You are currently viewing Supreme Court Allows Restoration of Tax Appeal After Failing to Avail Kerala VAT Amnesty Scheme

Supreme Court Allows Restoration of Tax Appeal After Failing to Avail Kerala VAT Amnesty Scheme

The Supreme Court of India has ruled that there is no prohibition against seeking the reinstatement of an appeal challenging the imposition of a tax liability if an assessee is unsuccessful in obtaining the benefits of the Kerala Value Added Tax Amnesty Scheme, 2020 (VAT Amnesty Scheme). The decision came in the case of PM Paul versus The State Tax Officer & Ors, where a Kerala-based businessman sought to restore his tax appeal after withdrawing it to apply for the VAT Amnesty Scheme.

No Bar on Restoration

The Supreme Court bench comprising Justice BV Nagarathna and Justice Ujjal Bhuyan stated that there is no explicit restriction preventing the restoration of an appeal when an assessee is unable to avail of the Amnesty Scheme’s benefits. The Court emphasized that tax appeals are a statutory remedy, and the appellant had initially withdrawn the appeal as a prerequisite for applying for the Amnesty Scheme.

Ruling Details

The businessman’s appeal had been withdrawn to ensure no pending legal proceedings existed for applying to the VAT Amnesty Scheme. However, when he was unsuccessful in availing the scheme’s benefits, he sought the restoration of his original tax appeal.

The Supreme Court allowed the appeal against the Kerala High Court’s decision, restoring the tax appeal pending before the Joint Commissioner of Appeals. The Court instructed the parties to appear before the appellate authority on October 4, with the restored appeal to be heard on its merits and disposed of in accordance with the law.


The Supreme Court’s decision clarifies that an assessee can seek the reinstatement of a tax appeal even after withdrawing it to apply for tax amnesty, provided the amnesty benefits are not obtained. This ruling underscores the importance of statutory remedies and access to justice in tax matters.


Leave a Reply