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V.CHITAMBARESH
ACC Limited, (Formerly The Associated Cement Co. Ltd. ), represented by its Joint Manager (Accounts) – Appellant
Versus
Assistant Commissioner (KVAT) Special Circle, Kannur – Respondent
Key Points: - The petition concerns appropriation of amounts deposited pending appeal under Section 55 C and whether they can be appropriated toward tax components or only interest (!) (!) (!) . - Ext.P3 and Ext.P5 orders show different treatment: Ext.P3 lacks apportionment to tax/surcharge/interest; Ext.P5 specifies 50% of balance disputed tax for settlement (!) (!) (!) . - The court held that a remittance under Ext.P3 is an open payment to be appropriated first to interest and then principal; the remittance under Ext.P5 is a deposit on account and can be appropriated toward the tax component (!) (!) (!) . - The petition is maintainable and the quantum for settlement under the Amnesty Scheme is subject to judicial review under Article 226; limitations and reliefs apply, with scope for challenging the quantification though within the Amnesty Scheme framework (!) . - The court quashed Exts.P13, P15, P18 to the extent of their impact on computation and directed recomputation of the amount payable under the Amnesty Scheme (!) (!) . - The Supreme/High Court context references to decisions regarding open payments vs deposits on account and their respective appropriation, and the limited relief in writ petition for this matter (!) (!) .
1. The following questions arise for consideration in this writ petition:-
i) Does the principle of appropriation of payment under Section 55 C of the Kerala General Sales Tax Act, 1963 ('the Act' for short) apply when amounts are deposited 'on account' pursuant to orders of the appellate authority?
ii) Is the final quantification of the amount (after appropriation) for settlement as per the provisions of the Amnesty Scheme under the Act open to challenge after payment by the assessee under Article 226 of the Constitution of India?
2. The petitioner is a Company engaged in the business of manufacture and sale of cement and is a dealer registered under the Act on the rolls of the first respondent and the relevant assessment year is 1998-99. The dispute arose in the appropriation of a sum of Rs.2,00,00,000/- deposited pending appeal before the Deputy Commissioner (Appeals) and a sum of Rs.1,80,99,000/- deposited pending appeal before the Kerala Sales Tax Appellate Tribunal by the petitioner. The petitioner contended that the amounts should be appropriated towards the component of tax in quantifying the amount for settlement as per the Amnesty Scheme under the Act. The first
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