2010 (11) TMI 1081

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....the KGST Act?  (B) Has not the Appellate Tribunal misconstrued, rather over-read the scope of Section 7(1)(b) in the matter of extending compounding facility to the assessee in respect of its sale of M-sand and granite metals?  (C) Is not on a true construction of the relevant provisions "M-sand" a distinct commodity falling under Entry 128 of the First Schedule from "granite metals" an item falling under Entry 70 and that granite metals alone is covered by Section 7(1)(b) of the Act for the option for compounding? This revision has been preferred at the instance of the Government, being aggrieved of the order passed by the Appellate Tribunal, in favour of the assessee, giving the benefit of compounding to both the 'main ....

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....e learned counsel appearing on behalf of the respondent. 5. The learned Government Pleader appearing for the State/revision petitioner submits that, the verdict passed by the Tribunal is quite contrary to the provisions under Section 7(1)(b) of the KGST Act, which reads as follows: 7. Payment of tax at compounded rates.-- xxxx xxxx xxxx 1(b) any mechanised crushing unit producing granite metals may, at its option, instead of paying tax in accordance with the provisions of that sub-section, pay tax at the following rates, namely:-- [Explanation.--Primary crusher, shall also be reckoned for the purpose of computation of the quantum of compounded tax] The learned Government Pleader submits that, the item specifically mentioned under ....

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....basis of the tax payable for the period during which such dealer had transacted business: Provided also that where such a dealer acquires any running business or a branch of a business with respect to gold, silver ornaments or wares during the year, the amount of compounding tax payable in respect of such business shall be calculated in accordance with the provisions of this clause as if it were an independent business, taking into account the turnover conceded in the return or accounts thereof for the previous year with respect to that business [or on the quantum of compounded tax fixed for the previous year in accordance with clause (a)]: [Provided also that there a dealer paying tax in accordance with the provisions of this subsectio....