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TMI Blog2014 (3) TMI 906X X X X Extracts X X X X X X X X Extracts X X X X ..... months from 23.12.2002, the day on which the unit was closed down - It was also mentioned in the order itself that on account of closure of business on 23.12.2002, the facility of deferment automatically comes to an end and tax amount ought to have deposited. The Assessing Authority has already granted the benefit of deferment of all the previous years till the date of closure of the unit and only asked the interest after three months from the date of closure of the unit till the date of actual deposit of tax by the petitioner - the petitioner is liable to pay tax after closure of the unit in terms of Rule 43(4) along with interest – There is no illegality, infirmity or jurisdictional error in asking the petitioner for the payment of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act') for the aforesaid business. The eligibility certificate was granted to the petitioner in terms of Government Order dated 31.03.1995 being Eligibility Certificate No.203 dated 16.04.2002 effective w.e.f. 31.10.1996 to 31.10.2006. The petitioner after grant of eligibility certified applied for deferment facility under Section 8 (2-A) of the Act on 26.04.2002 to the Commissioner Trade Tax, U.P. Lucknow. The application to this effect was received in the office of Commissioner on 13.05.2002. The Joint Commissioner of the area recommended for the deferment vide letter dated 22.05.2002. When the application for deferment was under consideration, the petitioner sold out its unit to one M/s Universal Dairy Products Private Limited by a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re-17 of the writ petition. After deposit of the entire tax under the deferment scheme as stated above, the department issued notices demanding interest for not depositing the amount within three months from the date of its accrual i.e. from the date of closure of the business on 23.12.2002 till the date of actual payment of the tax. Aggrieved by these notices of demand, this writ petition has filed along with the order passed by Commissioner, Trade Tax, Uttar Pradesh vide its letter dated 14.01.2005. 3. Heard Sri Naresh Chandra Mishra, learned counsel for the petitioner and Sri H.P. Srivastava, learned Additional Chief Standing Counsel for the respondents. 4. Learned counsel for the petitioner would submit that the petitioner has dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Before further proceeding in the matter, it is necessary to have a look of Rule 43 of U.P. Trade Tax Rules, 1948: 43. Conditions for grant of moratorium under section 8(2-A) - The Commissioner, on application of a manufacturer may, in lieu of exemption under section 4-A grant moratorium for payment of tax admittedly playable by such manufacturer on sale of goods manufactured by him beyond the period prescribed in rule 41 subject to the following conditions, namely - (1) The facility shall be available only to the manufacturer who is registered under the Act and has been granted an eligibility certificate under section 4-A and has filed the returns of his turnover as per rules. (2) The facility shall be available- (a) onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed or in any proceeding under the Act, whichever is greater, whether the excess tax so assessed is due to detection of any evasion of tax made, or disallowance of any exemption claimed, by such manufacturer, or for any other reason, and the amount of tax so assessed in excess shall be paid in accordance with the provisions of the Act and rules. (6) The facility shall be available to the manufacturer on creating first or second charge on its property in favour of the State Government, sufficient to cover the amount of tax in respect of which moratorium has been granted. (7) If the amount in respect of which moratorium has been granted is not paid within the period specified in clause (3) or (4), as the case may be, the manufacturer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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