IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMAN TUESDAY, THE 18TH MARCH 2008 / 28TH PHALGUNA 1929 OP.No. 930 of 2002(I) ----------------------------- PETITIONER: ------------------- K.O.RAPPAI, PROPRIETOR, MAHARANI JEWELLERS, M.O.ROAD, THRISSUR - 1. BY ADV. SRI.K.M.V.PANDALAI. RESPONDENT: ---------------------- THE ADDL. SALES TAX OFFICER, 1ST CIIRCLE, AYYANTHOLE, THRISSUR. BY GOVT. PLEADER SRI. TEK CHAND. THIS ORIGINAL PETITION HAVING BEEN FINALLY HEARD ON 18/03/2008,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: O.P. NO. 930/2002-I: APPENDIX PETITIONER'S EXHIBITS : EXT.P.1: COPY OF THE APPLICATION FILED BY THE PETITIONER DTD. 30/08/1999. EXT.P.2: COPY OF THE PERMISSION ISSUED IN FORM NO. 21A ON 31/08/1999 BY THE RESPONDENT. EXT.P.3: COPY OF THE NOTICE ISSUED BY RESPONDENT DTD. 31/08/1999. EXT.P.4: COPY OF THE PETITION FILED BY PETITIONER BEFORE THE RESPONDENT DTD. 29/12/1999. EXT.P.5: COPY OF THE CIRCULAR DTD. 23/10/1998 ISSUED BY DY. COMMISSIONER (GENERAL). EXT.P.6: COPY OF THE RELEVANT PORTION OF THE NOTIFICATION ISSUED BY THE GOVERNMENT ON 31/12/1999. EXT.P.7: COPY OF THE LETTER FROM THE RESPONDENT TO THE PETITIONER DTD. 16/04/2001. RESPONDENT'S EXHIBITS: NIL. //TRUE COPY// prv. P.R.RAMAN, J. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ O.P.No.930 of 2002-I ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Dated this the 18th day of March, 2008 J U D G M E N T Petitioner is a proprietor of a jewellery who opted to pay tax at compounding rate as per Section 7 of the Kerala General Sales Tax Act, 1963. He filed an application under the above Act. His application for payment of tax at compounding rate was allowed by Ext.P2. However, tax on the value of turnover representing the old gold purchase for an amount of Rs.8,267/- was also included for the purpose of opting the tax amount at compounding rates. Petitioner complied with the demand but, simultaneously, he made an application for rectification by filing Ext.P4, inter alia, contending that tax on the value of the old gold purchase is totally exempted for the purpose of opting the benefit of Section 7 of the K.G.S.T Act based on the Circulars issued as per G.O.(P) No.153/93/TD, dated 03/11/1993, and subsequent Government Notification and Circular issued in this regard are produced as Exts. P6 and P5 which would clearly show that in respect of the tax payable under the K.G.S.T Act by dealers in Gold and Silver ornaments, who have opted for payment of tax under Section 7 (1) of the K.G.S.T Act with regard O.P.No.930/2002-I -: 2 :- to their turnover relating to the purchase of old Gold or Silver ornaments is exempted. But the Additional Sales Tax Officer did not even refer to the Circular and at the same time, rejected these claims for rectification. In view of Exts.P5 and P6, there is no doubt that tax payable on the turnover representing the old gold purchase is exempted for the purpose of calculating compounding rate under Section 7(1) of the K.G.S.T Act. This has been held so by the decision of this Court in A.Saida Beevi vs. The Additional Sales Tax Officer [1999 (7) KTR 15]. Possibly convinced of the above situation, the respondents have not filed any counter affidavit either. 2. In the above circumstances, the original petition is allowed. Ext.P7 is quashed and there will be a direction to the Additional Sales Tax Officer to pass orders of rectification in terms of Ext.P4 application and grant the relief. P.R.RAMAN, Judge ms O.P.No.930/2002-I -: 3 :- P.R.RAMAN, J. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ O.P.No.930 of 2002-I ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ J U D G M E N T 18th March, 2008