9911796707
TMI Blog2007 (11) TMI 683X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the assessment year 2001 -2002. The request made in the application was granted by the Sales Tax Officer / registering authority by his order dated 13-8-2002. The effect of the registration certificate was given from 29-11-2001. 3. In this proceeding, we are concerned with the assessment year 2001 -2002. 4. The petitioner had filed an application before the assessing authority with a request to permit him to pay tax under the Act at the compounded rate. In the application itself, it was made known to the assessing authority that the assessee had received certain amounts towards the contract work done by him prior to the date of filing of the application seeking permission to pay the tax at the compounded rate. The request of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same financial year? (ii) Whether the benefit of Section 7(7) of the KGST Act is available only to the registered dealers under the said Act? (iii) Whether the tribunal is justified in cancelling the first appellate order when there is no valid reason to deviate from the findings of the first appellate authority? (iv) Whether the Assessing Authority is justified in the facts and circumstances of the case in completing the assessment without affording adequate opportunity to the assessee to file a reply and to substantiate his contentions? 8. Learned counsel Sri. Bobby John, appearing for the assessee would submit that the findings and conclusions reached by the assessing authority and the Tribunal are contrary to the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be noticed. 11. Sub-section (7) of Section 7 of the Act authorizes that every contractor in civil works may opt for payment of tax at the rate of two percent on the whole amount of contract. 12. Rule 30A of the Rules, 1963 provides the procedure for making an application by a civil contractor, who intends to pay the tax at the compounded rate. The said rule is as under: 30A(1) Notwithstanding anything contained in Rule 30, every contractor engaged in civil works of construction of building, bridge, road or dam may opt to pay tax in accordance with sub-section (7) of Section 7 in respect of each such contract. Explanation:- A composite and indivisible contract for construction of building shall be construed as a civil work of co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce with sub-rule (4) above. (6) In respect of contract on which tax under this Act was already deducted by the awarder, such amount shall be allowed to be deducted as tax already paid provided a certificate obtained from the awarder is produced showing the amount and nature of contract, the amount deducted and the mode of remittance to Government. (7) When the tax payable under sub-section (7) of Section 7, for the contract amount received before the coming into force of these rules exceeds for a period of more than one year, the arrears of tax which exceeds that due for a year may be permitted to be paid in instalments within a period of one year as permitted by the Deputy Commissioner on application by the contractor. 13. Sub-r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... approached the assessing authority to grant permission to pay the tax at the compounded rate and the application in this regard was after receipt of the contract amount from the awarder of the contract. The said application, in our opinion, is rightly rejected by the assessing authority, may be on a different ground. We do not accept the reason so assigned by the assessing officer for rejecting the application filed by the petitioner for grant of composition benefit under sub-section (7) of Section 7 of the Act. 16. Even otherwise also, in our opinion, the assessee is not eligible and entitled to pay tax at the compounded rate in view of sub-rule (2) of Rule 30A of the Rules. If for any reason the petitioner intends to avail the benefit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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