Interest on delayed turnover tax depends on compliance with extended filing and payment dates, with default cases remitted for reassessment.

FL3/FL11 licensees were treated differently depending on compliance with the prescribed extended dates for filing returns and remitting turnover tax. Where the return was filed by 31.03.2022 and turnover tax was paid on or before 30.04.2022, no interest was payable for the relevant period. Where the return was not filed by 31.03.2022 and the tax was not paid by 30.04.2022, interest continued to run from 01.05.2022 until payment, including for delay in filing the return. The impugned assessment orders were set aside and the matters were remitted for fresh assessment on that basis.

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Issues: Whether FL3/FL11 licensees were liable to pay interest for delayed remittance of turnover tax for the relevant financial years, and whether the impugned assessment orders required to be quashed and the matters remitted for fresh assessment.

Analysis: The writ petitions were decided by adopting the reasoning and operative directions in the connected judgment. The relief turned on whether the returns had been filed and the turnover tax had been cleared within the stipulated dates. Where returns were filed by 31.03.2022 and the turnover tax was paid on or before 30.04.2022, no interest was payable for the specified periods. Where the return had not been filed by 31.03.2022 and the turnover tax had not been paid by 30.04.2022, interest remained payable from 01.05.2022 till payment, including for delay in filing the returns. The impugned orders were set aside and the matters were sent back for fresh assessment in accordance with these directions.

Conclusion: The petitions were allowed in part. No interest was payable in compliant cases, interest was upheld in default cases, the impugned orders were quashed, and the matters were remitted for fresh assessment.

Ratio Decidendi: Interest on delayed tax payment is not leviable where the tax and return are furnished within the prescribed extended dates, but liability continues where return filing or payment remains in default, warranting fresh assessment on that basis.

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