9911796707
TMI Blog2015 (4) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... o be placed on Section 8(b) of the Kerala Value Added Tax Act that deals with payment of tax at compounded rates by dealers producing granite metals with the aid of mechanized crushing machines. The said provision reads as under: "(b) Any dealer producing granite metals with the aid of mechanized crushing machine may, at his option, instead of paying tax in accordance with the provisions of the said sections, pay tax at the following rates, namely:- (i) for each crushing machine of size not exceeding 30.48 cm x 22.86 cm = [Rs.40,000 per annum] (ii) for the each crushing machine of size exceeding 30.48 cm x 22.86 cm but not exceeding 40.64 cm and 25.40 cm = [1,40,000 per annum] (iii) f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Metals, the computation of tax under Section 8(b) for the primary crusher must be in an amount that represents 50% of the amounts due on the two secondary crushers that are employed in that unit and not with reference to the three secondary crushers that are employed by the petitioner in both the units collectively. It is pointed out by the petitioner that this contention had been accepted by the respondents for the earlier assessment year 2008- 2009 and Exts.P2 and P3 orders have been produced in support of the said contention. It is the specific case of the petitioner that when it came to the application of the compounding provision for the assessment year 2009-2010, the respondents took the stand that while computing the liability in res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its of the petitioner are also treated as separate units for the purposes of Section 20(3) of the Kerala Value Added Tax Act, then the compounding provisions under Section 8(b) of the Act would have to be independently applied to each of the units and on doing so the position that prevailed for the assessment year 2008-2009 would apply for the assessment year 2009-10 also. 3. A counter affidavit has been filed on behalf of the 1st respondent wherein it is pointed out that as per the scheme of payment of tax on compounded rates applicable to Metal Crushing Units, the compounding provisions have to be applied in respect of a dealer and not in respect of a unit. Thus viewed, the separation of units belonging to a single dealer may not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded rate. As per the scheme of S.8 therefore, the mere fact that the petitioner dealer has two separate units with varying numbers of crushers in them will not be of any significance since the computation of tax under the provision is not with reference to the crushers in a unit but with reference to the crushers employed by the dealer in the course of his business. Since the petitioner admittedly has one primary crusher and two secondary crushers in one unit and a third secondary crusher in the second unit, the computation of tax in terms of Section 8(b) of the Kerala Value Added Tax Act must necessarily be by reckoning all the crushers and, consequently, the compounded tax for the primary crusher has necessarily to be at 50% of the aggreg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... treating those premises as separate units. When it came to the granite metal business carried on by the petitioner, the 3rd respondent found that there were two units where the said business was carried on and accordingly, he took the view that both these units should be treated as a single unit since it pertained to the same line of business. I am of the view that there is nothing illegal or arbitrary in the said view of the 3rd respondent insofar as he has applied a relevant yardstick viz. the nature of business, while considering the application of the petitioner for treating the places of business as separate units for the purposes of levy, assessment, collection of tax under the Act. The exercise of discretion by the 3rd respondent ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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