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TMI Blog2011 (4) TMI 1053X X X X Extracts X X X X X X X X Extracts X X X X ..... emains liable to pay interest at a higher rate, the penal rate under section 8(1) from the date when the tax became due and payable. In such a case, the dealer cannot claim that he is liable only from the date of the assessment order fixing the correct rate of tax. Similarly, in a case where the dealer has taken a chance and it has been held that the tax is payable under Act, the same becomes payable from the date when it was due, appeal dismissed X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt in Aggarwal Brothers v. State of Haryana [1999] 113 STC 317 (SC). [1999] 9 SCC 182, is fully applicable to rentals charged in respect of the containers for goods that cannot be sold without containers. This court held that the containers constitute an integral part of the commodities in question and the container together with the contents therein is a "composite personality" and constitutes "goods" eligible to sales tax. Accordingly, the only issue which requires consideration in the present appeal is whether the appellant is liable to pay interest on the tax due under section 8(1) of the Act, i.e., at two per cent per mensem from the date the tax was due or under section 8(1B), i.e., at 1.5 per cent per mensem from the date of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity to pay tax was dropped by the appellant in the light of the judgment passed by this honourable court in Asiatic Gases Ltd. [2007] 7 VST 531 (SC).[2007] 5 SCC 766. We heard the learned counsel appearing for both the parties and perused the record. It was submitted by the learned senior counsel appearing for the appellant that as it was the bona fide belief of the appellant/ assessee that they were not liable to pay tax on the turnover realized as rental from the bottles and crates, therefore, the tax should be charged only from the date of the assessment order and not from the date of filing of the returns. It was further submitted that section 8(1) of the Act only becomes applicable when the assessee had admitted its tax liability in i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case may be, the turnover of purchases, or of both, as disclosed in the accounts maintained by the dealer, or admitted by him in any return or proceeding under this Act, whichever is granted, or, if no accounts were maintained then according to the estimate of the dealer and includes the amount payable under section 3B or sub-section (6) of section 4B." The Explanation to the said sub-section clearly defines the term "the tax admittedly payable" and illustrates the situation in which the tax would be deemed to be admittedly payable. The same are as follows: (i) The tax which is payable under this Act on the turnover of sales, as the case may be, the turnover of purchase, or both, as disclosed in the accounts maintained by the dealer. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng with interest as mentioned in section 8(1) of the Act. The provisions of sub-section (1B) of section 8 of the Act will come into operation only if the case is not covered under sub-section (1) of section 8 of the Act. The opening words of the said sub-section (1B) states "if the tax, other than the tax referred to in sub-section (1), assessed by the assessing authority is not paid". The said sub-section is reproduced hereinbelow for reference: "8. (1B) If the tax other than the tax referred to in sub-section (1), assessed by any assessing authority is not paid within the period specified in the notice of assessment and demand referred to in sub- section (1A), simple interest at the rate of one and half per cent per mensem on the unpaid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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