TaxTMI 
TaxTMI 
2014 (3) TMI 782
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....lia requesting the assessing authority to facilitate it to pay the tax under the Act at the compounded rates. This application of the assessee was allowed by the assessing authority by an order, dated 28.06.1993 and accordingly Form No. 21A was issued to the assessee. 4. The assessee continued with its business activities from the beginning of the excise year till 15.08.1993. On 19.08.1993, the assessee made an application before the assessing authority inter alia informing them that it has closed its business for multifarious reasons and, therefore, the tax should be assessed as envisaged under Section 5(1) read with Section 17 of the Act. The said request of the assessee was rejected by the assessing authority. Aggrieved by the same, the assessee had carried the matter before the First Appellate Authority, namely the Appellate Assistant Commissioner (Appeals), Ernakulam, who by his order dated 05.12.1994 dismissed the appeal and thereby confirmed the orders of the assessing authority. 5. Being dissatisfied with the orders so passed by the First Appellate Authority, the assessee had carried the matter by way of Second Appeal before the Sales Tax Appellate Tribunal in Appeal No. ....
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....assessing authority and pay the tax in monthly instalments in the prescribed manner after deduction of the tax paid on purchase of arrack for each month in accordance with the provisions of Sub-Section (14). 10. After receipt of the application that may be filed by the assessee the assessing authority is expected to pass appropriate orders as provided under Sub-Section (16) of Section 7 of the Act. 11. Having noticed the relevant sections, we now refer to Rule 30 of the Rules. The said Rule prescribes the form which requires to be filled by the dealer/assessee while claiming the benefit of Section 7(14) of the Act. The said Rule reads as under: Rule 30: Every dealer who is eligible to pay tax at compounded rate under Section 7 of the Act and who desires to exercise the options provided for under the said section may apply to the assessing authority concerned for permission to pay tax at the rates specified therein in Form 21 on or before the first day of May of the year to which the option relates. Provided that the assessing authority may admit an application field after the prescribed date for good and sufficient reasons to be recorded in writing. (2) On receipt of the appli....
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.... by the assessing authority has some relevance for the purpose of disposal of this appeal and therefore, the same is extracted which reads as under : "The Kerala General Sales Tax Rules 1963 Form No. 21A Permission of Payment of Tax funder Section -7 (See Rule 30) Whereas M/s. Koothattukulam Liquors, Koothattukulam arrack dealers holding Registration Certificate No. 23152072 under KGST Act date 20.5.1992 carrying on the retail business of Arrack in shops Nos. 1 to 25 in Piravom range has applied for payment of tax under section 7 of the KGST Act, 1963. It is hereby permitted that the said dealer be required to pay the amount noted below. 93-94 Rs.31,80,100.- (including 10% surcharge) 1. The permission hereby granted is liable for cancellation if the dealer fails to pay the amount fixed and demanded by the Assessing Authority within the time stipulated in the notice of demand for any month. 2. The dealer shall maintain true and correct accounts of purchaser and sales effected by him during the course of business. 3. The permission is valid from 1.4.93 to 31.3.94. Muvattupuzha Signature of the Assessing Authority sd/- Addl. Sales Tax Officer- II, Muvattupuzha. To Sri....
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....agreed upon. For that purpose, the dealer is obliged to execute an agreement of undertaking to pay the sales tax in lump sum and the same is assessed at an agreed rate as envisaged under the Act itself. The scheme as introduced by the legislature provides for a bilateral agreement between the assessee and the Sales Tax Authorities with an object to dispense with the requirement of regular assessment and for the easy purpose of levy and collection of the tax payable under the Act. A dealer, who has opted for payment of lump sum amount in lieu of tax, is not required to file monthly, quarterly or annual returns of his turnover. It is the choice of a dealer to opt for compounded payment of tax and if the said choice is in accordance with the scheme and is ultimately accepted by the authority concerned, it becomes an agreed amount of tax. The department and the dealer are thereafter bound by the said agreement. 23. The compounding of the tax by way of contract of payment of tax is a lump sum on the value of contract on an agreed rate. The contract of compounding is a statutory contract under a scheme, in which the State Government can increase or decrease the rate of compounding of ta....