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2016 (12) TMI 1695 - HC - VAT and Sales TaxPayment of tax at compounded rate - works contracts - The singular contention of the petitioner is that they had already been granted an order to pay tax at compounded rates under the provisions of Section 8(a)(ii) of the Act and that, therefore, they are eligible to pay tax at such rates for all the works that they had obtained for execution. Held that: - It is ineluctable that the provisions to pay tax at compounded rates is only in lieu of the obligation to pay tax under Section 6 of the Act. Therefore, the primary charging Section is always Section 6 of the Act and Section 8, which provides for payment of tax at compounded rates, is only an optional method offered to the assessee for ease and convenience in payment of tax. The main charging Section, namely, Section 6 of the Act, proposes levy of tax on sale or purchase of goods. It is admitted by the petitioner and is evident from the permission granted under Section 8 of the Act, which orders are produced as Annexure-A in the revisions, that they had applied for compounding of certain works contracts covered by a particular work order but not for other works that were being undertaken by them. They had, however, claimed that going by the third proviso to Section 8(ii), they are entitled to pay tax even for those works at the compounded rates. This is totally unacceptable and against the express intendment of the provisions of the section. The petitioner, having accepted the orders of the Assessing Authority under Section 8(a)(ii) of the Act to pay tax at compounded rates for certain works, cannot renege from the obligation cast upon them under the statute and then try to interpret the provisions to suit its convenience and its cause to claim benefits which they were never entitled to and which was never intended by the statute to be granted. The petitioner would be entitled to pay tax at the compounded rates only for the works for which permission was granted and not for the others. Revision dismissed.
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