Amendment status not verified — confirm the current text below against the official source.
(1) Notwithstanding anything contained in this 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, interest or penalty payable under the provisions of clause (b) of sub-section (1) and sub-section (2) of section 5 or section 7 of the Act may opt to settle the arrears in any of the assesment orders pertaining to the period from 1st April, 2005 to 31st March, 2021 on payment of principal amount of the tax and cess along with fifty percentage of interest in arrears as on the date of application and on such payment, penalty and the balance fifty percentage of the interest shall stand waived off: 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 this Act, the demand relating to such penalty shall be settled under this section on payment of applicable tax relating to such penalty along with fifty percentage of the interest applicable on such tax as on the date of application: Provided further that on settlement of arrears pertaining to any of the financial year belonging to the aforementioned period, if no other sales tax or turnover tax remains to be settled in that particular year, then all the penalties pertaining to that year other than the penalty mentioned in the first proviso shall be deemed to be settled under sub-section (1). (2) Any assessee who intends to opt for settlement of arrears under sub-section (1) shall, on or before 30th June, 2025 submit an application before the assessing authority, in such form and in such manner as may be prescribed, accompanied with proof of payment of the amount made as per sub-section (1) through e-treasury portal. (3) Separate application shall be filed for settling the arrears pertaining to each assessment order. (4) The assessee shall withdraw all the cases pending before any appellate, revisional authority or tribunal under the Act or courts for opting to settle the arrears as per sub-section (1) and shall file the application accompanied by a copy of leave to withdraw granted by the authority or tribunal or court, as the case may be: Provided that the cases wherein the appeal filed by the Government is pending before any authority or tribunal under the Act or any courts may also be settled under this sub-section by making payment of the tax as per the demand in the original assessment order along with fifty percentage of the applicable interest as on the date of application. The assessing authority shall, on receipt of such application, seek for an adjournment of the cases to the appellate, revisional authority or tribunal under the Act or court until intimation regarding disposal of such cases and on settlement of such cases as per the demand in the original order, Government shall withdraw such appeals forthwith. (5) The assessing authority on receipt of the application with proof of payment shall verify the correctness of the application and the payment made and discrepancies, if any, shall be intimated to the assessee within one month, in such form and in such manner as may be prescribed. (6) The discrepancies under sub-section (5) shall be rectified by the assessee within a period of one month of receipt of the intimation in such manner as may be prescribed: Provided that no opportunity for rectification shall be granted more than once. (7) On settlement of the arrears pending as on the date of making payment of the amount specified under sub-section (1), the assessing authority shall issue an order of settlement within a period of one month in such manner as may be prescribed. (8) Subject to the provisions of section 55C, if an assessee who opts to settle his arrears under sub-section (1) has remitted or deposited any amount towards the arrears under this Act after the service of demand notice, such amounts shall be given credit as tax and interest, and the assessee shall furnish the proof of payments made in this regard. (9) 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 revenue recovery proceedings against such assessees shall be deemed to have withdrawn on the 1st day of April, 2025 which shall then be binding on the revenue authorities, and such assessees shall not be liable for payment of any collection charge leviable by such revenue authorities. (10) Assessees who opted to settle their arrears under this section 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, after the service of the demand notice, shall be given credit as tax and interest subject to the provisions of section 55C and the assessee shall furnish the proof of payments made in this regard. (11) 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 section, under any circumstances.] Substituted by Act 3 of 2025 published in K. G. Ext. No. 1269 dt. 29/03/2025 (w.e.f. 01/04/2025). Prior to the Substitution it read as: "23B. Reduction of arrears in certain cases.-- Notwithstanding anything contained in this Act, or in any Judgment, decree or order of any court, tribunal or appellate authority, an assessee who is in arrears of tax or any other amount due under this Act of the Central Sales Tax Act, 19 (Central Act 74 of 19) relating to the period ending on 31st March, 2005, may opt for settling the arrears by availing reduction at the following rates. (a) in the case, of demands relating to the periods up to and including 31st March, 1991, a reduction of twenty five percent for the tax amount, and complete reduction of the interest on the tax amount and for the amount of penalty interest thereon; (b) in the case of demands relating to the period from 1st April, 1991 to 31st March, 1996, a complete reduction of the interest on the tax amount and for the amount of penalty and interest thereon; (c) in the case of demands relating to the period from 1st April, 1996 to 31st March 2000, a reduction of ninety five percent of the interest on the tax amount, and for the amount of penalty and interest thereon. (d) in the case of demands relating to the period from 1st April, 2000 to 31st March 2005, a reduction of ninety five percent of the interest on the tax amount, and for the amount of penalty and interest thereon; and (e) in case where principal amount has already been remitted prior to coming into force of section 55 C of the Act, reduction of ninety percent of the interest amount. (2) Notwithstanding anything contained in the Kerala Revenue Recovery Act, 1968, reduction of arrears under subsection (1) shall be applicable to those case in which revenue recovery proceedings have been initiated and the assessing authorities shall have the power to collect such amounts on settlement under subsection (1) and where the amount is settled under subsection (1) the assessing authorities shall withdraw the revenue recovery proceedings against such dealers which will then be binding on the revenue authorities and such dealers shall not be liable for payment of any collection charges. (3) A dealer who wishes to opt for payment of arrears under sub-section (1) shall make an application to the assessing authority in the prescribed form before 31st December, 2013, or on such dated as may be notified by the Government. (4) On receipt of an application under sub-section (3), the assessing authority shall verify the same and intimate the amount due to the assessee and thereupon the assessee shall remit the amount in lump sum or in three equal instalments on or before 31st December 2013. (5) If the dealer commits any default in payment of the instalments, the reduction granted under sub-section (1) is liable to be revoked. (6) No action under sub-section (5) shall be taken without giving notice to the dealer. (7) Notwithstanding anything contained in any order, decree or judgment of any court, tribunal or appellate authority, if an assessee opts to settle his arrears as per this section,- (i) he shall withdraw all cases pending before any court, tribunal or appellate authority relating to the arrears under option; and (ii) if an order, decree or judgment is passed by any court, tribunal or appellate authority relating to the arrears already settled under option, giving reduction in liability with regard to such arrears, no refund shall be allowed with respect to such arrears covered under such order, decree or judgment; and (iii) no appeal shall lie in any court, tribunal or appellate authority, with respect to the amount settled under this section."