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2007 (9) TMI 597 - KERALA HIGH COURTWhether the amended provisions of section 7(a) and (b) of the Kerala General Sales Tax Act, 1963 can be applied to those dealers who had opted for payment of turnover tax for the assessment year 2006-07 before the amendment was brought into the statute and whether the dealers are entitled to pay tax at the rate prescribed in clause (a) of section 7 of the KGST Act before its amendment on the purchase of liquor for the assessment year 2006-07? Held that:- By using the expression "whichever is higher" immediately after clause (a) and clause (b) of section 7, the Legislature intends to provide only one rate under the "compounding scheme " for payment of turnover tax under the Act. Though a dealer may exercise his option to pay turnover tax under compounding scheme under clause (a) of section 7 of the Act, the assessing authority need not give him permission as required under rule 30 of the Rules, if one hundred and fifteen per cent of the turnover tax payable or paid for three consecutive years is higher than what is prescribed under clause (a) of section 7 of the Act and can still insist on the dealer, to pay turnover tax at the highest rate as provided either under clause (a) or (b) of section 7 of the Act. This is made clear by the Legislature by making certain amendments in the Kerala Finance Bill, 2007. For the reasons stated above, we hold that there are no merits in these appeals. They are accordingly dismissed. After the judgment was pronounced in open court, the learned counsel appearing for the assessee would request this court to grant permission to the assessees either to opt for compounding under the new provisions or in the alternative to permit them to request the assessing authorities to complete the assessments in their case as provided under the charging provision. In our view, the request appears to be reasonable. Therefore, the petitioners are granted permission either to opt for payment of the turnover tax under the compounding scheme or as provided under section 5(2) of the Act within a month's time from today. If such a request is made, the assessing authority would consider the same in accordance with law.
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