9911796707
TMI Blog2015 (3) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... see to pay the amount in instalments. Brief facts: 2. The first respondent (in short the assessee ) is a manufacturer of Indian Made Foreign Liquor. The assessee is registered under the Tamil Nadu Value Added Tax Act, 2006 (in short the Act ). 3. The assessee is selling Indian Made Foreign Liquor through Tamil Nadu State Marketing Corporation (in short TASMAC ). The assessee is in arrears to the Commercial Taxes Department, originally, to the tune of Rs. 20,18,42,722/-. The fourth appellant initially issued a demand notice in Form U dated 02.05.2014, which contained a demand for a sum of Rs. 26,77,03,167/-. Since the fourth appellant initiated coercive proceedings, the assessee filed writ petition in W.P. No.14030 of 2014, challenging th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the Act and the Rules made thereunder. The assessee failed to pay tax in spite of giving reasonable opportunity by the Commercial Taxes Department. The failure on the part of the assessee to pay tax in spite of keeping the collected tax amount for months together, made the fourth appellant to initiate coercive proceedings. The fourth appellant appears to have issued notices under the Revenue Recovery Act, besides attachment proceedings to the bankers and TASMAC. The appellants were fully justified in taking such recovery proceedings to realise the value added tax arrears. The coercive proceedings taken to realise the tax arrears made the assessee to file the writ petition in W.P. No.14030 of 2014. The learned Single Judge, taking into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction provides that the amount due under the Act shall be paid in such manner, meaning thereby, tax amount should be paid within the time indicated in the order or in such instalments permitted by the assessing authority. Sub-clause 3 of Section 42 of the Act mandates payment of statutory interest at the rate of 2% per month for the entire period of default. The Act, therefore, gives the authorities, power to permit the assessee to pay the amount in instalments. The appellants are given discretion to fix the period of payment and instalments. It was only on the strength of the said provision, the learned Single Judge passed a discretionary order permitting the assessee to pay the tax amount in instalments. When there is a provision permitti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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