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TMI Blog2021 (3) TMI 956X X X X Extracts X X X X X X X X Extracts X X X X ..... ly to non payment of tax which is declared under Section 7(1) of the Act. In other words, where the dealer admits the liability under Section 7(1) of the Act and in case commits a default, the provisions of Section 7(2) of the Act are applicable whereas Section 8(2) of the Act applies to the dealer in whose case an assessment has been made and the default is made in payment of tax so assessed. The subject matter pertains to Assessment Years 2001-02 to 2008-09. The dealer admittedly paid the taxes and the amount of penalty between the period from 03.03.2010 to 31.03.2011 i.e. prior to passing of the order dated 07.07.2012 and much prior to issuance of clarification by the Commissioner with regard to tax liability on 07.07.2014. Therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ine cutting tools, cutters, milling cutters, drill bits, etc. The Assessing Authority, for the Assessment Years 2001-02 to 2008-09, passed an order under Section 5(4) of the Act and levied tax in respect of commodity namely machinery parts, machine cutting tools, cutters, milling cutters, drill bits, etc. However, the Assessing Authority did not levy interest under Section 7(2) of the Act. Thereafter, a notice under Section 7(2) of the Act was issued to the dealer. The dealer submitted a reply and Assessing Authority passed an order under Section 7(2) of the Act on 07.07.2012 by which the interest as well as penalty was imposed on the dealer. Being aggrieved by the aforesaid order, the respondent filed first appeal before the Joint Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, the provisions of Section 7(2) of the Act are not applicable to the facts of the case. It is further submitted that the provisions of Section 8(2) of the Act apply to the fact situation of the case as it was a case where the tax was assessed but not paid. It is further submitted that before orders were passed levying the penalty on 07.07.2012, the dealer had paid the tax and the amount of penalty between the period from 03.03.2010 to 13.03.2011 and therefore, the Tribunal is justified in holding that the assessee is not liable to pay the interest and the penalty. In support of aforesaid submission, reliance has been placed on the decision in 'COMMISSIONER OF CENTRAL EXCISE, BANGALORE II COMMISSIONERATE Vs. ALSTHOM INSTRUME ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lated at the rate of two per cent per month from the date of such default or short payment to the date of payment of such tax. xxxx 8(2) If default is made in making payment in accordance with sub-section (1), (i) the whole of the amount outstanding on the date of default shall become immediately due and shall be a charge on the property of the person or persons liable to pay tax under this Act; (ii) the person or persons liable to pay the tax or any other amount due under this Act shall pay a interest equal to one and a quarter percent of the amount of tax or any other amount due remaining unpaid for each month after the expiry of the time specified under sub-section (1). From perusal of Section 7(1) of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mercial Taxes and seek for a clarification. The clarification that may be sought is with regard to the exigibility of the goods in question under the Act. Instead of resorting to this mode and the method, the petitioner had chosen to approach the High Court for a declaration. The petitioner, if he so desires can raise the said contention for the subsequent years before the assessing authority. The assessing authority will consider the same in accordance with law without being influenced by the orders passed by the High Court in writ petition Nos.19411 and 20091-101 of 2010. 7. In the light of the aforesaid decision of the Supreme Court passed on 12.09.2013, the Commissioner clarified the issue with regard to tax liability in res ..... X X X X Extracts X X X X X X X X Extracts X X X X
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