VARKISONS ENGINEERS Vs. STATE OF KERALA

JUDGEMENT

(1.) The main grievance involved in all these cases [though they pertain to different assessment years] is mainly with regard to the demand raised by the assessing authority to satisfy the balance tax payable under the compounding provision pursuant to the amendment brought about by the Finance Act pertaining to the relevant year enhancing the compounded rate of tax, which in turn has been sought to be applied and demanded with effect from the date on which the amendment has been brought into force.

(2.) The contention of the assessee is that, their application for compounding having been accepted, permitting them to satisfy the tax accordingly, there is a concluded contract and hence they are not liable to pay any more tax over and above the tax already remitted as per the unamended provision for the assessment year. The contention is that the enhanced rate of compounded rate of tax could be implemented only in respect of the next/succeeding assessment year.

(3.) Heard the learned counsel for the assessee as well as the learned Government Pleader appearing for the Revenue at length.