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TMI Blog2015 (8) TMI 1355X X X X Extracts X X X X X X X X Extracts X X X X ..... t at the rate of three per cent and pay interest? Held that: - even if the inter-state purchase of the raw material made by the revisionist exceeded five per cent, if the revisionist exercised the option to pay three per cent composition fee, then, that would put an end his tax liability for the period - Without there being tax liability, there cannot be a question of levying interest. Therefore, in place of the tax, which he would have had to pay under the earlier scheme, in view of his inter-state purchase having exceeded five per cent, as he had opted to pay three per cent and which he could possibly do only after 28.10.2003, it cannot be mulcted with interest for the period prior to 28.10.2003. Revision allowed - decided in favor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ead of one per cent and, in that situation, the tax assessment provision will not be applicable. The assessment proceedings were completed by the Assessing Officer by giving the benefit of the amended composition fee scheme, by which the revisionist paid a total of three per cent, including one per cent already paid. The revisionist was called upon to deposit the amount at the rate of three per cent, as he had opted for the same. Over and above the same, the Assessing Officer also directed him to deposit interest for the period with retrospective effect on monthly basis. 3. The revisionist carried the matter in first appeal. In the first appeal, the first appellate authority took the view that the revisionist will be liable to pay intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years, when the Association had told the State Government about the non-availability of the raw materials in the State of Uttarakhand? 6. We have heard the learned counsel for the revisionist and the learned Brief Holder for the State. 7. We have already referred to the amendment brought about on 28.10.2003. Initially, the composition fee consisted of one per cent of the total contract amount; the only restriction was that the contractor could not avail of the composition fee of one per cent and had to pay the tax as provided under the Act, if the inter-state purchase of raw material exceeded five per cent of the contract amount. There is no dispute that it exceeded five per cent. If things stood so and there were no further developm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8.10.2003 is retrospective and, therefore, the terms of the order dated 28.10.2003 must be given full effect. We would think that the first appellate authority has correctly understood the legal position. It is also relevant to mention here that the Circular dated 28.10.2003 does not provide for payment of interest for the period prior to its date. 9. Accordingly, we answer the substantial questions of law Nos. (a) (b) in favour of the revisionist. The order of the Tribunal will stand set aside. We restore the order passed by the first appellate authority. Revisionist has a case that he has paid the interest as ordered by the Assessing Officer. If it is so, it is open for the revisionist to file an appropriate application for seeking r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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