M.P. RAJU Vs. STATE OF KERALA

JUDGEMENT

(1.) THE question of law raised before the court is, whether the assessee is eligible and entitled to pay tax at the compounded rate as envisaged under Sub -section (7) of Section 7 of the Kerala General Sales Tax Act ('KGST Act' for short).

(2.) THE factual matrix in brief is as under:

(3.) THE petitioner had filed an application before the assessing authority with a request to permit him to pay tax under the Act at the compounded rate. In the application itself, it was made known to the assessing authority that the assessee had received certain amounts towards the contract work done by him prior to the date of filing of the application seeking permission to pay the tax at the compounded rate. The request of the petitioner is rejected by the assessing authority. After such rejection, the assessing authority has proceeded to complete the assessment for the assessment year 2001 -2002 under Section 5(1) of the KGST Act. Aggrieved by the said order passed by the assessing authority, the petitioner/assessee had carried the matter in appeal before the Deputy Commissioner (Appeals), Kozhikode. The appellate authority by his order dated 25.8.2005 has allowed the assessee's appeal and has further directed the assessing authority to accept the payment made by the assessee as per Section 7(7) of the KGST Act and issue a revised demand notice.