STATE OF KERALA Vs. MALABAR ORNAMENTS (P)LTD

JUDGEMENT

(1.) THIS is a Revision case filed by the State challenging the order of the Tribunal passed in the case of the respondent assessee for the assessment year 2006 -07. The respondent is running a jewellary shop selling gold and silver ornaments. The respondent claimed the benefit of payment of tax under the compounding scheme under Section 8f(i) of the Kerala Value Added Tax Act, for the year 2006 -07. Even though the Assessing Officer granted compounding facility, which is payment of tax at 200% of the highest tax payable for any of the immediately 3 preceding years, the issue raised is whether the highest tax payable to be reckoned from out of the preceding years is the assessed tax or the tax due under the return filed by the assessee. On facts, the Tribunal found that among the 3 preceding years, the highest tax payable as per return filed by the assessee was for the year 2005 -06 and so much so the tax payable under compounding for 2006 -07 has to be determined at 200% of the tax returned as tax payable by the assessee for the year 2005 -06. It is against this order of the Tribunal, the State has filed this Revision contending that tax at compounding rate is payable based on highest tax returned for any of the years or the tax found as payable based on the assessment.

(2.) WE have heard learned Government Pleader for the petitioner and learned counsel appearing for the respondent assessee.