VAT Defaulter Opted for Kerala Amnesty Scheme, 2017 Need Not Pay Collection Charges: Kerala HC [Read Order]

The Kerala High Court has held that since the provisions of Kerala Amnesty Scheme, 2017 has overriding effect over the provisions of the Revenue Recovery Act and therefore, a VAT Defaulter who opted for the Kerala Amnesty Scheme, 2017 need not pay collection charges.

The petitioner, B Madhukumar faced revenue recovery proceedings for recovery of amounts due from the petitioner under provisions of the Kerala Value Added Tax Act. The petitioner approached the Court and obtained interim orders subject to payment of certain amounts. The Government introduced the 2017-Amnesty Scheme and the petitioner applied for settlement of the demands against him under the provisions of the Amnesty scheme. The said application was accepted and the petitioner remitted the entire amounts due under the Amnesty Scheme. The petitioner is aggrieved by the fact that though the petitioner remitted the entire amount under the Amnesty Scheme, there is now a demand raised on the petitioner for payment of collection charges in terms of the Rules.

Allowing the plea of the petitioner, Justice Gopinath P observed that the petitioner is entitled to succeed.

“It is not in dispute before me that the petitioner had settled the liabilities in terms of the provisions contained in the Amnesty Scheme of 2017, which was introduced by the provisions contained in the Kerala Finance Act 2017. The provisions of Section 31A(2) of the Kerala Finance Act, 2017makes it abundantly clear that not with standing anything contained in the Kerala Revenue Recovery Act, the assessee/defaulter will not be liable to pay any collection charges. Section 31A(2) of the Kerala Finance Act of 2017 starts with a non obstante Clause and therefore, it will have an overriding effect over the contrary provision contained in the Revenue Recovery Act or in the Rules framed there under.”

To Read the full text of the Order CLICK HERE

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