Compounded tax election is binding for the assessment year and cannot be revoked to seek regular assessment later.

An assessee who voluntarily opted for compounded tax under the Kerala General Sales Tax Act, 1963 could not withdraw that election in the same assessment year and claim regular assessment under the normal charging provisions. The statutory scheme under Section 7(14) and Rule 30 was treated as an alternative mode of assessment that becomes binding once the dealer's application is accepted and acted upon. The Court held that the composition arrangement operated for the relevant year and could not be revoked merely because business later slowed or closed. The challenge to regular assessment therefore failed, and the assessee remained bound by the compounded rate for that year.

---

---

Issues: Whether an assessee who has opted for payment of tax at compounded rates under the Kerala General Sales Tax Act, 1963 can, in the same assessment year, withdraw that option and seek regular assessment under the normal charging provisions.

Analysis: Section 7(14) of the Act and Rule 30 of the Kerala General Sales Tax Rules, 1963 provide a statutory scheme under which a dealer may choose to pay tax at compounded rates by making the prescribed application and obtaining permission from the assessing authority. Once the option is exercised, accepted, and acted upon, the arrangement operates as a statutory and consensual mode of taxation for the relevant year. The Court treated this composition scheme as an alternative route to assessment, binding both the dealer and the revenue for that assessment year. It held that a dealer who has voluntarily opted for compounding cannot, merely because business later slows or closes, revoke that choice and demand regular assessment under Section 5(1) read with Section 17 of the Act. The Court also noted that the right to rescind such a statutory arrangement is not available on the grounds asserted by the assessee.

Conclusion: The assessee could not withdraw from the compounded tax scheme and seek regular assessment in the same assessment year; the challenge failed.

---