TMI Blog2010 (2) TMI 1105X X X X Extracts X X X X X X X X Extracts X X X X ..... 1316 of 2006 - - - Dated:- 2-2-2010 - RAJES KUMAR AND BALA KRISHNA NARAYANA , JJ. Heard Sri R.R. Agrawal learned counsel for the petitioner and Sri U.C. Pandey, learned standing counsel. The petitioner is carrying on the business of bajaj scooter, motorcycle and other spare parts. It appears that during the period of warranty of the vehicle, on the claim of the buyer of the vehicle, the petitioner supplied certain parts. The amount of the said parts had been received from the company. The claim of the petitioner was that the amount received from the company in respect of the part used for the repair of the vehicle during warranty period was not the part of the taxable turnover and not liable to tax. It appears that on the basis of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ginal assessment order, has accepted the claim of the petitioner that such warranty claim was not liable to tax and accordingly exempted the turnover and it is only because of the decision of the apex court in the case of Mohd. Ekram Khan Sons [2004] 136 STC 515; [2004] UPTC 1198, tax has been imposed on warranty claim therefore, the assessed tax on the warranty claim amount cannot be said to be admitted tax for the purposes of levy of interest under section 8(1) of the Act. In support of his contention he relied upon the decision of the apex court in the case of Commissioner of Sales Tax v. Hindustan Aluminium Corporation [2002] 127 STC 258; [1999] UPTC 1 and a Division Bench decision of this court in the case of Annapurna Biscuit rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accounts or as admitted by him in his return or other proceeding under the Act, whichever is greater, or, if no accounts are maintained, according to his estimate. Sub-section (1A) deals with the post-assessment scenario. It says that the tax assessed under the Act shall be deposited within thirty days of service of notice of assessment and demand. Sub-section (1B) applies if the tax assessed is not deposited as required by sub-section (1A). 5.. The dispute here, as aforestated, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accepted the claim of the petitioner that the warranty claim was not liable to tax and the petitioner became liable to pay tax on such warranty claim amount under the reassessment orders under section 21 inasmuch as before the reassessment orders there was no occasion with the petitioner to deposit the amount. Therefore for these years it cannot be said that the claim of the petitioner was not bona fide. Therefore, the tax assessed on the warranty claim amount by reassessment order under section 21 cannot be said to be admitted tax for the purpose of demand of interest under section 8(1) of the Act. The petitioner is only liable to pay interest under section 8(1B) of the Act. The learned single judge of this court in the case of Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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