Incomplete sales tax return attracts interest despite interim court restraint on payment, the Tribunal held.

Interest under section 10A of the Bengal Finance (Sales Tax) Act, 1941 was held payable where the dealer filed returns that did not disclose the full taxable turnover. The Tribunal applied the governing Supreme Court principle that a return under section 10 must be full and correct, and that an incomplete return cannot qualify as a valid return for section 10A purposes. Interim restraint by the High Court on payment did not displace the statutory consequence of failing to furnish a complete return. The interest demand was therefore upheld and the challenge to the assessment and appellate orders failed.

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Issues: Whether interest under section 10A of the Bengal Finance (Sales Tax) Act, 1941 was exigible where the dealer filed returns showing only part of the turnover tax and payment of the balance was restrained by interim orders.

Analysis: The Tribunal applied the controlling Supreme Court ruling that a return under section 10 must be a full and correct return, and that a return which omits taxable turnover cannot be treated as a return referred to in section 10 for the purposes of section 10A. The liability to interest arises when the statutory return is not duly furnished and accrues in accordance with the scheme of section 10A, even where the dealer retained the tax during the period covered by interim protection. The Tribunal also noted that interim restraint by the High Court did not alter the statutory consequence flowing from non-furnishing of a complete return.

Conclusion: Interest under section 10A was validly charged and the challenge to the impugned assessment and appellate orders failed.

Final Conclusion: The demand of interest was upheld, and the application was dismissed.

Ratio Decidendi: A dealer who does not file a full and correct return of taxable turnover cannot avoid liability to interest under section 10A merely because payment of tax was restrained by interim court orders.

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