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TMI Blog1987 (11) TMI 347X X X X Extracts X X X X X X X X Extracts X X X X ..... titions. Sri Katageri has taken me through the scheme of the Act and the relevant provisions. It is therefore necessary to advert to the scheme of the Act with reference to the payment of advance tax in Chapter V and the relevant sections 12-13(3) and 13, relating to the levy of penalty. Section 12-B relates to the payment of advance tax by a dealer on the basis of the taxable turnover as disclosed in its monthly statements and admitted to be due. Sri Katageri, learned counsel for the petitioners, relies upon several decisions of this Court and other High Courts, in support of his contention that no penalty under section 13(2) of the Act can be levied for default of payment of advance tax or short payment. The first decision is the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the dealer to make payment along with the return, of the admitted tax. This return was to be filed after the close of the accounting year. Section 10 dealt with assessments to be made as provided under the Act. Provisions of section 16 were attracted both in the case of failure to make the payment as required under section 7 and on assessment made under section 10. Therefore, their Lordships held on the basis of the scheme of the Act, that no penalty would be liable unless the tax payable was ascertained by the assessing authority under section 10 or by the assessee under section 7(2) of the Act. This is also not a case which corresponds to the provisions of section 12-13(1) and section 13 of the KST Act as are found relevant for the yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay of penalty, in addition to the amount due, a sum equal to a sum calculated at the rate of one rupee for every hundred rupees or part thereof of such amount for each month or part thereof after the date specified for its payment." The High Court held, on a construction of the provisions of section 24(3), it did not apply to a case governed by rule 18 of the Rules under which the dealer could opt for payment of tax on its monthly returns in lieu of annual returns. Under rule 18(3), the dealer was required to deposit, along with the monthly return, the tax payable on the basis of the return. On a construction of the scheme of the Act, the provisions of rule 18 and section 24(3), the High Court held that no penalty could be levied in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u has placed strong reliance on the provisions of section 12-B read with section 13 as it stands after amendment, for the purpose of sustaining the levy of penalty under section 13(2) of the Act. A notice of demand in form No. 5 is issued in a case where the dealer defaults to deposit the tax along with the monthly statements of returns filed in form No. 3. It may be seen from the said notice of demand issued in form No. 5 under rule 17(2), that the dealer is informed that he is in default of payment of the said sum due under section 12-B(1) and (2) and that the said amount would be recovered in the manner specified in section 13(3) along with the penalty leviable under section 13(2) of the Act. Rule 17 of the Rules makes it obligatory on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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