M/S.Steel Exchange INDIA LTD vs. The Asst.Commissioner

Facts

The petitioner, M/s. Steel Exchange India Ltd., approached the High Court of Kerala aggrieved by the respondents' refusal to adjust refund amounts due to them towards amounts payable under the Amnesty Scheme 2020. The petitioner had been found entitled to various refund amounts under the Kerala Value Added Tax Act, as per Ext.P2 series of orders. The department had not challenged these orders. The petitioner's grievance was that the respondents refused to allow the adjustment of these due refund amounts against the liabilities incurred under the Amnesty Scheme, despite the petitioner opting for it. The petitioner sought an adjustment of the refund towards the scheme's payment obligations.

Held

The Court held that the adjustment of refund amounts due to the petitioner towards amounts payable under the Amnesty Scheme 2020 would not offend the scheme or do violence to its language. It was not disputed that the petitioner was entitled to the refunds as per Ext.P2 series of orders, and the department had not appealed these orders. Therefore, when the petitioner was liable to pay certain amounts to the department to avail the Amnesty Scheme benefits, adjusting the due refund amounts towards these payments was permissible. The Court reasoned that this was merely an adjustment towards the payment required under the scheme. Consequently, the Writ Petition was allowed, directing the respondents to appropriate the amounts payable by the petitioner under the Amnesty Scheme from the refund amounts due to the petitioner, and thereafter, release the balance refund amount expeditiously.

Key Issues

1. Whether the respondents can refuse to adjust refund amounts due to the petitioner towards amounts payable under the Amnesty Scheme 2020, when the petitioner has been determined to be entitled to such refunds and has opted for the Amnesty Scheme? Petitioner's contention: The petitioner argued that since they are entitled to refunds under Ext.P2 series of orders and have opted for the Amnesty Scheme, the department should permit the adjustment of these refund amounts against the liabilities arising under the scheme. They contended that such an adjustment would not violate the terms of the Amnesty Scheme. Respondents' contention: The learned Government Pleader for the respondents submitted that under the Amnesty Scheme, there is no specific provision for the adjustment of refund amounts towards amounts found payable by an applicant seeking the benefit of the scheme.