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The Jharkhand Value Added Tax Act, 2005 NOTIFICATION
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THE JHARKHAND KARADHAN ADHINIYAMON KI BAKAYA

RASHI KA SAMADHAN ADHYADESH, 2021

Promulgated by the Governor of Jharkhand in the Seventy second year of the Republic of India

Preamble- To provide for settlement of old arrears and disputes arising from proceedings under Part I of Bihar Finance Act 1981 (Bihar Act 5 of 1981) and as adopted in the state of Jharkhand (as it stood before, and repealed by section 96 of the Jharkhand Value Added Tax Act 2005 (Act 5 of 2006) and arrears arising under the Jharkhand Value Added Tax Act 2005 (Act 5 of 2006), the Central Sales Tax Act, 1956 (Act 74 of 1956), the Jharkhand Hotel and Luxury Tax Act (Jharkhand Act 21 of 2011), the Adopted Bihar Electricity duty Act, 1948 (Bihar Act 36 of 1948), the Jharkhand Entertainment Tax Act, 2012 (Jharkhand Act 13 of 2012) and the Jharkhand Advertisement Act, 2012 (Jharkhand Act, 14 of 2012).

Whereas, the State Legislature is not in session and the Governor of Jharkhand is satisfied that circumstances exist which render it necessary to take immediate action to generate revenue for the State and to grant relief to arrear holder, to promulgate "The Jharkhand Karadhan Adhiniyamo ki Bakaya Rashi ka Samadhan Adhyadesh 2021" in the manner hereinafter appearing.

Now, therefore, in exercise of the power conferred by clause (1) of article 213 of the Constitution of India, the Governor of Jharkhand is pleased to promulgate the following Ordinance -

CHAPTER 1

Preliminary

1. Short title, Extent and commencement-

(1) This Ordinance may be called the Jharkhand Karadhan Adhiniyamon ki Bakaya Rashi ka Samadhan Adhydesh, 2021 (in short Kar SamadhanYojna)

(2) It shall extend to whole of the State of Jharkhand.

(3) It shall come into force on the date of publication in the official Gazette and effective up to six months from the date of its notification.

Provided that the State Government may, by notification published in official Gazette in this behalf, extend the said period of six months by such further period, not exceeding six months, as may be specified in the said notification.

2. Definitions-

(1) In this Ordinance unless the context otherwise requires:-

(i) "Admitted tax"- means the amount of tax, interest and penalty admitted as being payable by the person under relevant Act;

(ii) "Assessed tax"- means tax, interest and penalty determined as being payable under an order of assessment or reassessment under the relevant Act;

(iii) "Applicant"- means a person, who is liable to pay old arrears under the relevant Acts and also includes a person willing to settle the amount of old arrears of any other person, who desires to avail benefit of settlement by complying with the condition under this Ordinance;

(iv) "Appeal"- means an appeal under the relevant Act, pending before the Appellate Authority under respective Act;

(v) " arrear of tax, penalty, interest or fine" means,-

(i) tax, interest, penalty or fine by whatever name called, payable by an assesses pursuant to an order of assessment, re-assessment or scrutiny or any other order made or passed under the relevant Acts relating to any period ending on or before 31st March, 2016 which is due for payment as on the date of filing application under this Ordinance;

Provided that old arrears shall not include any arrears related to deferment of tax schemes, issued by the State Government under the relevant Acts, from time to time;

(vi) "Commissioner"- means the Commissioner of Commercial Taxes or Additional Commissioner of Commercial/State Tax appointed by the Government

(vii) "dispute" means an appeal, revision, review, reference, Writ Petition, or Special Leave Petition, arising out of any order passed under the relevant Act and pending before, as the case may be, the following:-

    (i) The Joint Commissioner of Commercial Taxes (Appeal)

    (ii) The Joint Commissioner of Commercial Taxes (Administration)

