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2014 (2) TMI 962 - KERALA HIGH COURTAssessment of turn over tax – Compoundment u/s 7 of the KGST Act – Assessment on the basis of the actual sales turn over of IMFL – Held that:- On a reading of section 7 of the KGST Act (as amended) it is evident that Bar attached Hotels were permitted to make payment of turn over tax at the compounded rate, notwithstanding the normal liability for payment of tax at the rate as contemplated under section 5(2). The facility is not extended to Hotels having classification above '3 Star' level and for Heritages or Clubs. With respect to others compounding is permitted at their option In such case the assessees are permitted to pay TOT at the turn over calculated at 140% of the purchase value of the liquor, with respect to hotels situated within municipal area. It is pertinent to note that, under section 7(b) an alternate method for calculation of the turn over is provided for adopting 150% of the highest turnover tax conceded with respect to the previous 3 consecutive years. But when calculating the turn over under the two alternate methods whichever is higher need be adopted - methods of calculation provided under section 7(a) and 7(b) are on the alternative. The authority can fix the turn over by adopting the method as provided under sub section (a) when it is not possible to adopt the method of calculation under section 7(b) - Decided against assessee.
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