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2019 (8) TMI 1362 - HC - VAT and Sales TaxLevy of Interest - belated payment of additional sales tax - It is the case of the petitioner that during the course of the revision of assessment made in the year 1997, tax was levied on the sale of REP licences and thereafter since the petitioner had paid the tax within the due dates, interest cannot be levied in view of Section 24(3) of the TNGST Act - whether the petitioner is liable to pay interest when he had paid the tax within the due date in view of Section 24(3) of the TNGST Act? HELD THAT:- The petitioner's liability to pay the tax on sales of REP licences was very much in existence during the due date for the assessment years 1993- 94 and 1994-95 and the Assessing Officer was unable to confirm the proposal to levy tax on this REP licences only in view of the interim stay orders of the Hon'ble Supreme Court. The revisional authority had also followed this position which was existing even during the time of original assessment, but which came to be stalled for some time, owing to the interim orders of the Hon'ble Supreme Court. Just because the petitioner had chosen to pay the tax within the due date after the revisional authority had assessed the demand raised on sales of REP licences, it cannot be said that there was no liability cast on the petitioner during the time of original proposal to levy tax on REP licences for the relevant assessment years 1993-94 & 1994-95. Hence, when the question whether REP licences constitute goods came to be resolved by this Court in the year 1994 itself and there were no other contrary view expressed by any of the High Courts, the Hon'ble Supreme Court had only affirmed the views of the High Courts holding that REP licences constitute goods. In the instant case, the petitioner herein had sought for exemption from payment of tax on REP licences and the issue was pending before the Hon'ble Supreme Court in which the petitioner had also filed a SLP. During the pendency of such proceedings, there was no certainty on the decision to be taken in the issue as to whether there is liability cast on the petitioner, in view of the interim orders granted by the Hon'ble Supreme Court. The clarification came only after the final orders were pronounced in favour of the department. The additional ground raised by the petitioner is that the levy of interest on belated payment of additional sales tax is not warranted in the absence of an express provision under the Tamil Nadu Additional Sales Tax Act, providing for levy of interest. Such a contention cannot be sustained since the petitioner has lost sight of the amendment made to the Tamil Nadu Additional Sales Tax Act, wherein a specific provision has been inserted providing for levy of interest in respect of additional sales tax. The Amendment Act also provides for validation of any interest paid or payable for belated payments of additional sales tax with effect from 01.04.1970. Petition dismissed.
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