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2010 (11) TMI 1081 - KERALA HIGH COURTPayment of tax at compounded rates - Section 7(1)(b) of the KGST Act - sale of M-sand and granite metals - benefit of compounding to both the 'main product' (granite metal) as well as to the 'by-product' (M-sand) - assessment year 2003-04 - Held that:- Section 7 has been incorporated in the statute book as an alternative measure for realization of the tax, instead of undergoing the ordeal with reference to the charging provision under Section 5. It is also pertinent to note that, such benefit of compounding is not open to all sectors, but the same stands confined to 'two' different situations/units, as taken care of by Sections 7(1)(a) and 7(1)(b) - While Section 7(1)(a) deals with the dealers of gold/silver ornaments or wares, Section 7(1)(b) deals with mechanised 'crushing units' producing Granite metals. Thus, the benefits contemplated under Section 7(1)(b) is with reference to the 'unit' and not otherwise - AO has no case that, the assessee is not running a mechanized crushing unit producing granite metals and in fact has granted compounding benefit, however confining it to the 'main product' 'Granite metal' alone; while the M-sand (by-product) is sought to be reckoned under the residual entry, imposing higher rate of tax; which has been rightly interfered by the Tribunal. The finding of the Tribunal that the benefit of compounding has to be given to the 'unit' both in respect of the 'main product' (Granite metal) and in respect of the by-product (M-sand) is perfectly right - Revision Petition is dismissed.
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