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TMI Blog2013 (4) TMI 674X X X X Extracts X X X X X X X X Extracts X X X X ..... hment and it was in that process the delay has occurred. Thus once payment has been made as above, for reasons beyond the control of the petitioner, if realization has been delayed, either for reasons which are attributable to the respondents or the Bank, the dealer cannot be made liable on the basis that on account of the delay in realising the tax due, delay has occurred. If the payment made by the petitioner was in any manner defective, the 1st respondent had an obligation to issue demand notice,as per Rule 22(7) which requirement has not been complied with. Secondly, Rule 98 at the relevant time provided that the cheques shall be of a Bank which is a member of the clearing house situated within the jurisdiction of the authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his writ petition. 2. Counter affidavit has been filed by the 1st respondent. In the counter affidavit, details regarding the dates of receipt of the cheques, dates of its presentation for encashment, dates of encashment and number of days delay have been furnished. It is stated that there was no delay on the part of the 1st respondent in presenting the cheques for encashment. According to the 1st respondent, immediately on receipt of the cheques, 1st respondent send the cheques to the State Bank of Travancore, Manjeri for encashment. State Bank of Travancore, Manjeri send the cheques for encashment to ICICI Bank, Kottayam Branch and on that basis got the cheques encashed. In the process, there occurred delay and according to the respond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the dealer shall pay the sum demanded within the time and in the manner specified therein. Sub Rule (7) also provides that, if the return is submitted without a treasury receipt, crossed cheque or crossed demand draft for the full amount of the tax payable in favour of the assessing authority, the assessing authority shall serve upon the dealer a notice in Form No.12 and the dealer shall pay the sum demanded along with the interest, if any, within the time and in the manner specified. 5. Section 31 provides for payment and recovery of tax. Sub section (5) provides that if the tax or any other amount assessed or due under the Act is not paid by any dealer or any other person within the time prescribed in the Act or in the Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de liable for interest for the delay so occurred. To make the petitioner liable for interest, provisions of Section 31(5) should be applicable and to apply Section 31(5), there should have been default on the part of the petitioner in paying the tax within the time prescribed in the Act. 8. Even according to the respondents, tax could be paid along with the return by a crossed cheque. By this method, the petitioner has paid the tax in time, along with the return. If that be so, once payment has been made as above, for reasons beyond the control of the petitioner, if realisation has been delayed, either for reasons which are attributable to the respondents or the Bank, the dealer cannot be made liable on the basis that on account of the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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