TMI Blog2018 (7) TMI 1768X X X X Extracts X X X X X X X X Extracts X X X X ..... ing amounts paid, first towards the interest, and then the principal dues was adopted by a clarificatory amendment to the statute. It is also to be noticed that Section 55C specifically refers to the amounts due under the Act including the interest and appropriation of payment; which applies whenever the recovery is made after the amendment was introduced, without reference to the assessment years, whether it is prior or post - Thus, Section 55C applies to all payments made on or after 01.01.2000 irrespective of the year to which arrears of the tax and interest relates - decided against assessee. Applicability of Section 23(3) of the KGST Act - Held that:- When there has been no levy of interest made, at the time of assessment and as a r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 35. Revision dismissed - decided against assessee. - S.T.[Rev.] No.101 of 2012 - - - Dated:- 11-7-2018 - K. VINOD CHANDRAN ASHOK MENON, JJ. PETITIONER: BY ADVS. SRI. K.I. MAYANKUTTY MATHER SMT. M. RAMANYA GAYATHRI RESPONDENT: BY GOVERNMENT PLEADER SRI. MOHAMMED RAFIQ O R D E R K. Vinod Chandran, J. The petitioner/assessee is before us concerned with the assessment of the year 1997-1998 and the levy of interest made thereon by a suo motu revision effected under Section 35 of the Kerala General Sales Tax Act, 1963 [for brevity, the KGST Act]. The questions of law arising in the aforesaid case as available in the memorandum and those framed additionally are as follows:- A. Whether the reliance placed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 75 lakhs. The appeal was rejected as per Annexure B. later, a second appeal was filed before the Tribunal, in which certain modifications were made as per Annexure C. The modifications were given effect to by Annexure D order dated 30.12.2008. The Assessing Officer, while making the modified order, failed to take into account the interest due and also did not apply Section 55C of the KGST Act. 3. The Deputy Commissioner issued notice and revised the order in so far as applying interest and also Section 55C first appropriating the amounts paid towards interest and then towards the balance dues as determined in Annexure A, which stood modified by Annexure C. The revisional order directed the Assessing Officer to compute the interest and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her it is prior or post. The reliance on Aby Engineering and Consultants (P) Ltd. v. Assistant Commissioner [2010 (1) KLT SN 50] would be apposite to further fortify the view taken by us. Section 55C applies to all payments made on or after 01.01.2000 irrespective of the year to which arrears of the tax and interest relates was the binding declaration in the aforesaid judgment of a Division Bench of this Court. The first questions raised at A to C are answered in favour of the revenue and against the assessee. 6. The next ground raised by the petitioner is with respect to the applicability of Section 23(3) of the KGST Act. When there has been no levy of interest made, at the time of assessment and as a result no demand raised, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otice of demand, since the accrual was only on the failure of the assessee to pay the amounts demanded within the stipulated time as stated in the notice. The position was made clear by a Division Bench of this Court in Chandramani Traders v. State of Kerala [(2008) 16 VST 294 (Ker)] distinguishing the decision of the Hon'ble Supreme Court in Maruti Wire Industries (P) Ltd. v. Sales Tax Officer [(2001) 122 STC 410]. The Supreme Court was concerned with the pre-amended provision, in a case where there was no return filed. In Chandramani Traders [supra], as is the instant revision are cases in which the assessee had filed a return and on regular assessment the taxable turnover stood enhanced; rejecting certain claims raised by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s levied. 11. The further argument was with respect the assessment being completed under Section 17 of the KGST Act and not possible of re-opening after five years. The assessment is of the tax due and interest as earlier noticed is automatic by virtue of the statutory prescription and has to necessarily follow the assessment. The mere fact that the computation of interest payable was not shown in the assessment order will not absolve the assessee from the liability to interest; which is statutorily payable. We have already held that payment of interest is the obligation of dealer, visited on the dealer by the statute and there is no requirement for the assessment order to speak of it nor is there a notice of demand required for its accr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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