TaxTMI 
TaxTMI 
2008 (1) TMI 831
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....ded by this common order. The sole issue which has cropped up for consideration in these bunch of writ petitions is whether, in the facts and circumstances of cases at hand, the respondents were justified in imposing interest/penalty under section 26(4)(a), 26(4)(b) and 26(4)(c) of the M.P. Vanijya Kar Adhiniyam, 1994 (hereafter referred as "the Commercial Tax Act") [sections 17(3) and 45B(2), Madhya Pradesh General Sales Tax Act, 1958]. The brief facts are that the petitioner, a company registered under the Companies Act, 1956 established a new industrial unit, which went into trial production on June 26, 1987. In order to avail the facility of the Madhya Pradesh Deferment of Payment of Tax Rules, 1986, it moved an application before....
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....the facility of deferment of payment of tax under the Madhya Pradesh Deferment of Payment of Tax Rules, 1986. (2) The dealer has established a new industrial unit which has gone into commercial production on April 9, 1990 and as such he is eligible for availing of the facility of deferment of payment of tax under the Madhya Pradesh Deferment of Payment of Tax Rules, 1986. (3) The dealer has opted for the scheme of deferment from payment of tax under the Madhya Pradesh Deferment of Payment of Tax Rules, 1986. (4) The date of commencement of commercial production of the unit is April 9, 1990 and the unit is eligible for availing of the facility of deferment of payment of tax under the Madhya Pradesh Deferment of Payment of Tax Rules,....
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.... M.T. (five thousand M.T.) with effect from April 1, 1992 to April 8, 1992 as per 119th SLC meeting dated January 28, 1999 decision. 2. Bye-products Note: - The facility of deferment of payment of tax shall be availed only in respect of tax on sales of above products obtained during the process of manufacture. nil Production up to 125 per cent of licence/registered capacity is permissible under the provision of IDR Act and no revised licence is required for this purpose. 6. This certificate is subject to the general conditions specified in paragraph 2 of the Government of Madhya Pradesh Separate Revenue Department Notification No. A-3-11-86(74)-STV dated October 16, 1986 and shall be liable to be cancelled for breach of any of t....
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....e company was assessed of its liability to pay tax, no eligibility certificate was available and the petitioner was duty-bound to pay the tax as per return and since the same was not paid the levy of penalty and interest was just and proper, though it is not denied by the learned Government Advocate that the eligibility certificate issued on December 6, 2005 was effective from the date commencing from April 9, 1990 and ending with April 8, 1999. Heard the learned counsel for the parties. To appreciate the controversy in its right perspective it would be worthwhile to note the provisions contained under section 26(4)(a), (b) and (c): "Section 26.- (4) (a) If a dealer required to file return under sub-section (1)- (i) fails wit....
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....he provisions of sub-section (2), the Commissioner may after giving the dealer a reasonable opportunity of being heard, direct him to pay, in addition to any tax payable or paid by him by way of penalty a sum not exceeding fifty rupees for each occasion of default subject to a maximum of five hundred rupees in each case." It is thus clear that penalty/interest could be levied if the dealer fails to furnish returns/revised return or pay tax due as per return in the prescribed manner and/or in time. An exception however is carved out to the extent that the failure must be without sufficient cause. Thus under the statute it is mens rea not to file return/pay tax without there being a bona fide reason which forms the bedrock for le....