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TMI Blog2020 (11) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... doubtedly applies to these cases. On account of the above position, we conclude that the apposite provision, in this case, is Section 24(3-A) rather than Section 24(3). Once Section 24(3-A) is held to be applicable, the challenge to the impugned orders is not sustainable and these orders are not liable to be interfered with except to the limited extent of holding that the relevant provision in these cases is Section 24(3-A) and not Section 24(3). In this regard, the settled position is that an order is not vitiated merely because a wrong provision of law is cited therein provided the relevant statute contains an appropriate provision for such purpose. The writ petitions are disposed of by affirming the liability to pay interest, albeit in terms of Section 24(3-A) of the TNGST Act read with the relevant provision of the CST Act, where applicable. - Writ Petition Nos.34716 to 34719 of 2005 - - - Dated:- 3-11-2020 - Mr. A.P. Sahi, The Chief Justice And Mr. Justice Senthilkumar Ramamoorthy For the Petitioner (in all WPs) : Mr.N.Prasad For the Respondents (in all WPs) : Mr.Mohammed Shaffiq, Spl. Govt. Pleader Assisted by Ms.Dhana Madhri, Government Advocate COMM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the Court to Section 24(3) and pointed out that Section 24(3) is attracted only if any amount remains unpaid after the date specified for its payment as per sub-section (1) of Section 24. Section 24(1) provides for the payment of tax under two situations. The first situation being a case which is provided for under Sub- Section (2) of Section 13, namely, where returns are filed and taxes paid on the basis of self-assessment. The second situation relates to cases where the tax department makes an assessment. He further submitted that, in these cases, the admitted position is that the tax authorities did not undertake assessment. 6. Consequently, one should turn to Section 13(2) to determine as to whether any amount was payable by way of tax and, if so, on what date such amount became payable. By inviting our attention to Section 13(2), the learned counsel submitted that this provision applies when tax is paid in advance on self-assessment. Therefore, it provides for the filing of returns on the basis of actual turnover for each month and the payment of tax on the basis of such returns. Given the fact that returns are filed and tax is paid on the basis of self-assessment, he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uded that the price of sugar cannot be decided at least till the end of the sugar year. Consequently, the monthly return filed without showing the price fixed under Clause 5 A of the Sugarcane Order would be neither incorrect nor incomplete. The Hon'ble Supreme Court further held that self-assessment tax is payable only when the returns are filed and not prior to such date. On the facts of that case, the tax was paid along with the returns and prior to assessment. Hence, the Hon'ble Supreme Court concluded that interest was not payable as per Section 24(3) of the TNGST Act. 9. On the contrary, Mr.Mohammed Shaffiq submitted that Rule 18(2) of the TNGST Rules was amended in the year 1999. The amended Rule 18(2) categorically provides that a dealer whose taxable turnover in the preceding year is ₹ 200 crore or more is required to submit the returns to the assessing authority on or before the 12th of the succeeding calendar month. He further submitted that the undisputed factual position, in these cases, is that the turnover of the Petitioner herein during the relevant period was in excess of ₹ 200 crore in the relevant preceding year. Consequently, there is no d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e succeeding month.... 14. The undisputed position is that the Petitioner's turnover during the relevant preceding years was in excess of ₹ 200 crore. Therefore, as per Rule 18(2), the return was required to be filed on or before the 12th of the succeeding English calendar month. It is also admitted by the Petitioner that the returns were filed after the 12th of the relevant month but on or before the 20th thereof. This leads to the question as to whether the Petitioner is liable to pay interest on account of the belated filing of the returns. The contention of Mr.Prasad was that interest is not payable as per Section 24(3) because tax was paid along with the returns and there was no default. In order to test this contention, it is relevant to closely examine the text of Section 24(1), Section 24(3) and Section 13(2). Accordingly, the said provisions are set out below: Section 24 . Payment and recovery of tax:-- (1) Save as otherwise provided for in sub-section (2) of section 13, the tax assessed or has become payable under this Act from a dealer or person and any other amount due from him under this Act shall be paid in such manner and in such installments, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rescribed whichever is later. 16. When applied to the facts of these cases, the last date prescribed was the 12th of the succeeding calendar month, whereas the actual date of filing of the return was on various dates between the 13th and 20th. In E.I.D. Parry, the dealer was a producer of sugar which filed its returns within the period prescribed and paid tax on the basis of the minimum price of sugar and the taxable turnover arrived at on such basis and disclosed in such returns. Because sugar is a controlled commodity, price fixation was done subsequently based on a formula prescribed in the Sugarcane Order. The dealer paid tax on the difference between the minimum price and the subsequently determined price by filing revised returns subsequently but the tax department imposed interest on the belated payment of tax on such differential amount. In that factual context, the Supreme Court concluded that tax is required to be paid, under Section 13(2), on the basis of returns and since this was done, interest could not be imposed under Section 24(3) without an assessment by the tax authorities. In our view, this judgment does not advance the cause of the Petitioner. In the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eturn can be filed later than 20th of the succeeding month. The tax can be paid earlier to the filing of the return, but in either case it shall not be later than 20th of the succeeding month. The very same Division Bench while construing the very provision i.e. Section 13(2) and Rule 18 of the TNGST Act and Rules respectively has held that the liability to pay interest under Section 24(3) is automatic and absolute from the date on which it becomes due and the question of bona fide on the part of the dealer or the dealer voluntarily filing a revised return after the due date showing the actual turnover is not at all relevant for deciding the liability of defaulting dealer to pay interest under Section 24(3) of the Act in the case of GODREJ BOYCE MANUFACTURING CO. LTD. VS. JOINT COMMISSIONER OF COMMERCIAL TAXES IV AND OTHERS reported in (1995) 97 STC 44. Thus, Section 13(2) of the TNGST Act was construed in Ceat Limited, albeit in the context of Rule 18(2) as it stood before the amendment made by G.O. Ms. No.231/CT dated 10.11.1999, and, the words whichever is later , occurring therein were interpreted to mean that the tax should be paid prior to or along with the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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