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2014 (4) TMI 328 - HC - VAT and Sales TaxRefund of deposit Levy of Tax - Composite Scheme - withdrawal from the composition scheme - Held that:- Clause 16 of the agreement specifically provides that it would not be open to the dealer to pay a reduced amount or to resile therefrom as that clause clearly contemplated that once a dealer agreed to pay the tax in lump sum, they cannot insist on payment of the tax on the basis of actual turnover or any other reason for e.g. started production very late - Assessee himself voluntarily applied under the compounding scheme deposited the requisite tax and submitted the form on the proforma, it implies that the petitioner had accepted the terms and conditions voluntarily - As scheme specifically provided that there would not be reduction in the composition money. Object of Scheme - Held that:- Relying upon Bhadauria Gram Sewa Sansthan, Fatehpur Vs. Assistant Commissioner, Sales Tax, Allahabad and others [2006 (1) TMI 554 - ALLAHABAD HIGH COURT] This Court has considered Section 7-D and explained the object of it - The object of introducing such a scheme under a taxing statute is well established as so many advantages are attached to such scheme besides being hassle free to the dealer - It also avoids unnecessary litigation - The department in its turn receives a fixed amount of tax without undertaking the assessment work and, thus, saves a lot of time - It also facilitates the speedy recovery of tax. Agreement to Scheme - Held that:- Relying upon Venkateshwara Theatre v. State of Andhra Pradesh [1993 (5) TMI 157 - SUPREME COURT OF INDIA] - Liability of payment of tax is dependent upon the agreement entered into by the parties and the amount so agreed would continue to be payable by the company notwithstanding the fact that the company could not produce during the period for which it had opted for composition under Section 7-D - The said scheme is not relatable to any actual turn over but depends upon the agreement under the scheme - The company once exercise its option under compounding scheme cannot be permitted to turn around and resile from its liability mere on the ground that it had no turn over or had not produced during the said period - Government Orders dated 12.01.2007, 30.07.2007 and 22.05.2009 are fully justified and sustainable in the eyes of law No need to interfere with orders - Writ petition, being devoid of merits, fails and is dismissed Decided against assessee.
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