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2014 (3) TMI 782 - SC - VAT and Sales TaxOpting out of scheme of compound levy / composite method of taxation on ground of closure of business - Whether a fortiori can be taken in the lean season when the assessee voluntarily and with full knowledge of features of alternate method of taxation has opted to be governed by it - Correctness of the order passed by the High Court - Kerala General Sales Tax Act, 1963 – Held that:- The compounding of the tax by way of contract of payment of tax is a lump sum on the value of contract on an agreed rate. The contract of compounding is a statutory contract under a scheme, in which the State Government can increase or decrease the rate of compounding of tax. It is an invitation to offer for compounding for each financial year resulting in an agreement qua such financial year. Therefore, the contract between the assessee and the assessing authority can be then annulled by the parties only under the circumstances which are provided under the provisions of the Contract Act. The composition of tax is nothing but an alternative route to assessment regulated by the terms of a contract between the assessee and the assessing authority to arrive at the same destination - the dealer who had voluntarily and with full knowledge of features of alternate method of taxation has opted to be governed by it, a fortiori cannot in the lean season, claim for his assessment to be made under the regular assessment in the same assessment year - This has been taken note by the assessing authority and the First Appellate Authority and by the High Court - High Court has not committed any error. Decision in the case of Venus Castings (P) Ltd [2000 (4) TMI 37 - SUPREME COURT OF INDIA] and Supreme Steels & General Mills and Ors [1996 (11) TMI 355 - SUPREME COURT OF INDIA] followed – Appeal dismissed – Decided against assessee.
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