175A. Procedure for payment of tax at compounded rate on sales of cooked food by non-airconditioned hotel or restaurant

(1) A registered dealer selling cooked food from his non-airconditioned hotel or restaurant in West Bengal shall, in respect of such sales, be eligible for payment of an amount of tax at a compounded rate in accordance with the provisions of sub-section (1) of section 17D at the rate specified in the Table below in lieu of tax payable under section 17, :-

TABLE

Provided that the benefit of payment of tax at compounded rate shall be available to a registered dealer for a period not exceeding five years, from the 1st day of April, 1999 or, from the year of registration, whichever is later :

Provided further that the provisions of sub-section (1) of section 17D shall apply to the registered dealers selling cooked food from their non-airconditioned hotel or restaurant situated in any area in West Bengal other than in the area of Calcutta as described in Schedule I of the Calcutta Municipal Corporation Act, 1980 (West Ben. Act LIX of 1980).

(2) If a registered dealer referred to in sub-rule (1) intends to exercise his option to pay tax in accordance with the provisions of section 17D, he shall make an application to the appropriate assessing authority in Form 24AA for permission to do so ordinarily within thirty days from the beginning of the year in respect of which option is exercised or ordinarily within thirty days from the date of his registration, whichever is later :

Provided that if the application is made by a dealer, who has been registered before the 1st day of April, 1999, the application shall be made ordinarily on or before the 15th day of June, 1999.

(3) If the appropriate assessing authority, after making such enquiry or scrutiny as such authority may deem it necessary, is satisfied that the application is in order, such authority shall, ordinarily within thirty days from the date of receipt of the application referred to in sub-rule (2), permit the dealer to pay tax at a compounded rate under section 17D in respect of the year referred to in sub-rule (2) and inform the dealer accordingly in Form 24BB.

(4) Where a registered dealer is liable to pay tax in respect of sales of cooked food made from his non-airconditioned hotel or restaurant and is permitted to pay tax at a compounded rate under section 17D, he shall, notwithstanding the provisions of rule 161 and rule 162, furnish quarterly return in Form 25D within thirty days from the expiry of each quarter, and shall, along with the return, furnish one copy of receipted challan as a proof of payment made under sub-rule (5) :

Provided that where the dealer is liable to pay tax on sale of other goods under section 10 or is liable to pay tax under section 9, section 12 or section 15, he shall furnish a return in Form 25 in accordance with the rules prescribed and a statement in Form 25D attached therewith along with a copy of receipted challan as a proof of payment of tax on sales of such cooked food at compounded rate under section 17D.

(5) Where the annual turnover of a registered dealer who is permitted to pay tax at the compounded rate specified in column (3) against serial No. 1 in column (1) of the Table below sub-rule (1), in respect of sales of cooked food made from his non-airconditioned hotel or restaurant in West Bengal, exceeds rupees three lakhs during any quarter of a year, he shall pay the tax at the compounded rate specified in column (3) against serial No. 2 in column (1) of the said Table for that quarter and for the remaining quarters of that year.

(6) Where the annual turnover of sales of a registered dealer making payment of tax at the compounded rate under sub-rule (5) exceeds rupees five lakhs during any quarter of a year, he shall continue to pay tax at the compounded rate specified in column (3) against serial No. 2 in column (1) of the Table below sub-rule (1) for that quarter and also for the remaining quarters of that year, but he shall not be eligible for payment of tax at the compounded rate under section 17D for the subsequent year or part thereof, and he shall be liable to pay tax under section 17, for that subsequent year or part thereof.

(7) If the appropriate assessing authority is satisfied on information received or otherwise that a registered dealer concealed any relevant facts or materials to avail of the benefit of making payment of tax at a compounded rate, or to pay tax at a reduced rate, under section 17D, such authority may, after giving the dealer an opportunity of being heard, at any time during the period for which the dealer was permitted under sub-rule (3) to pay tax at the compounded rate, withdraw or revoke, by an order in writing, permission to make payment in accordance with the provisions of section 17D and, thereafter, he shall be liable to pay tax under section 17, in accordance with the provisions of the Act and the rules made thereunder.