TaxTMI 
TaxTMI 
2016 (7) TMI 773
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....ax paid is less than 10%? (3) Whether the Hon'ble Tribunal is right in law in reducing penalty levied under section 45(6) of the Act to 10%?" 2. The facts of the case are that an assessment order dated 31.3.1995 came to be passed by the Sales Tax Officer (2) Kalol for the period 1992-93 raising a demand of Rs. 8,22,589/-. The respondent dealer carried the matter in appeal before the first appellate authority wherein it was contended that the dealer was not liable to pay interest under section 47(4A)(b) nor was it liable to pay penalty under section 45(6) of the Gujarat Sales Tax Act, 1969 (hereinafter referred to as "the GST Act") as it had paid more amount than what was payable under the assessment order. The first appellate authority observed that the dealer had not paid the amount of Rs. 7,47,032/- in the relevant month of the year but had paid the same at a time on 22.5.1994 and 5.6.1994 and was of the view that such payment cannot be said to have been made with the returns and that such payment could be given deduction as tax, but could not be taken into account for the purpose of interest and penalty. According to the first appellate authority, if the interest and....
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....o be made, the dealer was not liable to pay any interest under clause (b) of sub-section (4A) of section 47 of the GST Act. 3.1 As regards proposed question No.3, the learned Assistant Government Pleader submitted that the Sales Tax Officer had exercised discretion and imposed penalty and that merely because the Tribunal found the explanation to be bonafide, there was no warrant for decreasing the amount of penalty to 10%. It was submitted that a bonafide belief held by the dealer that he was not liable to deposit such amount cannot be considered to be a reasonable cause for not imposing penalty under sub-section (6) of section 45 of the Act. It was, accordingly, urged that the appeal requires consideration on the questions as proposed or as may be formulated by the court. 4. This court has considered the submissions advanced by the learned Assistant Government Pleader for the appellant and has perused the record of the case as available before it. 5. From the facts, as emerging from the record, it appears that the dealer at the time of filing of the sales tax return had not deposited the entire amount payable thereunder. Such amount came to be deposited at later dates on ....
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.... or, as the case may be, revision, simple interest at the rate of eighteen per cent per annum on the amount of tax not so paid or any less amount thereof remaining unpaid during such period." 7. Thus, sub-section (1) of section 47 requires the dealer to pay the tax in the manner provided under the GST Act and at such intervals as may be prescribed. Sub-section (2) requires the registered dealer to pay into the Government treasury the whole amount of tax due from him according to the declaration or the return along with the amount of penalty payable by him under section 45 at the time of furnishing declarations or returns. Sub-section (3) requires that when the revised return filed by the registered dealer shows that a larger amount of tax than that already paid is payable, he shall pay such amount in the Government treasury while furnishing a revised declaration or revised return in accordance with sub-section (3) of section 40 of the GST Act. Sub-section (4A)(a) of section 47 of the GST Act provides that where a dealer does not pay the amount of tax within the time prescribed for its payment under sub-sections (1), (2) or (3), then there shall be paid by such dealer for the per....
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....use (a) of sub-section (4A) of section 47 is already paid, the same is not required to be taken into consideration and the difference of amount paid on the prescribed date on the amount assessed has to be taken into consideration and the dealer is liable to pay interest from the prescribed date till the assessment order on the entire differential amount as contended by the appellant, inasmuch as, the same would then render the provisions of clause (a) of sub-section (4A) of section 47 nugatory. It is by now well settled that the section has to be read as a whole and in harmonious manner so that all the clauses thereof are rendered sustainable. If clause (b) of subsection (4A) of section 47 of the GST Act is to be read in the manner as suggested on behalf of the appellant, the provisions of clause (a) of sub-section (4A) of section 47 would be rendered redundant. Therefore, on a harmonious reading of clause (a) and clause (b) of sub-section (4A) of section 47 of the GST Act, it is evident that if any amount is paid subsequent to the prescribed date but prior to the order of assessment, the dealer would be liable to pay interest at the rate of eighteen percent on the differential amo....