Compounding application delay cannot be condoned after assessment year closes or regular assessment is completed.

An application for compounding under the Kerala General Sales Tax Act must be filed within the prescribed time so that tax can be paid at the compounded rate from the beginning of the assessment year. The delay cannot be condoned after the close of the relevant assessment year or after completion of regular assessment, because the compounding scheme cannot be invoked later without creating two assessments for the same year on different bases. The stated explanation for the delay was found unsatisfactory, particularly where the assessee had availed the corresponding compounding facility under another tax law for the same period.

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Issues: Whether delay in filing an application for compounding under section 7(1)(b) of the Kerala General Sales Tax Act, 1963 could be condoned after the close of the relevant assessment year and after completion of regular assessment, so as to permit assessment at the compounded rate.

Analysis: Under the compounding scheme, the application is required to be made within the prescribed time so that tax at the compounded rate can be remitted from the beginning of the assessment year. The power to condone delay is exceptional and cannot be used to entertain a compounding request after the assessment year has closed. Once regular assessment has been completed, the scheme of compounding cannot be invoked later, because that would lead to two assessments for the same year on different bases. The justification offered for the delay was also found to be unsatisfactory, especially when the assessee had availed the corresponding compounding facility under the other tax law during the same period.

Conclusion: Delay in filing the compounding application could not be condoned after the end of the relevant year and after completion of regular assessment, and the compounding application was not maintainable.

Ratio Decidendi: An application for compounding under the Kerala General Sales Tax Act must be filed within the prescribed time and cannot be entertained after the close of the assessment year or after regular assessment has been completed.

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