TMI Blog2011 (1) TMI 1283X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 crores. Under the compounding scheme for the turnover slab up to ₹ 200 crores the compounding money payable was ₹ 70 lacs only. Therefore, the assessing authority is not entitled to treat and accept any other amount over and above ₹ 70 lacs as compounding money under the scheme. The assessing authority as well as the Tribunal have erred in treating the entire deposit of ₹ 1 crore as compounding money after accepting the compounding application for the slab below ₹ 200 crores. The assessing authority is only entitled to retain the compounding money which is legally 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 refu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed March 17, 2009. However, the assessing authority has treated the entire amount of ₹ 1 crore deposited prior to December 5, 2007 as compounding amount and has refused to refund the sum of ₹ 30 lacs, which, according to the applicant, was in excess of the compounding money fixed at ₹ 70 lacs under the scheme. Being aggrieved by the order of the assessing authority refusing to refund the excess amount of ₹ 30 lacs the applicant filed an appeal before the Additional Commissioner, Grade II (Appeals), Commercial Tax, Ghaziabad. The appeal has been allowed vide order dated August 11, 2009 and the assessing authority was directed to refund the amount. Being aggrieved by the order of the Additional Commissioner (Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was not open to the assessing authority to retain any amount over and above the compounding money which is not due under the scheme. Any excess amount deposited is liable to be refunded under section 29 of the Act. The learned standing counsel has relied upon the 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 of ₹ 200 crores. It was open to the assessing authority to accept the said ..... X X X X Extracts X X X X X X X X Extracts X X X X
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