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2019 (10) TMI 1498 - HC - VAT and Sales TaxValidity of assessment order - reversal of input-tax credit (ITC) allegedly claimed in excess - interest in terms of section 42(3) of TNVAT Act - HELD THAT:- The scheme of levy of interest under section 42 is applicable to all assessments of tax barring a self assessment under section 21. Thus where any amount is due as per the return filed by the petitioner, the same is immediately payable and no separate notice of demand need be issued in that regard as the return of income is itself an assessment of the petitioner. In all other cases, where pre-assessment notice was issued to the petitioner and a demand raised vide an order of assessment, such order of assessment shall be deemed to be a demand notice and the demand raised there under is to be paid within 30 days from the date of service of the order of assessment. In such cases, interest under section 42(3) is liable to be paid in addition to the tax demanded at the rate of two per cent. per month for such month for the entire period of assessment. In the present case, the petitioner has admittedly remitted the demand for the years 2007-08 and 2008-09 on January 31, 2011 and June 23, 2011 even prior to the dates of assessment, i. e., December 23, 2011. Thus and since the demands have been paid within the time lines stipulated in terms of section 42(1), no interest can be levied in terms of section 42(3). As far as the period 2009-10 is concerned, the order of assessment is dated September 9, 2011 and the demand raised has been remitted on October 7, 2011 within 30 days from date of order itself. Thus even in this case, the provisions of section 42(1) and 42(3) of the Act are inapplicable. The writ petitions are allowed.
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