1967 (10) TMI 54

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..... to pay it in twelve monthly instalments, but before any order was made on that application, the Commercial Tax Officer made an assessment for the year 1960-61, and demanded the payment of a sum of Rs. 86,207.82 as the tax payable by the petitioner. The time fixed for payment was again 21 days. The petitioner made another application on 27th April, 1964, for permission to pay in twelve monthly instalments even with respect to the tax so determined. On 30th June, 1964, the petitioner made a modified request. He offered to pay the entire sales tax due from him in monthly instalments by 30th March, 1965. All these applications for instalments were presented to the Commissioner of Commercial Taxes who forwarded them to Government. On July 2/ .....

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..... t four submissions. The first was that once instalments were granted by Government by their order made on July 2/3, 1964, as modified by the later order made on 15th August, 1964, the sales tax became due only on the dates when the instalments had to be paid, and since those instalments were paid in time, there was no default. The second was that since by the second order made by Government, Government reserved the power to examine the question whether penalty should or should not be paid by the petitioner, the Commercial Tax Officer was divested of the power to demand penalty until Government made an adjudication on that question. The third was that section 13, which evenly operated on dissimilarly situated dealers, was unconstitutional. .....

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..... rcial Tax Officer to the dates of the instalments allowed by Government, the petitioner would have become a defaulter only if there was non-payment of any one of those instalments when they became due, and on such default, the penalty became payable by him under section 13 with respect to the amount in respect of which payment was not made. In that view of the matter, although the period of twenty-one days specified in the notice issued by the Commercial Tax Officer had expired before Government made their order on July 2/3, 1964, the grant of instalments by Government effaced the default emanating from noncompliance with the Commercial Tax Officer's demand and extended the time for payment. It is only when the payment by instalments allowe .....

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