TaxTMI 
TaxTMI 
2019 (1) TMI 1156
X X X X Extracts X X X X
X X X X Extracts X X X X
....ard was justified in holding that no interest is payable on suo-moto payment of tax before assessment proceedings treating the payment of tax being the tax payable as per return." 3. In other words, when any dealer fails to file a return under Sub-section (1) or a revised return under Sub-section (3) of Section 26 of the Act before the expiry of prescribed period but files before the initiation of assessment proceedings whether such dealer is liable to pay interest on such return or revised return. 4. Relevant facts giving rise to the reference briefly are that the Assessee is a manufacturer and deals in business of Transformer and Conductors, is a dealer registered under the Act(under Section 22 of the Act). 5. In respect of Assessment ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....by Justice G.P. Singh, 6th Edn. 1966, the law is stated thus:- "The well-established rule in the familiar words of LORD WENSLEYDALE, reaffirmed by LORD HALSBURY and LORD SIMONDS, means: 'The subject is not to be taxed without clear words for that purpose; and also that every Act of Parliament must be read according to the natural construction of its words.' In a classic passage LORD CAIRNS stated the principle thus: 'If the person sought to be taxed comes within the letter of the law he must be taxed, however great the hardship may appear to the judicial mind to be. On the other hand, if the Crown seeking to recover the tax, cannot bring the subject within the letter of the law, the subject is free, however apparently within the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uch manner, for such period, by such dates and to such authority as may be prescribed : Provided that the Commissioner may, subject to such terms and conditions as may be prescribed, exempt any such dealer from furnishing such returns or permit any such dealer to furnish them for such different period, in such other form and to such other authority, as he may direct. (2) Every dealer required to file return under sub-section (1) shall pay the full amount of tax payable according to the return as required by sub-section (2) of Section 32 or the difference of the amount of tax payable according to the revised return as required by sub-section (3) of the said Section and the full amount of interest; if any, payable under clause (a) or clau....
X X X X Extracts X X X X
X X X X Extracts X X X X
....im according to the return referred to in sub-clause (i); or (b) the difference of the amount of tax payable according to the revised return; or (c) the tax payable for the period for which he has failed to furnish return, at the rate of 2 per cent per month from the date the tax so payable had become due to the date of its payment or to the date of order of assessment, whichever is earlier." 14. Thus the liability of interest arises in the event which find mention in Sub-section (i), (ii) & (iii) of Clause (a) of Sub-section (4) of Section 26 of the Act. In other words, where an Assessee fails to file return (which includes revised return) and pay tax within the period prescribed, he is liable to pay interest on the delayed return an....