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2015 (2) TMI 234 - HC - VAT and Sales TaxScheme of compounding - Whether a dealer who opts to pay compounded tax under section 8(f)(i) of the Kerala Value Added Tax Act, 2003 is entitled to say that, since one of his branches was closed down on the last date of the previous financial year (2011-12) in question, that is, on March 31, 2012, was he entitled to exclude the turnover of that branch for determining the compounded tax payable for the next financial year, that is, 2012-13 - Held that:- The liability of a dealer to pay tax under the KVAT Act is in terms of section 6, which is the charging provision. The optional system of payment of tax at compounded rates is permitted in terms of section 8. Section 8(f)(i) relates to dealers in ornaments or wares or articles of gold, silver or platinum group metals, etc. Clauses (a) to (d) under that provision clearly show that the compounded tax has to be determined on the basis of the annual turnover of the assessee. Therefore, those provisions do not admit any classification of the establishment of the assessee into branches, for the purpose of determining the total turnover to determine the annual turnover, for the purpose of such determination. - dealers opting for payment of tax under that clause shall pay compounded tax in respect of their branches existing in the year (to which the option relates). While that Explanation excludes any dissection of the establishment for payment of tax, the principle that the compounded tax has to be determined on the basis of annual turnover remains the same. Therefore, there cannot be any splitting up or proportionate reduction of the annual turn over of the previous year to determine the compounded tax that could be paid in terms of that provision. - No legal infirmity or jurisdictional error in the impugned judgment issued by the learned single judge (Fashion Jewellery v. Commercial Tax Officer [2013 (3) TMI 585 - KERALA HIGH COURT] - Decided against Assesse.
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