The Kerala High Court in a recent judgement dismissed the review petition filed by the revenue department against the hotel owners in relation to sales tax exemption on bar-attached hotels and shops. The Court viewed that review jurisdiction is to be exercised in a very limited manner where there is an error apparent on the face of the record which was not present in the case.
Mr. A. Muhammed Rafiq, Special Government Pleader for the review petitioners and the Counsel appearing for the respondents. The review petitions have been filed seeking review of the Judgment and Order passed in the batch of writ petitions.
The Court after hearing the Counsel appearing for the parties, vide the Final Judgment and Order under review, held that in cases where the return was filed on or before 31.03.2022 and turnover tax was cleared on or before 30.04.2022 by the FL3 licensees, 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 authorised by the Government during the Covid lock down period.
The review petitioner held that there has occurred an error apparent on the face of the record which occasioned the review petitioners to seek a review of the Judgment and Order dated 30.11.2023 passed by this Court. He further submitted that 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 lockdown 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 amend Section 7A of the Kerala General Sales Tax Act, 1963.
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 a refund of the 5% tax and, therefore, they were liable to pay the interest on delayed payment of turnover tax. He further submitted that the proposal to reduce the tax from 10% to 5% in the cabinet decision has to be considered in that respect.
Once the notification was issued, the respondents herein remitted the tax, as per the time extended for filing the return and remittance of tax. This Court has considered every aspect of the matter, the submissions and documents placed on record. Review jurisdiction is to be exercised in a very limited manner where there is an error apparent on the face of the record.
The single bench of Justice Dinesh Kumar Singh found no error apparent on the face of the record which warrants the Court to reconsider the Judgment under review. There is no substance in these review petitions and the same are hereby dismissed.
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