C.N.Ramachandran Nair, J. –

Revision is filed against the order of the Tribunal sustaining balance demand of tax and interest on the respondent/assessee for the assessment year 2001-2002.

2. We have heard the learned counsel appearing for the petitioner and the learned Government Pleader for the State.

3. Assessee, a dealer in paper, remitted tax at 4% on paper sold during the year 2001-2002. However, rate of tax on paper was increased during the financial year from 4% to 8%. Since returns filed and tax paid was at 4% as against 8% payable, assessee was in arrears of substantial amount of tax.

Even before assessment was taken up, the assessee made an application on 20.2.2004 for settlement of liability under the Amnesty Scheme under Section 23B(2) of the KGST Act, which provides for waiver of default interest upto 70%. The application filed for settlement under the Amnesty Scheme produced as Annexure-A shows that the said application was filed by the petitioner under protest. The Assessing Officer passed an order on 26.2.2004 in terms the petitioner's request and accordingly tax and reduced interest was settled at Rs.5,61,682/-. However, when assessment was completed