STATE OF KERALA Vs. P.V. MANOHARAN

JUDGEMENT

(1.) Despite service on the respondent-assessee, none appears in the above revision. The questions of law framed for consideration, as found in the memorandum of revision, are as follows:

(2.) The respondent, an assessee, was carrying on a crusher unit by name 'Global Stone Crusher'. There was a compounding provision available to the crusher units under Section 7 of the Kerala General Sales Tax Act, 1963 ('Act' for short). The subject assessment year is 2001-2002 and for the previous year, the amount payable for the machine used by the respondent's crusher unit was Rs. 30,000/-. In the budget speech of 13.07.2001, there was a proposal to enhance the composition fees to Rs. 1,50,000/-. The respondent filed an application for compounding in April, 2001, which was allowed. Later, a Bill was introduced in the Legislature on 21.07.2001, again, specifying the composition fees as Rs. 1,50,000/-, as declared in the budget speech. The Act, however, was passed only in November, 2001, when there was a reduction and the composition fees, as applicable to the machine used by the respondent, was Rs. 90,000/-.

(3.) The Assessing Officer, in accordance with the application for composition, made Annexure-A order, directing payment of tax under Section 7(1) and AST at 15%. An appeal was filed therefrom which ended in Annexure-B. The First Appellate Authority found that the amendment having come into effect on 23.07.2001, the date on which the bill was enacted, the enhanced compounding fees would be applicable only from that date. Effectively for the first four months, the compounding fees would be the proportionate of Rs. 30,000/-. A revised assessment order was passed, as is seen from Annexure-C, reducing the tax considerably and adopting the proportionate amount of Rs. 30,000/- between 01.04.2001 to 22.07.2001.