TaxTMI 
TaxTMI 
2016 (8) TMI 1337
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..... 2. The said request for waiver of interest was made in view of the fact that the petitioner, a Private Limited Company, is engaged in production of non-alcoholic beverages. The petitioner was granted certificate by the Director, Technical Development, Bihar, Patna on 22nd of July, 1998 that the petitioner has commenced its commercial production on 14th of April, 1998 so as to make the petitioner eligible for the grant of Sales Tax exemptions under the Industrial Policy, 1995. Such policy was framed by the State wherein, certain initiatives were promised to the intending entrepreneurs to provide exemption to the units coming into production within the policy period i.e. from 1st of September, 1995 to 31st of August, 2000, which was furt....
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.... to the Department of Industries for obtaining necessary Government order for reimbursement of Rs. 18.75 crores to 22 such units including the unit of the petitioner. The Director of Industries thereafter issued a disbursement order on 31st of December, 2012 in favour of the units including the petitioner which were granted exemption from tax under the Bihar Industrial Policy, 1995 but could not avail full amount of exemption. The Commissioner, Commercial Taxes directed the respective Circle Incharge of Commercial Taxes Department to ensure that the VAT is paid along with the interest before disbursement of grant is started by the State Government. 6. The petitioner submitted representation for the payment of the amount deducted towards ....
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.... equal instalments payable by 31st March every year commencing after the expiry of the year 2008-09. It is further stated that there cannot be estoppel against the provisions of law. Therefore, since the petitioner has not opted for deferment of tax in terms of Section 96 of the VAT Act, the liability to pay interest arises. It is pointed out that total amount of statutory interest which was deposited by the petitioner for delayed payment of instalments of deferred amount of VAT was Rs. 1,70,28,937/-. 8. The petitioner has filed rejoinder controverting the stand of the State in the counter affidavit. 9. We have heard learned counsel for the parties at length. 10. It is admitted fact that the petitioner was granted exemption from pa....
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.... who have not availed of their full entitlement shall be allowed to opt for deferment of their liability to pay tax in terms of section 96 of the Act. Such deferment shall be equivalent to his unavailed entitlement. (2) No dealer eligible for deferment under sub-rule (1) shall be allowed to defer his tax liability under the Act unless he applies, to the concerned Circle Incharge, for the same in form A-XII (3) Upon receipt of such application the concerned Circle Incharge shall issue the dealer a certificate in form C-VIII. (4)(a) The amount of tax deferred under sub-rule (1) shall be paid in 5 equal installments payable by 31st March every year commencing after the expiry of the year during which the unavailed entitlement terminat....
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....f tax in terms of Section 96(3)(b) of the VAT Act was exercised far too late only on 14.03.2013, and that too when it found no other option to avail the grant from the State Government. Therefore, such option results into delayed payment of the deferred amount of tax, which would attract interest at the rate of 1.5% per month or part thereof. Therefore, in either situation, after the commencement of the VAT Act, the liability of the petitioner was to deposit the amount of tax either by way of a regular assessment or in case of deferment by deposit of the deferred amount of tax. 14. The petitioner has failed to deposit the amount of tax after the enactment of the VAT Act with effect from 1st of April, 2005. Since the liability is statutor....