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TMI Blog2013 (4) TMI 557X X X X Extracts X X X X X X X X Extracts X X X X ..... on 24(1) but in such a case the assessee would be liable to pay interest under Section 24(3) which provides on any amount remaining unpaid after the date specified for its payment as referred to in sub-section (1) or in the order permitting payment in instalments, the dealer or person shall pay, in addition to the amount due, interest at one-and-half per cent per month of such amount for the first three months of default and at two per cent per month of such amount for the subsequent period of default. Writ petitions are liable to be rejected as the petitioner has not availed the appellate remedy provided under the TNGST Act. The petitioner having got the eligibility certificate followed by an agreement had clearly breached the said agreement. Reliance placed by the petitioner in an unreported judgment which will have no relevance. . Thus the argument that installation of additional spindles will not be in violation of the eligibility certificate and the agreement does not stand to reason. - W.P.Nos.32128 and 32129 of 2007 and 23415 and 23416 of 2008 and M.P.Nos.1 and 1 of 2007 and 1 and 1 of 2008 - - - Dated:- 16-2-2012 - MR. K. CHANDRU J, For Petitioner: Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ishnagiri has filed a common counter affidavit in both these writ petitions, dated 6.2.2012. 5. Even during the pendency of these two writ petitions, the same petitioner has come forward with the subsequent two writ petitions challenging the revised notice dated 1.9.2008 issued by the Assistant Commissioner, Commercial Tax, Krishnagiri. It was informed in the impugned notice dated 1.9.2008 that the extra 4792 spindles were used for the entire year and it was not reported to the department. Hence the revised tax was made. In W.P.No.23415 of 2008, while the assessment turnover was at ₹ 6,89,94,769/- in respect of the cotton yarn, in W.P.No.23416 of 2008, it was ₹ 83,68,086/- relating to cotton yarn. Both the notices dated 1.9.2008 are under challenge in the subsequent writ petitions. The petitioners have also referred to a division bench judgment of this court in W.P.No.17127 of 2002, dated 15.12.2005 and stated that action initiated by the respondents were contrary to the said judgment. 6. The subsequent two matters were admitted on 25.09.2008. Pending the two writ petitions, this court had granted an interim stay in the light of the earlier interim order pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... high turnover. It was contrary to the conditions laid down in the agreement and that no direction was obtained from the competent authority for deferral of sales tax on the increased volume of production / sale for the additional engagement of 4292 spindles. They are not eligible for the same. Reliance placed upon the judgment of this court in Jai Jagadhambiga Textiles Mills Ltd. is not apposite, since in that case the said mill had obtained eligibility certificate even for the expansion of their unit. The decision taken was based upon the inspection report of the Enforcement wing as well as the agreement entered with the Commercial Tax department. Further without exhausting the alternative remedy, the petitioner cannot challenge the assessment orders in a writ petition under Article 226 of the Constitution. In view of the same, the respondents prayed for dismissal of all the four writ petitions. 10. Before proceeding to deal with the legal issues involved in this case, it must be noted that in the eligibility certificate obtained from the SIPCOT for enjoying the IFSTS scheme, in paragraphs 3, 4.2,6 and 7 it was stated as follows: 3.Based on the above, the holder of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... units. The relevant extract of the section reads thus: 17-A. Power of Government to notify deferred payment of tax for new industries, etc. (1) The Government may, in such circumstances and subject to such conditions as may be prescribed, by notification issued whether prospectively or retrospectively defer the payment by any new industrial unit or sick unit or sick textile mill of the whole or any part of the tax payable in respect of any period: Provided that such retrospective effect shall not be earlier than 9-5-1988. (1-A) * * * (2) Notwithstanding anything contained in this Act, the deferred payment of tax under sub-section (1) or sub-section (1-A) shall not attract interest under sub-section (3) of Section 24 provided the conditions laid down for payment of the tax deferred are satisfied. 22. Therefore, under sub-section (2) interest is not payable on the deferred payment of tax provided the conditions laid down in sub-section (1) are satisfied. The purpose of the section is to grant the benefit to new industrial units to help them tide over the initial teething troubles and to sick industries to assist them to get over their sickness. To this en ..... X X X X Extracts X X X X X X X X Extracts X X X X
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