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TMI Blog2022 (1) TMI 1011X X X X Extracts X X X X X X X X Extracts X X X X ..... essment order dated 28.04.2021. It is also significant to note that the material on record also indicates that the petitioner is not charged with any arrears of tax, which was liable to be paid on or before 31.10.2021 so as to attract Clause No.5.1 of the Scheme; on the other hand, in view of the undisputed fact that the petitioner did not have any arrears of tax but only arrears of penalty relating to reassessment, which was already completed on 28.04.2021, much before the cut off date dated 31.07.2021, the petitioner would clearly be entitled to the benefit of waiver of 100% penalty - the impugned endorsement passed by respondent No.2 is illegal, arbitrary and contrary to the letter and spirit of the scheme and the same deserves to be quashed and necessary directions are to be issued to the respondents to grant waiver of 100% of penalty demanded in the reassessment order dated 28.04.2021 passed by respondent No.2. Petition allowed - decided in favor of petitioner. - WRIT PETITION No.18168 OF 2021 (T-RES) - - - Dated:- 22-12-2021 - THE HON'BLE MR.JUSTICE S.R.KRISHNA KUMAR PETITIONER: SRI. VIKRAM HUILGOL, SENIOR COUNSEL AND SRI. SANDEEP HUILGOL, ADVOCATE RE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Statement of Objections and referring to the documents produced by the respondents would support the impugned endorsement and submit that the respondents had correctly rejected the claim of the petitioner. It is therefore submitted that there is no merit in the petition and that the same is liable to be dismissed. 5. I have given my anxious consideration to the rival submissions and perused the material on record. 6. For the purpose of resolving the issue involved in the present petition, it would be germane to extract the relevant provisions of the Karasamadhana Scheme as hereunder: 1. It grants waiver of 100% of arrears of penalty and interest payable by a dealer under the Karnataka Sales Tax Act, 1957 (hereinafter referred to as the KST Act) and Central Sales Tax Act, 1956 (hereinafter referred to as the CST Act) relating to the assessments/re-assessments/rectification orders already completed and as the case may be, to be completed on or before 31.07.2021 under the KST regime. 2. It grants waiver of 100% of arrears of penalty and interest payable by a dealer under the Karnataka Value Added Tax Act, 2003 (hereinafter referred to as the KVAT Act) and CST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... four different, distinct, separate, independent and stand alone categories, which are mutually exclusive and independent of each other; the waiver contemplated in each of the four categories is independent and distinct from one another/each other and there is no overlapping among any of the categories, which contemplate completely different and separate situations and in relation to the enactments mentioned in the said clauses; a plain and literal reading of the said provisions is sufficient to show that applicability of any one of the clauses would necessarily exclude applicability of the other three clauses, which would have not application in a situation where one of the clauses is applicable in a given fact situation. 8. (8.1) Clause No.1 deals with waiver of 100% of arrears of penalty and interest under the Karnataka Sales Tax Act and Central Sales Tax Act relating to assessments/re-assessments/rectification orders already completed prior to 29.03.2021 (when the scheme came into force) and to be completed on or before 31.07.2021. (8.2) Clause No.2 grants waiver of 100% of arrears of penalty and interest payable under the KVAT Act and CST Act relating to assessments/re-as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest under various enactments viz., Karnataka Sale Tax Act, KVAT Act etc., shall be waived in relation to assessments/ reassessments/rectification orders already completed as on 29.03.2021 (when the scheme came into force) or to be completed on or before 31.07.2021, which is the cut off date for applicability of Clauses 1, 2 and 4 of the scheme. c) Clause No.3 stipulates that penalty levied under Sections 72(1)(a), 72(1)(b), 74(4) and 72(3-B) of the KVAT Act would also be waived for default committed by a person on account of non- compliance as provided in the said provisions; this waiver of penalty for breach/default of the aforesaid specific provisions of the KVAT Act is clearly in addition to the waiver granted of arrears of penalty and interest payable by a dealer under the KVAT Act as contemplated in Clause No.2 of the said Scheme; to put it differently, in addition to the 100% waiver of arrears of penalty and interest under the KVAT Act as provided under Clause No.2 of the Scheme, Clause No.3 also permits/grants waiver of specific and distinct penalties levied under the provisions of the KVAT Act enumerated in the said clause No.3, which forms a completely distinct, sep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... note that the material on record also indicates that the petitioner is not charged with any arrears of tax, which was liable to be paid on or before 31.10.2021 so as to attract Clause No.5.1 of the Scheme; on the other hand, in view of the undisputed fact that the petitioner did not have any arrears of tax but only arrears of penalty relating to reassessment, which was already completed on 28.04.2021, much before the cut off date dated 31.07.2021, the petitioner would clearly be entitled to the benefit of waiver of 100% penalty and consequently, the impugned endorsement passed by respondent No.2 is illegal, arbitrary and contrary to the letter and spirit of the scheme and the same deserves to be quashed and necessary directions are to be issued to the respondents to grant waiver of 100% of penalty demanded in the reassessment order dated 28.04.2021 passed by respondent No.2. 12. In so far as the contention urged by the respondents that waiver of penalty levied upon the petitioner under Section 70(2) in the reassessment order dated 28.04.2021 does not come within the scope and ambit of the scheme since Section 70(2) does not find a place in Clause No.3 of the scheme is concerned, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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