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TMI Blog2014 (10) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... ct and therefore will not be liable to pay additional tax under the amended provision of the KGST Act. The aforesaid proposition is in agreement with several decision of this court, where the court has reached the conclusion that the option of composition of tax is like a bilateral agreement between the parties with an object to dispense with the rigors of regular assessment. The dealer is given the choice to opt for compounded payment of tax and once the option is exercised and the same is accepted by the concerned authority, it is no longer open to the dealer to request for a regular assessment as envisaged under section 5 or 5A of the KGST Act. Therefore, by no stretch of imagination, can it be said that when a dealer is assessed under c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f are as under : The appellant is a dealer in gold and silver ornaments. It is registered both under the KGST Act and the Central Sales Tax Act, 1956. The appellant had opted to pay tax at the compounded rate as provided under section 7 of the KGST Act and the request of the appellant was accepted by the Department. The appellant continued to pay tax at the compounded rate for the assessment year 2001-02. On July 23, 2001, the Legislature had brought in an amendment to the KGST Act by inserting section 5D to the KGST Act, levying additional tax on those dealers who are taxable under section 5 and 5A of the KGST Act. The appellant in accordance with this provision deposited additional tax for the months of July and August 2001. Being aggr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on tained in sub-section (1) of section 5 . The purpose is to give the provision contained in the non obstante clause an overriding effect to the provision of sub-section (1) of section 5 of the KGST Act. The said section speaks of Reported as Bhima Jewellery v. Assistant Commissioner (Assessment), Special Circle [2003] 129 STC 90 (Ker). Reported as Bhima Jewellery v. Assistant Commissioner (Assessment), Special Circle [2004] 137 STC 377 (Ker). levy of tax on sale or purchase of goods on the taxable turnover. The head ing of section 7 of the KGST Act speaks of payment of tax at the com pounded rate in lieu of tax payable under section 5 or 5A of the KGST Act. Now we refer to section 5D of the KGST Act which is inserted with ef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... particular rate. In the instant case, the dealer is not being taxed under section 5 or section 5A of the KGST Act but is paying tax at the compounded rate as envisaged in section 7 of the KGST Act and therefore will not be liable to pay additional tax under the amended provision of the KGST Act. The aforesaid proposition is in agreement with several decision of this court, where the court has reached the conclusion that the option of composition of tax is like a bilateral agreement between the parties with an object to dispense with the rigors of regular assessment. The dealer is given the choice to opt for com pounded payment of tax and once the option is exercised and the same is accepted by the concerned authority, it is no longer open ..... X X X X Extracts X X X X X X X X Extracts X X X X
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