Appellant liable for sales tax interest under Section 24(3) of Tamil Nadu GST Act.

The court held that the appellant is liable for interest on the sales tax deferral amount as per Section 24(3) of the Tamil Nadu General Sales Tax Act, 1959. Interest is payable from 06.02.2013 to 25.04.2015. The appellant may seek the benefit of a Government Order for deferral concessions. The appellant is granted three months to remit the interest. The judgment is based on the specific circumstances of the case and is not a precedent for determining repayment due dates.

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Issues Involved:
1. Liability for payment of interest on the sales tax deferral amount.
2. Date from which the interest should be calculated.
3. Applicability of Government Orders for deferral concessions.
4. Right to waiver of interest based on the peculiar facts of the case.

Detailed Analysis:

1. Liability for Payment of Interest on the Sales Tax Deferral Amount:
The primary issue is whether the appellant is liable for payment of interest on the sales tax deferral amount availed under the Tamil Nadu General Sales Tax Act, 1959. The court held that the appellant is liable for interest as per Section 24(3) of the Act. The deferral agreement stated that in case of default, the appellant must repay the amount with interest. The learned Single Judge also held that there was no legal basis for a complete waiver of interest.

2. Date from Which the Interest Should be Calculated:
The court had to determine the date from which the interest should be calculated. It was noted that the deferral agreement had not been canceled by the Department, despite the appellant defaulting on the conditions. The court emphasized that a written order of cancellation is mandated by Clause 11 of the agreement, and principles of natural justice require a show cause notice to be issued. The appellant was declared a sick industrial company by the BIFR, and the net worth turned positive on 05.02.2013. The court concluded that the repayment became due on 06.02.2013, and the appellant cleared the dues on 25.04.2015. Therefore, the interest is payable from 06.02.2013 to 25.04.2015.

3. Applicability of Government Orders for Deferral Concessions:
The appellant sought to benefit from G.O.Ms.No.1076 Industries (MIGI) dated 04.10.1988, which grants deferral from payment of sales tax for a period of three years from the date of actual revival or from the date the BIFR declared the unit as sick. The court noted that the applicability of this Government Order is discretionary and several factors need to be considered. The court left it open for the appellant to approach the Government for this benefit.

4. Right to Waiver of Interest Based on the Peculiar Facts of the Case:
The appellant argued that no interest or penalty should be charged for the period when it was under the BIFR referral, as they were not allowed to make payments per BIFR guidelines. The court recognized the peculiar circumstances of the case, noting that the due date for repayment could not have occurred between 01.08.2003 (when the appellant was referred to BIFR) and 05.02.2013 (when the appellant was de-registered by BIFR). The court held that the appellant is liable for interest only from 06.02.2013 to 25.04.2015.

Conclusion:
The writ appeal is partly allowed, modifying the order and direction issued in the writ petition. The appellant is liable for interest from 06.02.2013 to 25.04.2015. The first respondent is to verify the computation of interest and issue a demand. The appellant is granted three months to remit the interest from the date the attachment is lifted. The appellant may make a representation to the Government to seek the benefit of G.O.Ms.No.1076 Industries (MIGI) dated 04.10.1988. This judgment is rendered on the peculiar facts and circumstances of the case and is not to be treated as a precedent for determining the date of repayment due. No costs.

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