STAR METALS Vs. AUTHORITY FOR CLARIFICATION

JUDGEMENT

(1.) This is an appeal filed under section 62(1) of the Kerala Value Added Tax Act, 2003, challenging the order issued by the Authority for Clarification under section 94 of the Act. We have heard learned counsel appearing for the appellant and learned Government Pleader appearing for the respondent.

(2.) The appellant applied for payment of tax at compounded rate in respect of the stone crushing unit installed and run by the appellant. Stone crushing units are entitled to remit tax at compounded rate based on the size (length and width) of the machine used for crushing the stone. The compounded rates provided for the machines of different sizes under, section 8(b) are the following :

(3.) The appellant's machine is admittedly of the length of 55cm and width of 22.5cm and the appellant paid tax at Rs. 1,60,000 p.a. However, the Intelligence Wing of the Department noticed that the appellant's machine falls under item (iii) above and the appellant is therefore liable to pay tax at Rs. 3,20,000 p.a. as against Rs. 1,60,000 paid, which is only half the rate payable. Consequently, additional demand is raised for the tax, interest and penalty. It is in this context, the appellant applied for clarification, which led to the order impugned in this appeal.