2007 (11) TMI 583

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.... petitioner is challenging exhibit P15 order under which the Commissioner of Commercial Taxes has confirmed interest levied for belated payment of tax. According to the petitioner, the levy of interest is illegal and unauthorised. He has also relied on decision of the Supreme Court in Maruti Wire Industries Pvt. Ltd. v. Sales Tax Officer [2001] 122 STC 410 and that of this court in P.K. Damodaran ....

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....r the petitioner's objection, the scope of the relevant sections are to be gone into and for easy reference the relevant sub-clauses of section 23 are extracted hereunder: "Section 23. (3) If the tax or any other amount assessed or due under this Act is not paid by any dealer or other person within the time prescribed therefor, in this Act or in any rule made thereunder and in other cases w....

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....ing to the period to which such turnover relates." While section 23(3) provides for interest for belated payment of tax due under the Act whether assessed or demanded tax, sub-section (3A) of section 23 provides that where any dealer fails to include turnover of his business in his return filed or when any turnover escaped assessment, interest under sub-section (3) shall accrue on the tax on su....

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.... paid the tax thereon. Failure to do so is also a situation covered by sub-section (3A) of section 23 because on account of misclassification, escapement of self-assessment and payment of tax on taxable turnover happens which attracts interest under the said section. The decision of the Supreme Court referred to above does not apply to this case because the decision was rendered prior to introduct....