice

issued under sub-section (2) within the time allowed,

then the assessing authority shall summarily reject

the application by an order in writing.

(4) The balance tax and penalty amount

as determined by the assessing authority under

sub-section (1) after adjusting all payments made

earlier against the relevant demand including the

amount paid under sub-section (2) of section 4

or sub-section (2) of this section shall be paid

by the applicant within three months from the

date of communication of amount determined by

the Assessing Officer under sub-section (1) without

the requirement of any further notice from the

Assessing Authority.

(5) If, the applicant fails to pay the tax

and penalty amount payable under sub-section (4)

within the period allowed for its payment, the

assessing authority shall reject the application by

an order in writing.

(6) Any payment made under this Act shall

not be refundable. On rejection of application

under sub-section (3) or (5), the amount paid by

the applicant under this Act shall be treated to

have been paid against the respective demand

under the relevant Act.

(7) The amount determined or payable under

this section shall be rounded off to the nearest

rupee and, for this purpose, where such amount

contains a part of a rupee, and, if, such part is

fifty paise or more, it shall be rounded off to the

nearest rupee, and if, such part is less than fifty

paise, it shall be ignored.

839

PART–II]

LA GAZETTE DE L'ETAT

6. (1) Notwithstanding anything contained in

the relevant Act, but, subject to the provisions of

this Act, the applicant applying for settlement

under section 4 shall pay the arrears of tax and

penalty as below:

(a) Tax-one hundred percent. of the amount

remaining unpaid as on the date of application.

(b) Penalty-twenty-five percent. of the amount

remaining unpaid as on the date of application.

(2) On completion of payment under

sub-section (1), the balance penalty and the entire

interest shall be waived.

7. (1) The assessing authority shall, on being

satisfied about the payment of the amount determined

under sub-section (1) of section 5, by an order,

settle the arrears of tax, and penalty and issue

a certificate in such form as may be prescribed,

and thereupon, the applicant shall be discharged

from his liability to make payment of the balance

amount of arrears of penalty and interest.

(2) The certificate under sub-section (1)

shall be issued within fifteen days of payment of

the entire amount determined under sub-section (1)

of section 5 and separate certificate shall be

issued in respect of each application.

(3) The Assessing Authority, for reasons

to be recorded in writing, may refuse to settle

the arrears of tax, penalty and interest:

Provided that no order under this

sub-section shall be passed without giving the

applicant a reasonable opportunity of showing

cause against such refusal.

Rate applicable

in determining

amount payable

and waiver.

Settlement of

arrears and issue

of certificate.

840

LA GAZETTE DE L'ETAT

[PART–II

(4) After a certificate under sub-section (1)

is issued by the Assessing Authority, the Commissioner

may, at any time within one year from the date

of issue of the certificate, call for the record of

such certificate and after noticing an error in

such certificate, in so far as it is prejudicial to

the interest of revenue, may modify the certificate

after allowing the applicant a reasonable opportunity

of showing cause.

8. A certificate issued under section 7 shall

be conclusive as to the settlement to which it

relates, and no matter covered by such certificate

shall be re-opened in any proceeding of review

or revision, or in any other proceeding, under

the relevant Act.

9. (1) Notwithstanding anything to the contrary

contained in any provision in the relevant Act,

appeal or revision for any period pending before

the Appellate Authority or Revisional Authority,

as the case may be, under the relevant Act in

respect of which a certificate is issued under

section 7, shall be deemed to have been withdrawn.

(2) Any order passed by the Appellate Authority

or Revisional Authority subsequent to the date of

filing of application for settlement of arrears of

tax, penalty and interest resulting in claim for

refund of amount paid upto the time of settlement

of such arrears of tax and penalty under this

Act, will not be taken into consideration.

(3) Where any revenue recovery proceedings

under the Puducherry Revenue Recovery Act, 1970

has been initiated or private complaint has been

filed before the Judicial Magistrate Court against

the applicant for recovery of arrears of tax, penalty

and interest, on issue of certificate under section

7, the revenue recovery proceedings and the private

complaint relevant to the demand for which the

certificate is issued shall be withdrawn:

B a r

o n

r e -

o p e n i n g

o f

settled cases.

