TaxTMI 
TaxTMI 
2009 (8) TMI 1104
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....-free Sales Taxes Deferral Scheme was extended to the expansion (Part I) as well as to the starting of new industries (Part II). In other words, in other areas also where this scheme was not in vogue hitherto, the deferral of sales tax for the industries in these areas will be for five years, subject to a maximum of 60 per cent of the total investment made in fixed assets in the case of new investment and 50 per cent of the additional investment in fixed assets made in the case of expansion/ diversification of the existing industries. As per the G.O. Ms. No. 48, Commercial Taxes and Religious Endowments Centre Department, dated February 11, 1994, the Government has directed that "the amount of sales tax or purchase tax (on sugarcane) def....
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....ject to the condition stated therein. According to the petitioner, the following are the particulars about the facilities availed of by the petitioner under the Interest-free Sales Tax Scheme: Deferral period Financial year of re-payment IFSTL 1998-1999 2003-2004 60% of the value of the gross fixed assets The petitioner had been demanding the respondents about the particulars of IFST loan due and the same was not furnished to him and without furnishing the particulars of the loan dues, the first respondent caused the publication in the Virudhu Nagar District Gazette dated October 26, 2005 for the attachment of the factory premises of the petitioner for sale. Therefore, the petitioner filed W.P. (MD) No. 11714 of 2005 befor....
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....nd as per the G.O. Ms. No. 48, dated February 11, 1999, it has been specifically stated that under the Interest-free Sale Tax Deferral Scheme, the amount of sales tax will be treated as deemed to have been paid and the identical amount treated as Government loan extended to the assessee subject to the condition of an agreement executed by the assessee to that effect that the amount is deemed to have been paid and treated as interest-free loan repayable to the Government by the assessee. Therefore, it was contended by the learned counsel appearing for the petitioner that the amount ceased to be the sales tax and it has become a loan payable by the assessee to the Government and therefore, it cannot be treated as arrears of land revenue an....
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.... amount is also liable for 24 per cent interest per annum. Thus, it is seen from the said clause, in the event of default in repayment of Government loan, the same shall be recoverable in such manner as specified under the Revenue Recovery Act, as per section 24(2) and section 26 of the TNGST Act. Sections 26 and 24(4) of the TNGST Act are the relevant sections. Section 26(6) of the TNGST Act enables authority to recover the amount as if it were an arrear of land revenue. As per section 24(2) of the Act, any amount due shall have priority over all other claims against the property of the said dealer and can be recovered as land revenue. Therefore, even though under G.O. Ms. No. 48 the deferred sales tax will be treated as Government l....