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TMI Blog2011 (1) TMI 1283X X X X Extracts X X X X X X X X Extracts X X X X ..... was carrying on the business of purchases and sales of gold bullion. It appears that there was a compounding scheme for the gold bullion dealer under section 7D of the U.P. Trade Tax Act, 1948 (called, "the Act", for short) for the assessment year 2006-07. For the assessment year 2007-08 the compounding scheme has been introduced vide Government Order (called "the G.O.", for brevity) dated Decemb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the entire amount of Rs. 1 crore deposited prior to December 5, 2007 as compounding amount and has refused to refund the sum of Rs. 30 lacs, which, according to the applicant, was in excess of the compounding money fixed at Rs. 70 lacs under the scheme. Being aggrieved by the order of the assessing authority refusing to refund the excess amount of Rs. 30 lacs the applicant filed an appeal before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, the amount was not refundable. The learned counsel for the applicant submitted that under section 7D compounding tax is payable in lieu of the tax payable. Section 2(n) defines "tax" which includes the composition money under section 7D also. Under the scheme issued by the G.O. dated December 5, 2007 for the slab turnover up to Rs. 200 crores, compounding money payable was Rs. 70 lacs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he order of the Tribunal and the assessing authority. I have considered the rival submissions and perused the impugned order. Section 7D provides a lump sum payment in the form of compounding money in lieu of tax payable. Section 2(n) defines "tax" which includes composition money. The applicant applied under the compounding scheme issued by the G.O. dated December 5, 2007 under the turnover slab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y due. Any amount deposited in excess of the compounding money which is not due under the scheme is the excess amount of tax and is liable to be refunded under section 29 of the Act. The assessing authority and the Tribunal have erred in refusing to refund the excess amount. In the result the revision is allowed. The order of the Tribunal dated August 6, 2010 is set aside and the order of the Add ..... X X X X Extracts X X X X X X X X Extracts X X X X
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