9911796707
TMI Blog2015 (3) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... hereby, tax amount should be paid within the time indicated in the order or in such instalments permitted by the assessing authority. Sub-clause 3 of Section 42 of the Act mandates payment of statutory interest at the rate of 2% per month for the entire period of default. The Act, therefore, gives the authorities, power to permit the assessee to pay the amount in instalments. The appellants are given discretion to fix the period of payment and instalments. It was only on the strength of the said provision, the learned Single Judge passed a discretionary order permitting the assessee to pay the tax amount in instalments. When there is a provision permitting payment of tax amount in instalments, subject to payment of statutory interest, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n (in short TASMAC ). The assessee is in arrears to the Commercial Taxes Department, originally, to the tune of ₹ 20,18,42,722/-. The fourth appellant initially issued a demand notice in Form U dated 02.05.2014, which contained a demand for a sum of ₹ 26,77,03,167/-. Since the fourth appellant initiated coercive proceedings, the assessee filed writ petition in W.P. No.14030 of 2014, challenging the notices dated 16.05.2014 and 02.05.2014, with a request to pay the amount in instalments. 4. The learned Single Judge, after hearing the learned Additional Government Pleader (Taxes), set aside the notices and directed the first respondent to pay initially, a sum of ₹ 5 crores within a period of six weeks and the remaining am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dings. The fourth appellant appears to have issued notices under the Revenue Recovery Act, besides attachment proceedings to the bankers and TASMAC. The appellants were fully justified in taking such recovery proceedings to realise the value added tax arrears. The coercive proceedings taken to realise the tax arrears made the assessee to file the writ petition in W.P. No.14030 of 2014. The learned Single Judge, taking into account, the facts and circumstances of the case, permitted the assessee to pay the amount in instalments. 7. The Act is a comprehensive legislation dealing with registration of dealers, making assessment on the basis of returns and collection and recovery of tax. 8. Section 42 of the Act deals with payment and reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2% per month for the entire period of default. The Act, therefore, gives the authorities, power to permit the assessee to pay the amount in instalments. The appellants are given discretion to fix the period of payment and instalments. It was only on the strength of the said provision, the learned Single Judge passed a discretionary order permitting the assessee to pay the tax amount in instalments. When there is a provision permitting payment of tax amount in instalments, subject to payment of statutory interest, the appellants cannot be heard to say that the learned Single Judge erred in quashing the coercive action taken by the fourth appellant and permitting the assessee to pay the amount in instalments. 12. The appellants are primari ..... X X X X Extracts X X X X X X X X Extracts X X X X
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