TMI Blog2019 (1) TMI 1156X X X X Extracts X X X X X X X X Extracts X X X X ..... der Clause (a) of Sub-section (4) of Section 26 is not paid within the period prescribed, the Assessee is liable to pay penalty under Clause (b) of Sub-section (4) of Section 26 of the Act. In the present matter it is not the case of the Assessee that he was not liable to pay the tax and that the liability has accrued subsequently. On the contrary one of the ground in Appeal by the Assessee is that the interest and penalty was imposed thereon is high and excessive acted promptly and indicated his bonfide in making payment of tax on being known his liability on the assessment of the preceding year; which establishes the fact that the Assessee was aware of his liability to file return and pay tax on taxable items. Since the same was not pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry of prescribed period but files before the initiation of assessment proceedings whether such dealer is liable to pay interest on such return or revised return. 4. Relevant facts giving rise to the reference briefly are that the Assessee is a manufacturer and deals in business of Transformer and Conductors, is a dealer registered under the Act(under Section 22 of the Act). 5. In respect of Assessment Year 1999-2000 and 2000-2001, the Assessee was subjected to assessment under Section 27 of the Act wherein by order dated 21/04/2003 in respect of Assessment Year 01/04/1999 to 31/03/2000, the Assesse was found liable for the Commercial Tax of ₹ 21,04,093/-. As the Assessee had deposited ₹ 1,84,707/- on 27/08/2002, i.e. a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act of Parliament must be read according to the natural construction of its words.' In a classic passage LORD CAIRNS stated the principle thus: 'If the person sought to be taxed comes within the letter of the law he must be taxed, however great the hardship may appear to the judicial mind to be. On the other hand, if the Crown seeking to recover the tax, cannot bring the subject within the letter of the law, the subject is free, however apparently within the spirit of law the case might otherwise appear to be. In other words, if there be admissible in any statute, what is called an equitable, construction, certainly, such a construction is not admissible in a taxing statute where you can simply adhere to the words of the statute.&# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... permit any such dealer to furnish them for such different period, in such other form and to such other authority, as he may direct. (2) Every dealer required to file return under sub-section (1) shall pay the full amount of tax payable according to the return as required by sub-section (2) of Section 32 or the difference of the amount of tax payable according to the revised return as required by sub-section (3) of the said Section and the full amount of interest; if any, payable under clause (a) or clause (b) of subsection (4) and shall furnish the proof of such payment along with the return under sub-section (1) or the revised return under sub-section (3). (3) If any dealer discovers any omission, error or wrong statement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he has failed to furnish return, at the rate of 2 per cent per month from the date the tax so payable had become due to the date of its payment or to the date of order of assessment, whichever is earlier. 14. Thus the liability of interest arises in the event which find mention in Sub-section (i), (ii) (iii) of Clause (a) of Sub-section (4) of Section 26 of the Act. In other words, where an Assessee fails to file return (which includes revised return) and pay tax within the period prescribed, he is liable to pay interest on the delayed return and payment of tax by operation of law. 15. Similarly, when the interest under Clause (a) of Sub-section (4) of Section 26 is not paid within the period prescribed, the Assessee is lia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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