Excelsior Correspondent
JAMMU, Mar 8: Division Bench of State High Court comprising Chief Justice N Paul Vasanthakumar and Justice Tashi Rabstan has allowed the State to announce Amnesty Scheme for the tax defaulters.
The permission was granted after considering the application seeking modification of order dated 04.09.2012 prohibiting the State from issuing Amnesty Scheme for recovering the taxes from defaulters, firms and companies.
Senior Advocate Sunil Sethi appearing for the PIL vehemently opposed the prayer sought for and contended that only after filing of the writ petition and issuing interim direction, substantial tax arrears have been recovered from the defaulters and there is no bonafide on part of the Government in seeking permission to announce Amnesty Scheme.
“Even if the amnesty is to be provided the same should be for a limited period and tax and interest component cannot be waived on any account”, he further said.
Advocate General D C Raina submitted that Amnesty Scheme was announced earlier and if again announced, will only permit the defaulters to pay the arrears of tax with interest by installments.
After hearing both the sides, the DB allowed the Government to announce Amnesty Scheme in exercise of powers under Section 25-D of J&K GST Act, 1961 permitting the defaulters to pay tax with interest by installments.
However, the DB said that Amnesty Scheme should be for a limited period and the entire tax arrears with interest shall be payable by the defaulters.
“The petitioners have filed the writ petition seeking direction to the respondents to recover the Sales Tax and VAT arrears from the defaulters, who failed to pay the same under J&K General Sales Tax Act and J&K VAT Act”, the DB observed, adding “the petitioners have also submitted that no action was taken by the officers of the Tax Department and they should also be proceeded departmentally and this court passed an interim order on 04.09.2012 prohibiting the State-respondents from announcing any Amnesty Scheme”.
“The condition/prohibition imposed is sought to be modified by contending that Jammu & Kashmir General Sales Tax Act, 1962, Section 25-D empowers the Government to give amnesty and by virtue of prohibitory order, no Amnesty Scheme is able to be announced, due to which recovery of tax and interest could not be effectively made”, the DB said, adding “it has been prayed that at least the order may be modified permitting the State to announce an Amnesty Scheme at least for once, so as to enable the State to recover substantial arrears of Sales Tax with interest”.
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