9911796707
TMI Blog2006 (7) TMI 589X X X X Extracts X X X X X X X X Extracts X X X X ..... in these writ petitions from time to time and in view of those interim orders the petitioner has not paid the sales tax since the withdrawal of exemption of sales tax has been challenged by the petitioner apart from payments made pursuant to interim directions in the present proceedings. On June 22, 2006 when this batch of writ petitions were taken up for hearing, learned counsel for the petitioner was served in court with a memo bearing No. 8021(2) dated June 9, 2006 issued by the Director of Industries, Orissa, in which it was stated that the Government of Orissa has reviewed its earlier decision and decided not to allow the sales tax incentives under the Industrial Policy Resolution, 1996 and specifically under para 15.4 of the Industr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e petitioner has to pay interest in the facts and circumstances of the case. Under the provision of the Orissa Sales Tax Act, 1947 (hereinafter referred to as "the OST Act"), an assessee has to pay interest in a situation contemplated under section 12(4-a) of the said Act. The said section is set out below: "12. Assessment of tax.--. . . (4-a) If the Commissioner, while making an assessment under subsection (2), (3) or (4), is satisfied that the dealer has knowingly produced incorrect accounts, documents or registers or has without sufficient cause furnished incorrect return or information affecting or intended to affect the quantum of the tax payable by him or his liability to pay tax for the period for which such assessment is made, he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the 1st day of January, 1971." There is another provision for payment of interest under the said Act, that is the provision under section 14-C. But here interest is to be paid by the Revenue for delayed refund to the assessee and not by the assessee. So this has no application here. The learned counsel for the Revenue admitted that of the two sections quoted above, namely, sections 12(4-a) and 13(6), section 12(4-a) has no application but section 13(6) applies. Now it is clear from a perusal of section 13(6) of the said Act that it is attracted in a case of default. What amounts to default on the part of the assessee has not been defined in the said Act. So the ordinary meaning of the word "default" would govern the situation. Apart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest and under which sections of the Act. It was also held that when the assessment order is silent about any interest being leviable, the notice of demand cannot levy interest. It appears that the ratio in that case was not subsequently disturbed by the Supreme Court when an appeal was filed against the same by the Revenue. The subsequent order of the apex Court in the case of Commissioner of Income-tax v. Ranchi Club Ltd. reported in [2001] 247 ITR 209. In the case of M.G. Brothers v. Commissioner of Income-tax reported in [1985] 154 ITR 695, the division Bench of the Andhra Pradesh High Court held at page 712 of the Report that charge of interest is not a matter of automatic consequence and that an assessee has a say in the matter b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this matter, the Sales Tax Department filed a memo dated June 22, 2006 enclosing thereto a letter dated June 9, 2006 addressed to the petitioner by the Director of Industries, Orissa and the letter dated May 27, 2006 addressed by the Industries Department, Government of Orissa, to the Director of Industries, Orissa, Cuttack. On perusal of the aforesaid two letters, it would be clear that the petitioner had been granted an eligibility certificate on sales tax concession on raw materials, machinery spare parts, packing materials and finished products vide letter No. XIV-HI-10/2002(Pt)-11366/1 dated June 26, 2003 and the said certificate granting such benefit for the petitioner's unit is for a period of six years from May 3, 2000 to May 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing effect: "As a consequence of the said letter, the Director of Industries, Orissa, Cuttack, has issued a show cause to the petitioner to withdraw the eligibility certificate for sales tax concession. A copy of the said show cause dated June 9, 2006 is filed herewith for kind perusal of the honourable court. So far as response to the petitioner's offer for waiver of interest is concerned since interest is chargeable under the OST Act and is statutory interest, for belated payment such waiver of interest is not feasible, as there is no such provision under the statute." Therefore, on consideration of the aforesaid facts, it is clear that the impugned demand has been made by the sales tax authorities despite the eligibility certificate ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
