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2015 (10) TMI 853 - HC - VAT and Sales TaxDemand of turnover tax - Compounded rate of tax - assessee sought withdrawal of permission to pay tax at compounded rate - Tribunal held that the assessee is not liable to pay tax at compounded rate in view of the fact that there was no purchase or sales during the months in question and granted relief - Held that:- legislative intention is that if the compounding is allowed, the tax will be paid on the basis of the amount arrived at in clause (a) or (b) of Section 7 whichever is higher. As far as clause (a) is concerned, it is fixed with reference to the purchase turnover. Undoubtedly, clause (a) applies in this case in the sense that there was purchase turnover for the months up to August 2010 and perhaps the tax was being collected on the said basis, provided it was higher than the sum arrived at on the basis of applying clause (b). Assessee does not have a case that he did not have any turnover and that the amount of tax could not be arrived at on the basis of the operation of clause (b). Therefore even proceeding on the basis that the tax which should be arrived at on the basis of applying clause (a) is nil, the amount of tax which should be arrived at on the basis of clause (b) would have to be arrived at and since if that tax is by any account higher than the amount which is arrived at under clause (a), the assessee would be liable to pay the said amount. In this regard, we must notice that it is not a case of a regular assessment under section 5. This is a case where the assessee on his own volition opted for compounding. The assessee must be taken to have ventured to accept liability to pay tax at compounded rates, with all the perils and benefits which accompanied such a decision and having accepted the same, it is not open to the assesse to turn around and extricate himself from the liability which stares at him by virtue of the unambiguous provisions contained in section 7 of the Act. - Decided in favour of Revenue.
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