TaxTMI 
TaxTMI 
TaxTMI 
1958 (8) TMI 36
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....-13-6 out of its total claim of Rs. 11,472-3-0 be treated as preferential claim under sub-section (1)(a) of section 530 of the Indian Companies Act, 1956. He has expressed the opinion that the entire claim of the department oug00ht to be treated as an ordinary debt due to a creditor from the company and to be included in the creditors' list but not as a preferential claim. The Superintendent of Commercial Taxes, Patna Urban Circle, has, on the other hand, filed an application supported by an affidavit. In this application, he has stated that the official liquidator has taken a view which is erroneous in law, that a sum of Rs. 9,809-13-0 became due and payable within 12 months next before the relevant date, i.e., the 25th September, 1956, an....
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....of the dues of the department amounting to Rs. 7,934-1-0 as preferential claim. Mr. Varma has argued that an amount becomes due and payable to the sales tax department only when it is ascertained, Page No: 580 quantified and notified. He has relied upon the decision in In the matter of Recols (India) Ltd.[1953] 4 S.T.C. 271; 57 C.W.N. 468. in support of his contention. His submission is that the final demand notice for the balance of taxes in respect of each of the years in question was issued well within twelve months next before the "relevant date" which was the 25th September, 1956, and hence the entire amount of Rs. 7,934-1-0 must be treated as preferential claim. On the other hand, Mr. Shreenath Singh, who has appeared on behalf of the....
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....e of the winding up order in a case where an order for compulsory winding up was passed and no voluntary winding up had commenced previously. It is manifest from section 530 (1) (a) of the new Act that a claim has to be paid in priority to other debts if(i) the claim was due on the relevant date, and (ii) the claim became "due and payable" within a period of twleve months next before the relevant date. Mr. Shreenath Singh has not disputed that the entire amount of Rs. 7,934-1-0 was due from the company to the sales tax department on the 25th September, 1956. The first requirement is thus fulfilled. Mr. Shreenath Singh is undoubtedly right when he says that the words "due" and "payable" are not synonymous. As soon as one person owes a certai....
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....ment of sales tax. Section 8 states that the State Government may prescribe the points in the series of sales by successive dealers at which taxation can be made. A perual of sections 4 to 8 makes it clear that a dealer may easily compute the tax which he is liable to pay for any sale as soon as he makes it. Section 12 of the Sales Tax Act provides for submission of returns and revised returns by a dealer. Under rule 22 of the rules framed by the State Government in exercise of the powers conferred upon them under section 31 of the Sales Tax Act, every dealer has to file quarterly returns within a calendar month from the expiry of the quarter and a consolidated annual return within a calendar month from the expiry of the year, unless the Co....
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.... In the matter of Recols (India) Ltd.[1953] 4 S.T.C. 271; 57 C.W.N. 468., Chakravartti, C.J., does not appear to have interpreted the words "due" and "payable" separately. But Sinha, J., interpreted the two words separately. The provisions of the Bengal Finance (Sales Tax) Act, 1941, were under consideration in that case but it appears that those provisions were somewhat similar to the provisions of the Act under consideration in this case. The decision of Sinha, J., as to when sales tax becomes due appears to support the view which I have expressed. The next question is when sales tax becomes payable. Section 14 of the Act provides for the manner in which and the intervals at which the tax has to be paid. Sub-sections (2) and (3) lay down ....