TaxTMI 
TaxTMI 
2013 (3) TMI 585
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....red to as "the Act") from 2010-11 onwards, the petitioner had opted for payment of tax at compounded rates as provided under section 8(f) of the Act. 2. According to the petitioner, with effect from March 31, 2012, they closed their branch at Kollam and by exhibit P2 communication intimated the same to the first respondent. For 2012-13 also the petitioner opted for compounding and that was accepted and the tax payable was specified in exhibit P4 order based on the tax paid for the previous year. However, in view of the closure of their Kollam Branch, with effect from April 1, 2012, they paid tax under section 8(f) deducting 1/3rd from the tax payable for that year. 3. The petitioner submitted exhibit P5 seeking rectification of exhibi....
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.... (Assessment), Special Circle, Commercial Taxes Department [2004] 137 STC 377 (Ker). The second contention raised by the learned counsel for the petitioner is that Explanation 3 to section 8(f)(1) provides that a dealer opting for payment of tax under clause 8(f) shall pay tax at compounded rates in respect of all their branches existing in the year, to which, the option relates. This according to him means that if the branch is not existing, dealer is not liable to pay tax for the branch. 5. On the other hand, according to the learned Government Pleader, payment of tax under section 8 is purely optional and the rights and obligations of the dealer are to be determined by the provisions contained therein. It is pointed out that none of t....
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....sions of section 6, pay tax at; (a) one hundred and fifteen per cent, in case their annual turnover for the above goods for the preceding year was rupees ten lakhs or below; (b) one hundred and twenty per cent, in case their annual turnover for the above goods for the preceding year was above rupees ten lakhs and up to rupees forty lakhs; (c) one hundred and thirty five per cent; in case their annual turnover for the above goods for the preceding year was above rupees forty lakhs and up to rupees one crore; and at (d) one hundred and fifty per cent; in case their annual turnover for the above goods for the preceding year exceeded ....
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.... at one hundred and fifteen per cent of such tax paid during the previous year, in case their turnover for the above goods for the preceding year was above rupees forty lakh and up to rupees one crore; and (d) at one hundred and twenty five per cent of such tax paid during the previous year, in case their turnover for the above goods for the preceding year exceeded rupees one crore: Provided that the tax payable under this sub-clause by the dealers covered under Explanation 6 of this clause shall be at the appropriate percentage of tax mentioned in (a), (b), (c) or (d) above, of the tax redetermined under the said Explanation." 9. Before I proceed to examine the contentions raised, ....
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....refore, the rights and obligations of a dealer, who has opted for payment of tax under section 8(f), will have to be determined in the light of the words that are used by the Legislature. Reading of section 8(f)(i) shows that any dealer in ornaments or wares or articles of gold may, at his option, pay tax as provided therein instead of paying tax in respect of such goods in accordance with the provisions of section 6. Clause 8(f)(i)(a) to (d), prescribes the rate of tax to be paid by the dealer, which is related to his turnover. Sub-clause (v) prescribes the rate of tax to be paid for the succeeding years, where also the dealer has to exercise option. Reading of Explanation 3 of section 8(f) shows that a dealer opting for payment of tax und....
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....ner relied on Explanation 3 to the section and according to him, in view of the Explanations, the liability of the dealer is only to pay tax for the existing branches. This section only provides that a dealer opting for payment of tax under section 8(f) shall pay compounded tax in respect of all their branches existing in the year. In other words, to my mind, this section only means that a dealer in gold, who has opted for payment of tax under section 8(f), cannot exclude any of his branches from payment of compounded tax and it does not mean that in case a branch is closed after option is exercised, the dealer is entitled to get reduction of the tax payable under the section. Therefore, the language of the statute does not entitle the peti....