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2016 (9) TMI 270 - MADRAS HIGH COURT

2016 (9) TMI 270 - MADRAS HIGH COURT - TMI - Demand of interest - Section 24(3) of the Tamil Nadu General Sales Tax Act - cheques given by petitioner to Enforcement Wing Officials during inspection got dishonoured - demand of interest arises where there is an Assessment in terms of sub-section (1) of Section 24 of the Act and within the specified date, the tax is not paid - Held that: - the case relied upon is EID Parry (India) Ltd., Vs. CCT [2005 (5) TMI 302 - SUPREME COURT OF INDIA]. It was he .....

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the returns were incomplete or incorrect as now claimed the assessing authority had to determine the tax payable and issue a notice of demand. In the absence of any assessment, even provisional, and a notice of demand no interest would be payable under Section 24(3) - demand of interest without jurisdiction - writ petition allowed - decided in favor of petitioner. - W.P.No.20418 of 2005 & W.P.M.P.No.22286 of 2005 - Dated:- 10-8-2016 - T. S. Sivagnanam, J. For the Petitioner : Mr. B. Sivaraman Fo .....

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es Tax Act. 3. In the impugned proceedings, it has been stated that three cheques given by the petitioner to the Enforcement Wing Officials during inspection, got dishonoured and therefore, the petitioner is liable to pay interest under sub-section (3) of Section 24 of the Act which consist of two circumstances, under which interest becomes payable viz., on any amount remaining unpaid after the dates specified for its payment as referred to in sub-section (1) of Section 24 of the Act or in the o .....

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y, the petitioner has not been assessed to tax and the impugned demand itself is based upon the dishonour of the cheques collected from the petitioner. 5. The learned Additional Government Pleader based on the written instructions given by the Assessing Officer contended that the petitioner voluntarily paid the amount, by accepting the liability and in this regard, the statement recorded by the Enforcement Wing Officials from the petitioner was relied on. 6. In my view, the question of relying u .....

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tion 13(2) of the Act and at this juncture, it will be beneficial to refer to the operative portion of the judgment:- "12. ...... ..... Interest becomes payable under Section 24(3) on an amount remaining unpaid after the date specified for its payment under sub-section (1) of Section 24. As seen above, sub-section (1) of Section 24 deals with an assessed tax or tax which has become payable under the Act. In case covered by Section 13(2) tax must be paid without any notice of demand. But as .....

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f (Dharmapuri District Co-operative Milk Producers Union Ltd., Vs. State of Tamil Nadu and others), in W.P.No.5929 of 2005, dated 03.08.2016. In the said case, as contended herein, the learned Additional Government Pleader referred to Section 13 of the TNGST Act, and stated that, once returns are accepted, then, there is no question of assessment to be made, and the dues can be claimed. This Court, after taking into consideration the decision rendered in the case of E.I.D. Parry India Ltd., (sup .....

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ed on the same. The issue was answered in favour of the dealer on the following lines:- "7. The learned Additional Government Pleader, referring to Section 13 submitted that once returns are accepted, then there is no question of any assessment to be made and due can be raised. Section 13 of the Act deals with advance payment of tax and for the remaining tax, there should be a provisional assessment and on such determination and intimation from the dealer, he shall pay the tax. However, in .....

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