Denial of benefit under Vera Samadhan Yojna unjustified as outstanding amount in intimation erroneously showed higher amount

Planet Automotive Pvt. Ltd. Vs State of Gujarat (Gujarat High Court)

Gujarat High Court held that denial of benefit under Vera Samadhan Yojna-2019 alleging that full payment against the outstanding amount intimated not paid is unjustifiable in law as amount reflected in intimation erroneously showed higher outstanding amount.

Facts- The petitioner is a Private Limited Company and distributor of Hyundai Car. For the period from 01.06.2017 to 30.06.2017, the petitioner paid the total tax of Rs. 32,20,901/- under the Entry Tax Act. It is the case of the petitioner that after filing of the return, it was noticed that there was an error in tax computation which has resulted into short payment of tax.

Respondent No.1-State of Gujarat announced an amnesty Scheme named as ”Vera Samadhan Yojana-2019” for settlement of the disputes under different tax laws including the Entry Tax Act. As per the amended Scheme, on payment of principal tax amount, waiver of interest and penalty was admissible. The petitioner was accordingly entitled to credit of tax already paid prior to the Scheme. The said Scheme was extended from time-to-time and ultimately, expired on 31.08.2021.

The petitioner availed the benefit of the Scheme and filed an application for the period from 01.06.2017 to 30.06.2017 stating that the total tax liability for the month was Rs. 1,80,75,735/- and the petitioner paid amount of Rs. 32,20,901/-towards tax. The petitioner has also submitted the challans showing the payment of tax.

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