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2009 (3) TMI 970 - HC - VAT and Sales TaxWhether the payments made by petitioner must be adjusted towards the tax and not towards interest? Held that:- The facts of this case are to be noted as admittedly, all payments were made after January 1, 2000. The words of section 55 are clear and unambiguous, namely, if any payment is made it has to be appropriated towards interest accrued on such tax or other amount and the balance available is to be appropriated towards the principal amount. The words "tax" and "principal amount" appear to be used interchangeably. Thus there is no merit in the contention raised by the petitioner on the basis of section 59 of the Indian Contract Act. The mere fact that the payment is made earlier to the enforcement of section 55C by itself would not result in any shield against recomputation. It further requires the actual appropriation by an officer towards the principal amount. By necessary implication it means that even prior to section 55C if payment is made it was certainly open to the officer to adjust it against interest. In fact, the petitioner may not have the right to contend that even prior to section 55C there was a legal right to have the amount appropriated on a mere request to demand for tax. In fact, the language used in section 55C as already noted embraces the word "principal". Appeal dismissed.
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