    (iii) The Commissioner of Commercial Taxes

    (iv) The High Court

    (v) The Supreme Court of India

Explanation:- For the purposes of this clause a dispute includes:-

    (i) Any levy of tax, interest, and penalty by an authority prescribed and/or authorized under the relevant Acts, which has not been paid into Government Treasury, or

    (ii) A proceeding for recovery of any tax, interest, fine or penalty, initiated by or pending before any authority appointed or prescribed or authorized under the relevant Act or under the Bihar and Orissa Public Demand Recovery Act, 1914;

(viii) "disputed amount" , in relation to a dispute, means any tax or interest or fine or penalty which has been determined as being payable by the person pursuant to an order of assessment, re-assessment, scrutiny or any other order made or passed under the Relevant Acts and which is not admitted and for such demand a litigation has been filed before any Appellate Authority or Forum but shall not include any demand in pursuant to an order of assessment, re-assessment, scrutiny or any other order made or passed under the Relevant Acts where the Government has filed any case against such demand before any Appellate Authority or higher Courts

(viii) "Relevant Act" means :-

    1. The Bihar Finance Act, 1981 (Bihar Act 5 of 1981) as adopted in the State of Jharkhand (as it stood before, and repealed by section 96 of the Jharkhand Value Added Tax Act 2005 (Act 5 of 2006).

    2. The Central Sales Tax Act 1956 (Act74 0f 1956)

    3. Jharkhand Value Added Tax Act, 2005 (Act 05 0f 2006)

    4. Adopted and amended the Bihar Electricity Duty Act, 1948 (Bihar Act 36 of 1948) and amended Act 10 of 2011 by Jharkhand

    5. Jharkhand Taxation on Luxuries in Hotels Act, 2011 (Jharkhand Act 21 of 2011)/Act administered before this

    6. Jharkhand Advertisement Act 2012 (Jharkhand Act 14 of 2012)/Act administered before this

    7. Jharkhand Tax on Professions, Trades, Calling and Employment Act, 2011

    8. Jharkhand Entertainment Tax Act, 2012(Jharkhand Act 13 0f 2012)/Act administered before this

(ix) "person" means any authorized signatory/representative/dealer/legal heir who is a party to a dispute/holder of old arrears and wants to settle the dispute/old arrears under the Relevant Act and who files an application under this Ordinance for settlement

(x) "prescribed" means as prescribed in the Rules made under this Ordinance;

(xi) "prescribed authority", for the purposes of this Ordinance, means authorities referred to section 4 of Jharkhand Value added Tax Act, 2005;

(xii) "revision" means a petition for revision under the relevant Act pending before the Commissioner of Commercial Taxes Department or before the Jharkhand Commercial Tax Tribunal Jharkhand;

(xiii) "settled", in relation to a dispute, means disposal and conclusion of the proceeding in relation to such dispute;

(xiv) "settlement amount" means the amount to be paid by the applicant after determination by the authority, the amount to be paid finally;

(xv) "statutory certificates/declarations" for the purpose of the Ordinance means declarations and certificates mentioned under Rule 12 of the Central Sales Tax (Registration & Turnover) Rules 1957 and includes any Form of declaration prescribed under any other rule framed under the Relevant Act;

(xvi) "Tribunal" means the Commercial Taxes Tribunal constituted under section 8 of Part I of the Bihar Finance Act, 1981 or section 3 of the Jharkhand Value Added Tax Act, 2005 or any relevant Act.

The words or expressions not defined herein shall have the meanings respectively assigned to them under the relevant Act or under the rules framed there under.

