9911796707
TMI Blog2009 (2) TMI 771X X X X Extracts X X X X X X X X Extracts X X X X ..... e KGST Act read with rule 30(1) of the Kerala General Sales Tax Rules, 1963 for the assessment year 2000-01. Even though application for payment of tax at compounded rate was furnished in form 21 on due date, the assessing officer did not pass any orders or issue form 21A or demand in form 22 as required under the provisions of the Act and Rules. However, the respondent-assessee started remitting tax along with monthly returns in terms of the compounding application filed by him. The assessing officer did not raise any objection in the monthly returns filed by the respondent-assessee for the whole year whereunder tax payment was strictly in terms of the compounding application and the monthly tax paid for the 12 months was at a uniform rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pon the compounding application filed by him by remitting the tax strictly in terms of it, the Tribunal dismissed the review application stating that the same is not tenable. It is against this, the State has filed the revision case. We have heard Government Pleader appearing for the petitioner and counsel appearing for the assessee. During hearing of this revision, counsel for the respondent-assessee pointed out that the State has not filed separate revision against original order of the Tribunal and so much so, merits of the case cannot be considered by this court. However, Government Pleader pointed out that the challenge against order in review application is sufficient to redress the grievance of the State inasmuch as if this court fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se to consider the relevance of the same nor did it consider the effect of pendency of an application filed in form 21 which was not withdrawn by the respondent-assessee at any point of time, but continuously acted upon the same by remitting tax for all the year along with 12 monthly returns filed strictly in terms of the compounding application originally filed by him. It is a fact that the compounding application filed by the assessee remained in force and the assessee acted upon the same by remitting tax along with monthly returns strictly in terms of the compounding application. At no point of time the assessing officer rejected the compounding application and when assessment was taken up, he accepted the compounding application but ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnished by the assessee in form 21. The conduct of the assessee obviously shows that the assessee insisted that the assessing officer accept the compounding application and the assessing officer at no point of time acted against this request of the assessee. It is clear from the order that application for compounding was considered by the assessing officer while considering assessment and after correcting the mistake with regard to tax payable for 1998-99, the assessing officer, in fact, accepted the compounding application and allowed the claim of the assessee. It is seen that the assessee has not withdrawn the application for compounding at any time and on the other hand, the assessee acted upon the said application and remitted the tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion for compounding is pending and monthly returns are accepted based on the same, the assessing officer can consider acceptance of application for compounding filed in form 21 in the course of assessment itself. We, therefore, find nothing irregular in the officer accepting the scheme of payment of tax at compounded rate offered by the assessee in the course of regular assessment. Therefore, the scope for appeal is only limited to the assessee's challenge against modification of the tax payable for earlier year namely, 1998-99. We also make it clear that since the modification in the tax payable at compounded rate is made by the officer only in the course of assessment, no interest could be demanded from the assessee under section 23 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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