In a significant case the Kerala high court while dismissing the review petition observed that the assessee would not be liable to pay interest for delayed filing of the returns and payment of turnover tax @ 5% on their parcel sales authorized by the Government during the Covid lock down period. The decision was favored to assessee Kallada Hotels.
The review petition was filed by the revenue against the Judgment and Order passed by the court. As per the judgement in cases where the return were filed on or before 31.03.2022 and turnover tax was cleared on or before 30.04.2022 by the FL3 lincencees, for the period from 22.05.2020 to 21.12.2020 and from 15.06.2021 to 25.09.2021 for the financial years 2020-21 and 2021-22, they would not be liable to pay interest for delayed filing of the returns and payment of turnover tax @ 5% on their parcel sales authorized by the Government during the Covid lock down period.
According to the counsel for petitioner A. Muhammed Rafiq, the reduction of tax from 10% to 5% was not limited only in respect of the sale affected by the Bar attached Hotels during the Covid lock down period but, the exemption was granted for the period from 2014-15 to 2015-16 as per the Cabinet Note placed on record as Annexure (A) by which the decision was taken to amendment Section 7A of the Kerala General Sales Tax Act, 1963.
Further the exemption from payment of tax up to 5% by the Bar attached Hotels on their parcel sales, would not mean that they were not required to pay the tax @ 10%, but they could have claimed refund of the 5% tax and, therefore, they were liable to pay the interest on delayed payment of turnover tax.
Mr. K. I. Mayankutty Mather, Counsel appearing for the respondents submits that the “Annexure (A) document placed on record i.e. the note put up before the Cabinet for consideration regarding the reduction of turnover tax for the period during lock down from 22.05.2020 to 21.12.2020 and from 15.06.2021 to 25.09.2021 is specific that the Bar attached Hotels and shops were required to pay 5% of the turnover tax as is applicable in respect of the retail outlets run by the Beverages Corporation.”
After considering the both submissions the single bench judge of Dinesh Kumar Singh held that Review does not mean rehearing or appeal. There has to be finality to a litigation. Thus based on the submissions, documents and evidence, the Judgment sought to be reviewed.
Hence the bench concluded that no error was apparent on the face of the record which warrants this Court to reconsider this Judgment under review.
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