CHAPTER II

Settlement of Disputes

3. Settlement amount.-

(1) Subject to other provisions of this Ordinance, old arrears of tax or tax in a dispute pending under the relevant Act may, on an application being made in this behalf by a persons, be settled upon payment of the settlement amount as specified in column 3 of the Table appended herein below:-

No. Type of Cases Settlement amount

1 2 3 (Tax) 4 ( Interest /Penalty/ fine)

1

Arrear of undisputed amount of tax due pertaining to Financial year up to 2015-16 100% of remaining balance amount of arrear of tax, reduced by any amount paid unadjusted / excess amount adjusted from any Financial year 10% of the demand of interest and penalty as per statutory order

2

Amount related to statutory declarations Forms/certificate pertaining to Financial Year upto 2015-16 100% of remaining balance, amount of the arrear of tax in dispute, outstanding on the date of application reduced by the amount of tax involved in the value of acceptable Forms/ certificates/declarations submitted by the applicant or the amount already paid towards such arrear of tax, whichever is higher. 10% interest on amount payable and waiver of interest and penalty imposed by authority in assessment order or any recovery proceeding

3

Any arrear in dispute other than mentioned in sl. No. 1 and 2 50% of tax in dispute 10% of the demand of interest and penalty as per statutory order

2. Where a person desirous of settling a dispute, has already deposited any amount, before the commencement of the scheme, in respect of the dispute, which is equal to or more than the settlement amount, the said amount would be considered as payment towards settlement amount and the person will have to pay the difference amount only. If the amount already paid in excess of settlement amount, will not be refunded.

3. No application for settlement shall be entertained by the authority, in which the State Government/ Department has moved to higher court.

Explanation-I For the purposes of this sub-section, the expression "settlement amount" shall not include any payment towards any arrear of admitted tax, interest, penalty and the person shall deposit the total amount of such admitted tax, interest and penalty;

Explanation-II Where settlement application is made for an independent interest and penalty order, it shall be considered only when the relevant tax in demand has been paid;

CHAPTER III

Manner of Settlement of Disputes

4. Application for settlement,-

(1) Any person desiring settlement of arrears, shall apply to the prescribed authority, separate applications for each statutory order under each relevant Act, in such form and manner as prescribed within 90 days from the date of this Ordinance coming into force along with proof of payment of requisite settlement amount as per sub-section (1) of section 3 of this Ordinance and other documents as may be prescribed.

Provided that the Commissioner may, by a notification published in the Official Gazette in this behalf, extend the said period for filing the application by such further period, not exceeding two months, as may be specified in the said notification.

(2) The applicant shall make disclosure about any pending appeal, revision or any petition before any Authority or Forum with respect to such arrear in dispute under relevant Acts and in case any appeal, revision or any petition is pending before any Authority or Forum, an undertaking shall be furnished by him stating that in case of availing the benefit of settlement under this Ordinance, he shall withdraw such case against the statutory order pending before any other Authority or Forum. When the settlement order is passed by the Prescribed Authority, the applicant shall forthwith produce such application regarding withdrawal of such pending relevant appeal, revision or any petition and shall produce appropriate evidence of doing so before the prescribed Authority within 7 days of receiving the settlement order, failing which his order of settlement shall be liable to be revoked by the Prescribed Authority after giving the applicant a reasonable opportunity of being heard.

(3) The prescribed Authority as specified in Clause (xii) of SubSection 1 shall have the financial Jurisdiction as per the following limits of old arrears with respect to an application-

    (1) Commercial Taxes / State Tax Officer for the amount not exceeding 5 lakh;

    (2) Assistant Commissioner of Commercial Taxes/ State Tax not exceeding 15 lakh;

    (3) Deputy Commissioner of Commercial Taxes / State Tax for any amount;

    Provided that the Commissioner may authorize/transfer any or all application from one prescribed authority to another.

5. Disposal of application.-

(1) The prescribed authority will scrutinize the application filed and if he finds correct and complete, will process for disposal in manner prescribed, and if it is found incomplete or incorrect in any manner, a notice will be issued to the applicant within 15 days, intimating deficiency to rectify the same within 15 days from the date of service of such notice;

Provided that where the applicant fails to comply the notice or fails to submit the required document within 15 days of service of such notice, the prescribed authority may, after giving reasonable opportunity and for the reasons to be recorded in writing, process or reject the application.

