2010 (3) TMI 1023

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.... Tribunal was justified in sustaining a rectification order issued by the assessing officer under section 43 of the Kerala General Sales Tax Act whereunder original assessment on the turnover tax liability of the petitioner under section 7 of the Act was modified to cover entire purchase value of liquor sold during the relevant assessment year. We have heard counsel appearing for the revision peti....

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....n (2) of section 5, any bar attached hotel, not being a star hotel and above three star hotel, heritage hotel or club, may, at its option, instead of paying turnover tax on liquor in accordance with the provisions of the said sub-section, pay turnover tax at the rate specified under the said sub-section on the turnover of foreign liquor calculated at the following percentage of the purchase price ....

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....year for the purpose of payment of turnover tax at compounded rate under section 7 of the Act. The assessing officer rectified the assessment by invoking the powers under section 43 by taking into account the actual purchase turnover of liquor sold in the relevant year which includes opening stock but by excluding closing stock. Rectified order was contested before the lower authorities by the pet....

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....able under the normal provision, that is charging section 5(2) is at the compounded rate on the actual sales turnover, the tax payable under the compounded scheme in lieu thereof under section 7 is based on the purchase turnover. Obviously both the provisions provide for payment of turnover tax on the very same liquor sold in the relevant year because under the normal scheme tax is payable on the ....