TMI Blog2014 (9) TMI 911X X X X Extracts X X X X X X X X Extracts X X X X ..... d of damages which a person claims for loss of money, according to Bhai Jaspal Singh and Another Vs. Assistant Commissioner of Commercial Taxes and Others reported in [2010 (10) TMI 899 - SUPREME COURT OF INDIA] and Indodan Industries Ltd. Vs. State of U.P. and Others reported in [2009 (10) TMI 516 - SUPREME COURT OF INDIA] cited by Mr. Sengupta for the petitioner. Here there is no loss to the government. - gross tax paid by the assessee was not even a paisa short and that it was paid into one account or one fund. Therefore, there could not be any monetary loss to the government for which it could legitimately claim interest. - this kind of an adjustment can be made only when taxes paid in excess or short paid are credited into a known acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t that even the tax levied under the Central Act is ultimately intended for State purposes and may therefore get directly credited into the Consolidated Fund of the State, would make no difference, because the two taxes are distinct and different, and levied under two different statutes, one of the State Legislature and the other of Parliament. Now, a clerical mistake has given rise to the problem in this case. While doing ministerial activities like making entries, writing challans and depositing tax, the clerical staff of the writ petitioner deposited a part of the Central Sales Tax collection as Sales Tax under the State Act. The result was that there was an excess payment of Sales Tax and an equal under payment of Central Sales Tax. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules, 1957 which stated that any excess tax refundable to a dealer was adjustable against any tax due by him. Now, this rule applied to Sales Tax only. It did not apply to adjustment of Central with State Sales Tax. It is on this basis that the Division Bench ruled as it did. A subsequent circular No. 9 of 2006 dated 19th October, 2006 issued by the Central Government it is set out below. It takes care of the exact situation: Thus a tax payable under the West Bengal Value Added Tax Act, 2003 can be given credit under the same Act although the challans has been used under the West Bengal Sales Tax Act, 1994 or under the Central Sales Tax Act, 1956. Similarly a tax meant for deposit under the Central Sales Tax Act, 1956 may be given c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 010] 27 VST 1(SC) cited by Mr. Sengupta for the petitioner. Here there is no loss to the government. The Special Commissioner, Sales Tax, West Bengal has very labouriously gone into the facts, the decisions of various courts, the legislative fields of the Union and State legislature, the nature and mode of collection and Central and State Sales Tax. But his approach has been very technical. He has been pedantic. He missed the basic principles. The question before him was whether the two types of taxes were credited into the same account or into different accounts, of different departments. If it went into the same account, could it be properly said that there was a shortfall in payment of tax for which the assessee should pay interest? ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
