Amnesty scheme interpretation allows prior tax payers to claim benefit for covered past transactions.

An amnesty scheme covering past taxable transactions of developers and works contractors from 1 April 2006 was construed to extend to taxpayers who had already paid tax and interest before the scheme commenced. The court read the preamble, operative clauses, and provisions on pending appeals together and held that the requirement to pay during the scheme period did not exclude prior payers, especially where the scheme also denied refund of amounts already paid. A contrary reading would create an irrational distinction between similarly placed taxpayers and offend Article 14. The petitioners were therefore entitled to the scheme's benefit.

---

---

Issues: Whether the petitioners, who had paid tax and interest before the Amnesty Scheme dated 14 October 2014 came into force, were entitled to its benefit for transactions falling within the scheme period.

Analysis: The Scheme was framed to cover taxable transactions of developers and works contractors from 1 April 2006 onwards, in light of the legal position clarified by the Supreme Court. Its preamble and operative clauses showed that the benefit was intended for past transactions and was not confined only to payments made after the notification date. Paragraph 7, read with paragraphs 10 and 13, indicated that payment during the operation of the Scheme was a condition for availing the benefit, but it did not exclude dealers who had already discharged tax and interest earlier. The Scheme also contemplated pending appeals and expressly denied refund where payment had already been made, which reinforced the conclusion that prior payment did not disqualify eligibility. A contrary construction would create an irrational distinction between taxpayers who had paid earlier and those who had not, offending Article 14.

Conclusion: The petitioners were entitled to the benefit of the Amnesty Scheme notwithstanding that tax and interest had been paid before the Scheme came into force.

Ratio Decidendi: An amnesty scheme framed to regularise past taxable transactions must be construed according to its object and text, and a payment-condition clause will not exclude dealers who had already paid tax and interest before the scheme if the scheme otherwise covers past transactions and pending appeals.

---