9911796707
TMI Blog2007 (9) TMI 574X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing officer has computed the value added tax payable by the petitioner at compounded rate under section 8(f)(i) of the Kerala Value Added Tax Act, 2003 for the assessment year 2006-07. The petitioner's case is that the petitioner is liable to pay tax at compounded rate under section 8(f)(ii) of the Act read with Explanation 1 to the said section and not under section 8(f)(i) read with Expl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... right to use video . . . (e) any dealer who is an importer . . . (f) (i) any dealer in ornaments or wares or articles of gold, silver or platinum group metals may at his option, instead of paying tax in respect of such goods in accordance with the provisions of section 6, pay tax at 200 per cent of the highest tax payable by him as conceded in the return or accounts, either under this Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acted business." The contention of the petitioner is that since the petitioner did not carry out business for 12 months in 2003-04, the petitioner's liability for tax at compounded rate is under sub-section (ii) of section 8(f) and not under sub-section (i) of the said section. The Government Pleader, on the other hand, supported the order of the officer and contended that Explanation applies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny period for the remaining financial year, then such dealer is covered by section 8(f)(i) read with Explanation and the highest tax payable for any of such years has to be determined by grossing up the turnover and tax paid for the remaining period of the year in proportion to the turnover achieved or tax paid for the period during which business was carried on. Since the petitioner admittedly ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year. In other words, sub-section (ii) of section 8(f) read with Explanation applies to a dealer who commenced business in the previous year relevant to the year for which tax at compounded rate is to be computed where such dealer had not carried out business for the full period of the said previous year. In the circumstances, the tax computed under impugned order namely, exhibit P2 under section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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