The West Bengal Sales Tax ( Settlement Of Dispute ) Act, 1999

GOVERNMENT OF WEST BENGAL 
LAW DEPARTMENT 
Legislative 
West Bengal Act IV of 1999 
THE WEST BENGAL SALES TAX (SETTLEMENT 
OF DISPUTE) ACT, 1999. 
[Passed by the West Bengal Legislature.] 
[Assent of the Governor was first published in the Calcutta Gazette, 
Extraordinary, of the 5th April, 1999.] 
[5th April, 1999.] 
West Ben. 
Act XLIX of 
1994. 
74 of 1956. 
An Act to provide for expeditious enforcement of payment of arrear tax, 
penalty or interest in dispute under the sales tax laws in West Bengal 
by way of settlement of such dispute. 
WHEREAS it is expedient to provide for enforcement of payment of, and 
settlement of dispute relating to, arrear tax, penalty or interest under the 
West Bengal Sales Tax Act, 1994, and other laws referred to in sub-section 
(1) of section 106 of that Act, and for enforcement of payment of, and 
settlement of dispute relating to, arrear tax or penalty under the Central 
Sales Tax Act, 1956; 
It is hereby enacted in the Fiftieth Year of the Republic of India, by 
the Legislature of West Bengal, as follows:- 
1. (1) This Act may be called the West Bengal Sales Tax (Settlement 
of Dispute) Act, 1999. 
(2) It extends to the whole of West Bengal. 
(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,— 	 Definitions. 
(a) "arrer tax, penalty or interest in dispute" means,— 
(i) tax, by whatever name called, payable by an assessee 
upon assessment under the relevant Act, or, 
(ii) penalty imposed upon an assessee for default in 
furnishing return in accordance with the provisions of 
the relevant Act, or, 
Short title, 
extent and 
commence-
ment. 
93 
The West Bengal Sales Tax (Settlement of Dispute) Act, 1999. 
[West Ben. Act 
(Section 2.) 
(iii) interest payable an assessee under the relevant Act,— 
(A) as determined for delayed payment or non-payment 
of tax before assessment; or 
(B) as accrued in respect of non-payment of tax or 
short payment of tax after assessment, 
which, as the case may be, is in dispute in any appeal or 
revision pending before the appellate authority or 
revisional authority on the 31st day of December, 1998, 
under the relevant Act. 
Explanation.—For the purposes of this Act, the 
interest referred to in item (B) of sub-clause (iii) shall be 
deemed to be an arrear interest in dispute; 
(b) "applicant" means a "dealer", an "occupier of a jute mill" or 
a "shipper of jute" as defined in the relevant Act, and includes 
legal heir, successor, assignee or nominee of such dealer, 
occupier of a jute mill or a shipper of jute where the business 
of such dealer, occupier of a jute mill or shipper of jute has 
ceased to exist or has been discontinued prior to the date of 
coming into force of this Act, but does not include such 
dealer, occupier of a jute mill or shipper of jute, if any 
proceeding for prosecution has been instituted against him 
for any offence punishable under any of the provisions of the 
relevant Act; 
(c) "designated authority" means the authority appointed under 
section 3; 
(d) "prescribed" means prescribed by rules made under this Act; 
(e) "relevant Act" means— 
(i) the West Bengal Sales Tax Act, 1994, 
(ii) any of the Acts referred to in sub-section (1) of section 
106 of the West Bengal Sales Tax Act, 1994, or 
(iii) the Central Sales Tax Act, 1956, 
and includes the rules made, or notification issued, under the 
Act referred to in sub-clause (i), sub-clause (ii) or sub-
clause (iii). 
(2) Unless there is anything repugnant in the subject or context, all 
expressions used in this Act, which are not defined, but defined in the 
relevant Act, or used in the relevant Act, shall have the same meaning as 
in the relevant Act. 
West Ben. 
Act XLIX of 
1994. 
74 of 1956. 
94 
The West Bengal Sales Tax (Settlement of Dispute) Act, 1999. 
IV of 1999.] 
(Sections 3-6.) 
3. For carrying out the purposes of this Act, the State Government 
may, by notification published in the Official Gazette, appoint one or 
more authorities referred to in section 3, section 4 or section 5 of the West 
Bengal Sales Tax Act, 1994, to be the designated authority, and such 
authority shall exercise jurisdiction over such area or areas as the State 
Government may specify in the notification. 
4. (1) Subject to the other provisions of this Act, an applicant shall 
be eligible to make an application for settlement of arrear tax, 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 day of December, 1998, before any appellate 
authority or revisional authority, as the case may be. 
