TMI Blog2009 (3) TMI 919X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment at compounded rate under section 8(e) of the Act - Held that: - even without a formal application for compounding, the appellant adopted the scheme of compounding for payment of tax in respect of drugs and medicines which is at four per cent on MRP. Proviso (b) to Explanation to section 8(e) makes it clear that when tax is collected at the compounded rate on MRP by the seller, the purchasin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 94 of the Kerala Value Added Tax Act, 2003. The appellant among other things is a manufacturer and dealer in drugs and medicines. Even though an application for compounding was not filed in form 1D, the appellant was remitting tax at the compounded rate, that is, at four per cent on the maximum retail price on the sale of drugs and medicines under section 8(e) of the Act. When assessment was made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We do not find anything wrong with the Commissioner's order because even without a formal application for compounding, the appellant adopted the scheme of compounding for payment of tax in respect of drugs and medicines which is at four per cent on MRP. Proviso (b) to Explanation to section 8(e) makes it clear that when tax is collected at the compounded rate on MRP by the seller, the purchasi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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