Chapter II Chapter II

(1) Where the dispute relates to proceedings up to the financial year 2004-05, the settlement amount shall be as per the rate mentioned in column 3 against the cases mentioned in column 2 of Table-I, and where the dispute relates to proceedings from the financial year 2005-06 to the financial year 2011-12, the settlement amount shall be as per the following Table-II. [Table I and Table II omitted for brevity in schema representation]. Explanation I: The settlement amount shall not include the payment of accepted tax and the party shall deposit the entire amount of accepted tax. Explanation II: If a party desirous of settlement of dispute has already paid an amount equal to or more than the settlement amount in respect of the disputed amount before the commencement of this settlement scheme, the said amount shall be treated as the settlement amount, but the amount deposited in excess of the settlement amount shall not be refunded. Explanation III: If a party desirous of settlement of dispute has deposited any disputed amount before the commencement of this settlement scheme, the said amount shall be treated as payment of the settlement amount and the party shall have to pay only the difference amount. (2) Notwithstanding anything contained in any law for the time being in force, but subject to other provisions of this Act, any such dispute shall be deemed to have been settled, in respect of which the amount specified under sub-section (1) has been deposited in the Government Treasury in the manner and within the time specified in this Act, and it shall not be kept pending before any appellate authority.

(1) Any party wishing to settle a dispute shall furnish to the prescribed authority, an application in form SET-I, before fifteen days of the expiry of the Act. (2) Seperate application for settlement of dispute in form SET-I, shall be furnished for every dispute before the prescribed authority along with - (a) bearing adhesive court-fee stamp for one hundred rupees and shall be accompanied by notice of demand issued by an authority appointed or prescribed or authorized under the law and an affidavit by the party to the effect that the facts contained therein are true and correct, (b) Accompanied by copies of returns/annual return and proof of tax payment (Copies of challan along with treasury certificate) in support of payment of admitted tax; Provided that if dispute is not related with assessed tax but related with imposition of penalty or interest only; copies of returns/annual return shall not be required to enclose. (c) accompanied by a certified copy of the application for appeal, in the case of a appeal petition pending before the Joint Commissioner Commercial Taxes (Appeal) or Deputy Commissioner Commercial Taxes (Appeal), (d) accompanied by a certified copy of the application for revision, in the case of a revision petition pending before Commissioner Commercial Taxes, (e) accompanied by a certified copy of the application for revision, in the case of a revision petition pending before the Tribunal, (f) accompanied by a certified copy of the reference or Writ Petition or Special Leave Petition, in the case of a reference or Writ Petition or Special Leave pending before the High Court or the Supreme Court, as the case may be, (g) accompanied by a certified copy of assessment order/imposition of interest and penalty order/scruitny order. (h) applicant shall compulsorily mention his e-mail ID and telephone number on prescribed place of SET-I (i) accompanied by copies of challans along with treasury certificate if a party wishing to settle a dispute, has deposited any amount of dispute before the commencement of this settlement seheme. (3) The said application will be signed and verified in the manner provided in the form by the proprietor of the business; or, in the case of a firm, by the partner authorized to act on behalf of the firm; or, in the case of business of an undivided Hindu family, by the Karta of the family; or, in the case of a company incorporated under the Companies Act, 1956 (Act 1 of 1956) or a corporation constituted under any law, by the managing director or principal executive officer thereof; or, in the case of a society, club or association of persons or body of individual or a department of Government or local authority, by the principal executive officer, or officer in charge thereof; or, by the declared manager in all cases: (4) The office of the prescribed authority shall grant a receipt in form SET-II to the party making an application under sub-section (1) as token of receipt of the said application.

(1) Unless the application is in accordance with the period and requirements described in section 4, no application shall be considered by the prescribed authority. (2) Within seven days of receipt of the application, the prescribed authority shall reject the incomplete and inaccurate application by a written order in Form Set-III, a copy of which shall be forwarded to the party. Provided that the above rejection shall not deprive the party from filing a new application. (3) The prescribed authority shall examine the quantum of disputed amount and settlement amount provided by the party in application form Set-I and within seven days of such examination shall inform the party in writing in Form Set-IV to deposit the settlement amount in the government treasury and to provide a copy of the challan as evidence of payment in the manner and time specified in clause (d) of sub-section (4). Provided that if no such information is sent to the party within fifteen days of receipt of the application as the case may be, then the calculation of disputed-amount and settlement-amount and the application for settlement shall be deemed to be accepted and the party shall proceed to deposit such settlement amount within the time and manner specified in clause (d) of sub-section (4). (4)(d) On receipt of the information under sub-section (3), the party shall deposit the settlement amount specified in section 3 in the government treasury in the manner provided in rule-27 of the Bihar Value Added Tax Rules, 2005. It shall be mandatory to make payment of the settlement amount within the effective period of the Act. (b) The party shall file an application for withdrawal of the dispute before the appropriate court or authority within seven days of the deposit of the said entire settlement-amount. Explanation.—For the purposes of this clause "appropriate court or authority" means— (i) In case of appeal, Joint Commissioner of Commercial Taxes (Appeals) or Deputy Commissioner of Commercial Taxes (Appeals); (ii) In case of miscellaneous revision pending before Joint Commissioner of Commercial Taxes (Administration), Joint Commissioner of Commercial Taxes (Administration); (iii) In case of revision application pending before Commissioner of Commercial Taxes, Commissioner of Commercial Taxes; (iv) In case of revision application pending before the Tribunal, the Tribunal; (v) In case of reference or writ petition, the High Court; and (vi) In case of Special Leave Petition, the Supreme Court of India. (5) The prescribed authority shall, within seven days of the deposit of the entire settlement amount according to clause (d) of sub-section (4) and filing of necessary withdrawal application according to clause (b) of sub-section (4), pass an order of settlement of dispute in Form Set V. Provided that if the party fails to present the evidence of payment of the specified settlement amount and evidence of the aforementioned dispute withdrawal application before the prescribed authority before the expiry of this Act, then the prescribed authority shall give an opportunity for hearing in Form Set-VI and shall cancel the settlement application of the party in Set-VII if sufficient reason is not received. (6) On passing of the dispute settlement order under sub-section (5), in the following cases— (i) Revision order pending before the Tribunal or (ii) Reference or (iii) Writ petition or (iv) Special Leave Petition, it shall be deemed that such revision, reference, writ petition or special leave petition has been dismissed as withdrawn and notwithstanding anything contrary in any order or judgment of any court or tribunal, it shall be deemed that such revision, reference, writ petition or special leave petition was never filed by the party. (7) On passing of the settlement order under sub-section (5), the prescribed authority— (d) In case of settlement of an appeal or revision dispute, excluding revision pending before the Tribunal, shall record an order to this effect in the relevant proceedings with full details of such settlement that in view of the dispute having been settled, there is no need to continue these proceedings. (b) In case of settlement of a dispute, excluding the disputes specified in clause (d) of this sub-section or cases pending before any High Court or Supreme Court, shall send a true copy of the settlement order within seven days to the concerned authority where such dispute is pending, and upon receipt of said order, the concerned authority shall record an order to this effect in the relevant proceedings with full details of such settlement that in view of the dispute having been settled, there is no need to continue these proceedings. Explanation.—For the purposes of this sub-section "relevant proceedings" means proceedings of appeal, revision, review, reference, writ petition or Special Leave Petition arising from any order passed under the law and this shall include proceedings initiated by and pending before appointed or prescribed or authorized authority under any law or Bihar and Orissa Public Demands Recovery Act, 1914 for recovery of tax, interest or penalty.