2014 (3) TMI 121

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....12.10.2007 the Head Office business was closed and was duly intimated to the Assessing Authority. Admittedly, he was paying tax for the years 2003 onwards till 2008-09. 2. For the year 2009-10, he opted for payment of tax at compounding rate for the first time as provided under Section 8 (f)(i) of the Kerala Value Added Tax Act and Rules( the Act for short). According to the petitioner, though he specifically asked for compounding pertaining to his branch office business at Central Junction, in the light of closing the business at Head Office YMCA Building, the Authority granted compounding tax, taking into account previous years and compounded at 150% with reference to tax paid for the year 2007-08. 3. According to the revision petitione....

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.... provisions do not admit any classification of the establishment of the assessee into branches, for the purpose of determining the total turnover to determine the annual turnover, for the purpose of such determination. 3. Explanation 3 under S.8(f)(i) is also categoric to the effect that dealers opting for payment of tax under that clause shall pay compounded tax in respect of their branches existing in the year ( to which the option relates).While that Explanation excludes any dissection of the establishment for payment of tax, the principle that the compounded tax has to be determined on the basis of annual turnover remains the same. Therefore, there cannot be any splitting up or proportionate reduction of the annual turnover of the prev....