TaxTMI 
TaxTMI 
2011 (8) TMI 1018
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....ession that chemicals purchased and used in the execution of the dyeing contract were exempted from tax under section 3B(2)(b) of the Tamil Nadu General Sales Tax Act, 1959. The tax liability on the cost of consumables like dyes and chemicals used in execution of dyeing was a debatable one involving question of law, there was no settled law on this issue and therefore, the assessing authorities kept the assessment pending 1986-87 onwards. The Tamil Nadu Taxation Special Tribunal in the case of Perumal Colour Company v. State of Tamil Nadu reported in [1997] 105 STC 223 (TNTST) remanded the matters relating to the dyeing contract to the respective assessing officers with the direction to demonstrate and to determine whether any transfer of ....
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....The assessee pointed out that when the liability itself was in doubt originally and the exemption is claimed, on the remand order made by the Special Tribunal the demonstration was conducted and immediately thereafterwards in all good faith the assessee paid the tax to the extent of 50 per cent of the dyes used in the dyeing contract, the question of levying penal interest did not arise. The Joint Commissioner however rejected the said contention and pointed out that the assessee had not paid the tax legally due to the State in time and in accordance with the provisions of the Act. Since the provisions relating to the levy of interest under section 24(3) of the Act is an automatic for the belated payment, rightly the penalty was levied by t....
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....return is filed, admitting the liability, the payment is treated as to a liability date backs to the date when the payment of tax ought to have been made. When once there is default in the payment of tax in accordance with the provisions of the Act, the assessee becomes defaulter, thus attracting penal consequences as given under section 24 of the Act. Section 24(3) is a specific provision on levy of penal interest on the belated payment of tax. Wherever the assessee defaults in meeting the admitted tax liability within the statutory period, interest is leviable and is an automatic one. Consistently, the view as regards levy of interest is that it is an automatic levy and there is no question of discretion reserved in the matter of levy of....
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....he same in the monthly return did not arise. Referring to section 13(2) of the Tamil Nadu General Sales Tax Act, 1959, the apex court pointed out that the tax payable under section 13(2), would be as per the determination made by the officer. The apex court pointed out that on the facts of the case, it was clear that the assessee had paid the tax as per the monthly return and there was no assessment, even provisional, by the assessing authority prior to the final assessment made after the revised returns had been filed. Thus, on the facts therein, the apex court held that there was no provision under the Act which permits charging of interest unless and until there has been a provisional assessment and a notice of demand prescribing the per....