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TMI Blog2006 (12) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... yana Value Added Tax Act, 2003 (for short, "the Act"), the State Government is empowered to accept from any class of dealers, a lumpsum payment linked with production capacity or some other suitable measure of extent of business, calculated at a flat rate of gross receipts of business or otherwise, as provided for under the Rules framed for the purpose, in lieu of tax payable under the Act. In accordance with the said provision, under rule 51 of the Haryana Value Added Tax Rules, 2003 (for short, "the Rules"), lumpsum scheme was introduced in respect of plywood manufacturers. Rule 46 of the Rules contains general provisions in respect of lumpsum dealers and clause (3) thereof, provides that once an option to pay lumpsum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er to whom goods are sold by such dealer shall be entitled to any claim of input tax in respect of the sale of the goods to him. (3) A dealer in whose case composition under sub-section (1) is made and is in force may, subject to such restrictions and conditions, as may be prescribed, opt out of such composition by making an application containing the prescribed particulars in the prescribed manner to the assessing authority, and in case the application is in order, such composition shall cease to have effect on the expiry of such period after making the application as may be prescribed." Relevant provisions of rules 46 and 51 of the Rules read as under: "Rule 46. General provisions in respect of lumpsum dealers, section 9.--(1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -- (1) Subject to the other provisions of this rule, a plyboard manufacturer may, by exercising option in the manner given in subrule (6), at any time offer to make payment of lumpsum in lieu of tax payable by him under the Act on sale of plyboard manufactured by him and waste products arising therefrom, at the rate(s) mentioned below: -- Table Serial No. Press size Rate of lumpsum per press per annum 1. 8' x 4' x 10 Rs. 9.00 lakh 2. 8' x 4' x 7 Rs. 6.30 lakh 3. 6' x 4' x 10 Rs. 6.75 lakh 4. 6' x 4' x 7 Rs. 4.73 lakh 5. 4' x 4' x 10 Rs. 3.21 lakh 6. 4' x 4' x 7 Rs. 2.25 lakh where an 8 x 4 x 10 press is designed to make 10 number plyboards each measuring 8 feet by 4 feet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onth provided an account of purchase of such goods and their use in manufacture is maintained and corresponding information is furnished in the returns: Provided further that the proportion of adjustment on account of goods other than wood and wood products for any tax period shall not exceed twelve per cent of the total adjustment allowed for that period. Illustration.--Out of a claim of tax paid of Rs. 2,06,000 in respect of goods used in manufacture, Rs. 1,76,000 relate to wood and wood products and Rs. 30,000 to other goods, the claim allowed shall be Rs. 2,00,000, Rs. 1,76,000 in respect of wood and wood products and Rs. 24,000 in respect of other goods. (4) A plyboard manufacturer in whose case composition under this rule is made a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot; Learned counsel for the petitioner submits that on a revision of the rate of tax, the petitioner had a statutory right to opt out of lumpsum scheme irrespective of the question whether the petitioner was prejudiced from revision of rate of tax or not and once the petitioner sought to opt out his option, the rejection of his application was in violation of statutory rules, entitling the petitioner to opt out of the scheme. Learned counsel for the State is unable to show as to how in view of express provision in the Rules, the petitioner can be enforced to continue in lumpsum scheme. Learned State counsel submitted that lumpsum scheme has been upheld by the honourable Supreme Court in State of Kerala v. Builders Association of India [19 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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