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Issues: Whether a dealer who elects composition of tax under section 5G of the Andhra Pradesh General Sales Tax Act, 1957 for a particular assessment year can withdraw that option during the same year and seek assessment under section 5F of the Act.
Analysis: The scheme of section 5G and rule 6B of the Andhra Pradesh General Sales Tax Rules, 1957 shows that the option for composition is exercised year-wise. The dealer must apply in the prescribed form for each year, the permission in Form L1 is valid for the entire year, and the statute permits cancellation only on specified grounds. Once the dealer has opted for composition and obtained permission for the relevant year, the option cannot be varied at will or abandoned merely because the regular method under section 5F may appear more beneficial. The reasoning in the cited excise decision on composition schemes also supports the principle that an assessee cannot combine two different methods of assessment in the same year.
Conclusion: A dealer who has opted for composition under section 5G and obtained permission for the year cannot withdraw that option during the currency of the permission and insist on assessment under section 5F.
Final Conclusion: The revisions fail because the composition election for the assessment year bound the dealer for that year, and no hybrid method of assessment was permissible.
Ratio Decidendi: Where a taxing statute provides a year-wise composition option for works contracts and grants permission for the full year, the assessee is bound by that election for the relevant year and cannot resile from it mid-year to adopt the regular assessment method.
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