9911796707
TMI Blog2022 (1) TMI 1011X X X X Extracts X X X X X X X X Extracts X X X X ..... er submits that on 31.07.2019, re- assessment proceedings in relation to the petitioner for the assessment year 2016-17 were taken up by the respondents under Section 39 of the Karnataka Value Added Tax Act, 2003 (for short "the KVAT Act"). On 09.04.2021, a proposition notice was issued by the respondents to the petitioner proposing to levy penalty in a sum of Rs. 2,40,77,202/- under Section 70(2) R/w Section 39 of the KVAT Act. The petitioner having submitted their objections to the said proposition notice, respondent No.2 proceeded to pass a re-assessment order dated 28.04.2021 under Section 70(2) R/w Section 39 of the KVAT Act and issued a demand notice to the petitioner pursuant to the same. Meanwhile, the aforesaid scheme having come into force with effect from 29.03.2021, petitioner submitted an application dated 13.08.2021 in Annexure-IA seeking waiver of the aforesaid penalty by invoking the benefit provided in favour of the petitioner under the said Scheme. It is the grievance of the petitioner that despite the petitioner being entitled to complete waiver of 100% of penalty as contemplated in Clause 2 of the said Scheme, respondent No.2 has erroneously and incorrectly rej ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grants waiver of 100% of arrears of penalty and interest payable by a dealer or person or proprietor as the case may be relating to the assessment or reassessment already concluded and to be concluded upto 31.07.2021 under the following Acts also, namely.- a. Karnataka Tax on Entry of Goods Act, 1979, (hereinafter referred to as KTEG Act); b. Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, (hereinafter referred to as KTPTC & E Act); c. Karnataka Tax on Luxuries Act, 1979 (hereinafter referred to as KTL Act); d. Karnataka Agricultural Income Tax Act, 1957 (hereinafter referred to as KAIT Act); and e. Karnataka Entertainments Tax Act, 1958, (hereinafter referred to as KET Act). 5. Conditions: Grant of waiver of penalty and interest is subject to the following conditions: 5.1 Any dealer or person or proprietor as the case may be, who makes full payment of arrears of tax on or before 31.10.2021 shall be granted waiver of 100% of arrears of penalty and interest payable. However, any penalty levied by the Registering Authority under section 10-A of the CST Act shall not be eligible for benefit of waiver under this Scheme. 5.2 Where the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose, Clause No.5.1 and 5.2 would be relevant; while Clause No.5.1 permits grant of waiver of 100% of arrears of penalty and interest only in favour of a person, who makes full payment of arrears of tax on or before 31.10.2021, it is clarified in the said clause that any penalty levied under Section 10-A of the CST Act shall not be eligible for the benefit of waiver under the scheme. So also, Clause 5.2 provides that if a person does not have any arrears of tax but only arrears of penalty and interest relating to assessments/re-assessments already completed as on 29.03.2021 (when the scheme came into force) and to be completed on or before 31.07.2021, such arrears of penalty and interest shall be eligible for waiver. 9. The following aspects emerge in relation to grant of waiver of penalty and interest from a conjoint and harmonious reading of Clause No.1 to Clause No.5.2 of the scheme: (a) All the four clauses i.e., Clauses 1, 2, 3 and 4 of the Scheme are independent, separate, different, distinct and stand alone clauses/provisions, which are mutually separate and exclusive of each other dealing with and being applicable to different and separate categories, situations and statu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 31.07.2021. 10. In the instant case, it is an undisputed fact that no penalty is sought to be levied against the petitioner under Section 72 (1)(a), 72(1)(b), 74(4) or 72(3-B) of the KVAT Act and consequently, clause No.3 would have no application to the facts of the instant case in so far as the petitioner is concerned. On the other hand, as rightly contended by the learned Senior counsel for the petitioner, it is Clause No.2 of the Scheme that would be applicable to the facts of the instant case and in the light of the undisputed fact that the reassessment was completed on 28.04.2021 as can be seen from the reassessment order, which is clearly much prior to 31.07.2021, the cut off date under the scheme, the petitioner would be entitled to the benefit of 100% waiver of penalty sought to be levied upon him under Section 70(2) R/w Section 39 of the KVAT Act as per the reassessment order dated 28.04.2021. It is also relevant to state that so long as the penalty sought to be levied upon the petitioner is under Section 70(2) R/w Section 39 of the KVAT Act and not under Section 72 (1)(a), 72(1)(b), 74(4) or 72(3-B) of the KVAT Act, Clause No.3 of the Scheme is clearly not applicable t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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