TMI Blog2010 (8) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 24(3) of the Tamil Nadu General Sales Tax Act, 1959 cannot be found fault with. Though the petitioner has contended that he has become proprietor of the concern from March 31, 2004, the fact remains that the refund amount relates to the assessment year 2003-04. On the facts and circumstances of this case, the apprehension of the respondent is well-founded and reasonable. In view of the above discussion, this court is of the considered view that there is no manifest illegality in rejecting the request of the petitioner for adjustment towards the arrears of tax. Hence, the writ petition is dismissed. - W.P. (MD). No. 11659 of 2005 - - - Dated:- 24-8-2010 - MANIKUMAR S. , J. ORDER:- S. MANIKUMAR J. The petitioner h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2003-04 was pending before the Deputy Commercial Tax Officer and that the said amount can also be adjusted towards interest. According to the petitioner, a sum of Rs. 2,000 paid as caution deposit and the refund amount of Rs. 3,581 can be adjusted towards the total liability of tax of Rs. 12,113. Therefore, the petitioner made a representation, dated September 29, 2005 to the respondent to adjust the abovesaid amounts as against tax liability. The respondent without considering the request in proper perspective, has simply rejected the same. The said order is under challenge in this writ petition. Assailing the correctness of the impugned order, Mr. Veera Kathiravan, learned counsel for the petitioner submitted that the reasons assigned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nalty of Rs. 24,668 levied under section 12(b) of the Tamil Nadu General Sales Tax Act. The learned Additional Government Pleader further submitted that the writ petitioner issued three cheques for Rs. 16,113 dated August 23, 2005, August 31, 2005 and September 6, 2005, respectively, towards the arrears of M/s. Surya Marketing, drawn on Central Bank of India, Madurai, in favour of the respondent. The abovesaid cheques were issued by the petitioner in the capacity of one of the partners of M/s. Surya Marketing. However, these cheques were returned for want of funds. Hence, the respondent has issued notice, dated September 19, 2005 to the petitioner's firm instructing them to pay the entire arrears immediately. On September 21, 2005, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urai namely, 1. Thiru. G. Sivanandam, S/o. G. Gandhi Chettiar, 2. Thiru. R. Senthilkumar, S/o. Ramachandran Chettiar, and 3. Mrs. S. Jeyanthi, W/o. Thiru. G. Sivanandam give their consent letter to do so. Similarly, in respect of adjustment of refund due to M/s. Pipes India, it can be adjusted only if all the partners of M/s. Pipes India, give their consent letter to make adjustment. If the other partners are not willing either to adjust the security deposit or to adjust the refund amount, these amounts cannot be adjusted towards arrears of tax. He further submitted that if the amounts were adjusted as per the request of the petitioner, the other partners have got every right to claim security deposit or refund of excess amount which stands ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial concern, M/s. Pipes India who issued three cheques for Rs. 16,113 dated August 23, 2005, August 31, 2005 and September 6, 2005, respectively, towards the arrears of tax to be paid by M/s. Surya Marketing, drawn on Central Bank of India, Madurai in favour of the Assistant Commissioner (CT), and all the cheques have been returned for want of funds. Therefore, the respondent has issued notice dated September 19, 2005 instructing them to pay the entire arrears immediately. As per rule 40 of the Tamil Nadu General Sales Tax Rules, 1959 every partner shall be jointly and severally responsible for the payment of tax, fee or other leviable under the Act. The condition imposed by the respondent that security deposit can be adjusted towards arrea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not supported by any materials. Section 24(3) of the Tamil Nadu General Sales Tax Act states that on any amount remaining unpaid after the date specified for its payment as referred to in sub-section (1) or in the order permitting payment in instalments, the dealer or person shall pay, in addition to the amount due, interest at one and half per cent per month of such amount for the first three months of default and at two per cent per month of such amount for the subsequent period of default: Provided that if the amount remaining unpaid is less than one hundred rupees and the period of default is not more than a month, no interest shall be paid: Provided further that where a dealer or person has preferred an appeal or revision agai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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