TMI Blog2008 (10) TMI 606X X X X Extracts X X X X X X X X Extracts X X X X ..... pretation would be opposed to the plain meaning of the words embedded in the provision. Neither is the respondent in my view entitled to draw support from circular No. 42/06 for the reasons which I have already indicated. If that be so, exhibits P7 and P9 are plainly unsustainable. Accordingly, I allow the writ petition and quash exhibits P7 and P9. A decision will be taken on exhibit P6 in accordance with law within one month from the date of receipt of a copy of this judgment. Till such decision is taken, the petitioner is permitted to pay the monthly compounded tax at the rate of ₹ 49,42,211. - W.P. (C). No. 26530 of 2008 - - - Dated:- 15-10-2008 - JOSEPH K.M. , J. K.M. JOSEPH J. The question that falls for decision in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent years 2005-06, 2006-07 and 2007-08. The petitioner, for the head office and both the branches at Kollam and Thrissur, filed an application for permission to opt for payment of tax under section 8 of the Act, i.e., at compounded rates for the assessment year 2008-09 vide exhibit P6. Exhibit P7 is the order dated May 6, 2008 permitting the petitioner to pay tax at compounded rate in a sum of Rs. 54,06,554. The petitioner sought clarification as to how the figure is arrived at, vide exhibit P8. That came to be responded by the first respondent vide exhibit P9. The petitioner challenges exhibits P7 and P9. In exhibit P9, reference is made to Explanation 5 to section 8(f). In other words, the view taken is that the compounded tax due for a n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the new branch had not been opened. The petitioner has opted to pay tax at compounded rate for the Thrissur branch for the year 2008-09. The Thrissur branch started functioning during 2005-06. Under the Finance Act, 2008, a dealer who opts for payment of tax under section 8 of the Act is liable to pay tax for all their branches at compounded rate. It is stated in the counter-affidavit that the Finance Act has reduced the highest tax payable by the dealer to 150 per cent from 200 per cent for a period of 12 months during any of the preceding three years. It is the further case of the respondent that no circular contrary to the circular No. 42/06 has been issued and that the compounded tax is calculated treating the branch as a new unit o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed tax to be paid by such dealers for 2006-07 will be calculated as follows: (i) At 200 per cent of the highest tax payable for a period of twelve months during any of the years 2003-04, 2004-05 or 2005-06. (ii) At 400 per cent of the tax payable or paid for the year 2005-06 in the case of dealers who do not qualify for compounding as per subclause (i) of clause (f) of section 8. (iii) In the case of a dealer commencing business during the period from April 1, 2006 to September 30, 2006, the compounded tax per month shall be at 150 per cent of the average monthly tax paid or payable from the commencement of business till September 30, 2006. (iv) In the case of a 'branch' opened by a dealer after March 31, 2005, who has o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 8(f) of the Act. Explanation 3 reads as follows: Explanation 3. Dealers opting for payment of tax under this clause shall pay compounded tax in respect of all their branches existing in the year previous to the year in which the option relates. This is a definite indication available from the circular that it cannot continue to govern the assessee from April 1, 2008 onwards as the circular, if placed side by side the statutory provision, can only perish in view of the conflict between them. That apart, even on the wording of Explanation 5, I would think that the stand taken by the respondent is unsustainable. The plain meaning of the words assumes primary significance in the task of interpretation of any statute sans ambiguity, ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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