TaxTMI 
TaxTMI 
2015 (11) TMI 160
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....ht and even fabricated electronic telephone transmission and receiving equipment component devices, instruments etc. 2. The State Government promulgated U.P. Tax on Entry of Goods Into Local Areas Act, 2007 (hereinafter referred to as the "U.P. Act of 2007"). The petitioner challenged levy of Entry Tax under the provisions of the U.P. Act of 2007. A Division Bench of this Court by judgment dated 23.12.2001 upheld the vires of the Act against which the petitioner preferred a Special Leave Petition in which an interim order was passed by the Supreme Court staying the operation of the judgment of the High Court subject to the condition that the petitioner would deposit 50% of the accrued tax liability/arrears under the U.P. Act of 2007 and fu....
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....22 Crores and odd in pursuance to the earlier assessment order. 5. During the pendency of the appeal the Deputy Commissioner (Assessment), Commercial Tax, Khand 10, Meerut, respondent No.3, issued a notice dated 4.7.2015 directing the petitioner to pay an amount of Rs. 26,93,90,392/- towards interest. The petitioner moved a representation before the Deputy Commissioner praying that the details of computation of interest be provided. This representation remained pending and, on the other hand, the respondents proceeded to attach the bank account of the petitioner. This action of the respondent led the petitioner to file Writ Tax No.631 of 2015, which was disposed of with the direction to the Deputy Commissioner (Assessment) to decide the pe....
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....authority to file a short counter affidavit providing the calculation of interest. A short counter affidavit has been filed enclosing the chart by which calculation has been made, which is extracted here under:- Sl. No. Year Date of order Tax imposed Tax Deposited Balance tax due Balance amount of interest due 1 2001-2002 10-02-2015 16000000-00 11354608-00 4645392-00 33373100-00 2 2003-2004 10-02-2015 11000000-00 5500000-00 5500000-00 11537499-00 3 2004-2005 10-02-2015 68000000-00 34000000-00 34000000-00 107218344-00 4 2005-2006 10-02-2015 113000000-00 56500000-00 56500000-00 146782499-00 5 2006-2007 10-02-2015 195000000-00 97500000-00 97500000-00 196032354-00 Total 403000000-00 2....
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....as the case may be, the turnover of purchases, or of both as disclosed in the accounts maintained by the dealer, or admitted by him in any return or proceeding under this Act, whichever is greater, or, if no accounts are maintained, then according to the estimate of the dealer, and include the amount payable under Section 3-B or sub-section (6) of Section 4-B. ... 8(1-B) If the tax, other than the tax referred to in sub-section(1), assessed by any Assessing Authority is not paid within the period specified in the notice of assessment and demand referred to in sub-section (1-A), simple interest at the rate of [one percent] per mensem on the unpaid amount calculated from the date of expiration of the period specified in such notice shall ....
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.... when interest on tax becomes payable. The Supreme Court after considering the provision of Section 8(1) and 8(1B) of the Act held, that once it is confirmed that the tax is payable under the Act, the same becomes payable from the date when it became due and not from the date when the judicial verdict was pronounced. The Supreme Court, held that once it is confirmed by the Court that the tax is payable under the Act, it would be covered within the definition of the term "tax admittedly payable" as defined in the explanation to Section 8(1) of the Act and, in case, the tax has not been paid, then the same becomes payable along with interest as mentioned in Section 8(1) of the Act. The Supreme Court further held that the provision of Section ....
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....hinery" and was, therefore, not liable to pay any tax. On the other hand the department contends that the petitioner had challenged the vires of the Act of 2007. The validity of the entry tax was upheld by the High Court and consequently, the petitioner was required to deposit the entry tax along with returns which was legally due and payable. Since the same was not deposited, the tax would be deemed to be the admitted tax in view of Section 8(1) of the Act read with Section 33 of the U.P. VAT Act. 14. Having heard the learned counsel for the parties and having perused the impugned order as well as the assessment orders, we find that even though the vires of the Act of 2007 had been upheld, the petitioner nonetheless disputed the liability....