10. Special provision for Reduction of arrears in certain cases.—
(1)Notwithstanding anything contained in sub-section (1) of section 174 of the Kerala State Goods and Services Tax Act, 2017 (20 of 2017) and in the Kerala Value Added Tax Act, 2003 (hereinafter referred to as the former Act) or rules made thereunder or in any judgment, decree or order of any court, tribunal or appellate authority, any assessee who is in arrears of tax or any other amount due under the former Act or under the Central Sales Tax Act, 1956 (Central Act 74 of 1956) relating to the period up to and including 30th June, 2017, may opt for settling the arrears on payment of,—(i)fifty per cent of the principal amount of the tax in arrears; or(ii)forty per cent of the principal amount of the tax in arrears, if the amount is paid in lump sum within 30 days of receipt of intimation of the assessing authority referred to in sub-section (7):Provided that in case where the evidence, details and records pertaining to the penalty levied is not utilized or not liable to be utilized for any best judgment assessment under the former Act, the demand relating to such penalty shall be settled under this section on payment of applicable tax relating to the penalty as determined by the assessing authority.Explanation.—Arrears for the purpose of this section shall include the tax remaining unpaid as on the date of option, under clause (a) of sub-section (1) of section 74 of the former Act pursuant to the payment of compounding fee mentioned therein.(2)Notwithstanding anything contained in the Kerala Revenue Recovery Act, 1968, (15 of 1968) reduction of arrears under sub-section (1) shall be applicable to those cases in which revenue recovery proceedings have been initiated and the assessing authorities shall have the power to collect such amounts on settlement under sub-section (1) and where the amount is settled under sub-section (1) the assessing authorities shall withdraw the revenue recovery proceedings against such assessee which will then be binding on the revenue authorities and such assessee shall not be liable for payment of any collection charges.(3)The assessee shall withdraw all the cases pending before any appellate or revisional authority, tribunal or courts for opting for settling the arrears under this section and shall file a declaration to this effect along with the option mentioned under sub-section (5).(4)All arrears including tax, interest and penalties pertaining to an assessee shall be settled together under this section.(5)An assessee who intends to opt for payment of arrears under sub-section (1) shal submit an option to the assessing authority on or before 30th November, 2020:Provided that with respect to demands generated after 30th November, 2020, the option may be filed within thirty days, on receipt of the assessment order and in such cases the final payment of tax and other amounts due as per this section shall be completed on or before 31st March, 2021.(6)The arrears for the purpose of settlement under this section shall be calculated as on the date of submission of option.(7)On receipt of the option under sub-section (5), the assessing authority shall determine the amount of tax and other amounts due from the assessee under sub-section (1) and shall intimate the same to the assessee, and thereupon the assessee shall remit the amount in installments or lump sum, as the case may be, on or before 31st March, 2021:Provided that the first installment thereof, for those who opt for payment as specified in clause (i) of sub-section (1) shall not be less than twenty per cent of the amount determined therein and such amount shall be paid within thirty days of receipt of the said intimation and the balance amount to be paid in installments, subject to a maximum of four installments.(8)Notwithstanding anything contained in section 91 of the former Act, if an assessee who opts to settle his arrears under sub-section (1) has remitted or deposited any amount relating to the arrears after the service of demand notice, including the tax paid under clause (a) of sub-section (1) of section 74, of the former Act such amount shall be given credit as tax before reckoning the arrears to be settled under sub-section (6) and the assessee shall furnish the proof of payments made in this regard:Provided that any amount paid towards penalty or its interest shall not be given credit.(9)Notwithstanding anything contained in this Act, or in any judgment, decree or order of any court, tribunal or appellate authority, there shall not be any refund or any adjustment subsequently for the amount settled under this scheme, under any circumstances.(10)The form and manner of submission of option, intimation and payment, shall be as may be specified by the commissioner.(11)Cases involved in Appeals filed by an officer empowered by the Government under sections 60 and 62 of the former Act and pending final orders can also be opted to be settled under this scheme, reckoning the demand in the original assessment order.(12)Assessees who have opted to settle their arrears under section 31A or section 31B. of the former Act during previous years, but had failed to make payments may also opt to settle their cases under this section, and the amounts, if any, paid earlier shall be given credit as tax before reckoning the arrears to be settled under sub-section (6) and the assessee shall furnish the proof of payments made in this regard, however that no refunds shall be allowed.(13)The provisions of the Kerala Value Added Tax Act, 2003 (30 of 2004) and the rules made thereunder, including those relating to definitions, authorities, power to rectification of error, powers of revision suo-motu shall, as far as may be, mutatis mutandis, apply, in relation to the settlement of arrears under this section.(14)The arrears to be settled under this section shall not include any amount of tax retained by any assessee under garnishee orders of competent court or any amount of tax deducted by the awarder under section 10 and retained by him.
