TMI Blog2014 (10) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - WP (C). No. 8042 of 2014 (E) - - - Dated:- 26-6-2014 - K. Vinod Chandran,JJ. For the Appellants : Smt S K Devi, Sri Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 824/-. In fact, when a rectification was made as per Exhibit P4, the earlier revenue recovery notice cannot at all be continued. If the petitioner had not paid the amounts as per the instalments granted by this Court, definitely the Department ought to have modified the demand and initiated separate recovery proceedings. Hence, by Exhibit P3 judgment, the earlier revenue recovery proceedings cannot be proceeded with. The petitioner has also, admittedly, complied with the instalments granted by this Court as per Exhibit P3, when rectification of demand was made. 4. 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, satisfac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earlier only on account of having not been given proper credit for the payments made in the subject year. The allegations stood proved by the rectified order [Exhibit P4] passed. In such circumstance, it cannot be said that the revenue recovery proceedings were proper. It is also to be noticed that a Division Bench of this Court in Vijayan N.P. v. Tahsildar [2012 (4) KHC 151 (DB)] found that if payments were voluntary and based on interim orders issued by this Court, no collection charges could be demanded. In the present case, there was a mistake in computation and the petitioner approached this Court. The mistake in computation was rectified, as directed by this Court and the instalments also paid, as directed by this Court. In such circ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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