9911796707
TMI Blog2000 (1) TMI 967X X X X Extracts X X X X X X X X Extracts X X X X ..... erala General Sales Tax Act, 1963 as amended on December 11, 1997. The first respondent after conducting enquiry passed an order on December 18, 1997 (exhibit P-1) allowing the compounding application and directed the petitioner to pay a sum of Rs. 27,500 as demanded in exhibit P-2 demand notice. Being aggrieved by exhibit P-1 order and exhibit P-2 demand notice, the petitioner filed exhibit P-3 revision before the second respondent which was rejected as per exhibit P-6. It took up the matter in further revision before the third respondent which was also disposed of as per exhibit P-8. By exhibits P-6 and P-8 orders, exhibit P-1 assessment order and exhibit P-2 demand notice are confirmed. The petitioner challenges exhibits P-1, P-2, P-6 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the beginning of the year or not. He further submitted that wherever the Legislature wanted to give any concession for the period during which no commercial production was made it has been specifically provided in the section itself. He, in support of the above, took me to the provisions of the proviso to section 7(1)(a) in respect of dealer in gold or silver ornaments. The Government Pleader submitted that the respondents have rightly understood the provisions of the Act and had demanded the tax at the compounded rate for the whole year even though the commercial production was made only for two months in the assessment year 1997-98. 4.. In order to appreciate the rival submissions, it is necessary to refer to the relevant provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crushing machine of size ...... Rs. 50,000 per exceeding 40.64 cm. x 22.86 cm. annum. It is significant to note that there is no provision similar to the proviso to clause (a) of sub-section (1) of section 7 providing for paying tax proportionately in case the dealer has not transacted any business for any period in a financial year. Rule 30 of the Rules provides the mode of disposing of an application submitted under section 7(1) of the Act. The relevant portion reads as follows: "30. Payment of tax at compounded rates.-(1) 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 pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th shall be paid within thirty days from the date of service of this notice or before the 15th day of the next month whichever is later and the tax for each of the remaining months before the tenth day of succeeding month, by crossed cheque or crossed demand draft in favour of the undersigned or by remittance into the Government Treasury at ............... failing which the amounts payable under this notice will be recovered as if it were an arrear of land revenue and/or fine imposed by a Magistrate and you will be liable to pay the interest prescribed under sub-section (3) of section 23 of the Act. Place: .......................... Date: ........................... Assessing Authority. Note.-If payment is made by cheque, the cheque s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is not necessary for such assessee to make application for payment of the tax at the compounded rate. It is for the assessee to consider as to whether the exercise of the option is advantageous to the assessee in any particular year. Only if it is found to be advantageous, the option need be exercised. Here in this case, the petitioner might have thought that the exercise of option as provided under section 7(1)(b) would be beneficial. After having exercised the option and have courted an order, it is not open to the petitioner to turn round and say that it is not liable to pay the tax as determined by the assessing authority in accordance with the provisions of section 7(1)(b). As already pointed out, if the Legislature wanted to give an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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