2019 (7) TMI 452 - HC - VAT and Sales Tax

Court orders payment, remission consideration, detailed directions for fair process under relevant Acts.

M/s. Visoka Engineering Pvt. Ltd. Versus The Commissioner of Commercial Taxes, The Joint Commissioner (ST), The Assistant Commissioner (ST)

The Court ordered the petitioner to make a specified payment within a given timeframe and directed the Government to consider the remission application ... Waiver of interest on belated payment of tax liability - CST Act - TNGST Act - HELD THAT:- The power to consider the representation for remission is vested with the Government under Section 31 of TNVAT Act. 'Government' is a term of art qua TNVAT Act as the same has been defined in Section 2(22) of TNVAT Act. There is no dispute that Government, as defined in Section 2(22) of TNVAT Act, has not been arrayed as a respondent herein. This Court deems it appropriate to direct the State counsel to communicate this order to the Government, within the meaning of Section 2(22) of TNVAT Act, for considering the remission application of the writ petitioner being remission application dated 19.06.2019. Writ petitioner shall pay a sum of ₹ 10,00,000/- towards interest due within eight weeks from the date of receipt of a copy of this order - If the writ petitioner pays the aforesaid sum within the aforesaid time frame, the Government shall consider the writ petitioner's application for remission of interest, being application dated 19.06.2019 and dispose of the same in a manner known to law within eights weeks from the date of payment of aforesaid sum albeit within the aforesaid time frame. Petition disposed off. Issues:1. Payment of interest on belated tax liability under CST Act and TNGST Act.2. Waiver of interest sought by the writ petitioner.3. Interpretation of Section 31 of TNVAT Act regarding remission of tax, penalty, interest, or fee.4. Imposition of conditions by the Court for considering the representation for remission.Analysis:1. The judgment addresses the issue of payment of interest on belated tax liability under both the Central Sales Tax Act, 1956 (CST Act) and the Tamil Nadu General Sales Tax Act (TNGST Act). It is acknowledged that both Acts provide for the imposition of interest for delayed payment of tax liabilities.2. The writ petitioner sought a waiver of interest on the belated tax payment. The Court noted that the first writ petition related to CST Act with a liability of Rs. 42,127, which the petitioner agreed to pay within a fortnight. Failure to pay within the stipulated time would revive the impugned order.3. The second writ petition pertained to the TNGST Act, with a substantial interest amount of Rs. 39,98,914. The petitioner had made a representation seeking waiver, citing Section 31 of the Tamil Nadu Value Added Tax Act, 2006 (TNVAT Act). The Court considered the power of the Government to remit tax, penalty, interest, or fee under this provision.4. The Court imposed a condition for the Government to consider the representation for remission. The petitioner was directed to pay Rs. 10,00,000 within eight weeks, representing 25% of the total interest due. The Court emphasized that the power to grant remission rested with the Government as defined in the TNVAT Act, and instructed the State counsel to communicate the order to the Government for further action.In conclusion, the Court ordered the petitioner to make the specified payment within the given timeframe and directed the Government to consider the remission application upon compliance. The judgment provided detailed directions and conditions for the resolution of the issues raised in the writ petitions, ensuring a fair and transparent process while upholding the legal provisions under the relevant Acts.