TMI Blog2022 (4) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... Taxes, which has been extracted, indicates that the violation in deferral scheme can take place at two stages ie.,during the first period when a dealer violates any of the conditions prescribed in the Eligibility Certificate and during the second time, when the repayment of the tax was to be made by the petitioner, which has been treated as interest free -loan. The Principal Secretary/Commissioner of Commercial Taxes, vide letter dated 28.02.2014 bearing Letter No.Drafting Cell-I/28518/2012, has clarified that if violation happens during the second tenure, interest will start from the date of violation or from the date of default in payment of dues. If this concession is to be extended, the petitioner will be liable to pay the interest from the actual date of each default. In other words, the petitioner will be liable to pay interest for each of the period as per Clause 5.1 of the Eligibility Certificate - the intention of the Government is evident that though the agreement and the eligibility criteria contemplate a complete recovery of the amount as if there is no deferral at all, the revenue would be satisfied if proportionate interest is paid from the date of each default. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing passage from the respective decisions. 3.4. In support of her contention, the petitioner relied on M/S.Kalpatharu Spinning Mills Vs Commercial Tax Officer made in W.P. (MD).No.19060 dated 01.12.2010 and Amutha Mills Private Limited Vs Commercial Tax Officer (W.A.No.1482 of 2006 and W.P.No.41326 of 2006 dated 06.12.2006) wherein, this Court had held that interest held to be calculated only from the date of repayment period and not from the date of the violation or cancellation of the agreement. It is further stated by the petitioner that the IFST Deferral Scheme was brought into force by a Government order and that it cannot be overruled by a circular issued by the Commissioner of Commercial Taxes. The petitioner further stated that even though the period of repayment as per the agreement started only from 01.09.2004 being the date of cancellation of the agreement and that the petitioner ought to have calculated the interest only from the repayment due dated 01.09.2005 as per the law laid down by this Court. The first respondent neither accepted the petitioner's submissions regarding the correct date of calculating interest as the date on which the certificate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d counsel for the petitioner further submits that the claim of the departments seeking to recover the interest from 01.04.2000, 15.07.2001, 13.07.2003, 12.10.2006 is unsustainable and therefore this writ petition is deserves to be allowed. 7.The learned counsel for the petitioner has drawn attention to the decision rendered in the context of the proceeding before the Settlement Commission under the Act and the law clarified by the Division Bench of this Court in W.P.No. 1462 of 2006 (M/S.Amutha Mills Private Limited., Annur, Vs. Assistant Commissioner (CT), Zone-III, Coimbatore and others) dated 06.12.2006, which has been followed in the subsequent decision of this Court in W.P.No.19060 of 2009, (S.R.Subramaniam, M/S.Sree Kalpatharu Spinning and Weaving Mills Vs. Assistant Commissioner (CT), Zone-III, Coimbatore) to the effect that penal interest if any should be calculated only from the due date for repayment of the loan and not from the date on which the IFST Deferral was availed. 8.The learned counsel for the petitioner has also drawn attention to a circular/letter of the Principal Secretary/Commissioner of Commercial Taxes, vide letter No.Drafting Cell-I/28518/2012 da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial Taxes and others reported in (2010) 35 VST 456 (SC) has held that interest on sales tax becomes due on repayment of tax in time and there is no need to issue a demand notice. The learned counsel for the official respondents further submits that as per Section 24 (3) of the Act, the interest has to be paid by the petitioner as under:- Year Tax due Rs. Due Date Payment Date No of days delay Interest Rs. 1998-1999 4,21,534/- 01.04.2000 26.09.2019 7147 20,08,469/- 1999-2000 3,75,704/- 15.07.2001 26.09.2019 6647 16,64,870/- 2000-2001 1,82,487/- 13.03.2003 26.09.2019 6041 7,34,936/- 2002-2003 15,228/- 12.10.2006 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is submitted that the petitioner should have adhered with the time line specified in Condition No.5.1 of the Eligibility Certificate. Therefore, the petitioner is not entitled any relief in this writ petition. 16.The learned counsel for the official respondents further submits that the petitioner has an alternate remedy by way of appeal before the Appellate Deputy Commissioner (C.T) under Section 51 of the TNVAT Act, 2006. In this connection, a reference was made to the following orders of this Court, wherein, the writ petition was dismissed by asking the petitioners therein to workout their remedy before the appellate authority. i) Hon'ble High Court Madras in Writ Appeal No.4 of 2019, dated 09.01.2019 ii) Hon'ble High Court Madras in Writ Appeal Nos.652 to 655 of 2019, dated 28.02.2019. iii) Hon'ble High Court Madras in Writ Appeal Nos.1240 and 1241 of 2019, dated 20.06.2019. iv) Hon'ble High Court Madurai decision in Writ petition No.22361 of 2016, dated 19.02.2019 v) High Court Madras in Writ appeal No.196 of 2020 dated 10.02.2020. vi) High Court Madras in Writ appeal No.198 of 2020 dated 10.02.2020 vii) H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0.However, the clarification issued by the Principal Secretary/Commissioner of Commercial Taxes, which has been extracted above, indicates that the violation in deferral scheme can take place at two stages ie.,during the first period when a dealer violates any of the conditions prescribed in the Eligibility Certificate and during the second time, when the repayment of the tax was to be made by the petitioner, which has been treated as interest free -loan. 21.The Principal Secretary/Commissioner of Commercial Taxes, vide letter dated 28.02.2014 bearing Letter No.Drafting Cell-I/28518/2012, has clarified that if violation happens during the second tenure, interest will start from the date of violation or from the date of default in payment of dues. If this concession is to be extended, the petitioner will be liable to pay the interest from the actual date of each default. In other words, the petitioner will be liable to pay interest for each of the period as per Clause 5.1 of the Eligibility Certificate. 22.The intention of the Government is evident that though the agreement and the eligibility criteria contemplate a complete recovery of the amount as if there is no deferra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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