TaxTMI 
TaxTMI 
1994 (11) TMI 429
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....Rs. 18,28,627.25. It also assessed an amount of Rs. 28,83,666.50 as interest payable by the petitioner under Section 11C(1) of the Act. Against the order of assessment, the petitioner company filed an appeal under Section 20 of the Act before the Deputy Excise and Taxation Commissioner (Appeals), Patiala Division. An application under Section 20(5) of the Act was also filed wherein the petitioner stated that it was not in a position to pay Rs. 47,12,294/- because of the fact that capital of the petitioner was lying locked up in the committed business and even the bank over-draft of the Company has been exhausted. The petitioner further pleaded that interest could not be included in the amount payable as a condition to the hearing of appeal. This application was dismissed by the Deputy Excise and Taxation Commissioner (Appeals) vide order dated 26.8.1993 (Annexure P-5) and the petitioner was directed to deposit the full amount of tax together with the interest by 7.10.1993 with a stipulation that in case the petitioner fails to do so, its appeal would be dismissed in limine. The petitioner then filed an appeal under Section 20(2) of the Act before the Sales Tax Tribunal, Punjab, and....
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....ther plea of the petitioner is that Section 11D is attracted in a case where the dealer fails to pay the amount of tax due from him as per the requirement of Section 11A and as there is no failure on the part of the petitioner, the stand taken by the respondents about the petitioner's liability to deposit the amount of interest is untenable. 7. Mr. M.L. Sarin, Senior Advocate, appearing for the petitioner has tried to persuade us to examine the legality of the order Annexure P-1 passed by the Assessing Authority and argued that the very imposition of the tax under Section 11 is without jurisdiction. However, we find little justification for examining the validity of this argument, because this very question is under consideration before the Appellate Authority in the appeal filed by the petitioner against the order of assessment. That appeal has not so far been decided by the competent authority and once the petitioner itself has thought it proper to avail alternative remedy of appeal, there is no scope for this Court to record finding on the question of liability of the petitioner to pay tax and interest. 8. The aforesaid conclusion of ours, however, does not result in d....
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....thirty days, as the case may be, expires for a period of one month and thereafter at the rate of one and a half percentum per month till the default continues. Provided that where the recovery of any tax or penalty is stayed by an order of any court, the amount of tax or penalty, after the order of stay is vacated, be recoverable alongwith interest at the aforesaid rate on the amount ultimately found to be due and such interest shall be payable from the date the tax or penalty first became due. (3) The amount of interest payable under this Section shall- (i) be calculated by considering part of a month as one month and any amount less than one hundred rupees as one hundred rupees; (ii) for the purposes of collection and recovery, be deemed to be tax under this Act; (iii) be in addition to the penalty, if any, imposed under this Act; Explanation:- If payment of the amount of tax is made by any dealer through cheque and the same is dishonoured by the bank concerned it will amount to failure on the part of the dealer to pay the amount of tax. 20. Appeal :- (2) An order passed in appeal by a Deputy Excise and Taxation Commi....
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....Provided further that in the case of an appeal against any order which has to be communicated by the appropriate authority to the appellant, the period of sixty days shall commence from the date of receipt of the copy of the order . by the appellant and in the case of an appeal against any other order made under this Act, the time spent in obtaining the certified copy of the order shall be excluded in computing the period of sixty days." 10. A combined reading of Sections 11B, 11D and Section 20 of the Act shows that amount of tax and penalty as well as interest payable under the Act can be recovered as arrears of land revenue. The amount of interest is payable by the dealer who fails to pay the amount of tax due from him as required by Section 10(4). Section 11D(2) speaks of the rate of interest for different periods and Section 11D(3) speaks of the mode of calculation of the interest. Sub-Clauses (ii) and (iii) of Section 11D(3) makes it further clear that amount of interest payable under Section 11D shall be in addition to the penalty imposed under the Act and for the purpose of collection and recovery it shall be deemed 10 be tax. Section 20(5) imposes a bar to the entertain....