In the recent decision A.V. Shine v. CTO and Anr, the Single bench of the Kerala High Court held that 90% reduction under section 23B(d) of the KGST Amnesty scheme is confined only for interest and penalty and the same is not available in respect of the tax amount.
The writ petition was filed by an individual who claimedthe benefit of amnesty in terms of Section 23B(d) of the KGST Act. According to the petitioner, the above provision entitles him for waiver of 90% of the interest and the entire amount due as penalty and interest. He claims that while submitting application for amnesty, petitioner was informed that the he will have to pay 10% of the penalty amount as well as interest thereon in addition to 10% interest along with tax dues. According to the petitioner, the manner of computation is totally illegal and not in accordance with the statutory provision.
The State submitted that the petitioner is liable to pay the entire amount of tax along with 10% of the interest and penalty.
Dismissing the petition, Justice Shaffique said, “In respect of amnesty scheme available in respect of demands relating to the period 1st April, 2000 to 31st March, 2005, the reduction granted is 90% of the interest on the tax amount and for the amount of penalty and interest thereon. The contention is that the reduction is for 90% of the interest on tax amount and also the entire amount of penalty and interest thereon. If such was the intention of the Legislature, definitely there was no reason to have specifically mentioned it, whereas what the Legislature has done was that after the word tax amount, a comma is inserted and thereafter the words ‘and for the amount of penalty and interest thereon’ is incorporated, which apparently indicates that the words “reduction of 90%” is on the interest on the tax amount as well as on the amount of penalty and interest thereon. A different view is not possible.”
Read the full text of the Judgment below.
