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TMI Blog2002 (9) TMI 808X X X X Extracts X X X X X X X X Extracts X X X X ..... 4545 dated December 26, 1977, according to which the rate of sales tax payable is 4 per cent on maize in all its forms and, thus, maize seeds are also included in the maize and the tax liability is only to the extent of 4 per cent. The further case of the petitioner is that the direction issued by the Commissioner has no support in law in the sense that he has no power under the provisions of the Bihar Finance Act, 1981 (for short "the Act") to issue such directions to the assessing authority exercising quasi-judicial function. The petitioner has already filed a return and has paid amount of sales tax due on the basis of the return. The authority without any assessment under the provisions of the Act cannot demand more tax than what has been paid on the basis of the return. 3.. The stand of the State, on the other hand, is that the maize seeds are not covered by the notification dated December 26, 1977 and the seeds are not covered by the word "cereal" as defined under section 14 of the Central Sales Tax Act, 1956. It is also not a certified seeds or vegetable seeds and as such the rate of tax payable is 9 per cent. 4.. Learned counsel for the petitioner submitted that the impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istration certificate under the third proviso to sub-section (2) of section 14 is required to furnish a true and complete return in respect of all his transactions in the manner as provided under the aforesaid provision. Rule 25 of the Rules framed under the Act contains a provision with regard to filing of the return, its verification, etc. Under the said provisions, the dealers are required to furnish monthly abstract statement and in case their monthly amount of tax exceeds rupees two thousand five hundred then to deposit each month tax according to the statements on or before the 15th of the following month. Other dealers, who are liable to file quarterly or annual return, are required to deposit the tax due before the returns are filed. Sub-sections (8) and (9) of the said section contain provision for imposition of penalty for non-filing of the returns or for the late or non-payment of the tax due as per the returns. Section 17 deals with the assessment of tax. Section 21 deals with the taxable turnover and section 25 contains a provision with regard to payment and recovery of tax. It provides, inter alia, that the amount of tax estimated in advance under sub-section (10) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e consequences mentioned therein would follow. In course of any proceeding or otherwise if the assessing authority is satisfied that the dealer has concealed any sales or purchases or any particulars thereof, or has furnished a wrong information in the return furnished under sub-section (1) of section 16, then after giving an opportunity of hearing to the dealer, the penalty is to be imposed and the dealer has to pay the tax in addition to any tax which is or may be assessed under section 17 of the Act. There is no provision under the Act, which empowers the assessing authority to demand tax more than what has been due according to the return prior to the assessment proceeding. 8.. At this stage, it is clarified that if at the time of assessment, it is found that the statement made in the return filed under section 16 of the Act is incorrect or false and the sales tax, which is due according to the assessment, has not been paid, then the authorities are empowered to pass an appropriate order under the provisions of the Act, but so long the assessment is not made under the provisions of the Act, the authorities are not empowered under the Act to demand additional amount of tax as p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... des for filing of the return. Sub-sections (2) and (2A) of section 7 contain provision for deposit of the amount of tax due on the basis of the return or full amount of tax due shown in the return. The apex Court held that so long the assessee pays the tax, which is due on the basis of the return, he is not liable to pay interest in terms of clause (a) of section 11B of the Act. It was further held that the said provision did not envisage the assessee to predict the final assessment and expect him to pay the tax with a view to avoid the liability to pay interest. Relevant portion of the decision of the apex Court reads as follows: "Therefore, the conjoint reading of sections 7(1), (2) and (2A) and 11B of the Act leaves no room for doubt that the expression 'tax payable' in section 11B can only mean the full amount of tax which becomes due under sub-sections (2) and (2A) of the Act when assessed on the basis of the information regarding turnover and taxable turnover furnished or shown in the return. Therefore, so long as the assessee pays the tax which according to him is due on the basis of information supplied in the return filed by him, there would be no default on his part to m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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