9911796707
TMI Blog2003 (6) TMI 458X X X X Extracts X X X X X X X X Extracts X X X X ..... ly. For the said two years the assessee had applied for payment of tax at the compounded rate as provided under sub-section (7A) of section 7 of the Act (for short "the Act"). It appears that the assessee had made an application in form 21B prescribed under rule 30A of the Kerala General Sales Tax Rules, 1963. The assessing authority had rejected the said application on the ground that the assessee had not complied with the requirements of sub-section (11) of section 7 of the Act which provides for filing the returns showing all the contracts he had undertaken along with certificates from the awarders. It is specifically stated that the said application was not accepted since the assessee had not produced the contracts entered into with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the assessee and the awarders at the time of filing the application for compounding and that the assessing authority cannot insist for production of the contracts at the stage of compounding. The counsel also submitted that the provisions of section 7(11) comes into operation only after the close of the assessment year with respect to which the compounding facility is granted, as is evident from the said provision itself. The counsel also took us to the relevant provisions of section 7 and also rules 30, 30A and the various forms, form 21 and form 21A in support of his contention. 4.. The learned Special Government Pleader appearing for the respondent, on the other hand, submitted that by virtue of the provisions of sub-section (9) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jected the same solely on the ground that the assessee did not produce the contracts. So the question for consideration is as to whether the assessee is bound to produce the contracts or any other documents along with the application for compounding or during the pendency of such application if required by the assessing authority. For adjudication of the said question it is necessary to refer to the relevant provisions in the Act and the Rules. Section 7 deals with the payment of tax at the compounded rates. Sub-section (7) thereof states that notwithstanding anything contained in sub-section (1) of section 5 every contractor, in civil works of construction of building, bridges, roads, etc., may at his option instead of paying tax in accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, to permit him to pay the tax in accordance with any of the said sub-sections. Sub-section (9) provides that on receipt of an application under sub-section (8), the assessing authority may grant the permission or, for good and sufficient reasons to be recorded in writing, reject the same. Sub-section (11) provides that any contractor opts for the payment of tax in accordance with the provisions of subsections (7) and (7A) shall file the returns showing all the contracts he has undertaken along with certificates from the awarders, showing the whole amount of contract and the details of tax deducted and remitted to Government and if the particulars are correct and complete, the assessing authority may summarily make an assessment on that ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate, such claim shall be accompanied by a statement in the form specified therein. Rule 30A provides the procedure in respect of the matter covered by sub-section (7) of section 7. Since we are not concerned with the said situation it is not mentioned. Form 21 prescribed under rule 30(3)(i) mentioned about the application for permission under section 7. However, in the body it is seen that the reference is "for permission in form 21A to pay tax at the rates specified in section 7 read with rule 30". However, the said rule also provides for submission of a return in form No. 9 showing the annual total turnover and taxable turnover for the preceding year and another return in form No. 10 showing the estimated total turnover and taxable turno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the view that there is no requirement of production of the agreement and other details at the time of grant of permission. 8.. As we have already noted the only case of the assessing authority is that the assessee has not produced the contract. The Tribunal was under the impression that sub-section (11) of section 7 will apply. In the light of what we have stated there is no substance in the assumption of the assessing authority that the contract and other documents, if any, has to be produced to enable the assessing authority to grant permission for compounding. The Tribunal has also erred in thinking that the production of the contract and other documents is required as a condition for grant of permission as contemplated under su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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