9911796707
TMI Blog2009 (12) TMI 864X X X X Extracts X X X X X X X X Extracts X X X X ..... Special Government Pleader for the revision petitioner and various counsel appearing for the respondent-assessees. The question raised is whether short payment of tax by the dealers along with monthly returns either on account of non-inclusion of turnover or failure to return turnover at the full rate of tax attracts interest under section 23(3A) of the Act. In S.T.R. No. 107 of 2009 the respondent is a dealer in paper who paid tax on the turnover of paper at four per cent as against eight per cent payable under the Act. The respondent-dealer in the other case has failed to include turnover in the return which led to levy of interest under section 23(3A) of the Act. The Tribunal in all the cases cancelled the levy of interest following the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or to pay the tax due thereon on the taxable turnover in any return filed or where any turnover or tax due has escaped assessment, interest under sub-section (3) shall accrue on the tax due on the turnover with effect from such date on which the tax due would have fallen due for payment, had the dealer included the same in the return relating to the period to which the turnover or tax, as the case may be, relates. (after amendment) The contention raised by the Special Government Pleader appearing for the State is that interest under section 23(3A) is payable from the period the tax would have been paid, had the dealer included the turnover in the return filed. On the other hand, counsel appearing for respondents contended that if the turn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provision is amended later to include the taxable turnover in the section and consequently there cannot be any liability for interest for the period prior to the amendment if the turnover was fully returned. We are unable to accept this contention because the question whether there is failure on the part of the assessee to include turnover in the return filed has to be considered with reference to the return itself, which is form No. 9 prescribed under the Rules. It is to be noted that the dealer is required to give the description and the turnover of each goods, the classification made with reference to entries in the Schedule to the Act, the point of sale and the rate of tax of taxable goods. There is a specific column provided in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of goods. Further, even if the assessment is made based on the return filed, and such assessment happens to be incorrect later and the demand of tax is increased through revision of assessment under section 19(1) pursuant to orders under section 35(1), still the assessee will be liable to pay interest under section 23(3A) on the differential tax that is between assessed tax and tax paid based on the return. On going through the judgment of this court above referred to, we do not find that this court has considered the nature of interest payable under section 23(3A) which we have found to be compensatory in nature. Further this court has not examined the manner in which a dealer has to file the return, the manner in which the dealer has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e respondents reducing the interest in terms of the scheme and allow settlement of liability by demanding further interest at one per cent per month for the amnesty amount payable from the last date for payment under the amnesty scheme till date of payment. The respondents are directed to make application in this regard before the assessing officer within three weeks from the date of receipt of a copy of this judgment and the officer is directed to allow them to settle liability by making payment within one month thereafter. The demand notice should be raised within one week from the date of making application. We make it clear that the amnesty benefit extended by us to the respondents will apply only to the respondents because of the pecul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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