The Telangana Sales Tax (Settlement of Disputes) Act, 2001.

THE TELANGANA SALES TAX (SETTLEMENT OF DISPUTES) 
ACT, 2001. 
(ACT NO. 41 OF 2001) 
ARRANGEMENT OF SECTIONS 
Sections 
1. Short title, extent and commencement. 
2. Definitions. 
3. Application of the provisions of the law relating to 
Telangana General Sales Tax Act, 1957, Telangana 
Entertainments Tax Act, 1939 and Central Sales Tax Act, 
1956. 
4. Application of the Act. 
5. Act not apply to certain cases. 
6. Waiver of the tax, etc., 
7. Competent authority. 
8. Withdrawal of appeal, revision etc., 
9. Eligibility for settlement. 
10. Application for settlement. 
11. Determination of amount payable by the applicant. 
12. Settlement of dispute. 
13. Rectification of error. 
14. Revocation of certificate of settlement. 
15. Power to make rules. 
16. Repeal of Ordinance. 
 
THE TELANGANA SALES TAX (SETTLEMENT OF 
DISPUTES) ACT, 2001.1 
 
ACT NO.41 OF 2001. 
 
1. (1) This Act may be called the 2Telangana Sales Tax 
(Settlement of Disputes) Act, 2001. 
 
 (2) It extends to the whole of the State of 2Telangana. 
 
 (3) It shall be deemed to have come into force on and 
from the 17th July, 2001. 
 
2. The words and expressions used in this Act shall have 
the meaning respectively assigned to them in the 
3Telangana General Sales Tax Act, 1957, 4the Telangana 
Entertainments Tax Act, 1939 and the Central Sales Tax Act, 
1956. 
 
3. Subject to the provisions of this Act, the provisions of 
the law relating to the Telangana General Sales Tax Act, 
1957, the Telangana Entertainments  Tax Act, 1939 and the 
Central Sales Tax Act, 1956 for the time being in force in the  
State shall apply mutatis -mutandis to all the registered and 
unregistered dealers. 
 
                                                           
1. The Andhra Pradesh Sales Tax (Settlement of Disputes) Act, 2001  
received the assent of the Governor on the 1 5th October, 2001. The said 
Act in force in the combined State, as on 02.06.2014, has been adapted 
to the State of Telangana, under section 101 of the Andhra Pradesh 
Reorganisation Act, 2014 (Central Act 6 of 2014) vide. the Telangana 
Adaptation of Laws Order, 2016, issued in G.O.Ms.No.45, Law (F) 
Department, dated 01.06.2016. 
2. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016. 
3. Repealed by Act 5 of 2005 and presently see the provisions in the 
Telangana Goods and Services Tax Act, 2017 (Act 23 of 2017). 
4. Adapted in G.O.Ms.No.78, Revenue (Commercial Taxes -II) 
Department, dated 21.05.2016 and repealed by Act 23 of 2017. 
Short title, extent 
and 
commencement. 
Definitions. 
 
Act 6 of 1957. 
Act X of 1939. 
Central Act 74 of 1956. 
Application of the 
provisions of the 
law relating to 
Telangana 
General Sales Tax 
Act, 1957, 
Telangana 
Entertainments 
Tax Act, 1939 and 
Central Sales Tax 
Act, 1956. 
2  [Act No.41 of 2001] 
4. (1) The provisions of this Act shall apply to,- 
 
  (i) the disputed taxes including additional tax, 
surcharge, turn over tax, penalty, interest whic h are due as 
on 31st March, 2001; 
 
  (ii) cases where the amount involved i s rupees One 
Crore and below per e ach year of assessment  as on 31 st 
March, 2001 under the relevant Acts referred to in section 2; 
 
  (iii) an assessment order, revision order, 
reassessment order, penalty and interest order passed upto 
31st March, 2001 and cases relating to such orders pending 
before various app ellate and revisional authorities. In case 
of revision, the revision notice or order must have been 
served on or before 31st March, 2001. A dealer who is in 
receipt of any show -cause notice prior to 31st March, 2001 
pending final proceeding can also apply. 
 
 (2) The provisions of this Act shall apply to all 
registered dealers under the Telangana General Sales Tax 
Act, 1957 and the Central Sales Tax Act, 1956; as well as to 
unregistered dealers. 
 
 (3) For settlement of disputes under this Act, each year 
of assessment shall be a distinct unit. 
 
5. The provisions of this Act, shall, except to the 
additional tax, turn over tax, penalty or interest, not apply to 
any payments, irrespective of the nature of dispute made 
towards any tax, additional tax prior to 31st March, 2001, 
and to the orders passed on or after 1st April, 2001. 
 
6. An applicant shall be entitled to,- 
 
 (i) 50% (fifty percent) waiver of all the disputed taxes 
which are not yet collected as on 31st March, 2001; and 
Act not apply to 
certain cases. 
Waiver of the tax, 
etc., 
Application of the 
Act. 
[Act No.41 of 2001]  3 
 (ii) 90% (ninety percent) waiver of interest or penalties 
raised under any provisions of the relevant Act which were 
due as on 31st March, 2001; 
 
 if the payment of fifty percent of the disputed taxes as 
on 31st March, 2001  is made during the period from 1st 
August, 2001 to 30th September, 2001. 
 
7. For carrying out the purposes of this Act, the Deputy 
Commissioner (Commercial Taxes) shall be the competent 
authority. 
 
