9911796707
TMI Blog2011 (9) TMI 888X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner to pay Rs. 13,33,115 along with interest at the rate of two per cent for the period from January 1, 2010 to the date of payment of the amount as directed in form E24 without application of mind and misconstruing the above provisions of the OET Rules. The petitioner's case in a nutshell is that the petitioner is a dealer registered under the Value Added Tax Act, 2004 (for short, "VAT Act") and Entry Tax Act, 1999 (for short, "the ET Act"). It has been regularly filing its quarterly returns as required under sub-section (1) of section 7 of the OET Act before the assessing authority disclosing nil turnover of value of goods on which entry tax is payable. In spite of the same, the Sales Tax Officer, Paradeep Circle, Paradeep, J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned counsel appearing for the Commercial Taxes Department submits that there is no illegality or infirmity in issuing the notice in form E24 under rule 10(6)(b) and demand notice in form E8 under rule 16 of the OET Rules. The petitioner having claimed illegal deductions from the total value of goods purchased and utilized in execution of the works contract, the assessing officer in exercise of power vested under rule 10(6) (b) of the OET Rules has issued form E24 raising the amount due from the dealer. Consequently, notice of demand issued in form E8 is also valid. On rival contentions of the parties, the only question that arises for consideration by this court is as to whether in exercise of the power vested with the assessing officer un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble by him as per the return furnished and the amount of tax paid along with return. In other words, if the dealer pays the less amount of tax than what he admits to be payable by him as per the return furnished, the assessing officer shall and can ask the dealer to pay the differential amount in form E24. To illustrate, if, as per the return filed by the dealer, Rs. 100 tax is payable by him and his return is accompanied by a challan showing payment of Rs. 40, the assessing authority shall issue notice in form E24 for the balance amount of Rs. 60. Therefore, under subrule (6) of rule 10 there is no provision to give any opportunity of hearing to the dealer before issuing notice under that sub-rule in form E24. Opportunity of hearing the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious claim made in the return. That would be in gross violation of the principles of natural justice. It is pertinent to note here that the apprehension of Mr. Kar has been taken care of by the Legislature in rule 10 itself. It is well-settled legal position that, while interpreting the provisions of the statute, every part of the provisions of the statute has to be given effect and one part cannot be interpreted in a manner inconsistent with another part of the statute that would defeat the object and purpose of the Act and rule. In Mohammad Ali Khan v. Commissioner of Wealth-tax [1997] 224 ITR 672 (SC); AIR 1997 SC 1165, the Supreme Court has quoted the following observations of the court made in J.K. Cotton Spinning and Weaving Mills C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the concept or object it was intended to articulate and a host of other considerations. Above all, the court will avoid repugnancy with accepted norms of justice and reason. . ." As per rule 10(1)(a), the return under sub-section (1) of section 7 of the Act shall be submitted in form E3 within twenty-one days of the date of expiry of the month or quarter as the case may be, to which the return relates. Clause (a) of sub-rule (3) of rule 10 of the OET Rules provides that the return under sub-rule (1) or (2) shall be accompanied by the receipt from the Government treasury or a crossed demand draft drawn in any scheduled bank or a bankers' cheque issued by the scheduled bank in favour of the Assistant Commissioner, Sales Tax or Sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnishing the proof of payment of the tax due, the penalty shall be imposed under sub-section (7) of section 7 and the order shall be issued in form E23. Thus, on a conjoint reading of the above provisions, if a dealer is required to pay the tax due as per the return and he fails to make payment of the tax due as per the return and interest accrued thereon along with return or revised return the show-cause notice is served upon the dealer to make payment of the tax due on the return. If the dealer fails to respond to such notice an order has to be issued in form E23 imposing penalty. In the instant case, the petitioner-dealer has filed its nil return for the period under consideration. Since it is not the case of the assessing officer th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
