9911796707
TMI Blog2002 (3) TMI 906X X X X Extracts X X X X X X X X Extracts X X X X ..... nded rate under section 7(7A) of the Kerala General Sales Tax Act, 1963 which was accepted by the assessing authorities and since the petitioner's turnover was below rupees fifty lakhs, the petitioner was entitled to the benefit of concessional rate of tax at 5 per cent and therefore the officer assessed the turnover at the rate of 5 per cent under section 7(7A). The petitioner filed appeals against these assessments with substantial delay stating that being an SSI unit the petitioner is entitled to the benefit of S.R.O. No. 1728 of 1993 which provides for reduced rate of tax at 4 per cent on the products manufactured and sold by SSI units with turnover below rupees fifty lakhs in a year. The appellate authority found no justification for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate, if the turnover is below rupees fifty lakhs on the sale of goods manufactured by the petitioner. It is a matter to be examined as to whether the deemed sales under works contract also come within the scope of sale of goods as contemplated under S.R.O. No. 1728 of 1993. In order to avail the said benefit the assessment of the SSI unit has to be completed in terms of section 5C. That is first by deducting labour charges from the total turnover and then by breaking up the net turnover into various components to identify the taxable turnover of the products manufactured by the SSI unit. In the case of works contract, there will be supply of various articles and components partly manufactured and partly sourced by the petitioner from othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, the petitioner chose the latter. If the petitioner wanted to claim the benefit of concessional rate under S.R.O. No. 1728 of 1993, the petitioner should have opted for a regular assessment under section 5C of the Kerala General Sales Tax Act, 1963 and the petitioner would have been entitled to the benefit of concessional rate in respect of the taxable turnover on the item "rolling shutter" manufactured and supplied by the petitioner. In view of the option exercised by the petitioner by filing an application in form No. 21A under section 7(7A), the petitioner cannot claim the benefit of any other concessional rate. When the petitioner has opted for payment of tax at compounded rate and availed the concessional rate of tax, the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X
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