(2) Notwithstanding anything contained in sub-section (1), an applicant 
shall not be eligible to make an application for settlement of arrear tax, 
penalty or interest in respect of any period under the relevant Act for which 
the appeal or revision has been finally heard by the appellate authority or 
the revisional authority, as the case may be. 
Explanation.—For the purposes of this sub-section, no appeal or 
revision shall be deemed to have been heard only by reason of any stay 
order having been passed by any appellate or revisional authority in 
connection with such appeal or revision. 
5. (1) An application for the purpose of section 4 shall be made to the 
designated authority by an applicant in such form, and in such manner, as 
may be prescribed, on or before the 30th day of September, 1999, or by 
such later date as the State Government may, by notification in the Official 
Gazette, specify from time to time. 
(2) A separate application shall be made by an applicant for different 
periods under each of the relevant Acts. 
(3) The applicant shall send a copy of the application made under sub-
section (1) to the appellate authority or the revisional authority before 
whom the appeal or revision, as the case may be, is pending, within seven 
days from the_ date of making such application before the designated 
authority. 
6. (1) The designated authority shall, ordinarily within sixty days 
from the date of receipt of an application referred to in section 5, verify the 
correctness of the particulars furnished in such application with reference 
to the connected records available with the assessing authority, appellate 
authority or any other authority with whom such records may be available, 
as the case may be. 
Designated 
authority. 
Eligibility 
for 
settlement. 
Application 
by the 
applicant. 
Determina-
tion of 
amount 
payable by 
the 
applicant. 
95 
The West Bengal Sales Tax (Settlement of Dispute) Act, 1999. 
[West Ben. Act 
Rate 
applicable in 
determining 
the amount 
payable. 
(Section 7.) 
(2) Where the designated authority is satisfied about the correctness 
of the particulars set forth in the application made by an applicant, he shall 
determine, by an order in writing, the amount payable by the applicant for 
the purpose of settlement of arrear tax, penalty or interest in dispute at the 
rate specified in section 7: 
Provided that while determining the amount payable by the applicant 
for the purpose of settlement of arrear tax, penalty or interest, the 
designated authority shall take into account any amount of arrear tax, 
penalty or interest in dispute, paid by the applicant before making an 
application under section 5 and deduct the amount so paid by him from the 
amount determined as payable by the applicant under this sub-section: 
Provided further that the amount payable by an applicant as determined 
under this sub-section shall be rounded off to the nearest rupee and, for this 
purpose, where such amount contains a part of a rupee, then, 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. 
(3) After the amount payable by an applicant is determined under sub-
section (2), the designated authority shall, subject to such conditions and 
restrictions (including payment by instalments) as may be prescribed, 
require the applicant, by a notice in such form as may be prescribed, to pay 
the amount so determined under sub-section (2) within thirty days from the 
date of receipt of such notice by the applicant or within such further time 
as may be prescribed: 
Provided that no notice shall be issued by the designated authority 
where the application made by an applicant relates only to an arrear penalty 
in dispute. 
(4) The amount required to be paid in terms of the notice issued under 
sub-section (3) shall be paid into the Reserve Bank of India or any 
appropriate Government Treasury in such manner as is specified in the 
relevant Act. 
(5) A copy of duly receipted challan showing payment of the amount 
specified in the notice issued under sub-section (3) shall be furnished to the 
designated authority by the applicant within fifteen days, or within such 
further time as the designated authority may allow, of making payment in -
accordance with the provisions of sub-section (4). 
7. (1) The amount payable by an applicant for settlement of dispute 
under this Act shall be determined under sub-section (2) of section 6— 
(a) where the dispute relates to any arrear tax in dispute, at the 
rate of thirty-three per centum of the arrear tax in dispute; or 
96 
The West Bengal Sales Tax (Settlement of Dispute) Act, 1999. 
IV of 1999.] 
(Sections 8-10.) 
(b) where the dispute relates to any arrear interest in dispute, at 
the rate of five per centum of the arrear tax in dispute for the 
period to which such interest relates, or the amount of the 
arrear interest in dispute, whichever is less. 
(2) The arrear penalty in dispute shall be waived. 
8. (1) The designated authority, on being satisfied about the 
payment of the amount which the applicant is required to pay by virtue of 
the notice under sub-section (3) of section 6, shall settle the dispute in 
respect of which an application has been made under sub-section (1) of 
section 5 and issue a certificate of settlement for such dispute, in such form 
as may be prescribed, to the applicant, ordinarily within thirty days of 
receipt of the copy of duly receipted challan in support of payment 
made by the applicant and thereupon, such applicant shall be discharged 
from his liability to make payment of the balance amount of such arrear 
tax, penalty or interest in dispute: 
Provided that where no payment is required to be made by an applicant 
and no notice is issued to him under the proviso to sub-section (3) of section 
6, the designated authority shall settle the dispute and issue a certificate of 
settlement for such dispute to such applicant: 
Provided further that a certificate of settlement shall be issued by the 
designated authority separately in respect of every application made under 
section 5. 