Withdrawal of

appeal, revisions

a n d

r e v e n u e

r e c o v e r y

Actions.

Act

No. 14

o f

1970.

841

PART–II]

LA GAZETTE DE L'ETAT

Provided that the private complaint pending

before the Judicial Magistrate Court shall not be

withdrawn without the prior approval of the

Government.

10. No authority shall proceed to decide in

any appeal or revision under the relevant Act

relating to any assessment order in respect of

which a copy of the application has been received

under sub-section (1) of section 4:

Provided that such authority shall proceed

to decide such proceeding or appeal or revision in

accordance with the provisions of the relevant Act,

if, the application is rejected under sub-section (3)

or (5) of section 5 or if, a certificate referred to

in sub-section (1) of section 7 is refused to the

applicant by an order passed by the Assessing

Authority under sub-section (3) of section 7.

11. (1) Notwithstanding anything contained

in section 8 or section 9, where it appears to the

assessing authority that an applicant has obtained

the certificate under section 7 by suppressing

any material information or particulars or by furnishing

any incorrect or false information or particulars,

such Assessing Authority, may, within a period

of two years from the date of issue of the said

certificate, for reasons to be recorded in writing

and after giving the applicant a reasonable opportunity

of showing cause, revoke the certificate issued

under sub-section (1) of section 7.

(2) If, a certificate is revoked under

sub-section (1), any appeal or revision, as the

case may be, under the relevant Act, covered by

such certificate shall, notwithstanding the provisions

of section 8 or section 9, stand revived or reinstated

Authority not to

p r o c e e d

i n

certain cases.

Revocation of

certificate.

842

LA GAZETTE DE L'ETAT

[PART–II

immediately upon such revocation, and such appeal

or revision shall be decided in accordance with

the provisions of the relevant Act, as if, no settlement

of the arrears of tax and penalty in such proceeding

or appeal or revision has ever been made under

this Act.

(3) In the case of revocation of a certificate

in accordance with sub-section (1), the amount

paid by the applicant under section 5 shall be

treated as payment towards the amount payable

under the relevant Act for the demand for which

the certificate has been revoked.

12. The Assessing Authority within three days

of the receipt or issue, as the case may be, shall

communicate to the Appellate Authority or Revisional

Authority under the relevant Act, who for the

time being, has jurisdiction over the applicant

under the relevant Act and to the Commissioner,—

(a) copy of order passed under sub-section (3)

or (5) of section 5;

(b) copy of an order passed and certificate

issued under sub-section (1) of section 7;

(c) copy of revocation order passed under

sub-section (1) of section 11; and

(d) such other matters as it may deem

necessary.

13. If, any difficulty arises in giving effect

to any of the provisions of this Act, the Government

may, by order, not inconsistent with the provisions

of this Act, remove such difficulty:

Provided that no such order shall be made

after the expiry of one year from the date of

coming into force of this Act.

Information to

b e

s e n t

t o

authorities under

relevant Act.

P o w e r

t o

r

e

m

o

v

e

difficulties.

843

PART–II]

LA GAZETTE DE L'ETAT

14. (1) The Government may, make rules,

whether prospectively or retrospectively, for carrying

out the purposes of this Act.

(2) (a) All rules made under this Act shall

be published in the Official Gazette and unless

they are expressed to come into force on a particular

day, shall come into force on the day, on which

they are so published.

(b) All notifications issued under this Act

shall, unless they are expressed to come into

force on a particular day, come into force on the

day on which they are so published.

(3) Every rule made or notification issued

under this Act and every order made under section

13 shall, as soon as may be after it is made or

issued, be laid before the Legislative Assembly,

Puducherry, while it is in session for a total

period of fourteen days, which may be comprised

in one session or in two or more successive

sessions, and, if, before the expiry of the session

in which it is so laid or the successive sessions

aforesaid, the Legislative Assembly makes any

modification in the rule or notification or order

or decides that any such rule or notification or

order should not be made or issued, that rule or

notification or order shall thereafter have effect

only in such modified form or be of no effect as

the case may be, so, however, that any such

modification or annulment shall be without prejudice

to the validity of anything previously done under

that rule or notification or order.

Power to make

rules.

online publication at “https://styandptg.py.gov.in”

Published by the Director, Government Press, Puducherry.

————