TaxTMI 
TaxTMI 
2020 (7) TMI 617
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....BRAHAM (B/O) JUDGMENT Vinod Chandran, J. The short question to be considered in the appeals is as to whether the application filed under the Amnesty Scheme introduced by Section 31A of the Kerala Value Added Tax Act, 2003 ['KVAT Act' for brevity] can be rejected on the ground that there is an appeal intended by the State from the order of the first appellate authority. 2. The learned Single Judge found that the intention in introducing an Amnesty Scheme was to bring an expeditious end to the pending litigation while the State is also assured of recovery of tax dues. Reading the scheme as such it was found that there is no provision by which the application can be rejected on the mere contemplation of an appeal before the statuto....
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....ned, then necessarily he will have a better benefit for reason of a subsequent Amnesty Scheme introduced by the State in the next consecutive year. The assessee having remitted the entire amounts of tax under the Amnesty Scheme, he would be entitled to refund of 60% of the tax. 6. Section 31A is a non-obstante provision, by which an option is provided to any assessee having arrears of tax or any other amounts to pay the principal amount of tax in arrears, upon which the assessee would stand absolved from the interest due and also any penalty imposed. The proviso also mandates that for such settlement to be arrived at, the assessee shall also be liable to pay applicable tax relating to a penalty which is not utilized or not liable to be uti....
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....eing applied for, such remittance or deposit made shall be given credit as tax paid under sub-section (1) of Section 74 and such credit shall enure to the assessee as one made under the option exercised. The proviso to sub-section (8) excludes any deposit made by way of penalty or interest from being credited towards tax. Sub-section (9) prohibits any refund or any adjustment subsequently of the amounts settled under the Scheme. 7. The Circular subsequently issued by the Department, produced as Exhibit P5 in W.P(C) No.31691 of 2019 from which W.A.No.573 of 2020 arises, however speaks of the appeals filed by the State being continued and the assessees, who are respondent in such appeals, being not eligible for availing the provisions of the....
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....e, by paying up the amounts as per the determination made on the option exercised, he is absolved from all liabilities pending against him. There is no requirement of a specific provision requiring the State to withdraw the appeal filed, since the settlement arrived at on the basis of the statutory provision is binding on the Department. Here we emphasize sub-section (2), which contemplates cases in which revenue recovery proceedings have already been initiated; which proceedings have to be withdrawn when the matter is settled under Section 31A. That the State's appeal would be rendered infructuous on a settlement arrived at under Section 31A is an inevitable consequence on deposit of amounts determined under sub-section (7). 9. In thi....