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TMI Blog2011 (6) TMI 719X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant not only applied for compounding, but paid tax in terms of the compounding application and even filed return based on the same. The appellant has, therefore, no right to withdraw from the compounding scheme or opt for regular assessment on the sales turnover. - Writ Appeal No. 746 of 2011 - - - Dated:- 23-6-2011 - RAMACHANDRAN NAIR C.N. AND BHABANI PRASAD RAY JJ. V.P.Sukumar and Jairam V. Menon for the appellant Mohammed Rafeeq, Government Pleader, for the respondents JUDGMENT The appeal is filed against judgment of the learned single judge rejecting the appellant's challenge against assessment of turnover tax on the sale of liquor in the appellant's bar hotel at the compounded rate provided under s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng is applied for, the assessing officer turned down the request and completed the assessment based on the application for compounding filed by the appellant and allowed by the assessing officer. The Government Pleader appearing for the State contended that when compounding application is filed and the same is accepted and tax is also remitted by the appellant, the appellant cannot after four years request for an option to revert back to regular assessment based on sales turnover. Another contention raised by the Government Pleader is that the Commissioner's letter issued after four years of the relevant year also has no significance or binding nature on the assessing officer particularly, when the assessee applied for and assessing off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the normal course, a hotelier is liable to pay turnover tax on the sales turnover of liquor at 10 per cent. However, if the hotelier wants to pay tax at 140 per cent of the purchase turnover of liquor, they can settle their liability without any requirement of production of sales accounts or turnover. For hoteliers who have three years' business in liquor prior to the year in which compounding is applied for, the Department is given an option to fix the turnover tax under the compounding scheme at 115 per cent of the highest turnover tax paid or payable based on accounts for any of the three preceding years, if the same is higher than turnover tax payable on 140 per cent of the purchase turnover of liquor for the year for which compoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hly misleading because it is issued only on August 10, 2010 and the same obviously cannot apply for the assessment year 2006-07. When a compounding application is submitted by the assessee and the assessee starts making payment of tax under the scheme of compounding which is not objected by the assessing officer, the only presumption is that the officer accepted the offer. In fact, in the case of an assessee who has paid tax under the compounding scheme after making an application, assessment can be made only in terms of the compounding scheme. The payments made in such cases can be treated as payment of admitted tax over which later the assessee cannot raise a dispute at all. It is also to be noted that an assessee who is otherwise liable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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