1. This appeal is directed against the judgment and order passed by the High Court of Kerala at Ernakulam in Commr. (Law) Board of Revenue (Taxes) v. Koothattukulam Liquor, Tax Revision Case No. 70 of 1997, order dated 25-2-2003 (Ker) dated 25-2-2003.

2. The assessee is a dealer in arrack. We are concerned with Assessment Year 1993-1994. The regular rate of tax on the sale of arrack is 12.5%. In the normal course, the sale of arrack would attract the charging provisions, namely, S.5(1) of the Kerala General Sales Tax Act, 1963 (for short "the Act") and the regular assessments would be made by the assessing authority by applying the principles as envisaged under S.17 of the Act.

3. S.7 was introduced in the Act w.e.f. 1-4-1992. S.7 of the Act provides for payment of tax at compounded rates. Admittedly, in the beginning of the excise year, the assessee had filed an application in Form 21