9911796707
TMI Blog1970 (1) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... y served upon the petitioner on 8th April, 1958. The petitioner preferred an appeal against the assessment order, but before the appeal was decided on 6th August, 1958, a certificate of recovery was issued by the assessing authority to the Collector, Kanpur, for the recovery from the petitioner as arrears of land revenue, the arrears of tax amounting to Rs. 44,263.69. On 5th January, 1959, the petitioner's appeal came to be disposed of and as a result of the appellate order the tax liability of the petitioner was reduced by a sum of Rs. 1,760-3-6. No fresh notice of demand was served upon the petitioner in respect of the tax as reduced by the appellate authority. Thereafter, it appears that the petitioner started paying off the arrears in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch 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 then remaining due shall become recoverable in accordance with sub-section (8). Rule 45 of the Rules framed under the Act provides: "As soon as the assessment has been made the Sales Tax Officer shall send to the dealer a notice in form XI, together with a copy of the assessment order free of charge and the dealer shall pay the tax so assessed within the time and in the manner specified in the notice." It is clear from the scheme of the Act that before the tax becomes payable from an assessee a notice of demand has to be served upon him in form XI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... From the language of sub-section (1-A) of section 8 it is obvious that a person becomes liable to interest, if he does not pay the tax payable within six months after the expiry of the time specified in the notice of demand. A notice of demand would mean the notice of demand served in pursuance of an appellate order where the amount of tax has been varied as a result of an appeal. As no such notice of demand was served upon the assessee after the appellate order, the provisions of sub-section (1-A) of section 8 would not be attracted and the petitioner is right in its contention that it incurred no liability for the payment of interest. In Masitullah Khan and Others v. The Collector, ShahjahanpurWrit Petition No. 1417 of 1968 decided on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble under sub-section (1) remains unpaid for six months from the expiry of the time mentioned in the notice of demand. Tax cannot be said to be payable unless a notice of demand is served even though there may be a liability upon the assessee in respect of the tax assessed. It is significant to note that under sub-section (1-A) of section 8 interest becomes chargeable "if the tax payable under sub-section (1) remains unpaid for six months after the expiry of the time specified in the notice of demand........" and not "if the tax assessed under sub-section (1) remains unpaid." There is a difference between a tax which is assessed and a tax which is payable. A tax is assessed when an assessment order is passed, but it becomes payable only aft ..... X X X X Extracts X X X X X X X X Extracts X X X X
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