KOOTHATTUKULAM LIQUORS Vs. DEPUTY COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) This appeal is directed against the judgment and order passed by the High Court of Kerala at Ernakulam in T.R.C. No. 70 of 1997, dated February 25, 2003. The Assessee is a dealer in arrack. We are concerned with the assessment year 1993-94. The regular rate of tax on the sale of arrack is 12.5 per cent. In the normal course, the sale of arrack would attract the charging provisions, namely, Section 5(1) of the Kerala General Sales Tax Act, 1963 (for short, "the Act") and the regular assessments would be made by the assessing authority by applying the principles as envisaged Under Section 17 of the Act.

(2.) Section 7 was introduced in the Act, with effect from April 1, 1992. Section 7 of the Act provides for payment of tax at compounded rates. Admittedly, in the beginning of the excise year, the Assessee had filed an application in form No. 21 before the assessing authority, dated May 24, 1993, inter alia, requesting the assessing authority to facilitate it to pay the tax under the Act at the compounded rates. This application of the Assessee was allowed by the assessing authority by an order, dated June 28, 1993 and accordingly form No. 21A was issued to the Assessee.

(3.) The Assessee continued with its business activities from the beginning of the excise year till August 15, 1993. On August 19, 1993, the Assessee made an application before the assessing authority, inter alia, informing them that it has closed its business for multifarious reasons and, therefore, the tax should be assessed as envisaged Under Section 5(1) read with Section 17 of the Act. The said request of the Assessee was rejected by the assessing authority. Aggrieved by the same, the Assessee had carried the matter before the first appellate authority, namely, the Appellate Assistant Commissioner (Appeals), Ernakulam, who by his order dated December 5, 1994 dismissed the appeal and thereby confirmed the orders of the assessing authority.