TaxTMI 
TaxTMI 
2021 (4) TMI 822
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....14-15. Though appellant expressed its willingness to settle the entire arrears, as contemplated under the Scheme, for the assessment year 2014-15, the 1st respondent directed the appellant to settle the alleged arrears in respect of the assessment year 2012-13 also. Appellant expressed its disinterestedness to settle the alleged arrears for the assessment year 2012-13. The reason for the disinclination of the appellant to settle the alleged arrears for 2012-13 was due to the absence of any arrears for the year 2012-13. According to the appellant, all that remains for the assessment year 2012-13, is an appeal filed by the State, which is pending consideration. 3. Contending that the appeal filed by the State before the Appellate Tribunal does not constitute any 'arrears of tax' to be settled, the assessee approached this Court under Article 226. The learned Single Judge disposed of the writ petition by denying the main relief and after finding that the Scheme has to be read holistically and should not be rendered illusory to the rights conferred under the statute. It was further held that since an appeal filed by the State was pending consideration relating to the year 20....
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.... the former Act, the demand relating to such penalty shall be settled under this section on payment of applicable tax relating to the penalty as determined by the assessing authority. Explanation.- Arrears for the purpose of this section shall include the tax remaining unpaid as on the date of option, under clause (a) of sub-section (1) of section 74 of the former Act pursuant to the payment of compounding fee mentioned therein. (2) Notwithstanding anything contained in the Kerala Revenue Recovery Act, 1968, (15 of 1968) reduction of arrears under subsection (1) shall be applicable to those cases in which revenue recovery proceedings have been initiated and the assessing authorities shall have the power to collect such amounts on settlement under sub-section (1) and where the amount is settled under subsection (1) the assessing authorities shall withdraw the revenue recovery proceedings against such assessee which will then be binding on the revenue authorities and such assessee shall not be liable for payment of any collection charges. (3) The assessee shall withdraw all the cases pending before any appellate or revisional authority, tribunal or courts f....
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....t be any refund or any adjustment subsequently for the amount settled under this scheme, under any circumstances. (10) The form and manner of submission of option, intimation and payment, shall be as may be specified by the commissioner. (11) Cases involved in Appeals filed by an officer empowered by the Government under sections 60 and 62 of the former Act and pending final orders can also be opted to be settled under this scheme, reckoning the demand in the original assessment order. (12) Assessees who have opted to settle their arrears under section 31A or section 31B of the former Act during previous years, but had failed to make payments may also opt to settle their cases under this section, and the amounts, if any, paid earlier shall be given credit as tax before reckoning the arrears to be settled under sub-section (6) and the assessee shall furnish the proof of payments made in this regard, however that no refunds shall be allowed. (13) The provisions of the Kerala Value Added Tax Act, 2003 (30 of 2004) and the rules made thereunder, including those relating to definitions, authorities, power to rectification of error, powers of revision ....
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.... or as money owed but not yet paid. (See Law Lexicon by P.Ramanatha Aiyar, 4th Edition) The Oxford Advanced Learner's Dictionary explains the term 'arrears' as money that is owed and has not been paid at the right time. 10. In cases where dispute arises whether tax is in arrears or not, the same can be determined only through assessment orders. Tax falls in arrears only after an assessment order and consequent demand is made. When the assessment order is set aside in appeal and consequential orders have not been passed by the assessing officers determining tax as due, no amount of tax can be said to be in arrears. 11. In the absence of any alleged amount coming within the scope of the words "arrears of tax', as per the scheme, the authorities cannot compel settlement of the same, unless such settlement is at the volition of the assessee himself. Sub-clause (4) and (6) of section 10 of the Act also refers to "all arrears" in contradistinction to the word "tax that may fall in arrears". Viewed in the above light, we are of the firm opinion that the words "arrears of tax" in section 10(1) of the Kerala Finance Act, 2020 will not include any amount which is subjec....