TMI Blog2015 (11) TMI 1076X X X X Extracts X X X X X X X X Extracts X X X X ..... tion (2) of section 12 of the Act. However, if no return is submitted by the dealer under sub-section (1) before the date prescribed or specified in that behalf, or if the return submitted by him appears to the assessing authority to be incorrect or incomplete, the assessing authority shall assess the dealer to the best of his judgment, recording the reasons for such assessment. On such assessment if it is found that the dealer is due in any amount of tax, then he shall issue notice to the dealer in form 6 calling upon the dealer to pay the tax as finally assessed within 21 days from the date of service of notice on such dealer. If the amount is not paid within 21 days from the date of service of notice, then under section 13 he is liable t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) of the Act on July 22, 2004. As per the assessment order, the assessee was assessed to total tax of ₹ 22,35,27,631 against which the assessee had paid advance tax as per the monthly returns amounting to ₹ 22,31,66,076, thus making short-payment of tax of ₹ 3,61,555. 2. For the assessment year April 1, 2002 to March 31, 2003 the total tax due was ₹ 17,70,29,019, whereas the assessee had paid advance tax of ₹ 17,68,40,304. Thus, the short-payment of tax was ₹ 1,88,715. 3. The assessing authority, after assessment, issued a demand notice call ing upon the assessee to pay difference in tax along with interest at the rate of two per cent. per month. It is not in dispute that the assessee on receipt o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt shown to be due in such return is not paid beyond 30 days after the close of the year, the dealer defaulting payment of tax or making short-payment of tax shall, in addition to the tax, pay interest calculated at the rate of two per cent. per month. It has no application to tax found due by the assessing authority while passing the order under section 12(1B) of the Act. After the order of assessment is passed under section 12(1B) of the Act, if any tax is found due, a demand is issued giving 30 days to make the payment. If the amount is not paid within 30 days, then on that difference amount, interest is payable under section 13 read with rule 20 of the Karnataka Sales Tax Rules. Section 12(1B) has no application to such default in pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and payment of tax in advance. 8. Section 12 with which we are concerned reads as under: Notwithstanding anything contained in section 12B, every registered dealer and every dealer who is liable to get himself registered under sub-section (1) or (2) of section 10, shall submit such return or returns relating to his turnover, in such manner and within such period as may be prescribed. 9. Therefore, in addition to the monthly returns, i.e., form 3 which he has filed, a dealer is expected to file yearly returns, i.e., form 4 under section 12(1) of the Act in the prescribed manner. Sub-section (1A) of section 12 makes it obligatory on the part of the dealer to pay in advance the full amount of tax payable by him on the basis of such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... im appears to the assessing authority to be incorrect or incomplete, the assessing authority shall assess the dealer to the best of his judgment, recording the reasons for such assessment. On such assessment if it is found that the dealer is due in any amount of tax, then he shall issue notice to the dealer in form 6 calling upon the dealer to pay the tax as finally assessed within 21 days from the date of service of notice on such dealer. If the amount is not paid within 21 days from the date of service of notice, then under section 13 he is liable to pay interest on such difference in the tax finally assessed. That is the scheme under the Act. Therefore, section 12(1B) is attracted when there is a default in payment of tax due under the A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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