JUDGMENT :

The petitioner, a partnership firm, is a registered dealer under the Kerala General Sales Tax Act, 1963 (for short, “the KGST Act”) on the rolls of the first respondent and is running a three star hotel situated in the panchayat area in Kozhikode district. It started business on 11.02.2010 during the assessment year 2009-10. While so, as per the Finance Act, 2010, Section 7 of the KGST Act was amended by including a new provision for compounding by three star hotels. It was stipulated that three star bar attached hotels in the areas other than Municipal Corporations will have the option to pay turnover tax on foreign liquor instead of paying turnover tax under Section 5(2) of the KGST Act @ 170% of the purchase value of such liquor or at 125% of the highest turnover tax payable as conceded in the return or accounts or the turnover tax paid for any of the previous consecutive three years, whichever is higher. While so, as per Ext.P2 application dated 30.04.2010, the petitioner applied for permission to pay tax under Section 7 of the KGST Act; and accordingly, tax was being paid for all the months of the year; and monthly returns filed along with payment of compounded tax f