The Kerala High Court allowed the settlement of tax liability under Kerala Value Added Tax (KVAT) on depositing amounts under the amnesty scheme.
Lijo Jose, the petitioner prayed for a direction to the respondents to accept the balance amount of Rs.62,640/- short paid under the Amnesty Scheme. The petitioner, an assessee under the provisions of the Kerala Value Added Tax Act was engaged in the business of distilled water and ice creams till August 2022. The petitioner’s tax liability for the financial year 2015-16 and 2016-17 were assessed at Rs.7,47,047/- with interest.
The petitioner opted for the Amnesty Scheme by withdrawing all his appeals against the said orders. The said Amnesty Scheme was promulgated by the 1st respondent by Circular No.3/2021 dated 05.04.2021. Under the said Amnesty Scheme, the petitioner was permitted to settle the entire liability for Rs.3,05,000/-. The said liability under the Amnesty Scheme of Rs.3,05,000/- was to be discharged in six instalments as per Circular.
The petitioner would have discharged the said liability in six equal instalments as per the assessment order. However, the petitioner had not discharged the entire liability and he could pay only Rs.2,64,342/- and thus an amount of Rs.62,640/- is remaining outstanding. The authority therefore stated that the petitioner did not comply with the order passed under the Amnesty Scheme.
It was submitted that the petitioner is ready to deposit not only the balance amount of Rs.62,640/-, but also penal interest for the said outstanding amount.
Considering the said submissions, the single bench of Justice Dinesh Kumar Singh directed the petitioner to deposit Rs.1,25,000/- on or before 06.11.2023. If the petitioner deposits Rs.1,25,000/- on or before 06.11.2023, the petitioner would be deemed to have discharged the tax liability as settled under the Amnesty Scheme and no further demand in respect of the tax liability shall remain to be discharged by the petitioner.
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