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2009 (12) TMI 864 - HC - VAT and Sales TaxWhether short payment of tax by the dealers along with monthly returns either on account of non-inclusion of turnover or failure to return turnover at the full rate of tax attracts interest under section 23(3A) of the Act? Held that:- We overrule the judgment in P.K. Damodaran's case [2003 (2) TMI 452 - KERALA HIGH COURT] above referred to and allow the revision cases by reversing the orders of the Tribunal and by restoring the interest levied under section 23(3A). However, counsel appearing for the respondents submitted that but for the favourable orders issued by the Tribunal, though now found to be wrong by this court, the respondents should have settled the liability towards interest under the Amnesty Scheme, that was prevalent up to March 31, 2009. We find force in this contention because had the Tribunal dismissed the appeals probably the respondents would have settled the liability under the Amnesty Scheme. We therefore direct the assessing officer to grant amnesty benefit to the respondents reducing the interest in terms of the scheme and allow settlement of liability by demanding further interest at one per cent per month for the amnesty amount payable from the last date for payment under the amnesty scheme till date of payment.
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