2003 (2) TMI 452

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....ax showing a lesser rate in the return. 2.. The assessee is a dealer in cattle feeds. For the assessment year 1998-99, the assessee filed returns disclosing the rate of tax on cattle feeds only at the rate of 3 percent, whereas, the rate of tax for cattle feeds was fixed at 4 per cent, with effect from April 1, 1998, as per the Finance Act, 1998. The assessing authority did not object to the same until the final assessment for the year 1998-99 is completed as per order dated April 3, 2001. In the assessment order, the assessing authority has levied interest of Rs. 9,926. Being aggrieved by the said levy, the assessee filed an appeal before the Appellate Assistant Commissioner, Commercial Taxes, Kannur, who by his order dated November 13,....

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.... turnover being filed by way of self-assessment or else on an order of assessment being made. The Supreme Court also referred to the provisions of Rule 21(7A) of the KGST Rules, and observed that, no doubt the said rule casts an obligation on an assessee to file monthly return disclosing the total turnover and taxable turnover accompanied by proof of payment of the amount of tax within a specified time. It was also noted that, in that case, the assessee did not file the return, and observed that the failure to file return of taxable turnover may render the assessee liable for any other consequences or penal action as provided by law, but cannot attract the liability for payment of penal interest under sub-section (3) of section 23 of the Ac....

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....sub-section (2) of section 7 which was involved in that case, and observations extracted above clearly applies to the present case also. 5.. In the instant case, as we have already noted, the assessee had filed the return, but showed the rate of tax only at 3 per cent. This is the self-assessment made by the assessee. If the same is not acceptable to the assessing authority, he could have invoked the provisions of rule 21(9) of the Rules, passed an order and could have raised the demand of the tax due. In such circumstances, it is only when the assessee fails to remit the tax so demanded within the time stipulated therein, the liability to penal interest arises. In the present case, the order of assessment has been issued only on April 3....