Statutory amnesty cannot be curtailed by circular where the enabling provision contains no exclusion for Revenue appeals.

Section 31A of the Kerala VAT Act was read as creating an Amnesty Scheme to settle tax, penalty and interest arrears and end prolonged litigation. The High Court held that the scheme contained no statutory bar against settlement merely because the Revenue had filed an appeal against an assessee-favourable order. A departmental circular could not add a substantive exclusion not found in the Act, especially where no clarification was needed. The offending condition in the circular was therefore struck down, and the assessee's amnesty applications were to be considered without that restriction.

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Issues: Whether the condition in the circular denying amnesty to an assessee where the State had filed an appeal could stand when Section 31A of the Kerala Value Added Tax Act enabled settlement of tax, penalty and interest arrears under the Amnesty Scheme.

Analysis: Section 31A introduced an Amnesty Scheme intended to settle outstanding dues and bring an end to prolonged litigation, benefiting both the assessee and the State. The statutory provision did not create any bar against availing the scheme merely because the Revenue had filed an appeal against an order favourable to the assessee. A departmental circular cannot travel beyond the scope of the statute or add a restriction that the legislature did not enact, especially where the statutory language does not require clarification.

Conclusion: The impugned condition in the circular was unsustainable and was struck down. The amnesty applications of the petitioners were directed to be considered without reliance on the offending stipulation.

Ratio Decidendi: A clarificatory circular cannot impose a substantive restriction on eligibility for a statutory amnesty scheme when the enabling provision contains no such exclusion.

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