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2016 (8) TMI 1337 - HC - VAT and Sales TaxWaiver of interest - non-payment of tax - statutory liability - Section 24 of the Bihar VAT Act. Held that: - It is admitted fact that the petitioner was granted exemption from payment of tax for a period of 10 years i.e. from 14th of April, 1998 to 13th of April, 2008 but due to enactment of the VAT Act with effect from 1st of April, 2005, the provision of exemption came to an end. Section 96 of the VAT Act contains transitory provisions. The petitioner has failed to deposit the amount of tax after the enactment of the VAT Act with effect from 1st of April, 2005. Since the liability is statutory, therefore, it is presumed that the petitioner has collected tax from its consumers as a manufacturer of non-alcoholic beverages. It is not the stand of the petitioner that the burden of amount of interest paid by it was not passed on to the consumers. The petitioner cannot claim that the interest would not be payable as the same is payable in either situation for non-filing of return or for not filing the deferred tax returns. There was no immunity to pay the tax amount and consequently the interest. Once the interest has been deposited, the burden of the said interest must have passed on to the consumers. The interest for not paying tax in terms of Section 24 of the VAT Act or seeking deferment in terms of Section 96(3)(b) of the VAT Act is a statutory interest and cannot be claimed by the petitioner once there is no assertion that the burden has not been passed on to the consumers. Petition dismissed.
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