9911796707
TMI Blog2007 (9) TMI 574X X X X Extracts X X X X X X X X Extracts X X X X ..... RAN NAIR C.N. , J. C.N. RAMACHANDRAN NAIR J. The petitioner, a jeweller, is challenging exhibit P2 order whereunder the assessing officer has computed the value added tax payable by the petitioner at compounded rate under section 8(f)(i) of the Kerala Value Added Tax Act, 2003 for the assessment year 2006-07. The petitioner's case is that the petitioner is liable to pay tax at compounded rate under section 8(f)(ii) of the Act read with Explanation 1 to the said section and not under section 8(f)(i) read with Explanation 1 as computed by the officer. The petitioner admittedly commenced business in February, 2004 and had carried on business only for 51 days during the financial year 2003-04. The petitioner had business for the whole ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Explanation I. Where during any such preceding year, the dealer had not transacted business for any period in that financial year, the tax payable for the twelve months shall be calculated proportionately on the basis of the tax payable for the period during which such dealer had transacted business. The contention of the petitioner is that since the petitioner did not carry out business for 12 months in 2003-04, the petitioner's liability for tax at compounded rate is under sub-section (ii) of section 8(f) and not under sub-section (i) of the said section. The Government Pleader, on the other hand, supported the order of the officer and contended that Explanation applies to both sub-sections (i) and (ii) and since the petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during which petitioner carried on business and worked out tax at compounded rate for the year 2006-07. The petitioner's contention that Explanation applies to only section 8(f)(ii) is incorrect. In fact, Explanation applies to sub-section (ii) also and such situation applies to only dealers who had carried on business only for part of the previous year and who had not carried on business for two preceding years prior to the previous year. In other words, sub-section (ii) of section 8(f) read with Explanation applies to a dealer who commenced business in the previous year relevant to the year for which tax at compounded rate is to be computed where such dealer had not carried out business for the full period of the said previous year. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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