State Of Kerala Represented By The Additional Chief Secretary(Taxes) vs. Abaam Hotel

Held

The Court held that its review jurisdiction is limited to errors apparent on the face of the record and not for re-hearing or appeal. It found that the original judgment had considered all documents and submissions, including the Cabinet Note and Decision, and concluded there was no error apparent on the face of the record warranting reconsideration. The Court found no substance in the review petition.

Facts

The State of Kerala filed a review petition against a High Court judgment that exempted FL3 licensees (Bar attached Hotels) from paying interest on delayed filing of returns and payment of 5% turnover tax for parcel sales during Covid lockdown periods, provided returns were filed by 31.03.2022 and tax cleared by 30.04.2022. The State contended that the 5% reduction was not limited to the Covid period and that the original 10% tax was due, with 5% being a refund, thus interest was payable.

Key Issues

Whether there was an error apparent on the face of the record in the original judgment that exempted FL3 licensees from interest on delayed turnover tax payments during the Covid lockdown period. Specifically, whether the 5% tax reduction was a full exemption or a refund mechanism, impacting interest liability.