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2022 (6) TMI 700 - HC - VAT and Sales TaxValidity of assessment order - levy of interest on belated payments of taxes in terms of Section 42(3) of the TNVAT Act - HELD THAT:- Admittedly, no show cause notice for the levy of interest was ever issued - One feature in the 2016 assessments is that the computations refer to the position that admitted taxes, as per the returns filed under the Act, were itself not settled. In such an instance, the petitioner is liable to pay interest in terms of the Section 42 of the Act in regard to the admitted tax and such a levy is automatic. However, the impugned notice does not make a distinction between the components of the tax being admitted tax & tax levied on additions made in assessment upon which interest has been levied, had this been done, and the assessing authority made a bifurcation as regards the interest related to the belated payment of admitted tax and the interest relating to the tax on added turnover, there would have been no necessity for further discussion in relation to the first category of interest - All that would have remained is for the assessee to make its submission in regard to the second component of interest, that is the interest on the payments of tax on additional turn over. However, this has not been done, as a result that there is no clarity on the bifurcation and consequently, the interest relating to the two components. Needless to say, if the admitted tax has been paid in time, the question of levying interest in 2019 for the remainder of the taxes, after a period of four years when the tax was paid, will not arise as the authorities are expected to have raised demands of interest concurrent with the tax demand or in any event, within a reasonable period of time thereafter. Petition disposed off.
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