S. Vijayan Vs Commissioner Of State Goods And Service Taxes Department (Kerala High Court)
Kerala High Court held that adjustment of amount payable under Amnesty Scheme 2020 as against refund amount due to the appellant is permissible. Accordingly, writ allowed and adjustment of amount directed.
Facts- The appellant had filed the Writ Petition challenging Ext.P6 series of revenue recovery notices issued for recovery of amounts allegedly due from the appellant under the Kerala Value Added Tax Act (KVAT Act) and Central Sales Tax Act (CST Act) for various financial years.
The case of the appellant in the Writ Petition was that in respect of the tax dues under the CST Act and KVAT Act for various assessment years, he had opted for settlement in accordance with the Amnesty Scheme 2020. It would appear, however, that the respondent Department did not accede to the request of the appellant, and finding that no payment had been effected by the cut-off date, the respondents treated the appellant as not having opted for the Amnesty Scheme and proceeded to issue the revenue recovery notices that were impugned in the Writ petition.
Conclusion- Held that in the light of the judgment of, Steel Exchange Limited, it was open to the respondents to consider an adjustment of the refund amount due to the appellant towards the amounts due from him by way of settlement under the Amnesty. We do not find the reasons furnished by the respondents for not acceding to the request of the appellant to be legally sustainable. Under the said circumstances, we feel that the ends of justice would be met by adjusting the Amnesty amount of Rs.1,60,465/- from the Rs.5 lakhs that is due to the appellant by way of refund, and utilising the remaining amount for settlement of the dues outstanding from the appellant in the assessment years other than those that were opted for settlement under the 2020 Amnesty Scheme.
