2020 (7) TMI 756 - HC - VAT and Sales Tax

Adjustment of refund amounts due towards the amounts found payable under the Amnesty Scheme - refund under Kerala VAT Act - HELD THAT - Although it is the specific case of the learned Government Pleader that, under the Amnesty Scheme, there is no provision for an adjustment of refund amounts towards amounts found payable by an applicant seeking the benefit of Amnesty Scheme, the adjustment in question does not in any manner offend the Amnesty Scheme or do violence to its language. The department has not preferred any appeal against the said order so as to cast any doubt on the entitlement of the petitioner for the refund amount. In that scenario, when amounts are liable to be paid by the petitioner to the department for the purposes of getting the benefit of the Amnesty Scheme, an adjustment of the refund amounts due to the petitioner towards whatever amount is found payable by the petitioner, would not in any manner offend the terms of the Scheme because it is simply an adjustment towards the payment to be made under the Scheme. Petition allowed.

Summary

Issues:
Refusal to adjust refund amounts under the Amnesty Scheme.

Analysis:
The petitioner approached the court due to the respondents' refusal to adjust refund amounts towards the amounts payable under the Amnesty Scheme. The petitioner claimed entitlement to various refund amounts under the Kerala Value Added Tax Act and opted for the Amnesty Scheme, which required certain payments to the department. The respondents declined to adjust the refund amounts, leading to the petitioner's grievance.

The court considered the arguments of both parties and found that there was no provision in the Amnesty Scheme prohibiting the adjustment of refund amounts towards payments under the scheme. The court noted that the petitioner was undisputedly entitled to refund amounts as per previous orders, with no appeals challenging this entitlement. Therefore, the court concluded that adjusting the refund amounts towards the payments required under the Amnesty Scheme did not violate the scheme's terms. The court allowed the Writ Petition, directing the respondents to appropriate the payable amounts under the Amnesty Scheme from the refund due to the petitioner and release the balance amount promptly.

In conclusion, the court ruled in favor of the petitioner, allowing the adjustment of refund amounts towards the payments under the Amnesty Scheme. The judgment emphasized that such an adjustment was not contrary to the scheme's provisions and was a legitimate way to settle the petitioner's obligations under the scheme.