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2020 (5) TMI 168 - HC - VAT and Sales TaxLevy of turnover tax - foreign liquor - compounding scheme - Section 7 of the KGST Act - legality to adopt assessed tax of the previous year as the basis for fixing the compounded liability - HELD THAT:- The decision in M/s.Hotel Breezeland Ltd [2019 (2) TMI 1086 - KERALA HIGH COURT ] was rendered by the Division Bench after considering a batch of writ appeals and a writ petition where it was held that dealer who opts for payment of tax under Section 7 cannot be said to have been absolved of the liability for all the consequences arising from such an assessment made for the previous three years which is the reference point for determining the tax payable in the relevant year under clause (b) of Section 7. It was well within the authority of the 1st respondent to have revised the assessment for the years 2008-09, 2009-10 and 2010-11, based on the revision of the assessment and tax component for the year 2007-08, resulting in a cascading effect on the assessment for the following three years. The fact that compounded tax was paid for those three years did not fetter the right to revise the assessment. Petition dismissed.
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