Composition scheme under Kerala sales tax law excludes additional sales tax liability under the regular charging provisions.

A dealer validly opting for composition under section 7 of the Kerala General Sales Tax Act, 1963 pays tax under an alternative compounding mechanism that operates notwithstanding the regular assessment scheme under section 5. Additional sales tax under section 5D is confined to tax payable under sections 5 and 5A, so it does not extend to a dealer assessed on the compounded rate basis. The effect is that a composition dealer is outside the charging scope of section 5D while the composition option remains valid.

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Issues: Whether a dealer who had opted to pay tax at the compounded rate under section 7 of the Kerala General Sales Tax Act, 1963 was liable to pay additional sales tax under section 5D of the same Act.

Analysis: Section 7 operates notwithstanding section 5(1) and provides an alternative method of payment at compounded rates instead of regular assessment under section 5. Section 5D fastens additional sales tax only on the tax payable under sections 5 and 5A. A dealer who has validly opted for composition is not being assessed under the regular charging provisions but under the compounding mechanism. The liability created by section 5D therefore does not extend to such a dealer.

Conclusion: The dealer was not liable to pay additional sales tax under section 5D while paying tax under the compounded rate scheme under section 7.

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