JUDGMENT

Dated this the 19 ^th day of November, 2025 The issue involved in this writ petition is with respect to the compounding tax under Section 8(f)(i) of the Kerala Value Added Tax, 2003 (KVAT Act).

2. The petitioner is a dealer in Jewellery bearing TIN No.32010186328 under the KVAT Act. It is the case of the petitioner that Section 8(f) of the KVAT Act provides for payment of compounded tax for a particular year, in which the option is exercised based on the tax paid or payable for the previous year. The percentage of such compounded tax to be paid for the year in which the option is exercised differs depending on the tax paid and the turnover of the previous year or years as the case may be. However, it is further asserted that, under the proviso to Section 8(f)(i)(d) (the un-amended provisions) and as per Section 8(f)(iii) of the KVAT Act, a dealer is permitted to collect tax at 1.25% as per the rates under Table to Section 8(f)(iii). Accordingly, the petitioner collected an amount of Rs.1,03,80,955/- during the financial year 201