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TMI Blog2009 (7) TMI 1182X X X X Extracts X X X X X X X X Extracts X X X X ..... stion raised in this writ appeal is, whether the appellant is liable to pay penal interest on the alleged belated payment of additional sales tax. The assessee/writ petitioner is a manufacturer of elevators, supply, installation and commissioning of lifts. They reported a total and taxable turnover of Rs. 25,89,922 and Rs. 25,73,12,945 for the assessment year 2002-03. In the assessment order dated February 26, 2004, there was no balance payable by the assessee as the tax due was paid in full and the balance was shown to be nil. By the notice dated April 27, 2004, the writ petitioner was informed that they had paid the additional tax dues belatedly for the assessment year 2002-03 and hence, a demand was made for payment of penal interest at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly provides for the same. Learned counsel submitted that the appellant had paid the additional sales tax in March, 2003 itself, even before completion of the assessment year and therefore, there can be no levy of penal interest. Learned counsel further submitted that the interest on delayed payment of tax cannot be levied unless the assessment or provisional assessment is made and notice of demand is issued, and for this purpose, he relied on E.I.D. Parry (India) Ltd. v. Assistant Commissioner of Commercial Taxes [2005] 141 STC 12 (SC). The learned Government Advocate for the Revenue submitted that since the amendment by which penal interest for belated payment of additional sales tax has been introduced by the amendment in Act 14 of 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is made and notice of demand is issued. For the purpose of this case it is sufficient if we consider one ground raised on behalf of the appellant and that is, that unless there was an assessment order and the tax had remained unpaid, there can be no penal interest. Section 2(aaa) of the Tamil Nadu Additional Sales Tax Act, 1970 read as follows: Amendment of section 2. In section 2 of the Tamil Nadu Additional Sales Tax Act, 1970 (Tamil Nadu Act 14 of 1970) (hereinafter referred to as 'the principal Act'), in sub-section (1), (1) after clause (aa), the following clause shall be inserted, namely: '(aaa) on any amount of additional tax or penalty imposed by the assessing authority remaining unpaid under this Act, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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