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TMI Blog2015 (10) TMI 626X X X X Extracts X X X X X X X X Extracts X X X X ..... quired to be paid by an assessee under the scheme. Section 5 A (6) which is relevant for the purposes of the instant case, states that, if the tax determined is not paid as specified in Sub Section 5, it shall be recovered along with penalty in accordance with the provisions of the Act. - while it would be open to the Revenue Department to proceed against the petitioner for recovery of the defaulted instalments under the scheme of compounding under Section 5A of the Act, their action in completing a regular assessment under Section 6 of the Kerala Tax on Luxuries Act is clearly illegal - The amounts, if any, remitted by the petitioners pursuant to the orders that have been quashed in these writ petitions shall be adjusted towards any liabil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 equal monthly instalments of ₹ 1,840/- each. It is not in dispute that the petitioner failed to comply with the monthly payment of the instalments fixed under the compounding scheme. The 1st respondent, however, instead of cancelling the application for compounding, proceeded to issue a notice to the petitioner under Section 6 (2) and (3) of the Kerala Tax on Luxuries Act proposing to complete an assessment on best judgment basis as contemplated under the said Section. Although the petitioner preferred a detailed reply to the said notice, the 1st respondent proceeded to pass Ext.P3 order of assessment, and issued Ext.P4 demand notice to the petitioner, after completing the regular assessment on best judgment basis. Thereafter, Exts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpounded basis under Section 5A of the Act, had since defaulted in complying with the provisions governing payment of tax. It is his specific contention that, when an assessee opts for the method of payment of tax on compounded basis and defaults in payment of tax under the said scheme, then the assessee would forfeit his right to continue under the compounded scheme and the revenue authorities would be well within their rights to complete the assessment for the said year on regular basis as contemplated under Section 6. 5. I have considered the rival submissions. On a perusal of Section 5A of the Kerala Tax on Luxuries Act, it is evident that, the scheme of compounding that is envisaged therein is a code in itself. There are provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax on Luxuries Act. In this connection, it is relevant to note the decisions of the Supreme Court in Bhima Jewellery v. Assistant Commissioner (assessment), Kerala and Another [2014 (71) VST 110 (SC)], and Koothattukulam Liquors v. Deputy Commissioner of Sales Tax [2014 (80) KarLJ 101 (SC)]= [(2014) 72 VST 353 (SC)] wherein it has been held that, once a compounding option is availed by the assessee and accepted by the revenue, it is not permissible for either side to withdraw from the said option. Taking cue from the said decisions, I am of the view that, in the instant case, while it would be open to the Revenue Department to proceed against the petitioner for recovery of the defaulted instalments under the scheme of compounding under Se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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