Compounded Tax- Metal Crusher Units


A division bench of the Kerala High Court  held that a metal crusher unit entitled to pay compounded tax, as per sales tax law, can equally claim composition with respect to its incidental products like Msand, along with granite metals.  As per Section 7 of the Kerala General Sales Tax Act, 1963, the crusher units producing granite metals are eligible for payment of compounded tax, in lieu of regular assessment and the taxing authority declined to grant this facility by assessing the turnover of M sand at higher rate.  The Bench comprising of Chief Justice J Chelameswar and Justice PRR Menon overruled the contentions of the Government and held that eligibility for payment of compounded tax is for the dealer not on the basis of their products.  However the Court left open the issue whether M Sand can be treated as Granite Metal. 


 
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