9911796707
TMI Blog2010 (2) TMI 1105X X X X Extracts X X X X X X X X Extracts X X X X ..... st under section 8(1B) of the Act. The claim of the petitioner for the assessment year 2003-04 is rejected. X X X X Extracts X X X X X X X X Extracts X X X X ..... assessing authority in the years 1999-2000 to 2002-03, while passing original assessment order, has accepted the claim of the petitioner that such warranty claim was not liable to tax and accordingly exempted the turnover and it is only because of the decision of the apex court in the case of Mohd. Ekram Khan & Sons [2004] 136 STC 515; [2004] UPTC 1198, tax has been imposed on warranty claim therefore, the assessed tax on the warranty claim amount cannot be said to be admitted tax for the purposes of levy of interest under section 8(1) of the Act. In support of his contention he relied upon the decision of the apex court in the case of Commissioner of Sales Tax v. Hindustan Aluminium Corporation [2002] 127 STC 258; [1999] UPTC 1 and a Divi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the Act on the assessee's turnover as disclosed in his accounts or as admitted by him in his return or other proceeding under the Act, whichever is greater, or, if no accounts are maintained, according to his estimate. Sub-section (1A) deals with the post-assessment scenario. It says that the tax assessed under the Act shall be deposited within thirty days of service of notice of assessment and demand. Sub-section (1B) applies if the tax assessed is not deposited as required by sub-section (1A). 5.. The dispute here, as aforestated, was in regard to the classification of the assessee's products. Such classification dispute is ordinarily resolved in assessment proceedings and, if resolved against the assessee, the assessee has to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority while passing the original assessment orders has accepted the claim of the petitioner that the warranty claim was not liable to tax and the petitioner became liable to pay tax on such warranty claim amount under the reassessment orders under section 21 inasmuch as before the reassessment orders there was no occasion with the petitioner to deposit the amount. Therefore for these years it cannot be said that the claim of the petitioner was not bona fide. Therefore, the tax assessed on the warranty claim amount by reassessment order under section 21 cannot be said to be admitted tax for the purpose of demand of interest under section 8(1) of the Act. The petitioner is only liable to pay interest under section 8(1B) of the Act. The lea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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