2018 (12) TMI 870

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....n the first appellate authority having not found any merit in the assessee's appeal, has sustained the demand of interest. 2.1 Brief facts canvassed by the appellant are that the appellant was called upon by the Revenue to satisfy as to the payment of tax on the amounts received as advance/deposits for the services to be provided which according to it, formed part of the gross amount charged. In response, the appellant inter alia submitted that they had an amount of Rs. 57,12,15,813/- lying in their books as on 31.03.2008 as collection against the premium received in advance which included even the tax portion. Vide another communication dated 02.01.2009, the appellant offered a detailed note as to the year-wise receipt of premium in adv....

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....as this amount which they had paid in April, 2007, was now made payable in March, 2007 itself. C. 2007-08: The returns for 2007-08 have been submitted and the assessment is in progress. As in the above cases, the tax on this account during March, 2008 has already been remitted by them in April, 2008. To this extent, the tax liability of April, 2008 shall be reduced and they would make adjustments to that effect while filing the final returns for 2008-09. 2.3 The appellant vide another communication dated 19.01.2009 sought to place apparently the correct details of premium received for the three years which are as under: 2007-08 March 2008 Rs.52,83,12,910/- 2006-07 March 2007 Rs.63,11,53,857/- 2005-06 March 2....

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....ty was Rs. 6,62,25,489/-; that the same was much less than the excess remittances of Rs. 14,21,58,485/-; that therefore there was no question of treating the tax paid for March, 2006 by April, 2006, as belated payment; that as against the tax liability of Rs. 7,72,53,232/- for March, 2007, the excess remittance was Rs. 8,19,64,372/-; that the same could have been adjusted towards the tax due for March, 2007; that as on 31st March, 2007, they had a balance of unutilized input Credit of Rs. 13,32,92,797/-; that there was sufficient credit to cover the tax liability on premium in advance for the respective periods, etc. With regard to the demand of interest however, the assessee offered a fresh working, arrived at the interest liability of Rs.....

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....gh Court relied on by the Ld. Advocate. 7.1 The assessee has pleaded before the adjudicating authority that there was excess credit or excess remittances or unutilized input Credit; the same has nowhere been disputed by the Revenue. The scope of provisional assessment and the tax paid in terms of the same is always taken note while passing the final assessment Order. If the duty paid as per provisional assessment is less than the duty payable after final assessment, then the assessee is liable to make good the balance along with interest on the shortfall. The Hon'ble High Court of Karnataka in the case of M/s. Toyota Kirloskar Auto Parts Pvt. Ltd.(supra) relied on by the Ld. Advocate, has considered this aspect and after considering the ....