(2) The designated authority, for reasons to be recorded in writing, 
may refuse to settle a dispute, or rectify or amend a certificate of settlement 
issued under sub-section (1): 
Provided that no order adversely affecting the applicant shall be passed 
without allowing the applicant a reasonable opportunity of being heard. 
9. A certificate of settlement issued under sub-section (1) of section 
8 shall be conclusive as to the dispute to which it relates, and no matter 
covered by such certificate of settlement shall be re-opened in any 
proceeding of review or revision, or in any other proceeding, under the 
relevant Act. 
10. Notwithstanding anything to the contrary contained in any provision 
in the relevant Act, the appeal or revision for any period pending before 
the appellate or the revisional authority, as the case may be, in respect of 
which a certificate of settlement is issued under sub-section (1) of section 
8, shall be deemed to have been withdrawn by the applicant from the date 
of making of the application by the applicant under sub-section (1) of 
section 5. 
Settlement 
of dispute 
and issue of 
certificate of 
settlement. 
Bar on re-
opening of 
settled cases. 
Withdrawal 
of appeal 
and revision. 
97 
The West Bengal Sales Tax (Settlement of Dispute) Act, 1999. 
[West Ben. Act 
(Sections 11-14.) 
Appellate 
and 
revisional 
authority not 
to proceed in 
certain 
cases. 
Revocation 
of certificate 
of 
settlement. 
11. No appellate authority or revisional authority shall proceed to 
decide any appeal or revision under the relevant Act relating to any period 
in respect of which an application has been made by an applicant under 
section 5: 
Provided that such authority shall proceed to decide such appeal or 
revision for such period in accordance with the provisions of the relevant 
Act, if a certificate of settlement referred to in sub-section (1) of section 8 
is refused to the applicant by an order passed by the designated authority 
in writing under sub-section (2) of section 8. 
12. (1) Notwithstanding anything contained in section 9 or section10, 
where it appears to the designated authority that an applicant 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 designated authority may, for reasons to 
be recorded in writing and after giving the applicant a reasonable opportunity 
of being heard, revoke the cetificate of settlement issued under sub-section 
(1) of section 8. 
(2) If a certificate of settlement is revoked under sub-section (1), the 
appeal or revision, as the case may be, under the relevant Act, covered by 
such certificate of settlement, shall, notwithstanding the provision of 
section 9 or section 10, stand revived or reinstated immediately upon such 
revocation, and such appeal orrevision shall be decided in accordance with 
the provisions of the relevant Act, as if no settleinent of the arrear tax, 
penalty or interest in dispute in such appeal or revision has ever been made 
under this Act. 
Information 
to be sent to 
the 
authorities 
under the 
relevant Act. 
No refund of 
amount paid 
under the 
Act. 
13. The designated authority shall keep the assessing authority, the 
appellate authority or the revisional authority, who, for the time being, 
has jurisdiction over the applicant under the relevant Act, informed, 
inter alia, of— 
(a) making of an application by an applicant under section 5; 
(b) passing of any order by the designated authority under 
section 8; or 
(c) revocation of any certificate of setlement under section 12, 
in such form and manner, and within such time, as may be prescribed. 
14. Any amount paid by an applicant under section 6 shall not be 
refundable under any circumstances: 
98 
The West Bengal Sales Tax (Settlement of Dispute) Act, 1999. 
IV of 1999.] 
(Sections 15, 16.) 
Provided that in the case of revocation of a certificate of settlement in 
accordance with section 12, the amount paid by the applicant under section 
6 shall be treated to have been paid under the relevant Act for the period 
for which the certificate of settlement has been revoked. 
15. The State Government may, by notification published in the 
Offcial Gazette, make rules, with prospective or retrospective effect, for 
carrying out the purposes of this Act, and such rules may provide for all or 
any of the matters which, under any provision of this Act, is required to be 
prescribed or to be provided by rules. 
16. If any difficulty arises in giving effect to any of the provisions of 
this Act, the State Government may, by order, not inconsistent with the 
provisions of this Act, remove the difficulty: 
Provided that no such order shall be made after the expiry of two years 
from the date of coming into force of this Act. 
Power of the 
State 
Government 
to make 
rules. 
Power to 
remove 
difficulties. 
    
99 

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