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2020 (12) TMI 363 - HC - VAT and Sales TaxPermission requested by the petitioner for settling arrears under the Amnesty Scheme - rejection on the ground that it had not opted for settlement of the arrears for the assessment year 2012-13 - it is the contention of the petitioner that inasmuch as on the date of submission of the application for Amnesty, the liability for the assessment year 2012-13 under the KVAT Act did not exist, on account of the order of the First Appellate Authority in its favour - HELD THAT:- The Amnesty Scheme is one that contains various provisions which have to be reckoned together for the purposes of understanding the true scope and ambit of the Scheme. On a holistic reading of the said provisions, it would appear that the Scheme envisages an option to be exercised by the assessee concerned for settlement of outstanding liabilities under the various enactments covered under the scheme. The benefit under the scheme is conditional in that if an assessee opts for settlement of arrears under any particular enactment, he/she has to opt for settlement of arrears in respect of all the assessment years where such arrears are outstanding. In the instant case, while it may be a fact that, for the assessment year 2012-13, on the date of submission of the option by the petitioner asssessee, he had a favourable order from the First Appellate Authority, the right of appeal that is granted to the Department under the Statute cannot be rendered ineffective through an unilateral action on the part of the assessee to opt for settlement. The provisions of the Act have to be read holistically so as to not render illusory the rights conferred under the Statute. When so read, it must be found that notwithstanding the submission of option by the assessee in the instant case, the appeal preferred by the Department within the time granted under the Statute cannot be ignored while reckoning the assessment years in which amounts are seen as outstanding from an assessee for the purposes of settlement. Inasmuch as there was an appeal filed by the department, within the statutory period permitted for doing so, in respect of the assessment year 2012-13 under the KVAT Act, it is for the petitioner to include the demand confirmed against him by the assessment order for the said year also while opting for the benefit of the Amnesty Scheme, in respect of arrears outstanding under the KVAT Act. Petition is disposed off by directing that if the petitioner includes the liability in respect of the assessment year 2012-13 also, in the application submitted for the benefit of Amnesty, the respondents shall consider the same.
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