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2014 (7) TMI 579 - HC - VAT and Sales TaxLevy of penalty and interest when there was no charging section - Rejection of application under Samadhan Scheme - Bar of limitation - Maintainability of appeal - Held that:- The Period of limitation has been provided under the Act for the assessees to prefer or avail the statutory remedies under the Act and not for a Writ Petition under Article 226 of the Constitution of India - Any levy of tax including interest or penalty under any taxing statute must be in consonance with the Act. Therefore, any claim questioning the jurisdiction of the authority to levy tax can be raised by way of a Writ Petition de hors the availability of alternative remedy, as it is only a self-imposed restriction of the Courts. In the present case, considering that the locus standi of the respondents to demand interest on Additional Sales Tax and penalty is questioned, the Writ Petition is held to be maintainable. During the relevant assessment year, there was no provision to levy interest on belated payment of additional tax or in other words, there was no provision enabling the applicability of Section 24(3) towards tax due, under the Act - interest cannot be demanded for belated payment on Additional Sales Tax, as there is no substantial provision in the TNAST Act itself and similarly, no penalty can be levied, as there is no charging Section under the TNAST Act to levy penalty for the relevant Assessment year. The provisions of the TNGST Act cannot be extracted or read upon for the purpose of levy of interest or penalty under the TNAST Act. The validating Acts are applicable only to the assessment under TNGST Act. Further, in view of the bar under Article 265 on the state, the question of waiver is not applicable to a taxing statute - proceedings of the first respondent, dated 26.04.2004, confirmed by the proceedings of the second respondent, dated 12.09.2008, are set aside insofar as the levy and demand of interest of ₹ 2,09,700/- and ₹ 5,39,532/- towards penalty on the additional sales tax payable by the petitioner - Decided in favour of assessee.
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