9911796707
TMI Blog2017 (12) TMI 1601X X X X Extracts X X X X X X X X Extracts X X X X ..... if such person fails to make the deduction or, after making the deduction fails to deposit the amount so deducted, he shall be liable to pay simple interest at the rates contained in Section 44 (it should be read as "Section 45") of the Act on the amount so deducted. The FCI never complied with sub-rule (3) of Rule 7 of the Rules requiring them to deposit all the deducted amounts into the Government Treasury by Challans in Form XVIII within 7 days of the month following the date on which the deductions were so made from the bills of the petitioners in both the cases. The belated deposits made by them cannot now save them from paying the statutory interest to the petitioners. The FCI has entered into the shoes of the State-respondents for any liability to pay statutory interest to the petitioners with respect to the deducted amount not deposited by them to the State-respondents within the statutory period - On account of such omissions, deliberate or otherwise, the provision of sub-rule (11) of Rule 7 of the Rules shall enure to the benefit of the petitioners in both the cases. The petitioners in both the cases are, therefore, entitled to the statutory interest. Petition allow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for making payment to any person for discharge of any liability on account of valuable consideration payable for any transfer of the right to use any goods other than the goods in exempted list of the Act for any purpose (whether or not for a specified period) for cash or in any manner, shall at the time of making such payment deduct an amount at the rate as notified by the Government from time to time of the payment on account of such transfer of right: provided that till the Government notify the rate, the prevailing rate shall continue: Provided that no such deduction shall be made from the bill(s) or invoice(s) of the transferer where the amounts received as penalty for defaults in payment or as damages for any loss or damage caused to the goods by the person to whom such transfer was made, and (3) The amount deducted under sub-rules (1) and (2) shall be deposited into the Government Treasury by challan in Form XVIII by the person making such deduction within 7 days of the month following that in which the deduction is made. (4) The person making such deduction under sub-rules (1) and (2) shall, at the time of payment or discharge, furnish to the person from w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as follows : ..I also state that FCI had deducted tax amounting to ₹ 64,26,328/- and deposited ₹ 29,86,302/- and withheld the tax amount of ₹ 34,40,026/- coming out of calculation as (Rs.64,26,328-Rs.29,86,302) up to 9-3-2014. In view of the above observation, it is clear and transparent that the State Government (Respondents 4 5) had already refunded/paid the deducted tax corresponding to the amount credited to the Government exchequer along with interest thereof. It is pertinent to mention here that the respondent Nos. 1, 2 3 i.e. Food Corporation of India are obviously liable to pay the interest and deducted amount of tax if any to the petitioner corresponding to the amount withheld by the respondents 1, 2 3 so far retained with them without crediting the amount into the State Government exchequer with Head ofAccount 0040. 5. In the counter-affidavit filed by the State-respondents in W.P. (C) No. 1356 of 2016, it is revealed by the State-respondents that [T]ax Organization (Respondent Nos. 4 5) had already refunded the amount to the petitioner of ₹ 63,94,020/- (Tax amounting to ₹ 32,64,886/- together with interest ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and without rebuttal by the FCI, we have no hesitation to hold that the FCI never complied with sub-rule (3) of Rule 7 of the Rules requiring them to deposit all the deducted amounts into the Government Treasury by Challans in Form XVIII within 7 days of the month following the date on which the deductions were so made from the bills of the petitioners in both the cases. The belated deposits made by them cannot now save them from paying the statutory interest to the petitioners. The FCI has entered into the shoes of the State-respondents for any liability to pay statutory interest to the petitioners with respect to the deducted amount not deposited by them to the State-respondents within the statutory period. On account of such omissions, deliberate or otherwise, the provision of sub-rule (11) of Rule 7 of the Rules shall enure to the benefit of the petitioners in both the cases. The petitioners in both the cases are, therefore, entitled to the statutory interest. 8. For what has been stated in the foregoing, both the writ petitions succeed. Let a writ of mandamus issue calling upon the FCI-respondents to pay to the petitioners in W.P. (C) No. 1356/2016 and W.P. (C) No. 1357/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
