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TMI Blog2018 (2) TMI 1546X X X X Extracts X X X X X X X X Extracts X X X X ..... icer [2014 (7) TMI 579 - MADRAS HIGH COURT], where it was held that During the relevant assessment year, there was no provision to levy interest on belated payment of additional tax or in other words, there was no provision enabling the applicability of Section 24(3) towards tax due, under the Act - interest cannot be demanded for belated payment on Additional Sales Tax, as there is no substantial provision in the TNAST Act itself and similarly, no penalty can be levied, as there is no charging Section under the TNAST Act to levy penalty for the relevant Assessment year. Demand do not sustain - petition allowed - decided in favor of petitioner. X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, which reads as follows:- 17. If we paraphrase the above sections slightly they will read thus:- "The provisions of the TNGST Act as they apply to tax in the said Act shall apply in relation to additional tax payable under clause (aa) of the AST Act." Similarly, the new Section (as amended by Act 14 of 2005) will read like this: "The provisions of the TNGST Act as they apply to tax and interest in the said Act shall apply in relation to additional tax and interest payable under clause (aa) of the AST Act." 18. Therefore, the reference to the said Act(namely TNGST Act) in S.2(1)(b) was to the provisions of the said Act 'in relation to tax'. Nothing more. Even in Ashok Service Center, the Supreme Court had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of the TNGST Act cannot be the source of power of such levy. Similarly, unless there is a charging section for levy of penalty, there can be no automatic reading of the power to levy penalty. The levy of penalty cannot be sustained. We are in agreement with 2004 (136) STC 606(cited supra). In our view, therefore, we see no reason to refer the matter for reconsideration." 20. The above Judgments are squarely applicable to the case on hand. From the above Judgments, it is clear that the interest cannot be demanded for belated payment on Additional Sales Tax, as there is no substantial provision in the TNAST Act itself and similarly, no penalty can be levied, as there is no charging Section under the TNAST Act to levy pen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eir objections. However, I am not able to concede to the said submission, for the reason that, when there is a total lack of jurisdiction to levy penal interest, the petitioner need not be prevented to approach the authorities and file their objections to the impugned notices. That apart, the impugned notices are not show cause notices, but demands for payment of interest, that too, without issuing a show cause notice to the petitioner.
5. Thus, for the above reasons and taking note of the decision in the case of S.Gurunathan Vs. Deputy Commercial Tax Officer, Thirupathur, and another (supra), these Writ Petitions are allowed and the impugned notices are quashed. No Costs. Consequently, connected miscellaneous petitions are closed. X X X X Extracts X X X X X X X X Extracts X X X X
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