2017 (7) TMI 1198 - HC - VAT and Sales Tax

Petitioner's Tax Exemption Request Denied Due to No Withdrawal After Compounding

The High Court dismissed the petitioner's request for tax exemption, relying on precedent that once tax is compounded, withdrawal is not permitted. - TMI Compounding of Tax Liability - The petitioner's case is that the operation of the crusher unit was stayed by this Court on 06.10.2010 and thereafter there was no commercial production or sale - Held that:- The issue is covered against the petitioner in the light of the judgment in Raju Jacob vs. Sales Tax Officer [2006 (1) TMI 574 - KERALA HIGH COURT], where it was held that once assessee had opted payment of tax by compounding and received the demand notice, cannot withdraw the option subsequently - the petitioner's request for exemption from tax for the subsequent quarters cannot be accepted - petition dismissed. The petitioner, a registered firm operating a crusher unit, sought exemption from tax after the unit's operation was stayed by the court. The court dismissed the petition, citing a previous judgment that once tax is compounded, the option cannot be withdrawn.