Kannur Building Materials Vs State of Kerala (Kerala High Court)
The Kerala High Court has instructed the state government to review requests submitted by Kannur Building Materials, a cooperative society involved in supplying construction materials and selling river sand, concerning outstanding Value Added Tax (VAT) payments from the fiscal years 2006-2007 and 2008-2009. The petitioner sought government intervention based on a prior report suggesting sympathetic consideration for their situation, as VAT registration was not consistently enforced during that period. The society contended that while they paid taxes as initially demanded, subsequent VAT assessments for those years created an unexpected financial burden. The government, in its response, highlighted the availability of past Amnesty Schemes for waiver of penalties and interest, which the petitioner did not utilize, and indicated a new scheme is forthcoming. The court, acknowledging the petitioner’s willingness to apply under the new scheme, directed the government to consider their application in accordance with the law. An existing interim order providing a status quo will remain in effect until a decision is reached, provided the cooperative submits its application within the stipulated timeframe of the upcoming Amnesty Scheme. Failure to do so will result in the interim order being vacated.