8. (a) No application under this Act shall be entertained 
by the competent authority unless the applicant files written 
declaration stating that the appeal or r evision or any other 
proceeding before the concerned authority under the 
relevant Act or any court of law may be treated as withdrawn 
upon settlement of the dispute under this Act. 
 
 (b) Upon settlement of a dispute under this Act, the 
corresponding appeal or revision filed by the State before 
the High Court or Supreme Court shall be withdrawn by the 
Authorities under the relevant Act. 
 
9. Subject to the other provisions of  this Act an applicant 
shall be  eligible to make an application for settlement of 
assessment order, revisional  order, reassessment order, 
penalty or interest in dispute in respect of any period, for 
which an assessment has been made under the relevant Act 
and an appeal or revision relating thereto is pending, on the  
31st March, 2001 before any appellate authority or revisional 
authority as the case may be. 
 
10. (1) An application for the purpose of section 9 shall be 
made to the competent authority by an applicant in such 
form and in such manner as may be prescribed and shall be 
accompanied by such fee as may be prescribed. 
Competent 
authority. 
Withdrawal of 
appeal, revision, 
etc., 
Eligibility for 
settlement. 
Application for 
settlement. 
4  [Act No.41 of 2001] 
 (2) A separate application shall be made by an 
applicant for relevant assessment years in respect of which 
an appeal or revision is pending under each of the relevant  
Acts. 
 
11. (1) The competent authority shall verify the correctness 
of the particulars furnished in such application with 
reference to the connected records available with the 
assessing authority or any  other authority with whom such 
records may be available, as the case may be. 
 
 (2) Where the competent authority is satisfied about the 
correctness of the particulars set forth in the application 
made by an applicant, he shall within sixty days from the 
date of receipt of an application referred in section 10 
determine by an or der in writing the amount payabl e by the 
applicant for the purposes of settlement of arrear tax, 
additional tax, turnover tax, penalty, or interest in dispute at 
the rate specified in section 6: 
 
 Provided that while determining the amount payable by 
the applicant for the purpose of settlement of arrear tax, 
additional tax, turnover tax, penalty or interest in dispute, the 
competent authority shall take into account any such 
amount paid by the applicant before making an application 
under section 10 and ded uct the amount so paid by him 
from the amount determined as payable by the applicant 
under this sub-section. 
 
 (3) The applicant shall pay in one lumpsum, the sum 
determined by the competent authority under sub -section 
(2) within thirty days of the receipt  of order passed by the 
competent authority: 
 
 Provided that where the sum determined by the 
competent authority under sub -section (2) is rupees twenty 
five lakhs and above, the same shall be paid in one 
Determination of 
amount payable 
by the applicant. 
[Act No.41 of 2001]  5 
lumpsum within ninety days of the receipt of the ord er 
passed by the competent authority. 
 
12. (1) The competent authori ty on being satisfied about 
the payment of the amount which the applicant is required 
to pay by virtue of the order passed under section 11 shall 
settle the dispute in respect of which an application has 
been made and issue a certificate of settlement for such 
dispute in such form as may be prescribed, to the applicant 
ordinarily within fifteen days of the receipt of the proof of 
payment, and thereupon such applicant shall be discharged 
from his liability to make payment of the balance amount of 
such arrears of tax, penalty or interest in dispute: 
 
 Provided that a certificate of settlement shall be issued 
by the competent authority separately in respect of eve ry 
application. 
 
 (2) The competent authority, for reasons to be 
recorded in writing, may refuse to settle a dispute where it 
appears to him that the applicant has concealed any 
material evidence or suppressed any information or 
particulars by furnishing u ntrue or false or incorrect or 
incomplete information: 
 
 Provided that no order adversely affecting the applicant 
shall be passed without giving the applicant a reasonable 
opportunity of showing cause against such refusal. 
 
13. The competent authority, may, at any time within ninety 
days from the date of issue of the certificate of settlement 
under section 12, rectify any error apparent on the face of 
the record: 
 
 Provided that no such rectification adversely affecting 
the appli cant shall be passed without giving a reasonable 
opportunity of showing cause against such rectification. 
Settlement of 
dispute. 
Rectification of 
error. 
6  [Act No.41 of 2001] 
14. Notwithstanding anything contained in this Act, where 
it appears to the competent authority that an ap plicant has 
obtained the benefit of settlement under this Act by 
suppressing any material information or particulars or by 
furnishing any incorrect or false information or particulars, 
such competent authority, may, for the reasons to be 
recorded in writin g, revoke the certificate of settlement 
issued under section 12: 
 
 Provided that no order of revocation shall be passed 
without giving the applicant a reasonable opportunity in the 
manner prescribed. 
 
15. (1) The Government may, by notification, make rules 
for carrying out all or any of the purposes of this Act. 
 
 (2) Every rule made under this Act, shall immediately 
after it is made be laid before the Legislature of the State if it 
is in session and if it is not i n session in the session 
immediately following for a total period of fourteen days 
which may be comprised in one session or in two 
successive sessions, and if, before the expiry of the session 
in which it is so laid or the session immediately following, 
the Legislature agrees in making any modification in the rule 
or in the annulment of the rule the rule shall, from the date 
on which the modification or  annulment is notified have 
effect only in such modified form or shall stand annulled as 
the case may be, so however, that any such modification or 
annulment shall be without p rejudice to the validity of 
anything previously done under that rule. 
 
16. The Andhra Pradesh Sales Tax (Settlement of 
Disputes) Ordinance, 2001 is hereby repealed. 
 
* * * 
Revocation of 
certificate of 
settlement. 
Power to make 
rules. 
Repeal of 
Ordinance 3 of 
2001. 

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