1992 (1) TMI 325

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..... r under rule 10 of the Central Sales Tax (Orissa) Rules, 1957, there is no scope for the Revenue to reopen the case under section 9(2) of the Central Sales Tax Act, 1956?" 2. The background facts as indicated in the statement of the case are as follows: Sri Jayasankar Traders (hereinafter referred to as "the assessee") filed its return for the assessment year 1980-81 under the Central Sales Tax Act, 1956 (in short "the Central Act") and the Central Sales Tax (Orissa) Rules, 1957 (in short "the Central Rules"). The assessing officer completed the assessment. Subsequently, a proceeding under rule 10 of the Central Rules was initiated and interest of Rs. 600 was charged on the ground that the assessee had withheld a portion of the admitted .....

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..... of the Central Rules had been nullified by the appellate authority, resort to section 9(2) of the Central Act was not ruled out. In spite of notice the assessee has not appeared in this case. 4.. Rule 10 of the Central Rules and section 9(2) of the Central Act are contextually different. Rule 10 deals with cases of non-assessment or underassessment. The language used in this rule is more or less similar to that used in section 12(8) of the Act. Section 9(2) of the Central Act deals with procedural aspects relating to levy and collection of tax or penalty and charge of interest. "Charging or payment of interest" was inserted by Act 103 of 1976 in the said section, and by operation of a deeming provision it is operative from the date of co .....

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..... ich such assessment is made. The satisfaction has to be reached, and conclusion has to be arrived at that the assessee did all or any of the enumerated acts in relation to furnishing of return, or information and that there was intention to affect the quantum of tax payable by him or his liability to pay the tax. In the absence of adjudication of these aspects, interest could not have been charged. From the records produced before us, we find that the assessing officer proceeded to charge interest because, according to him, the assessee had withheld the amount of admitted tax. Notice issued to the assessee did not require the assessee to show cause as to why the withholding of tax, if any, attracted charge of interest. Accordingly, we answe .....

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