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2021 (3) TMI 956 - HC - VAT and Sales TaxLevy of interest under sub Section 2 of Section 7 of the KTEG Act - insertion of sub-section 3 of Section 7 of the KTEG Act - Section 15A of the Karnataka Tax on Entry of Goods, 1979 - HELD THAT:- From perusal of Section 7(1) of the Act, it is evident that under the aforesaid provision, the registered dealer is required to send every month to the Assessing Authority the statement containing such particulars as may be prescribed and shall pay in advance the full amount of tax payable by him. A conjoint reading of Sections 7(1) and 7(2) of the Act discloses that the provisions of Section 7(2) apply to non payment of tax which is declared under Section 7(1) of the Act. In other words, where the dealer admits the liability under Section 7(1) of the Act and in case commits a default, the provisions of Section 7(2) of the Act are applicable whereas Section 8(2) of the Act applies to the dealer in whose case an assessment has been made and the default is made in payment of tax so assessed. The subject matter pertains to Assessment Years 2001-02 to 2008-09. The dealer admittedly paid the taxes and the amount of penalty between the period from 03.03.2010 to 31.03.2011 i.e. prior to passing of the order dated 07.07.2012 and much prior to issuance of clarification by the Commissioner with regard to tax liability on 07.07.2014. Therefore, the provisions of Section 7(2) of the Act could not be invoked in the case of the assessee. The substantial questions of law involved in this petition are answered against the appellant and in favour of the dealer - petition dismissed.
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