TMI Blog2013 (6) TMI 639X X X X Extracts X X X X X X X X Extracts X X X X ..... puting the liability of tax on the Central Excise Duty. Thus, it cannot be treated as admitted tax and the interest under Section 8 (1) of the Act cannot be levied and demanded. The authority below is only entitled for the interest under Section 8 (1-B) of the Act and not under Section 8 (1) of the Act. - Decided partly in favor of assessee. - Trade Tax Revision No. 579 of 2003 - - - Dated:- 31-3-2011 - Rajes Kumar, JJ. ORDER This revision relates to the assessment year 1986-87 under the Central Sales Tax Act. In the present revision the following questions have been raised: 1. Whether the Trade Tax Tribunal was not justified in confirming the imposition of tax on the Notional Excise Duty which under the statutory provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing with Sections 8 (1) and 8 (1-B) of the U.P. Trade Tax Act held as follows: "The dispute here, as aforesaid, was in regard to the classification of the assessee's products. Such classification dispute is ordinarily resolved in assessment proceedings and if resolved against the assessee. The assessee has to make payment of the differential amount of tax as required by sub-section (1-A) failing which the provisions of sub-section (1-B) apply. The requirement of sub-section (1) is that the assessee must pay tax on the amount of his turnover as particularised in the explanation thereto. Interest under the provisions of sub-section (1) cannot be levied in respect of a dispute such as a classification dispute which is resolved only by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ptive word, which ordinarily means 'that which must be paid or is due, or may be paid' but its correct meaning can only be determined if the context in which it is used is kept in view. The word has been frequently understood to mean that which may, can or should be paid and is held equivalent to 'due'. Therefore, the conjoint reading of Sections 7(1), (2) and 11-B of the Act leaves no room for doubt that the expression 'tax payable' in Section 11-B can only mean the full amount of tax which becomes due under sub-sections (2) and (2-A) of the Act when assessed on the basis of the information regarding turnover and taxable turnover furnished or shown in the return. Therefore, so long as the assessee pays the tax which according to him is due ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 (1) of the Act as the assessee was disputing the liability bonafidely. I find substance in the argument of learned counsel for the applicant. The applicant is contesting the liability of tax on the amount of Central Excise Duty since very beginning. At no stage the liability has been admitted. In the present revision also, the liability is being disputed. There is no earlier decision of this Court or Apex Court in the case of assessee or in any other case on the similar facts and circumstances, at the relevant time wherein it has been held that the Central Excise Duty is part of the turnover and liable to tax. Therefore, it is a case where the assessee is bonafidely disputing the liability of tax on the Central Excise Duty. Thus, it can ..... X X X X Extracts X X X X X X X X Extracts X X X X
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