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2014 (10) TMI 411 - SC - VAT and Sales TaxAdditional tax under section 5D of the Kerala General Sales Tax Act, 1963 - Payment of tax @ compounded rate u/s 7 of the Act - Assessment under regular provisions when assessee has choosen compounded levy - Held that:- additional tax can be levied and collected by the Revenue from a dealer who is liable to pay tax under sections 5 and 5A of the KGST Act at a particular rate. In the instant case, the dealer is not being taxed under section 5 or section 5A of the KGST Act but is paying tax at the compounded rate as envisaged in section 7 of the KGST Act and therefore will not be liable to pay additional tax under the amended provision of the KGST Act. The aforesaid proposition is in agreement with several decision of this court, where the court has reached the conclusion that the option of composition of tax is like a bilateral agreement between the parties with an object to dispense with the rigors of regular assessment. The dealer is given the choice to opt for compounded payment of tax and once the option is exercised and the same is accepted by the concerned authority, it is no longer open to the dealer to request for a regular assessment as envisaged under section 5 or 5A of the KGST Act. Therefore, by no stretch of imagination, can it be said that when a dealer is assessed under compounding scheme, one is also being asses sed under the regular procedure of assessment, namely, section 5 or 5A of the KGST Act to have been made liable to pay additional tax as per section 5D of the KGST Act. High Court is not justified in confirming the demand notice issued by the assessing authority for payment of additional tax on the appellant who had already opted for paying tax at the com pounded rates under section 7 of the KGST Act - Decided in favour of assessee.
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