1988 (10) TMI 65

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..... lties and the assessee had approached the Asstt. Commissioner of Sales Tax to allow it to pay the sales Tax in instalments and the prayer of the assessee was granted by the Asstt. Commissioner of Sales Tax. The payment made having regard to the provisions of sec. 47(4A) of the Gujarat Sales Tax Act was in the nature of a compensatory payment and there was no infraction of law, and the same should have been allowed by the CIT(A) as admissible deduction. The Tribunal in the case of Bisleri India (P.) Ltd. 1 SOT 673 (sic) has held that such payments were compensatory in nature and, therefore, the claim for deduction was unexceptionable. The CIT(A) was in error in observing that provisions of sec. 36(3) of Bombay Sales Tax Act were in pari mate .....

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..... hmi Sugar Mills Co. on which lot of reliance has been placed by the learned counsel of the assessee and had opined that the decision of the Supreme Court would not be applicable to the payment made under sec. 36(3) of the Bombay Sales Tax Act. It is further submitted that it would be futile for the assessee to argue that provisions of sec. 47(4A) of Gujarat Sales Tax Act and sec. 36(3) of Bombay Sales Tax Act are not in pari materia merely because of the absence of the words "by way of penalty" in the relevant provisions of the Gujarat Act. The provisions are identical in their import and the decision of the jurisdictional High Court would be binding on the Tribunal. 4. We have heard the parties to the dispute, in our opinion, the claim of .....

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..... which interest was demanded and paid by the assessee is different in its content. For the sake of convenience the same is produced : Sec. 47(4A) : If a dealer does not pay any amount of tax within the time prescribed for its payment under sub-section (1), (2) or (3) on or before the date specified in a notice issued under sub-section (4) in respect of the amount of tax falling under sub-clause (ii) of clause (a) thereof there shall be paid by such dealer for the period commencing on the date of expiry of the aforesaid prescribed time or the specified date and ending on the date of payment of the amount of tax, simple interest at the rate of twenty-four per cent per annum on the amount of tax not so paid or any less amount thereof remaining .....

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