TMI Blog2019 (6) TMI 1533X X X X Extracts X X X X X X X X Extracts X X X X ..... , no such provision in the Entry Tax Act, 1990. Though various provisions enable the authorities to levy tax and penalty, there is no entitlement therein to levy interest on the belated payment of tax and penalty, which is essentially in the nature of penal interest. Reference to the provision of the Tamil Nadu General Sales Tax Act, 1956, is misconceived as the Entry Tax Act, as stated earlier, is a compact and self-contained statute that does not draw upon any other law, including the General Sales Tax Law, in the matter of assessments thereunder. Petition allowed. - W.P(MD)No.10531 of 2013 And M.P(MD)No.1 of 2013 - - - Dated:- 25-6-2019 - Honourable Dr. Justice Anita Sumanth For the Petitioner : Ms.R.Hemalatha For the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he levy of interest at all. In that context, the Division Bench, after extracting from the Judgment of the Constitution Bench of the Supreme Court in the case of J.K.Synthetics Limited Vs. Commercial Taxes Officer [(1994) 94 STC 422] reiterated the position that the provisions relating to charging and levying of interest in a statute are provisions of substantive law. 7. The relevant portion of the Judgment in J.K.Synthetics Limited (supra) as extracted by the Supreme Court is as follows:- 16.It is well-known that when a statute levies a tax it does so by inserting a charging section by which a liability is created or fixed and then proceeds to provide the machinery to make the liability effective. It, therefore, provides the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... however, drawn by Mr.Sen to two cases. Even in those cases, Commissioner of Income-tax Vs. M.Chandra Sekhar [1985] 151 ITR 433 (SC) and Central Provinces Manganese Ore Co. Ltd. Vs. Commissioner of Income-tax [1986] 160 ITR 961 (SC), all that the Court pointed out was that provision for charging interest was, it seems, introduced in order to compensate for the loss occasioned to the Revenue due to delay. But then interest was charged on the strength of a statutory provision, may be its objective was to compensate the Revenue for delay in payment of tax. But regardless of the reason which impelled the Legislature to provide for charging interest, the Court must give that meaning to it as is conveyed by the language used and the purpose to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .Gurunathan Vs. Deputy Commercial Tax Officer, Thirupathur and another [(2015 77 VST 45], dealt with the levy of interest in an assessment made under the provisions of the Tamil Nadu Additional Sales Tax Act, 1970. The Bench concluded that interest could not be levied on belated payment of Additional Tax, when there was no enabling provision in terms of which Section 12(3) of the Tamil Nadu General Sales Tax Act, 1959 could be invoked for the levy of penalty under the provisions of the Tamil Nadu Additional Sales Tax Act. The provisions of the latter Act drew from the Tamil Nadu General Sales Tax Act, 1959 only in relation to the levy of tax and interest and thus, could not be extended to support the levy of penalty. 11.This view is als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the person. (4) If a person fails to comply with the requirements of any notice issued under sub-Section (3), the assessing authority shall determine the purchase value of the motor vehicle under the proviso to clause (k) of Section 2 to the best of his judgment and assess the amount of tax due from him. (5) No order of assessment under sub-Sections (3) or (4) shall be made after the expiry of three years from the last date prescribed for filing of returns of the particular period. If for any reason such order is not made within the period aforesaid then the return so filed shall be deemed to have been accepted as correct and complete for assessing the tax due from such person.' 13.The modality for payment of tax is s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (5) Any tax or penalty which remains unpaid after the date specified in the notice for payment, shall be recoverable as if it were an arrear of land revenue.' 14.Thus, though the aforesaid provisions enable the authorities to levy tax and penalty, there is no entitlement therein to levy interest on the belated payment of tax and penalty, which is essentially in the nature of penal interest. Reference to the provision of the Tamil Nadu General Sales Tax Act, 1956, is misconceived as the Entry Tax Act, as stated earlier, is a compact and self-contained statute that does not draw upon any other law, including the General Sales Tax Law, in the matter of assessments thereunder. 15.In summary, the impugned order is quashed and th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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