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2014 (3) TMI 906 - ALLAHABAD HIGH COURTLiability to pay tax and interest - Demand of interest for not depositing the tax within deferred – Held that:- While taking over the possession of the Assessee`s unit by the M/s Universal Dairy Products Private Limited, the petitioner's unit was actually closed down on 23.12.2002 - The Commissioner u/s 8(2-A) & 4-A of the Act r/w Rule 43 under U.P. Trade Tax Rules, 1948 allowed the deferment in place of exemption in tax on the manufactured products during 31.10.1996 to 22.12.2002 with direction to deposit the admitted tax in terms of Rule 43(4) (b) within three months from 23.12.2002, the day on which the unit was closed down - It was also mentioned in the order itself that on account of closure of business on 23.12.2002, the facility of deferment automatically comes to an end and tax amount ought to have deposited. The Assessing Authority has already granted the benefit of deferment of all the previous years till the date of closure of the unit and only asked the interest after three months from the date of closure of the unit till the date of actual deposit of tax by the petitioner - the petitioner is liable to pay tax after closure of the unit in terms of Rule 43(4) along with interest – There is no illegality, infirmity or jurisdictional error in asking the petitioner for the payment of interest by the impugned orders and the recovery sought to be made cannot be said to be against the provisions of the Act or the Rules made thereunder – No merits – Petition dismissed – Decided against Assessee.
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