https://www.taxtmi.com/caselaws?id=99890 Tax liability arose under the charging provisions, but tax was not treated as "due" for penalty purposes until it was ascertained by assessment or by the assessee under the return-based mechanism. A show-cause notice did not create a statutory obligation to pay, and a High Court stay order requiring returns did not substitute for the statutory process for determining liability. Penalty under section 16(1)(b) was therefore not sustainable because there was no failure to pay tax that had become due within the meaning of the Act. en-us Thu, 21 Jan 1965 00:00:00 +0530 Thu, 19 Dec 2013 09:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=99890 Tax liability arose under the charging provisions, but tax was not treated as "due" for penalty purposes until it was ascertained by assessment or by the assessee under the return-based mechanism. A show-cause notice did not create a statutory obligation to pay, and a High Court stay order requiring returns did not substitute for the statutory process for determining liability. Penalty under section 16(1)(b) was therefore not sustainable because there was no failure to pay tax that had become due within the meaning of the Act. Case-Laws VAT and Sales Tax Thu, 21 Jan 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=99890