The Meghalaya Settlement of Arrears (Under the State Taxation Acts) Act, 2020 (Act No. 16 of 2020)

NOTIFICATION
The 24th November, 2020.
No.LL(B)21/2020/22.—The Meghalaya Settlement of Arrears (Under the State
Taxation Acts) Act, 2020 (Act No. 16 of 2020) is hereby published for general
information.
The Gazette of Meghalaya
EXTRAORDINARY
PUBLISHED BY AUTHORITY
 No. 221          Shillong, Tuesday, November 24, 2020        3rd Agrahayana-1942 (S. E.)
PART-IV
GOVERNMENT OF MEGHALAYA
LAW (B) DEPARTMENT
———
MEGHALAYA  ACT  NO. 16  OF  2020.
(As passed by the Meghalaya Legislative Assembly)
Received the assent of the Governor on the 20th November, 2020.
Published in the Gazette of Meghalaya Extra-Ordinary issue dated 24th November, 2020.
THE GAZETTE OF MEGHALAYA (EXTRAORDINARY) NOVEMBER  24, 2020 [PART-IV1144
THE MEGHALA YA SETTLEMENT OF ARREARS  (UNDER THE STATE TAXATION ACTS) ACT, 2020
An
Act
to provide for securing the interest of Revenue Collection by the Government of Meghalaya, and to
reduce the arrears arising out of the enactments administered by the Commercial Taxes Department and
matters incidental thereto.
Be it enacted by the Legislature of the State of Meghalaya in the Seventy-first year of the Republic of
India as follows:-
1. (1) This Act may be called The Meghalaya Settlement of Arrears (under
State Taxation Acts) Act, 2020.
(2) It extends to the whole of the State of Meghalaya.
(3) It shall  come into  force on  such date as the  State Government may,
by notification in the official Gazette appoint.
2. (1) In this Act, unless the context otherwise requires, —
(a)  “Annexure” means the Annexure appended to this Act;
(b) “Appellate  Authority” means the authorities competent to hear
appeals against orders passed under the provisions as existed
before the subsumation of the enactments under the Meghalaya
Goods and Services Tax Act, Act or as existing under the
enactments kept out of the   Meghalaya Goods and Services
Tax  Act, Act and includes the Assistant Commissioner of Taxes
(Appeals) or any officer not below the rank of   Commissioner of
Taxes, Assistant Commissioner  of  Taxes, the Appellate Tribunal
and all authorities specified in sub-section (4) of Section 6 of
this Act;
(c) “Applicant” means a tax defaulter or a tax non-payer or short
payer who is liable to pay arrears of Tax, interest, surcharge and
penalty, levied or imposed under the relevant State Taxation Acts
and who desires to avail the benefit of settlement, by complying
with the conditions, under this Act;
(d)  “Arrears” means the composite amount of tax, interest,
surcharge, penalty as the case may be, —
(i) payable by an assessee as per any statutory order under the
relevant State Taxation Act as on the cut-off date which is the
31st March 2020; or (ii) admitted in the return or, as the case
may be, the revised return filed under the relevant State
Taxation Acts and which has not been paid either wholly or
partly; or (iii) determined and recommended to be payable by
the auditor, in the audit report under the relevant State Taxation
Acts; or (iv) in respect of which a notice has been issued, in
relation to any proceeding under the relevant State Taxation
Acts; or
Short title, extent
and commencement
Definitions.
