9911796707
TMI Blog2016 (7) TMI 773X X X X Extracts X X X X X X X X Extracts X X X X ..... following three questions, stated to be substantial questions of law:- "(1) Whether the Hon'ble Tribunal is right in law in holding that interest under section 47(4A) of the Act is not leviable till the date of assessment order? (2) Whether the Hon'ble Tribunal is right in law in holding that interest under section 47(4A) of the Act is not leviable if difference between tax assessed and tax paid is less than 10%? (3) Whether the Hon'ble Tribunal is right in law in reducing penalty levied under section 45(6) of the Act to 10%?" 2. The facts of the case are that an assessment order dated 31.3.1995 came to be passed by the Sales Tax Officer (2) Kalol for the period 1992-93 raising a demand of Rs. 8,22,589/-. The respondent dealer ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eferred second appeal. The Tribunal held that the dealer was not liable to pay interest under section 47(4A)(b) of the GST Act for the period after the date of payment of the total amount of tax due and having found the explanation given by the dealer to be acceptable, the Tribunal in exercise of discretionary powers reduced the penalty to 10% of the amount imposed by the Sales Tax Officer. 3. Mr. Chintan Dave, learned Assistant Government Pleader, assailed the impugned order by submitting that under the provisions of clause (b) of sub-section (4A) of section 47 of the GST Act, if the amount of tax assessed or reassessed under section 41 or section 44 exceeds the amount of tax already paid by a dealer for that period, there shall be paid b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposit such amount cannot be considered to be a reasonable cause for not imposing penalty under sub-section (6) of section 45 of the Act. It was, accordingly, urged that the appeal requires consideration on the questions as proposed or as may be formulated by the court. 4. This court has considered the submissions advanced by the learned Assistant Government Pleader for the appellant and has perused the record of the case as available before it. 5. From the facts, as emerging from the record, it appears that the dealer at the time of filing of the sales tax return had not deposited the entire amount payable thereunder. Such amount came to be deposited at later dates on 22.5.1994 and 5.6.1994. The Sales Tax Officer thereafter, passed an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n (1), (2) or (3), then there shall be paid by such dealer for the period commencing on the date of expiry of the aforesaid prescribed time and ending on the date of payment of the amount of tax, simple interest, at the rate of eighteen per cent, per annum on the amount of tax not so paid or any less amount thereof remaining unpaid during such period. (b) Where the amount of tax assessed or reassessed for any period, under section 41 or section 44, subject to revision if any under section 67, exceeds the amount of tax already paid by a dealer for that period, there shall be paid by such dealer, for the period commencing from the date of expiry of the time prescribed for payment of tax under sub-section (1), (2) or (3) and ending on date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring that period. Therefore, by virtue of clause (a) of sub-section (4A) of section 47 of the GST Act, a dealer who has not paid the amount of tax as prescribed under sub-sections (1), (2) or (3) is required to pay interest on the differential amount of tax till the date of payment of such amount. Therefore, the dealer would be liable to pay interest from the time prescribed under sub-section (1), (2) or (3) of section 47, as the case may be, till the date of payment of the amount of tax, simple interest at the rate of eighteen per cent per annum. Adverting to the facts of the present case, the dealer had paid the amount of Rs. 7,47,032/- on 22.5.1994 and 5.6.1994 after the time prescribed under sub-sections (1), (2) or (3) of section 47 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the difference of amount paid on the prescribed date on the amount assessed has to be taken into consideration and the dealer is liable to pay interest from the prescribed date till the assessment order on the entire differential amount as contended by the appellant, inasmuch as, the same would then render the provisions of clause (a) of sub-section (4A) of section 47 nugatory. It is by now well settled that the section has to be read as a whole and in harmonious manner so that all the clauses thereof are rendered sustainable. If clause (b) of subsection (4A) of section 47 of the GST Act is to be read in the manner as suggested on behalf of the appellant, the provisions of clause (a) of sub-section (4A) of section 47 would be rendered redu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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