Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2014 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (10) TMI 92 - HC - VAT and Sales TaxLiability to tax - Payment already made not credited to account - Held that:- It is trite that under Section 55C of the KGST Act, appropriation has to be made first towards interest and the balance available towards principal outstanding. Hence, satisfaction of interest first and the balance against the demand of ₹ 7,46,427/- towards TOT is justified. But, the Assessing Officer shall not calculate any interest prior to 14.03.2013. The amount payable as on 14.03.2013 is crystallized in the order Exhibit P4 and definitely future interest could be computed as per the appropriation made under Section 55C and a statement issued to that extent of the payments made in instalments. Hence, subsequent to Exhibit P4, when instalments are made, as directed in Exhibit P3; first the interest due should be satisfied. While any portion of the interest remains due, the tax demand would carry interest. On the interest being satisfied, payments should be credited to the tax demand. There shall be a direction to the 1st respondent to compute such amounts and give a statement to the petitioner within three weeks from today and if the petitioner remits the said amounts within three weeks therefrom, there shall be no further demand made. Decided in favour of assessee.
|