2016 (9) TMI 270

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..... alling upon the petitioner to pay interest under Section 24(3) of the Tamil Nadu General Sales Tax Act. 3. In the impugned proceedings, it has been stated that three cheques given by the petitioner to the Enforcement Wing Officials during inspection, got dishonoured and therefore, the petitioner is liable to pay interest under sub-section (3) of Section 24 of the Act which consist of two circumstances, under which interest becomes payable viz., on any amount remaining unpaid after the dates specified for its payment as referred to in sub-section (1) of Section 24 of the Act or in the order permitting payment in installments, in such contingency, the dealer shall pay, in addition to the amount due, interest at the specified percentages. Thu .....

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..... t becomes payable under Section 24(3) on an amount remaining unpaid after the date specified for its payment under sub-section (1) of Section 24. As seen above, sub-section (1) of Section 24 deals with an assessed tax or tax which has become payable under the Act. In case covered by Section 13(2) tax must be paid without any notice of demand. But as stated above, under Section 13(2) tax is to be paid "on the basis of such returns". Tax as per the returns has admittedly been paid. If the returns were incomplete or incorrect as now claimed the assessing authority had to determine the tax payable and issue a notice of demand. In the absence of any assessment, even provisional, and a notice of demand no interest would be payable under Section 2 .....

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..... ional assessment and on such determination and intimation from the dealer, he shall pay the tax. However, in the instant case, there is no record to show that provisional assessment was made and the notice calling upon the petitioner to pay the differential rate of tax was only on the ground that the petitioner did not remit 10% tax but remitted only 4% tax. But the petitioner did not admit the return. Therefore, if it is a case where the petitioner admitted the return, the tax liability became crystallized and the petitioner does not pay the amount, then the Assessing Officer would be entitled to issue notice and upon violation to pay the amount, interest would be attracted. In the instant case, the petitioner did not admit his return and .....

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