TaxTMI 
TaxTMI 
2015 (11) TMI 1076
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....s "the Act") interest stipulated under section 12(1B) of the Act is not attracted. Therefore interpretation of section 12(1B) of the Act is called in question in these revision petitions. The assessee is a private limited company engaged in the sale of motor cars and registered as a dealer under the provisions of the Karnataka Sales Tax Act, 1957. In relation to the assessment period April 1, 2001 to March 31, 2002, the assessment was concluded under section 12(3) of the Act on July 22, 2004. As per the assessment order, the assessee was assessed to total tax of Rs. 22,35,27,631 against which the assessee had paid advance tax as per the monthly returns amounting to Rs. 22,31,66,076, thus making short-payment of tax of Rs. 3,61,555. 2. For....
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.... Act when it is found the amount of tax paid in advance is less than the amount of tax found due by the assessing authority while passing an order under section 12(3) of the Act and therefore, she submits the order of the Tribunal requires to be set aside. 5. Per contra, the learned counsel for the assessee submitted, section 12(1B) is applicable to a case where when a return is filed under section 12(1) of the Act and if the amount shown to be due in such return is not paid beyond 30 days after the close of the year, the dealer defaulting payment of tax or making short-payment of tax shall, in addition to the tax, pay interest calculated at the rate of two per cent. per month. It has no application to tax found due by the assessing author....
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....n the statement or makes a short-payment of tax, then he is liable to pay interest at the rate of two per cent. per month from the date of such default or short-payment to the date of payment of such tax. Sub-section (3) of section 12B provides for a best judgment assessment if no monthly return is filed. Sub-section (3A) of section 12B provides for payment of penalty. Therefore, now the law mandates filing of return every month and payment of tax in advance. 8. Section 12 with which we are concerned reads as under: "Notwithstanding anything contained in section 12B, every registered dealer and every dealer who is liable to get himself registered under sub-section (1) or (2) of section 10, shall submit such return or returns relating to ....
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....iling of the return, if the assessing authority is satisfied that any return submitted under sub-section (1) is correct and complete, he shall assess the dealer on the basis thereof by virtue of the power conferred on him under sub-section (2) of section 12 of the Act. However, if no return is submitted by the dealer under sub-section (1) before the date prescribed or specified in that behalf, or if the return submitted by him appears to the assessing authority to be incorrect or incomplete, the assessing authority shall assess the dealer to the best of his judgment, recording the reasons for such assessment. On such assessment if it is found that the dealer is due in any amount of tax, then he shall issue notice to the dealer in form 6 cal....