(v) determined to be payable by the assessee where no notice
in relation to any proceeding under the relevant State Taxation
Acts is issued, and such arrears of tax, interest, surcharge,
penalty, pertains to specific tax period for which the return
has been filed;
(e)“Assessing Officer” means the Government official designated to
complete assessment of periodical tax Returns filed by a registered
dealer under respective State Taxation Acts;
(f) “Assessment” means statutory proceedings under State Taxation
Acts to determine the tax liability of a registered dealer;
(g)“Commissioner”   means   the   Commissioner   of Taxes, Meghalaya;
(h)“Dealer” means a person who carries on business, as defined under
clause (xvi) of Section 2 of the Meghalaya Value Added Tax Act, 2003,
sub-section (3) of Section 2 of the Meghalaya Sales Tax Act, sub-
section (2) of Section 2 of the Meghalaya (Finance) Sales Tax Act,
sub-section (3) of Section 2 of the Meghalaya Purchase Tax Act, sub-
section (4) of Section 2 of the Meghalaya (Sales of Petroleum and
Petroleum products etc.) Taxation Act and clause (b) of Section 2 of
the Central Sales Tax Act, 1956;
(i) “Government” means the Government of Meghalaya;
(j) “Hotelier” means a person as defined under clause (d) of Section 2 of
The Meghalaya Tax on Luxuries (Hotels and Lodging Houses) Act,
1991;
(k) “Notice of Demand” means a statutory notice issued to a registered
dealer after assessment requiring him to pay the outstanding dues;
(l) “Person” includes an individual, joint family, firm, company,
association of persons, body of individuals whether incorporated or
not, Central Government or State Government or local authority;
(m)“Registered dealer Taxation Act” means a dealer or a hotelier
registered under the respective State Taxation Acts;
(n) “Scheme” means the settlement of Arrear (under the State Taxation
Acts) as provided under Section 3 to Section 13 of this Act;
(o) “State” means the State of Meghalaya;
(p) “State Taxation Acts” include The Meghalaya Sales Tax Act (Assam
Act XVII of 1947 as adapted and amended by Meghalaya), The
Meghalaya (Finance) Sales Tax Act (Assam Act XI of 1956 as adapted
and amended by Meghalaya), The Meghalaya Tax on Luxuries (Hotels
and Lodging Houses) Act, 1991, The Meghalaya (Sale of Petroleum
and Petroleum Products etc.) Taxation Act (Assam Act IX of 1956 as
adapted and amended by Meghalaya), the Meghalaya Purchase Tax
Act (Assam Act XIX of 1967 as adapted and amended by Meghalaya),
the Meghalaya Value Added Tax Act, 2003 and the Central Sales Tax
Act, 1956 as administered, collected and appropriated by the
Government;
(q) “Tax Defaulter” means a registered dealer who has been assessed
to tax and has been issued notice(s) of Demand on or before the 31st
March 2020, but has failed to pay the outstanding dues of tax, interest,
surcharge or penalty; and
THE GAZETTE OF MEGHALAYA (EXTRAORDINARY) NOVEMBER  24, 2020PART-IV] 1145
(r) “Tax Non-payer and/or Short payer” means a registered dealer
who has furnished the return for all tax periods upto 31st March, 2020
but has made no payment or has failed to make full payment of the
tax admitted therein and notice(s) of demand has not yet been served;
(2) Words and expressions used in this Act but not defined herein shall
have the same meaning as respectively assigned to them under the
relevant State Taxation Acts;
3. (1) Notwithstanding anything contained in the relevant State Taxation
Acts or under this Act,-
(a)  any payment made in respect of the statutory order either in
the appeal or otherwise, on or before the date of
commencement of this  Act,  shall  first be  adjusted towards
the amount of tax and thereafter towards the interest and the
balance amount remaining unadjusted, shall then be adjusted
towards the penalty, sequentially;
(b)  after adjustment of amount as specified in clause (a), the
amount remaining outstanding, if any, as on the date of
commencement of this Act, shall only be considered for the
settlement and the requisite amount payable towards the
settlement of aforesaid outstanding amount and the waiver,
thereof, shall be as determined in accordance with the
provisions of this Act.
(2)  The provisions of foregoing clauses shall be applicable with necessary
changes to the balance outstanding dues as per the return furnished
for the particular tax period or, as the case may be, as per the
recommendations made in respect of tax, interest, surcharge or penalty
by the auditor in the audit report.
4. (1)   An applicant is eligible for remission on tax, interest, surcharge and
penalty, on condition that he makes payment of not  less  than  seventy
per  centum   of total   dues,   as  per applicability   set   forth,   within
the   date   specified   by   the Commissioner in the notice as may be
prescribed.
(2) Subject to the other provisions of this Act, an applicant shall be eligible
to make an application for settlement of arrears of tax, interest,
surcharge and penalty in respect of the specified period, whether such
arrears are disputed in appeal under the relevant State Taxation Acts
or not:
Provided that no applicant shall be eligible for the Scheme if he has
been convicted of an offence under Chapters XI, XVII and XVIII of the
Indian Penal Code; or economic and financial offences prohibited by
laws of the Government of India.
