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2013 (5) TMI 59 - ALLAHABAD HIGH COURTDelayed payment of entertainment tax - Petitioner is the proprietor and owner of the Cable T.V. Network - whether interest can be demanded on delayed payments of entertainment tax? - assessee contested against penalty levy as violation of the principles of natural justice - Held that:- From perusal Rule 16 of Rules, 1997, it reflects that installment of entertainment tax, if not paid within the time specified for such payment, the proprietor is liable to pay interest calculated at such rate as may be prescribed in additional to such tax or penalty or installment. Thus, it is clear that there is a liability to pay interest on belated payment of installment. Rule 11 says that the interest can be levied at the rate specified therein from the date the instalment became due but was not paid accordingly. Thus the liability to pay interest existed even earlier to the impugned demand. The quantification of interest was provided under the rule by prescribing the rate of interest in Rule 11 which was made after period in question. But the rule read in that context provides that the interest would be payable from the date the tax became due but was not paid. Thus, it is clear that the impugned demand levying interest on delayed payment is valid. As the appellants had given incorrect information with regard to total number of connections given by them & requisite information was not provided in spite of issuance of notices and requests made to the petitioner before imposition of penalty but in spite of grant of sufficient opportunities, the petitioner did not give correct information - willful mis-statements and suppression of facts thus the imposition of penalty is not in violation of the principles of natural justice.
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