TMI Blog2015 (1) TMI 682X X X X Extracts X X X X X X X X Extracts X X X X ..... ted Versus State of Tamil Nadu [1990 (6) TMI 195 - MADRAS HIGH COURT] it has been held that interest has to be linked to the payment of delivery and they would form part of sale consideration - the buyers have agreed to pay interest for the belated payment in the very same invoice and not under an independent agreement - there is no independent agreement on interest, as rightly pointed out by the Tribunal - when the invoice of the petitioner contemplates interest on delayed payment, the Tribunal was justified in including the same in the taxable turnover – thus, no substantial question of law arises for consideration – Decided against petitioner. - T. C. (R). No. 166 of 2009 - - - Dated:- 3-12-2014 - R. Sudhakar And R. Karuppiah,JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or levy of tax. 3. The Original Authority came to hold that the interest amount received by the petitioner from its customers for belated payment should be treated as turnover and accordingly, levied tax on the said amount at 16%. On appeal by the petitioner, the Appellate Assistant Commissioner (CT) confirmed such demand of tax on the interest component and dismissed the appeal. On further appeal by the petitioner, the Tribunal upheld that order passed by the first appellate authority by placing reliance on the decision of this Court in L T McNeil Limited v. State of Tamil Nadu, referred supra. Calling in question the said order, the present revision is filed on the substantial questions of law referred supra. 4. On facts, there appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he order of the Appellate Assistant Commissioner in confirming the order of the assessing authority in including a sum of ₹ 3,62,323/- representing the receipt of interest for the belated payment is correct and this point is answered accordingly against the appellants. 5. In the case of L T McNeil Limited v. State of Tamil Nadu, referred supra, after considering the provisions of Section 2(r) of the Act which defines turnover and Section 2(q) of the Act which defines total turnover , this Court came to hold that the aggregate amount received by the assessee would include all payments received in consideration of sale. In the said decision, in paragraph (5), it has been held as under: 5. ....... In view of the principles laid d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n (3) to section 2(n) of the Act. In our view, the argument of the learned counsel appearing for the assessee, with regard to section 2(n) of the Act, has to be rejected since that section has nothing to do with the transaction on hand and that provision is only about the 'situs' of the sale. In our view, 'interest' or 'commitment charges' have to be included in the taxable turnover of the assessee. 6. The said decision is sought to be distinguished by the learned counsel for the petitioner contending that in L T McNeil Limited v. State of Tamil Nadu, referred supra, the documents were retired from the bank belatedly and, therefore, the sale took place later and hence interest or commitment charges were held to b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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