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2019 (2) TMI 1086 - HC - VAT and Sales TaxCompounding of tax - Section 7 of the Kerala General Sales Tax Act, 1963 - power of rectification - Held that:- As the computation being on the one hand under clause (a) and the other under clause (b), and the liability of the dealer being to pay the tax computed under either of these heads, whichever is higher. The contention raised by the assessee is on the re-opening not being permissible, after the permission has been granted in the commencement of the year and the assessed tax not being contemplated as coming within the provisions of Section 7 - Section 7 is in lieu of the tax payable under Section 5. A dealer desirable of exercising an option under Section 7 has to make an application at the commencement of the year. The application has to be considered and payment of compounded tax permitted by the Department. On such permission being granted, as held by the Honourable Supreme Court in Bhima Jewellery [2014 (10) TMI 411 - SUPREME COURT OF INDIA], there is a bilateral agreement between the parties from which neither can resile from. The assessee cannot claim to be assessed under Section 17, determining tax under Section 5. Nor can the Department resort to such an assessment, based on the turnover of that particular year. However, it cannot at all be said that there is no assessment contemplated insofar as a dealer opting for the compounding provision - The dealer who opts for payment of tax under Section 7 cannot be said to have been absolved of the liability for all the consequences arising from such an assessment made for the previous three years which is the reference point for determining the tax payable in the relevant year under clause (b) of Section 7. The assessees would appear before the AO and necessarily adjustments would be made insofar as the compounding tax computed for the subject assessment years - appeal allowed.
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