2019 (10) TMI 154 - HC - VAT and Sales Tax

Adjustment of amounts paid under the earlier Amnesty Scheme - amounts payable under the Amnesty Scheme of 2019 - prayer of the petitioners therefore is that the amounts paid by them under the erstwhile Scheme be treated as payments under the 2019 Scheme, so that the amounts paid by them will be given credit under tax as per the present Scheme - HELD THAT - From a perusal of the Amnesty Scheme for settlement of arrears introduced by the Kerala Finance Bill, 2019 and as clarified by Circular No.3/2019 dated 1.4.2019 of the Commissioner of State Goods and Services Tax Department, Government of Kerala, that the 2019 Scheme clearly contemplates that the assessees, who have opted for Amnesty Scheme earlier, but could not settle the arrears, can opt for the benefit under the 2019 Scheme. It is made clear that amounts if any paid during the earlier Schemes will be given credit under tax as per the 2019 Scheme. In the light of the clear provisions in the 2019 Scheme, whereby, amounts paid during the earlier Schemes will be given credit under tax as per the 2019 Scheme, the petitioners are permitted to withdraw these writ petitions, without prejudice to their right to move under the 2019 Amnesty Scheme, for settlement of the arrears of tax. Petition dismissed as withdrawn.

Summary

Issues: Adjustment of amounts paid under earlier Amnesty Scheme towards the amounts payable under the Amnesty Scheme of 2019.

The judgment addresses the issue of adjustment of amounts paid under an earlier Amnesty Scheme towards the amounts payable under the Amnesty Scheme of 2019. The petitioners had paid substantial amounts under the erstwhile Scheme, but the Department adjusted the amounts towards interest liability first, leaving nothing for adjustment towards tax dues. The petitioners sought to treat the amounts paid under the earlier Scheme as payments under the 2019 Scheme to receive credit under the current Scheme.

The court examined the provisions of the 2019 Amnesty Scheme introduced by the Kerala Finance Bill, 2019, along with the clarifications provided by the Commissioner of State Goods and Services Tax Department. The 2019 Scheme allows assessees who opted for the Amnesty Scheme earlier but could not settle arrears to opt for benefits under the 2019 Scheme. It explicitly states that amounts paid during earlier Schemes will be given credit under tax as per the 2019 Scheme, except for amounts paid towards penalty or its interest, which will not be credited towards tax.

Based on the clear provisions of the 2019 Scheme, the court permitted the petitioners to withdraw their writ petitions without prejudice to their right to move under the 2019 Amnesty Scheme for settling tax arrears. The Assessing Officer was directed to consider the clarification provided in the judgment when evaluating the petitioners' applications for Amnesty benefits under the 2019 Scheme. Ultimately, the writ petitions were dismissed as withdrawn.