TMI Blog2013 (3) TMI 585X X X X Extracts X X X X X X X X Extracts X X X X ..... based on the tax paid for the previous year. The provisions of section 8(f) do not provide that in the event of closure of a branch, either at the commencement or during the course of the assessment year, a dealer has the right to reduce the tax payable under section 8(f) proportionally or otherwise. Therefore, even if the petitioner had closed their Kollam branch as on March 31, 2012, that could not have had any impact on their tax liability under the scheme of compounding for the assessment year 2012-13. W.P. dismissed. - W.P. (C) No. 4907 of 2013 - - - Dated:- 11-3-2013 - ANTONY DOMINIC, J. For the Appellant : Harisankar V. Menon, Smt. Meera V. Menon, Mahesh V. Menon and V. Mrithyunjayan For the Respondents : Smt. Shoba A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he absence of any provision in the Act allowing deduction on the closure of one of the branches, the request of the petitioner for rectification, is untenable. It is in these circumstances, the writ petition is filed seeking to challenge exhibits P4, P4(a) and P8. 4. According to the learned counsel for the petitioner, payment of tax under section 8(f) is in lieu of the tax payable under section 6 of the Act. Under section 6 of the Act, once the branch is closed, the dealer does not have the liability to pay tax in respect of the closed branch and therefore, the dealer also does not have the liability to pay tax under section 8(f) reckoning the closed branch also. In support of this contention, counsel relied on the apex court in the jud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e charging section. However, an optional system of payment of tax has been introduced by the Legislature by virtue of section 8 allowing dealers to opt for payment of tax at compounded rates. Insofar as dealers in gold like the petitioner are concerned, section 8(f) provides for payment of tax at compounded rates. This provision requires the dealer to make an application opting for such payment and on its acceptance, tax is to be paid for the assessment year concerned at the rates prescribed in the section itself. This section also prescribes the rate of tax to be paid for the succeeding years, provided option is exercised for those years also. 8. Insofar as this case is concerned, section 8(f)(i) together with Explanations 3, 8 and sub- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to a branch that had remained closed during the whole of the year 2009-10, for the purpose of determining the compounded tax payable for 2010-11, the tax in respect of that branch shall not be reckoned. (v). Where a dealer had paid tax under this clause for the previous year, the tax payable for the succeeding year under this clause shall be calculated at the rates mentioned in item (i) or (ii) below, whichever is higher: (i)(a) at the same amount of tax paid during the previous year, in case their turnover for the above goods for the preceding year was rupees ten lakh or below; (b) at one hundred and five per cent of such tax paid during the previous year in case their turnover for the above goods for the precedin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t import provisions in the statute so as to supply any deficiency; (ii) before taxing any person it must be shown that he falls within the ambit of the charging section by clear words used in the section; and (iii) if the words are ambiguous and open to two interpretations, the benefit of interpretation is given to the subject. There is nothing unjust in the taxpayer escaping if the letter of the law fails to catch him on account of Legislature's failure to express itself clearly. 10. These principles have been reiterated in several judgments, the last of which is Vodafone International Holdings B.V. v. Union of India [2012] 341 ITR 1 (SC); [2012] 170 Comp Cas 369 (SC); [2012] 6 SCC 613. 11. Section 8(f) of the Act is a self-cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n respect of his head office but also in respect of all his branches. If such a dealer exercises option for the succeeding years, his liability for those years are to be determined in terms of clause (v), which is based on the tax paid for the previous year. The provisions of section 8(f) do not provide that in the event of closure of a branch, either at the commencement or during the course of the assessment year, a dealer has the right to reduce the tax payable under section 8(f) proportionally or otherwise. Therefore, even if the petitioner had closed their Kollam branch as on March 31, 2012, that could not have had any impact on their tax liability under the scheme of compounding for the assessment year 2012-13. 13. The learned couns ..... X X X X Extracts X X X X X X X X Extracts X X X X
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