Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2015 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (11) TMI 1076 - HC - VAT and Sales TaxLevy of interest on differential amount arising due to final assessment - Whether section 12(1B) is attracted to the assessment order passed under section 12(3) of the Act - Held that:- When a dealer files a return, states what is the tax payable, but he fails to make payment of the said tax or makes short payment, then he is liable to pay interest on the tax due under the Act. After the filing of the return, if the assessing authority is satisfied that any return submitted under sub-section (1) is correct and complete, he shall assess the dealer on the basis thereof by virtue of the power conferred on him under sub-section (2) of section 12 of the Act. However, if no return is submitted by the dealer under sub-section (1) before the date prescribed or specified in that behalf, or if the return submitted by him appears to the assessing authority to be incorrect or incomplete, the assessing authority shall assess the dealer to the best of his judgment, recording the reasons for such assessment. On such assessment if it is found that the dealer is due in any amount of tax, then he shall issue notice to the dealer in form 6 calling upon the dealer to pay the tax as finally assessed within 21 days from the date of service of notice on such dealer. If the amount is not paid within 21 days from the date of service of notice, then under section 13 he is liable to pay interest on such difference in the tax finally assessed. - section 12(1B) is attracted when there is a default in payment of tax due under the Act from the dealer. It has no application to the interest payable in terms of final assessment. Therefore, in this case the order passed under section 12(1B) of the Act levying interest at the rate of two per cent. per month on the difference in the amount is unsustainable - Decided in favour of assessee.
|