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TMI Blog1976 (11) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... t of interest. And it is apparent from clause (b) of sub-section (9) that where as a result of appeal, revision or other proceedings the amount of the tax or other dues is reduced, it shall not be necessary for the assessing authority to serve upon the dealer a fresh notice. - C.A. No. 2061 of 1971, & 1249 of 1970 - - - Dated:- 19-11-1976 - KHANNA H.R. AND KRISHNA IYER V.R. JJ. S.C. Manchanda, Senior Advocate (O.P. Rana Advocate, with him), for the appellants. J. Ramamurthi, Advocate, amicus curiae, for the respondent. -------------------------------------------------- The judgment of the Court was delivered by KHANNA, J.- This appeal on certificate is against the judgment of the Allahabad High Court w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Two questions arise for determination in this appeal. The first question is whether the respondent is liable to pay interest on the amount due from him as sales tax. The answer to this question, in our opinion, should be in the affirmative in view of the provisions of sub-section (1-A) of section 8 of the Act. The aforesaid sub-section as also sub-sections (1) and (8) of that section read as under: 8. Payment and recovery of tax.-(1) The tax assessed under this Act shall be paid in such manner and in such instalments, if any, and within such time, not being less than fifteen days from the date of service of the notice of assessment and demand as may be specified in the notice. In default of such payment, the whole of the amount th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion (6) shall be recoverable as arrears of land revenue. This Court considered the above provisions in the case of Haji Lal Mohd. Biri Works v. State of U.P. [1973] 32 S.T.C. 496 (S.C.)., and held that the liability to pay interest under section 8(1-A) is automatic and arises by operation of law. It was further observed in that case that it is not necessary for the Sales Tax Officer to specify the amount of interest in the recovery certificate. We may add that there is no dispute in the present case that the notice of assessment and demand was served upon the assessee-respondent. The respondent cannot, therefore, escape liability for payment of interest. The second question which arises for consideration is whether it was necessar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resh notice; (ii) if any recovery proceedings are pending, the assessing authority shall give intimation of the fact of such reduction to the Collector who shall thereupon take steps for the recovery of only the reduced amount and (iii) any proceedings initiated on the basis of the notice or notices served upon the dealer before the disposal of such appeal, revision or other proceeding, including any recovery proceedings, may be continued in relation to the amount so reduced from the stage at which it stood immediately before such disposal; (c) no fresh notice shall be necessary in any case where the amount of the tax or other dues is not varied as a result of such appeal, revision or other proceeding. It is apparent from claus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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