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2018 (4) TMI 365 - HC - VAT and Sales TaxDemand of interest - additional demand of tax due to denial of ITC where credit notes issued by the party - whether the petitioner is liable to pay interest under section 18(4)(a) of the M. P. V. A. T. Act, 2002 for the assessment year 2011-12? - Held that: - the levy of interest is unsustainable in view of the Constitutional Bench decision of the Supreme Court;in the case of J. K. Synthetics Ltd. v. Commercial Taxes Officer [1994 (5) TMI 233 - SUPREME COURT], where it was held that any provision made in a statute for charging or levying interest on delayed payment of tax must be construed as a substantive law and not adjectival law. The provision for levy of interest clearly shows that so long as the assessee pays the tax which according to return is due on the basis of information furnished in the return filed by him, there would be no default on his part to meet the statutory obligation and therefore, it cannot be held that the tax payable by him is not paid to make him liable to pay interest. The law does not envisage assessee to predict final assessment and expecting to pay tax on that basis to avoid the liability to pay interest - demand of interest and recovery thereof is unsustainable in law - Petition allowed - decided in favor of petitioner.
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