Krishna Theeram Ayur Holy Beach Resorts Pvt. Ltd Vs State Tax Officer-II (Kerala High Court)
The Kerala High Court dismissed the writ petition filed by Krishna Theeram Ayur Holy Beach Resorts Pvt. Ltd. challenging the assessment order issued under the Kerala Tax on Luxuries Act, 1976. The court ruled that since the petitioner had an alternative statutory remedy through an appeal, invoking Article 226 of the Constitution was not justified. The case stemmed from an assessment order for the financial year 2016-17, which was originally set aside by the Appellate Authority, directing a fresh assessment. The petitioner failed to produce records as required, leading to a new assessment order, which was then challenged in the writ petition.
The petitioner contended that the fresh assessment order exceeded the scope of the original proceedings and was time-barred. It was also argued that the company had availed benefits under an Amnesty Scheme, paying the assessed tax, and therefore, the assessing authority was not entitled to pass the new order. However, the government pleader countered that the previous assessment order had been completely set aside, granting the assessing officer discretion either to restore it or conduct a fresh assessment. The court observed that the petitioner’s reliance on the Amnesty Scheme was unilateral and did not prevent the department from reassessing the liability.
