9911796707
TMI Blog2013 (5) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... 09. To appreciate the controversy involved in this writ petition, it would be necessary to notice the following facts : Petitioner, who is the proprietor and owner of the Cable T.V. Network, namely, Vision Cable T.V. Network, is operating the cable and T.V. Network after obtaining permission from the District Magistrate, Raibareli. For carrying out the said business, petitioner is required to collect and pay entertainment tax under the U.P. Entertainment and Betting Tax Act, 1979 [hereinafter referred to as the "Act"]. In the year 2008, an assessment was made by the District Magistrate for payment of entertainment tax and on the basis of survey, the District Magistrate, vide order dated 24.7.2008, required the petitioner to pay Rs.2,45,9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... financial condition Rs.18,000/- may be accepted and for rest of the amount, he may be allowed sometime, to which petitioner was permitted. Accordingly, petitioner deposited entertainment tax as Rs.18,000 on the same day, Rs.20,000/- on 30.3.2009, Rs.30,000/- on 6.7.2009, Rs.4500 on 13.7.2009 and Rs.8,100 on 24.8.2009. Accordingly, the petitioner has cleared entire dues in the month of August, 2009 but even then, the impugned order has been passed. Elaborating his submission, learned Counsel for the petitioner submits that prior to passing of impugned order dated 23.9.2010, which was served on the petitioner on 31.12.2010, no notice of demand of interest was ever served upon the petitioner. Per contra, Sri H.P. Srivastava, learned Additio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration is whether interest can be demanded on delayed payments of entertainment tax ?. Section 11 of the Rules 1997 provides as under : "11. Payment of Tax.- (1) The Proprietor of cable Television shall deposit the amount of Entertainment Tax into Government Account in the State Bank of India conducting Government business or the Treasury, as the case may be within one week from the last day of every month, failing which simple interest at the rate of two per cent per month shall became due and be payable on the unpaid amount with effect from immediately following the last date prescribed till the date of payment of such amount : Provided that where the payment is made by cheque, which shall invariably be drawn on local Nationalised or S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as per Section 11 of the Rules 1997. Rule 16 of Rules 1997 provides that : "16. Notice for recovery of tax :- Where any sum due on account of tax under these rules has not been paid within the specified period by a Proprietor of a Cable Television, who is liable to make the payment, the District Magistrate shall, before issuing an order for recovery of the same as arrears of land revenue under Section 34 of the Act, issue a notice of demand calling upon such person to make the payment within the specified time." From perusal of the above provision of Rule 16 of Rules, 1997, it reflects that prior to issue an order for recovery of the Entertainment Tax as arrears of land revenue, the District Magistrate shall issue a notice of demand cal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before issuance of such a fresh notice, there could be no liability on the dealer for payment of penalty under the provisions of the Act and that the department was not entitled to raise the rate of penal interest relying on the amendment made in 1977. It was held that liability to pay penalty or interest was incurred with reference to the assessment year and the date of demand and default and not with reference to the assessment year and the date of demand and default and not with reference to any subsequent period. But in that case levying of penalty or making demand to pay interest itself was not upheld. In Baidyanath Ayurved Bhawan (P) Ltd. Vs. Excise Commissioner, U.P. & Ors. reported in 1971 SCR (2) 590, the Apex Court has laid down ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ead in that context provides that the interest would be payable from the date the tax became due but was not paid. Thus, it is clear that the impugned demand levying interest on delayed payment is valid. So far as the submission made on behalf of the petitioner that imposition of penalty is in violation of the principles of natural justice, is concerned, we find from the orders passed by the authorities that the appellants had given incorrect information with regard to total number of connections given by them. The requisite information was not provided by the petitioner in spite of issuance of notices and requests made to the petitioner. In fact, notice had been issued before imposition of penalty to the petitioner as it can be seen from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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