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2015 (10) TMI 626 - HC - VAT and Sales TaxPayment of tax on compounding basis - Section 5A - petitioner failed to comply with the monthly payment of the instalments fixed under the compounding scheme - Held that:- On a perusal of Section 5A of the Kerala Tax on Luxuries Act, it is evident that, the scheme of compounding that is envisaged therein is a code in itself. There are provisions which deal with the manner in which the compounding application is to be filed by the assessee and processed by the department. The provisions of Section 5A also deal with the determination by the assessing authority of the monthly instalment of tax that is required to be paid by an assessee under the scheme. Section 5 A (6) which is relevant for the purposes of the instant case, states that, if the tax determined is not paid as specified in Sub Section 5, it shall be recovered along with penalty in accordance with the provisions of the Act. - while it would be open to the Revenue Department to proceed against the petitioner for recovery of the defaulted instalments under the scheme of compounding under Section 5A of the Act, their action in completing a regular assessment under Section 6 of the Kerala Tax on Luxuries Act is clearly illegal - The amounts, if any, remitted by the petitioners pursuant to the orders that have been quashed in these writ petitions shall be adjusted towards any liability flowing from the default of the petitioners under the scheme of compounding under Section 5A of the Act. - Appeal disposed of.
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