2002 (7) TMI 778

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....d for the previous year also for the purpose of levying tax at compounded rate. According to counsel for the petitioner, surcharge is a separate levy governed by Kerala Surcharge on Taxes Act, 1957. Learned counsel for the petitioner contended that what is paid towards tax at compounded rate is the tax payable under section 5 of the Kerala General Sales Tax Act and since surcharge is a separate levy under a separate statute, the same should not be reckoned for the purpose of demanding tax at compounded rate for the relevant year, i.e., 2000-2001. 2.. I heard the Government Pleader also who contends that surcharge is part of the tax payable under the Act and so much so, the compounding fee payable for this year should include the surcharg....

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....twenty per cent of such tax paid or one hundred and twenty per cent of the tax payable as per the return or accounts of the dealer for the preceding year whichever is higher: Provided also that where such dealer has paid compounded tax consecutively for a period of three years the compounded tax payable for the succeeding year shall be one hundred and fifteen per cent, and in the case of a dealer who has paid compounded tax consecutively for a period of five years the compounded tax payable for the succeeding year shall be one hundred and ten per cent, of such compounded tax paid or payable by him for the immediate preceding year. Provided also that where such a dealer acquires any running business or a branch of a business with respe....

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....sub-section (1) of section 5 and the tax payable on the purchase turnover under section 5A of the Act. It is clear from the above provisions that what the petitioner is to pay under section 7(1)(a) is the liability which would have been payable by the petitioner under section 5(1) of the Kerala General Sales Tax Act read with petitioner's liability under section 5A of the Act. While section 5(1) provides for payment of tax on the sale of goods at the point of sale and at the rate provided in the Schedule to the Act, section 5A of the Act provides for a scheme of purchase tax to be levied in respect of purchase of articles where sales tax is not payable by the sellers at sale point. In the scheme of payment of tax at compounded rate, a progr....