TaxTMI 
TaxTMI 
2007 (4) TMI 262
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....,47,500/-. The said certificate stated that the assessee was entitled to the benefit of tax deferment subject to the maximum of Rs. 62,47,500/-. The assessee had commenced its commercial production on April 30, 1997. The assessee had applied to the Industries Department for grant of Eligibility Certificate. That Certificate was however granted only on 13-9-2001 for 84 months ( 7 years) commencing from April 30, 1997. The Deferment Certificate was given by the Sales Tax Department based on the Eligibility Certificate only on 21-12-2001. After the grant of Eligibility Certificate on 21-12-2001 the assessee availed the deferment of tax for the period from 1-10-2001 to 29-4-2004 amounting to Rs. 33,48,600/- as against its total entitlement of R....
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....well as the said 1991 Rules framed by the Government under the Sales Tax law. There is no provision for grant of interest. Before us on instructions learned advocate appearing for the State fairly stated that the State is in appeal against the grant of interest @ 18%. The State is not denying the grant of refund by adjustment. Therefore, the only question which we are required to consider in this civil appeal is whether the assessee was entitled to interest @ 18% per annum from 20/21 December 2001 upto the date of refund/adjustment. 5. Interest is admissible in a tax enactment on two grounds namely 'Agreement' or 'Statutory Provision'. Interest cannot be granted on the basis of equity under the tax enactment, particularly under statutory s....
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....1989 (75) STC 257] on which the assessee has placed reliance. In the present case there is no collection of tax. In the present case the assessee wanted to avoid payment of penalty during the period when its application for Eligibility Certificate was pending before the Industries Department. In fact under the Deferment Rules of 1991 an applicant is required to calculate his entitlement on the basis of notional tax liability for the year in question. (See clause 'j' of Form ST (D & E) -1). Therefore, in the present case the assessee has paid the tax under the Sales Tax Act in order to avoid penalty. The question of paying interest will also not arise because sales tax is an indirect tax. It is collected by the assessee from its customers. T....