2015 (10) TMI 1923

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....to the Assessment Years 2000-2001 and 2001-2002. Earlier, apparently, under Section 7D of the Act, the Circular provided for composition of trade tax if the contractor pays the amount representing one per cent of the total contract receipts. This is, however, subject to the condition that, if, in any year, the inter-state purchase of raw material exceeded five per cent of the total contract amount, then, in respect of the amount in excess of that 5 per cent, the assessee would have to pay tax by filing return on the entire amount. There is no dispute that, during the Assessment Years 2000-2001 and 2001-2002, as it turned out, the inter-state purchase of the revisionist exceeded five per cent of the contract amount. However, it so happened t....

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....ore 28.10.2003, when the provision of 3% tax came into existence on 28.10.2003 and the revisionist has deposited 1% tax as per the earlier Samadhan Yojna? b) Whether the revisionist can be directed to pay interest on remaining tax of 2%, when the Circular dated 28.10.2003 bringing the provision of tax of 3% came in existence on 28.10.2003 and mainly when the said Circular does not speaks of charging interest for the period prior to 28.10.2003? c) Whether the Trade Tax Tribunal and the Assessing Authority can be said to be justified in imposing interest on remaining tax of 2% saying that the same was not deposited, when actually the tax of 3% came into existence on 28.10.2003 and thus could not have been presumed to have come into forc....

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....s paid in place of one per cent, the regular provision of the assessment would not be applicable, if the inter-state purchase exceeded more than five per cent of the contract amount. Therefore, even if the inter-state purchase of the raw material made by the revisionist exceeded five per cent, if the revisionist exercised the option to pay three per cent composition fee, then, that would put an end his tax liability for the period. Without there being tax liability, there cannot be a question of levying interest. Therefore, in place of the tax, which he would have had to pay under the earlier scheme, in view of his inter-state purchase having exceeded five per cent, as he had opted to pay three per cent and which he could possibly do only a....