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TMI Blog2018 (2) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... d 25.04.2009. A rectification order was passed by the Assessing authority under Section 25-A of the Act on 23.01.2010 on the ground that the sugarcane purchased in respect of crushing units situated at Haveri, Havalaga, Guralatti and Alanda were not eligible for the benefit of treating the tax on purchase of sugarcane as loan for a period of ten years. In pursuant to the rectification order, the assessee was liable to pay additional tax and the same was paid on additional demand made. 4. The respondent-Company was issued with notice for making payments towards interest on the delayed payment of taxes imposed by way of rectification order which were the subject matter of writ petitions before this Court and the same came to be disposed of on 09.02.2011 with a direction to the assessee to go before the Assessing Authority with their grievances and also directed the Assessing Authority to consider the grievance of the assessee with regard to the proposal of imposing penalty and interest thereon, subsequent to which, the respondent- company submitted written objections to the notice dated 11.02.2010. The said objections were considered un der Section 12-B (2) of the Act and the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te and no demand was made under the said provision. This issue is squarely covered by the judgment of the Hon'ble Apex Court in the case of J.K. SYNTHETICS LTD., VS. COMMERCIAL TAXES OFFICER [1994 STC 422 (SC)] and the judgment of this Court in the case of STATE OF KARNATAKA VS. MANDOVI MOTORS (PRIVATE) LIMITED, MANGALORE, reported in [2014 (79) KLJ 581]. Based on these judgments, the Tribunal allowed the appeals which do not warrant any interference by this Court. Thus, he submits that no question of law arises for consideration in this re vision petition and accordingly deserves to be rejected. 8. We have given our bestowed consideration to the arguments advanced at the hands of the learned counsel for the parties and perused the material on record. 9. The question of payment of interest under Section 12-B(2) of the Act is the main dispute. The Revenue is claiming interest under Section 12-B (2) of the Act based on the rectification orders passed under Section 25-A of the Act, rectifying the assessment orders. Section 12- B(1) of the Act deals with the payment of tax in advance according to which every dealer is required to file monthly returns to the assessing authority includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anied by a receipt evidencing the deposit of full amount of 'tax due' in the State Government on the basis of the return. That is the requirement of Section 7 (2). Section 7 (2-A), no doubt, permits payment of tax at shorter intervals but the ultimate requirement is deposit of the full amount of 'tax due' shown in the return. When Section 11-B (a) uses the expression "tax payable under sub-sections (2) and (2-A) of Section 7 ", that must be understood in the context of the aforesaid expressions employed in the two sub- sections. Therefore, the expression 'tax payable' under the said two sub-sections is the full amount of tax due and 'tax due' is that amount which becomes due ex hypothesi on the turnover and taxable turnover "shown in or based on the return". The word 'payable' is a descriptive word, which ordinarily means "that which must be paid or is due or may be paid" but its correct meaning can only be determined if the context in which it is used is kept in view. The word has been frequently understood to mean that which may, can or should be paid and is held equivalent to 'due'. Therefore, the conjoint reading of Sections 7 (1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as prescribed under sub-section (1-B) of Section 12. In other words, when a dealer files a return, states what is the tax payable, but he fails to make payment of the said tax or makes short payment, the n he is liable to pay interest on the tax due under the Act. After the filing of the return, if the Assessing Authority is satisfied that any return submitted under sub-section (1) is correct and complete, he shall assess the dealer on the basis thereof by virtue of the power conferred on him under sub-section (2) of Section 12 of the Act. However, if no return is submitted by the dealer under sub-section (1) before the date prescribed or specified in that behalf, or if the return submitted by him appears to the Assessing Authority to be incorrect or incomplete, the Assessing Authority shall assess the dealer to the best of his judgment, recording the reasons for such assessment. On such assessment if it is found that the dealer i s due in any amount of tax, then he shall issue notice to the dealer in Form 6 calling upon the dealer to pay the tax as finally assessed within 21 days from the date of service of notice, then under Section 13 he is liable to pay interest on such di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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