TaxTMI 
TaxTMI 
2006 (3) TMI 716
X X X X Extracts X X X X
X X X X Extracts X X X X
....49. Section 7(1)(a) of the Kerala General Sales Tax Act, 1963 provides for payment of tax at compounded rates for dealers in gold or silver ornaments or wares, at their option instead of paying tax in accordance with the provisions of the said section. For the assessment year 2000-01 as per section 7(1)(a) as it stood at the relevant assessment year, compounded rate of tax payable by any dealer in gold was 120 per cent of the tax payable by him as conceded in the return or accounts for the immediate preceding year. It also provides that where any such dealer opens new branches, the compounded tax payable by him in respect of each new branch for the first year shall be twenty-five per cent of the compounded tax for the principal place of bu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....re equally applicable to the challenge against exhibits P3, P4 and P5 in O.P. No. 35822 of 2002 as well. Learned single Judge did not interfere with the compounded tax fixed. Against this the assessee has preferred W.A. No. 1279 of 2003. Common questions arise for consideration in these appeals and hence we are disposing of the same by a common judgment. Learned counsel for the appellant Sri Jose Joseph submitted that the assessing authority has committed an error in fixing the compounding fee due for the year 2000-01 by invoking the first proviso to section 7(1)(a). The counsel submitted that the first proviso to section 7(1)(a) is applicable only when during the preceding year the dealer has not transacted business for any period. The c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....whole year. The counsel submitted there is no ambiguity in the first proviso to section 7(1)(a) of the Act warranting interference by this court. Section 7(1)(a) of the Kerala General Sales Tax Act provides that any dealer in gold or silver ornaments or wares, may at his option, instead of paying tax in accordance with the provisions of that sub-section, pay tax at two hundred per cent of the tax payable by him as conceded in the return or accounts for the immediately preceding year or the tax paid for the immediately preceding year, whichever is higher. The assessee had sought permission to pay tax at compounded rate and permission was granted by the authorities by order dated July 13, 2000. Later it was found that permission for payment ....