1994 (10) TMI 279 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Liability to pay interest u/s 24(3) of the Tamil Nadu General Sales Tax Act, 1959.
2. Interpretation of provisions regarding self-assessment and due dates for tax payment and filing returns.
3. Applicability of Supreme Court judgment in J.K. Synthetics Ltd. v. Commercial Taxes Officer to the present case.

Summary:

Issue 1: Liability to pay interest u/s 24(3) of the Tamil Nadu General Sales Tax Act, 1959
The appellant, a registered dealer, filed a revised return for December 1991 on February 19, 1992, correcting an error from the original return filed on January 20, 1992. The Assistant Commissioner levied interest of Rs. 40,312 u/s 24(3) for the delay in paying the differential tax of Rs. 20,15,601. The appellant's revisions to the Deputy Commissioner and the Joint Commissioner were dismissed, leading to the filing of a writ petition, which was also dismissed. The appellant contended that no interest was due as the tax was paid upon filing the revised return.

Issue 2: Interpretation of provisions regarding self-assessment and due dates for tax payment and filing returns
The court examined sections 13(2), 24(1), and 24(3) of the Act and Rule 18(2) of the Rules. Section 24(3) stipulates interest on unpaid amounts after the due date. Section 13(2) and Rule 18(2) mandate that tax is due on the 20th of the succeeding month. The court held that the due date for tax payment is fixed as the 20th of the succeeding month, regardless of when the return is filed. Therefore, the appellant was liable to pay interest from January 20, 1992, to February 19, 1992, on the differential tax.

Issue 3: Applicability of Supreme Court judgment in J.K. Synthetics Ltd. v. Commercial Taxes Officer
The appellant cited the Supreme Court judgment in J.K. Synthetics Ltd. v. Commercial Taxes Officer, arguing that interest should only be charged after the final assessment. The court distinguished this case, noting that the provisions of the Rajasthan Sales Tax Act interpreted in J.K. Synthetics were not similar to the Tamil Nadu General Sales Tax Act. The liability to pay interest under the Tamil Nadu Act is automatic upon failure to pay the full tax by the due date.

Conclusion:
The court affirmed the conclusions of the departmental authorities and the learned single Judge, holding that the appellant was liable to pay interest u/s 24(3) of the Act. The writ appeal was dismissed with no order as to costs.