9911796707
TMI Blog1971 (2) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... he petitioner a sum of Rs. 13,904.97 as interest on the reduced amount of taxes with effect from 1st February, 1964. This demand is questioned before us. 2.. The grounds of challenge are two: (1) recovery of tax having been stayed pending appeals, there was no default in payment of tax; (2) there was no fresh notice of demand after the appellate order. 3.. We do not entertain the first ground. It appears from the petition that after filing appeals the petitioner obtained from the Judge (Revisions), Sales Tax, an order staying realisation of fifty per cent. of the disputed tax till the disposal of appeals. But a copy of the order has not been filed with the petition. It is not proper to hazard any opinion in ignorance of the actual terms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of expiry of the time specified in the said notice, or from the commencement of the said Adhiniyam, as the case may be, and shall be added to the amount of tax and be deemed for all purposes to be part of the tax: Provided that where as a result of appeal, revision or reference, or of any other order of a competent court or authority, the amount of tax is varied, the interest shall be recalculated accordingly: Provided further that the interest on the excess amount of tax payable under an order of enhancement shall run from the date of such order if such excess remains unpaid for six months after the order." 6.. Sri Khare says that as according to the main enactment in subsection (1-A) interest is a part of the tax, there should is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of interest even when the tax is varied by the order of a competent court. It is conceded that the order of the assessing authority will not merge in the court's order. Accordingly the doctrine of merger, if applied to section 8, will create an anomaly. An anomalous interpretation should not ordinarily be accepted. 10.. The second proviso clearly excludes the application of the docment of merger. It is a proviso to the first proviso. It provides that where on appeal the assessment is enhanced, then interest on the difference between the amount assessed originally and the amount assessed on appeal will run from the date of the appellate order if such excess remains unpaid for six months after the order. If the Legislature had intended t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Seghu Buchiah's case(5), it was held that sales tax is not payable until a fresh notice of demand has been issued after the appellate order. The case of interest was not at all in issue in that case and so the language of section 8 did not receive any consideration. Our attention has also been drawn to three unreported decisions of our court. Those cases are: Masitullah Khan v. Collector, Shahjahanpur[1969] 23 S.T.C. 106. (Writ No. 1417 of 1968 dated 23rd July, 1968), Sri Ram Autar Agarwal v. Sales Tax Officer, Bareilly (Writ No. 1659 of 1967 dated 13th September, 1968) and Ram Kishan Das Brij Mohan Lal v. State of U.P.[1971] 27 S.T.C. 312. (Writ No. 143 of 1969, dated 6th January, 1970). 15.. In the first case the assessee had died, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of such tax....., then- (a) where as a result of such appeal the amount of such tax..... is enhanced, the assessing authority shall serve upon the dealer a fresh notice only in respect of the amount by which such tax..... (is) enhanced, and any proceeding in relation to the amount specified in the notice already served upon him before the disposal of such appeal,..... may be continued from the stage at which it stood immediately before such disposal; (b) where as a result of such appeal..... the amount of such tax.....is reduced,- (i) it shall not be necessary for the assessing authority to serve upon the dealer a fresh notice; (ii) if any recovery proceedings are pending, the assessing authority shall give intimation of the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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