Composition tax election binds works-contract dealer for the full year, barring later exclusion of assessed work items.

A dealer who voluntarily opts for the composition scheme under section 17(6) of the Karnataka Sales Tax Act, 1957, and obtains permission for the relevant year, is bound by that election for the full year. The scheme under section 17(6) and rule 8-B is designed as a simplified and convenient method of assessment for works-contract dealers, and it does not allow the dealer later to resile from the choice and demand item-wise scrutiny to exclude parts of the work from assessment. Having accepted the benefit of the alternate method, the dealer is precluded by conduct from withdrawing from it after the year ends.

---

---

Issues: Whether a dealer who has voluntarily opted for composition of tax under section 17(6) of the Karnataka Sales Tax Act, 1957 can later contend that part of the work executed does not fall within section 5-B of the Act and seek exclusion of that portion from assessment.

Analysis: Section 17(6) and rule 8-B provide an optional composition scheme intended to furnish a simplified and convenient method of assessment for works-contract dealers. Once the dealer applies for and is granted composition for the relevant year, the permission is valid for the entire year. The scheme does not permit the dealer, at the end of the year, to resile from the election and insist upon a detailed scrutiny of individual items of work for the purpose of excluding some portions from the composition. The dealer, having chosen the alternate method with knowledge of its features, is bound by that choice and is precluded by conduct from withdrawing from it after availing the benefit of the scheme.

Conclusion: A dealer who elects composition under section 17(6) cannot later seek exclusion of any portion of the works from assessment on the ground that such portion does not amount to a works contract; the contention fails.

---