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IN THE HIGH COURT OF KERALA AT ERNAKULAM
A.K.JAYASANKARAN NAMBIAR, MR. JUSTICE EASWARAN S., JJ
RENUKA JEWELLERY THALASSERY – Appellant
Versus
STATE OF KERALA – Respondent
JUDGMENT :
A.K. Jayasankaran Nambiar, J.
1. As both these O.T.Revisions impugn a common order of the Kerala Value Added Tax Appellate Tribunal, in Review Petition No.1 of 2021 in T.A. (VAT) No.1429 of 2018 and Review Petition No.6 of 2021 in T.A.(VAT) No.631 of 2019, they are taken up for consideration together and disposed by this common judgment.
2. The revision petitioner herein is engaged in jewellery business. For the assessment year 2016-2017, the revision petitioner had applied for payment of tax on compounded basis and the application filed in that regard was accepted by the department. Accordingly, the revision petitioner paid tax on compounded basis for the said assessment year during different months. It would appear that proceedings were initiated against the revision petitioner for the assessment year 2014-2015 and 2015-2016 for revising the assessments already done during the said years. The said proceedings resulted in an enhancement of the tax payable on compounded basis for the assessment year 2014-2015, and a modification of the tax payable on compounded basis for the assessment year 2015-2016. As a consequence of the enhancement made in the tax payable on compounded
The tribunal's findings on tax assessments were upheld as factual and supported by prior orders, with no substantial legal questions arising from the revision petitioner's claims.
Once compounding fees are accepted, further challenges related to the assessment cannot be entertained, solidifying the principle of finality in such administrative actions.
Once an assessee opts for compounded tax payment and remits accordingly, they cannot later request assessment under normal provisions.
Evidence must be presented to substantiate claims regarding tax assessments; otherwise, the findings of the appraisal authority stand.
Once a dealer opts for tax composition, they cannot revert to regular assessments within the same assessment year.
Assessments beyond five years are invalid without proper notice, and best judgment assessments require rejection of returns, which was not adhered to in this case.
Suo motu revisions under the KVAT Act cannot proceed while an appeal on the same issue is pending, emphasizing adherence to statutory provisions.
Revisional authority must consider prior appellate orders and act within the four-year limitation for valid assessments and revisions.
The court established that a review petition cannot be used to reargue settled issues and must demonstrate an apparent error on the face of the record.
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