TMI Blog2006 (4) TMI 485X X X X Extracts X X X X X X X X Extracts X X X X ..... laimed rubber. Assessment year relates to 1998-99. The assessee had filed return in the year 1998 showing the taxable turnover of Rs. 2,33,47,360. The assessee was granted SSI exemption for the period from October 10, 1992 to October 9, 1999 and therefore did not collect or remit the tax for the period up to October 9, 1999. When final assessment order was passed by the Assistant Commissioner (Assessment) on May 28, 2002 it was found that the exemption limit had expired prior to October 9, 1999 and the assessee was found liable to pay tax, surcharge and interest for 1998-1999. Tax found payable was Rs. 4,33,045, surcharge payable was Rs. 1,42,498 and an amount of Rs. 5,24,199 was found payable towards interest for the period from Decembe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Taxes however, on examining the records found that the order of the first revisional authority was against law, facts and circumstances of the case and consequently initiated suo motu revision under section 37 of the Act. Commissioner noticed that the assessee had not paid tax along with the return, when it was due, on exhausting the SSI exemption. It was noticed that the assessee was granted SSI exemption from October 10, 1992 to October 9, 1999 and consequently the assessee had not collected or remitted tax up to October 9, 1999. However, when the final assessment was completed it was found that the SSI exemption granted to the assessee had expired on October 8, 1999 and therefore assessee was liable to collect and pay tax. It was als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of the original annual return. The assessee submitted that revised return ought to have been filed on or before November 1, 1999 and since it was not done revised return filed cannot be acted upon by the assessing authority. The Commissioner rejected the objections filed by the assessee pointing out that the dealer had a statutory obligation to furnish true and correct figures in the return on exhausting the limit of exemption. It was stated that once the relief of exemption was exhausted, the dealer had a statutory obligation to pay tax and since the same was not done, interest is payable on the tax due. The order of the Deputy Commissioner dated February 4, 2003 was therefore set aside. Counsel appearing for the appellant Sri Har ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment basis. Taking note of the earlier decision of the apex court in Associated Cement Co. Ltd. v. Commercial Tax Officer [1981] 48 STC 466 and J.K. Synthetics Ltd. v. Commercial Taxes Officer [1994] 94 STC 422, the court took the view that the liability of the assessee to pay sales tax could have arisen either on return of turnover being filed by way of selfassessment or else on an order of assessment being made. That was a case where apex court has examined the scope of section 23(3), especially the words any other amount assessed or due as occurring in that section of the Act. In that case no amount was collected by the assessee and therefore no tax was deposited. Facts in the present case are entirely different. In this case the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the tax also with the return. The tax was due to the State once the period of SSI exemption expired. Since the assessee s turnover had exceeded the exemption limit, necessarily he should have disclosed the correct turnover in the return and should have paid the tax due under the Act which he has not done and therefore, in our view, sub-section (3) of section 23 would squarely apply. We may in this connection also indicate sub-section (3A) of section 23 was inserted by Act No. 14 of 1998 with effect from April 1, 1998. Subsection (3A) states that where any dealer has failed to include any turnover of his business in any return filed or where any turnover has escaped assessment, interest under sub-section (3) shall accrue on the tax due ..... X X X X Extracts X X X X X X X X Extracts X X X X
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