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2009 (3) TMI 919 - KERALA HIGH COURTValuation - compounded rate - The appellant's case is that only in the pharma division they have paid tax at compounded rate and so far as other divisions are concerned, drugs and medicines sold cannot be subjected to assessment at compounded rate under section 8(e) of the Act - Held that: - even without a formal application for compounding, the appellant adopted the scheme of compounding for payment of tax in respect of drugs and medicines which is at four per cent on MRP. Proviso (b) to Explanation to section 8(e) makes it clear that when tax is collected at the compounded rate on MRP by the seller, the purchasing dealer is entitled to exemption. Going by the collection of tax in the pharma division the appellant cannot deny that they have not opted for payment of tax at compounded rate under section 8(e) of the Act. All what the Commissioner has stated is that once the appellant has started billing in accordance with compounding scheme, then the same itself amounts to opting to pay tax under the compounding scheme and the appellant cannot therefore back out of the same. Appeal dismissed - decided against appellant.
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