TMI Blog2009 (11) TMI 869X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) of section 55C is not with reference to the period for which arrears are paid, but reference to the date of payment made in discharge of arrears of tax and interest by the dealer. In other words, all payments made after January 1, 2000 towards the discharge of arrears of tax will be subjected to adjustment under section 55C(1) irrespective of the year to which the arrears of tax and interest relate. We, therefore, uphold the order of the learned single judge and dismiss the writ appeal - W.A. No. 2034 of 2009 - - - Dated:- 4-11-2009 - RAMACHANDRAN NAIR C.N. AND MOHANAN V.K. , JJ. The judgment of the court was delivered by C.N. RAMACHANDRAN NAIR J. This writ appeal is filed against the judgment of the learned single judge(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 55C does not apply for the arrears of tax pertaining to the assessment years prior to the introduction of section 55C which came into force on January 1, 2000. In other words, the appellant's claim is that the payments made towards arrears of tax for the period up to December 31, 1999 could not be subjected to adjustment first towards interest in terms of section 55C of the Act. Consequently, the appellant's claim is that payment though made after January 1, 2000, should not be first adjusted towards interest, but it should be first adjusted towards the tax arrears in terms of appellant's request. The learned single judge(1) upheld the assessment made by the assessing officer for the assessment years 1994-95 to 2000-01 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs of tax due for the periods prior to the coming into force of the said provision, viz., January 1, 2000. We are unable to accept the contention because on the face of it, section 55C applies to all payments made on or after January 1, 2000. In fact, sub-section (2) makes it very clear that if any payment made prior to the coming into force of sub-section (1), was first adjusted towards the tax and balance towards interest, either based on the request of the dealer or otherwise, such adjustment should not be disturbed based on the provisions, viz., sub-section (1) of section 55C. What is conveyed by sub-section (2) of section 55C is that the applicability of sub-section (1) of section 55C is not with reference to the period for which arrea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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