2023 (10) TMI 1147 - HC - VAT and Sales Tax

Review petition - Jurisdiction of Section 41(7)(b) of the KGST Act - re-visiting an issue settled by the Amnesty Order - HELD THAT - The golden rule of interpretation means that the words of a Statute must prima facie be given their literal and natural meaning and that the language of the Section is read as it is. Applying the said interpretative tool, Sub-section (7) of Section 23B means that (a) the amount settled under Section 23B has been a subject matter of appeal or revision; (b) such appeal and revision may be continued and if the final orders of such appeal or revision results in the reduction of tax payable under this Act; (c) so the tax received more than legally payable will be refunded. In the case of the State, if the appeal or revision is allowed, the excess amount to be collected from the dealer is collected. The sine qua non for operating the last two stages referred to above is that the amount settled has been a subject matter of appeal or revision. The protection under Section 23B(7) cannot be logically extended to appeal and revision filed ex-post to the Amnesty order. For the above view, it is sufficiently clear that the precedents on which the dealer relied are distinguishable, both in law and fact. Thus, no ground is made out warranting interference with the judgment - review dismissed.

Summary

Issues:
The judgment involves the interpretation of Section 23B(7) of the Kerala General Sales Tax Act 1963 in relation to a tax dispute settlement under an Amnesty scheme introduced by the Kerala Finance Act 2008. The key issue is whether a dealer can re-agitate disputes settled under the Amnesty scheme.

Issue 1: Settlement under Amnesty Scheme
The dealer filed an appeal challenging the tax determination by the Commercial Tax Officer, which was modified by the First Appellate Authority and further allowed by the Tribunal. The High Court held that once the dealer opted for settlement under the Amnesty scheme, re-visiting settled issues is not permissible. The Tribunal and the First Appellate Authority's orders were set aside based on this interpretation.

Issue 2: Interpretation of Section 23B(7)
Advocate Johnson Gomez argued that Section 23B(7) should be interpreted independently to allow the continuation of proceedings initiated by the dealer, even after opting for the Amnesty scheme. He relied on precedents to support his contention that the provision does not bar the dealer from pursuing further appeals or revisions.

Issue 3: Counter-Argument by Special Government Pleader
Special Government Pleader Mohammed Rafiq contended that the circumstances of the case do not warrant a reinterpretation of Section 23B(7). He emphasized that the dealer's application and subsequent appeal were not pending regarding the subject matter settled under the Amnesty Scheme, thus precluding the continuation of litigation. Rafiq argued against the dealer's interpretation, citing the literal meaning of the provision and the necessity for the settled amount to be the subject of appeal or revision.

Judgment:
The High Court reviewed the contentions and principles related to the jurisdiction of reviewing orders. While acknowledging the moot question under Section 41(7)(b) of the KGST Act, the Court examined the interpretation of Section 23B(7) in detail. The Court applied the golden rule of interpretation, emphasizing the literal and natural meaning of the statute. It concluded that the protection under Section 23B(7) does not extend to appeals or revisions filed post the Amnesty order settlement. The Court found no grounds for interference with its previous judgment and dismissed the review petitions.