Order Issued to Consider and Dismiss as a Separate Case the VAT Arrears of Rs. 2,14,195 Against Mr. Abdul Aziz, Pulse Motors, Alanallur, Palakkad, Under Revenue Recovery Proceedings ...

Government of Kerala. Taxes (B) Department. G.O.(Ms) No.24/2026/TAXES. Dated, Thiruvananthapuram, 15-03-2026. Summary: Taxes Department - VAT tax arrears of Rs. 2,14,195/- (Rupees Two Lakh Fourteen Thousand One Hundred and Ninety-Five only) against the trader Sri. Abdul Azeez, Pulse Motors, Alanallur, Mannarkkad, Palakkad, who is facing revenue recovery proceedings, is considered as a special case and written off. Order: 1. Sri. Abdul Azeez submitted an application to the government on 13.2.2023 requesting to stop the attachment proceedings and to waive the tax liability, citing that his business had failed and closed down, and that he was unable to pay the tax. 2. Regarding this, the State Goods and Services Tax Commissioner, in a report submitted on 13.8.2024, informed the following: Based on the verification of VAT returns for the years 2013-14, 2015-16, and 2016-17 of the trader Sri. Abdul Azeez, Pulse Motors, Alanallur, Mannarkkad, Palakkad, who was registered under the Kerala Value Added Tax Act, orders were issued by the State Tax Officer, Tax Payer Services Circle, Mannarkkad, imposing amounts of Rs. 72,796/-, Rs. 1,30,143/-, and Rs. 11,256/- respectively. As the said amount was not paid within the stipulated time, it was recommended for revenue recovery to the District Collector, Malappuram, on 22.11.2022, as per RRC numbers 2022/11790/09, 2022/11751/09, and 2022/11811/09. However, considering the current pathetic condition of the party, the revenue recovery applications were returned on 30.03.2023. The applicant was informed on 24.08.2024 that the arrears could be settled under the Amnesty Scheme 2024, which came into effect from August 1, 2024. 3. After receiving the reply as per reference (3), Sri. Abdul Azeez submitted an application again on 31-08-2024, stating that he is a patient undergoing dialysis and requested to waive the tax arrears completely, considering his health condition. 4. Under the Amnesty Scheme 2024, there was a provision to waive the tax arrears up to Rs. 50,000 along with interest and penalty. For those with tax arrears from Rs. 50,000 to Rs. 10 Lakh, a concession of 30% was given to those applying before September 29, 2024, and 2% increase thereafter. Since there is no provision under the KVAT Act to write off tax arrears, and since the applicant could be relieved of liabilities by paying a reduced amount using the Amnesty Scheme, the applicant was again replied to on 28.09.2024 based on the letter of the State Tax Commissioner. 5. In the report submitted by the District Collector, Malappuram, on 16.11.2024, it is informed that Sri. Abdul Azeez is not a 'Wilful defaulter', his financial condition is pathetic, he is suffering from illness and undergoing dialysis 3 times a week, is unable to work, and the family is currently living in a rented house with the help of a public committee formed by the local people. 6. As per the report submitted by the State Goods and Services Tax Commissioner on 17.01.2026, Sri. Abdul Azeez has not availed the Amnesty Scheme for the years 2024 and 2025. 7. The government examined this matter in detail. Since Sri. Abdul Azeez is a patient undergoing dialysis three times a week and is unable to work, and the applicant and his family are living with the help of a public committee, it is a situation where the VAT tax arrears of Rs. 2,14,195/- cannot be recovered from him. 8. In the above circumstances, the VAT tax arrears of Rs. 2,14,195/- against the trader Sri. Abdul Azeez, Pulse Motors, Alanallur, Mannarkkad, Palakkad, who is facing revenue recovery proceedings under the Kerala Value Added Tax Act, is considered as a special case based on the facts mentioned in the report of the District Collector, Malappuram, and is written off. (By order of the Governor) K R Jyothilal, Additional Chief Secretary.