1997 (9) TMI 580

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....s Tax Act, 1956. 2.. The petitioner is a registered dealer under the Central Sales Tax Act and liable to pay Central sales tax on carbon products. For the delay in payment of taxes due for the relevant period the Superintendent of Taxes by his order dated October 31, 1986 levied interest on the petitioner in exercise of its power under section 35-A of the Assam Sales Tax Act read with section 9(2) of the Central Sales Tax Act. 3.. The petitioner took up the matter before the Commissioner of Taxes by way of a revision and the Deputy Commissioner dismissed the revision application by his order dated June 13, 1992 and thereafter an application was moved for rectification of the order of assessment. The Deputy Commissioner on fresh consid....

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....n its competence in enacting section 35-A of the Act. Mr. Sarma further contended that imposition of taxes is a sovereign legislative function of the State and the State Legislature is fully competent to prescribe the amount of taxes as well as the rate of interest. Mr. Sarma also submitted that section 9(2-A) of the Central Sales Tax Act is fully applicable to the assessment, reassessment, collection and enforcement of the Central sales tax. The Act provides for imposition of penalty contained in the State Act as if the Central sales tax was a State sales tax under the Act were applicable under the Central, State sales tax laws also covers the realisation of interest. Though no specific provision was made in the Central sales tax law. Mr. ....

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....ore, no substantive provision in the Central Act which obliges the assessee to pay interest on delayed payments of Central sales tax. Now, the words 'charging or payment of interest' in section 9(2) occur in what may be called the latter part thereof. Section 9(2) authorises the sales tax authorities of a State to assess, reassess, collect and enforce payment of the Central sales tax payable by a dealer as if it was payable under the State Act; this is the first part of section 9(2). By the second part thereof, these authorities are empowered to exercise the powers they have under the State Act and the provisions of the State Act, including provisions relating to charging and payment of interest, apply accordingly. Having regard to what ....