2017 (7) TMI 1198 - HC - VAT and Sales Tax

Compounding of Tax Liability - The petitioner s case is that the operation of the crusher unit was stayed by this Court on 06.10.2010 and thereafter there was no commercial production or sale - Held that - The issue is covered against the petitioner in the light of the judgment in Raju Jacob vs. Sales Tax Officer 2006 (1) TMI 574 - KERALA HIGH COURT , where it was held that once assessee had opted payment of tax by compounding and received the demand notice, cannot withdraw the option subsequently - the petitioner s request for exemption from tax for the subsequent quarters cannot be accepted - petition dismissed.

Summary

The petitioner, a registered firm operating a crusher unit, sought exemption from tax after the unit's operation was stayed by the court. The court dismissed the petition, citing a previous judgment that once tax is compounded, the option cannot be withdrawn.