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Tax & Customs LawSupreme Court of India

State of Rajasthan v. Khangar Singh

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 9964 of 2014)Decided 30 Oct 2014
Civil Appeal No. 9964 of 2014
Justice Anil R. Dave · Justice Uday Umesh Lalit

Background

A licensed dealer failed to pay licence fees, leading to cancellation of his licence and forfeiture of his security deposit. Rajasthan later offered an amnesty scheme relieving eligible defaulters of interest if they applied within its prescribed period, but he did not apply by the deadline. While hearing his earlier challenge, the High Court nevertheless directed the State to give him the scheme's benefit in 2013, after it had expired.

Decision Breakdown

The Supreme Court allowed the State's appeal and set aside the High Court's order. The scheme required an application by 31 March 2010, and the dealer had admittedly made none within that period. The High Court exceeded its jurisdiction by extending the benefit despite this unmet condition and without knowing the exact amount outstanding. The dealer had not even paid the reduced amount ordered by the High Court, and the State was left free to recover the lawful dues.

Lesson Learnt

Financial difficulty does not by itself excuse missing the application deadline for a time-limited amnesty scheme. In this case, a later court order could not supply eligibility after the scheme had expired.

State of Rajasthan v. Khangar Singh – Legal Case Shots | LegalAware