9911796707
TMI Blog2025 (1) TMI 624X X X X Extracts X X X X X X X X Extracts X X X X ..... "), and runs a Three Star Bar Attached Hotel, impugns the judgment dated 29.11.2023 of a learned Single Judge in WP(C). No. 13264 of 2023. The brief facts necessary for the disposal of the Writ Appeal are as follows: 2. The appellant had filed an application for remitting turnover tax (TOT) on compounded basis for the financial year 2021-22. The application was submitted on 29.04.2021 under Section 7 of the KGST Act. Although there is no express provision under the KGST Act for accepting an application and granting permission to the dealer for payment of tax on compounded basis, since the compounding provision is permitted to be availed on an annual basis, one would expect that a decision on the application is taken by the authority concer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation for refund of the tax paid @10% in the year 2021-22. It was at that stage that Ext.P1 order was passed by the department on the compounding application dated 29.04.2021 preferred by the appellant. It was therefore that on receipt of Exts.P1 and P2 orders, belatedly accepting the compounding application of the appellant, and completing the assessment against him, that the appellant approached this Court through the Writ Petition impugning the said orders. 5. The learned Single Judge, who considered the matter found that inasmuch as the appellant had filed his returns in Form 10-DA, which was the return that had to be used by those opting to pay tax on compounded basis under Section 7 of the KGST Act, he could not deviate from his obl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said facts that the appellant now says that when the State Government decided to grant a concession in the rate of tax payable by bar attached hotels from 10% to 5% , there was no justification in denying the said benefit of concessional rate of tax to the appellant merely because he had filed an application seeking permission to pay tax on compounded basis, more so when that application was never acted upon either by the appellant or accepted by the department. It is further pointed out, by reference to the judgment in Kalyanaraman (Supra) that the facts of the said case clearly indicate that the assessee therein had not only filed an application for paying tax on compounded basis, but had also acted in consonance therewith by filing m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee had filed an application seeking permission to pay tax on compounded basis, and had paid tax at the regular rate through a return that was to be used by dealers seeking permission to pay tax on compounded basis, the assessee could not wriggle out of his obligation to pay tax on compounded basis and seek the benefit of the concessional rate of tax, which was made applicable only to those paying tax on regular basis. He would also submit that, at any rate, against Ext.P2 order that was passed by the assessing authority the appellant also had an effective alternate remedy by way of an appeal before the First Appellate Authority under the statute. 8. On a consideration of the rival submissions, we are of the view that the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re inserted in a return that was meant to be used by paying tax under Section 7 of the KGST Act. It is also not in dispute that during the relevant assessment year, there was no communication issued to the appellant assessee from the department indicating that it was paying tax on a wrong basis. Under the said circumstances, we are of the view that for the purposes of assessment year 2021-22, there was no consensus between the assessee and the department on the aspect of payment of tax on compounded basis. This being the case and the compounded basis of payment of tax being an alternate method to the regular method of payment of tax envisaged under Section 5 of the Act, in the absence of any express indication that would clearly point to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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