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2022 (4) TMI 66 - HC - VAT and Sales TaxLiability of interest u/s 42(3) of the Tamil Nadu Value Added Tax Act, 2006 - barred by time limitation or not - HELD THAT:- The assessment under the Tamil Nadu Value Added Tax Act, 2006 is based on the self assessment by an assessee by filing proper returns declaring the income. Assessment is thus driven by the returns filed by an assessee or a dealer. The assessment will be completed based on the information furnished by an assessee/dealer in the returns and the books of accounts that are produced during assessment. If an assessee fails to file correct returns and furnish required documents, the interest of the revenue cannot compromised. An assessee/dealer cannot take advantage of the lapses committed at a later point of time if subsequently it is found that the turn-over had escaped resulting in evasion of tax by such an assessee/dealer. A reading of Sub Clause 3 to Section 42 of the Act also makes it clear that on any amount remaining unpaid after the date specified for its payment as referred to in subsection (1) or in the order permitting payment in instalments, the dealer or person shall pay, in addition to the amount due, interest at 2% per month of such amount for the entire period of default. The specified date for making payment of tax is in terms of Rule 7 of the Rules. Thus, the challenge by the impugned Notices are without any merits. If there is a failure to tax in time, the dealers are required to pay interest as payment of Interest is consequential. Writ petition dismissed.
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