Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | U.P. Sales Tax Act 1948)-Sections 8(1) 1948 (now U.P. Trade Tax Act 8(1-B) and 8(2) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | U.P. Sales Tax Act, 1948 (now U.P. Trade Tax Act, 1948)-Sections 8(1), 8(1-B) and 8(2) : Demand for interest on tax-Not made in assessment order imposing tax liability-Made by a separate order after four years, though three years is the limitation period for rectification of assessment order-Validity of-Held: Assessee not liable to pay interest in view of inordinate delay in raising the demand-Department however entitled to recover the interest from the Assessing Officer concerned for not taking steps for four years. Demand for interest on tax-is automatic and arises by operation of law-Notice not necessary before raising demand for interest. On 6-6-1986, the Assessing Authority passed order imposing tax liability on respondent-dealer in respect of assessment year 1977-78. Respondent-assessee deposited the entire amount of tax. However subsequently on 30-7-1990, the assessing authority passed another order holding that on the admitted amount of tax the respondent was liable to pay interest at the rate of 24% p.a. from 1-5-1978. Respondent filed appeal contending that the proceedings imposing interest were barred by time. The appeal was dismissed. Second appeal was filed before the Tribunal which remanded the matter to the assessing authority for fresh decision. Respondent filed revision before High Court which held that even if respondent-dealer was liable to pay interest on delayed payment of amount of tax, a notice in writing before passing the impugned order was necessary, but as the impugned order dated 30-7-1990 nowhere stated that any notice was sent to the dealer, such an order could not be sustained. Consequently, it allowed the revision and quashed the order of Tribunal. In appeal to this Court, the questions of law arising for consideration are whether subsequent proceeding to the assessment was barred by limitation and whether the order of the High Court to the extent that a notice of demand was necessary before passing the order of interest is legally sustainable. |
Judge | Hon'ble Dr. Justice A.R. Lakshmanan |
Neutral Citation | 2005 INSC 241 |
Petitioner | Commissioner Of Trade Tax, Lucknow |
Respondent | M/s. Kanhai Ram Thekedar |
SCR | [2005] 3 S.C.R. 984 |
Judgement Date | 2005-04-29 |
Case Number | 2679 |
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