Uttar Pradesh VAT Rules

Settlement Commission

Constitution of the Settlement Commission

1. There shall be a Settlement Commission consisting of a Chairman and such number of other Judicial and Accounts members not less than two in each category as may be determined by the State Government.

   Explanation: For the purpose of Settlement Commission, a person who has been a Judge of a High Court or a member of Uttar Pradesh Higher Judicial Service shall be deemed a judicial member and person who has been member of any other service shall be deemed an accounts member.

2. The Commission shall be located at the State headquarter but the Commission for discharge of its functions, may, at its option, hold its camp at any public place anywhere inside the State.
3. A person shall not be qualified for appointment as Chairman, unless he -
   • has been a judge of a High Court, or
   • has, for at least one year, held the post of the President of Tribunal under this Act or the Uttar Pradesh Trade Tax Act, 1948; or
   • has been a member of the Indian administrative Service who has held the post of a Secretary to the State Government or any other post under the State Government equivalent thereto, and has adequate experience in taxation matters.
4. A person shall not be qualified for appointment as member unless he,
   • has for at least two years, held the post of Member Tribunal under this Act or under the Uttar Pradesh Trade Tax Act 1948 ; and
   • he is or has been a member of U.P. Higher Judicial Service or a member of Uttar Pradesh Trade Tax Service, as the case may be.
5. The chairman and every other Member shall be appointed by the State Government but the judicial member shall be appointed after consultation with the Chief Justice for which proposal will be initiated by the State Government;

   Provided that the Chairman or member shall not assume the office unless he has resigned or retired from, as the case may be, the Judgeship of the High Court, or the Uttar Pradesh Higher Judicial Service or any other service in which he was serving.

6. The Chairman and member shall hold office as such for a term of three years from the date on which he enters upon his office:

   Provided that no Chairman or other member shall hold office as such after he has attained.

   • in the case of Chairman the age of sixty five years, and
   • in the case of any other Member the age of sixty two years.
7. The Chairman or any other member may by notice in writing under his hand addressed to the Governor resign his office.
8. The Chairman or any other member shall not be removed from his office except by an order made by the Governor on the ground of proved misbehaviour or incapacity after ( an inquiry made by the Chief Justice or such Judge of the High Court as may be nominated by the Chief Justice,) in the prescribed manner, in which such Chairman or other member as the case may be, has been informed of the charges against him and given reasonable opportunity of being heard in respect of those charges.
9. On ceasing to hold office, the Chairman or other member shall not appear, act or plead before any authority under this Act.
10. The salaries and allowances payable to the Chairman and other member and the other conditions of their service shall be such as may be determined by the State Government from time to time.
11. Where the Chairman is unable to discharge his functions owing to absence, illness or any other cause, or where any vacancy occurs in the Office of the Chairman by reason of his death, resignation or otherwise, the President of Tribunal shall discharge the function of the Chairman until the Chairman resumes his duties or as the case may be, a Chairman appointed in accordance with the provisions of this Act assumes charge of his office.

Staff of the Settlement Commission

1. The State Government shall determine the nature and categories of the officers and other employees required to assist the Settlement Commission (hereinafter referred to as the Commission) in the discharge of its functions and provide the Commission with such officers and other employees as it may think fit.
2. The officers and other employees of the Commission shall discharge their function under the general superintendence of the Chairman.
3. The salaries and allowances and conditions of service of the officers and other employees of the Commission shall be such as may be notified by the State Government.

Reference of case to the Settlement Commission

1. Any dealer or other person who has been served with a notice –
   • under sub-section (10) of section 45 and who is suspected to have evaded payment of tax exceeding one lakh rupees or such larger amount of tax as the State Government may by notification in the Gazette specify; or
   • for imposition of penalty either under sub-section (4) of section 48 or under clause (c) or clause (o) of sub-section (1) of section 56 and where the maximum amount of penalty that can be imposed is likely to exceed one lakh rupees,

     may file a petition before the Commission for settlement of amount of tax that may be assessed or amount of penalty that may be imposed or both, as the case may be, within thirty days from the date of receipt of such notice after giving intimation to the authority who has issued such notice.

     Provided that the Commission may, in appropriate cases, accept the application after expiry of period of thirty days but before expiry of period of ninety days where the assessing authority has not passed order of assessment or penalty, as the case may be, in pursuance of such notice.

   • The petition, in the prescribed form and manner along with such other documents as may be prescribed, shall be addressed to the Chairman of the Commission and shall be submitted in the office of the Commission along with satisfactory proof of deposit of fee of five thousand rupees.