Kamnath Private Limited Vs State Tax Officer (Gujarat High Court)
The Gujarat High Court heard a writ petition filed under Articles 226 and 227 of the Constitution challenging an order dated 7 October 2021 by the Sales Tax Officer, Ghatak-2, Rajkot. The order had rejected the petitioner’s application under the “Vera Samadhan Yojna” (Amnesty Scheme) framed under the Gujarat Value Added Tax Act, 2003 on the ground that the last instalment was paid two days late. The petitioner, a company registered under the Act, had applied for the Amnesty Scheme for Assessment Year 2015–16. Under the scheme, it was required to pay ₹12,50,258 as full and final settlement on or before 31 August 2021. The petitioner paid the first five instalments of ₹1,25,025.80 each. Later, the department’s online portal automatically readjusted the instalment amount to ₹1,02,293.84 from the sixth instalment onwards. Due to this unilateral recalculation, there remained a shortfall of ₹34,102 as of the deadline.
The petitioner stated that it attempted to pay the shortfall amount between 29 August and 31 August 2021 through the department’s online E-payment or E-services options. However, the portal indicated that payments through the available options would not be reconciled with the Amnesty Scheme. The petitioner also produced screenshots demonstrating technical issues on the online portal. Due to the inability to make the payment electronically, the petitioner approached the respondent tax officer seeking assistance, but no workable solution was provided. Eventually, the petitioner paid ₹40,500 on 2 September 2021, two days after the deadline, and immediately informed the authorities. It also requested acceptance of this late payment and favourable consideration under the scheme. However, the respondent rejected the application on 7 October 2021 solely on the ground of a two-day delay. The respondent also froze the petitioner’s bank account and created a lien on the outstanding VAT dues. The rejection order dated 26 July 2022 became the subject matter of the writ petition.
