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2013 (5) TMI 149 - HC - VAT and Sales TaxChargeability of interest u/s 27(1) - As per petitioner provision of interest u/s 27(1) would only apply where the petitioner/ dealer failed to pay the “tax due” as required by section 21(3) of the said Act. Thus, according to the petitioner, prior to an assessment, unless and until the dealer filed a return, there could not be any “tax due” because that would have relation to the amount of tax due “according to the return” - Held that:- From an examination of the decisions of Rajasthan v. Ghasilal [1965 (1) TMI 41 - SUPREME COURT OF INDIA and Maruti Wire Industries Pvt. Ltd. v. STO & ORS [2001 (3) TMI 856 - SUPREME COURT OF INDIA] it is apparent that the expression “tax due” as appearing in section 27(1) of the said Act would have to be read in relation to the provisions of section 21(3) thereof. Section 21(3) of the said Act has clear reference to the furnishing of a return. Moreover, it has reference to the full amount of tax due from a dealer under the Act “according to such return”. The tax which is said to be due under section 27(1) of the said Act must be the tax which is due “according to a return”. It is obvious that if no return is filed then there could be no tax due within the meaning of section 27(1) of the said Act read with section 21(3) thereof. The tax which is ultimately assessed is the tax which becomes due on assessment and if this tax so assessed is not paid even after the demand is raised then the dealer would be deemed to be in default and would be liable to pay interest under section 27(2) of the said Act. But till such tax is assessed no interest can be levied on such a dealer, who has not filed a return under section 27(1) of the said Act. Thus, it is evident that the impugned order is not in accord with the Constitution Bench decisions of the Supreme Court in Rajasthan v. Ghasilal [1965 (1) TMI 41 - SUPREME COURT OF INDIA]. Thus, writ petition is allowed to the aforesaid extent.
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