5. (1) An applicant eligible under the Scheme with dues of tax, interest,
surcharge and penalty shall be granted remission on tax, interest,
surcharge and penalty up to an amount not exceeding thirty per centum
of the total dues.
Adjustment of any
payment made
under relevant act
and settlement of
arrears of tax,
interest, surcharge,
penalty, if any
Eligibility
Extent of
applicability and
duration
THE GAZETTE OF MEGHALAYA (EXTRAORDINARY) NOVEMBER  24, 2020 [PART-IV1146
(2) The duration of the Scheme shall be for a period of six months from
the date of publication of the Act in the Official Gazette.
6. (1)  An eligible applicant who opts for the Scheme would have to file an
application in the Form to prescribed by rules made thereunder. The
application shall be signed in the case of an individual,   by   the
individual   himself  or   a   person   duly authorized by the individual
or a person competent to act on his behalf.   In  case   of person
other  than   an   individual,   the declaration shall be signed by a
person duly authorized or a person competent to act on behalf of
entities other than an individual.
(2)  The application shall be made to the Assessing Officer in such form
and in such manner, as may be specified in the order by the
Commissioner.
(3)   Subject to the other provisions of this Act, where an applicant desires
to settle the arrears of outstanding dues as per return furnished for
the particular tax period under the relevant State Taxation Acts, he
shall submit a separate application for each of such return or revised
return under each relevant State Taxation Act.
(4)  Where any Appellate Authority including Tribunal, or the Court has
remanded the case back to any authority under the relevant State
Taxation Acts, for giving effect to the directions given therein and such
order has not been passed on or before the date of commencement of
this Act, then such cases shall not be eligible for settlement under
this Act:
Provided that, the applicant may be eligible to settle the amount of
tax, interest, surcharge and penalty as per the directions given by the
said authority or the Court and in case, no such specific directions
are given then such tax, interest, surcharge and penalty shall be
determined by the applicant.
7. (1) (a) Notwithstanding anything contained in any provisions of the
relevant State Taxation Act, the appeal pending before the Appellate
Authority or the Tribunal or the Court, shall be withdrawn un-
conditionally by the applicant on the date on which such appeal
withdrawal application is submitted to the aforesaid authorities or the
Court.
(b) The submission of acknowledgement of such application to the
Commissioner, along with the application for settlement shall be treated
as sufficient proof towards withdrawal of the said appeal.
(2)  In case, the applicant desires to withdraw the appeal, in respect of
certain issues and desires to continue the same for certain other
issues, then the applicant, shall specifically state details thereof in
withdrawal application filed before the said authorities     or    the
Court,     and     the     provisions     of sub-section  (1) of this   Section
shall   apply with  necessary changes so far as they relate to the
withdrawal and submission of proof to the Commissioner.
(3)  The provisions of Section 3 shall be applicable in the cases where the
applicant withdraws appeal as mentioned in sub-section (2) of this
Section.
Procedure for
application
Withdrawal of
appeal
THE GAZETTE OF MEGHALAYA (EXTRAORDINARY) NOVEMBER  24, 2020PART-IV] 1147
8. (1) The Commissioner shall  cause each application to be  verified
by the respective Assessing Officer for correctness of the declaration
and payment, to be recorded in the registered dealer’s file for respective
State Taxation Acts.
(2)  The Assessing Officer shall verify and confirm that the application
is accompanied with documents mentioned in the application  form.
The   Assessing   Officer  shall   verify  the correctness of the particulars
furnished in the application and documents submitted with the
application with reference to the records available with the assessing
authority or, as the case may be,  any other authority with whom
such records are available.
(3)  On verification of the application, in case it is noticed that, the
said application is incorrect or incomplete or the amount declared to
have been paid is deficient, the Assessing Officer shall issue defect
notice, within thirty working days from the date of receipt of the
application and inform the applicant about the defects in the application
along with the details of the amount to be paid: provided that, the
defect notice in respect of an application shall be issued only once.
(4)  The applicant shall, within fifteen days of the issue of the defect
notice, correct the defects and make the payment of amount short
paid, if any, and submit proof of such payment to the Assessing Officer.
