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TMI Blog2019 (2) TMI 1782X X X X Extracts X X X X X X X X Extracts X X X X ..... wing substantial questions of law: Whether the Courts below is correct in holding that no notice is necessary to the legal heirs of the deceased dealer i.e., their father before making any penal interest for delayed payment of arrears of tax and whether the principles set out in 1981 (Vol.47) Sales Tax Cases p.273 (India Tyre & Rubber Co. (India) P.Ltd., Vs. Commercial Tax Officer, Madras) will apply to the case on hand? 3. The parties are referred to as per the rankings in the trial court. 4. Considering the scope of the issues involved between the parties as regards the subject matter lying in a narrow campus , it is unnecessary to dwell into the facts of the case in detail. 5. The plaintiffs are the legal representatives of V.P.Pala ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 51 of the Tamilnadu General Sales Tax Act 1959, prohibits the Civil Courts jurisdiction in entertaining the suit laid by the plaintiffs and accordingly sought for the dismissal of the plaintiffs' suit. 8. Based on the materials placed on record by the respective parties, both oral and documentary, the Courts below were pleased to dismiss the plaintiffs' suit, inter alia on the ground that the Civil Court has no jurisdiction to entertain the lis and also on the footing that there is no need for issuing any fresh notice of demand to the plaintiffs to pay the penal interest on the delayed payment of tax arrears. Impugning the same, the present Second Appeal has been preferred. 9. As abovenoted, the plaintiffs are the legal represen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oth the deceased as well as the plaintiffs had also paid the tax arrears, according to the defendants, there is no need to issue a fresh notice of demand to the plaintiffs to pay the penal interest liable to be paid by them on the delayed payment of the tax arrears and therefore contended that the above said contention put forth by the plaintiffs does not stand scrutiny in the eyes of law. 11.As rightly determined by the Courts below, considering the import of section 15 of the Tamil Nadu General Sales Tax Act 1959, it is found that the plaintiffs are liable to pay the arrears left unpaid by the deceased father. Section 15 of the Tamil Nadu General Sales Tax Act 1959 reads as follows: Assessment of legal representatives: 15. Where a de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e other hand, they had chosen to pay the tax arrears following the original notice on demand made to the deceased V.P.Palaniyappa Chettiyar and when it is seen that the impugned notice is issued only directing the plaintiffs to pay the penal interest on the delayed payment of the tax arrears and when the plaintiffs have knowledge about the liability to pay tax arrears and also paid the tax arrears, as rightly determined, the levy of penal interest is only by way of an incidental proceeding and in such view of the matter, the plaintiffs cannot expect or demand a fresh notice to be made upon them for claimining the payment of the penal interest particularly when it is noted that they have without any demur paid the unpaid portion of the tax a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... low, the plaintiffs' suit challenging the impugned notice is found to be not maintainable and when as above discussed there is no need for issuing a fresh notice of payment to the plaintiffs calling upon them to pay the penal interest, in my considered opinion and also as determined by the Courts below, when there is no infraction of the principles of natural justice in the issuance of the impugned notice and considering the scope and ambit of Section 51 of Tamil Nadu General Sales Tax Act 1959, it is found that the Civil action laid by the plaintiffs is not legally sustainable and barred. The decision is relied upon the plaintiffs' counsel reported in 1983 (2) Karnataka Law Journal 56 [Lakshmi Ammal and others Vs. The commercial Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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