Hotel Sayooj vs. Deputy Commissioner Of State Tax
Held
The Court dismissed the petition, holding that an assessee who files a compounding application and acts upon it by remitting tax under the compounding scheme cannot later backtrack and request assessment under normal procedure, even if the formal approval was delayed. The Court relied on a Division Bench precedent affirming this principle.
Facts
The petitioner, a hotel, applied for compounding Turn Over Tax (TOT) for FY 2021-22 under Section 7 of the KGST Act. While the application was pending, the petitioner filed monthly returns in the compounding form (Form 10-DA) and remitted tax accordingly. The authority later approved the compounding application and demanded differential tax with interest, which the petitioner challenged.
Key Issues
Whether an assessee, having filed a compounding application and acted upon it by filing returns and remitting tax under the compounding scheme, can later contend that the returns should be treated as normal returns due to delayed approval of the compounding application.
Sections Cited
Section 7, Section 7(1)(a), Section 23(3), Section 23(3A) of KGST Act; Rule 22(1) of Value Added Tax Rules; Rule 10(1), Rule 30(1) of Kerala GST Rules
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DINESH KUMAR SINGH WEDNESDAY, THE 29TH DAY OF NOVEMBER 2023 / 8TH AGRAHAYANA, 1945 WP(C) NO. 13264 OF 2023 PETITIONER: MS. HOTEL SAYOOJ, THRISSUR ROAD, NEAR SUKAPURAM HOSPITAL, SUKAPURAM, EDAPPAL, PIN – 679576, REP. BY MANAGING PARTNER LONAPPAN C. A. BY ADVS. SRI. RAGHUNATHAN SRI. PREMJIT NAGENDRAN SMT. M. SHYLAJA SRI. RISHAL K. RESPONDENTS: 1 DEPUTY COMMISSIONER OF STATE TAX, SPECIAL CIRCLE, STATE GST DEPARTMENT, CIVIL STATION, MALAPPURAM, PIN – 676505. 2 DEPUTY COMMISSIONER, TAX PAYER SERVICE DIVISION ,STATE GST DEPARTMENT, MINI CIVIL STATION,TIRUR, PIN – 676101. BY ADV. SMT. RESHMITA RAMACHANDRAN – GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.11.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 13264 OF 2023 2 DINESH KUMAR SINGH, J. -------------------------- W.P.(C) No.13264 of 2023 ------------------------- Dated this the 29th day of November, 2023 JUDGMENT
The petitioner is registered under the provisions of Kerala General Sales Tax Act and runs a Three Star Bar Attached Hotel at Edappal. The petitioner filed an applicatio
The judgment continues below.
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