(5) In   case  the   applicant  fails  to   correct  the   defects   so
communicated including the additional payment, if any, the Assessing
Officer may, for reasons to be recorded in writing and after giving the
applicant the opportunity of being heard, pass an order within thirty
working days of the date fixed under sub-section (4) of this Section.
(6)  Where the application is received from a Tax non-payer or Short
payer, the Assessing Officer in addition to the verification as laid down
at sub-section (1), (2) and (3) of this Section, shall pass the order of
assessment under the relevant State Taxation Acts and issue the
notice of demand to the applicant under the provisions of the relevant
State Taxation Acts within thirty working days from the date of receipt
of the application.
(7) Where, the application is found by the Assessing Officer to be
complete   in   all   respects   including   application   where deficiencies
have been cured or notice of demand has been raised under sub-
section (6) of this Section in accordance with the provisions of this
Scheme and the rules made there under, he shall within fifteen working
days, forward the application along with the case records to the
Commissioner.
(8)   Where the application for settlement of arrears of tax, interest,
surcharge and penalty is not in accordance with the provisions of this
Scheme, the Assessing Officer may, by order, for reasons to be
recorded in writing, within thirty working days from the date of receipt
of the application, reject the application, after giving the opportunity of
being heard to the applicant.
Verification by
assessing officer
THE GAZETTE OF MEGHALAYA (EXTRAORDINARY) NOVEMBER  24, 2020 [PART-IV1148
(9)  Where the application has been rejected under sub-section (5)
and (8) of this Section, the applicant may within fifteen working days
of the date of issue of the order, file an appeal to the Commissioner in
the format as may be prescribed by rules made thereunder.
(10)  The speaking order on the appeal is to be passed by the
Commissioner within thirty working days from the date of receipt of
the appeal.
 9. (1) If the Commissioner is satisfied that the application is complete
and accurate in all respects in accordance with the provisions of this
Scheme and the rules made there under, he shall issue the notice of
demand directing the applicant to make payment to the Government
Treasury, by Treasury challan, by the specified date being not less
than thirty days and more than forty five days from the date of issuance
of the notice, the sum of not less than seventy percentum of the total
dues of tax, interest, surcharge and penalty.
(2)  On full payment of the sum specified at sub-section (1) of this
Section, the Commissioner shall pass a speaking order and issue a
Tax Clearance Certificate within thirty working days, in a manner and
format as may be prescribed by rules made thereunder and provide
the copy of the said order to the applicant and thereupon,
notwithstanding anything contained in the  relevant  State Taxation
Acts,  such applicant  shall  be discharged of his liability to the extent
of the amount of waiver specified in the order of the settlement.
(3)   The   Commissioner  may,   on  his   own   motion  or  on
application, within six months from the date of issue of the order of
settlement, rectify any error apparent from the record and pass a
speaking order accordingly:
Provided that, no order adversely affecting the applicant shall be passed
without giving him a reasonable opportunity of being heard.
 10. (1) If the Commissioner is satisfied that a tax defaulter has obtained
the grant of remission and amnesty by misrepresentation of facts or
furnishing of false information, the Commissioner may revoke the grant
after giving the tax defaulter an opportunity of being heard:
Provided that no order under the provision of sub-section (1) of this
Section shall be passed after the expiry of two years from the date of
issuance of the Tax Clearance Certificate under this Scheme.
(2) If an order of settlement is revoked under sub-section (1) of this
Section, the assessment, revision, review or appeal, as the case may
be, under the relevant State Taxation Acts, covered by such order of
settlement, shall stand revived or reinstated immediately upon such
revocation, and such assessment, revision, review or appeal, as the
case may be, shall be decided in accordance with the provisions of
the relevant State Taxation Acts, as if no order of settlement of the
arrears of tax, interest, surcharge, penalty has ever been made, and
notwithstanding the period of limitation provided under the relevant
State Taxation Acts, such assessment, revision, review or appeal, as
the case may be, shall be made by the respective authorities, within
two years from the date of passing the order of such revocation:
Grant of remission
and amnesty
Revocation of grant
THE GAZETTE OF MEGHALAYA (EXTRAORDINARY) NOVEMBER  24, 2020PART-IV] 1149
Provided that, an appeal shall be re-instated on application made
in this behalf to the Appellate Authority within sixty days from the
date of issue of the order of revocation.
