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2022 (2) TMI 1005 - MADRAS HIGH COURTDemand of interest on the differential amount arrived pursuant to re-assessment under Section 27 of the TNVAT Act - Attachment of Bank Accounts of petitioner - deemed assessment - Section 42(3) of the TNVAT Act - HELD THAT:- In this case, admittedly, the petitioner had disclosed a lower taxable turnover and therefore paid lesser tax. The petitioner was thereafter issued with a notice dated 18.01.2016 under Section 27(1)(a) read with Section 22(3) of the TNVAT Act, 2006. By an order dated 25.02.2016, the proposal contained in the above notice was confirmed and thus the petitioner was held liable to pay a gross amount of ₹ 3,92,633/- as tax due for the Assessment Year 2009-2010 and after adjusting an amount of ₹ 1,76,385/- already paid, the balance tax payable by the petitioner was determined as ₹ 2,16,248/-. The petitioner has also paid the said amount on 24.03.2016. Whether the petitioner can be absolved from payment of interest on the delayed payment of differential tax paid for the period from the date on which the tax was originally to be paid and the actual date of payment of the differential tax on 24.03.2016? - HELD THAT:- In this case, there was a deemed assessment in terms of proviso to Section 22(2) of the TNVAT Act, 2006. Therefore, the notice was issued to revise the self assessment made by the petitioner under Section 21 of the TNVAT Act, 2006 - the language in Section 42(3) of the TNVAT Act, 2006 makes it very clear that the interest is payable for the entire period of default. The default period of the petitioner started from the date on which the petitioner was originally required to pay tax on his turnover in the monthly returns under Section 21 of the TNVAT Act, 2006. This is a case where there was a suppression of taxable turnover by the petitioner in the returns filed under Section 21 of the TNVAT Act, 2006 read with Rule 7 of the TNVAT Rules, 2007. Since the petitioner failed to correctly declare the taxable turnover and paid the differential tax only after the proceeding was initiated vide notice dated 18.01.2016 against the petitioner under Section 27(1)(a) read with Section 22(3) of the TNVAT Act, 2006. There can be no premium for such lapse. There can be no waiver of interest for default period as such tax ought to have paid at the time of filing of return. By paying tax pursuant to revision of assessment, the petitioner is not doing a favour to the revenue. The petitioner is merely paying the tax which ought to have been earlier. Thus, there is no merit. Petition dismissed.
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