TMI Blog1993 (11) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... ry, 1992, it realised the mistake committed and accordingly filed a revised return for the actual turnover of December, 1991 on February 19, 1992 and paid the difference in tax, amounting to Rs. 20,15,601. Thereafter, it received a notice in form 29 dated March 17, 1992 from the Assistant Commissioner (CT), Central Assessment Circle I, Greams Road, Madras-6 (third respondent) levying interest of Rs. 40,312 by way of penalty under section 24(3) of the Act, calculated at the rate of two per cent per month on the tax due, that is to say, on Rs. 20,15,601. 4.. Aggrieved by the demand so raised, a revision had been filed under section 33 before the Deputy Commissioner (CT) (North), Ajith Buildings, III floor, Madras-6 (second respondent), who, in turn, dismissed the same in his proceedings R.P. No. 203 of 1992 dated August 28, 1992. 5.. A further revision was filed under section 35 before the Joint Commissioner of Commercial Taxes-IV, Office of the Special Commissioner and Commissioner of Commercial Taxes, Chepauk, Madras-5 (first respondent), who, in turn, dismissed the same in his proceedings in D. Dis. No. JJ1/116743/92 dated April 6, 1993. 6.. Aggrieved by the said orders, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to by learned counsel for the petitioner, could not at all be stated to be holding the field, as of now, inasmuch as section 24 had taken a metamorphic change, by subsequent amendments thereto and this aspect of the matter came to be considered in a later decision (unreported) of another Division Bench of this Court in Writ Appeal No. 922 of 1989 (Apollo Tubes Limited v. Additional Deputy Commercial Tax Officer, Ranipet) dated July 9, 1992*, which expressed the view, that by virtue of the amendments, as subsequently issued, the view, as expressed in the earlier decision of the Division Bench, cannot be stated to be still holding the field; that in such a situation, the orders impugned are quite in accordance with the present law and that the foundational or jurisdictional facts, in the case on hand, do not at all warrant the adoption of a procedure, as contemplated under rule 18(4) of the Rules. 10.. In the process of consideration of rival submissions of either learned counsel, it becomes absolutely necessary to set out the relevant provisions of the Act, as they originally stood and their present position, after amendments. 11.. Section 24(3), as it originally stood, reads ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all be paid in such manner and in such instalments, if any and within such time as may be specified in the notice of assessment, not being less than twenty-one days from the date of service of the notice. The tax under sub-section (2) of section 13 shall be paid without any notice of demand. In default of such payment the whole of the amount outstanding on the date of default shall become immediately due and shall be a charge on the properties of the person or persons liable to pay the tax or interest under this Act." 15.. Section 13(2) is to the following effect: "In lieu of the tax provisionally determined under sub-section (1), a dealer may, at his option, pay tax in advance during the year on the basis of his actual turnover for each month or for such other periods as may be prescribed. For this purpose, he may be required to furnish returns showing his actual turnover for each month or other periods as may be prescribed and to pay tax on the basis of such returns. The tax under this sub-section shall become due without any notice of demand to the dealer on the date of receipt of the return or on the last due date as prescribed, whichever is later." 16.. For the enforceme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specified in sub-rule (2) or before the expiry of the period prescribed in subrule (5) or if the return submitted appears to be incorrect or incomplete, the assessing authority shall, after making such enquiry as he considers necessary and after giving the dealer notice as prescribed in rule 12, determine the turnover to the best of his judgment and provisionally assess the tax or taxes payable for the month and shall serve upon the dealer a notice in form B-2 and the dealer shall pay the sum demanded at the time and in the manner specified in the notice." 17.. The latest decision of the Division Bench, as referred to supra [Apollo Tubes Ltd. v. Additional Deputy Commercial Tax Officer [1994] 93 STC 339 (Mad.)], happened to consider the effect and force of the various provisions, as extracted above, while dealing with the question whether the proceeding covered by rule 18(3) would fall under section 24(3), in paragraph 6 of its judgment and ultimately expressed thus: "6. One of the other contentions dealt with by the Division Bench was whether proceeding covered by rule 18(3) would fall under section 24(3). Having regard to the language of section 24(3), as it stood then, the D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he month of December, 1991, by paying the difference in tax. In such process, there was a deficiency of turnover to the tune of Rs. 20,15,601 for the month of December, 1991. The tax due therefor, which would have been payable on January 20, 1992, had actually been paid on February 19, 1992, after a delay of thirty days. 20.. On the face of such candid admission as to the actual turnover for the month of December, 1991, with respect to which, the return is required to be filed on or before January 20, 1992, it goes without saying that the tax liability for the turnover reported, had accrued and become payable on and from January 20, 1992 and consequently, for the delay of thirty days involved in remitting the payment of tax on the deficiency of turnover, it goes without saying that the petitioner-assessee has to be mulcted with the liability for payment of interest at two per cent per month according to the salient provisions adumbrated under section 24(3) of the Act. 21. It is not as if this sort of a mistake had been detected by the respondent-assessing authority, in the course of a random check of monthly turnover or check of the accounts at the fag end of the assessment y ..... X X X X Extracts X X X X X X X X Extracts X X X X
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