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TMI Blog2022 (2) TMI 1005X X X X Extracts X X X X X X X X Extracts X X X X ..... ner was held liable to pay a gross amount of ₹ 3,92,633/- as tax due for the Assessment Year 2009-2010 and after adjusting an amount of ₹ 1,76,385/- already paid, the balance tax payable by the petitioner was determined as ₹ 2,16,248/-. The petitioner has also paid the said amount on 24.03.2016. Whether the petitioner can be absolved from payment of interest on the delayed payment of differential tax paid for the period from the date on which the tax was originally to be paid and the actual date of payment of the differential tax on 24.03.2016? - HELD THAT:- In this case, there was a deemed assessment in terms of proviso to Section 22(2) of the TNVAT Act, 2006. Therefore, the notice was issued to revise the self asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er has challenged the impugned proceedings of the respondent attaching bank account of the petitioner pursuant to the re-assessment order passed under Section 27 of the Tamil Nadu Value Added Tax Act, 2006 (hereinafter referred to as TNVAT Act for brevity) for the Assessment Year 2009-2010. Originally, while filing returns under Section 21 of the TNVAT Act, the petitioner had disclosed the taxable turnover of ₹ 44,09,617/- and had paid the proportionate tax of ₹ 1,76,385/-. 2. In terms of Section 22 of the TNVAT Act, there was a deemed assessment. Thereafter, a notice was issued to the petitioner on 18.01.2016, wherein, the taxable turnover of the petitioner was sought to be increased to ₹ 98,15,837/- and a proposal w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t cannot be countenanced in the light of Section 42(3) of the TNVAT Act. He submits that the differential tax was also paid by the petitioner within a period of thirty days from the date of re-assessment under Section 27 of the TNVAT Act and therefore the petitioner cannot be saddled with further interest liability. 5. Opposing the prayer in this writ petition, the learned Government Advocate appearing for the respondent submits that the Writ Petition is liable to be dismissed as the petitioner has an alternate remedy by way of appeal under Section 51 of the TNVAT Act and therefore, the petitioner should be relegate to approach the Appellate Commissioner. The learned Government Advocate further submits that even otherwise, the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 and after adjusting an amount of ₹ 1,76,385/- already paid, the balance tax payable by the petitioner was determined as ₹ 2,16,248/-. The petitioner has also paid the said amount on 24.03.2016. 9. Payment of interest is consequential. A reference may be made to Section 42 of the TNVAT Act, 2006. Section 42 of the Tamil Nadu Value Added Tax Act, 2006 reads as under:- 42. Payment and Recovery of tax, penalty, etc- (1) Save as otherwise provided for in section 21, 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 instalments, if any, and within such time as may be specified in the notice of assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unpaid after the date specified for its payment as referred to in sub-section (1) or in the order permitting payment in instalments, the dealer or person shall pay, in addition to the amount due, [interest at the rate of two percent] per month of such amount for the entire period of default: Provided that if the amount remaining unpaid is less than one hundred rupees and the period of default is not more than a month, no interest shall be paid: Provided further that where a dealer or person has preferred an appeal or revision against any order of assessment or revision of assessment under this Act, the interest payable under this sub-section, in respect of the amount in dispute in the appeal or revision, shall be postponed till th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod of default. 14. The language in Section 42(3) of the TNVAT Act, 2006 makes it very clear that the interest is payable for the entire period of default. The default period of the petitioner started from the date on which the petitioner was originally required to pay tax on his turnover in the monthly returns under Section 21 of the TNVAT Act, 2006. 15. This is a case where there was a suppression of taxable turnover by the petitioner in the returns filed under Section 21 of the TNVAT Act, 2006 read with Rule 7 of the TNVAT Rules, 2007. Since the petitioner failed to correctly declare the taxable turnover and paid the differential tax only after the proceeding was initiated vide notice dated 18.01.2016 against the petitioner under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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