2015 (10) TMI 853

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..... For the year 2010-11, the respondent-assessee opted for payment of tax at compounded rate under section 7(1) of the Act. Permission was granted by the assessing authority as per order dated September 14, 2010. There is no dispute that the assessee had paid tax up to August 2010 at compounded rate. Thereafter, the assessee sought for withdrawal of permission to pay tax at compounded rate. The reason given was that the Excise Commissioner had cancelled its licence and resultantly, there was no purchase or sales during the period from September 2010 to December 2010. The assessing officer rejected the request of the assesse and demanded turnover tax for the months of September to December 2010 at compounded rate. The first appellate authority .....

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..... the turnover of foreign liquor calculated at the rates in clauses (a) or (b) of items (i) and (ii), respectively, whichever is higher,- (i) in respect of a bar attached hotel of and below two star, (a) at one hundred and forty per cent. of the purchase value of such liquor, in the case of those situated within the area of a municipal corporation or a municipal council or a cantonment, and at one hundred and thirty five per cent. of the purchase value of such liquor, in the case of those situated in any other place; or (b) at one hundred and fifteen per cent. of the highest turnover tax payable by it as conceded in the return or accounts or the turnover tax paid for any of the previous consecutive three years; and" 4. There is no disput .....

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..... he assessee will have to pay the said sum. In this case, it may be true that on the basis of the cancellation of the licence by the Excise Commissioner there were no purchases or sales during the months in question. But that would not be the end of the enquiry. We would have to enquire as to what is the tax that he would have to pay if one took into consideration the provisions of clause (b). As far as clause (b) is concerned, it is based on percentage of the turnover as provided therein for the previous three years. The assessee does not have a case that he did not have any turnover and that the amount of tax could not be arrived at on the basis of the operation of clause (b). Therefore even proceeding on the basis that the tax which shoul .....

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