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2024 (2) TMI 192 - HC - VAT and Sales TaxExtension of time for payment under Section 8(1) of the Jammu & Kashmir General Sales Tax Act, 1962 - Compliance with the requirements of proviso to Section 11 (1) of the Act - HELD THAT:- The scope and purport of ‘‘Explanation’ to 3rd proviso to Sub Section (1) of Section 11 the Act would be that even if any appeal has been preferred challenging the correctness of the assessment of the tax and other demands made under Section 8 of the Act, in the meantime, if the applicant assessee seeks extension of time for making payment under Section 8 of the Act, the provisions of Sub-section (1) of Section 11 of the Act will not be applicable, inasmuch as, if the assesee decides to make the payment of the assessed amount by seeking extension of time, the question of filing appeal within 30 days from the date he is served with the notice of demand, or making any deposit as required under Clauses (a), (b) and (c) will not arise. The ‘Explanation’ cannot be invoked to seek deferment of payment stipulated under Clauses (a), (b) and (c), which will be necessary for the appellant authority to entertain the appeal as the statute is very clear that no appeal shall be entertained unless the appellate authority is satisfied that the payments required under Clauses (a), (b) and (c) have been made. Nothing prevented the petitioner from filing the return with the claim of ‘nil liability’ towards the taxes by taking the plea that he was not liable to pay any tax, as all taxes were to be paid by the Principal Contractor and not by the petitioner. Thus, the above assessment order dated 29.03.2021 clearly shows that the petitioner assessee was given an opportunity to appear and produce relevant documents, and though a representative of the assessee petitioner had appeared, he failed to produce any such document or explain his position which is sought to be explained. Similarly, the assessee also failed to file the return showing absence of any liability to pay tax as per the terms and conditions of the contract and the Letter of Intent. The petitioner himself has to be blamed for the situation he finds himself now. Though the statutory requirement for payment of the amount as stipulated under Clauses (a), (b) and (c) of the second proviso to the Section 11(1) of the Act may appear to be harsh against the petitioner, yet, this is a situation he could have avoided by presenting relevant documents before the Assessing Authority at the time of hearing and also by filing return showing a nil Tax liability. The petitioner will be liable to pay necessary amount as contemplated under Clauses (b) and (c) to the second proviso to Sub-Section (1) of Section 11 of the Act for the appeal to be entertained by the appellate authority, and no case has been made out to interfere with the impugned order dated 27.03.2023 passed by the respondent no. 2 - Petition dismissed.
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