BHIMA JEWELLERY Vs. ASSISTANT COMMISSIONER
LAWS(KER)-2003-11-117
HIGH COURT OF KERALA
Decided on November 27,2003

BHIMA JEWELLERY Appellant
VERSUS
ASSISTANT COMMISSIONER Respondents

JUDGEMENT

- (1.) IS a dealer, who opts for payment of sales tax "at compounded rates" under S. 7, not liable to pay the additional tax under s. SD of the Kerala General Sales Tax Act, 1963? The learned Single Judge has answered this question against the dealer. Hence, this appeal. The facts may be briefly noticed.
(2.) THE appellant is a registered dealer in gold and silver ornaments. THE sale of ornaments is exigible to the levy of sales tax under S. S. Entry 75 of the First Schedule fixes the rate of tax at 4%. S. 7 of the Act embodies an option for the assessee. It permits a "dealer in gold or silver ornaments or wares" to "pay tax at 15% of the tax payable by him as conceded in the return or accounts for the immediate preceding year. " The appellant submitted an application for permission to pay tax in accordance with S. 7 for the year 2001-02. It is alleged that the annual tax under S. 7 (1) was Rs. 1,88,40,678/- being 120% of the tax due for the previous year. Thus, the monthly tax for the year 2001-02 was Rs. 15,70,057/ -.
(3.) ON July 23, 2001 the Legislature promulgated S. SD providing for the levy of additional tax. In view of this provision, the appellant deposited additional tax "at the rate of 15% of the tax payable" for the months of July and August 2001. Thereafter, it stopped paying. The first respondent issued notices in Form 14-D under R. 21 (10) of the kerala General Sales Tax Rules demanding additional sales tax for the two months and the interest. These notices are Exts. P2 and P3 on the record. The appellant felt aggrieved by the imposition of additional tax under S. SD. Thus, it approached this Court through a petition under Art. 226 of the Constitution.;


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