Case Law Details
State of Kerala Vs Sreevalsam Residency (Kerala High Court)
The Kerala High Court recently dismissed a review petition related to sales tax exemption for Bar Attached Hotels and Shops. The court’s judgment, dated 30.11.2023, had addressed issues concerning turnover tax during the Covid lockdown period. This article provides an in-depth analysis of the review petition, the court’s initial decision, and the arguments presented by both parties.
The review petition sought reconsideration of the judgment dated 30.11.2023 in W.P.(C) No. 32408 of 2023 and connected matters. The court had earlier ruled that Bar Attached Hotels with FL3 licenses, filing returns by 31.03.2022, and clearing turnover tax by 30.04.2022, for the periods from 22.05.2020 to 21.12.2020 and 15.06.2021 to 25.09.2021, would not be liable to pay interest on delayed filing.
The Special Government Pleader argued that an error apparent on the face of the record necessitated a review. It was contended that the reduction of tax from 10% to 5% applied beyond the Covid lockdown period, and taxpayers could have claimed a refund of the 5% tax, making them liable for interest on delayed tax payment.
The respondents, however, emphasized the specificity of the Cabinet Note and subsequent decision, asserting that Bar Attached Hotels and Shops were required to pay 5% of the turnover tax during the specified Covid lockdown periods.
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