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2016 (8) TMI 1124 - HC - VAT and Sales TaxDemand of interest - Classification - Skimmed Milk Powder - rate of tax 10% - milk food - rate of tax 4% - interim injunction for limited period - restrain from collecting of tax more than 4% on the skimmed milk - remittance of differential 6% of tax on withdrawal of interim injunction - section 24(3) of the Act states that on any amount remaining unpaid after the date specified for its payment as referred to in sub section (1) of Section 24 or in the order permitting payment in installments, the dealer or person shall pay, in addition to the amount due, interest @ 1˝ % of such amount for the first three months of default and 2% for the subsequent period - Section 13 of the Act deals with advance payment of tax and for the remaining tax, there should be a provisional assessment and on such determination and intimation to the dealer, he shall pay the tax - whether belated remittance of differential tax would attract interest under section 24(3) of the Act? Held that: - there is no provision under the TNGST Act, which permits charging of interest unless and until there has been provisional assessment and notice of demand prescribing the period within which tax was to be paid. There is no record to show that provisional assessment was made and the notice calling upon the petitioner to pay the differential rate of tax was only on the ground that the petitioner did not remit 10% tax but remitted only 4% tax. The petitioner did not admit his return and assessment was completed and he was assessed to tax @ 10% only on 27.10.1997 i.e. after about seven years after the relevant period viz., August and September 1991. After the Assessing authority held that tax is liable to be paid @ 10%, the petitioner paid the differential tax of 6% immediately after the order was passed in 1997. In such circumstances, the provisions of Section 13 would not be attracted to the facts of the present case. Demand of interest not justified - petition allowed - decided in favor of petitioner.
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