Admitted tax for sales tax appeals is measured by undisputed turnover in the memorandum, not by returns or assessment concessions.

For purposes of the second proviso to section 34(1) of the Kerala General Sales Tax Act, 1963, "admitted tax" is to be computed from the turnover and tax liability not disputed in the memorandum of appeal. It is not determined by the turnover shown in the return or by concessions made during assessment proceedings. The appellate authority must therefore look to the appeal itself to identify the undisputed portion and the tax payable on it before entertaining the appeal. On that basis, insisting on payment of an amount beyond the tax admittedly due on the disputed and undisputed portions was incorrect and rendered the dismissal unlawful.

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Issues: Whether, for the purpose of the second proviso to section 34(1) of the Kerala General Sales Tax Act, 1963, the "admitted tax" payable as a condition for entertaining the appeal is to be computed with reference to the turnover shown in the return, the turnover conceded during assessment, or the turnover admitted as not disputed in the memorandum of appeal.

Analysis: The assessment was completed under the Kerala General Sales Tax Act, 1963 by virtue of section 61(2). The appeal provision required satisfactory proof of payment of the tax or other amounts admitted by the appellant to be due before the appeal could be entertained. The Court accepted the view that the expression "admitted tax" must be determined from the contents of the memorandum of appeal and the extent of turnover and tax liability not disputed therein, rather than from the return filed before the assessing authority or from concessions made during assessment proceedings. On that footing, the appellate authority had wrongly insisted on payment of an amount beyond the tax admittedly due on the disputed and undisputed portions reflected in the appeal.

Conclusion: The admitted tax is the tax payable on the portion of the assessed turnover that is not disputed in the appeal, and not the tax shown in the return or the amount treated as conceded during assessment. The dismissal of the appeal for non-payment of an incorrect balance was unlawful.

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