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of <h1>Court dismisses revisions, upholds Tribunal orders on tax payment. Misinterpretation of provision. No costs awarded.</h1> <h3>M/s. Silver Line Villas And Apartments Pvt Ltd. Versus State of Kerala</h3> M/s. Silver Line Villas And Apartments Pvt Ltd. Versus State of Kerala - [2017] 102 VST 145 (Ker) Issues Involved:1. Interpretation of provisions for payment of tax at compounded rates.2. Eligibility for compounded tax rates on suppressed turnover.3. Applicability of the third proviso to Section 8(a)(ii) of the Kerala Value Added Tax Act.4. Obligation to file separate applications for individual works contracts.5. Binding nature of permission granted for compounded tax rates.Issue-wise Detailed Analysis:1. Interpretation of provisions for payment of tax at compounded rates:The court emphasized that the provisions for payment of tax at compounded rates are designed for ease, expedience, and convenience but are often misinterpreted by assessees to evade taxes. The court clarified that these provisions should not be construed in a manner that was never intended by the legislature.2. Eligibility for compounded tax rates on suppressed turnover:The petitioner, a works contractor, was assessed for suppressed turnover relating to the sale of Villas and Flats and other works contracts. The petitioner admitted the offence and sought to pay tax at compounded rates. However, the Assessing Authority rejected this claim for the suppressed turnover as no option was filed for such works. The Tribunal upheld this decision, stating that the concessions made by the Intelligence Officer did not constrain the Assessing Authority from making a proper assessment.3. Applicability of the third proviso to Section 8(a)(ii) of the Kerala Value Added Tax Act:The petitioner argued that they were eligible to pay tax at compounded rates for all works undertaken during the assessment year based on a single option filed under the third proviso to Section 8(a)(ii). The court found this interpretation to be incorrect, stating that the third proviso allows for a single option for all works undertaken but does not extend to works for which no specific application was made or permission granted.4. Obligation to file separate applications for individual works contracts:The court highlighted that the third proviso to Section 8 allows a works contractor to file a single option for all works undertaken in a year instead of separate applications for each work. However, this does not mean that a single option covers all works indiscriminately. The contractor must still declare each work and obtain specific permission for each under the compounded tax scheme.5. Binding nature of permission granted for compounded tax rates:The court reiterated that once an option for compounded tax is exercised and accepted, it is binding on the assessee. The assessee cannot later request a regular assessment or claim compounded rates for works not covered by the initial permission. This principle was supported by precedents from the Hon'ble Supreme Court and previous judgments of the Kerala High Court.Conclusion:The court dismissed the revisions, confirming the Tribunal's orders and stating that the petitioner could only pay tax at compounded rates for works for which specific permission was granted. The petitioner could not extend this benefit to other works based on a misinterpretation of the third proviso to Section 8(a)(ii). The court made no order as to costs, leaving the parties to bear their respective costs.
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