Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2010 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (8) TMI 856 - HC - VAT and Sales TaxWhether until assessment tax due under the Act is what is declared as due by them in the monthly and annual returns filed by them? Held that:- The tax on excise duty became due from the petitioners "as tax due under the Act " after the pronouncement of law by the Full Bench of this court on December 16, 1992(1). We, therefore, hold that the petitioners are defaulters in payment of sales tax on excise duty from the monthly returns for January, 1993 onwards. There was delay in payment in some cases up to December, 1996 and in some other cases till March, 1997 and the petitioners are liable to pay interest for the belated payment of tax on excise duty from the monthly returns filed in January, 1993 onwards. Since tax was payable along with monthly returns, interest for default is to be reckoned from the due date on which tax was payable under the monthly returns filed in January, 1993 onwards. O.Ps. and S.T. Rv stand allowed in part by deleting levy of interest for periods up to monthly return filed till December, 1992, that is up to monthly return filed for November, 1992 and by sustaining the interest levied for the remaining period of default. since all the petitioners are public sector companies, and considering the high rate of interest payable under section 23(3) which we have upheld for the periods commencing from the period after the Full Bench judgment, we feel if the petitioners clear the entire arrears of interest within one month from the date of receipt of a copy of this judgment, they should be exonerated from payment of penalty under section 45A of the Act for the assessment years 1988-89 to 1992-93 for the Indian Oil Corporation Ltd. , 1987-88 to 1990-91 for the Hindustan Petroleum Corporation and for the year 1987-88 for the Bharath Petroleum Corporation Ltd. However, if interest liability is not settled as above, penalty levied will stand sustained and if paid penalty levied will stand cancelled.The petitioners are free to adjust penalty if any paid against balance interest liability while settling interest liability as above
|