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2016 (9) TMI 270 - MADRAS HIGH COURTDemand of interest - Section 24(3) of the Tamil Nadu General Sales Tax Act - cheques given by petitioner to Enforcement Wing Officials during inspection got dishonoured - demand of interest arises where there is an Assessment in terms of sub-section (1) of Section 24 of the Act and within the specified date, the tax is not paid - Held that: - the case relied upon is EID Parry (India) Ltd., Vs. CCT [2005 (5) TMI 302 - SUPREME COURT OF INDIA]. It was held in the case that interest becomes payable under Section 24(3) on an amount remaining unpaid after the date specified for its payment under sub-section (1) of Section 24. Sub-section (1) of Section 24 deals with an assessed tax or tax which has become payable under the Act. In case covered by Section 13(2) tax must be paid without any notice of demand. But as stated above, under Section 13(2) tax is to be paid "on the basis of such returns". Tax as per the returns has admittedly been paid. If the returns were incomplete or incorrect as now claimed the assessing authority had to determine the tax payable and issue a notice of demand. In the absence of any assessment, even provisional, and a notice of demand no interest would be payable under Section 24(3) - demand of interest without jurisdiction - writ petition allowed - decided in favor of petitioner.
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