2009 (7) TMI 1182

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..... 25,89,922 and Rs. 25,73,12,945 for the assessment year 2002-03. In the assessment order dated February 26, 2004, there was no balance payable by the assessee as the tax due was paid in full and the balance was shown to be nil. By the notice dated April 27, 2004, the writ petitioner was informed that they had paid the additional tax dues belatedly for the assessment year 2002-03 and hence, a demand was made for payment of penal interest at 24 per cent, i.e., a sum of Rs. 1,04,971. The writ petitioner filed the writ petition raising several grounds. The learned single judge Reported as Kone Elevator Pvt. Ltd. v. Commercial Tax Officer [2008] 18 VST 394 (Mad). dismissed the writ petition and hence the appeal. According to the learned coun....

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....x cannot be levied unless the assessment or provisional assessment is made and notice of demand is issued, and for this purpose, he relied on E.I.D. Parry (India) Ltd. v. Assistant Commissioner of Commercial Taxes [2005] 141 STC 12 (SC). The learned Government Advocate for the Revenue submitted that since the amendment by which penal interest for belated payment of additional sales tax has been introduced by the amendment in Act 14 of 2005 retrospectively, the impugned action cannot be quashed. Learned Government Advocate submits that every month, the additional sales tax becomes due and if it is not paid, it is an amount remaining unpaid and there is no fresh determination and therefore, the levy of penal interest on delayed payment is ....

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....ditional Sales Tax Act, 1970 read as follows: "Amendment of section 2. - In section 2 of the Tamil Nadu Additional Sales Tax Act, 1970 (Tamil Nadu Act 14 of 1970) (hereinafter referred to as 'the principal Act'), in sub-section (1), - (1) after clause (aa), the following clause shall be inserted, namely: - '(aaa) on any amount of additional tax or penalty imposed by the assessing authority remaining unpaid under this Act, the dealer referred to in clause (aa) shall pay interest as specified in sub-section (3) of section 24 of the said Act, in addition to such amount of additional tax or penalty due.' (2) for clause (b), the following clause shall be substituted, namely: - '(b) The provisions of the said Act s....