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2014 (9) TMI 911 - HC - VAT and Sales TaxDemand of interest under Section 31 of the West Bengal Sales Tax Act, 1994 - Held that:- If two taxes are credited into the same fund it creates a gross credit in the fund. Similarly, short payment of Central Sales Tax in circumstances above into a fund against a corresponding increased payment of State Sales Tax into it does not reduce the gross credit. Therefore, if a dealer wants adjustment or set off, it is to be readily granted without insisting on any formalities. There is no question of charging any interest, penalty etc. provided the deposits were made concurrently. Interest is a kind of damages which a person claims for loss of money, according to Bhai Jaspal Singh and Another Vs. Assistant Commissioner of Commercial Taxes and Others reported in [2010 (10) TMI 899 - SUPREME COURT OF INDIA] and Indodan Industries Ltd. Vs. State of U.P. and Others reported in [2009 (10) TMI 516 - SUPREME COURT OF INDIA] cited by Mr. Sengupta for the petitioner. Here there is no loss to the government. - gross tax paid by the assessee was not even a paisa short and that it was paid into one account or one fund. Therefore, there could not be any monetary loss to the government for which it could legitimately claim interest. - this kind of an adjustment can be made only when taxes paid in excess or short paid are credited into a known account or fund and can be easily adjusted. This ratio would not apply in case of interdepartmental adjustment or completely different types of taxes. - order of the Special Commissioner is set aside - Decided in favour of assessee.
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