9911796707
TMI Blog2024 (1) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... 21 under Section 7 of the KGST Act. 2. As no decision was taken on the said application, the petitioner filed monthly return for April, 2021 to March, 2022 in Form - 10DA as prescribed under Rule 22 (1) of the Value Added Tax Rules. The requirements in the said Form are filed in respect of the compounding of tax under Section 7 of the KGST Act. The Authority, however, vide the impugned order dated 04.01.2023 allowed the said application filed by the petitioner for permitting him to compound the TOT liability for the financial year 2021-22. The petitioner has been directed vide the Exhibit P-2 order to pay the differential amount of tax paid by him and has approved vide Exhibit P-1 order under the compounding scheme as Rs. 31,33,609/- along ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pon the said application by filing his returns in Form 10-DA as mentioned above. The petitioner cannot go back or deviate from his stand of filing the returns under the compounding provisions once he finds that he has to pay a little more tax under the compounding scheme inasmuch as the rate of tax was reduced for some period during Covid. 5. The learned Government Pleader has placed reliance on the Judgment of this Court in the case of State of Kerala v. Kalyanaraman [2009 (3) KLT SN 31. considering the provisions of Section 7(1) (a) read with Rule 10 (1) of the Kerala GST Rules, the Division Bench of this Court in paragraph 2 of the aforesaid Judgment has held that when the assessee has not withdrawn the application for compounding at an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing filed by the respondent assessee under Section 7(1)(a) read with Rule 30(1) of the KGST Rules and the consequence of assessee acting upon the compounding application that was pending by remitting tax along with monthly returns strictly in terms of the pending application so filed and whether the officer is entitled to pass orders accepting compounding along with the assessment. These issues should have been considered by the Tribunal because neither the Act nor the Rules prescribe the time limit for the officer to pass order on compounding application filed by the assessee. It is also seen that the proviso to Rule 30(1) entitles an assessee to make a belated application in Form 21 for payment of tax at compounded rate. We find that e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for filing the first monthly return due for the year. In other words, before 10th May of the relevant year, the assessee is entitled to an order on the compounding application filed in Form 21. However, so long as the application is not rejected, nothing bars the assessee from proceeding to file monthly returns and remit tax at the rate shown in the compounding application filed by him. It is seen from the order of the Tribunal in the Review application that even though assessee's liability for payment of tax based on the taxable turnover returned every month was much below the tax payable based on the compounding application, assessee continued to remit tax for all the 12 months at the uniform rate of Rs. 61,344/- which is the tax paya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artment has no right to inspect or harass the assessees. After availing immunity in these forms, the assessee cannot after the closure of the year go back from the offer he made for payment of tax at compounded rate. Therefore, we are of the view that the Tribunal thoroughly went wrong in holding that the assessee is entitled to back out from his offer to pay tax at compounded rate, which stands accepted by the officer while passing the assessment order. Even though the normal procedure for accepting offer of the assessee to pay tax at compounded rate is to issue an order in Form 21A along with notice of demand in Form No. 22, such procedure is an empty formality after the closure of the assessment year when assessee has filed all the mo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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