TaxTMI 
TaxTMI 
2017 (7) TMI 228
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....tition no. 41 of 2009. The petitioner therein was granted interim order on 9.1.2009 restraining the respondents from realizing the entry tax on furnishing security, other than cash and bank guarantee to the satisfaction of the authority concerned in respect of the amount of disputed entry tax. The aforesaid writ petition was clubbed with writ petition no. 1484 of 2007 ITC Vs. State of U.P., and was finally dismissed by the Court vide judgment and order dated 23.12.2011. On the dismissal of the writ petition within six days, the petitioner who had submitted security earlier, deposited the entire amount of entry tax amounting to Rs. 4,55,84,772/- on 3.1.2012 which included a sum of Rs. 1,76,75,224/- for the assessment year 2010-11. The proceedings for assessment of entry tax for the assessment year 2010-11 were completed under Section 9 of the Entry Tax Act vide order dated 30.12.2013. The Assessing Authority assessed the entry tax for the said year to be Rs. 2,78,98,477/- and after adjusting the rebate of Rs. 56,564/- determined the net liability of entry tax to be Rs. 2,73,37,913/-. The Assessing Authority in view of the prior deposit of a sum of Rs. 2,72,72,642/- of entry tax, ....
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....provide for payment of any interest on account of any delay in payment of the part of the entry tax, the respondents are not legally entitle to realize any interest. The impugned order of demand is against the spirit of the assessment order and the order rejecting the application of the department for rectification of the assessment order. Sri C.B. Tripathi, learned Standing counsel on the other hand contended that liability to pay interest on account of any delay in payment of entry tax within time provided is automatic for which no assessment order is required, therefore even if the assessment order is silent on the above aspect, it makes no difference. Since the liability to pay interest on delay in depositing entry tax is statutory in nature, the department is justified in demanding the interest. In view of the aforesaid facts and circumstances and the respective contentions of the parties the primary question which springs up for consideration is whether the petitioner is liable to pay interest for the delay in making the payment of entry tax even though no such direction is contained in the assessment order and the bonafidies of the petitioner are lit large. In order....
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....he interest shall also be payable for the period during which such stay order remains in operation. Therefore, once the order of stay is vacated or merges in the final order of dismissal of the appeal, revision or petition, the interest would be payable even for the period the stay had remained in operation. The amount of interest payable by legal fiction makes interest part of the tax for all purposes. A plain reading of Section 9 of the Entry Tax Act establishes that on filing of the returns by the dealer the Assessing Authority after making such inquiry as may be necessary and deemed fit is required to determine the value of the scheduled goods brought or received by the dealer into any local area and the amount of tax payable by the dealer on the said turnover of goods. There is no specific provision or any power conferred upon the Assessing Officer to determine the amount of interest, if any, payable by the dealer on the assessed entry tax or its delayed payment. This is probably for the reason that liability of payment of interest, if any, is provided in the statute itself. The Supreme Court in Haji Lal Mohd. Biri Works, Allahabad Vs. The State of U.P., and others....
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....ecision reported in CIT Vs. Ranchi Club Limited (2001) 247 ITR 209 SC. The Supreme Court held that under the provisions of Section 234 (B) of the Act the moment an assessee who is liable to pay advance tax has failed to pay such tax or where the tax paid is less than 90% of the assessed tax, the assessee becomes liable to pay simple interest at the rate specified. The legal position which is culled out from the aforesaid decision is that in the matter of levy and collection of tax, the admitted tax or the tax due is to be paid on or by the date if any specified under the statute. The assessment order is only supposed to determine the taxable income/turnover and the amount of the tax payable thereon and that no particular direction for payment of any interest is necessary when the statute itself obliges for payment of interest at the specified rate in case of non payment of tax within the stipulated period or for the delay in its payment. Therefore, the liability to pay tax runs from the date stipulated for the payment of tax as per the statute irrespective of the date of assessment order and the liability to interest on delay in depositing tax is automatic for which neither any ....