(2) In case an application is rejected as per the provision of Ordinance, the amount / additional amount of settlement deposit by the applicant shall be adjusted against the old arrears of the applicant and shall not be refunded to him.

(3) Every application furnished under section 4 shall be preceded in such manner and within such time as may be prescribed.

(4) The prescribed authority shall, on being satisfied about the fulfillment and correctness, pass the order of settlement, within 45 30 days, for each application separately, specifying therein the amount of settlement to be paid and intimate the applicant in the manner prescribed.

Provided that where an application is remanded under sub section 2 of section 9 to the prescribed authority for reconsideration, the order of settlement or the order of rejection of the application as per provision of sub section 1 and 4, as the case may be, shall be passed within 30 days of passing of the order on appeal,

6. Rectification of mistakes-

The prescribed authority may-

    (a) on his own motion or on direction of the Commissioner; or

    (b) on an application submitted by an applicant within 30 days of receipt of the order of settlement ;

pass an order, within 60 days of passing of order or receipt of the application whichever is earlier, rectify the order of settlement for correcting apparent mistakes on the record

Provided that if it has the effect of enhancing the tax/interest/penalty, the prescribed authority concerned shall give the applicant , a reasonable opportunity of being heard.

7. Revocation of order of settlement-

Notwithstanding anything contained in the Ordinance, where it appears to the prescribed authority on his own motion or any information or direction from the Commissioner, that the applicant has obtained the benefit of settlement by suppressing any material fact or particulars or by furnishing false or incorrect information or has concealed any fact, the prescribed authority may, for the reasons to be recorded in writing and after giving the applicant a reasonable opportunity of being heard, revoke the order of settlement passed by him under the Ordinance, within a period of one year of passing the order of settlement;

Provided the period of one year may be extended to five years with the approval of the Commissioner.

The amount of settlement deposited by the applicant pursuant to a settlement order, shall be adjusted against the outstanding dues of the year concerned.

8. Power of the Commissioner under the Ordinance

(i) The Commissioner may, from time to time, issue instructions and directions as he may deem fit for carrying out the purpose of the Ordinance,

(ii) The Commissioner may prescribe any Form/annexure/worksheet required for the purpose of the Ordinance

(iii) The Commissioner may authorize/ transfer any or all application from one prescribed authority to another

(iv) The Commissioner may, on his own motion or on application or information, direct the authority to re verify the Order of Settlement. He may, reasons to belief, that applicant has suppressed any material facts/particulars/information or has given false information/concealed any particulars, revoke the Order of Settlement passed by any prescribed authority and may direct to pass a fresh order after giving the applicant a reasonable opportunity of being heard,

9. Appeal-

An appeal against the order of settlement passed by the Prescribed authority, shall be filed before the Additional/Joint commissioner (Appeal) of the Division, having jurisdiction as specified in sub- section (2) of Section 4 of the Jharkhand Value Added Tax Act, 2005 within 30 days from the date of service of such order

(2) Appellate authority shall pass an order, after giving opportunity of hearing, within 60 days of filing of such application of appeal.

(3) No appeal shall lie against the order passed under proviso of subSection (2) of Section 2.

(4) In disposing of the appeal, the Appellate Authority may,-

    (i) set aside the order of rejection of the application and the remand the application to the Prescribed Authority for consideration;

    (ii) reject the appeal.

(5) Order passed by appellate authority shall be final

(6) The Commissioner may, on his own motion or on application, transfer any or all appeals from one appellate authority to another

10. Power to make rules.-

(1) The Government may by notification, make rules for carrying out the provisions of this Ordinance.

(2) Without prejudice to the generality of the provisions of subsection (1), the Government may make rules for all or any of the matters which by this Ordinance are required to be, or may be prescribed or in respect of which provision are to be or may be made by rules.