11.  An order of settlement issued under the provisions of this Act shall
be conclusive as to the settlement of arrears covered under that order,
and the matter covered by such order of settlement shall not be re-
opened in any proceeding or review or revision or any other proceeding
under the relevant State Taxation Acts.
12. Final orders issued by the Commissioner in a manner and format as
may be prescribed by rules made thereunder shall supersede the
notice(s) of Demand issued under respective State Taxation Acts by
the Assessing Officer, and no further proceedings for recovery shall
continue.
13. Under no circumstances, the applicant shall be entitled to get the
refund of the amount paid under this Act:
Provided that, in case of revocation of an order of the settlement
in accordance with the provisions of this Act, the amount paid by the
applicant under this Act shall be treated to have been paid under the
relevant State Taxation Acts.
14. (1) No Appellate Authority including Tribunal, shall proceed to decide
any appeal under the relevant State Taxation Acts, in respect of and
to the extent of one or more issues or all the issues for which an
application is made by the applicant under the provisions of this Act.
(2) Notwithstanding anything contained in the relevant State Taxation
Acts, the Assessing Authority, the Appellate Authority including the
Tribunal, Revision Authority, Reviewing Authority, shall proceed to
decide such assessment, appeal, revision or review in accordance
with the relevant State Taxation Acts, -
(a) to the extent of the issues for which no application for
settlement is made by the applicant; or
(b) in case an order of settlement referred in Section 9 is
made, rejecting the application for settlement.
  15. (1)    The State Government may, by notification, with prospective or
retrospective effect not earlier than the date of coming into effect of
this Act, make rules for carrying out the purposes of this Act.
(2)  In particular and without prejudice to the generality of the foregoing
power, such rules may provide for all or any of the matters which
under any provision of this Act are required to be prescribed for by the
rules.
16. (1)   The Commissioner may, from time to time, issue instructions
and directions as he may deem fit to the designated authorities, for
carrying out the purposes of this Act. (2) The Commissioner may, by
an order specify the forms for the purpose of this Act and the manner
in which the form shall be submitted.
Powers of authori-
ties
Power to make
rules
Bar on re-opening of
settled cases
Resolution of dues
No refund under this
scheme
Power of the
Commissioner
THE GAZETTE OF MEGHALAYA (EXTRAORDINARY) NOVEMBER  24, 2020 [PART-IV1150
Interpretation 17. If any question arises relating to the interpretation of any of the
provisions in this Act, it shall be referred to the Government of
Meghalaya in the Excise, Registration, Taxation & Stamps
Department, whose decision thereon shall be final and binding and no
challenge shall lie against any order passed under this Act before any
court of law.
18. (1) If any difficulty arises in giving effect to the provisions of this Act,
the Government may, as occasion arises, by an order published in
the official Gazette, do anything not inconsistent with the provisions
of this Act, which appears to it to be necessary or expedient for the
purpose of removing the difficulty:
Provided that, no such order shall be made after the expiry of a
period of two years from the date of commencement of this Act.
(2) Every order made under sub-section (1) of this Section above shall
be laid, as soon as may be, after it is made, before the House of the
State Legislature.
19. No suit shall be brought in any civil court to set aside or modify any
order passed under this Act; and no prosecution, suit or other
proceeding shall lie against the Commissioner or any of his
subordinate officers for anything done in good faith or intended to be
done under this Act.
20. (1)   The Meghalaya Settlement of Arrears (under the State Taxation
Acts) (Meghalaya Ordinance No.3 of 2020) is hereby repealed.
(2)  Notwithstanding such repeal, anything done or any action taken
under the Ordinance so repealed shall be deemed to have been
taken or done under the provisions of this Act.
Power to remove
difficulties
Bar to proceedings
in civil court
Repeal and saving
THE GAZETTE OF MEGHALAYA (EXTRAORDINARY) NOVEMBER  24, 2020PART-IV] 1151
SHILLONG: Printed and  Published  by the Director,  Printing and  Stationery, Meghalaya, Shillong.
              (Extraordinary Gazette of Meghalaya) No. 441 - 730 + 200 — 24 - 11 - 2020.
website:- http://megpns.gov.in/gazette/gazette.asp
S. K. SANGMA,
Deputy Secretary to the Govt. of Meghalaya,
Law Department.

‹ Prev All Meghalaya acts Next ›